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Mr. Jasraj Singh Hallan (Calgary Forest Lawn, CPC)

Feb/7/23 10:23:13 a.m.
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Madam Speaker, after eight long years of the current Liberal government's economic mismanagement, Canadians are paying the price. The Liberals' reckless government spending, coupled with their love of taxes, has caused this inflation crisis. Their failed policies have left this country with a 40-year high inflation, interest rates not seen since the 2008 recession, and continually rising taxes that seem to end up in the hands of wealthy Liberal insiders or sent out the door in inflationary spending. Worst of all, the government is going to triple, triple, triple the destructive carbon tax and add a second one on top of it. The reckless spending by the current government started even before the COVID–19 pandemic. The Prime Minister's promise of $10 billion was broken when, even before the pandemic, he had already spent $100 billion. After telling Canadians he would have only modest deficits, he broke that promise completely. Of course, during COVID, the current government kept the money printers going, adding half a trillion dollars to the national debt, and 40% of that spending was not even pandemic-related. Former finance minister and random Liberal Bill Morneau has admitted that the government overspent during the pandemic. Lucrative government contracts have gone to companies like SNC-Lavalin, WE Charity and the company run by former Liberal MP Frank Baylis. Of course, Canadians got nothing out of those contracts in all those cases, but the Prime Minister's friends were happily paid off and it cost Canadians. The Auditor General has even reported that $32 billion went to people who should not have received COVID benefits, including prisoners, dead people and even foreign nationals. It seems the Prime Minister ranks Canadians lower than even criminals. Who can forget the $54 million spent on the ArriveCAN app, which failed to do anything but wrongly send vaccinated Canadians into government-run quarantine centres? What is worse is that the Liberals thought they should add $15 billion a year in spending on contracts that go out to high-priced consultants who have personal connections to cabinet ministers and even the Prime Minister. As the Parliamentary Budget Officer once said, this is not “keeping one's powder dry”. The Governor of the Bank of Canada, Tiff Macklem, has said that inflation is a homegrown issue. He admitted to the finance committee that the current Liberal government's out-of-control spending drove up the inflation that plagues Canadians today. He even indicated that the eight consecutive interest rate hikes were necessary because the Liberals cannot help but spend, spend, spend. The former Bank of Canada governor and future Liberal leadership candidate Mark Carney told senators that inflation is a domestic problem. Former Liberal deputy prime minister and finance minister John Manley said that the Liberal spending is working against the efforts of the Bank of Canada to control inflation. He added that Liberal spending is fuelling inflation. Inflation has also been fuelled by the current Liberal government's adding tax increases after tax increases. There is the triple, triple, tripling of the carbon tax, the new, second carbon tax coming this year, the payroll tax and the undemocratic escalator tax on the drinks Canadians enjoy. When asked by Conservatives, the Bank of Canada governor admitted that the failed carbon tax is driving up inflation. It is not hard to see why. While inflation caused by Liberal spending has made everything more expensive, the Liberals' carbon tax is punishing Canadians, businesses and farmers for living their lives. Agriculture producers are dealing with higher prices for farm fuels, fertilizers needed to grow crops, and the feed they need to keep livestock alive. We know that, once tripled, the failed carbon tax will cost a typical farmer $150,000 a year, and the agriculture industry could lose upwards of $50 million on fertilizer emissions costs. The price of natural gas will jump as the tripling carbon tax adds about 30¢ per litre. Businesses are taking on the higher costs of buying goods, paying for transportation and paying for refrigeration and storage. If farmers and businesses want to survive in the Prime Minister's Canada, they have to raise their prices. At the end of the day, they still need to pay their employees, pay the rent and pay for the Liberal tax increases. When producers making the goods are forced to pay more, it costs more for businesses to buy, transport and store goods, so it is not rocket science to see that it costs Canadians more to pay for the gas, groceries and home heating they need to survive in Canada. It is that cost of living that is the issue. One in five Canadians is out of money. They are skipping meals or accessing charity services just to meet their basic needs; 60% of Canadians are cutting back on groceries, while 41% are looking for cheaper, less nutritious options. The average rent for a two-bedroom apartment across Canada's 10 big cities is over $2,000 a month, compared to $1,171 a month in 2015. That is an almost 90% increase in rent. The average homeowner's mortgage payments have more than doubled since 2015, going from about $1,500 to more than $3,000 a month. Inflation on the interest on mortgages is up 18% year over year. It takes 60% to 70% of Canadians' paycheques to pay the mortgage, while inflation and the cost of living eat up the rest. As we see skyrocketing home heating prices, due to the Liberal government cancelling good, clean energy projects that could have been made here in Canada, we also see that the carbon tax takes up about 18% to 20% of everyday Canadians' home heating bills. When Liberals triple, triple, triple the carbon tax, it would take anywhere from 40% to 60% of the bill alone, just on carbon tax. Eighty per cent of variable rate mortgages have now hit the point where their mortgage payment is entirely just interest. The bank is forcing Canadians to pay more to pay down the principal part of their mortgage, and 45% of those homeowners on a variable rate mortgage will have to sell their homes in nine months. People living in one of the hot housing markets, like Ontario, could lose 30% on the sale of their house if they bought it in the last 12 months. This carbon tax is a complete failure. It has failed to reach the Liberal emissions targets. In fact, Canada ranks 58th out of 63 countries in climate change performance. We rank lower than China and the U.S., and just barely perform better than Russia. It is clear the Liberal carbon tax is not an environmental plan; it is a tax plan. If Canada is to succeed on the environment and in our economy, government needs to get out of the way, incentivize businesses and let them thrive. For decades, the private sector has been the innovators and developers of the technology that drives our economy forward. The right approach to addressing climate change is through technology and innovation, not tax. Liberals have crushed the entrepreneurial and innovative spirit and have even driven away investment. Since 2015, Canada has only seen a decline in investors wanting to bring their money to invest in our world-class businesses and industries, because of uncertainty caused by out-of-control Liberal spending, inflation and taxation. We need to restore affordability and confidence to the Canadian economy. To do that, government is not, and will not be, the solution. Instead, it is time to fire the gatekeepers, cut the red tape and end the punishing tax burden on Canadians. Canadian workers and businesses are ready to get this economy back on track, restore good paycheques for our workers and reverse the damage caused by the Liberal government. On this side, we know that the only way out of this affordability crisis is to stop the crazy government spending and instead make more of what money buys: affordable homes, affordable Canadian food and affordable, responsibly sourced Canadian energy. At a time of crisis for Canadians, Conservatives and our Conservative leader are listening and ready to act. Canadians are ready too, but they need to get the government out of the way. It is time to end the inflationary spending spree, end the cushy Liberal contracts and stop the tax increases. It is time to axe this failed carbon tax and let Canadians keep more in their pockets.

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Context: House Hansard - 155 - Feb/7/23

Mr. Jasraj Singh Hallan

Feb/7/23 10:33:29 a.m.
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Madam Speaker, if someone wants to send a page over here, I can give the member a report by their own public budget officer that proves that more Canadians do not get money back in their pockets. They actually get more taken out of their pockets. The pain that the member is talking about is caused by her government. The out-of-control spending has caused this inflationary crisis, which was proven by random Liberals, previous and current ones. This inflationary crisis was caused by their government. On top of that, the Liberals pile-drive Canadians with more taxes and with more carbon tax. They need to axe the tax and let Canadians keep more money in their pockets.

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Context: House Hansard - 155 - Feb/7/23

Mr. Clifford Small (Coast of Bays—Central—Notre Dame, CPC)

Feb/7/23 1:02:41 p.m.
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Mr. Speaker, I heard my hon. colleague start his speech talking about Bitcoin. I would like to remind him that Bitcoin has increased in value by 37% in the last month. He is such a stalwart member of the carbon tax cult, but if he looked deep inside himself and reflected, he would need to question some of his beliefs. The Governor of the Bank of Canada says carbon tax is intrinsically inflationary. The PBO says that most Canadians will pay more in carbon tax than they will receive. However, Liberals constantly refute that. Every time we question them about carbon tax, they always come back and say that the carbon tax is going to stop the hurricanes that start near Africa from moving up the Atlantic coast into Atlantic Canada. He must know Atlantic Canadians are not that stupid. They all know the carbon tax cannot stop hurricanes. Maybe you could explain this wonderful technology, the dome that is going to protect Atlantic Canada from hurricanes.

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Context: House Hansard - 155 - Feb/7/23

Mr. Francis Scarpaleggia (Lac-Saint-Louis, Lib.)

Feb/7/23 4:06:24 p.m.
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Madam Speaker, I will say at the outset that I will be splitting my time with the member for St. Catharines. Canadians are hurting. That is obvious. We see it every day on the news, and we hear about it in the House. While employment is strong, and this is not an insignificant positive, inflation is at its worst in 40 years. We have always had inflation. Every year there is inflation. Two per cent is inflation, but this inflation is obviously the worst we have seen in 40 years. That is a fact that is indisputable. We also have the first war in Europe in 78 years, and we have the most volatile climate ever. I will start my speech with a quote, if I may. It is a quote from a Canadian farmer by the name of David Coburn, who is helping put food on the tables of families across this great country. This is from a CBC article from November, just a couple of months ago. Mr. Coburn said, “This is going to drive inflation.... All of our food goes on our truck at some point in time so this is not gonna help the inflationary figures.” What was Mr. Coburn talking about? He was talking about the price of diesel, the fuel that keeps the global economy moving. Here again, I quote from the article from the CBC website, which says: Drivers may wince when the price of gasoline goes up, or decide not to drive if they can. But the trains, trucks, boats, and barges that keep the economy moving run on diesel — and they don't have that option. The article, from back in November, goes on to say: The average retail price of diesel in Canada has topped $2.40 a litre at various points this month, a previously unimaginable level that has many businesses scrambling to keep up. There are many reasons why it is happening, but the impact boils down to one basic thing: it's driving up the price of everything, and making inflation worse. What has been driving up the price of diesel? We know that shutdowns of refineries for maintenance have an impact on supply and the price of diesel in a market that is driven by demand and supply. For example, the Irving Oil refinery in Saint John saw a shutdown for maintenance recently in the fall, taking 300,000 barrels a day of supply off the market. Refinery shutdowns for maintenance happen all the time, but when they happen in a very tight market, then we can see very wide swings in the price of diesel and the price of gasoline because barrels that might otherwise be available to meet local needs are just not there. In this case, in November, in New Brunswick, and therefore in Canada, barrels that might otherwise be available to meet local needs were being diverted to the other side of the ocean. Again, I quote from the article, which is quoting a gentleman by the name of Patrick De Haan, a Chicago-based analyst with a website called GasBuddy.com. He says: Europe is trying to move away from Russian oil products like diesel fuel, and as a result of that, much of the product that could be imported into the Northeast or eastern coast of Canada, as well as the Northeastern U.S. is being pulled over there. Europe was essentially building stockpiles for the winter ahead, and that meant that, when the Irving Refinery shut down for maintenance, the market was very tight, and the price went up drastically. Another factor that has increased demand for oil and gas is the rebound in airplane travel. I will quote another analyst, Paul Pasco, who is with a firm called Kalibrate. He says in the article, “air travel getting back to pre-COVID levels isn't helping either.” He then said, “Diesel, kerosene or jet fuel, they're basically all the exact same part of the barrel, they're all what's known as the distillate barrels”. Therefore, we have lots of factors that are contributing, or have been contributing, to the very high price of diesel. The opposition will have us believe that all of these huge forces at play internationally are not really what is causing prices to go up. They contend that it is the price on carbon, but all experts will say, and I will quote a professor of economics at the University of Calgary, that the overwhelming dominant reason why prices are higher now compared to a couple of months ago is there are factors other than the price on carbon. Professor Trevor Tombe said that the federal carbon price adds 11¢ to the cost of each litre of gasoline, and added that the notion that the carbon tax is what is behind high gas prices is a misconception. He said, “While, you know, 11 cents a litre is a meaningful level overall, they don't drive the recent increases that we're seeing.... It's really about global oil prices, and that's really driven by things far beyond the government of Canada's control.” I do not know what they are talking about on the other side. I do not know what their researchers are telling them or why they are telling them what they are telling them, but they are invoking all the wrong factors to explain what is going on in the economy, and that is quite concerning for a party that claims it wants to govern the country. If Conservatives do not understand basic economics, how could they make big decisions? We know that the Leader of the Opposition holds Milton Friedman in very high esteem. One could say that he worships at the altar of Milton Friedman, and we know that he carries around under his arm a copy of Milton Friedman's A Monetary History of the United States. Let us see what Milton Friedman would say about this whole issue. The University of Chicago school of economics, where Milton Friedman was the top economist for many years, held a forum a few years ago called, “What Would Milton Friedman Do About Climate Change?” Former U.S. representative Bob Inglis, a Republican from South Carolina, opened the discussion by playing a 1979 clip of Milton Friedman appearing on The Phil Donahue Show. Phil Donahue asked Milton Friedman, “Is there a case for the government to do something about pollution?” Friedman replied, “Yes, there's a case for the government to do something. There's always a case for the government to do something about it.” He was basically saying that the market had broken down and was not operating efficiently, so something had to be done. What did he mean by saying the market was not operating efficiently? He said, referring to the cost of pollution: those costs are real, and they're not being reflected in the costs of that electricity or the tank of gas. Emitting carbon dioxide into the atmosphere does allow you to produce electricity more cheaply, but there's a whole other set of people who are being punished or penalized. It's a poor idea of economics. I do not know if the Leader of the Opposition read that quote by Mr. Friedman. He went on to say: What we need is an adjustment mechanism that will enable us to adapt to what happens as it develops. Everybody in this room knows there is such a system, namely the price mechanism. If we have a problem today, in the air, with pollution, it is solely in my opinion because that system has not been allowed to work. Then someone else—

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Context: House Hansard - 155 - Feb/7/23

Hon. Ed Fast (Abbotsford, CPC)

Feb/7/23 4:16:33 p.m.
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Madam Speaker, I am glad the member quoted Milton Friedman. Of course, that member, being a member of the Liberal Party, is a great disciple of John Maynard Keynes, who used to promote spending as a way out of governments' problems and spending as a way of getting an economy back on track. Unfortunately, it is spending that has gotten our economy off track and into an inflationary spiral. Will that member not admit that the spending his government undertook in Canada has driven inflation to 40-year highs and has caused the current unaffordability crisis in Canada? Will he now, at least, admit that?

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