44th Parl. 1st Sess.
February 14, 2023 10:00AM
- Feb/14/23 11:00:16 a.m.
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Madam Speaker, I am pleased to speak today to this opposition motion on the economy. Since we are still relatively early in the year, I think it is worth noting the strong rebound of the Canadian economy from the pandemic recession.
Early data shows that the Canadian economy grew by 3% so far in 2022, the strongest performance in the G7. The unemployment rate is at 5%, close to historical lows. Labour force participation for working-age Canadians is at record highs, 80.3% among Canadians between the ages of 15 and 64, and 85.6% among women aged 25 to 64. Both figures are higher than in the United States.
I am quite disappointed the member opposite did not mention this in his motion.
Not only is the economic recovery well on track, but the inflation data is also encouraging. The consumer price index rose by 6.3% in December 2022 compared to the same period the previous year. Everyone realizes that it is still high, but when we consider that inflation was at 8.1% in June, it is clear that there has been some progress.
That being said, we are well aware that many Canadians are still struggling with the rising cost of groceries and gas. That is why we are supporting those Canadians who are most affected by these price increases.
The Canada workers benefit is a particularly effective measure.
The Canada workers benefit is designed to reduce barriers to employment for low- and modest-income workers by giving them a sizable tax refund. It tops up their income. We introduced it in budget 2018, before the pandemic and the recently elevated global inflation, to encourage more people to join the workforce and stay in it. Right from the start, it put more money in the pockets of more people than did the old working income tax benefit it replaced. The program has proven its worth, and with the pandemic and the rising cost of living, we knew we had to make it even better. Low-wage workers were among the hardest hit during the pandemic, and they are still the most affected by the rising prices at the counter.
First, we expanded and enhanced the benefit so it could reach three million Canadians: hard-working people who do important jobs, but unfortunately, do not get paid very much. Then, in last year's fall economic statement, we further improved it. We expanded the program to reach up to 1.2 million additional Canadians through advance payments. This was an intentional policy choice to top up the incomes of up to 4.2 million of the lowest-paid Canadians. No one who works 40 hours a week should have to worry about paying the bills.
The Canada workers benefit can mean up to $1,400 for a single worker and up to $2,400 for a working couple every year. It also includes an additional $740 disability supplement to give greater support to Canadians with disabilities who face financial barriers to entering the workforce. People living alone and earning up to $33,000 per year receive the Canada workers benefit. Those earning $23,495 or less may receive the full amount. The benefit is also available to families earning $43,212 or less per year. They may receive the full amount if their adjusted family net income is $26,805 or less. The Canada Revenue Agency automatically determines whether people are eligible for the benefit. All eligible workers receive the CWB when they file their tax returns.
We have also taken into account the fact that targeted benefits based on household income may discourage the secondary earner in a household from returning to work. Most of the time, that earner is a woman. The first $14,336 that the secondary earner contributes to the household does not affect their family's eligibility for the Canada workers benefit. This enables skilled female workers to enter and remain in the labour force. It also makes life more affordable for hundreds of thousands, even millions, of Canadian families.
Our affordability plan put a suite of measures in place to help Canadians who need it most. In addition to the Canada workers benefit I just talked about, we doubled the GST tax credit for six months. This is extra help for about 11 million people and families in Canada. With the one-time top-up to the Canada housing benefit, we gave $500 to nearly two million low-income Canadian renters who have a hard time paying their rent.
We permanently increased old age security for seniors aged 75 and over. More than 3 million seniors are benefiting from that. That means an additional $800 in the first year for seniors receiving the full pension. We worked with the provinces and territories to reduce child care costs by 50%. This is saving families, on average, up to $6,000 per child per year. For Quebec, which already has its own child care system, the government's plan will help create roughly 37,000 new spaces.
We introduced the Canada dental benefit for families with annual incomes under $90,000. This benefit will provide up to $1,300 per child under the age of 12 over the next two years to help pay for dental visits. We are continuing to index benefits for Canadians, including the Canada child benefit, the GST credit, the Canada pension plan, old age security and the guaranteed income supplement.
We are also helping Canadians fight climate change. In the provinces where the federal system applies, individuals and families receive climate action incentive payments. This fiscal year, a family of four will receive $745 in Ontario, $832 in Manitoba, $1,101 in Saskatchewan and $1,079 in Alberta. Most families, eight out of 10, receive more than the cost they face from the price on pollution. Low- and middle-income families benefit the most.
Our support programs help those most affected by inflation. We cannot help everyone; that would be fiscally irresponsible. Our ability to spend is not infinite. It is about balancing fiscal responsibility with compassion. We need to help those who need it most, but we also need to ensure that government spending does not make it more difficult for the Bank of Canada to return inflation to its target.
We will continue to put Canada on the road to success. We will ensure that the most vulnerable get the support they need; we will also keep our finances on a sustainable track in the long term.
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- Feb/14/23 11:09:43 a.m.
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Madam Speaker, with all due respect for my colleague, what I said was that we are there for people having a hard time making ends meet, and we are doing so in a fiscally responsible way.
We know that inflation is improving; the inflation rate is decreasing and, hopefully, will continue to decrease in the coming months. Nevertheless, these are difficult times for many Canadians. That is why we put in place the various measures I spoke about, in particular the doubling of the GST credit, the one-time top-up to the Canada housing benefit and the Canada workers benefit.
We are stepping up for those most in need.
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- Feb/14/23 11:11:23 a.m.
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Madam Speaker, we actually contract professional services to complement the work of the public service, which must respond to the various demands and unexpected fluctuations. This is all being studied in committee right now, and I am confident that the committee will come up with the best solution.
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- Feb/14/23 11:12:19 a.m.
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Madam Speaker, as I said in my speech, our priority is to really be there and work for Canadians and families who need it most.
That is why we have introduced concrete measures that put more money in the pockets of those who are struggling to make ends meet. We know that these are difficult times. I see the price increases myself when I go grocery shopping. That is the point of our measures. They really are helping Canadians.
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