44th Parl. 1st Sess.
February 14, 2023 10:00AM
- Feb/14/23 10:16:38 a.m.
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moved:
That, given that,
(i) after eight years of this Liberal Prime Minister, inflation is at a 40-year high,
(ii) after eight years of this Liberal Prime Minister, the cost of groceries is up 11%,
(iii) after eight years of this Liberal Prime Minister, half of Canadians are cutting back on groceries,
(iv) after eight years of this Liberal Prime Minister, 20% of Canadians are skipping meals,
(v) after eight years of this Liberal Prime Minister, the average rent for a two-bedroom apartment across Canada’s 10 biggest cities is $2,213 per month, compared to $1,171 per month in 2015,
(vi) after eight years of this Liberal Prime Minister, 45% of variable rate mortgage holders say they will have to sell or vacate their homes in less than nine months due to current interest rate levels,
(vii) after eight years of this Liberal Prime Minister, average monthly mortgage costs have more than doubled and now cost Canadians over $3,000 per month,
(viii) the Governor of the Bank of Canada, Tiff Macklem, has said that “inflation in Canada increasingly reflects what’s happening in Canada”,
(ix) the former Governor of the Bank of Canada, Mark Carney, has said: “But really now inflation is principally a domestic story”,
(x) former Liberal finance minister, Bill Morneau, has said that the government probably spent too much during COVID,
(xi) former Liberal Deputy Prime Minister and Finance Minister, John Manley, said that the Liberal Prime Minister’s fiscal policy is making it harder to contain inflation,
the House call on the government to cap spending, cut waste, fire high-priced consultants and eliminate inflationary deficits and taxes that have caused a cost-of-living crisis for Canadians.
He said: Madam Speaker, Biggie Smalls once said, “Mo Money Mo Problems”. With the Liberal government, it seems like the more the Liberals tax, spend and waste Canadians' money, the more problems Canadians have.
After eight years of the incompetent Liberal government and its economic mismanagement, Canadians are feeling the pain. A 40-year high in inflation, high interest rates, and tripling taxes have led to Canadians running out of money.
Even before COVID hit Canada, the Prime Minister was spending record amounts on consultants and his Liberal insider friends. On top of all that, there was $100 billion in deficit spending. Of course, the spending has never ended. During COVID, the government felt good about adding half a trillion to the national debt, 40% of which had nothing to do with COVID spending.
We know now that the Prime Minister's nearly $700-billion spending spree has been more about helping insiders than actually supporting Canadians. Instead of making life better, the Prime Minister spends $15 billion a year on high-priced consultants with whom he has personal connections. Lucrative contracts have gone to companies like SNC-Lavalin and the WE Charity, as well as a company run by former Liberal MP Frank Baylis. He flushed Canadians' money down the toilet each time just to make his friends richer.
The Auditor General has even reported that $32 billion went to subsidizing criminals, foreign nationals and even dead people. Will the government get Canadians' tax dollars back from the people who should not have gotten them? Of course not. Is it going to be knocking on those coffins or tombstones to ask for the money back? The CRA seems more interested in going after law-abiding, living, breathing Canadians than Liberal-friendly corporations and criminals.
No wonder everything feels broken in this country today. Even our health care, airports and trains are a mess, and standard government services like passports or immigration are so backlogged it will take years to undo the damage once the Conservatives take over.
The cost-of-living crisis in this country is only getting worse. Inflation remains three times higher than the Bank of Canada's 2% target. Grocery prices are inflating by 11% every single month, and Canadians cannot afford home heating even if they can afford a home.
The fiscal policies of the Liberal government have left Canadians in a hole. The Prime Minister, who admits he does not think about monetary policy, is clearly not thinking of fiscal policy either. The result of hundreds of billions of dollars being added to the national debt is that the government has created inflation, which has taken the money out of everyday Canadians' pockets. It has taken the food out of Canadians' mouths and the roof from over their head, and the possibility of retirement is now just a dream. Now one in five Canadians is out of money, skipping meals, or accessing charities for help just for basic necessities; 60% of Canadians are cutting back on groceries, while 41% are looking for cheaper, less nutritious options.
Even if people can get their grocery bill down, the Liberal government's inflation is making everything else expensive. The average rent for a two-bedroom apartment across Canada's 10 biggest cities is $2,213 a month, compared to $1,171 a month in 2015. That is an almost 90% increase in rent. One of the issues complicating the price of renting is the need for more supply. Inflation has made the price of building housing units substantially more expensive while increasing red tape and taxes, disincentivizing builders from creating much-needed units.
Canada is becoming a nation of renters. According to RBC, the number of renters has increased at three times the rate of the number of homeowners in just the past 10 years. It is not only young Canadians who are increasingly turning to rent. The shift to renting is across age groups and geographic areas. RBC is projecting that the rapid growth in renters is not going to slow down, and it is clear that the home affordability crisis plays a significant role in that. The number of new homes completed in a year has increased only by 13% from 2015 to 2022.
I am glad to share my time with the great member for Simcoe North.
The Canada Mortgage and Housing Corporation says that if the current rates of new construction continue, housing supply will increase only by 2.3 million units between 2021 and 2030. CMHC projects that Canada must construct an additional 3.5 million units by 2030 to restore house price affordability.
What is most concerning to me is the lack of understanding that the government has of Canada's housing supply crisis. Instead, the Liberals continue to blame other factors or people for their own failures. We do not import land, workers or many of the supplies needed to build a house. I was in the homebuilding industry before coming to this place. I know first-hand that houses can be built using Canadian lumber, metal and workers. Russia, Ukraine and China do not play a part in that, yet house prices have doubled and Canada has the fifth-biggest housing bubble.
While home prices have come down from the crazy highs of last year, they are still significantly higher than prepandemic levels. The government's solution is to give tax credits and handouts, which do not address the housing supply issue, and provide more money to drive home prices. Even if homebuilders can meet the need for 5.8 million new units by 2030, Canadians still face high mortgage costs and diminished purchasing power.
Inflation has decimated paycheques and for first-time homebuyers, paying for a new home is daunting. As of 2021, Canadians would have to spend over half of their disposable income to purchase a home, and that number is only growing. Mortgages are now costing Canadians 60% to 70% of their paycheque and, at the same time, banks continue to raise mortgage payments to respond to the eight consecutive rate hikes by the Bank of Canada. Over 80% of homeowners with a variable rate mortgage have hit the point where their mortgage payment is made entirely of just interest and none of that on the principal.
I hear from industry experts and people in the financial sector that they are already seeing a rise in the number of people turning in their keys and defaulting on their mortgages, a sign that we are dangerously close to repeating the Pierre Trudeau era. The ratio of household debt to disposable income is at an all-time high of 183%, proving that Canadians are over-leveraged amidst the Liberals' overspending. Bank of Canada governor Tiff Macklem is using this as a reason for pausing interest rates, despite him and the current finance minister telling Canadians it was okay to spend and borrow as much as they liked because interest rates were going to be so low for so long.
Now, when Canadians face this affordability crisis and high inflation and interest rates, Governor Macklem and the finance minister seem unconcerned with the potential for a debt default crisis. Instead, the Liberals are so ignorant that they keep spending on inflationary waste like their insider consultant contracts.
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- Feb/14/23 10:30:42 a.m.
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Madam Speaker, I hear Conservatives talk a lot about inflation. When we look at the size of corporate profits, for example oil and gas, their profits since 2019 have gone up 1011%. All we hear from the Conservatives on that figure is crickets, so I would like to hear from my friend. When are Conservatives going to take a stand for Canadian families, when are they going to fight the real inflation, which is the absolute concentration of corporate power in Canada, and when are they going to take them on to make sure Canadians are not being raked through the mud by these overbearing corporate increases in prices on everyday items?
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- Feb/14/23 10:32:12 a.m.
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Madam Speaker, it is always a pleasure in this place. Today, I want to talk about inflation and spending. I have been here for just over a year. I have driven all over Ottawa, and I still cannot find the money tree that the government seems to have in its backyard, which it finds to spend on just about everything.
Let us find out why spending matters. It drives inflation. There are two kinds of inflation. There is demand-side inflation, where there is too much demand for too few goods or, as we often hear, too much money chasing too few goods. There is also supply-side inflation, which is not enough goods to meet the demand. We have both of those in Canada.
The problem is that the government would have us believe that the only issues causing inflation are supply-side issues that are outside of Canada's borders. However, many are now pointing out that inflation is being driven by too much demand in Canada, because we have too much money chasing too few goods. That is because we extended COVID supports longer than we needed to. We have prominent Liberal members, former members of Parliament, former finance ministers and former governors of the Bank of Canada suggesting that there is too much demand in Canada.
The Bank of Canada is trying to lower demand. That is why it keeps raising interest rates. However, when one raises interest rates, it really hurts people, including those vulnerable folks who are looking for shelter.
Inflation is even worse. Inflation hurts the lowest-income people, seniors and the most vulnerable Canadians the most. Every time they go to the grocery store, they feel like they are getting squeezed. They see it every day.
One of the main drivers of inflation is energy prices. It has been happening for the last number of years. Consistently, on this side of the House, we have put forward ideas to reduce the cost of energy. If one reduces the cost or the price of the thing causing inflation, one will reduce inflation.
I talked about spending and COVID supports. The government would have us believe that this is a binary discussion, and if one does not believe in government spending, then one did not support any of the COVID supports. That is not what we have been saying on this side of the House. In fact, this side of the House supported, in the very earliest days, the government putting forward programs to help people.
However, as COVID wore on and it became clear that there was abuse and that people were receiving COVID support payments that they should not have received, including prisoners, people who were lying, fraud artists and organized crime, people said, hang on a second, maybe we should consider making some changes. Even the Auditor General recommended that the government make some changes to the process they were using.
The government said not to worry. At the end it would go back, it would audit everybody and it would recover the money. However, the cheques were cashed and the money is gone. The CRA, which is supposed to be in charge of auditing the payments, said that it is not really worth the effort to go after everybody the Auditor General identified. That seems a little unnerving.
We are talking about $32 billion that the Auditor General said should be investigated. That is for payments that went to individuals who were ineligible but who got money anyway. There are also additional billions of dollars that went to people who were eligible, because of the government's poor design of a program, who should not have been eligible. That includes corporations that paid dividends to their shareholders, and they took the wage subsidy. They also had money to repurchase shares. That was about $7 billion or $8 billion. The Canadians for Tax Fairness put out a report yesterday showing how much abuse there was of the wage subsidy by very high-earning corporations.
In addition, we gave money to students, when the economy was open, to stay home and not work. That was another $8 billion or $9 billion. We are talking about almost $50 billion of COVID support payments out of a total $200 billion that might have gone to people who should not have had it. That is like 25% of the program.
That is why we are concerned. That is why we think that the Auditor General has given the government pretty good advice when she says that it should identify, go after and recover the payments.
It will increase Canadians' confidence in the integrity of the system. If the government just hopes that we all forget about it, Canadians are not going to believe that the government is working in their best interests. In fact, we need the government to take more seriously those who abuse the system so that it ensures the integrity of the system.
Canadians' support for institutions is falling, because the institutions are failing Canadians. We cannot simply say it is going to be too hard to look at these payments or to recover the money, so it is not really worth the effort. It should always be worth the effort to make sure that we recover payments that were improperly paid to Canadians.
We could have an honest discussion about those very low-income individuals who made an honest mistake when they applied. The amount is probably one or two billion dollars, and we could have a discussion about what kind of program, repayment or amnesty would make sense.
The Auditor General has called into question some of those payments. The Parliamentary Budget Officer also identified that over 40% of all spending that happened during COVID never actually went to helping Canadians through COVID. Those are two respected, independent officers of Parliament who have called into question the government's entire COVID support plan.
In times of inflation, we should always worry about top-line government spending, because when the government spends, it competes for goods. The government is spending 25% more per year, every year, than it did pre-COVID. The government calls that fiscal restraint. I have never met somebody who increases their spending by 25% and says they are spending a lot less money than we think they are.
We also have the tightest labour market ever seen. Unemployment is at an incredible low, yet the government continues to hire employees at a blistering pace. The private sector is trying to hire employees. They want to grow their businesses, to recover from COVID, to employ people who pay taxes and who pay corporate taxes. They cannot find anybody to work.
We have hotels with entire floors shut down, because they cannot find anybody to work there. It is not that they do not have the demand. They are turning people away. However, they do not have people to work, to open the rooms, to get the revenue, to pay the taxes, to pay the labour and to grow the GDP. Instead, the government wants to hire all those individuals and have them work for the government. That is not the way to grow ourselves out of this issue.
The government said, for almost five or six years, that we have to spend money because interest rates are so low. When the government was asked what happens if interest rates go up, it said not to worry because interest rates were going to remain low for the foreseeable future. When the government was asked what would happen to the cost of servicing the debt if interest rates went up, it said that was never going to happen.
Just this year, the government is going to spend $43 billion a year servicing and paying interest on the debt. Last year, it was $24 billion. Do members know how much we will spend on health care transfers to provinces next year? It will be $45 billion. We are going to spend almost as much money on servicing the debt as we will on transfers to the provinces for health care.
Everybody is wondering where we could find more money for health care. How about we spend less money on interest on the debt so that we would have more money for the things that Canadians rely on. However, that means we would have to spend less money on the things that are not important. The government has so many priorities that it has absolutely none at all.
The other issue is that the government does not need more revenue. The government has decided to continue to increasing taxes on things like the excise tax, which is a great example. The excise tax is going up on alcohol, beer, spirits and wine. It is going to cost industries tens of millions of dollars, which may even increase the price of those libations that members of Parliament and Canadians enjoy.
The government is increasing the excise tax because it linked it to inflation. However, when it decided to link that tax to inflation, no one believed that inflation was going to be 7%. All reasonable people are saying to take a pause on raising that tax. We do not need to continually hurt people as they try to purchase a six-pack of beer, a bottle of wine or a bottle of their favourite spirit.
The government does not need the revenue. It is making more money than it has ever made before. It is breaking records every day. The government needs to reduce its spending, to make sure that it is not taking on as much debt, to reduce the interest cost on the debt and to make sure that it does not compete with the private sector.
We need to make sure that we reduce inflation and to make sure Canadians can afford to live in this country.
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- Feb/14/23 10:42:10 a.m.
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Madam Speaker, I thank the member for two things in particular. The first is for acknowledging the fact that Conservatives voted in favour of a lot of that spending. The second is for not invoking The Notorious B.I.G. in the House, like the member for Calgary Forest Lawn did. That reminds me of the time that Paul Ryan, former speaker of the U.S. House of Representatives, tried to suggest that he listened to Rage Against the Machine because it was a really cool band, and he did not fully realize the irony that he was the machine.
Is it the belief, based on the rhetoric that we hear from Conservatives, that inflation is 100% a domestic issue? Can the member comment on whether Conservatives believe that other elements, like the war in Ukraine and other things that are going on globally, can contribute to the inflation Canadians are seeing? If they do not believe it as much as we do, then do they believe it at least to some degree, or are they just hell-bent on the idea it is—
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- Feb/14/23 10:43:16 a.m.
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Madam Speaker, I will resist the temptation to quote Nickelback, but if the hon. member listened to the speech, I had recognized that there are two causes of inflation. One is demand and the other is supply, both of them cause inflation in this country. More recently, economists, former Liberals and Bank of Canada governors are suggesting that the causes of inflation are more domestic than they are international. That means the things that happen here at home are causing inflation.
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- Feb/14/23 10:43:57 a.m.
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Madam Speaker, I have been listening to my Conservative colleagues and, once again, they are pointing out something that everyone already agrees is a problem. Inflation is causing a lot of problems for people in terms of the cost of groceries, mortgages and housing.
Moving beyond all of the problems that the Conservatives raised, if they were in power and had to present a budget tomorrow morning, what solution would they propose to deal with these problems?
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- Feb/14/23 10:45:54 a.m.
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Madam Speaker, I will consider any recommendation that sees the energy bills of Canadians reduced.
In addition, if the member wants to talk about profiteering corporations, I am not sure how a windfall tax is going to lower inflation for Canadians. However, I do support reviews by the Competition Tribunal and other independent officers as to whether there is unnecessary profiteering or price gouging going on. These are officers and agents of the country. We should be listening to them and taking their advice. There is a grocery study happening at committee. The Competition Tribunal is also looking at the grocery study. If we want to do more of that, I would be open to that as well.
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- Feb/14/23 10:46:47 a.m.
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Madam Speaker, I am pleased to be sharing my time with my colleague, the member for Sherbrooke.
I am actually rather delighted to take part in today's debate on the economy. In examining the Conservatives' motion, I suspect that I am not the only person to note the unbridled enthusiasm with which the Canadian economy is being bashed.
Indeed, the Conservatives' motion makes it sound like Canada is causing all the problems around the world, while that is obviously not the case. I am delighted to have this opportunity today to disabuse the Conservatives of this notion.
The Conservatives seem unaware that we experienced a once-in-a-generation pandemic and that such an event would inevitably have significant and widespread adverse impacts around the world, impacts from which Canada was not and is not immune. The pandemic necessitated a shutdown and a restart of our economy, not just here but in countries right around the world.
Vladimir Putin then illegally invaded Ukraine, sending shockwaves through global energy and commodity markets, with predictable and compounding adverse impacts on economies around the globe.
Analysts have clearly indicated that the ensuing global inflation was not the result of decisions made by one government. On the contrary, global inflation is due to the combined aftershocks of two and a half years of historic turmoil. These global historic events cannot be dismissed or ignored.
Unlike the Conservatives, our government did not ignore them. We faced them head on, and we gave Canadians the assistance they needed to overcome them. As a result, Canada is doing better than most of the other G7 countries during this extremely difficult period.
I would like to point out that inflation eased throughout the last several months, notably in December. In total, I believe it is down 22% since its peak. I also do not want to minimize or dismiss the fact that the cost of living has gone up, which it has, and that inflation does remain higher than normal. The cost of goods has risen, but it has risen all over the world, and every indication is that it is better to be living here in Canada during this time of global economic instability than just about anywhere else in the world. Inflation is lower here in Canada than it is in the United States. It is lower here in Canada than in the average of the European Union as well.
There is every indication that the current challenges flowing from the pandemic supply chain disruptions and from Russia’s illegal war on Ukraine are receding. The Bank of Canada and private sector economists expect inflation to ease towards the 2% target over the next two years.
Moreover, as a result of the targeted investments we have made as a government in order to support Canadians and our economy through these difficult times, Canada has experienced a strong rebound from the pandemic recession, with our 3% growth so far in 2022 being the strongest among G7 countries.
With close to 150,000 jobs created in January alone, our 5% unemployment rate is now close to historical lows. In fact, my friend, the hon. member for Simcoe North just said in the House that unemployment is at an exceptional low here in Canada. At the same time, the labour force participation rate rose once again to over 65%, and we are seeing labour force participation hit record highs across the board, but in particular for women aged 25-55.
Canada also saw the largest increase in real disposable income in the G7, and that should not be downplayed. Outperforming our peers in times of global challenges is a sign of strength, not weakness.
That is not to say that we are not still facing challenges, which is why the rising cost of living is at the heart of our government's concerns. There is no doubt that we see this as the number one economic challenge facing our country at this time.
That is why we introduced our affordability plan to support Canadians who are having a rough time making ends meet. It is already making life more affordable for millions of Canadians. Under our affordability plan, we have doubled the GST tax credit, which is providing targeted support to roughly 11 million individuals and families, including more than half of Canadian seniors. Many received that additional payment just recently, in November.
We have enhanced the Canada workers benefit to put up to an additional $2,400 into the pockets of low- and modest-income families starting this year. We set out a plan to further improve the workers benefit so that it reaches up to 1.2 million additional hard-working Canadians. This means, in total, the workers benefit will top up the income of up to 4.2 million of the lowest-paid Canadians, because no one who works a 40-hour week should have to worry about paying the bills or putting food on the table.
As part of our affordability plan, we also introduced a permanent 10% increase in old age security for those over the age of 75. That began in July.
This year we will provide a one-time payment to 1.8 million low-income Canadian renters who are struggling with housing costs. We have also reduced child care costs. The majority of provinces and territories managed to reduce fees by at least 50%, on average, by December 2022 as a result of agreements we have reached with our partners. We are building a dental care plan for Canadians, starting with hundreds of thousands of children under the age of 12.
In addition, indexing benefits to inflation means that key benefits that Canadians rely on, such as the Canada child benefit, the GST credit, the Canada pension plan, old age security and the guaranteed income supplement, increase with inflation.
These supports are targeted, and they reflect the actions of a responsible government. We have the lowest deficit and the lowest debt-to-GDP ratio among all G7 countries, and we have ensured those fiscal metrics while we were supporting Canadians who needed it.
Allow me to conclude on that note. Our approach is about balancing fiscal responsibility with compassion, and it is working. We are outperforming our global peers in the face of this shared challenge of the global economic instability we are all facing. We are supporting Canadians through those challenges while being fiscally responsible.
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- 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 11:08:39 a.m.
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Madam Speaker, in her speech, the member mostly talked about low unemployment and 3% GDP growth, basically suggesting Canadians have never had it so good. However, when the Canadians who are watching these proceedings today go to the grocery store, they know that those prices are not going down. If anything, they are still going up, and the problem with inflation is that once those inflationary prices are baked in, they are there to stay. Canadians know that this is going to be a serious, ongoing problem.
The member did mention spending, very briefly, at the end. Given the fact that former Liberal colleagues, finance ministers and governors of the Bank of Canada have said that Liberal government spending is a major contributor to inflation in Canada, how is her government going to actually control spending going forward so we do not have those inflationary pressures anymore?
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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 11:27:46 a.m.
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Madam Speaker, I thank my colleague from Terrebonne for her excellent speech. I also thank the members of the Conservative Party for giving me the opportunity to speak in the House about the difficult conditions in which thousands of people find themselves and to examine some possible solutions that ultimately do not seem to fix much.
Inflation is real, galloping and impacts the cost of everything, from gas, to housing, to food, to cars. It requires far more comprehensive measures than today's populist proposals. I am not surprised by any of the general statements at the beginning of the motion. It is true that inflation can wreak havoc on families' budgets and that it is currently causing the cost of goods and services to skyrocket.
Social housing is a topic that speaks to me. I was just at a meeting this morning with people from the Coop d'habitation Boréale, a housing co-operative in Rouyn-Noranda. As an aside, I would like to say hello to my friend Jean-Philippe. It is his birthday today, and I wish him a happy birthday.
This co-op's model is adapted to our region's reality, with a total of eight entrances. These are duplexes with backyards. This model provides for affordable housing for families. However, it is incredibly difficult to obtain financing for the necessary renovations, both from the Canada Mortgage and Housing Corporation, or CMHC, and lenders.
In order to get this money, the co-op is being asked to increase rents to match market pricing. So much for affordability. The government's maze of red tape makes it hard for volunteers, and it takes far too long to get answers. Not so long ago, CMHC employees were able to guide these volunteers. They no longer have the time to provide the same support.
The co-op housing model is a viable option for tackling the housing shortage. It addresses inflation and rising rents. However, this model should not be seen as mere apartment buildings. It should also be seen as the possibility of having duplexes, triplexes and other types of residences that will better suit families. Having a backyard and parking is also a way to improve the quality of life for younger families with less income.
It is important to ensure that co-operative housing developments like these remain in place to continue to provide affordable and accessible housing. CMHC needs to ensure that the co-op model remains an option and adapt its programs to help small co-op models make the necessary repairs.
If the Conservatives really want the government to help people deal with the rising cost of living, we invite them to support the solutions put forward by the Bloc Québécois. These are more equitable solutions to help ensure that prosperity is more equally shared.
Immediate relief must be provided to those hardest hit by inflation. This must be done by increasing the purchasing power of seniors living on essentially fixed incomes, by providing direct financial support to low-income earners, and by creating a program to support those most affected by a sudden spike in fuel prices, to the point of threatening their livelihoods. This includes farmers, taxi drivers and truckers.
We have to make the economy more resilient by tackling the structural weaknesses that cause inflation; reducing our dependence on fossil fuels, whose chronic instability causes price shocks; restoring essential links in the supply chain; and tackling the labour shortage that prevents businesses from offsetting supply shortages by increasing local production. We also have to take care of health, our children's education, and the environment.
The Conservatives' stubborn refusal to think about things, to ground their choices in this new industrial revolution, will cause a rift. In this motion, the Conservatives are repeating previous motions that were all rejected by the House. When they talk about inflationary taxes, they mean cancelling the carbon tax, reducing EI premiums and reducing Quebec pension plan contributions. They talk about cutting spending, but they do not specify what spending. These proposals would help briefly, but they are not real solutions. They will probably just exacerbate our problems.
Let us come up with solutions to deal with the labour shortage. One good way to do that would be to increase people's income. Another would be to encourage older workers to keep working by not clawing back their guaranteed income supplement. Still another would be to make it easier to hire temporary foreign workers in high-demand occupations by transferring responsibility for that to the Government of Quebec, which is already doing the impact studies the federal government requires of business owners. The Standing Committee on Industry and Technology actually just completed a study on this and will be releasing its report in the coming days.
We need to do a better job of protecting what has taken us all these years to build: our expertise in green mining, our hydroelectric capacity, our expertise in heavy-duty electric transportation, and our battery and electric vehicle supply chain. We need to leverage our expertise in quantum technologies and artificial intelligence. We can do even more with centres of excellence on advanced materials and the accelerated commercialization of micro-electronic components.
I could talk at length about Quebec’s capabilities, but my colleagues will be joining the debate shortly to highlight these aspects.
These are the steps that the government could take to address the source and effects of inflation. It is important to understand our approach.
Our monetary policy ensures a balance between supply and demand to keep price increases within a range around 2%. This policy is the responsibility of the Bank of Canada, which makes decisions independently.
The government also has a role to play. Its challenge is threefold: to protect the poorest, especially annuitants and those on fixed incomes, from the effects of inflation; to try to ensure that the inflation we have today, which is essentially due to current circumstances, does not become structural or long-term; and to work to make the economy more resilient and less vulnerable to inflation shocks by addressing its structural weaknesses.
The Bloc Québécois proposes a balanced and responsible approach, namely, targeting support programs for individuals and businesses to help those who need it, without exacerbating the upward pressure on prices, and clearly identifying the drivers of inflation so that we can address it directly.
In terms of solutions, we need to help those who are hardest hit, specifically seniors who live on fixed incomes and their savings, which are losing value at an alarming rate. They are the most affected by the rising cost of living. Before the surge of inflation, Canada was one of the industrialized countries where retirement income replaced the lowest percentage of working income.
The Bloc Québécois proposes to immediately stop reducing the guaranteed income supplement for the poorest seniors who are seeing cuts this year because they received the Canada emergency response benefit or the Canada recovery benefit last year and to increase old age security to protect the purchasing power of seniors who are faced with the rising cost of living.
We need to build more social and community housing. After growing by 6.8% in March, housing costs increased by 7.4% in April over the previous year. This is the steepest increase since June 1983. The housing shortage was already a serious problem, but it was aggravated by pandemic-related factors. Low-income households, which spend a larger share of their earnings on housing, are particularly affected.
Building social housing takes time and requires permanent and predictable programs rather than ad hoc programs, like far too many of the ones we have now. In Quebec, federal intervention has been particularly problematic. Quebec is the only province that provides ongoing funding for the construction of social housing through its AccèsLogis program. Quebec needed an asymmetrical agreement that gave it full control, which the federal government blocked for two years.
The Bloc Québécois proposes to boost the construction of social and community housing. The federal government should permanently allocate 1% of its revenues to Quebec through flexible and predictable transfers, which could provide additional funds for its programs.
We need to safeguard the independence of the central banks and tackle the labour shortage. The Bloc Québécois proposes establishing a tax credit for young graduates in the regions, as well as for immigrants, calling on experienced workers, transferring the temporary foreign worker program, establishing a productivity policy that includes measures such as research and development support based on productivity and support for investments in the empowerment and digital transformation of businesses.
We need to make supply chains stronger and more resilient, which would enable our SMEs to identify weak points in their supply chains, help them connect with domestic suppliers and propose new ways of managing inventory, to make them less vulnerable.
We need to strengthen our competition system through the Competition Act to limit the concentration of corporate ownership and major companies’ ability to abuse their dominant position, which makes prices rise.
We need to limit our dependence on oil. We know that the price of oil rose by 33% between December 2020 and December 2021. We need to accelerate the energy transition to shelter the economy from sudden spikes in the price of fossil fuels. This can be done through the electrification of transportation, energy retrofitting, support for businesses that want to move away from fossil fuels and toward renewable energy and redirecting financial flows toward green economic development.
In Ottawa, however, the Liberals downplay the problem and propose waiting for it to resolve itself, while the Conservatives want a more restrictive monetary policy and question the independence of the Bank of Canada.
Then there is the NDP, which is proposing an all-out spending spree that could further fuel inflation.
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- Feb/14/23 11:55:50 a.m.
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Madam Speaker, I wish the the NDP and that member, our partners in this supply-and-confidence agreement, a happy Valentine's Day. It is certainly one of the more challenging relationships I have ever been in, but, nonetheless, happy Valentine's Day to them.
The member brought up the agriculture committee. I could not help but reflect on a comment that was given last night at the agriculture committee by Dr. Jim Stanford from the Centre for Future Work. He said that clearly inflation was not due to the Prime Minister either, that our inflation and our food inflation were both below average for industrial countries.
Would my colleague like to comment on how inflation is a global problem? While it does not bring a lot of comfort to those who are experiencing it in Canada, we are experiencing these problems throughout the world.
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- Feb/14/23 11:57:55 a.m.
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Madam Speaker, I thank my colleague from New Westminster—Burnaby for his speech and his humanism.
We are talking about the cost of living and inflation. In my opinion, the most vulnerable people are seniors who do not necessarily have the means to re-enter the workforce and earn a higher income.
Would my colleague agree that OAS should be increased by at least 110% for seniors aged 65 and over?
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- Feb/14/23 12:13:23 p.m.
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Mr. Speaker, when inflation and the cost of living go up, housing becomes a key issue.
Does my colleague see boosting funding to buy properties and support affordable and community housing as a solution? If the number of units goes up, would that not bring prices down because of supply and demand?
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- Feb/14/23 12:24:40 p.m.
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Mr. Speaker, if we look at inflation throughout the globe and do not look at it just domestically, as the Conservatives like to do, we will recognize that Canada's inflation rate is among the lowest in the G7. Japan has an inflationary rate of 4%, France is at 5.8%, Canada is at 6.3%, the U.S. is at 6.4%, Germany is at 8.5%, the U.K. is at 9.2% and Italy is at 10.1%. When we look at energy specifically, both the U.S. and Canada have a 7.3% inflation rate. The rest of the G7 is anywhere between 15% and 64%. These are January 2023 numbers.
How is it that Conservatives can continually get up in this House and say it is the sole responsibility of the Prime Minister of Canada that we are experiencing the inflation we have? One of two things is happening. One, they are just not paying attention to what is going on in the rest of the world, or two, they think the Prime Minister of Canada is incredibly capable of influencing inflation throughout the world. Which one is it?
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- Feb/14/23 12:25:52 p.m.
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Mr. Speaker, it is obviously not the latter, because the Prime Minister has told us he does not think about monetary policy.
We are not asking the Liberal government to be held accountable for inflation policies around the world. We are talking about this country. The Liberal government flooded our country with $400 billion in deficit spending, and we all know, or should know, that inflation is a monetary policy. The government devalued the value of Canadian currency and our savings, and we are paying for it now because of higher prices.
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- Feb/14/23 12:27:54 p.m.
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Mr. Speaker, I am really amazed at the audacity of the Conservatives on some days. I listened to the member talk about the pain at the pump that his constituents are experiencing, but nowhere in his speech did he mention the massive increase in oil and gas profits, which are up 1,011% since 2019. I invite the member to stand up in this place, stand up for his constituents who are experiencing pain at the pump and take on the corporations that are gouging them every single day. That is the cause of inflation in Canada.
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- Feb/14/23 12:28:32 p.m.
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Mr. Speaker, once again we are getting a lesson that does not follow economics 101. There is no doubt that profits for oil and gas have gone up, but that is because the policy of the government, with its NDP coalition, has been to restrict supply and ensure that demand is ahead of supply. We need to bring more hydrocarbons to market to bring down prices at the same time as we cut the carbon tax to give consumers and families a break. That is how we break the vice grip of inflation. It is not by contraction and pain. It is by growth, hope and opportunity.
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- Feb/14/23 12:31:43 p.m.
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Mr. Speaker, it is a privilege to rise in this House to speak to this important motion that our party has put forward on the issue that is of most concern to Canadians today.
I know all of us in the House, and I am sure government members are hearing it as much as we are, receive calls and emails to our offices every day from struggling working people having trouble paying their bills. People who live on fixed incomes are having to make the most difficult choices in life, like the choice between paying for heat, paying for food, paying for medication or paying for gas in the car to go get food. These are the choices that people are making as a result of the actions of the Liberal government after eight years.
We are in an unprecedented situation of a 40-year high in inflation caused by the policies of the government after eight years. After eight years, people are working harder, but they are falling further behind. I know members of the Liberal Party love it when we raise Pierre Trudeau, so I will raise Pierre Trudeau. We have not had inflationary numbers like this since Pierre Trudeau was in government. That was a difficult time in the 1970s and 1980s for people. The sins of the father are now being delivered through the sins of the son.
Housing prices are now twice as high as they were in 2015. After eight years of the Liberal Prime Minister, the cost of groceries is up 11%. After eight years of the Liberal Prime Minister, half of Canadians are cutting back on groceries. After eight years of the Liberal Prime Minister, 20% of Canadians are actually skipping meals. After eight years of the Liberal Prime Minister, the average rent for a two-bedroom apartment across Canada in the 10 biggest cities is $2,213 per month, compared to $1,171 per month when the Liberals were elected.
After eight years of the Liberal Prime Minister, 45% of variable mortgage rate holders say they will have to sell or vacate their homes in less than nine months due to current interest rates. After eight years of the Liberal Prime Minister, the average monthly mortgage costs have more than doubled to now over $3,000 a month.
We can see that these costs are going up and that is why we are getting these calls. I am going to relate it a bit to what we experience in the Maritimes. Mr. Speaker, as a Nova Scotian, I know you are getting calls along these lines. The policies of the government have killed the investment in most industries in Canada. Bill C-69 is affectionately known as the “no pipelines bill”. I call it the “no capital bill” because it has really killed all capital investment.
The result of that is that in Nova Scotia and in New Brunswick, and my predecessor who spoke, the member for New Brunswick Southwest, has the same issue, we have to burn oil from Saudi Arabia to heat our houses. To give members an idea of what that costs, because of the policies of the government, it costs $1,800 to fill a tank of oil. Half that tank will be burned in four weeks.
These are the expenses that are killing people on fixed incomes in my part of the world and making them think about selling their houses. We have good, clean, ethical Canadian oil and natural gas that we could be bringing to Atlantic Canada to reduce our cost of living, but the government has brought in policies to stop that.
Of equal impact on inflation is the fact that the Liberals never saw a tax they did not like. What is the first thing they did? They thought they could put in carbon tax, a tax they thought would stop everything that goes on in the world with regard to weather. Carbon tax is inflationary by its nature. If it were to work, which it does not, the design of it is that it has to make everything much more expensive in order to cause people, theoretically, to change their behaviour.
In my rural riding, we do not have transit. We do not have options for how we get around, how we take our kids to school, how we get to work, how we get groceries, or how we go visit our parents and family members. We have to drive. Transit is not an option that we have. The Liberals believe that imposing a carbon tax would actually change the fact that we have to drive everywhere in rural Canada.
The imposition and tripling of this new tax, which would come into place this year in Nova Scotia, because the Liberals have not had enough of destroying our economies with their taxation, will make fuel cost an extra 40¢ a litre by 2030. For the mom taking her kids to hockey practice or taking her kids to school, this is a huge amount of money, on top of having to burn gasoline produced from oil from Saudi Arabia.
That tax costs families thousands of dollars a year when they are trying to make healthy meals and trying to figure out how to heat their houses. Heating houses, and this may come as a shock to the Liberal government, is not optional in Canada. We actually have to do that, and a tax that makes home heating more expensive for seniors living through our frigid winters is nothing short of cruel.
I am talking about the Liberal carbon tax, the tax on everything, the tax making everything more expensive. If the Prime Minister was serious about making life more affordable for our seniors, workers and families, he would cancel the carbon tax imposition in Nova Scotia, and he would cancel the tripling or quadrupling of the carbon tax that he is planning to do to make life more unaffordable for Canadians.
Instead of freezing that obscene tax, the Liberal government is raising taxes on the people who are struggling to make ends meet. Of course, the Liberals pretend that somehow, magically, in their world of math we could actually get more money back than we pay. That math does not add up in grade 6, but apparently it adds up for the Liberals.
The Parliamentary Budget Officer, in his reports on the carbon tax that exists now, has actually pointed out something the Liberals tend to ignore. I will read from the report: “most households in Alberta, Saskatchewan, Manitoba and Ontario will see a net loss resulting from federal carbon pricing” by 2030. That is a little different from the lines we hear. By then, the carbon tax levy will have increased to $170 a tonne. The moment we decide to decarbonize the economy in a relatively short period of time with a tax, if it were to work, we are talking here less than 10 years to significantly reduce greenhouse gas emissions, it is clear that there is going to be a cost.
The PBO goes on to report, “Most households...under the backstop will see a net loss resulting from federal carbon pricing under the HEHE plan” in 2030-31. The Parliamentary Budget Officer continues by stating, “Household carbon costs—which now include the federal levy and GST paid...and lower income...—exceed the rebate and the induced reduction in personal income taxes arising from the loss in income.”
In other words, this is not what the Liberals say during question period, that somebody magically pays into taxes to Ottawa and gets more back. I do not think anyone has believed that existed since the temporary imposition of income taxes when they first came in. It is just about as believable.
An additional element of this high-priced system that the Liberals have brought in is that we have fallen behind the U.S. in our per capita economic output. In 2015, we were equal to the United States, and now we are 40% less. That is $100 billion a year lost to the Canadian income, according to the IMF. I know the Liberals like to make up their own numbers, but the IMF says that is $100 billion a year that is lost to our income relative to the United States because of the policies of the government. Up until 2015, we were fairly equal.
I have many more issues, which I am sure I will get to address in the question and answer period, particularly with the member for Kingston and the Islands. I look forward to those questions.
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