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 10:55:07 a.m.
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Madam Speaker, the Trudeau legacy of the 1970s and 1980s was a disastrous inflation crisis, energy crisis and fiscal crisis that was terrible for Canadians at the time over those 15 years when that government ran deficits in 14 out of 15 years. A generation later, it led to $35 billion in cuts to transfers for health care, social services and education under the Chrétien and Martin Liberal governments. It was $35 billion in cuts because of the disastrous Trudeau economic policies of the 1970s and 1980s.
Is the member concerned today that, at a starting point, the $4.5-billion broken promise on a Canada mental health transfer, a promise her own party made in the last election and cannot afford to keep, is just the tip of the iceberg in terms of things that will have to be cut for Canadians because of the disastrous economic policies of her government?
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- Feb/14/23 12:29:21 p.m.
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Mr. Speaker, the Liberal member for Kingston and the Islands got me thinking. I am just reflecting, but I feel like there was a Prime Minister Trudeau before the current government who ran massive inflationary policies that led to economic devastation in the seventies and eighties and massive cuts in the mid- to late nineties to health care, social service and education. I am wondering if my hon. colleague remembers that as well.
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- Feb/14/23 12:29:47 p.m.
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Mr. Speaker, I am vaguely aware of the first Trudeau. What I find interesting is that the national energy policy that was devastating to Alberta and western provinces at least had Canada as the beneficiary, particularly industries in central Canada. However, I think it was a misguided policy.
I look at what the Liberal government is doing today, and it is not only ruining energy policy in this country but, at the same time, making energy more expensive and selling it to Americans and Europeans at a cheaper price. It is completely backwards.
The Prime Minister, in many senses, is doubling down on bad policy and is hurting Canadians.
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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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- Feb/14/23 1:17:51 p.m.
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Mr. Speaker, after eight elections, I am pleased to rise on behalf of the residents of Renfrew—Nipissing—Pembroke who continue to vote for me to be their parliamentary valentine.
As dean of the Conservative caucus, it is my role to provide institutional memory and a bit of history. After nearly eight months under the leadership of the member for Carleton, our party is more united than ever. After eight years of the Liberal government, Canadians need our party to be more united than ever, because after eight years of reckless inflation-fuelled spending Canada is broken. After eight years of the Prime Minister, he cannot protect our citizens. The paid-off media claims our military is short 10,000 soldiers. In truth, it would be hard pressed to muster 10,000 soldiers if they were needed.
We have foreign incursions into our Arctic waters with no way to monitor traffic below the surface. Within weeks of the 2015 election, the Liberal Prime Minister was dismantling our national defence, starting with our navy. As one of his very first acts, he tried to deep-six the project to build a naval supply ship, when our country had none.
We have four submarines, which were catastrophically flawed from the time they were purchased used, and we are lucky to have one in service at any given point in time. We have one submarine operational. Four in total are needed due to the maintenance schedules. A submarine takes 10 years to build, even if it is off the shelf from an ally. Instead of taking action to replace them now to ensure we have underwater capability a decade from now, the Liberal Prime Minister is throwing good money after bad on retrofits.
After eight years, Canada cannot protect our airspace. Thanks to the U.S. media, Canadians saw for themselves how the absence of an early warning system left us vulnerable to penetration by air.
With the Internet three decades old, Canada does not have a cyber-defence force stood up yet. Sure, the Liberal Prime Minister has plans to censor the Internet, just so his warped, woke doctrine can be propagated. However, after eight wasted years, we cannot protect our electrical grids, our water systems or our transportation systems from cyber-attacks.
After eight years of the Liberal government, we cannot afford four more. Not again. I say not again because it really feels like we have been here before. In 1972, Prime Minister Pierre Trudeau lost his majority, so he cut a deal with the NDP. Spending went up, debt went up and inflation took off. By 1984, the deficit had reached 8% of GDP.
Canadians were tired of Pierre Trudeau and his irresponsible policies, so they turned to Brian Mulroney, and he won the largest majority government in history. I do not want to raise expectations for the member for Carleton. I just think my colleagues across the way should mentally prepare themselves. If they continue to ignore recent Canadian history and to spend without concern for the future, there will be a reckoning.
After eight years of the Prime Minister, Canada is broken. Canadians can feel it. After eight years of the progressive Prime Minister, public spending is up. There are more public servants and more consultants, but basic services are falling apart. Nearly a year ago, I wrote to the minister responsible for passports and warned them that service performance was plummeting. It was not until June that they announced a task force to look into the problem. Recently, the minister was claiming mission accomplished. Congratulations. The government is now processing fewer passports with more personnel.
Famously, the government has a productivity problem, which is not a surprise from a government that brags about doing less with more. It is not just passports. How many members across the aisle tried to renew their possession and acquisition licence? I will go out on a limb and guess zero. How many members heard from constituents who cannot even reach someone on the phone? After eight years of the Prime Minister, the Canadian firearms centre is broken. If Canadians are starting to feel as if everything is broken, it might be because it is.
The Financial Consumer Agency has been conducting a regular monthly survey since the start of the pandemic. At the height of the lockdowns, with business closures and mass layoffs, 26% of Canadians had to borrow to make ends meet. Now, with no lockdowns and a labour shortage, 38% of Canadians have had to borrow just to make it through the month.
The number of people using payday loans has risen from 1.4% to 4.5%, but percentages really do not tell the story. In 2020, there were as many people living in London, Ontario, as there were using payday loans. After less than three years, it is now as many as the number of people living in Calgary.
How many of my colleagues across the aisle got into politics to triple the customer base for payday loans? That is part of their legacy now, and that might be a hard truth to swallow. After eight reckless years of deficits, the medicine cannot be sugar-coated. One cannot borrow forever.
The government tried to convince itself that as long as the debt-to-GDP ratio was not increasing, it could borrow until kingdom come. Unfortunately, for the gang who cannot spend straight, reality has a fiscal bias. At first, the Liberals tried to deny that inflation was even happening. We saw prices skyrocket.
It turns out that when one gives high school students CERB, they use it to buy NFTs. When one keeps interest rates artificially low, people with houses buy more houses. When one forces everyone to work from home, many opt to buy a better home. When one increases the carbon tax, the cost of everything goes up.
Once inflation could no longer be denied, the Liberals and their media allies instantly pivoted from denying the reality of inflation to denying the cause of inflation. First, it was magical supply chains causing inflation. The problem for inflation deniers is that we do not import hairdressers.
Many of the critical bottlenecks in shipping cleared well before the consumer price index started to rise. Prices were already increasing before Putin's invasion. Countries around the world, which had all followed similar expansionary, fiscal and monetary policies, began experiencing inflation.
The new line was that inflation is a global problem, which was a pretty convenient excuse for a Prime Minister who brags about his intellectual disinterest in monetary policy. However, a fly just flew into the Liberals' delusional ointment.
The Governor of the Bank of Canada said, “inflation in Canada increasingly reflects what's happening in Canada.” First, they denied inflation. Then they denied the cause. Finally, the finance minister tabled her fiscal update.
In her speech, it sounded like she got it. The words fiscal responsibility poured from her mouth like a mountain spring, but the numbers on the page told a different story, or rather the same old story. Taxes are up, spending is up and they are borrowing more. After eight years, Canadians are tired of this broken record.
Many Canadians might not remember, but after the massive deficits of former prime minister Pierre Trudeau, Canada hit a fiscal wall. Jean Chrétien and Paul Martin were forced to balance a budget. They slashed spending and laid off tens of thousands of people. They devastated health care in Canada. The crisis in health care today is that eventually, with socialism, one runs out of other people's money.
The Liberals thought they could laugh in the face of history. They thought they could deny economic reality, but the world has a way of catching up. As they prepare for their next budget, they should pay some mind to the lessons history can teach. The most important lesson is the bill always comes due.
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- Feb/14/23 1:29:20 p.m.
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Mr. Speaker, the Liberals' coalition of spending wants to talk about former prime ministers. The longer they delay, the bigger the bill.
Pierre Trudeau's reckless spending led to the GST and to massive cuts to health care. Canadians pay more but get less. It is another shining example of the Liberals being unproductive. Like father, like son. Just like his father, he centralized power in the Prime Minister's Office. To hear former finance minister Bill Morneau tell it, the Prime Minister has adopted many of his father's worst instincts: imperious, aloof and dictatorial.
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- Feb/14/23 2:37:46 p.m.
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Mr. Speaker, I am going to talk about the notwithstanding clause, the only bit of autonomy that the Constitution guarantees Quebec and the provinces. It was the compromise that Prime Minister Trudeau senior came up with so that the provinces would agree to his Constitution, which, by the way, was never signed by Quebec. The notwithstanding clause gives Quebec and the provinces the right to make different societal choices without having them overturned by the courts or the federal government. Yesterday, Prime Minister Pierre Elliott Trudeau's son's Liberals and the NDP voted against that right.
Why is it that the Liberals and the NDP think that any little bit of autonomy for Quebec and the provinces is too much?
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