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House Hansard - 171

44th Parl. 1st Sess.
March 22, 2023 01:00PM
Context: House Hansard - 171 - Mar/22/23
Mr. Richard Lehoux (Beauce, CPC)
  • Mar/22/23 9:58:54 p.m.
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Mr. Speaker, I rise today to speak to our party's opposition day motion on the Liberal government's escalator tax on beer, wine and spirits. This unfair tax introduced by the government in 2017 is extremely troubling and will once again increase the cost of things that Canadians regularly consume. This tax will not only have a major impact on consumers, but it will also harm many small businesses, including microbreweries, vineyards and other alcohol producers. It will harm restaurants, hotels and bars as well. These small businesses deserve a break after being hit so hard during the pandemic. However, this government is determined to increase taxes on everything in an attempt to recover the money it wasted over the past eight years. On April 1, the escalator tax will increase by a staggering 6.3%. Since 2017, the tax has increased by an average of only 1% to 2% a year, but in 2023, it will be three or four times that. That is why, in this motion, our party is calling on the government to abolish this tax and to assure Canadians that next week's budget will contain a commitment to cancelling this tax. As I mentioned earlier, it will hit small businesses the hardest. This unfair tax plan will negatively impact not only our alcohol industry, but also our tourism industry, which is still picking up the pieces after the COVID-19 pandemic. Alcohol is taxed enough already. According to the Canadian Taxpayers Federation, taxes make up 50% of the price of beer, 65% of the price of wine and 75% of the price of spirits, on average. The heads of eight unions representing the country's brewery workers have written to the Minister of Finance asking her to freeze this tax. They are extremely concerned about job losses in their industry because of this dangerous Liberal tactic. In a country where inflation is at a 40-year high, why does the government want to keep on hiking taxes instead of helping Canadians prosper? To make matters worse, this tax increase will take effect on April 1. What a coincidence. That is the same day the government plans to triple the carbon tax on Canadians. Not only will the price of gas go up, but the price of alcohol will also skyrocket. That is cruel. When I spoke earlier about the effect of the carbon tax on small businesses, I did not even mention the impact it will have on alcohol producers. Their monthly expenses to run their facilities will go up, and so will their shipping costs. How does the government think our sector can remain competitive on the national stage? I think it is very sad that the government is tying our industry's hands with such a policy. Canada produces some of the best beer, wine and spirits in the world, but they are being unfairly targeted by the Liberal government. The Minister of Tourism continues to stand up in the House and say that this will add only 1¢ per can of beer. I do not know where he is getting his figures, but according to Beer Canada, there will be a net increase of about 10% in the price of beer in 2023. In my riding, many small businesses have contacted my office to share their concerns about this increase. I spoke about it with a producer in my riding just this morning. Ms. Simard, owner of Verger à Ti‑Paul in Saint‑Elzéar, is very worried about her business's ability to remain competitive as April 1 approaches. Her cider business is still in the initial stages of development, and she is very frustrated with this 6.3% tax, which will slow the growth of her business considerably. Mr. Poulin, owner of Frampton Brasse, a farm and brewery in Frampton, in the Beauce area, says that larger, older businesses like his are just as worried and frustrated by this tax. Whether a business has been operating for one year or 20, it will have to deal with the disastrous consequences of this failed Liberal policy. These are mostly small businesses, and their products are distributed solely in the region. Consequently, this additional tax will be passed on directly to consumers, who are often the neighbours of these businesses and want to support local products. This spend-happy, tax-happy government is preventing young entrepreneurs from achieving their dreams and owning a business. In my riding and across the country, labour availability remains a major issue. It will be much more difficult for small breweries and cideries to retain staff because of low profit margins. Companies will be forced to cut back on production time, making them less and less profitable—
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Context: House Hansard - 171 - Mar/22/23
Mr. Richard Lehoux
  • Mar/22/23 10:04:50 p.m.
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Mr. Speaker, the bureaucracy and other obstacles such as this government's tax system are driving investments to other countries. This needs to stop. The Conservatives were strongly opposed to this escalator tax when it was first introduced by the Liberals. We even campaigned on the idea of getting rid of it. Members within the Liberal caucus do not seem to agree with this policy. Just ask the member for London North Centre, who said that the government should not move forward with this tax and it should not be tied to inflation either. In conclusion, the cost of living keeps going up faster than the prevailing wage, and measures to make goods more affordable are sorely lacking in Canada. I sincerely hope that the government and the Minister of Finance will listen to the Conservatives, but mostly to Canadians, and that they will cancel this tax in the budget they are bringing down next week. I hope that the other opposition parties will join us in voting on this motion in order to pressure this government into doing what is necessary and scrapping this tax for once and for all.
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