SoVote

Context: House Hansard - 171 - Mar/22/23

Mar/22/23 7:59:53 p.m.
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Madam Speaker, I am not sure if the member was speaking on the motion or if he had a point of order. I am a little unsure, because I thought he said he was splitting his time. If he was splitting his time, I do have a question for him.

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The Assistant Deputy Speaker (Mrs. Alexandra Mendès)

Mar/22/23 8:00:08 p.m.
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The hon. member is going to leave the chamber, so there will not be time for questions and comments. Resuming debate, the hon. member for Niagara Falls.

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Mr. Tony Baldinelli (Niagara Falls, CPC)

Mar/22/23 8:00:18 p.m.
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Madam Speaker, Canadians work hard for their paycheques, and they earn every cent of their income. That is their money to spend or save as they see fit. It is not the government's money to take through tax-and-spend inflation. At least, that is the way we Conservatives see it, which is in stark contrast to the high-tax Liberal government, which craves more and more taxes to continue feeding and fuelling its record spending. That is why today we Conservatives are calling on the Liberal government to cancel its massive 6.3% tax increase on beer, wine and spirits this April 1, to give relief to middle-class Canadians and those seeking to join them. Canadians do not want to be taxed more. They want to be taxed less. Another frustrating element to this is that the Liberal government acknowledges and knows that the finances and personal savings of Canadians are under attack, but what it fails to acknowledge or realize is that it is the very driver of this problem and a big reason why Canadians are suffering. It is the big taxer and the reason why inflation remains far above the 2% target range the Bank of Canada is trying to achieve. Even non-partisan experts have said that the government's policies have led to the inflationary problems we are facing today. Both the current and former governors of the Bank of Canada have recently spoken up. Last month, Tiff Macklem said, “inflation in Canada increasingly reflects what's happening in Canada”, and Mark Carney said, “Really [now] inflation is principally a domestic story”. Also frustrating is the fact that this escalator tax is automatically set to increase every year without Parliament getting a vote. It is undemocratic and unfair, particularly in respect to a matter of taxation. The power to stop this tax rests solely in the hands of the government, and Conservatives on this side of the aisle are demanding today that the government cancel this tax before it is hiked by 6.3% on April 1, which is just 10 days away. Locally, across Niagara, this alcohol escalator tax will punish many wineries, craft breweries and distilleries, as well as anyone who enjoys consuming these wonderfully made Canadian products while visiting Niagara, which is the number one leisure tourism destination in all of Canada. Further, what many Canadians already know is that these alcoholic beverages are already taxed at incredibly high rates. A January 2023 opinion piece, published by the St. Catharines Standard and penned by Franco Terrazzano, who is the federal director of the Canadian Taxpayers Federation, states, “Taxes already account for about half of the price of beer, 65 per cent of the price of wine and more than three-quarters of the price of spirits. You could spend about $125 if you pick up two bottles of wine, a 24-pack of beer and a 26-ounce bottle of whisky” and more than $76 of that would go to paying just the taxes. He continues, “In fact, Canadians pay so much tax that picking up a case of beer on the way to a party in Prince Edward Island would cost you more in taxes than the total retail price of a case of beer in 25 American states.” Members can think about that for a moment. Now the Liberal government is going to slap a new tax of 6.3% on top of all those taxes people are already paying for our expensive alcoholic products without any parliamentary approval. It is no wonder that, through these tax measures, the price of alcohol and meals in stores and restaurants is going up. As a result, the savings in our bank accounts are going down. This does not take into account the negative aspects these tax policies are having on those hard-working Canadians who are employed in the hospitality sector, and those who work in the wineries, distilleries and breweries throughout our country. A recent article published in the Toronto Star, by Manuela Vega, said it best when she reported, “Restaurants Canada, a national, not-for-profit association representing the country’s food service industry is calling on the federal government to freeze the duty, saying in a tweet that 'the restaurant sector cannot absorb another federal tax increase at this vulnerable time.'” Her article went on to highlight the comments from the Canadian Chamber of Commerce, which indicated, “It's time to freeze alcohol taxes to protect 150k Canadian jobs connected to making and selling beer.” It is the government's job to create the conditions so businesses can flourish and generate the jobs, wealth and prosperity needed by Canadians to go about their daily lives, and to try to get ahead. Instead, after eight years of the Liberal government, Canadians pay more today for their goods and services, and they are getting less. Groceries, gas, home heating and more are getting more expensive by the day because of these reckless Liberal spending habits. There are direct consequences that come as a result of the Liberal government recklessly spending the cupboards bare. Will the government be able to live up to the expectations it set out in its new federal tourism growth strategy? The tourism minister has spent the last several months asking the industry to think big on ideas to expedite economic recovery from the devastating impacts of COVID-19. However, fear is now beginning to grow in the tourism community that the Liberal government is once again failing to understand that the industry is still in recovery mode. It appears that, once again, the Liberal government is setting itself up to over-promise and under-deliver. This is a great shame for tourism communities across the country, such as mine in Niagara, which welcomes visitors from throughout the world. What is to happen to the wine sector support program, which was put in place because of the Liberal government's ineptitude on trade policy? The two-year, $166-million program has ended. The industry has asked for it to be extended, yet there have been no updates about its renewal. Last year's budget showed that the government would raise $390 million over five years in new revenue by now applying the excise tax to 100% Canadian-made wines. Where are those funds going? After eight years of the Liberal government, Canadians' paycheques and life savings are under attack by the big, bloated and tired Liberal government, and its high taxes and reckless spending, which have only driven up inflation. After eight years of the Liberals' recklessness, Canadians have to work harder, work longer and even work multiple jobs just to take home lower earnings to get by. After eight years of this disastrous Liberal government, Canadians could be forgiven for wanting to have a drink. On April 1, it will be 6.3% more expensive. Canadians do not want another big Liberal tax. Canadians want change, and that starts with the House of Commons agreeing with our Conservative motion to cancel the Liberal government's April 1 tax increase on wine, beer and spirits.

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Mr. Kevin Lamoureux (Parliamentary Secretary to the Leader of the Government in the House of Commons, Lib.)

Mar/22/23 8:08:42 p.m.
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Madam Speaker, I am glad the member is still around for my question. I would—

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The Assistant Deputy Speaker (Mrs. Alexandra Mendès)

Mar/22/23 8:08:50 p.m.
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The hon. member knows we do not mention the presence or absence of a member in the House. The hon. parliamentary secretary.

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Mr. Kevin Lamoureux

Mar/22/23 8:08:56 p.m.
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Madam Speaker, thank you for the corrective comment. I withdraw the comment. I am really curious about something, given the Conservative appetite to ratchet up this particular issue. When was the first time the member opposite raised this issue with either the Minister of Finance, the Prime Minister or any minister of the government?

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Mr. Tony Baldinelli

Mar/22/23 8:09:27 p.m.
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Madam Speaker, when I was elected, the first issue that I spoke to, and the first question I asked in the House of Commons, had to do with the WTO challenge that Australia brought about because of the escalator tax and its impact on the Canadian wine sector. The government failed to act. We told the government in 2017 not to act on putting forward that escalator tax. It did so, and it did so to the detriment of the Canadian wine sector. It is now paying the price.

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Mr. Sébastien Lemire (Abitibi—Témiscamingue, BQ)

Mar/22/23 8:10:04 p.m.
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Madam Speaker, this also affects the survival of our microbreweries. It is important to people living in Quebec as it affects the prosperity of our towns and villages. What are the members' thoughts on the survival of these microbreweries? In the context of inflation, providing direct assistance might be more impactful than cutting the excise tax, which would do very little.

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Mr. Tony Baldinelli

Mar/22/23 8:10:31 p.m.
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Madam Speaker, speaking about breweries, for example, Canadian brewers directly employ over 20,000 Canadian workers, many in unionized positions with an average compensation nearing $40 per hour. That is according to Statistics Canada. What are we doing by putting disincentives to their products being sold and putting their jobs at jeopardy? That helps nobody. We want to create an environment that creates jobs. Why is the government continuing to tax Canadians when they need relief?

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Mr. Richard Cannings (South Okanagan—West Kootenay, NDP)

Mar/22/23 8:11:15 p.m.
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Madam Speaker, the member for Niagara Falls mentioned the wine industry and the impacts on it. Many wineries never had to pay an excise tax in Canada, but because of the actions of Australia and the WTO, Canada's government backed down and took away that exemption, and now those wineries suddenly have to pay a tax they never had a business case for. I will let the member finish on that, because I know he can speak for hours on the subject, and he has maybe a minute or so. I would ask the member to please expand on that, because it really affects the wineries in my region as well.

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Mr. Tony Baldinelli

Mar/22/23 8:12:01 p.m.
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Madam Speaker, my colleague and I may disagree on other politics, but the one thing we can agree is that 100% Canadian-made wines are to the benefit of everyone throughout this country. When the Conservatives were in power in 2006, they implemented an excise exemption for 100% Canadian-made wines. The sector grew from 300 wineries to over 700, employing 9,000 people. This new escalator tax puts those jobs at risk. The margins in the wine sector, as the member will know, are very slim. Why is the government putting those jobs at risk? There is a replacement program. The government is going to be generating $390 million because of this new excise tax being applied to Canadian wines, and the government cannot assure the industry that those funds are for it. What are they going to do? Where is that $390 million going? That is what we want to know.

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Mr. Robert Kitchen (Souris—Moose Mountain, CPC)

Mar/22/23 8:13:13 p.m.
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Madam Speaker, I suspect my colleague from Niagara Falls, like the rest of us, has received hundreds to thousands of emails from his constituents about the tax coming into place as of April 1, and these escalating taxes are going to be on top of the carbon tax and on top of a tax upon a tax. In my riding, at the regional college, they are looking at doing a brewmaster program to further enhance this great industry. I am wondering if my colleague would mention how his constituents are feeling about the huge impact this tax will have on them.

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Mr. Tony Baldinelli

Mar/22/23 8:13:53 p.m.
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Madam Speaker, it is going to have a tremendous impact. I probably have the largest number of wineries and grape growers in the country, as well as the largest manufacturing plant in the country, with Arterra. Now I am just bragging, but I have a lot to brag about. I would like to thank—

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The Assistant Deputy Speaker (Mrs. Alexandra Mendès)

Mar/22/23 8:14:11 p.m.
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We will do the bragging at some other point. Right now, we have to resume debate. The hon. Parliamentary Secretary to the Minister of International Trade.

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Mr. Arif Virani (Parliamentary Secretary to the Minister of International Trade, Export Promotion, Small Business and Economic Development, Lib.)

Mar/22/23 8:14:18 p.m.
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Madam Speaker, I appreciate contributing to this evening's debate, although we had a bit of a late start. What is important about today's debate is that it is set in the context of basic issues about affordability, basic issues about rising costs and the cost of living, which is a challenge for families right around the country. It is no different for my riding of Parkdale—High Park and for the 337 other ridings around the country. People feel it every week when they are at the grocery store. It is difficult for many people, and we understand that. That is why we put in place a series of measures to make life more affordable for millions of Canadians. Our focus on this side of the House throughout this rise in the cost of living has been on Canadians who need the help the most. It is no longer possible to help everyone in Canada, as we did during the pandemic, so we are seeking and have been pursuing, quite diligently, targeted measures. That is really critical, particularly in light of the situation we are facing with inflation, as it currently stands. Our capacity to spend is not unlimited, nor would it be prudent to spend in an unlimited manner. What we are doing is trying to help those who need it the most. Let me talk specifically about the nature of this evening's debate with regard to the excise duty on alcohol. Let us be very clear that we are not talking about an approximately 6.7% rise in the price of alcohol. What we are talking about is a rise in the excise duty. I can tell members what that translates into if we equate it to the price of a bottle of beer. I will say quite candidly that I am one of those purchasers of bottles of beer. Like many other members of this House, I appreciate a good bottle of beer, including from a microbrewery, such as Henderson's, from just outside my riding, such as Waterloo Dark, such as Upper Canada Lager, and the list goes on. When we translate what this means to a person like me, to a family like mine, to Canadians in this chamber and those watching our proceedings on this Wednesday evening, it translates to less than one cent per can of beer. It is less than one cent. In fact, it is 0.78¢, so not even one full cent per beer is what this price escalator reveals. Why is it indexed in the manner it is? It is quite simple. We use this as a frequent tool to ensure that, as the cost of producing the goods we put taxation measures on changes and as the cost of living changes, so does the excise tax duty. There is a direct proportionality. That is the basic premise that we are dealing with. I will be splitting my time with the member for Vaughan—Woodbridge, who is also a lover of finer things. I think he is more fond of wine. I am personally more fond of the great thing that comes from wheat and grain, including a good pint here and there, beer in particular. This is a good segue into wine, which is next in my speaking notes. What we have been doing to support the sector is that we have implemented a wine sector support program, which provided up to $166.2 million to Agriculture and Agri-Food Canada in 2022-23, as it will in the forthcoming fiscal year, to support wineries in adapting to ongoing and emerging challenges. Indeed, the member for Niagara Falls, with whom I serve on the Standing Committee on International Trade, is very fond of promoting, as he should, the excellent wines from the Niagara Region. We are supporting those wines from the Niagara Region. Small and medium-sized brewers right now also benefit from the currently lower rate of excise duties on the first 75,000 hectolitres. One hectolitre is 100 litres, so that means, with my crude math, that one has to create 7.5 million litres before one hits the level of the higher excise duty applying. Just that simple feature of having a threshold that is hit at 75,000 hectolitres saved brewers up to $851,000 per brewer in 2022. That is significant in terms of supports that are already in place. What we have also done as a government is repeal the excise duty on non-alcoholic beer. One may be a designated driver or one may not feel the need for alcohol on a given evening or at a given weekend barbecue. Sometimes people pursue non-alcoholic beer. That is a great thing. We have a vibrant non-alcoholic beer industry. What we did is repeal the excise duty on that particular type of beer altogether on July 1, 2022, to encourage growth in that sector. What I also want to indicate today is that Canadians who are watching need to contextualize this discussion. When we talk about an escalator on the excise duty, when we talk about issues that relate to the cost of living, we have to put that in the context of what we are doing about the cost of living as the Government of Canada. We are doing a great deal. The targeted measures that we have rolled out over the past several years are vast, and I am going to list some of them. We have implemented changes to the Canada workers benefit. That means eligible low-income and modest-income families can receive up to $2,461 this year alone. Single Canadians, through the Canada workers benefit's improvement, without children, could get up to $1,428. We have provided $2.5 billion to 11 million Canadian individuals and families with low and modest incomes through the GST credit payment. We are providing tax-free payments of up to $650 per child per year. That is through a phenomenally popular program that covers dental expenses for kids under 12 through the Canada dental benefit, a program, among others, that the members of His Majesty's official opposition had the wisdom to vote against. That program alone has already helped 230,000 children with an aspect of their health care that was not covered previously, absent this new benefit that we have created. We are offering a tax-free payment of $500 to help low-income renters who are struggling with the cost of housing. My first remarks in the context of this evening's debate were about helping those who need it the most. Our view is that people who already receive the Canada housing benefit are among the lowest-income Canadians who are struggling with the cost of housing and with affording their rent. They are precisely the people who need our help the most, and that is what we have been doing with that top-up. There have been 625,000 applications received for that top-up to the Canada housing benefit, demonstrating the acute need that exists in the economy at present. We have heard the official opposition rightfully raise the issue of seniors on many occasions. Seniors and seniors in poverty deserve our assistance and they deserve it in a targeted manner. What we did is put a 10% increase on old age security payments for seniors who are 75 or older. That provides over $800 in additional support to full pensioners in their first 12 months. Thanks to our agreements with provinces and territories, we are reducing child care fees. This is actually quite incredible. I believe the mover of this motion is from the province of Alberta. In his province, fees have already been reduced by 50%, ahead of schedule. By 2026, our Canada-wide early learning and child care plan will bring fees for regulated child care down to $10 a day on average from coast to coast to coast. In fact, the $10-a-day goal has already been achieved by some provinces that were early adopters of our plan. Unfortunately, I cannot say the same for my own province of Ontario, which was the very last adopter of this plan. We will not realize the benefits of $10-a-day child care in Ontario as fast as we could have, had there been a bit more earnestness on the part of Premier Ford, but I will leave that discussion for another day. In terms of the province of the mover of this motion, Alberta, the savings already in effect will be an estimated $8,610 on average per child, per year, for my friend's constituents. If we compare the magnitude of that kind of savings with 0.78¢ per can of beer, I think members can appreciate the priority we are placing and where we are placing it, in terms of Canadians and their true needs. Canadians are facing challenges; there is no doubt. In these final two minutes, what I would say is that improvements have been occurring. Last month alone, 22,000 jobs were created, more than double what was expected. More than 20 million Canadians now have jobs. That is 830,000 more Canadians employed than prior to the COVID-19 pandemic; 126% of the jobs that were lost since the peak of the pandemic have now been recovered. On average, wages have increased 5%. For women, age 25 to 54, the participation rate is now at an all-time high of 85.7%. I will draw a direct linkage between that statistic and the child care policy that I just outlined. By empowering affordable child care, we unlock the potential of women to fully participate in the economy. That is a critical initiative. That is a gender-focused initiative. That is a feminist initiative. That is an initiative I am proud to stand by. In this final minute, what I will say is that Canadians are here, and on all sides of the House. We promote our wine and our beer industry. It is vital to job growth in this country. It is a vitally proud industry for Canadians of all stripes, from all political backgrounds. What we are not debating is support for that sector. What we are debating is the impact of the excise duty escalator. What I would say to Canadians who are watching tonight is that, yes, the price will go up by 0.78¢, less than one cent per can of beer, but what we are doing is addressing the costs of Canadians by the acute measures that I have outlined. That is important and I think we should all raise a toast to just that kind of initiative.

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Mr. Tony Baldinelli (Niagara Falls, CPC)

Mar/22/23 8:24:09 p.m.
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Madam Speaker, when my colleague talks about the jobs that the government has created, he fails to recognize the impact of COVID on tourism and hospitality communities such as Niagara. During COVID, 40,000 people almost immediately lost their jobs. The sector is still struggling to recover, and regressive tax policies such as the escalator tax are preventing people from getting their full employment back. The impacts on restaurants are staggering, preventing restaurant owners from hiring those people back. How would he comment on that?

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Mr. Arif Virani

Mar/22/23 8:24:52 p.m.
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Madam Speaker, again, I highlight the member's advocacy for his sector of Niagara and the tourism that takes place there. It is critical to the Canadian economy, to the Ontario economy and to the region of Niagara. What I would put to him quite simply is that the issues I hear about in Niagara, from the tourism sector, do relate to acute shortages, but they are not tracing those acute labour shortages in the sector to the excise duty escalator. The 0.78¢ per beer is not directly impacting the industries he is advocating for. What is affecting them is things like the pandemic itself and things like acute labour shortages, people rethinking where they want to work and how they want to work. The ways we can address that are by encouraging more of the policies that are helping get people back to work, including through immigration, which we are strongly advocating for.

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Mrs. Claude DeBellefeuille (Salaberry—Suroît, BQ)

Mar/22/23 8:25:40 p.m.
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Madam Speaker, I want to respond to the speech by the Parliamentary Secretary to the Minister for International Trade by focusing specifically on the excise tax issue as it relates to small producers of currant wine or pear cider. As we speak, these producers pay an excise tax that is completely unjustified. Their production is so small that they cannot compete internationally and thus are unfairly taxed. Quebec has an abundance of artisanal producers who make alcoholic wines or ciders from berries. I am asking my colleague opposite, who sits at the decision-making table, if he will take the opportunity before the next budget to present to the minister the idea of exempting producers of pear cider or berry wines, who currently pay an excise tax. Thanks to the efforts of the member for Joliette on the last budget, we succeeded in exempting producers of mead and apple cider from the excise tax. Unfortunately, we have not had the time to get to other fruit producers—

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The Assistant Deputy Speaker (Mrs. Alexandra Mendès)

Mar/22/23 8:27:11 p.m.
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I must allow some time for the hon. parliamentary secretary to respond. The hon. parliamentary secretary.

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Mr. Arif Virani

Mar/22/23 8:27:14 p.m.
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Madam Speaker, Blanche de Chambly comes to mind and its version with blueberries from the Saguenay region. It is important to support industries like microbreweries in Quebec and across Canada. As I mentioned in my speech, with the excise duties currently in place, the cap is 65,000 hectolitres, so we already have a system in place that benefits microbreweries. What needs to be studied is the issue of fruit in our alcoholic beverages.

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