44th Parl. 1st Sess.
March 22, 2023 01:00PM
- 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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- Mar/22/23 8:29:29 p.m.
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Madam Speaker, I am pleased to rise today to speak to our country's economic situation. Our government understands that many Canadians are struggling to make ends meet during this period of high inflation. Fortunately, inflation in Canada has been slowly declining recently. The OECD expects inflation to return to its target level by the end of 2024. Inflation in Canada was 8.1% in June 2022. It has since fallen to 5.2% in February.
Canadian inflation is still too high, but it is lower than what we see in many peer economies. It is going in the right direction, and going lower. For example, it is 8.5% in the European Union, and 10.1% in the United Kingdom. In fact, as we continue navigating through these difficult times, our country is faring much better than most other G7 countries. Canada is facing the same global economic headwinds from a position of fundamental economic strength, a sound fiscal balance sheet, an AAA credit rating, and an unemployment rate at a very low level.
The facts speak for themselves. Our government made targeted investments to support Canadians and our economy through the pandemic, and these efforts are paying off. Last week, it was great to see the announcement by Volkswagen, which is bringing literally tens of thousands of jobs here to the province of Ontario and benefiting Canadians from coast to coast to coast.
As a result of our government's leadership, Canada has experienced a strong rebound from the pandemic recession, with a 3%-plus growth rate in 2022, which is one of the strongest in the G7. On top of that, we continue to see the strongest increase in real disposable income in the G7.
In addition, the more than 170,000 jobs created in January and February and a historically low unemployment rate of 5% clearly demonstrate the resilience of the Canadian economy.
However, we recognize that many Canadians are struggling to make ends meet. Canadians are feeling the consequences of high inflation when they go grocery shopping, fill up their gas tank or pay their rent or mortgage.
Unfortunately, we can no longer help everyone, as we did during the pandemic. That said, our government has put measures in place to continue to help those who really need it.
We will help those most impacted by inflation.
With regard to the excise duty on alcohol, when it comes in inflationary adjustments to the excise duty rates on beer or wine, I would like to reassure my colleagues that they do not generally represent an increase in real dollar terms. They broadly preserve the effectiveness of these excise duty rates over time and generally ensure rates stay constant relative to the product on which they are levied.
Our government recognizes the important contribution that Canada's wineries, breweries, cideries and distilleries make to the national economy through job creation and the sale of high-quality products.
That is why the government implemented the wine sector support program, which is providing up to $166.2 million to agriculture and agri-food in the 2022-23 and 2023-24 fiscal years. This will help wineries adapt to current and emerging challenges.
Canadian small and medium-sized brewers currently benefit from reduced excise tax rates on the first 75,000 hectolitres of beer produced per year. This has provided support of up to $851,350 per brewer in 2022.
The government also repealed the excise duty on non-alcoholic beer starting on July 1, 2022, to encourage growth in this sector of the beer industry.
For the Canadians who need it the most, those most vulnerable, those most impacted by rising prices or inflation and those who feel the bite of rising prices most acutely, our government is there with inflation-relief measures. For example, we provided a one-time $500 payment to Canadian low-income renters through the Canada housing benefit.
We cut regulated child care fees by 50%, on average, across the land. Here in Ontario, day care fees have come down 52.7%, representing up to $6,000 or $7,000 of real before-tax savings for families in Ontario in some instances. Those are hard-earned dollars that stay in the pockets of Ontario families, and our government led the charge on this. We collaborated and worked with all the provinces, and we got it done. It is helping Canadian families not only here in Ontario but across Canada.
We have also doubled the GST credit for six months. This measure alone provided $2.5 billion in additional targeted support to the roughly 11 million individuals and families who already receive the credit. This includes the more than half of those receiving the benefit who are Canadian seniors.
We enhanced the Canada workers benefit to put an additional $2,400 into the pockets of low- and modest-income families.
We are also brining in the Canada dental benefit, which provides parents with children under the age of 12 who do not have access to dental insurance with direct payments of up to $650 per year, for a total of $1,300 per child over the next two years for dental care. It is estimated that 500,000 Canadian children will benefit from this targeted investment of $938 million.
These are just a few examples of what our government is doing to help Canadian families from coast to coast to coast. However, we understand that our spending capacity is not infinite and that it is important that we continue to pursue a tight fiscal policy. The measures we are implementing to help Canadians are not adding fuel to the fire of inflation. They are simply providing targeted and fiscally responsible assistance to those who need it most.
The Deputy Prime Minister reaffirmed the government's commitment to presenting prudent fiscal management ahead of budget 2023 at a recent meeting with chief economists for the major Canadian financial institutions. Canada has the lowest deficit and net debt-to-GDP ratio in the G7, maintaining our AAA credit rating through the COVID pandemic, and we are going strongly for the future.
We also committed to $9 billion in savings from a government spending review in the 2022 budget. According to a recent OECD survey, Canada's net debt-to-GDP ratio is well below the average for the OECD, the European Union and the United States. This continued track record of fiscal strength has allowed the government to continue providing necessary targeted economic support to those who need it the most: those most impacted by the inflationary period that Canada went through and is still going through, but which is receding.
In conclusion, Canada's economy is performing relatively well compared with the economies of our G7 peers, and there are good reasons for optimism. However, our government understands that many Canadians still need some support to get through these difficult times. That is why we will continue providing inflation relief to Canadians who need it the most and are the most vulnerable, for example, those who are most exposed to inflation and those on fixed incomes. We will continue doing so in a targeted, fiscally responsible way. The last thing we want is to make inflation worse. We are making life more affordable for Canadians while continuing to build an economy that works for everyone, helps the middle class and helps those working hard to join the middle class.
As we prepare for budget 2023, we also understand the need for further investments to create good jobs for Canadians to ensure that Canada remains a competitive place to do business, particularly in light of the U.S. inflation reduction act.
The Global Automakers were here this evening. I sponsored that event. It was great to see the representatives from Volkswagen there. Obviously, we congratulated them and I congratulated them on choosing Canada for their first North American battery plant. It is a plant for the future and creating thousands of jobs.
As the global economy undergoes the most significant transformation since the industrial revolution, Canada cannot be left behind. That is why we will continue to work tirelessly to create more high-quality jobs, invest in our communities and build a more prosperous Canada for future generations. We are preparing measures that will give Canada the tools it needs to succeed.
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- Mar/22/23 9:11:00 p.m.
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Madam Speaker, I thank my colleague from Cariboo—Prince George for the question. I am pleased to see him here in person in the House.
Indeed, these discussions are under way. It is not easy for businesses to survive, especially SMEs and especially because of COVID‑19. That is what the owner of the Trèfle Noir microbrewery said.
My colleague from Joliette managed to get the excise tax on spirits reduced. David Ouellet, from Miellerie de la Grande Ourse developed a gin and a mead. His products enjoy great commercial success, so much so that he has a hard time producing enough. By lowering this tax, we encourage creation. I will say that again because it is a clear example. This lends itself to local pride and a sense of belonging. We need to listen to that and give businesses some oxygen. In an inflationary context, this is something that is essential.
These producers will return this to us one-hundred-fold because this promotes our regions and that is invaluable. Obviously, this creates jobs and we cannot pass on that.
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