44th Parl. 1st Sess.
April 21, 2023 10:00AM
Mr. Speaker, with the unanimous consent of the House, I will be splitting my time with the member for Louis-Saint-Laurent.
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Mr. Speaker, I look forward to hearing the intervention of the member for Louis-Saint-Laurent.
My comments today lead off the comments of His Majesty's loyal opposition on Bill C-47. That is the Liberals' budget implementation bill. The question before us is whether anything in this budget bill will actually be true when we look at the promises of the Liberals compared with the results.
I want to put the record spending in this budget plan into some historical context. I know the Liberals are a little challenged on math sometimes, so please bear with me. I hope they can follow it.
In the federal election of 1968, Pierre Trudeau reassured Canadians that a Liberal government would not raise taxes or increase spending. During the election, he said that the government was not Santa Claus. How did that work out? When Pierre Trudeau became prime minister, real government spending increased from 17% of the GDP to 24.3%. In other words, the federal government's share of the economy rose 42% under Pierre Trudeau. Every single area of federal government spending increased, except defence spending, where Pierre Trudeau cut spending in half as a percentage of the budget. When Pierre Trudeau took office, we spent more on national defence than we did on servicing the country's debt. When he left office in 1984, for every dollar the government spent on defence, we spent $3 on paying the interest on his national debt.
Let us look at this another way. The deficit Pierre Trudeau ran in his last year of office was 8.3% of the GDP. Based on Canada's GDP in 2022, Pierre Trudeau's 8.3% of GDP deficit would be like an annual deficit of $157 billion today. His record was to drive Canada's debt from $262 billion when he became prime minister to $700 billion when he left office. Pierre Trudeau added $438 billion to Canada's debt, almost tripling it. This was from a Liberal leader who said he would not run deficits when he was first elected in 1968 and that the government was no Santa Claus.
I raise this because, as the adage goes, like father like son. By the time Pierre Trudeau left office in 1984, 38¢ of every dollar that the federal government spent was to pay interest on the debt that he had built up. His policies of massive spending led to a rapid rise in interest rates to try to reduce inflation. All that government spending simply made it worse. Interest rates rose to 21%.
Like his father, the current Liberal leader promised Canadians in his first election in 2015 that, even though Canada was running a robust growing economy and had a balanced budget left by the Harper government, he would run modest stimulus deficits. However, in 2019, it would be balanced. The platform that the Liberals all stood on in 2015 said: “We will run modest deficits for three years so that we can invest in growth for the middle class and credibly offer a plan to balance the budget in 2019” and “we will...reduce the federal debt-to-GDP ratio to 27 percent”.
Did he have a balanced budget in 2019, as he promised and as his father also promised in his first term? No, he did not: like father like son. The Liberals produced a $20-billion deficit in 2019. Promises were made, and promises were broken.
Did the Liberals reduce their first fiscal anchor of 27% of the GDP? No, they did not. It was 31% in 2019, so another promise was made and broken.
In the new Liberal budget after 2019, there was no longer talk of a balanced budget. The debt-to-GDP ratio was the new fiscal anchor. It would remain the same during the four years of that fiscal plan, even though that meant they would be spending more. We know that at least the promise to spend more and not to balance the budget was true.
We then had an early and unnecessary election in 2021. What did the Liberal platform say then about promises for the country's finances? There was no talk of balanced budgets until perhaps 2050, but the Liberals did promise to drop the debt-to-GDP ratio from 48.5% in 2021-22. We should remember that in 2019, their campaign promise said that, in 2022, the debt-to-GDP ratio would be 31%, not 48%.
What does the bill project for this year? The budget set the cumulative spending for the next five years at a record $3.1 trillion. We should remember that, in the fall, they promised that the budget would be balanced. However, if these numbers are to be believed, and if they did not add more spending in the rest of their term, they would add another $130 billion to the national debt. The national debt would rise to a record $1.3 trillion. The Liberals project that interest on the national debt would rise from $44 billion a year to $50 billion a year in five years. This is if we can believe the interest rate projections in this budget. That $50 billion in interest is $10 billion more than we spend on national defence.
The budget includes $84 billion in new tax credits for businesses over the next five years. The Liberals project that inflation will be 3.5% in 2023 and roughly 2.1% thereafter. For this to happen, inflation would need to drop from 5.5% now to 2% in July and stay there for the next five years. This is not likely. The $3.1 trillion in spending, with massive deficits, would pour gasoline on the inflation fire. Therefore, these projected inflation rates are ridiculous.
In the last year of the Conservative government, federal government spending was $280 billion, with a $1.9-billion surplus. This year, the budget projects $456 billion in spending. That is up $176 billion, or 63%, since the Liberals took office. The fiscal framework projects the government spending to be $543 billion. This is if there is no further spending in the rest of their term. That is $263 billion more than in 2015, representing a 94% increase in spending. The increase alone is almost as much as the entire 2015 budget. Taxes have risen by $282 billion since 2015. We know it is not a revenue problem, because revenue has gone up by 92%.
At the end of the bill's plan, Pierre Trudeau and the son, the current Liberal leader, will have contributed $1.1 trillion to Canada's national debt. Pierre Trudeau always spent more than he promised. After eight years of the Liberals, the son has done the same. Promises were made, and promises were broken. Canadians simply cannot afford any more Trudeaus.
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Mr. Speaker, the Mulroney government produced an operating surplus by the second year of its mandate and an operating surplus every year after that. Every prime minister since Pierre Trudeau ran an operating surplus, except for the current Prime Minister.
In terms of pandemics, the Parliamentary Budget Officer said that over half the spending done in the pandemic had absolutely nothing to do with the pandemic itself. That is the fiscal irresponsibility of Liberals.
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Mr. Speaker, it is another promise made and broken. The Liberals were never going to do omnibus bills, but every single budget bill they have had has amended acts of Parliament that had nothing to do with the budget. They have done it yet again. Canadians have come to expect they cannot trust anything the Liberal government says, whether it is on the finances or how it is going to operate Parliament.
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Mr. Speaker, I enjoy sitting on the fisheries committee with the member for Nanaimo—Ladysmith, as well as her thoughtful interventions during the fisheries committee work we do together.
From our perspective, what we do is respect provincial responsibility first of all. Open net-pen farms or aquaculture in Atlantic Canada is a provincial responsibility in licensing. In British Columbia, it is a federal responsibility. The government has lost several cases in the B.C. courts over its handling of it. It committed to consulting with the industry, which it did not do. The fisheries minister previous to this one, whom I happen to have defeated, also promised, when she made the decision to remove the Discovery Islands fisheries, that there would be transition programs for the industry and the employees, and now the current government, of course, is silent on those promises.
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- Apr/21/23 11:06:42 a.m.
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Mr. Speaker, elver licence-holders wrote DFO in January, stating, “Over the last 4 years we have heard every excuse in the book why C&P can’t enforce, including Covid-19, staff shortages, safety concerns, and the ever popular 'we’re working behind the scenes'. We see zero change in the enforcement strategy.”
These Liberals ignored the pleas of legal licence-holders for years about poaching. Now, of the few DFO arrests of the thousands of poachers on the rivers this year, all have been released by DFO without processing because DFO enforcement staff are on strike, leaving no enforcement of any fishery in Canada.
Hardware stores and Canadian Tire stores in my riding are telling me that the last few days they have sold out of nets, buckets and bubblers, which are all needed to poach elvers.
The Liberals bragged about increasing patrols. Observing is not arresting. Now DFO is not even observing. I know the Liberals failed math, so let me help. Zero multiplied by any number is still zero. Lawlessness is on our rivers. Legal harvesters are paying the price. The Liberals are as effective as washed-out bait.
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- Apr/21/23 11:50:52 a.m.
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Mr. Speaker, last year, Volkswagen had the same revenue as the Government of Canada, at $413 billion. Now the Liberals are providing a $14-billion subsidy from taxpayers.
My question is simple. How many jobs in the plant does $14 billion buy for this auto company, which was convicted of environmental law crimes in Canada?
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- Apr/21/23 11:52:07 a.m.
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Mr. Speaker, perhaps the member should listen to his Minister of Finance who, on Wednesday, said that competing with the subsidies of the Biden inflation act is a “race to the bottom”. Liberals surely would not give away $14 billion in taxpayer money without a contract on the exact commitments of jobs in the plant.
I will ask again: How many jobs in the plant will this $14-billion subsidy buy?
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