44th Parl. 1st Sess.
April 21, 2023 10:00AM
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, I am pleased to rise in the House to talk about what the NDP can add to the budget. As we know, the Liberals have been in power for years. They are doing the same thing that the former Conservative government did. They refuse to take action to help people.
This time, the NDP leader, the member for Burnaby South, and the entire NDP caucus, including the member for Rosemont—La Petite-Patrie, were able to work to ensure that we do not have to settle for the same budgets we have seen in the past, budgets that do nothing for ordinary Canadians, but instead give a big boost to the banks and big corporations, just as the Conservatives did. We can see in this budget and in Bill C‑47, which the NDP supports, that dental care has finally been added to the health care system for people across the country. We are talking about $13 billion over five years.
The reality is that, in every riding, no matter where it is located in the country, there are some 30,000 people without access to dental care. Thanks to pressure from the NDP, in a minority Parliament, we were able to ensure that in every riding, those 30,000 people—families, seniors, people with disabilities and young people—can have access to dental care. This is extremely important, and we are quite pleased. Canadians who understand the changes the NDP has made to the budget are also quite pleased because they will finally have the opportunity to have dental care.
That is not all. We exerted pressure on the government to double the GST credit. That is extremely important. Like the member for Burnaby South, I know that people are struggling right now and that they need help. The fact that 11 million families across the country will be able to receive double the GST credit to pay for groceries is going to help a lot because people are having a really hard time.
The NDP is also calling on the government to change our economy and to work harder to have a clean economy, particularly in light of all the challenges posed by climate change. Things clearly need to change. The NDP once again exerted pressure in a minority Parliament to invest in clean energy and for those investments to go toward unionized jobs that come with a pension plan and social benefits. That way, the government will help the whole community by investing in clean energy. The NDP believes that, when it comes time to invest, the investments must help the community. Unfortunately, that is not what we are seeing with the Liberal approach or what we saw with the approach of the former Harper government, as I mentioned earlier.
We also need, and this is important, to change the situation that exists in first nations communities across the country. The member for Nunavut has spoken about this at length. It is important to make investments there immediately. Last year, we were able to force the government to make these investments, but now we need to build this housing as soon as possible. The government tends to announce programs and then do nothing afterward. This is urgent. The member for Nunavut has told us this several times. We need to take action to bring in these investments and build housing as soon as possible.
There is another thing that I find disappointing, despite the fact that the government is finally closing a tax loophole that cost $600 million a year.
This is something the NDP has been calling for from day one. We obliged the government, forced them to do it. Nonetheless, as I said earlier, most of the loopholes remain in place for the ultra-rich, the wealthy, but also the corporations that benefit from these loopholes. I will come back to that.
The NDP has made a difference in this budget, there is no doubt. I have to speak of somebody I will call Joanne. After I was elected as a member of Parliament, she came to me. She works in the service industry for minimum wage. Her teeth were literally rotting out of her mouth. She was in tremendous pain.
There were no programs I could point to to help her, as is the case with so many Canadians, millions of Canadians across the country, who do not have access to basic dental care. When we look at the average, there are about 30,000 Canadians in each and every riding right across the country.
This constituent, one of my bosses, Joanne, simply had nowhere to turn. She was in great pain. As we know, so many Canadians have to go to emergency wards across the country. The estimated cost in Ontario alone is $1 billion for Canadians going to emergency wards for dental emergencies that they cannot receive treatment for.
The reality of having a dental care program in place, which children and their families, youth, people with disabilities and seniors could all access, in a few months' time would be an extraordinary improvement to our health care system. Tommy Douglas always said that the health care system needs to cover people from the top of their heads to the soles of their feet. The member for Burnaby South, the national leader of the NDP, also believes this. That is why he has been pushing so hard for the dental care program to be put into place.
How could any member of Parliament vote against a dental care program that would help 30,000 of their constituents? I cannot understand where they are coming from, that they would choose partisanship and ideology over the important primary role we have as members of Parliament, in the House, to work to help the people we represent.
That is just one of a number of things that the NDP forced the Liberal government, in a minority Parliament, to deliver to Canadians. We have also forced a doubling of the GST rebate, the grocery rebate, to help Canadians who are struggling to put food on the table at this difficult time.
We pushed the government to invest in a clean energy economy that would create good, well-paying union jobs. The ability to organize makes a big difference, as we know. Whether we are talking about the private sector or the public sector, workers who are organized generally have a higher return, better benefits and normally, as well, access to pensions. That makes a difference not only in their lives, but also in their communities, as unions make a difference in communities across the country.
When members of Parliament stand in the House to say that they do not believe in unionized, organized labour, they are saying to their communities that they do not believe in money staying within the community. Unionized workers have better pay and benefits, and a right to a pension, which means more benefits circulating in the local economy. There are some members of Parliament who would say that they want money to instead go to wealthy corporations offshore, and that they want that money to go to high-priced consultants who would take that money offshore.
New Democrats understand that a local economy is built from the ground up. It starts with good wages. It starts with jobs that actually make a difference in the community. Those people who live in the community shop in the community and spend in the community. That benefits everybody in the community. That is a fundamental difference between us and some of the other parties in the House.
The final point I want to make before I start to talk about the elephant in the room is the issue of housing, particularly in indigenous communities. The member for Nunavut has been a strong and powerful voice in this regard, as have the member for Winnipeg Centre and the member for Edmonton Griesbach. The first nations, Métis and Inuit in Canada have been deprived of the right to housing, the right to have that roof over their head.
The government is moving far too slowly to provide the affordable housing that is fundamentally important for the future of our country. We push, and we add our voices to the voices of the members of Parliament for Nunavut, Winnipeg Centre and Edmonton Griesbach to say that we need to build that housing now.
The money that was pledged last year has not rolled out, and it needs to roll out now. The money that the government is promising in a couple of years needs to be moved up, and it needs to be treated with the sense of emergency that is certainly felt in indigenous communities right across this country.
I am now going to come to the elephant in the room, which is the similarity between Liberals and Conservatives. They have a brand coalition of wanting to conserve a privilege that deprives so many Canadians of the investments that are critical for their future. The Parliamentary Budget Officer told us, just before the COVID pandemic hit, that over $30 billion a year goes to overseas tax havens from profitable corporations and the ultrarich. Members will recall that the Harper regime put that secret network in place to really ensure that as much money as possible could be taken offshore, and it is $30 billion a year, which the PBO said was a conservative estimate.
Now, at $30 billion, it means that over the last decade, $300 billion of tax money was taken offshore. This was put in place by the Harper regime and has been maintained by the current government. This is a coalition of the financially irresponsible, who are depriving Canadians of so many things.
That elephant in the room is something that needs to be dealt with. We have a Liberal government, and a Conservative government before it, refusing to ensure that every Canadian pay their fair share, including Canada's wealthiest corporations and Canada's richest citizens. They should pay their fair share of income tax. It is as simple as that.
A fair share of taxes should go throughout the spectrum and ensure that every Canadian pays their fair share. This would allow us the wherewithal to fund a whole range of things that are not funded now, whether we talk about the dental care plan, which the NDP has brought forward, or pharmacare, which we know would save $4 billion a year for Canadians generally.
The reality is that pharmacare, like our universal health care system and like dental care, makes a difference not only for the individuals and the families involved, their quality of life and their bottom line, but also for Canadian businesses. Our universal health care system has a competitive advantage of about $3,000 per employee for a Canadian business compared to an American business hiring that same employee, because in the United States, if they want to keep that employee, they are going to have to invest in a health care plan. In Canada, those businesses do not have to pay for health care, which is so important for their employees. Dental care makes a difference of hundreds of dollars. Pharmacare would be a difference of about $600 per person. Making that investment in pharmacare is not just smart for the families involved.
We hear the horrific stories from across the country, and the Canadian Nurses Association is telling us that hundreds of Canadians die every year because they do not have the wherewithal to pay for the medication that will keep them alive. I have a constituent family who is paying $1,000 a month in heart medication. We cannot tell them that universal pharmacare would not make a big difference in their lives. They are having that tough choice every month of whether they are going to keep a roof over their heads or pay for their medication, and that is the case for hundreds of thousands of Canadians across the country. Universal pharmacare would make a difference.
How do we ensure that the federal government can do that? Well, we have to start ensuring that we close the massive loopholes that lead to $30 billion every—
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