44th Parl. 1st Sess.
June 8, 2023 10:00AM
- Jun/8/23 11:55:47 a.m.
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Mr. Speaker, I take some exception to the leader of the NDP saying that members of this House are not taking this seriously.
A month ago, I was on the front lines and visited the government operations centre for the fires around Parkland County. I know the member for South Shore—St. Margarets just came from the front lines in Nova Scotia and the member for Chicoutimi—Le Fjord came from the front lines in Quebec.
Can the leader of the NDP tell us whether he has visited any of these wildfire sites and, if so, what were his experiences on the front line?
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Mr. Speaker, I am always pleased to rise in the House to speak on behalf of my constituents, and today we are debating Bill C-35, an act respecting early learning and child care.
I spoke on this bill at second reading, before it went to committee. After reviewing my comments from my previous speech, I do not see many improvements that would address the very important concerns I have with this legislation.
From the outset, I want to affirm that Conservatives support making child care more affordable for families. That is why, back in 2006, our Conservative government created the universal child care benefit, which put money directly in families' pockets to spend on their priorities. At the time, the Liberals claimed that families would just spend it on beer and popcorn, but they have since come around to our position with their improved Canada child benefit, which combined a number of already existing child care benefits, including the Conservative universal child care benefit, under one program.
The Liberals have moved forward with their new Canada-wide early learning and child care initiative. In budget 2021 it was projected to cost $25 billion, at least, over five years. Now, due to record-high inflation and high demand for limited, affordable child care spaces and limited professional child care workers, this number has undoubtedly become far larger.
I would remind the House that this program is being funded entirely by borrowed money, and the cost of these Liberal deficits and higher interest rates means that, for every billion dollars borrowed, they will pay an additional $45 million in interest every year.
I am very excited to see the new movie Oppenheimer. Thinking about that movie got me thinking about the brilliant Albert Einstein. Einstein is reported to have said that the eighth wonder of the world is compound interest. Those who understand it will receive it, and those who do not understand it will pay it. I do not think the Liberal government understands it because compound interest is truly a powerful force.
As the Liberals borrow billions more each year to fund their programs, that interest compounds. At the current interest rates of 4.5% for Canada government bonds, the interest cost for a plan that costs a billion a year will exceed and rise exponentially as long the government borrows year after year. These deficits are radically increasing the interest costs Canadian taxpayers will have to pay. Eventually, this debt has to be repaid. It is Canadians and the economy that will suffer because the government will either have to borrow more or tax Canadians more to pay for it.
We have always given the Liberals a hard time. We have called them the tax-and-spend Liberals, but today we have something that is far worse. We have the borrow-and-spend Liberals. At least with the tax-and-spend Liberals, they would go out and raise taxes to try to gather money to pay for their programs. With the borrow-and-spend Liberals, they conjure this money out of thin air. They create new money in the system.
This creates inflation in two ways. By competing for capital in the economy, they raise the cost of everything from mortgages to business lines of credit, which thus raises the cost of owning a home, running a business and many other things. The second way it creates inflation is when they spend that money. When government spends the money it borrowed, it is competing with consumers and businesses for goods and services, which raises the cost of everything.
The Liberal child care plan is proving to be not only an expensive failure, but also extraordinarily inflationary. I have spent the last two years, since the government brought forward this program, consulting with families and child care operators. Very few of them have anything good to say about these programs. While some families have benefited from lower child care costs, there are at least tens of thousands of Canadian children who are stuck on waiting lists. Some of them have been stuck on these waiting list for years. Their children will be in kindergarten before a spot ever opens up, if it ever does, so they will not benefit from this program.
The guiding principles under section 7 about funding in this bill say that this program must be accessible, affordable and inclusive. The program has been implemented over the past couple of years. It is still in the process of being fully implemented, but looking at the outcome of what we have seen so far, the program, as it stands, is not accessible. At least 50% of families have not been able to access an affordable care space. It is not affordable because those families that cannot access a space are still paying the full unsubsidized price for child care, and it is certainly not inclusive because these families are from all sorts of communities.
Because this is a universal child care plan, it does not matter if a family earns hundreds of thousands of dollars a year or a family is below the poverty line. There is no consideration for lower-income families or special dispensation for these families, so what we are seeing is that marginalized communities are being further marginalized by being excluded from programs. As such, on its own principles, the government is failing to achieve what it said its principles are.
The government also said under paragraph 7(1)(b) of this legislation that the bill must provide access that enables “families of all income levels, including low incomes, to benefit”. Before the implementation of the Liberal early learning and child care plan, many families across Canada already benefited from subsidy programs provided by their municipalities and provincial governments. These low-income families were paying far less for child care than the top rate that most middle-income and upper-income families were paying. These families were already benefiting from government subsidies in some form or another. However, because the government has implemented a universal system that does not take into account means testing of income, we have a flood of people from middle- and upper-income families taking spots in the system, and low-income families that could get subsidized spots in the system are no longer benefiting from these spots. Therefore, on another principle of this legislation, the government's already existing child care plan is failing.
Statistics show that the demographics of people who were already accessing child care in this country before the implementation of this Liberal plan were primarily middle- and upper-income families. Those middle- and upper-income families that already had a child care space are the primary beneficiaries, because they never had to wait on a waiting list since they already had a child care space. When the government took the $1,500 a month families were paying and brought it down to $500 a month, it was putting $1,000 a month in the pockets of primarily middle- and upper-income families.
This fails on the standard and principle of creating equity and fairness, because we know that inflation impacts lowest-income families the most. Lowest-income families spend proportionally more of their income on things like shelter and housing, transportation, food and other things. As such, when these families do not get access to child care, they continue to spend a lot of money. When higher-income families get access to these government subsidies, which they are currently, they get extra money in their pockets and spend it on things that are not necessarily shelter or necessities because they are of higher income and it is a lower proportion. They are spending money on more restaurants, a new vehicle or maybe a bigger house. As we are seeing, these are areas where inflation is really rising in this country.
This is another example that demonstrates the inflationary power of the government's legislation. The people who are being hurt the most are the lower-income families, because the prices of things are being pushed further and further beyond their reach.
I spoke to child care operators and asked what the biggest problem they are facing is, and they said labour is the biggest problem. They said to me that currently in Ontario the most they can pay a child care operator is $25 an hour. That is annualized at about $48,000 a year. There was a woman working at a day care centre who has been working there for 30 years, and she is getting paid $25 an hour. She is making less today, after inflation, than she was making when she started 30 years ago. For a high school or university graduate coming straight out of school, an entry-level job in the federal government will pay around $48,000.
A 30-year professional child care operator under this Liberal plan, which the Liberals say will raise wages somewhat, is making less than an entry-level worker for the federal government, and with competition for labour, they are losing people left, right and centre. They cannot retain people, and because of the restrictions and regulations the government has put in place under this legislation, they cannot compete for this labour. Their hands are tied and they are losing staff, which means losing capacity and increasing wait-lists. This is an unfolding disaster that families are seeing across Canada.
Finally, the child care director told me that the reason families cannot get spots is that the government has capped the number of spots it will fund. These families cannot get spots because the government is choosing not to fund them. The government is responsible for the wait-lists we are seeing in this country.
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- Jun/8/23 6:57:36 p.m.
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Mr. Speaker, it is always great to see politicians stand up in the House and quote other politicians who are patting each other on the back about how wonderful the things they have done are. However, do members know who I really want to hear from? I want to hear from the families that have been waiting for two years on a waiting list. They are literally calling child care centres several times a week to ask if they have an opening yet. They are being told there is a 700-child wait-list.
I want to hear less from government members about patting each other on the back over how wonderful a job they are doing, and I want to hear what their constituents are telling them about these massive wait-lists, which are only being exacerbated by the government's failure.
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- Jun/8/23 6:59:31 p.m.
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Mr. Speaker, this bill will do nothing to create more affordable child care spaces for Albertans.
I think this is very interesting. The NDP comes from a philosophical place that says for those who have much to give, much will be asked for, and for those who do not have much, much will be given. I find it very odd that the New Democrats are not criticizing this legislation in the same way I am because of the inequality it is entrenching in our system.
It is the middle- and upper-income families that are statistically benefiting far more from this government subsidy than lower-income families. I would think that the New Democrats, in the spirit of wealth redistribution, which is something they claim to support, would at least have some criticism to suggest that maybe it is lower-income families that need more support through this legislation. We are not seeing that support for low-income families, and it is very surprising that the NDP is not standing up for the low-income families being excluded by this flawed Liberal policy.
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- Jun/8/23 7:01:53 p.m.
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Mr. Speaker, I think too often in this House, it is forgotten that there is only one taxpayer. The federal government does not give money to the provinces. It is all coming from the same taxpayer, taxpayers who are residents of the municipalities, residents of the provinces, residents of Canada. With this cycling of money, we have to remember that fundamentally it comes from the same hard-working taxpayers. We need to start standing up for them for a change, because we are not seeing that from the Liberal government.
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