44th Parl. 1st Sess.
October 5, 2023 10:00AM
Madam Speaker, today I will be speaking to Bill C-56, an act to amend the Excise Tax Act and the Competition Act. This bill is divided into two parts to amend the Excise Tax Act and the Competition Act. I will be sharing a few points in respect of why the bill is being tabled at this moment and how it relates to small businesses.
I have one point before I begin. On a per-person basis, real GDP growth has declined for four consecutive quarters. Controlling for population growth, per capita GDP declined by 3.5% at an annualized rate, according to RBC.
In many respects, I would sum this bill up as too little, too late. After eight years of the NDP-Liberal government taxing, spending and putting up red tape, the bill before us is just not enough. Inflation, rising interest rates, unaffordable housing and a sense that everything feels broken have left Canadians wondering if their government truly has their best interests at heart.
Indeed, with tanking poll numbers, the Liberal-NDP government veered from its legislative agenda to table this bill before us today after the summer recess. A recent study by Dalhousie University's Agri-Food Analytics Lab found that over half of Canadians are employing more cost-saving measures at the grocery store than they did a year ago, and more than 86% consider themselves more price conscious thanks to rising grocery prices. However, no one has to ask me. All anyone has to do is go to the Superstore, Save-On-Foods or Costco on the weekend and look at the faces of people when they see prices.
Food Banks Canada recently reported that one in seven of their clients is currently employed. Canadians are going to work and earning a paycheque, but it does not go far enough anymore. This summer when I was door knocking, I met a young mom with three kids at home. Her husband works in the construction industry and also part time as a mechanic, but despite having a pretty good income, at the end of the month it does not add up, and they are using St. Joseph's Food Bank in Mission. It is a sad state of affairs right now.
I would be remiss if I did not mention that it is Small Business Month. For every dollar that is spent at a Canadian small business, 60¢ is returned to the local economy. For big corporations, that figure is just 11¢. Small businesses employ two-thirds of Canadians. They are truly the backbone of our economy. Unfortunately, the government has long held a disdain for small businesses and the people behind them.
In 2015, the Prime Minister said, “a large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes”. Just recently, the Prime Minister once again showed his disdain for small business owners with his half-baked promise of a CEBA loan repayment extension. The CBC proudly touted that businesses would have an additional year to pay off their outstanding CEBA loans and still receive partial forgiveness. Small businesses were thrilled to hear that they would be given more time to weather the economic storm and repay their loans.
Unfortunately, that is not the case. The fact is that businesses will only have an additional 18 days to repay their loans or miss out on the forgivable portion. That is shameful. I wonder if the Minister of Small Business will stand in this House, correct the record and clearly state that the actual extension date for small businesses to receive the forgivable portion of their loans is only 18 days and not a year, as communicated.
After the last election, the Prime Minister said in this House on numerous occasions that the Conservatives' plan on housing was “to give tax breaks to wealthy landlords”. He typecast all landlords as wealthy crooks while ignoring key barriers to building new affordable rental units, namely excessive taxes as one contributing factor. When the government was elected in 2015, it did indeed promise to scrap the GST on new purpose-built rental housing. Was its definition of a landlord a little different back then?
Members on that side of the House love to misquote me about getting the federal government out of the housing industry. What I have said is that the federal government needs to get out of industry's way so that it can build. Funnily enough, they are finally taking that step today, and I am supportive of the measure on reducing the GST on purpose-built rentals.
I will now turn to another portion of the bill, the Competition Act. The bill would repeal the efficiencies defence in that piece of legislation. Canada, I will note, is the only country in the G7 that allows this type of defence. It permits anti-competitive mergers to go ahead so long as the cost savings outweigh the negative impacts on competition. Cost savings are almost always found through job cuts. Just recently, Canadians watched as the government did nothing to stop the anti-competitive merger of Rogers and Shaw. I am glad this defence will not be able to be used in the future.
Interestingly, this is another idea that was brought forward by a Conservative in recent months. This past June, the member for Bay of Quinte tabled Bill C-339, an act to amend the Competition Act regarding the efficiencies defence. Bill C-339 and Bill C-56 make identical amendments to the Competition Act.
The problem here is that while this is a good idea to promote competitiveness in the broader economy, it would not do anything to stop rising prices at grocery stores or the anxiety Canadians are feeling when trying to feed their families and, in this particular week, planning for a Thanksgiving dinner. The cost of lettuce is up 94% across Canada. Carrots are up 74%. Oranges are up more than 77%.
I will note that part of the reason those prices are up so much is that carbon taxes have been rising. According to the Parliamentary Budget Officer, the carbon tax will cost the average Canadian family between $402 and $847 this year. By 2030, the carbon tax will add an additional 50¢ per litre to the price of gas.
Further exacerbating this is the issue of shrinkflation. I remember a time not too long ago when I could buy two pork roasts from Costco for $18. Now, for the same price, we just get one. When Canadians see the title of this bill, it gives the impression that the government is doing something about grocery prices right now. That is false.
While this is an agreeable change to the Competition Act, it would do nothing to address the immediate needs of Canadians struggling with higher grocery costs and the anxiety that comes with that. As I mentioned at the beginning of my speech, it is too little, too late.
It goes without saying that when we tax the farmer who produces the food and tax the trucker who delivers the food, those costs are going to be passed on to the consumer. If the NDP-Liberal government really wanted to address the affordability crisis right now, it would axe the tax.
While I will be joining my Conservatives colleagues in voting to move this bill forward to committee, it simply does not go far enough to provide Canadians relief from sky-rocketing prices. While it does contain good policies, it would do nothing to fix the real-time and very challenging struggles faced by Canadians in respect of finding an affordable place to live and paying an affordable price for the food they need to feed their families.
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Madam Speaker, my colleague from Winnipeg North raises an important point about the Competition Act. The efficiencies clause, which was likely used, but I cannot confirm that, in the context of the merger he referenced, was the same one used in the Rogers-Shaw merger. I am not disputing that this is a positive change. In fact, my colleague from Bay of Quinte tabled very similar legislation in this Parliament. However, we need to do more with respect to the Competition Act to allow for competition to flourish. That relates to the number of grocery stores and the number of businesses offering those services to Canada.
The principal point I am trying to make today is that a change to the Competition Act right now would not impact the prices people are paying at grocery stores. Despite the title of this bill, an act to amend the Excise Tax Act and the Competition Act, and the short title, the affordable housing and groceries act, it does nothing to reduce the cost of groceries in the immediate term.
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Madam Speaker, in Quebec, voting Bloc means voting to raise taxes. The Bloc Québécois is costing Quebeckers more. Quebeckers will consider voting Conservative because we will lower taxes. We will support families and lower the cost of living.
The Bloc Québécois wants to raise the cost of living for Quebeckers. We will put a stop to that. It is just common sense.
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Madam Speaker, I am in no way opposed to further increases in co-operative housing across Canada. It has played an important role in providing a safe and affordable place for many of my constituents to live.
However, in order to reduce the overall cost of housing in Canada, we not only need to be taking the measure in this bill of reducing GST payments on purpose-built rental construction. We also need to have a whole-of-system approach to make sure we can produce all types of housing so Canadians have a safe and affordable place to live. It is not lost on members of the chamber that we had more houses, in real terms, built in 1972 than we did last year. We have to do more. What we are doing right now is not enough.
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- Oct/5/23 3:13:54 p.m.
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Mr. Speaker, after eight years, the NDP-Liberal government is not worth the cost.
Statistics Canada reports that the number of businesses closing shop in Canada is greater than the number of businesses opening. In August, there was a 37% increase in business insolvencies year over year. This is the highest it has been in recent history. Canadians are losing confidence at an alarming rate in their ability to do business in our country.
Why has the government turned a blind eye to the looming crisis of declining entrepreneurship in our country?
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- Oct/5/23 3:14:39 p.m.
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Mr. Speaker, the Liberal minister knows as well as I do that many of the problems facing small businesses in our country are a direct result of that party's governance and negligence: higher inflation, higher payroll taxes, higher carbon taxes, higher commercial rents, a labour crisis, more red tape and a botched CEBA repayment plan that confused thousands of entrepreneurs across our country. All of these factors hurt our job creators and business confidence in our country.
When will the government begin taking these problems seriously?
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