44th Parl. 1st Sess.
October 17, 2023 10:00AM
- Oct/17/23 10:11:40 a.m.
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moved:
That, given that,
(i) after eight years of this Liberal government, this prime minister has added more to the national debt than all previous prime minister’s combined,
(ii) a half-trillion dollars of inflationary deficits has directly led to 40-year inflation highs,
(iii) prior to budget 2023, the Minister of Finance said, “What Canadians want right now is for inflation to come down and for interest rates to fall […] and that is one of our primary goals in this year’s budget: not to pour fuel on the fire of inflation," and then proceed to usher in $60 billion in new spending,
(iv) in order to combat inflation, the Bank of Canada has been forced to increase interest rates 10 times in just 19 months,
(v) interest rate increases have increased mortgage payments, and since this prime minister took office, monthly mortgage payments have increased 150% and now cost $3,500 on a typical family home,
(vi) the Liberal-NDP government must exercise fiscal discipline, end their inflation driving deficits so that interest rates can be lowered,
in order to avoid a mortgage default crisis, as warned by the International Monetary Fund, and to ensure Canadians do not lose their homes, the House call on the government to introduce a fiscal plan that includes a pathway back to balanced budgets, in order to decrease inflation and interest rates, and to introduce this in the House of Commons prior to the Bank of Canada’s next policy interest rate decision on October 25, 2023.
He said: Mr. Speaker, I want to begin by saying that I will be sharing my time with the hon. member for Tobique—Mactaquac.
Inflation is the cost of the spending that the government said would be free. We know that the Liberal-NDP government promised a utopia and it said that it would deliver results for free. It said that the cost of this spending would never hit Canadians because the budget would balance itself. It also suggested that because interest rates were so low, the government could magically keep increasing spending faster than the cost of living and the population grew, without any consequences.
Today, after eight years of this government and this Liberal-NDP Prime Minister, it is time to pay the bills. Canadians are seeing that reality in their mortgage payments, which have more than doubled, increasing by an average of 150%.
I talked to a worker in British Columbia who is now spending $7,500 a month on mortgage payments. I repeat: $7,500 a month. He is a middle-class worker with three kids. Of that amount, $4,000 is just for interest, not even to pay down the principal. This worker's family is losing nearly $50,000 a year in interest alone on their mortgage. It is an impossible situation for the average family, but it is the reality after eight years of this Prime Minister.
Ironically, this is the same Prime Minister who promised to help the middle class and those working hard to join it. He no longer says much about the so-called middle class, does he? We never hear him talk about the middle class. It has been forgotten, because he does not want to remind anyone of the suffering his policies have caused this so-called middle class. We now have middle-class Canadians who are homeless. Yes, it is true that, unfortunately, homelessness has always existed in all countries, including Canada. However, we have not seen homelessness amongst middle-class Canadians since the Great Depression. Now, it is becoming more and more common.
Across the country, we find people like nurses and carpenters living in their cars because mortgage payments went up so much, which also pushed up the cost of rent. The Prime Minister promised to bring down the cost of housing eight years ago, but since then, the cost has doubled. Rents have doubled, mortgage payments have doubled, and the down payment required to buy a home has doubled. In fact, when I was the minister responsible for housing, it cost half of what it costs today to pay the rent, the mortgage and the down payment.
The government's decisions have consequences. The government caused the amount of money in the economy to grow by $600 billion, increasing from $1.8 trillion to $2.4 trillion. This 32% increase meant the money supply grew eight times faster than real economic growth. In other words, the money to buy stuff grew eight times faster than the stuff money buys. This is why we have inflation.
The Bank of Canada has to respond by raising interest rates, again hitting the same people who are struggling to buy food and pay their rent or mortgage.
What is the government doing? It is still forcing the Bank of Canada to keep interest rates high. According to former finance minister John Manley, the government is stepping on the inflationary gas pedal by running deficits, which is forcing the Bank of Canada to slam on the brakes by raising interest rates. One might have expected the government to try to rein in deficits and work toward balancing the budget, but it did the opposite.
Six months ago, the government said it wanted to balance the budget by 2028. When budget time came, it suddenly changed its mind and said it would never balance the budget.
Last week, the Parliamentary Budget Officer told us that the deficit is 15% higher than the government promised in its budget. Things are completely out of control, and Canadians are paying the price, not to mention the price our children will have to pay in the future.
That is why we put forward common-sense solutions, including a “dollar-for-dollar” law, which would force the government to find a dollar's worth of savings for every new dollar spent, and the elimination of wasteful spending on things like the ArriveCAN app, the Canada Infrastructure Bank and other ideas that have jacked up the cost of government.
The goal should be to balance the budget in order to bring down interest rates and tame inflation so Canadians can keep their homes and feed their families. That is common sense.
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- Oct/17/23 10:39:42 a.m.
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Mr. Speaker, inflation is caused by a variety of factors. Some people may include government spending in there, but the cost of housing is also part of it. According the Canada Mortgage and Housing Corporation, in Quebec alone, an estimated 1.6 million housing units will need to be built by 2030 to adequately accommodate all the people who are currently living in Quebec and those who will move there.
However, according to the most optimistic forecasts, only 500,000 housing units will be built by 2030 in Quebec, driving up rental costs by 102%. The Conservative Party of Canada supports population growth. I would like my colleague to explain how eliminating the federal deficit will solve the housing crisis and, by extension, address rising costs and inflation.
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- Oct/17/23 11:13:17 a.m.
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Mr. Speaker, I want to begin by saying that I will be sharing my time with my hon. colleague from Mirabel.
In 2015, something remarkable happened in Canadian politics. At the time, the Liberals were in third place in the polls. At one point, the current Prime Minister made an extraordinary statement, something that people did not expect at all. He basically said that the Liberals were going to run deficits and that they liked doing that. He said that interest rates were low and the country is like a business, so, in those circumstances, we needed to invest in the economy. People looked at him dumbfounded and wondered what this was all about. At the time, I said that it was the first time in 40 years that a politician had said that he was going to run deficits and that he liked doing so. One thing we can say is that he really does like running deficits, because he has run up some big ones.
At the time, his premise, as economists would say, was that the interest rates were low and we needed to invest in the economy. What does that look like now? Interest rates have gone up 10 times since the pandemic ended. The rate is now 5%. I am no math whiz, but that means that interest rates are quite high now.
The money he is spending is not for investments, not at all, it is for current expenditures. Often, he spends frivolously. He has lost control. He is a compulsive spender. He likes that. He hands out money left and right. When he talks about spending he gets as excited as a kid on Christmas morning.
Let us look at where things stand today. There are current expenditures that are outside of his jurisdiction. He has become friends with the NDP. The NDP are not compulsive spenders; they are master spenders. They like that. They watch movies, they picture themselves spending, they imagine people spending and it is all amazing.
What happened is that the Liberals and the NDP started talking. The NDP said everyone needed dental insurance. However, that falls under Quebec's jurisdiction, but that was okay, the federal government was going to take care of it for Quebec. The Liberals then got to work to bring in dental insurance. I went to my dentist to get a tooth fixed, and he was in quite a state. I asked him what was the matter and he said he could not believe what was going on with dental insurance, that he had been thinking about it for two months. He said it made no sense. This spending is completely ridiculous. At one point, someone—I am not sure if it was the Parliamentary Budget Officer—talked about the excessive spending, saying that it was crazy, that it should never have been done that way and it should have been left to the experts, namely Quebec and the provinces.
We are also talking about $82.8 billion in subsidies for oil companies, which are making $200 billion a year in profits. No one was shocked, but we all should be. We are talking about $82.8 billion in subsidies until 2035 to those poor folks who are already making $200 billion a year in profits. Some might call that insanity, but that is what the Liberals are doing.
They bought a pipeline for fun. They say that they do not like oil, but that they are going to export oil like pigs and put the proceeds into the energy transition. I tried to explain it to my golden retriever, and he was beside himself. How can we explain that to people? The Liberals seem to believe it, to the tune of $30 billion and counting.
Then there is the inefficiency of the public service. A passport costs four times more to produce than a driver's licence. Look at health care costs. The few times the Liberals have administered health care, in veterans' hospitals, for example, it cost twice as much as in the public sector in Quebec and the provinces. That is outrageous. Processing an EI application costs 2.5 times more than processing a welfare application in Quebec. Why is that? It is because Ottawa has money from the fiscal imbalance. When it has that kind of money, it does not look at how much it is spending. The carpets are thicker in Ottawa than elsewhere, and the government is having fun.
We are telling them to rein it in. When the Liberals announced the 2023 deficit in November 2022, it was $30 billion. Now it is $46.5 billion. It keeps going up.
We are not necessarily in an economic crisis. We are at or near full employment, and according to Keynesianism, deficits should only be run in difficult situations like the pandemic or recessions. Right now, there should be few deficits, if any. Most importantly, we should have a plan to restore a balanced budget. That is the responsible thing to do. A plan might force the government to be more conscientious about its spending. It would compel the government to tell people that it is going to try to do better, manage its finances more effectively, and take steps to ensure that an objective set out in the plan is met.
As Émile de Girardin said, governing means planning ahead. This government has a hard time planning ahead. It is always reactive, but very rarely proactive. The important thing is that the plan would send a signal to the market that the government wants to get on the path to a balanced budget. This could relieve inflationary tensions.
The Conservatives want to see that plan by October 25. Why October 25? Maybe they have a party or something on the agenda. They picked October 25, but nobody knows why. Why not ask to see the plan alongside the fiscal update in November? That would make sense.
The Conservatives pull things out of thin air, like this date, October 25. Then they make things sound deceptively simple. They latch onto these mantras. They talk about inflation and convince themselves that they can make it go away just by talking about it. Do they have any actual proposals? No they do not. They have this kind of mystical approach to public finance. They are sitting there with a Ouija board hoping for answers. They are very good at whining and complaining, but they have no concrete proposals. When one of them does come up with a concrete proposal, the others turn a deaf ear. They do not know what to make of it. “What are you talking about?” they say. They decided to complain and talk about the cost of living, the cost of turkeys and carrots. If ever they come to power, those problems will miraculously disappear.
They have no concrete proposals for helping seniors. When the grocery CEOs paraded before the committee, the Bloc Québécois offered up some proposals. Our agriculture critic came armed with a whole list of them. The Conservatives complained that it was pointless and useless. Given that they are the ones talking about the cost of living, they should have some ideas about how to address it. They say the cost of living is appalling. They are right, but do they have any concrete proposals for fixing that? The answer is no.
They are also talking about the housing shortage. Stephen Harper did nothing during his nine years in office. The current situation is one of the consequences of the Conservatives' inaction. The Conservatives are not making any proposals for fixing this issue either. My colleague, the member for Longueuil—Saint-Hubert, spoke about the $900 million. The federal government needs to give this $900 million to the Quebec government so it can build housing. Do we ever hear a Conservative saying that the $900 million should be paid out? The answer is no.
Then, they had an idea, which is always cause for concern. Their idea is to force municipalities to increase housing construction by 15% every year or face cutbacks in subsidies. Where does that 15% come from? They took out a Ouija board and that is the number that came out. I have spoken with municipal officials in my riding. There is a moratorium in one municipality because of a water shortage. I told the officials in that municipality that they would be forced to increase housing construction by 15% if the Conservatives were to be elected. They said that they are running out of water, and I replied that the Conservatives would cut back their subsidies. They said that if that were to happen, they would run out of water altogether. What do the Conservatives not understand?
They do not talk about the labour shortage either, but that does not matter. Oil prices are high, and renewable energy is a competitor. That is what will save us from spiralling fossil fuel prices. Do the Conservatives ever talk about that? They do, actually; they say that it is futile and pointless. Seriously? In light of climate change, it is a vital solution that must be taken into consideration.
As Talleyrand famously said, “All that is exaggerated becomes insignificant.” I think the Conservatives tend to exaggerate quite a bit when it comes to inflation. My colleagues may extrapolate from there.
I taught economics for 20 years. When discussing the causes of inflation, I used to spend four or five hours on the subject. My students would get sick of listening to me go on and on about inflation, but it is an important subject. I would explain all the different causes, including deficits. However, we have to be careful because it is not as simple as that.
When someone says that deficits equal inflation, we need to be careful. Incidentally, inflation is happening around the world, so the deficit is not entirely responsible for inflation. Of course eliminating the deficit would help, but it is not a magic solution. At some point, the Conservatives are going to have to wake up, because anyone who keeps telling lies is going to become insignificant.
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- Oct/17/23 11:43:31 a.m.
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Mr. Speaker, I rise today to speak to a Conservative motion that is not what it pretends to be, presented by a Conservative leader who is not who he says he is. What I mean by that is that this motion pretends to be an analysis of the causes of inflation in Canada, except that it only includes one factor, which is government spending and government deficits. Yes, there is a deficit. Yes, there has been government spending. Yes, some of that may have contributed in some ways to inflation. However, that is far from the whole story. Canada has had deficits at the federal level in periods when there has not been inflation, or at least not inflation of this significant type that we are living with today. It has been inflation within the target zone. The seven consecutive large deficits that the Harper Conservatives ran when they were in power did not coincide with the kind of significant inflation we have seen.
Obviously, there are other factors at work here. It is dishonest to pretend that only government deficit is what is driving inflation, or even that it is the major factor in what is driving inflation. There are supply chain constraints that arose through the pandemic, a reordering of purchasing, first towards goods and then back towards services. There are a number of strictly market forces that we could talk about. Chief among those is the role that corporate greed plays. It is a glaring deficiency of this motion, and not just this motion but also the Conservatives' analysis generally, that they do not talk at all about the role that corporate greed has been playing in fuelling inflation.
What do I mean by that? When we look at corporate profits, for instance, in the grocery sector, at the very same time that Canadians are struggling, and we are hearing more and more about Canadians having to choose between paying rent and paying for groceries, we have seen massive increases in the profit margins of Canada's largest grocery retailers. That is not a function of their simply passing on costs from the carbon tax, supply chains or whatever else to their consumers. If they were just passing on the cost, their profits would not be increasing. The fact of the matter is that the profit is going up because they are charging Canadians more than the additional costs they are facing right now. That is important to talk about.
When it comes to the Liberal government, corporate greed is just as much missing from their analysis of what is driving inflation as it is from the Conservatives', and they are doing just as little about it, which is certainly a frustration of ours in the New Democratic Party. The Liberal government called the big grocery retailers to Ottawa to give them a slap on the wrist, ask them to do better and ask them to not reduce but stabilize prices, which is to say, to consolidate the gains they have made by raising prices unfairly over the last number of years so Canadians have to continue to pay that going forward, rather than talking about ways to try to make food more affordable than it currently is.
We cannot look to the Conservatives for solutions on food prices, because they have nothing to say other than to reduce the carbon tax, as if those very same grocery retailers who have shown that they are quite happy to raise prices to eat up whatever extra disposable income Canadians get would not just turn around and do that very same thing. Conservatives are silent when it comes to corporate greed in the oil and gas sector, which has been driving inflation for Canadians. When we talk about the role that energy costs play in driving inflation, it is important to note that the price increases on energy far exceed the increase in the carbon tax. That is why, from 2019 to 2022, oil and gas companies in Canada saw an increase in profits of 1,000%. Where is the analysis from the Conservatives on what that does to grocery prices?
If oil and gas companies are going to gouge the farmer who grows the food, gouge the processor who makes the food and gouge the shipper who ships the food, Canadians are going to get gouged at the grocery store, notwithstanding anything that happens in this place or the level of tax. They are going to get gouged based simply on the outsized increases in oil and gas prices that oil and gas companies are using to pay larger dividends to their shareholders and bigger cheques to their CEOs.
We have to talk about that if we are going to get real about the challenges Canadians are facing. We have a Conservative Party that talks about very little else other than inflation and about the housing sector. Canadians are experiencing pain, but to pretend that somehow deficits derived from payments so kids can get their teeth fixed is causing inflation in the housing market is either stupid or dishonest. The fact of the matter is that there is a ton of private capital in the Canadian real estate market, domestic capital that is bidding against Canadians when they are trying to buy a family home, in order to turn that house into a long-term investment. That is a big part of the story of what is going on.
Conservatives talk about how we need lower taxes in spite of the fact that now, 1% of Canadians own 25% of the wealth in this country, while fully 40% of Canadians have to live sharing only 1% of the wealth being created in this country. The 1% that owns the 25% is a big part of the problem in the housing market. They have a lot of extra cash, which they did not get from government and which they are investing back into the housing market to buy up more housing and make more money off the backs of Canadians who are already strapped.
That is not to knock business. Small and medium-sized businesses are an important driver of economic growth in this country. They are important employers. They help make the world go around, and there is a lot of room for legitimate business. We know that a lot of small and medium-sized enterprises are actually struggling right now. They are not the ones that are the problem, so let us not conflate our criticism of big corporations and big capital with the small business owner who is providing services in their community and trying to break even in a very difficult time.
I heard earlier from a Conservative MP, “Well, don't go after the wage payer if you want to help the wage earner.” When we talk about the oil and gas industry, look at what happened the day after the Alberta election. A big oil and gas company laid off 1,500 workers, despite the fact that it is extracting more oil than ever and making more money than ever. The fact is that more and more employment in the oil and gas industry has been decoupled, through technological advances and other things that do help with productivity growth, from the employment of Canadians. That oil and gas company timed the announcement of those layoffs in order to help its political friends in the Conservative Party in Alberta, to spare them the embarrassment of bringing that fact to light during an election.
That is why this motion is not what it pretends to be. Furthermore, as I said earlier, it has been presented by a Conservative leader who is not who he pretends to be. He talks about the housing crisis. In fact, earlier in his speech on this very motion, he took credit, naming himself as the minister who was responsible for housing in the Harper government. This was the government that lost 800,000 affordable units during its tenure. It was the government that, when operating grants to create affordable rents were set to expire because they were tied to 40- or 50-year mortgages signed in the sixties, seventies and eighties in order to make rent more affordable, took the decision not to continue providing that operating grant money but to let it drop.
That is why we are seeing places like Lions Place on Portage Avenue in Winnipeg get sold off because, without the operating subsidies, they cannot continue to provide the deeply affordable units that they were providing. What happened there? A big corporate landlord swooped in. It is going to superficially renovate the building, kick out the existing tenants and start charging a lot more rent for the people who can afford to move in. I do not begrudge those folks the housing, because we know that no matter where one is in the housing spectrum, there is a need. We do not have enough supply of any of those kinds of housing.
I will not begrudge Canadians' taking the opportunity to find a home they can afford, but it is no excuse for a government that is not willing to do what it takes to make sure that those people who need those deeply affordable units have a place to go. That is where we need a federal government that is willing to take responsibility for that. I am sorry, but we have not seen that from the government. We are not building enough deeply affordable and affordable units in this country. We are simply not. If we leave it to the market, it will never get done. As a developer at the finance committee said yesterday, they are never going to build affordable housing. It is not their job. Their job is to build housing that they can make a buck on, and they are not going to make a buck if they undercharge on the rent.
We know that. That is why the federal government for decades made serious repeated, regular and predictable offerings in the social and affordable housing space for a generation. That is why, during that generation and for a little while after, we did not have the kind of housing crisis we currently have. The problem is that we have a government that is focused too much on simply effecting market solutions in the very market that let us down and that said it would not fix the problem.
If we look to the Conservatives, how are they different? They are not, because they too only offer solutions predicated upon the market. It is not that we do not also need market solutions, but if we focus too much and only on those market solutions, we are never going to get to where we need to be. We have a Conservative leader who wants to talk about housing and says that he has the answer, but who, just like the government, is overly focused on market mechanisms instead of the kind of non-market housing that we need and used to have in the past, in the period when Canada was not facing this kind of housing crisis.
He is not who he pretends to be. He says that he wants workers to have powerful paycheques. I agree; I want workers to have powerful paycheques. That is why when workers are on strike, I am out on the picket lines with them, supporting them to bargain for better wages, working conditions and health and safety standards in their workplace. I have never run into that guy on a picket line. I have never seen a picture of him on a picket line. I have never seen him support picketing workers with a tweet, a post or anything. What I have watched him do is vote with the Liberal government on back-to-work legislation to prematurely end strikes on terms that are favourable to the employer, so do not tell me that this guy has the backs of workers.
We watched as he sat at the cabinet table and raised the age of retirement from 65 to 67, denying Canadian seniors their old age supplement for a further two years. Why was that done? It was to keep them in the workforce. That is not having the backs of Canadian workers who have worked their whole life in order to be able to enjoy their retirement. Anyone who has had a member of their family fall ill with cancer in their sixties knows how precious those two years can be and what a difference it can make in their life and that of their family in benefiting from some of the things they worked hard to build during their life. Those two years are not nothing.
I have watched the Conservative leader bring three opposition day motions in the last five months. He has put them in his name. He has given the lead speeches for them. I watched a special debate about the allegations that the Government of India had killed a Canadian on Canadian soil as a result of his political beliefs and activity. I watched as just about the whole Conservative caucus, except for its House leader, was silent. I watched a very intense protest and counterprotest on the rights of children to be safe and to make some of their own judgments about what is safe or not in their home. I watched as the Conservative leader told his members not to go, not to speak and not to post.
This is the apparent champion of freedom of speech, but just not for his caucus, I guess. I watch as Conservative MPs rehash the same member's statement over and over again, clearly formulated out of the talking points of their leader, who says that he wants people to say what they will. I want to know why, if the Conservative leader does not trust Conservative MPs to speak for him, Canadians should trust Conservative MPs to speak for them in this place. I watched when the Conservative leader was a member of the Harper team that pioneered the electoral tactic of telling its candidates they were not allowed to go to local debates, speak their own mind and offer their own position. Perhaps he is worried that if they speak too much, they will reveal that he is not who he says he is.
I noticed earlier that the Conservative MP for Tobique—Mactaquac got up and said that he never supported a carbon tax. Maybe if he had read his platform in preparation for debate in the last election, he would have noticed there was a carbon price in that platform. Maybe the Conservative leader does not want his MPs talking too much in this place or elsewhere because they would expose the fact that what he is saying now is not what they have said in the past and is not what they will do in the future.
I heard the member say that we cannot support wage earners without supporting wage payers in respect of the oil and gas industry. As I said earlier, the wage payers in the oil and gas industry are making more money than they have ever made before and are laying off workers, so I really do not think that is an example we can take to heart.
This motion calls for a financial plan with a path back to a balanced budget, which is fair enough. I don't think that is a bad thing. Perhaps we will see something like that in the fall economic statement, but I will not hold my breath. We listen to this guy talk about the incompetence of the government, and there are some very compelling arguments on that front. We may not make all the same arguments, but we certainly have our own. Then he wants Canadians to believe it is plausible for them to come up with a plan to balance the budget in a week's time. Come on. It is not serious, and fundamentally, the Conservative leader is not serious.
This motion is not serious either, because it does not get to the bottom of what is driving inflation in Canada. It just singles out one thing that incidentally is to his electoral advantage to have people believe and leaves out all the ways he will help the corporate players that are driving inflation in Canadians' household budgets. He does not want Canadians thinking about that, because then they would know those problems will persist.
He likes to quote a former Liberal minister, John Manley, which is curious because we have seen him be very disparaging of anyone with any connection to the Liberal Party. I understand the impulse, but I find it passing strange that a long-time Conservative and strong public servant of this country, David Johnston, could have his character assassinated by the leader of the official opposition when he happened to not necessarily agree with everything the Conservative leader thought. Then he is willing to turn around and hold up a former Liberal minister, whose advice I never took very seriously but who is now suddenly an authority for the Conservative caucus.
It is the surest sign of despotic tendencies in a political leader when they are willing to disparage and engage in character assassination, even of their own folks who come out of their own political movement, for the simple cry of disagreeing with the leader and then hold up people they would otherwise criticize as authorities when they agree with them. To do that in a context where he has shown he is quite happy to silence his own people in order to make sure they do not expose some of the web he is weaving and the wool he is pulling over Canadians' eyes is another sure sign.
It is just like when it comes to the opportunity my private member's motion offers to Conservatives to curtail the powers of the Prime Minister to unilaterally prorogue this place and dissolve this chamber, providing more political accountability for that. One would think the Conservative leader would be interested in putting some meaningful constraints on the gatekeeping powers of the Prime Minister, but he is not. The Conservatives were first out of the gate to say they would not support that motion, and it is because this leader wants those powers for himself, not because he has an objection to the gatekeeping powers of the Prime Minister's Office.
Those are just some of the reasons the Conservative leader is not who he says he is, just as this motion is not what it says it is, and that is why the New Democrats will be voting against it.
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- Oct/17/23 12:37:57 p.m.
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Madam Speaker, I know that before this member, the member for King—Vaughan made the comment that only Conservatives know how to bring in a balanced budget. I am assuming this member thinks the same thing.
An hon. member: That's right.
Mr. Mark Gerretsen: Madam Speaker, she just yelled that I am right.
The unfortunate thing for her is that no Conservative has ever done it, not in Brian Mulroney's time and not in Stephen Harper's time. Let me correct that record. It is true that Stephen Harper had two surpluses in the beginning, but those came off the heels of Paul Martin's budgets. The only prime ministers since 1970 to actually run a surplus, a balance or have no deficit have been Jean Chrétien and Paul Martin. There is absolutely no historical record that would suggest that Conservatives actually have the know-how to do that.
Could the member please inform the House as to exactly how Conservatives would do that, and without the rhetoric of bringing down interest rates to lower inflation?
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- Oct/17/23 12:39:03 p.m.
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Madam Speaker, while the member was asking his question, I was looking for the Liberals' plan to balance the budget or how many times they have done so. I obviously could not find anything, and I will remind the member that it was the Prime Minister who thought budgets would balance themselves.
The Liberals were left with a surplus when they formed government in 2015, and they withered that away. It was the Liberal-NDP government that said it would not run deficits of more than $10 billion. Now we are sitting at half a trillion dollars in deficit, which drove up interest rates, and now we are in this looming crisis.
The government needs to get its deficit under control so that Canadians do not lose their homes.
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- Oct/17/23 1:08:46 p.m.
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Madam Speaker, there were many questions in there and I could spend a lot of time responding to them. She first mentioned our deficit. I do want to mention that our deficit is down from a projected 1.5% of GDP last year to 1.4% this year. I know that the Deputy Prime Minister and Minister of Finance is going to give a fall economic statement, so we will get the latest numbers some time very shortly.
The hon. member ended off with a question on old age security. When we were first elected, we ensured that we reduced the retirement age to 65, so Canadians could have access to the old age security and GIS at that age. That was a huge benefit for our seniors. We have also increased GIS. We have also increased, by 10%, the OAS for those 75 and older.
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- Oct/17/23 1:12:47 p.m.
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Madam Speaker, I will be splitting my time with the hon. member for Louis-Saint-Laurent.
It is a pleasure to rise in the House today to speak to today's opposition day motion, because after eight years of the Liberal-NDP government and the Prime Minister, Canadians are hurting. The Canadian dream that my parents came to this country for is starting to slip away. Life is unaffordable.
Rent has doubled. Housing costs have doubled. The amount needed for a down payment has doubled. Mortgage payments have doubled. They have risen over 150%. Why? It is all because of the Liberal-NDP government's inflationary spending and fiscal mismanagement, which have been continuously fuelling the inflationary fire.
Inflation is nearly double where it should be, and Canadians are now paying more for heating, eating and housing. Canada's federal debt for this fiscal year is projected to reach $1.22 trillion. If we do the math, we are looking at nearly $81,000 per household in Canada. The Prime Minister is simply not worth the cost.
The Prime Minister said, as I am sure many members remember, that deficits were supposed to be temporary, tiny deficits of not more than $10 billion. He said he would only run modest deficits, but he broke that promise. He then promised to return to a balanced budget in 2019, but he broke that promise as well. Now the Prime Minister has broken the banks of Canadians.
To be perfectly clear, the Prime Minister and his Liberal-NDP government have added more national debt than all previous prime ministers combined. The current finance minister acknowledged that one of her goals was not to pour fuel on this inflationary fire, but she continues to spend, spend and spend. All this inflationary spending is causing a domino effect.
Mismanaged federal budgets, like budget 2023, which is adding an additional $60 billion in new spending, are driving up our deficit. Deficits are fuelling inflation, and inflation is causing interest rates to rise. This cannot be argued because we have seen the Bank of Canada in action. The Bank of Canada has raised interest rates 10 times in the last 19 months. Even former Liberal finance minister John Manley said, per the National Post, “Trudeau's deficits press on the inflationary gas pedal, which forces the Bank of Canada to press harder on the brakes”—
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- Oct/17/23 1:33:07 p.m.
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Madam Speaker, I want to congratulate my colleague from Winnipeg North for the victory of his daughter, who was elected two weeks ago in the provincial election.
Speaking of winning elections, let me remind him that he won in 2015. At the heart of his commitment in 2015 was a zero deficit by 2019. I know the member, and he knows this story very well. I am quite sure he is not very proud to be part of a government that, in the last eight years, has never brought the budget to a zero deficit. I hope that this time, he will listen to us.
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- Oct/17/23 2:27:03 p.m.
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Mr. Speaker, the Leader of the Opposition is proposing to cut spending. The reality is that we have the lowest deficit in the G7, we have the best debt-to-GDP ratio in the G7 and we have preserved our AAA credit rating. We are fiscally responsible, as we support people with things like the grocery rebate, with investments that are bringing down inflation and by working with the different grocery chains.
The reality is that Canadians have a right to know which programs he would be cutting. Would he be cutting child care for families? Would he be cutting dental care for kids? Would he be cutting pensions for seniors? He has campaigned against all three of those measures for Canadians.
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- Oct/17/23 2:37:32 p.m.
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Mr. Speaker, I would remind my colleague opposite that Canada continues to have the lowest deficit among all G7 countries. I would also advise her, in case she missed the news this morning, that Statistics Canada announced inflation has come down in Canada. That is because our plan is working.
However, we know that Canadians still need support, which is why, before this House at this very moment, we have legislation that would help to reduce grocery store prices for Canadians. Why are the Conservatives playing partisan games with the interests of Canadians and of the middle class?
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- Oct/17/23 2:38:12 p.m.
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Mr. Speaker, after eight years of the NDP-Liberal government, the federal deficit is projected to exceed $46 billion this year according to the independent budget officer. This spending is driving up interest rates and mortgage costs to the point where people are worried they will not be able to afford to keep a roof over their head.
We know the Prime Minister is not worth the cost, so when will he finally stop his inflationary spending and reduce the deficit so that Canadians can afford to keep their homes?
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- Oct/17/23 2:40:55 p.m.
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Mr. Speaker, after eight years under this Prime Minister, the situation in Canada continues to deteriorate. That is what the Parliamentary Budget Officer says. It is hard to believe that things could get worse, but they can. Spending and the deficit are even higher than projected. That is nothing new with this government, which only knows how to do one thing: waste taxpayers' money.
Will the government finally admit that the budget will not balance itself? Will it be responsible and stop this inflationary deficit?
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- Oct/17/23 2:51:55 p.m.
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Mr. Speaker, after years years of irresponsible Liberal governance, inflation rates are rising, and so are mortgage rates.
However, let us remember that almost a year ago today, the Minister of Finance very proudly said that her government would balance the budget in 2028.
Six months ago, when the budget was tabled, that promise was scrapped. It was just not kept. Just last week, the Parliamentary Budget Officer determined that the next deficit will be 16% higher than expected.
Are the Liberals aware that their completely irresponsible management is hurting all Canadians?
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- Oct/17/23 2:53:15 p.m.
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Mr. Speaker, that is precisely the problem. This time last year, they said they were going to eliminate the deficit. That is not true at all. That is why we are very skeptical when they announce such things.
Anxiety is a growing reality among young Canadians. Today's Journal de Québec and Journal de Montréal report that 61% of young people fear they will never be homeowners. Claude Pinard, the head of Centraide of Greater Montreal, has said that many young people are realizing that they will never be able to buy a home, so they are giving up on their dream.
To be young and have your dreams crushed is very un-Canadian. Will this government finally understand that in order to curb inflation, the government must at the very least control its spending?
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- Oct/17/23 3:00:36 p.m.
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Mr. Speaker, the Liberal minister is talking about search and rescue when Canadians cannot put food on their tables.
Melody Horton of Bridgewater had to sell her dream home because of the increase in her mortgage costs. She does not agree with these Liberals that they have never had it so good. The new projected deficit of $46 billion for this year means higher costs and higher monthly payments for Melody and for all Canadians, including that Liberal minister's constituents.
The Prime Minister is not worth the cost. When will the Prime Minister stop harming Canadians with his inflationary deficits and balance a budget to lower costs on Canadians?
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- Oct/17/23 3:55:43 p.m.
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Mr. Speaker, I left off talking about the importance of the government, and ultimately the Liberal Party, being somewhere between the two prisms that we see in the House. As I said, the Conservative opposition day motion is not binding on the government. The opposition party has not put forward any detailed plans of what exactly it would cut in terms of program spending. I think it is important, and it is incumbent upon the government to find that fiscal pathway.
It has been mentioned in the House, both during question period and indeed during this debate, that Canada has the lowest deficit in the G7. We also have the lowest debt-to-GDP ratio in the G7. We have an AAA credit rating. Those things are important, but they are never recognized on the other side of the House.
Can we do more? Absolutely. I am proud of the work that the President of the Treasury Board has done in terms of signalling a program review to look at departmental savings. I think that is a great start, and members know that part of what I talk about a lot in the House is non-cost measures. I am evangelical in terms of reducing red tape, and I think that there is more work, respectfully, that the government can do on that front. However, it is incumbent upon all members of Parliament to actually be providing reasonable solutions, ways that we can do that. I will be presenting a private member's bill tomorrow, in which I will be calling on the government to adopt, either in the fall economic statement or in budget 2024, reduction of the regulatory tape around approvals for products that matter for farmers. I will have more to say about that. There is a lot we can do, but at the same time, we have to walk a careful balance because Canadians are relying on the programs that we have.
The point I want to make before I give way to my hon. colleagues and engage in some great debate questions is on the assumption of getting back to balance tomorrow, which I think is a laudable goal and something we should be working towards. The assumption is that if we did that tomorrow, all of a sudden interest rates would drop precipitously. I do not think that is going to happen. With respect, I think that it is a bit immature or disingenuous for the opposition party to suggest that interest rates, tomorrow, would go from 5.5%-plus all the way down, back to normal rates. That is not going to happen, and there are a lot of global factors that play into that.
As I have said, I think we could actually welcome a very mature debate about monetary policy and how, of course, the Bank of Canada is working to do its job. However, there are other factors that are global in nature in the way that our economy actually works right now and that are fighting against our monetary policy. There are global conflicts that we have talked about, such as the war in Ukraine. There is a new war between Israel and Hamas. There is climate change, and there are demographic challenges and supply challenges. These challenges are leading to increasing costs such that the Bank of Canada, notwithstanding its work, is going to struggle to be able bring down interest rates.
I will leave it at that, and I look forward to taking questions from my hon. colleagues.
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- Oct/17/23 5:28:13 p.m.
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Mr. Speaker, I thank my NDP colleague for his intervention.
I will continue to read from the written motion, which is an official House of Commons document. If my colleague would like to have the full version, he can ask the table clerks, who are very helpful.
. . . inflation driving deficits so that interest rates can be lowered, in order to avoid a mortgage default crisis, as warned by the International Monetary Fund, and to ensure Canadians do not lose their homes, the House call on the government to introduce a fiscal plan that includes a pathway back to balanced budgets, in order to decrease inflation and interest rates, and to introduce this in the House of Commons prior to the Bank of Canada’s next policy interest rate decision on October 25, 2023.
Yes, the timeline is short, but this government has been in power for eight years. I hope the government members see things the way we do. We are back in the House after a week in our ridings. I have to say that everyone I met in Portneuf—Jacques-Cartier told me that they are struggling to balance their budgets, that they do not know how they are going to put food on the table and heat their homes properly. Unfortunately, in Canada, and particularly in Quebec, winter is pretty harsh. We have to heat our homes, we have to eat and, yes, we have to put gas in the car. My riding covers a low-density area, which means that people need a vehicle. There is no public transit. Unfortunately, that is the reality. We cannot bury our heads in the sand. We cannot ignore the facts. That is a reality, and we have to take it into account.
The Prime Minister stated, with a completely straight face, that budgets balance themselves. I am a father, and there are probably many parents here who have responsibilities and have to manage a budget. I have some news for the Prime Minister. I do not know whether budgets balance themselves in his ivory tower, but down here on earth, on the ground, in our homes, we have to balance our budgets. If not, we will be headed for bankruptcy, so we need to be responsible.
What is worse, at a certain point, the Liberals also said that it was time to borrow money because rates were low and they would not go up. We can see that today's reality is drastically different. Yesterday, I met with representatives of the Quebec Professional Association of Real Estate Brokers. They travelled here to Ottawa, and I met with them. I think it is important that members of Parliament meet with people to find out what is happening on the ground. I think that the government members should adopt such a practice. According to what the association representatives told me, we are going to hit a wall. It will not be long until the banks will have to start collecting house keys because people cannot pay their mortgages. That is a reality.
Today I met representatives from Pets Canada, a network of manufacturers, retailers and pet enthusiasts. Many of us have pets like cats and dogs. These pets are part of our families. Customers who buy dog or cat food are worried, because they will have to forgo buying food for their pets so that they themselves can survive. We are in Canada in 2023. I think that is important.
I will read other quotes from the Prime Minister, just for the fun of it.
“You'll forgive me if I don't think about monetary policy.” That was from August 19, 2021.
Here is another one: “We took on debt so Canadians wouldn't have to.”
However, as my colleague mentioned, it is taxpayers' money we are talking about. Governments do not make money, they simply administer the taxes collected from Canadian taxpayers.
Here is another quote from the Prime Minister, this one from 2015: “We're proposing a strong and real plan, one that invests in the middle class, so we can grow the economy, not from the top down...but from the heart outwards. That's what Canada has always done well”.
Now I want to talk about the Prime Minister's broken promises. This Prime Minister said the government would run a small deficit in 2015, tiny, temporary, no more than $10 billion. That was a broken promise. Then he said it would never go over $30 billion. Another broken promise. The Prime Minister said he would return to balanced budgets in 2019 and that this commitment was set in stone. What does he take us for? Once again, another broken promise.
As I mentioned, after eight years, the Prime Minister has added more to the debt than all of our country's prime ministers combined. This is serious. During question period yesterday, the Deputy Prime Minister again stated that Canada has the lowest deficit and the lowest debt-to-GDP ratio. I would like to ask the Deputy Prime Minister to go for a walk in the streets with me to talk to people. What will they tell her? They will tell her they are struggling to get by. There needs to be an action plan, and soon, to get the budget back into balance. It is about being responsible.
Now, on the other side of the House, they do not understand that. It is the job of the official opposition to force them to do their job and do it as quickly as possible, because it has been eight years. I hope they are not just waking up today because of the motion we moved. I hope they woke up several months ago and are working on finding a solution to balance the budget as quickly as possible.
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