44th Parl. 1st Sess.
November 2, 2023 10:00AM
- Nov/2/23 1:21:41 p.m.
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Madam Speaker, as always, it is a wonderful opportunity for me to speak on behalf of the residents of my riding of Davenport in the debate we have before us today. The debate is on an opposition motion, which I will read out so people who watch this will know what I am talking about. It reads: “given that the government has announced a ‘temporary, three-year pause’ to the federal carbon tax on home heating oil, the House call on the government to extend that pause to all forms of home heating.”
I do not think members will be surprised when I say that the government will not be supporting the motion, and I am very happy to explain why.
I will be sharing my time with the very hon. member for Thunder Bay—Rainy River.
Today's motion from the hon. Leader of the Opposition does not provide context on what is happening in Canada today around home heating, inflation and the federal government's aggressive plan to decarbonize and to meet both our 2030 and 2050 targets. Indeed, the way the motion is phrased, it is easy for any Canadian who is reading it to misunderstand what the federal government's actions are. In today's case, the motion is based on the misconception that all forms of home heating have the same cost to the consumer, which is not the case.
Late last week, the government took action to temporarily pause the application of the federal fuel charge to heating oil, not because it is a source of home heating but because it is the most expensive form of home heating. It is important to note that the vast majority of those who use heating oil are among the lowest-income Canadians today. We know that lower-income Canadians face particular hardship, particularly with the high cost of inflation today, and we know that there is little to no money for anything extra beyond the basic living costs. Low-income and rural residents have been trapped in a vicious cycle where they are stuck having to pay for the most expensive form of home heating, the cost of which is preventing them from investing in cleaner, more affordable forms of home heating.
I am pleased to let members know that, last week, the Prime Minister made an announcement on our new energy affordability package. I will go through some of the basics, because I think it is very relevant to the debate we are having today. The government is moving ahead with doubling the pollution price rebate, or what we call the “climate action incentive payment”, to our rural community, increasing it from 10% to 20% of the baseline amount, starting in April 2024. We know that people who live in rural communities face unique realities, and this measure will help put even more money back in the pockets of families dealing with higher energy costs because they live outside large urban cities.
The federal government is also moving ahead with a temporary, three-year pause to the federal price on pollution on deliveries of heating oil in all jurisdictions where the federal fuel charge is in effect. It is important for me to stress that this would be applied right across Canada. This pause would begin in less than two weeks. While the fuel charge is already returned to consumers through the pollution price rebate, this temporary pause would save a household that uses heating oil $250 at the current rate, on average, while the federal government works with provinces to roll out heat pumps and phase out oil for heating over the longer term.
A final part of the announcement is that the federal government has said it will work with provinces and territories to help Canadians save money over the long term by making it easier to switch to an electric heat pump to heat their home. We announced a number of measures that will be piloted first in Atlantic Canada, and we truly hope that other provinces and territories will sign on moving forward. The targeted action we are taking with our new energy affordability package will break that vicious cycle and save rural Canadians thousands of dollars a year over the long term while allowing us to continue to move as aggressively as possible towards our climate action targets and decarbonizing our economy.
The pause on the fuel charge on heating oil, in concert with our strengthened oil-to-heat-pump affordability program, will create a window of opportunity for people to make the switch to cheaper, cleaner heat. With our strengthened oil-to-heat-pump affordability program, we are partnering with provinces and territories to increase the amount of federal funding that eligible homeowners can receive for installing a heat pump, from $10,000 to $15,000, adding up to an additional $5,000 in grant funding to match provincial and territorial contributions via codelivery arrangements. This would make the average heat pump and installation free for low- to medium-income households as we continue to minimize upfront costs and make federal programs even easier to access for all households.
On average, homeowners who switch from oil to cold-climate heat pumps in order to heat and cool their homes save up to $2,500 per year on home energy bills. I think that is a very important point to keep stressing, because heating oil is one of the most polluting forms of home heat. Making this switch will not only help protect Canadians from the costs associated with climate change over the long term but also help to reduce emissions, which is what we are trying to do as we move toward our climate targets.
Make no mistake: these costs are real. As confirmed by science and research, the costs of anthropogenic climate change, which is primarily driven by carbon pollution, will be devastating. The Canadian Climate Institute concluded that climate change is already costing Canadian households billions of dollars, and that these costs are just the tip of the iceberg. In its 2020 report on climate risks and their implications for the insurance industry in Canada, the Insurance Bureau of Canada concluded that the average annual severe weather claims paid by insurers in Canada could more than double over the next 10 years, increasing from $2.1 billion a year to $5 billion a year, and must be accompanied by an increase in premiums.
These are billions of dollars in costs that will need to be borne by Canadians. That is why the government has put a price on carbon pollution since 2019 to ensure that polluting is no longer free. Putting a price on carbon pollution reduces emissions and encourages innovation. It encourages reductions across the economy while giving households and businesses the flexibility to decide when and how to make changes. It creates incentives for Canadian businesses to develop and adopt new low-carbon products, processes and services.
To ensure that the system is both effective and affordable, the bulk of proceeds from the price on carbon pollution go straight back into the pockets of Canadians in provinces where the fuel charge applies, with eight out of 10 Canadians in these provinces continuing to get more money back through the climate action incentive payments than they pay as a result of the carbon price. In provinces where the federal system applies, a family of four can now receive up to $1,500 a year under our plan. This means that our climate plan is both effective and affordable. Our new energy affordability package will make it even more so by supporting the transition to cleaner and cheaper forms of home heating.
I believe it is important to say that making it free to pollute will not save Canadians money. It will cost them money in the long run, while endangering Canadians and jeopardizing the natural environment we all depend on. There are better ways to make life more affordable for Canadians, without destroying the environment and incurring more devastating costs farther down the road. We can do so by delivering support where it is most effective and to those who need it most. This has guided our actions from day one. This includes supporting about 3.5 million families annually through the tax-free Canada child benefit, with families this year receiving up to $7,437 per child under the age of six and up to $6,275 per child aged six to 17. It includes increasing old age security benefits for seniors age 75 and older by 10% as of July 2022, which is providing more than $800 in additional support to full pensioners. It also includes reducing fees for regulated child care by 50% on average, delivering regulated child care that will cost an average of just $10-a-day by 2026.
These are the right ways to make life more affordable. Extending the fuel charge pause to sources that are far cheaper and less polluting than fuel oil, as proposed by today’s motion, is not the right way to make life affordable. I therefore call on the House to reject today’s motion, as the government continues working with its partners in all provinces and territories to explore further options to lower the cost of energy bills for all Canadians while also lowering emissions and fighting climate change.
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- Nov/2/23 1:32:05 p.m.
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Madam Speaker, I will say a couple of things. The new affordability package we announced late last week really talks about ensuring that we provide more supports to rural Canadians, because we know that transitioning is costing them more money to reduce their costs. It is also an affordability plan that makes sure we are providing supports for those who have the highest-polluting type of energy, who tend to be our most vulnerable Canadians in society, as we are transitioning and decarbonizing our economy.
What I would say about new technologies is that they would encourage more investments by companies and provinces in new technologies so that we can continue to move as aggressively as possible to decarbonize and meet our 2030 and 2050 targets.
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- Nov/2/23 1:34:11 p.m.
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Madam Speaker, it has been very disturbing to see that our oil and gas companies over the last few years, particularly during the years of the pandemic, have accumulated record profits, much of which went back to the U.S., and then have come back to Canada to ask for subsidies to decarbonize their production.
What I would say to the member is that I agree this is something we should look at. I am very disappointed with our oil and gas companies for not stepping up and doing their share.
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- Nov/2/23 1:35:22 p.m.
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Madam Speaker, this is what I would say to the hon. member. I live in downtown west Toronto. That is where my riding of Davenport is. My constituents want the federal government to keep moving as aggressively and urgently as possible to reduce our emissions to meet our targets. I think they understand that the transition costs money. I think that they are very pleased with our plan for a price on pollution and that anything else we can do to continue to provide support to Canadians as we transition to meet our 2030 and 2050 targets would be supported.
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- Nov/2/23 2:05:02 p.m.
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Mr. Speaker, Canada has always been a country that has needed immigrants to grow our economy. They enrich our country from coast to coast to coast. Our diversity has become our strength, with Canada continuing to be ranked as one of the top countries in the world to live.
I am proud to let this House know that as of this week we have formally welcomed 40,000 Afghans to Canada, a promise we made and have now fulfilled. This is a huge achievement, as the rights and freedoms of the Afghan people, especially women and girls, have sadly gone backwards.
We have also made changes to our international student program to ensure that talented students who choose to study in Canada have a positive experience and that we close loopholes that have led to international students being exploited by bad actors.
I am pleased that yesterday we announced our immigration levels that reaffirmed that Canada continues to be open to newcomers, who enrich our country with their hard work and talent.
Diversity is indeed Canada's strength, and we are a better and stronger country because of the extraordinary people who choose Canada as their home.
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