44th Parl. 1st Sess.
November 21, 2023 10:00AM
Mr. Speaker, I would first like to remind the House that this is an economic statement. It is not a budget. As we know, a budget sets out the government's policies and presents the legislative, fiscal and budgetary measures required to implement them. An economic statement has a more modest purpose. It is supposed to present the evolution of the economic and fiscal situation since the last budget.
What this statement now tells us is that the deficit may change according to the government's forecasts, contrary to what the Parliamentary Budget Officer had calculated, which is worrisome. The statement outlines the government's response to these changes. There is not much there. For example, at the end of the summer, the Prime Minister asked the new President of the Treasury Board to cut $15 billion from various departments in order to balance the budget. They promised to give us an outline by mid-October. That did not happen. We were expecting to see it in the economic statement, but all they are doing is putting things off again without any concrete targets. Another objective has been missed.
What is the purpose of an economic statement? It is used to present the measures the government plans to take to deal with the emergencies that have cropped up since the last budget. There have been quite a few emergencies since the last budget. The economy has changed a great deal. There is a lot of struggling and difficulty. The economy is not doing well. Many people are affected by that. We were really expecting the minister to address the major emergencies that have come up since the last budget. Unfortunately, this is such a missed opportunity that we might wonder what the point is in having an economic statement. I will come back to that. There are several emergencies that we could have focused on that were simply not even mentioned in this statement.
I will give another example. The first chapter has to do with housing. While we are short on housing and social housing and the situation is desperate, we find out that there will be $37 million in cuts this year. For next year, not one penny more will be added to what was already presented in Bill C‑56 to get rid of the GST on social housing construction. We will have to wait two years to see the $54 million and $1 billion promised for subsequent years to tackle housing. Is that enough when we know that most of that $1 billion is money that was already announced and not spent? It is unfortunate.
A few weeks ago, we presented our requests to the minister. What we asked the government to do in the economic statement was to respond to existing emergencies, the urgent situations that we are currently facing. Take, for example, homeless people. As we know, it is starting to get cold outside. This morning, the temperature was below zero. There are people who are sleeping in tents and in the streets. It is truly awful. We are asking the government to do what Quebec did in its fall economic statement and to allocate emergency funding to immediately address homelessness. We want to set up an emergency fund to help cities and municipalities support homeless people in their area and give them the resources they need to do so. There is nothing about that in the economic statement. This is a real emergency that we are dealing with, and yet we have here a government and a minister who are ignoring the real emergencies. There was no response to that request in the economic statement.
On the housing front—and I will come back to this in more detail later—we provided the minister with ideas of how to create an acquisition fund for non-profit organizations and set up an interest-free or very low-interest loan program to stimulate the construction of social and affordable rental housing. Our program could be easily implemented and rapidly deployed without costing the government a fortune. The main measure being announced here is that builders who want to develop a real estate project will be allowed, in partnership with their financial institution, to pay only the interest on the loan and will not have to repay the capital until the building is built and sold.
While this would improve liquidity somewhat, it is not really something that was asked for by the groups that we heard at the Standing Committee on Finance, for instance. At the end of the day, we do not think it will contribute to building additional housing. Let us just say that the impact of this remains to be seen, and we do not see it in this statement.
We know that seniors are in dire straits. With the current inflation rate and what was announced this morning, the consumer price index is not as high as what we have seen over the last few months and the last few quarters, but it is still above 3%. Low-income seniors and seniors in general are struggling, and we need to restore some measure of fairness.
The government decided to increase old age security for seniors aged 75 and over. However, since then, with my friend and colleague, the member for Shefford, who is our critic for the rights of seniors, we have been saying that fairness must be restored. The increase must start at age 65. People who are struggling need this support, which will not be enough to make up for the lack of indexing to inflation or to the average wage that the program originally offered. Still, it could give seniors a little breathing room in the current inflationary environment.
The repayment of CEBA loans is another urgent situation. The Canadian Federation of Independent Business, or CFIB, chambers of commerce and many organizations representing SMEs are raising the alarm with elected officials in the House and with the government. They are asking that the deadline be extended by another year. These loans were granted during the pandemic, but after the pandemic, SMEs have had to deal with rising inflation and a difficult economic recovery. Many of them are falling further into debt. Now, the government is asking them to repay their loan or they will lose the grant portion.
According the the CFIB's numbers, approximately one in five SMEs could go bankrupt if the deadline is not extended. When we asked the minister about that, she said that it would cost too much. No serious studies were done to determine what it would cost the government, the economy as a whole and society if as many as one in five businesses went bankrupt as a result of this.
We in the Bloc Québécois are willing to bet that pushing the loan repayment deadline back one year would be much more profitable. It would strengthen the economy in the sense that it would prevent a lot of predictable bankruptcies. A few weeks ago, the Journal de Montréal published an assessment of the risk for each region. My riding, in the north of the Lanaudière region, was particularly at risk, given the minister's refusal to extend the deadline for repayment of CEBA loans by one year. That is very disappointing. We tried and tried to negotiate with the government. We could not get access to the studies it had used to make that decision because, as we understand it, there were no such studies.
In the end, the government chose to team up with its natural ally, when we could have come to an agreement in exchange for that condition, which would have greatly helped our SMEs. The government chose to turn its back on struggling SMEs. We can only conclude that the government's ally did not really care about that too much.
There are other emergencies. As I said, the purpose of the economic update is to respond to existing emergencies.
We can think of our media. Small, local and regional media, newspapers and radio stations are struggling. They are falling one after the other. The situation is catastrophic. Even the bigger media outlets are having a tough time. We do not even know if they are going to make it to Christmas or next summer. The situation is that dire. We saw the sad announcement of upcoming layoffs at Groupe TVA, with more than 500 employees affected. Even the biggest media outlets are struggling to overcome the crisis. We called for an emergency fund for the next few months at least, but that did not happen either.
Also, in order to resolve an inequity, we called for an end to fossil fuel subsidies. We are talking about tens of billions of dollars. That has not been done either, which is appalling.
Let us talk about other extremely important points. Since 2015, this government has been promising a complete overhaul of employment insurance. Once again, it has been postponed indefinitely. A year and a half ago, we were told that it was coming in the spring of 2022. After that, they said it would be no later than that fall. Now there is no mention of it, and nothing has been done. I naively wanted to believe the Liberals' promise. Let that be a lesson to me. Nothing has been done, and now they will not even dare talk about it. Shame on me for believing a Liberal promise.
When it comes to EI reform, a specific concern was also raised that once again has to do with the need to respond to emergencies. This summer, there were forest fires everywhere. That means that a lot of seasonal workers in the forestry industry were unable to accumulate enough hours to qualify for EI during the season because they could not work in the forest. We brought this to the minister's attention. This is an emergency and the government needs to be a bit flexible. The government needs to do something and to think about those workers, and yet there is nothing in the economic statement to address this emergency either.
We often asked questions in the House, and I personally drew the minister's attention to an issue that my colleague from Abitibi—Baie-James—Nunavik—Eeyou has been working on. The government announced $1 billion for a school breakfast program for children. The money was promised during the announcement, but it has yet to be delivered so that the program can be implemented. Inflation is high, and more and more children are going to school hungry. It is time for the government to pay out the money it announced. The government could have already dealt with this emergency, but this, too, was not urgent enough for the minister.
Many of my colleagues talked to me about regional infrastructure needs. Nothing more is being done. There is also the whole agriculture sector, which was hit by the flooding in some regions this summer. The produce and horticultural sectors are struggling. They are in serious trouble. Could existing programs have been adapted? The economic statement would have been the time to do that but, no, nothing was done. Once again, agriculture was not even mentioned in this statement.
There is a slightly technical detail that affects many artisanal businesses throughout our regions that could really change things. As we know, the government increased the excise tax on wine after Australian wine producers sued Canadian wine producers. Regulations on the matter are problematic. In legal texts, everything that is alcohol is called “wine”. The Bloc Québécois managed to get apple cider and mead exempted from the tax. That was a big win, and these producers are grateful.
Afterward we realized that if cider producers put a bit of pear in their drink, they have to pay the entirety of the tax. Producers of beverages made from maple alcohol also have to pay the entirety of the tax. As soon as there are a few small fruits in these drinks, producers have to pay the entire tax. It does not bother wine producers in Australia that we help our small artisans who produce these niche products. For two years we have been calling on the minister to settle this. I understand that she is busy, that she is dealing with many challenges, but at some point these are just formalities that need follow-up. This would only help better recognize the artisans without taking anything away from anyone, without frustrating anyone in Australia. It would be easy to do. This could have been implemented in the economic statement, but no, that was not done either and it is really disappointing and upsetting.
As I was saying, the government and the minister should have developed an economic statement to respond to the emergencies. I raised a few that have been brought forward by all of my colleagues here. It is not hard. How many of the emergencies we raised did the minister respond to? A big fat zero. I am referring here to a former minister I will talk about and quote. It was a former minister of Prime Minister Trudeau, the father of the actual Prime Minister. I definitely said “actual” and not “actuary”.
Speaking of actuaries, let me emphasize that the employment insurance fund surplus has doubled. Once again, workers have to pay to fill the government's coffers.
Let us come back to the urban affairs department. What is it? In the economic update, the government has chosen to create a new department, which my leader dubbed the “department of interference” because it deals with housing. It is interference, pure and simple. It is similar to what Pierre Elliott Trudeau did when he created a ministry of urban affairs. Its minister was Mr. Ouellet. That is why I am drawing attention to it.
This is a quote from a Library of Parliament research document:
Accordingly, in March 1971, Prime Minister Trudeau appointed a Minister of State for Urban Affairs, who took on responsibility not only for CMHC but also for a new Ministry of State for Urban Affairs (MSUA). Given the inescapable constitutional limitations [of interfering with provincial jurisdiction], this ministry had no program responsibilities...
Today, the government is bringing this department back. We can see where this is going. The Library of Parliament document continues as follows two paragraphs later:
This...eventually led to the downfall of Trudeau's intervention in federal-municipal relations.
A bit further on, it reads, and I quote:
In view of the Department's lack of credibility and the government's desire to cut expenditures, the MSUA was abolished on 31 March 1979.
Is that what awaits us with the creation of the new department announced in this economic update? As my colleagues have said, that is definitely what we can expect.
Let us talk about some other aspects of the economic statement. Over the past few weeks, we have been seeing a squabble play out between the Liberal government and the Conservatives in the House. The Conservative Party is all about slogans and is always pointing out problems. The Conservatives made a suggestion on housing. What is it? It involves punishing the municipalities and the provinces. The Conservatives are saying that, if the municipalities do not build 15% more housing units, then the federal government should hold back infrastructure funding. For example, this year, housing starts in Quebec decreased by half. That means that, were the Conservative Party in power, it would have cut the province's infrastructure funding by half. They are real winners, as my colleague said.
The Liberal government's response to this proposal is to use it themselves. In the statement, it is clear that they are using the same approach. In other words, they are threatening the provinces and, indirectly, the municipalities. The statement says that if they do not build enough housing, transfers will be cut off. My goodness, does the Liberal government want to go back to the Stone Age, too? I wonder.
There is one good measure involving Airbnb. The government wants to bring it in line with municipal regulations. It is going to be difficult to enforce, but there is hope. I am not simply criticizing everything. That is a good measure. As I was saying about the $15 billion in budget cuts, it was supposed to happen in October. However, the plan hatched by the government and the President of the Treasury Board is not even mentioned in the November statement. As I was also saying, we brought up a number of urgent matters, but none of them have been resolved here. There is no plan for dealing with the emergencies. Clearly, the Liberals do not understand what an emergency is.
I will say it again: Each and every one of the Bloc's demands and the urgent needs expressed by Quebeckers has been ignored. Clearly, this government, this Prime Minister and the finance minister are confusing fiscal restraint with inaction when it comes to emergencies. It is all going to cost us more in the end.
Again, the purpose of an economic update is to take stock of the economic situation since the presentation of the budget and announce solutions for the emergencies we know about. This statement does not address the many changes and does not fix anything. This is such a missed opportunity that we wonder why the government even bothered.
Thanks to the Liberals, things will get worse before they hopefully get better.
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- Nov/21/23 5:29:42 p.m.
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Mr. Speaker, inflation is affecting everyone, particularly the most vulnerable members of our society. It is really worrisome.
There is nothing in the fall economic statement to counter inflation. There is nothing to deal with it. The Liberals are just whistling past the graveyard.
The hon. member spoke about housing. Yes, the government should do more about housing. However, this year, it is making $37 million in cuts to housing. We see that on page 31 of the English version of the economic statement. It shows $37 million being subtracted. The member is talking about funding for co-operative housing. He does not need to explain to me or any member of the Bloc Québécois what co-operative housing is. There is plenty of it in Quebec. We believe in the co-op model. We are always telling the government to do more in the way of social housing, including co-operatives.
How much money is the government putting into housing co-operatives this year, in 2023-24? Zero dollars. However, the situation is urgent. How much money is the government putting into housing co-operatives next year, in 2024-25? Again, zero dollars. The situation is urgent. The situation was urgent this summer and last spring. We need to act now. Today, the government should not be making statements and commitments in principle about what it is going to do two, three, four, five or six years down the road. The situation is urgent now.
This government is truly out of touch with people's urgent needs.
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Mr. Speaker, I thank my colleague from the Standing Committee on Finance. We just spent the last week touring western Canada. We visited every region to hear from people. All the organizations, the chambers of commerce, the organizations representing SMEs are asking for the deadline to be extended by one year. It is the same in Quebec. We hear it everywhere.
When we speak with the ministers individually, most of them agree with this call. Most of them do not understand the Minister of Finance's reaction. That is what is throwing a wrench in the works. The Minister of Finance and senior civil servants are saying that it is going to be expensive.
We have been leading the charge for quite some time. We just want to be the voice of the SMEs we represent. We were ready to negotiate with the government. For example, if the government wants Bill C‑56 to pass, in exchange, we would like the government to extend the deadline by a year. With all due respect, we wish the NDP had followed our lead. I hope they keep this example in mind so that, in future negotiations, they can ask for this in exchange. It would be a big win for SMEs. It would mean 20% fewer bankruptcies, according to figures from the Canadian Federation of Independent Business. It would make a big difference.
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- Nov/21/23 5:34:08 p.m.
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Mr. Speaker, I thank my colleague for that excellent question and his kind words. It is always a pleasure to see that we can collaborate in the House. The purpose of an economic statement is to respond to emergencies. The hon. member, whom I congratulate on his excellent French, just raised an urgent matter.
This measure was adopted six months ago and needs to be implemented. People living with a disability, especially in the inflationary context we are experiencing, need to receive the help that was promised. This has to be done and the economic statement was the place to implement this measure. The statement is there to respond to emergencies and this is another emergency that has been raised. The government had the opportunity to do this, but it did not take it. The government is disconnected from the public and does not respond to any emergency. The hon. member just raised another good example.
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- Nov/21/23 5:35:59 p.m.
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Mr. Speaker, I thank my House leader for making this point again. This is basic economics. Are there any economists in the Liberal Party? Do they understand these notions? The government often gives the impression of nickel-and-diming, but by trying to save the grant part of the loan, it could cause so many bankruptcies and have such a wide-ranging impact that it could end up being more detrimental to society and the government's finances.
When we discuss this informally with ministers, most of them agree with us. The problem is with the Minister of Finance. In that regard, I want to highlight the great work by my colleague from Terrebonne, who wrote the finance minister to make her aware of this. She also reminded her that the Quebec National Assembly unanimously demanded a one-year extension of the loan repayment deadline on September 26, well before this November economic statement that the minister just presented.
Why are elected officials of all stripes in Quebec City asking for this? It is because they are just that little bit more connected to their community. They talk to their SMEs, they meet with them and they are worried about them. Like us, they are able to do the math and come to the conclusion that, even if the aim is to save a little money, there is a risk of losing a lot more in the end. Moreover, it will destabilize the economy. Really, the economic statement was the place for this kind of announcement. This is another missed opportunity, another disappointment. It is more proof that this government has grown out of touch, very out of touch, with the people and with SMEs.
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