44th Parl. 1st Sess.
January 31, 2024 02:00PM
Madam Speaker, I rise to speak to Bill C-59, an act to implement certain provisions of the fall economic statement and certain provisions of the 2023 budget.
The last two years have not only tested our resilience but have also set the stage for an economic transformation, one that is responsible and forward-thinking. One million more Canadians are employed now compared to when the pandemic started. This remarkable recovery is not just a number. It represents families sustaining themselves and a nation moving forward.
Our unemployment rate at 5.8% is quite low by historical standards. After peaking at 8.2% in June 2022, the inflation rate is trending downward and was at 3.4% in December 2023. Wages have consistently outpaced inflation for many months, which is a trend that speaks volumes about our economic health.
On January 24, the Bank of Canada announced it would hold the key interest rate at 5%.
Governor Tiff Macklem said:
With overall demand in the economy no longer running ahead of supply, Governing Council's discussion of monetary policy is shifting from whether our policy rate is restrictive enough to restore price stability, to how long it needs to stay at the current level.
With softer growth this year, inflation rates in most advanced economies are expected to come down slowly, reaching central bank targets in 2025. As I have been saying for a long time, we can see the possibility of interest rate reversal starting mid-2024.
At the macro level, we are on the cusp of a new era, an era defined by rapid global changes particularly in how we address climate change. Today we stand at the brink of a global economic transformation driven by the shift to a clean economy. This is not just a change; it is an unprecedented investment opportunity. The transition to renewable energy, sustainable practices and green technologies is reshaping markets worldwide and unlocking new avenues for economic growth and innovation.
By 2030, the global market for clean technologies is projected to exceed trillions of dollars, offering vast potential for countries and investors that are proactive in this space. This shift promises not only environmental benefits but also substantial economic gains, with millions of new jobs expected. Embracing this change means positioning ourselves at the forefront of a green economic revolution, attracting international investment and establishing global leadership in a rapidly evolving market. This is an opportunity we cannot afford to miss.
As we pivot toward renewable energy sources, electric vehicles and energy-efficient technologies, we are tapping into a market that is rapidly expanding globally. On renewable energy, as we look toward the next decade, the global economic potential of renewable energy is immense and transformative.
According to the International Renewable Energy Agency, renewable energy could account for around 60% of the world's power by 2030, which is up from about 25% in recent years. This shift represents an investment opportunity of up to $10 trillion by 2050.
For Canada, the prospects are equally promising. The Canadian Renewable Energy Association predicts significant growth, with renewable energy potentially contributing up to 40% of Canada's electricity by 2030. This transition, which aligns with Canada's commitment to a net-zero economy by 2050, could stimulate billions in investment and create thousands of jobs, which would position Canada as a leader in the renewable energy sector.
This transition is expected to create millions of jobs worldwide, offering diverse opportunities in sectors like manufacturing, technology and services. Moreover, investing in a clean economy positions Canada as a leader in green technology, attracting global investment and fostering economic resilience.
As we embark on this journey, we are not just safeguarding our involvement but also fuelling a dynamic, future-oriented economy. Our economic plan is not just a response to this global shift but a proactive strategy to ensure that Canadian workers and businesses are not just participants but leaders in the clean economy.
Our plan is not just a blueprint; it is already yielding tangible results. In just over three years, we have initiated more than 90 clean-growth projects worth over $40 billion, including private investments. These projects span across Canada, bringing economic growth to every region and offering quality jobs to the middle class.
The world has taken notice of Canada's potential. The OECD ranking, which places Canada third globally for foreign direct investment in the first half of 2023, is a clear indicator of our competitive advantage. We have what it takes to thrive in the 21st century's clean economies from our rich natural resources, like critical minerals, to our competency in research and innovation, to our skilled and diverse workforce.
Our stable political and economic institutions further cement our position as a prime destination for global business. Canada's clean economy jobs plan is more than a policy. It is a commitment to leveraging our unique advantages. It is about attracting investment and creating jobs across the country, ensuring that every Canadian benefits from this economic shift.
I want to highlight a cornerstone of Canada's future: our critical minerals strategy. The demand for critical minerals, essential for low-carbon technologies, is set to skyrocket. Canada, a global leader in mining, is rich in these minerals. Our mining sector, with a presence in nearly 100 countries and a market capitalization of over $500 billion, is not just an economic powerhouse; it is a testament to our sustainable and responsible approach to resource management. Our critical minerals strategy is more than just an economic plan. It is a vision for sustainable growth and innovation.
Canada is uniquely positioned with abundant resources in critical minerals like lithium, cobalt and nickel; elements essential for the clean energy transition. Our approach is twofold: sustainable extraction and global leadership in supply chains for technologies like electric vehicles and renewable energy. We are not just extracting minerals; we are building partnerships, ensuring environmental stewardship and creating high-quality jobs. This strategy is an integral part of Canada's commitment to a greener future and economic resilience.
We are leveraging our natural wealth responsibly, ensuring that Canada plays a pivotal role in the global low-carbon economy. One of our most ambitious goals is building Canada's electric vehicle battery supply chain. The next decade heralds a transformative era for electric vehicles, marking a significant shift in both global and Canadian economies. According to BloombergNEF, the electric vehicle market is projected to grow to 54 million vehicles globally by 2040, up from three million in 2020. This surge represents a potential market value of $2 trillion.
In Canada, with government commitments to ban sales of new gasoline-powered cars by 2035, the electric vehicle market is expected to expand exponentially. As per Statistics Canada, the shift could generate over $3 billion in electric vehicle sales by 2026, stimulating job creation and technological innovation.
This electrifying transition not only signals a green future but also an economic catalyst for sustainable growth. As the world moves toward electric vehicles, Canada is uniquely positioned to be a leader in this industry. Our skilled workforce and comprehensive supply chain, from mineral extraction to battery manufacturing, set us apart.
To support this growth, the federal government has secured significant investments in the electric vehicle and battery supply chain. These investments, totalling over $34 billion since 2020, are not just about economic growth, they are about securing the future for Canada's auto supply chain workers and their families.
Major projects like Volkswagen and Stellantis-LG Energy Solution in Ontario, and Northvolt in Quebec, represent a new era for Canada's electric vehicle industry.
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- Jan/31/24 6:03:55 p.m.
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Madam Speaker, related to the economic measures in this bill, it is no secret that the massive profits we are seeing in some corporate sectors and the high food price inflation Canadians are facing are directly linked. We have heard the Minister of Industry express many times in the House and out in the public that he is disappointed with grocery CEOs who have seen their profits and profit margins double since 2019.
I would just like to know when the Liberal Party is going to get serious on this, tackle the corporate greed and make sure that food prices start to go down for Canadians so they can afford to feed their families.
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- Jan/31/24 6:04:34 p.m.
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Madam Speaker, the inflation rate that peaked in June 2022 at 8.2% has come down to 3.4% as of December 2023. The grocery prices have started slowly coming down, but not to the extent that is comfortable for most Canadians. I expect that in the coming months, the general, overall inflation, including the prices at the grocery stores, will come down, and the pain being faced by Canadians will be addressed.
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Madam Speaker, I am pleased to rise today to speak to Bill C-59, the fall economic statement implementation act, 2023.
This legislation, which would deliver on key measures from our fall economic statement, would advance our plan to make life more affordable, build more homes faster and develop a cleaner economy that works for everyone.
This is the next step in our economic plan that, since 2015, has supported people in Halifax West and across the country through the Canada child benefit, enhanced benefits and pensions for seniors, stronger public health care and a Canada-wide system of affordable early learning and child care. These investments have helped bring us to today, when we have seen a strong recovery with a million more jobs in Canada than before the pandemic, a record number of working-age women in our labour force and, just last month, wages growing at the fastest pace in three years. In fact, wage growth has outpaced inflation for 11 consecutive months now, but we are not out of the economic woods yet.
Inflation is still high, higher than where we would like it to be. Elevated prices continue to put pressure on Canadian families. I hear about that every day from my constituents.
Over the past year, the federal government has taken more steps to make life more affordable for people in this country who need it.
It is no secret that we need to do much more.
This bill is part of that work.
There are a number of things I can talk about that Bill C-59 would do for Canadians. It would remove the GST and HST on counselling and psychotherapy services to make mental health care more affordable. It would extend employment insurance benefits to parents who adopt, better supporting those families.
Right now, adoptive parents are entitled to EI parental benefits, but not to the 15 weeks of maternity benefits.
It would create new, paid leave for federally regulated workers to support families who experience pregnancy loss.
A truly strong economy and labour force are built upon compassion and an understanding of the difficult situations some families encounter.
Bill C-59 would also introduce new measures to further our economic plan and continue supporting a strong middle class. It would achieve that by enshrining our suite of clean investment tax credits in law, all while providing businesses with an incentive to pay a prevailing union wage. That is huge.
This is the first time in Canada's history that investment tax credits are contingent upon such labour requirements.
Let us bring this back to my own community in Halifax West. The two things I hear about most these days, especially since we signed our transformative health care deal with Nova Scotia, are affordability at the grocery store and the need for more housing. This bill would introduce both.
On housing, Bill C-59 would remove the GST on new rental home construction for co-op housing, complementing the action we took in the fall and spurring new construction. Let us recall just how much we have done to increase housing supply over the last several months, because it is major. We are investing $1 billion more in affordable units like non-profit, co-op and public housing. We are helping build 30,000 more rental units by extending $15 billion in additional low-cost financing to builders. We are reforming the apartment construction loan program to offer low-cost loans to build more student housing on and off campus, a move that I know Dalhousie, Mount Saint Vincent and St. Mary's universities are all looking at closely.
We are launching a home design catalogue so pre-approved designs, including modulars, that can benefit Atlantic Canada specifically can be used to build more homes faster. We are funding 222 new units of public housing in Nova Scotia, the first expansion to our public housing stock in decades. We are unlocking 9,000 more units in HRM over the next decade by funding Halifax's housing action plan through our housing accelerator.
While Conservatives pick fights with elected mayors and councils, we work with them, providing the right incentives and getting major changes made so we can build homes faster in Canada. That is the way forward: collaboration.
We are going to get more homes built for Canadians, and we are also tackling the problem of high grocery prices head-on through a generational change to competition law in Canada. Bill C-59 is part of that. How is it? By amending the Competition Act and the Competition Tribunal Act, building on changes we have proposed in Bill C-56, we would help stabilize prices and improve consumer choice. This includes supporting Canadians' right to repair; further modernizing merger reviews; enhancing protections for consumers, workers and the environment, including improving the focus on worker impacts and competition analysis; empowering the commissioner of competition to review and crack down on a wide selection of anti-competitive collaborations; and broadening the reach of the law by enabling more private parties to bring cases before the Competition Tribunal and receive payment if they are successful.
I know I welcomed this week's news that the Minister of Innovation, Science and Industry is calling on the Competition Bureau to use its new powers to take another look at the cost of groceries in Canada. This is how we crack down on tactics that big corporations use to raise costs for Canadians.
Is there more we need to do to act on these two top voter priorities? The answer is yes, absolutely.
On this side of the aisle, we are going to stay focused on them both, fully in solution mode.
All members will have the opportunity to take part in this work, and that starts by supporting Bill C‑59.
Let us support the swift passage of Bill C-59, and let us keep working together on solutions to the challenges Canadians are facing at this time.
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- Jan/31/24 6:47:24 p.m.
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Madam Speaker, I listened attentively to the hon. member's speech and to his background in the financial sector.
On inflation and interest rates, many people in Canada seem to think they are the responsibility or shortcomings of the federal government. Does he not appreciate that the inflation rate is a global inflation rate? All the G7 countries are experiencing that. Interest rates are high in every single G7 country. Compared to many other G7 countries, our economic growth, including the latest numbers that came out yesterday or today, in the GDP growth rate shows that we will not go into a recession but are going to manage a soft landing.
Does he not agree that Canada is doing pretty well compared to our G7 partners in all metrics of the inflation rate, the interest rates and the economic growth that we are witnessing?
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- Jan/31/24 6:48:26 p.m.
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Madam Speaker, I do not know what economic data he is looking at. When I look at shrinking GDP in Canada, shrinking GDP per capita, shrinking GDP across the board, real GDP, I am saying that it is the worst in the world. It is the worst among our competitor countries. We actually are doing worse economically. We are trying to cover that up by bringing more people into Canada, which of course will increase our GDP, but our GDP per capita is sinking like a rock as a result.
We are not doing well economically, and it is part of the financial fiction the government keeps putting forward. It is not working well. Interest rates are high in Canada. Interest rates are high in many places. This is partly because of financially failed experiments the government continues to push toward. If it does not think the carbon tax, the carbon contracts for difference, and everything else it is throwing at the wall in order to make everything more expensive in Canada are not having their own unique effect on inflation, then it is not watching the ball. It needs to do away with all this excess tax it is putting on the backs of Canadians.
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- Jan/31/24 9:06:21 p.m.
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Madam Speaker, Canadians see around them every day the cost of not acting on climate change, with forest fires, violent storms and tornadoes.
Severe weather events are becoming more frequent as a result of climate change, and they have a significant impact on Canada's infrastructure and economy.
Experts all agree that putting a price on pollution is the right approach to fight climate change. The best part is that the bulk of the proceeds go back to Canadians.
However, we understand that many Canadians are struggling with elevated inflation. That is why we are moving forward also with measures to make life more affordable.
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