44th Parl. 1st Sess.
April 18, 2024 10:00AM
- Apr/18/24 10:27:14 a.m.
- Watch
- Re: Bill C-5
After nine years, he has doubled the cost of housing, doubled the down payment needed to buy a home and doubled the mortgage payment for an average home. Let us not forget that nine years ago, the average down payment was around $20,000. I remember because I was the minister responsible for housing at the time and it was possible to buy a home with a modest down payment of $20,000. Now, the down payment that is needed has doubled. Roughly 64% of the average monthly income is needed to pay the monthly costs associated with housing. That is nearly double what it was nine years ago. As a result, only the rich, only the children of the wealthy can buy a home right now.
“Do they want to live in a country where we make the investments we need in health care, in housing, in old age pensions, but we lack the political will to pay for them and choose instead to pass a ballooning debt on to our children?” I am quoting the Minister of Finance.
This Prime Minister is the one who doubled our national debt nine years after saying the budget would balance itself. He said he would run three small deficits totalling less than $10 billion. Now he has added nearly $700 billion to the debt, most of which has nothing to do with COVID-19 spending. He continues to rack up deficits of approximately $40 billion, three years after COVID-19. He can no longer say that the dog ate his homework and that the deficits are tied to COVID-19. He is choosing to go deeper and deeper into debt.
I would like to tell the minister that we do not want to live in a country where we leave our children with a growing debt, but that is the country we now live in after nine years under this prime minister.
“Do they want to live in a country where those at the very top live lives of luxury but must do so in gated communities behind ever-higher fences using private health care and private planes because the public sphere is so degraded and the wrath of the vast majority of their less-privileged compatriots burns so hot?” I am again quoting the finance minister.
That is the country that we are living in now after nine years under this Prime Minister. Yes, the wealthy, like him, have private planes. He uses his private plane more than anyone else, while he is forcing single parent mothers who dare to drive their Toyota Corolla to pay a carbon tax. He is spending taxpayers' money to take illegal vacations on private islands. He and his cronies are the ones benefiting from this, while things on our streets and in our neighbourhoods are worse than they have ever been. It is complete chaos. Auto theft has become so commonplace that the police are telling people to leave their keys next to the door so that the thieves will have an easier time of it. That is the country that we are living in after nine years under this Prime Minister.
Minister, do we want to live in a country where we can tell the size of one's paycheque by their smile? No, but that is the country we live in. Do we want kids to go to school hungry? No, but the government says that is the country we live in now. Do we want to live in a country where the only young people who can buy a home are those with rich parents? No, but that is the country we now live in after nine years of this Prime Minister. Do we want to live in a country where our children are saddled with more and more debt year after year? No, but that is the country we now live in after nine years of this Prime Minister. Do we want to live in a country where the rich, like this Prime Minister, can travel around the world in private jets, while the majority live in the chaos and hell of our crime-ridden cities? No, but that is the country we now live in.
We do not want that kind of country. That is exactly why we need an election to elect a new common-sense government, a government that will deliver the country we love for all Canadians.
Just for a minute, let us talk about the myth that they are very rich. Nine years ago, members will recall, the Prime Minister said that he was going to spend, spend, spend, that it would not cost anyone a cent, and that some rich guy on a hill was going to pay all the bills. Where is he?
After nine years of this government, the rich are paying less than ever. After nine years of this Prime Minister, and for the first time in our history, owning a home is beyond the reach of an entire generation. After nine years of this Prime Minister's promises to help the so-called middle class, the middle class no longer exists. The middle class is poor.
If anyone thinks I am exaggerating, I have one simple question: Can a middle-class person afford to buy a house today? It is mathematically impossible for a middle-class person to buy an average home. I am not the one saying it. According to the Royal Bank of Canada, it takes 63% of the average family's pre-tax income to pay the average costs of a home today. It is a mathematical impossibility. Nine years ago, it took 38% of a monthly paycheque to pay the mortgage. Now, it takes twice as much.
If someone cannot buy a house, they are not part of the middle class. One in four families cannot feed their own children—one in four, and that is from the government's own statistics. That family is not part of the middle class either.
Yesterday's budget tabled by the Finance Minister was a major admission of failure. She admitted that after nine years of her government, life is hell for the so-called middle class. Middle-class Canadians have become Canada's poor. This Prime Minister has presided over the worst decline in middle-class quality of life in the history of our country. Things may even be worse than during the Great Depression. That is not me saying this, that is the minister herself and the Prime Minister.
When the Prime Minister talks about the condition this country is in, he describes it as a living hell for the poor and for workers. He describes a hell for the children who do not have enough food to eat. He describes a country where the elderly cannot pay their bills.
It is as though he has not been Prime Minister for a decade. Waving a magic wand, he tries to convince us that this is his first day on the job. After nine years, the Prime Minister is right: Life is hell for the middle class, and it is because we have a Prime Minister who is not worth the cost.
Fortunately, it was not like that before this Prime Minister and it will not be like that after this Prime Minister. We will replace him with a common-sense government that will lower taxes, build housing, fix the budget and stop the crime. I will explain how we will do this.
First, Canadians pay more in tax than they spend on food, housing and clothing. That is how things are after nine years of this costly government. That is why the trend must be reversed. Spending must be brought under control so that taxes can be lowered and Canadians' paycheques can go farther. Workers, businesspeople and seniors must be allowed to keep more of their hard-earned money.
Second, more housing must be built. After nine years of this Prime Minister, we have less housing per capita than any other G7 country. That is because we have the worst bureaucracy. Our bureaucracy prevents housing construction, adds hundreds of thousands of dollars to the cost of each home and causes years-long delays. Among OECD countries, Canada is the second slowest to issue building permits. This adds $1.3 million to the price of each new home in Vancouver and $350,000 in Toronto. The City of Montreal prevented the construction of 25,000 homes. The City of Winnipeg prevented the construction of 2,000 homes next to a public transit station built specifically for these future houses. That is absurd. The federal government should not be sending $5 billion to municipal governments for them to build bureaucracies that prevent home building.
On the contrary, we must begin to encourage municipalities to allow more construction by freeing up land and authorizing construction more rapidly. Real estate companies are paid for each house sold. Builders are paid for each house built. We should pay municipalities for each housing unit approved. My common sense plan will require municipalities to allow 15% more construction per year and authorize the construction of high rise apartment buildings near transit stations funded by the federal government. That will be the condition to meet to receive this money.
We will do this by entering into agreements with the provinces, fully respecting their areas of jurisdiction and allowing them to achieve these results as they see fit, without federal interference. Then we are going to sell 6,000 buildings and thousands of acres of federal land to allow for more construction. We will also reduce taxes on housing construction to accelerate construction. This is a common-sense plan to return to a situation where housing is affordable, as it was nine years ago, when I was the minister responsible for housing.
Third, we are going to fix the budget by imposing a dollar-for-dollar rule. For each new dollar spent, my government will find a dollar of savings somewhere else. That is how we cap the cost of government to allow taxpayers and the economy to grow and reduce the size of the government relative to the country.
It is a decentralizing and responsible approach. This is how we will eventually balance the budget, reduce interest rates and bring down inflation.
I find it very ironic that the Bloc Québécois has voted more than once to increase the size of the federal government. It voted in favour of $500 billion in centralizing, inflationary and discretionary spending by the current Prime Minister. I am talking about the kind of spending that increased the size of the government and the number of federal employees by 40%. The Bloc Québécois voted to double spending for external consultants, who now cost $21 billion, in other words, $1,400 in taxes for each Quebec family just for consultants.
We understand why this Liberal centralist government would want to do that, but we do not understand why a so-called sovereigntist party would vote for such an increase and concentration of powers and money at the federal level. It makes no sense. It is because the Bloc Québécois does not want to free Quebeckers from federal costs. It wants to implement a leftist ideology born on the Plateau Mont-Royal. It just wants a bigger role for government, whether federal, provincial or municipal. The Bloc Québécois's leader is obsessed with more government, more costs for workers. We Conservatives want a smaller federal government for a bigger Quebec. We want less control by Ottawa and more power for Quebeckers. A smaller federal government for a bigger Quebec is simple common sense. We are the only party that will be able to do it.
At the same time, we need to eliminate inflation, which widens the gap between the rich and the poor. A monetary system of printing money naturally favours the wealthy. It is something the Prime Minister borrowed from the United States. The United States' monetary policy causes inflation year after year to inflate Washington's spending and to inflate shares on Wall Street. It is an alliance between Wall Street and Washington, between big companies and big government. Of course, it favours the wealthy. The people who live in Manhattan and Washington are the richest people in the country. This is due in part to the fact that the United States prints a lot of money to help both groups.
Here in Canada, for the first time, a Prime Minister tried to copy and paste that approach by printing $600 billion to finance his own spending. It caused the worst inflation since the time of his father, who did the same thing. What are the consequences? Those who have shares or investments in land that is ripe for speculation, in gold, or in exclusive luxury wines get richer. The value of their assets is inflated. Conversely, people who rely on a paycheque or pension get poorer. The value of their paycheque diminishes. It is a transfer of wealth from the poorest to the richest, and it is a benefit that often goes untaxed.
It is a benefit the Prime Minister keeps adding to day after day, causing this inflation. I would add that the people who receive these big financial gifts from governments often pay no taxes at all because they never sell their assets. They borrow money by using their assets as collateral to purchase more assets, whose value swells more with inflation, and then they use those assets to purchase even more assets, and so on. Wealth becomes concentrated in the hands of the infamous 1% or 0.1% of the population. This trend has been accelerating since the Prime Minister came to power, because it helps the wealthiest Canadians and also allows his government to indulge in uncontrolled spending. Both sides get what they want. The Prime Minister can spend the money he prints out of thin air, and the wealthiest benefit from the inflation of the value of their assets and their wealth. It is always the working class that ends up footing the bill for this irresponsible approach.
I will put an end to that. I will restore the Bank of Canada's mandate, which is to keep inflation low and the dollar higher. We will make sure that we do not print money just to spend it, because that is an inflation tax. It is an unjust and amoral tax. I will axe the inflation tax by fixing the budget. I want people to bring home more powerful paycheques.
Speaking of home, home is more dangerous after nine years of this Prime Minister, who automatically releases criminals on bail or allows them to be sentenced to house arrest, the “Netflix sentences” that he implemented with bills C-5, C-75 and C-83. These laws have allowed people to be released mere hours after their arrest so that they could commit more crimes. That is why street crime is surging all across Canada.
Yesterday we heard reports of a major shootout in downtown Montreal. There has been a more than 100% increase in the number of car thefts in Montreal, Toronto and other major cities. My common-sense plan will keep the most dangerous criminals in prison by making those with dozens of convictions ineligible for bail, getting rid of “Netflix sentences,” forcing car thieves to serve their sentences in prison, and not going after our hunters and sport shooters. If someone has a gun they bought legally after going through an RCMP background check, receiving training and passing tests to prove that they are a safe, responsible person, they will be able to keep it. However, if they are criminals, we will stop them from having guns. We will strengthen the border and our ports. We will scan containers to make sure that no weapons or drugs enter the country and that no stolen vehicles leave. That is the common sense needed to stop the crime and make our communities safe again.
We are going to implement a common-sense plan that will rebuild the country that we want, a country that is the opposite of what the Minister of Finance described in her speech. It will be a country where it pays to work, where everyone who works hard can afford to buy a home and put food on the table in a safe neighbourhood. That is what Canadians are entitled to and deserve, and that is what they will have with a common-sense government.
Some hon. members: Oh, oh!
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- Apr/18/24 1:29:51 p.m.
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Madam Speaker, when I give a speech, I usually say that I am pleased to rise in the House to speak to a subject. Today, however, I cannot really say that I am pleased.
I would like to begin with a brief look back in time. The date is August 2, 2015, when the election was called. We learned in the weeks following the start of the election campaign that the Conservative government had left a budget surplus of $1 billion. The fiscal year ended with a surplus.
I have to admit that the Liberals are marketing masters. They are experts at this. They know how to play with people's emotions, with their minds. During the election campaign, the Prime Minister, who was then the leader of the Liberal Party, promised to run small $10‑billion deficits in the first and second years in order to invest heavily in Canadian infrastructure, and he promised to balance the budget in the third year.
Voters who heard that thought it might not be so crazy. Maybe he was right; maybe we did need to invest in infrastructure. They decided to give him a chance. Voters were entranced by that promise. Instead of making massive investments in infrastructure and running a $10‑billion deficit each year for the first two years, the government ran a $30‑billion deficit in the first year, and again in the next two years. Four years later, at the end of the first Liberal term, a $100‑billion deficit had been added to the debt.
In the very first year, after $30 billion in deficits, we checked in on the infrastructure situation. In the end, $3 billion of that $30 billion had been spent on infrastructure. That means that $27 billion disappeared into thin air. That happened every year for the next nine years. We are talking nine years of budget deficits. These are not small deficits, these are massive budgets. The country's debt has doubled and now stands at $1.2 trillion. That is $600 billion more than it was at the beginning of the Liberal government's mandate.
Since then, what has happened? Inflationary deficits have caused interest rates to rise. I get the feeling that people are not paying attention to the fact that this is putting social programs at risk. Yes, the federal government already had social programs. However, by running up deficits, it has run out of money. It is jeopardizing what was already there by creating other programs that are just ideas—nothing is functioning yet. It is not the federal government's role to create programs that interfere in provincial jurisdictions.
As I said, the Liberal marketing machine is on overdrive, releasing lots of pretty pictures and promising everyone the moon and the stars, but that is not what is really happening. Programs are being jeopardized. Organizations everywhere are struggling and are no longer getting any answers. People are calling us and saying that they do not know what to do because the funding they used to receive no longer exists. They do not know what to do, and they are not getting any answers. It is not complicated. They have no money left in the bank and no room on their line of credit. That is what happens when the government runs a massive deficit and pretends that it is helping people, when there is no money left to help them. This is an untenable situation.
As far as this year's budget is concerned, some will say that the opposition complains all the time, that it has nothing better to do. It is true that we have some criticisms, but they are justified. There is a lot to criticize here. As a matter of fact, that is our job. More importantly, experts, analysts, journalists who cover the economy, have all said right from the start that, once again, this defies common sense. When we talk about having common sense, that is in contrast to things that defy common sense. Again, this is a massive deficit budget for which there is no explanation. The Liberals are quite adept at this.
I cannot show it because we are not allowed to show anything in the House, but I have a brick in my hands, namely the budget. In reading it we see that there are some fine words and good intentions, but there is nothing meaningful. In the end, we see that there is more than $40 billion in inflationary spending, a $39.5-billion or $40-billion deficit and we are getting nothing for our money. If only there had been something meaningful.
Had the Liberals implemented something substantial in terms of infrastructure at the time when they promised to invest in it, then we could have said that their plan is working. However, instead, it seems as though the Liberals are wasting money and do not know where the money is going. That is fascinating but also unfortunate for Canadians.
Many people have been raising red flags for a long time, and I am not talking about the Conservatives. On the Liberal side of things, two weeks ago, the former Liberal governor of the Bank of Canada, David Dodge, said that this budget would be the worst budget since 1982. John Manley, a former Liberal finance minister, also said a few months ago, that by acting as it is doing, the government is pushing on the inflationary gas pedal. This way of spending and wasting money—money that, let us face it, is borrowed because it is being loaned to us by a bank—is driving up inflation and interest rates.
What is shocking is that this does not seem to bother the Prime Minister. We keep telling ourselves that, at some point, he will finally understand, get his act together and realize that his peaches and cream idea is not working and that he needs to regain control of the public purse, but no. The government is cozying up with the NDP and, too often, with our Bloc Québécois friends. It keeps spending and spending, and we have no idea where that money is going. That is not helping people.
Canadians are struggling more than ever. They cannot make ends meet. Everything costs more. Rent has doubled. A down payment on a mortgage to buy a house is double what it used to be. Young people cannot afford that. I have 20-year-old children. They look at that and tell themselves they will never be able to buy a house. There is no way. House prices have gone up. The amount people need for a down payment has gone up. The same goes for rent. A small two-bedroom apartment used to cost $1,000; now it is $2,000 or $2,200. This is not working.
Worse still, we now have to pay interest on nine years' worth of deficits, and that costs us $54.1 billion a year. That is as much as the budget for health transfers. Instead of sending that money to the provinces to help the health care system, the government is sending it directly to banks in London and New York. What good does that do us? None at all.
Worse still, Thomas Mulcair and others have said that $54.1 billion is the equivalent of all the GST we pay on our bills. If someone gets a restaurant bill that includes $13 in GST, they might wonder where that $13 will go and whether it will be spent on Canadians. Unfortunately, it will go to banks to pay off interest. All the GST collected from businesses and individuals will do nothing but pay interest on the debt.
No one is going to convince me that this makes any sense. No one is going to tell me that it is no big deal or, like the Liberals in defeat, that we are better off than other G7 countries. Are we really better off than other G7 countries? A typical single-family home in the United States costs half as much as it does here. Gasoline is cheaper. Everything is cheaper in the United States based on population. What are we being compared to? That is where it falls apart. The Liberals cannot get it through their heads that what needs to be looked at is daily life, the everyday lives of Canadians who work, pay taxes and realize that, when all is said and done, everything costs them more and they do not have the money to make ends meet.
Not everyone has the luxury of simply going to the bank to apply for a $50,000 loan with the intention of paying the interest when they have the money. That is not how it works in real life. The government should act like people do in real life and be cautious. That is what is so deplorable about this government. It is not careful with the public purse. Worse still, it keeps borrowing money and paying interest.
At the end of the day, we cannot support this bill. More than that, we will vote against it and consider that a vote of non-confidence, because it is over. We do not have confidence in this government. After nine years, we have more and more evidence of that.
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- Apr/18/24 1:39:53 p.m.
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Madam Speaker, on the contrary, I would have liked to see the Prime Minister, when he was leader of the Liberal Party in 2015, fulfill his promise and spend his $10-billion deficits in the first and second years on infrastructure.
I would remind my colleague that it was Denis Lebel, a member of the Conservative government at the time, who announced the Champlain Bridge infrastructure project in Montreal, which cost $5 billion or $6 billion. It was the Conservatives who spearheaded that project, and we did a superb job.
We want infrastructure that respects taxpayers' wallets. We are criticizing the waste that goes who knows where.
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Mr. Speaker, this budget is ironically called “Fairness for Every Generation.”
After nine years of the Prime Minister trying to make things fair, he sure has not done a very good job. Things are not fair.
Is it fair to every generation that every year life is less affordable? Is it fair to every generation that rents are sky-high? Is it fair to every generation that one in four kids cannot afford to eat? Is it fair to every generation that it takes almost 20 years just to save up for a down payment?
The Prime Minister is not worth the cost for any generation. This is the ninth straight year of deficit spending. In 2015, the federal debt was $616 billion, accumulated from 1867, when Canada began. Today, it is $1.25 trillion, double. The Prime Minister has borrowed more money than all other prime ministers combined.
The result is that, after 20 years of low inflation and interest rates, the Prime Minister's irresponsible inflationary spending has upended Canada's stable economy.
This year, Canada will spend $54.1 billion on interest to wealthy bankers and bondholders, instead of to doctors and nurses, to service the Prime Minister's debt. That is the same amount collected in GST. We should change the name of that tax from the GST to the DST, the debt servicing tax. It is also more money than the government spends on health care or on the Canada child benefit.
This is what happens when a Prime Minister does not want to think about monetary policy. The result is that mortgage payments have doubled, down payments have doubled, rents have doubled, the cost of gas, groceries and home heating have skyrocketed, and people cannot afford to eat, heat or house themselves.
Instead of reining in spending to bring inflation under control, the Prime Minister acts like a pyromaniac, throwing another $40 billion on the inflationary fire. This is despite warnings from economists, including Bank of Canada Governor Tiff Macklem, who cautioned that government spending is at the upper bound. This will make it much harder for the bank to lower interest rates.
This is not a partisan point. Former parliamentary budget officer Kevin Page expressed this yesterday, telling Global News, “We gotta get those interest rates down. So on a net basis, this is just not good for inflation.” Former Liberal finance minister John Manley also warned this government months ago that it was pressing on the inflationary gas pedal with its spending. Even former Liberal-appointed governor of the Bank of Canada David Dodge said he believes that this will be the “worst budget” since 1982.
The definition of insanity is doing the same thing over and over again and expecting a different result. After nine deficits and doubling the national debt, Canada is less fair and Canadians are worse off.
Now the finance minister says that what Canadians really want is a stronger government to make things fairer. By making government bigger, the Liberals have made citizens weaker. Conservatives believe that smaller government makes for bigger citizens.
This is not a government that gives people everything they want. It is a government that takes everything they have. Members do not have to take it from me. Just yesterday, in the Financial Post, it was written, “we’ve become a growth laggard and our living standards have largely stagnated for the better part of a decade.”
Part of our declining standard of living has to do with the fact that Canada has the worst productivity in the G7. Our GDP growth has been driven primarily by population and labour force growth, not productivity improvements. That may increase the total amount of goods and services, but it does not translate into increased living standards.
This is a real crisis. From 2000 to 2023, the growth rate of Canada's real per person GDP was 0.7%. That is meaningfully worse than the G7 average of 1% and the United States', whose GDP per person growth rate was 1.2%, almost double. Our country is facing a productivity crisis that threatens to erode this country’s standard of living and erase many Canadians' hopes for a more prosperous future.
Just a few weeks ago the Bank of Canada's deputy governor Carolyn Rogers said that we have a productivity emergency, and “in case of emergency, break glass.” Even former Liberal finance minister Bill Morneau says the budget is a threat to investment and economic growth.
It is time to take action by, for instance, reducing regulatory barriers to investment, celebrating entrepreneurship, bolstering the profit incentive for private investment and loosening the federal government's tight grip on the economy. Unfortunately, the Prime Minister does the exact opposite.
There has been one change, though. The borrow-and-spend Liberals are now the tax-and-spend Liberals. On top of gouging Canadians with their April 1 tax hikes, they have decided that they know better how to spend businesses' money than the hard-working Canadians who actually run those businesses.
This is not a partisan point. Dan Kelly, president of the CFIB, said, “What worries me the most about [these tax] changes is the potential to demotivate Canadians from getting into business in the first place or working hard to grow a small business to a medium-sized business”. He is not the only one.
Harley Finkelstein, president of Canada’s greatest tech company, Shopify, said:
We need to be doing everything we can to turn Canada into the best place for entrepreneurs to build.
What's proposed in the federal budget will do the complete opposite. Innovators and entrepreneurs will suffer and their success will be penalized—this is...a tax on innovation and risk taking.
Our policy failures are America's gains. At a time when our country is facing critically low productivity and business investment our political leaders are failing our country's entrepreneurs.
For nine years, the Prime Minister has told Canadians that the rich would pay for the cost of his spending, but the truth is that it has been everyday Canadians who have been the ones paying. The Prime Minister has already raised his punishing carbon tax by 23% on April 1, and with $40 billion in new inflationary spending, Canadians will continue to pay the inflation tax that hurts the poorest among us the most. Whatever the Prime Minister says, it will not be him and his billionaire friends who pay for new spending. It will be single moms, workers and small business owners.
We cannot tax our way to prosperity, and no government program can increase productivity better than the power of the free market, spurred on by Canadian entrepreneurs. We need to celebrate entrepreneurship in this country, not punish it.
Conservatives had three simple demands for the budget: axe the tax on farmers and food by immediately passing Bill C-234 in its original form; build the homes, not bureaucracy, by requiring cities to permit 15% more homebuilding each year as a condition for receiving federal infrastructure money; and cap spending with a dollar-for-dollar rule to bring down interest rates and inflation. The government must find a dollar in savings for every dollar of spending.
The Prime Minister did none of those things, and for those reasons, Conservatives will not be supporting the budget.
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- Apr/18/24 4:27:23 p.m.
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Mr. Speaker, my colleague is talking about housing, and he is focused on housing. The government says that it is focused on housing, but the government has been saying it has been focused on housing for how many budgets now. How successful has it been thus far? These are regurgitated words the member is saying that come from many speeches by the government.
All the government has done so far is to drive up the cost of housing by running excessive deficits, repeatedly, which drives up inflation, which drives up the price of housing. How does the member think that by doing the same thing again and again, he is going to get a different result?
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- Apr/18/24 4:57:29 p.m.
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Mr. Speaker, to bring this back to York—Simcoe, it is the farmers, the working class and the middle-class people who are paying for these deficits. Let us look at this. There is $50 billion in new spending. That is more than we bring in through GST alone. I alluded to the fact that York—Simcoe does not have a hospital. We still do not have a hospital. To my NDP colleagues, I would say that we are spending more on the debt than we are on health care. It is unbelievable.
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