44th Parl. 1st Sess.
April 18, 2024 10:00AM
- Apr/18/24 10:20:49 a.m.
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Madam Speaker, after nine years and nine deficit budgets, the Prime Minister has doubled the national debt. He has added more to our debt than all the other prime ministers combined.
He has doubled the cost of housing and forced two million people to rely on food banks. Now, he is presenting a budget with $50 billion in additional inflationary spending, while repeating the same election promises he has failed to keep for a decade. That is why this budget and this Prime Minister are not worth the cost. We will be voting against this budget to show the government that we have lost confidence in it.
The Conservative Party has a common-sense plan: axe the tax, build the homes, fix the budget and stop the crime. Before I get into my common-sense plan, I would like to pay the Minister of Finance a compliment for asking Canada’s wealthiest some very good questions. She said, “I would like to ask Canada's 1%, Canada's 0.1%, to consider this: What kind of country do they want to live in?”
First, it bears mentioning that the minister and her leader do recognize that Canada's 0.1% are doing very well indeed after nine years of this Liberal government. They have benefited from enormous corporate handouts and grants—the biggest in the history of our country, in fact. They have received massive loan guarantees that protect them against losses from poor investments, which means that working class Canadians are left holding the bag. Millionaire businessmen like the GC Strategies contractors are surely part of the wealthiest 0.1% thanks to the gifts given them by this Prime Minister, such as the 100% increase in the number of outside contracts. In addition, by printing $600 billion of new money, this government made billionaires even richer. Lastly, the Prime Minister is a member of the 0.1%, since he inherited millions of dollars from his grandfather and placed the money in a trust that shelters it from taxes and protects it, just like those billionaires who invite him to their private island in the Caribbean. It was therefore a very good idea to put this question to the wealthiest 0.1% who are doing better than ever after nine years under this prime minister.
I am going to quote other questions that the minister asked them, including the following: “Do they want to live in a country where we can tell the size of one's paycheque by their smile?” After nine years of rising taxes, inflation and interest rates, Canadians are no longer smiling when they look at their paycheque, because it is disappearing. After nine years, Canada has the lowest personal income growth of any G7 country. Our GDP per capita is down from what it was five years ago. People have no reason to smile. Their paycheque does not buy them as much food or cover as much of their housing as it did nine years ago.
The minister also asked, “Do they want to live in a country where kids go to school hungry?” Obviously, the answer is no. However, that is the reality after nine years of this Prime Minister. According to the documents published by his own government, the Prime Minister admits that nearly one in four children go to school without food every day. After nine years of this Prime Minister, who taxes the farmers who produce our food and the truckers who deliver our food, a quarter of all children do not have enough to eat. We see today in the budget a promise to feed them. That promise was made in 2021, three years ago. How many meals have been provided since? Not a single one has been provided. After nine years of this Prime Minister, our children are going hungry.
The minister also asked, “Do they want to live in a country where the only young Canadians who can buy their own homes are those with parents who can help with the down payment?” That is the country we live in now, after nine years of this Prime Minister.
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- Apr/18/24 12:05:50 p.m.
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Mr. Speaker, the member mentioned the fiscal issues. I would like to remind him that Canada has the lowest deficit-to-GDP ratio and lowest net debt-to-GDP ratio among all the G7 countries. In fact, Canada not only has a AAA credit rating, but it is also one of only two G7 countries that has a AAA rating from two of the three independent credit agencies.
Quebec has shown the solid move from the carbon-heavy economy to a clean economy. Quebec has very advanced manufacturing and knowledge-based companies. Does the member not recognize the importance this budget has given to knowledge-based companies and specifically how it would help Quebec companies, for example in artificial intelligence, with a $2-billion fund for the AI compute access fund, $200 million for artificial intelligence start-ups, and help for crucial sectors, such as agriculture, health care and manufacturing, to adopt artificial intelligence?
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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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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 4:01:11 p.m.
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Mr. Speaker, my colleague is always thoughtful, bringing information forward that is very useful, but when the member across the way says that so many people have new jobs, the government hiring hundreds of thousands of people is not going to help the economy. That does not increase the GDP.
You also talked about who is going to be paying for this budget's huge deficit. Could you tell us again what your belief is as to who is going to be paying for this?
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- Apr/18/24 4:01:49 p.m.
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Mr. Speaker, everyday Canadians are paying for the exorbitant interest costs generated by the irresponsible deficit spending of the government, $54.1 billion. That is over a billion dollars a week on the backs of Canadian taxpayers going to wealthy bankers and bondholders and not to health care or child care. It is shameful, absolutely shameful.
It was not like this before the current Prime Minister and it is not going to be like this after he is gone.
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- Apr/18/24 5:15:27 p.m.
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Madam Speaker, a year and a half ago, the government tabled a fall economic statement that showed a balanced budget in five years. Now the deficit is $20 billion. Since everyone started telling the government to slow down its spending, it has added $103 billion of new spending. That is net. The gross number is $156 billion. What I would like to have seen in this budget is some kind of plan.
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- Apr/18/24 6:43:07 p.m.
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Madam Speaker, I thank the member opposite for the very entertaining diatribe she went on. The member opposite claims that she is not being partisan, but every part of her comments today seemed like a partisan attack. I know she specializes in conspiracy theories on her nightly news show, but I will endeavour to answer her question. Before I do, I will just clarify something on the defence spending. Obviously the member has not taken the time to read the document yet, but budget 2024 includes considerable increases to defence spending.
I appreciate the opportunity to speak about the work our government is doing to address affordability issues in Canada, while continuing to manage our country's finances responsibly. First of all, I would like to remind my hon. colleague that Canada has the lowest deficit and net debt-to-GDP ratios in the G7, which is recognized in our AAA credit rating. Canadians know how important it is to manage a budget responsibly in the face of rising costs, and that is exactly what we are doing. As noted by the Deputy Prime Minister and Minister of Finance when she tabled the budget earlier this week, we are maintaining our fiscal anchor. Our federal debt-to-GDP ratio will continue to decline over the medium term.
In budget 2024, our government is moving forward with measures that foster the kind of economic growth that will enable every generation of Canadians to reach their full potential. For example, budget 2024 includes many ambitious measures to address the housing crisis. We want to ensure that people, especially young people, are better able to pay their rent or mortgage. To do this, we are investing in building more rental apartments and more affordable housing from coast to coast to coast. We are topping up the housing accelerator fund and making it easier for Canadian homeowners to add a basement suite or a laneway house so middle-class Canadians can be part of the housing solution too.
For first-time home buyers, we will be extending the maximum amortization period of a mortgage to 30 years on new builds, including condos. We are also making changes to ensure that renters who pay on time can have the rent payment count toward their credit history when it comes time to get a mortgage. This means lower monthly payments and greater opportunity for young people to buy their first home.
We are also moving forward with measures to make life in Canada cost less. Inflation is now way down, and in fact, it now has been back within the Bank of Canada's target range for three months in a row. We said we would continue to invest in Canadians, reasonably manage our finances and control inflation, and that is exactly what we are doing.
We understand that many Canadians, especially younger people, need support. That is why we are making transformational enhancements to Canada's social safety net. That social safety net is being increased through $10-a-day child care, the Canadian dental care plan, a national drug insurance plan and, now, a national school food program, which I am very proud to see in the federal budget.
These are just a few of the measures we are putting forward to help Canadians.
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