44th Parl. 1st Sess.
April 30, 2024 10:00AM
- Apr/30/24 11:11:28 a.m.
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Mr. Speaker, how does my colleague across the way feel about the GST being now dubbed the DST and that, every time a Canadian goes to the till to buy anything, every cent of the GST that goes to the government would pay for debt servicing?
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Mr. Speaker, it is always an honour and pleasure to bring the voices of Chatham-Kent—Leamington to this chamber. Today I am rising to address budget 2024.
A common definition of insanity is to do the same thing over and over again while expecting a different result. This budget is, again, a “tax more and spend even more” budget. It is this government's ninth budget, or more correctly, eighth budget, since it did not bother coming to this chamber during the pandemic. It just kept spending.
I do not personally claim to be a financial expert, but I have run and have been part of businesses. I have borrowed funds, and I have been expected to pay them back. I have also had the privilege to be involved with and chair several organizations, so I have had the experience of being accountable to others for their money and for stewarding organizations to their collective goals. Responsible stewardship of one's own funds and, even more importantly, of others' funds, leads to growth and prosperity of one's business, one's organization, or, as we are discussing today, one's country.
Please do not take my word for it on this budget that it is evidence of insanity. Let us look at what others have to say.
Across the country, many people are sounding the alarm bells over the budget. Aaron Wudrick and Jon Hartley from the Macdonald-Laurier Institute state that the growth expectations and projections for Canada are “an anemic 1.2%” for Canada versus 2.7% for the U.S., largely driven by declines in the level of business investment. The OECD supports this severe prognosis as it projects that Canada will have the lowest real per capita GDP growth among advanced economies between now and 2060.
Our very own Parliamentary Budget Officer has projected that economic growth will remain “sluggish through 2024” due to restrictive monetary policy resulting from rising budgetary deficits. Furthermore, Yves Giroux, the Parliamentary Budget Officer, states that the math simply does not add up on the expectation that the federal public service will shrink due to natural attrition by 5,000 FTEs over four years. He says that the Liberals have made too many promises, pledged too many things and made too many announcements for that to even have a shred of credibility. He says that we can expect the public service to grow, not shrink.
Here is another perspective: The former Liberal Bank of Canada governor David Dodge has warned that he believes that this budget will be the worst since 1982, and I will not say who was in this chamber then.
Canada will not reach par growth with other developed countries until 2060. Why is that? It is because this government's out-of-control spending has created an economic black hole that we will not be able to dig out of for 36 years, according to others' words. Again, members need not take my word for it.
Let us move to a more recent Bank of Canada representative's statement. Carolyn Rogers, senior deputy governor of the Bank of Canada, noted, in a recent speech in Halifax, “You know those signs that say 'In an emergency, break the glass?' Well, it's time to break the glass.” She cited the lagging Canadian productivity rates as one of the contributing factors. She went on to say that one of Canada's main issues dragging down our productivity rates is the lack of business investment.
While business investment has declined in Canada since 2014, in other countries, including the U.S., it has continued to grow. As a result, Canada's GDP per hour worked, the key measure of productivity growth, is among the lowest in the OECD. This budget will only continue this trend, as it does not incent business investment.
Another Bank of Canada guy, Tiff Macklem, our present governor, agrees and states that this budget has not significantly changed the government's fiscal path and it is unlikely to affect the government's macroeconomic trajectory in the near term. Why is there all of this discussion about economic growth? Why is it important? Should we not just focus on helping people?
Economic growth is what allows a government to responsibly and sustainably deliver social programming. Irresponsible fiscal management is exactly what jeopardizes a government's ability to maintain a strong social safety net and create the fiscal conditions for Canadians to thrive, in mainly low, predictable inflation and lower interest rates.
Even the often touted future Liberal leader, Mark Carney, stated that there is not enough focus on the net economic growth in this budget. Former Liberal finance minister Bill Morneau, in his book related to the Prime Minister, would routinely announce bigger numbers for more spending because bigger numbers sound good. I agree that bigger numbers sound good within one's own bank account, but not so much when they add to the public debt.
Former Liberal Finance Minister John Manley said that, while the Bank of Canada was trying to press on the brakes of inflation with higher interest rates, the Prime Minister was pressing on the inflationary gas pedal with his spending, which had ballooned interest rates in the first place.
The Prime Minister seems hell-bent on destroying the economic fabric of this nation for his own political gain, with no regard for the future generations he is fiscally handcuffing. He refuses to listen to reason, and here is the main point of my speech, he refuses to even listen to his fellow Liberals. He has added more debt than all previous prime ministers combined. It now stands at $1.255 trillion, and there is no plan to bring that in balance or to control inflationary deficits.
Doug Porter, a chief economist with the Bank of Montreal, put it best when, in describing the value of growth, he cautioned that higher government spending is perhaps not where we want to see that growth. However, what does budget 2024 do? It includes $40 billion in new spending, which will continue to drive up the cost of goods we buy and the interest rates we pay.
This year, the Prime Minister and his Liberal government are forcing Canadians to spend $54 billion just to service his debt. That is the same amount that the GST brings in in government revenues. Sometimes, when we talk about millions and billions, and debt and deficits, it is hard for us to comprehend what that means in our everyday lives. Let us think about it this way: The GST has now become the DST. Instead of the GST raising funds for social programming, every single cent of it now goes to service the Prime Minister's debt. The goods and services tax has become the debt servicing tax. It is these very deficits and debts that have contributed to higher inflation and the resulting higher interest rates necessary to try to tap down inflation.
According to Scotiabank, the Bank of Canada would have only had to raise interest rates to 3% if government spending had not stoked inflation, meaning that rates are a full 2% higher than they need to be. Why is this important? The Liberal government's mismanagement has directly affected the lives of Canadians. Housing costs have doubled, as have mortgages and rents.
The Financial Post reports that 3.4 million Canadians will renew their mortgages by 2025, and a total of $900 billion in mortgages will need to be renewed in the next three years. More Canadians are going to have to sacrifice the basic necessities, such as food or clothing, to afford their rent or mortgage payments.
In 2015, the Liberals were elected on the promise of small and temporary deficits, less than $10 billion per year. They were elected on the promise of stable inflation and low interest rates forever. They were elected on the promise of sunny ways. Do members remember? After nine long years, it is clear the Prime Minister is definitely not worth the cost, and the budget does nothing to solve the problems that Canadians face.
Despite all the negativity that I have referenced in this speech, largely voiced by Liberals and independent officials, I do have hope. I have hope in Canadians because we have come back from disasters like this before, and we can do it again. After World War II, many families had suffered personal loss, and many soldiers either did not come home or came home wounded, but many came home after rescuing democracy and set to rescuing our economy, which was heavily indebted after the war effort. Record government surpluses that followed the war addressed the debt and a long period of economic prosperity followed.
Today, there is also hope on the horizon. A Conservative government would axe the tax on farmers and food by immediately passing Bill C-234 in its original form. We would build the homes, not more bureaucracy. We would also cap spending with a dollar-for-dollar rule to bring down interest rates and inflation. Under a Conservative government, my children and grandchildren would know that, if they worked hard, home ownership would be a reality. It is their home, our home, my home. Let us bring it home.
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- Apr/30/24 11:26:49 a.m.
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Mr. Speaker, the government has a long track record of announcements of budgets, etc. Often that leads to more spending, but it does not lead to the good outcomes. Every family and every business knows that they have to make priorities and have to sacrifice some things, even though they might be good measures, for long-term health and to bring about balance. This is what the government has not done. It has been phenomenal at photo ops and announcing good intentions.
I am a numbers guy. I come from business. What do the numbers say? The numbers tell me we are spending $54 billion now on servicing a debt built on good intentions and poor outcomes. We have ballooned the public service. There are so many places where priority decisions need to have been made, and the government has not done that. It is the very people the government purports to help who are being hurt the most.
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- Apr/30/24 11:28:31 a.m.
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Mr. Speaker, I am a Conservative. I believe the market mechanism is the most efficient way of transferring the values of goods and services, but markets only work when there is a balance of power. I come from the agriculture sector, but that accounts for a whole host of sectors. The best way to have proper levels of profit, which drive further innovation, is having a functioning market system that incents competition. Sometimes we do not have that in this country, given our size. We have oligopolies, oligopsonies and monopolies, and I will not get into all the rest of it. However, there are structures needed to keep a functioning market going. We need to do more work in some areas on that in the country, particularly in the sector I come from, which is agriculture and food.
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- Apr/30/24 11:30:49 a.m.
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Mr. Speaker, I was at breakfast this morning with members of the insurance industry, who outlined exactly their view of this pharmacare program. They said that the monies committed just in this budget alone would provide the full formulary for all the drugs missing by those not covered under other drug plans. They then outlined all of the risks of people dropping their other plans and switching to a public plan. The dollars are going to go into the public purse as opposed to actually helping the people who do not have coverage. If the definition of deplorable is handing the government a balanced budget when it took power, I will take deplorable every day.
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