44th Parl. 1st Sess.
May 10, 2024 10:00AM
- May/10/24 11:42:45 a.m.
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Madam Speaker, Conservatives talk down our economy every day in the House, while in reality, Canada's economy has shown great resilience, despite the global shocks it has been under. We have the lowest debt-to-GDP ratio, the lowest deficit in the G7 and an AAA credit rating that has been reaffirmed.
Warren Buffett, while talking about investing in Canada, said, “We do not feel uncomfortable in any way, shape or form, putting our money into Canada”.
The IMF, in the most recent Fiscal Monitor, rated Canada as number one for budget balance, and this year's budget puts our healthy national balance sheet to work—
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Madam Speaker, I am pleased to speak on Bill C-59, an act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023, and certain provisions of the budget tabled in Parliament on March 28, 2023. The bill would advance the government's economic plan to make life more affordable, build more homes faster and build an economy that works for everyone.
To build an economy that works for everyone, the bill delivers critical pieces of our fall economic statement. It would help make life more affordable. We are rolling out new measures to strengthen our economy, combat climate change and forge excellent career opportunities for Canadians, now and in the future.
The Liberals' plan is already yielding results and we continue to push forward. We are advancing Canada's clean economy with a clear timeline for deploying all investment tax credits by 2024. We are launching the Canada growth fund as the primary federal issuer of carbon contracts for difference. We are progressing the indigenous loan guarantee program.
Canada's economic prosperity increasingly depends on a focused strategy to boost growth, particularly in a globally competitive environment. The nation's future success relies on enhancing productivity, innovation and investments in pivotal sectors, such as technology, clean energy and advanced manufacturing. These fields are vital not only for generating high-quality jobs but also for maintaining Canada's competitive edge internationally.
Additionally, empowering small and medium-sized enterprises with supportive policies and tax benefits is crucial to foster entrepreneurship and economic expansion. Equally critical is attracting and retaining top talent. Policies that encourage skilled immigrants to settle in Canada, coupled with significant investments in the education and training of Canadians, are essential to develop a workforce capable of leading in a high-tech, competitive global market.
Canada stands out among G7 countries for maintaining the lowest deficit and net debt-to-GDP ratios, showcasing exceptional fiscal management. This indicates a more sustainable economic position compared to other G7 countries like the U.S., U.K., Germany, France, Italy and Japan, which generally face higher debts and deficits relative to their GDPs.
This fiscal prudence in Canada supports economic stability and investor confidence. Canada's strategic financial policies enable it to better manage economic fluctuations and invest in future growth.
Among G7 nations, Canada's credit rating is ranked near the top. Major credit rating agencies frequently cite Canada’s prudent fiscal policies, low debt-to-GDP ratio and robust institutional framework as key factors supporting its high rating. This strong credit status enhances Canada's ability to attract foreign investment and borrow at lower interest rates, significantly benefiting the economic environment relative to other G7 countries.
On advanced technologies like artificial intelligence, our approach in promoting reflects a robust and proactive strategy aimed at both fostering innovation and ensuring responsible development within the sector. Canada is globally recognized for its influential role in the artificial intelligence sector, distinguished by its significant contribution to AI research and development.
The nation's focus on AI underscores its dedication to technological progress and strategic economic integration. Leading the way in AI innovation are Canadian universities and research centres, which are vital in producing cutting-edge research and attracting international talent. AI's relevance to the Canadian economy is substantial, serving as a key economic engine.
This is supported by major governmental investments, including the $2-billion artificial intelligence compute access fund and the Canadian sovereign compute strategy, aimed at equipping Canada with the infrastructure and resources needed to sustain its competitive advantage in this critical field.
Artificial intelligence technologies in Canada find applications across diverse sectors, such as health care, environmental protection, agriculture, manufacturing and finance, promising to elevate productivity, competitiveness and job quality. For the companies in these sectors to adapt these AI technologies in their operations, we have provided $200 million. By proactively enhancing its AI ecosystem, Canada not only bolsters its global stature but also secures its economic future, positioning AI as a fundamental pillar of its national strategy for long-term growth and innovation.
Canada is strategically established as a significant contributor to the global supply chain for the critical minerals necessary for manufacturing advanced batteries in electric vehicles and energy storage systems. The country's abundant resources of lithium, cobalt, nickel and graphite make it a key player in the clean energy transition.
In response to the growing importance of these minerals for the global economy and environmental sustainability, we are actively expanding our mining and refining capabilities. This enhancement not only meets domestic demands for EV production but also serves international markets, especially those transitioning to greener technologies. We support this sector with favourable policies, substantial investment and collaborations with private companies and international partners. These initiatives aim to create a secure, sustainable and competitive supply chain that utilizes Canada’s natural resources responsibly.
Additionally, we prioritize partnerships with indigenous communities in mineral resource development, promoting inclusive growth and sustainable practices, thereby reinforcing Canada's reputation as a reliable and ethical source of critical minerals internationally. We are also promoting “one project, one environmental impact assessment” to speed up the implementation of projects.
Our strategic focus on economic growth ensures the sustainability of social programs and the continuation of high living standards amid an uncertain global landscape. After a contraction of 0.1% in the third quarter of 2023, Canada's GDP rebounded with 0.2% growth in the fourth quarter. In February, Canada's inflation rate was 2.8%, down from 2.9% in January. It rose slightly to 2.9% in March, roughly in line with the Bank of Canada's forecast.
Statistics Canada reported today that the economy added approximately 90,000 jobs, far exceeding the anticipated 20,000 positions. This marked the most robust month for job creation since January 2023. Nevertheless, the unemployment rate remained constant at 6.1%. These figures indicate that employers are ready and capable of hiring additional staff, despite the economic challenges posed by increased interest rates.
Bank of Canada governor Tiff Macklem has mentioned a possible rate reduction as soon as June. I have been saying for the last 12 months that we will see interest rate reversals starting mid-2024. Recent months have seen quicker-than-expected easing of price pressures, boosting the Bank of Canada’s confidence that inflation is returning to target levels.
The current high interest rates, which aim to curb borrowing and cool inflation by making debt more expensive, may not need to be maintained much longer. We are achieving a soft landing of the economy, though many had predicted we would fall into recession
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- May/10/24 12:25:24 p.m.
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Mr. Speaker, the legislative agenda sometimes moves at its own pace, but the key thing is that the measures we have taken since the last fall economic statement and the budget that we announced have already started yielding results. Today, Statistics Canada came out with a report that shows a gain of 60,000 jobs against an expected gain of just 20,000 jobs. The unemployment rate has actually remained steady at 6.1%.
As I have been saying for the last 11 to 12 months, the interest rate will start getting reversed about the middle of this year. The Bank of Canada has already indicated that inflation is coming down. I think it is around 2.9%. It is within the Bank of Canada's range.
With the economy showing progress, we have achieved a soft landing, which many predicted would not happen. Rather, many had predicted that we would go into a recession, which has not happened. It does not matter when it is getting implemented. The effects of our measures have already started yielding results.
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- May/10/24 12:27:55 p.m.
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Mr. Speaker, I rise in the House today in opposition to the Liberal budget. I am confounded by the fact that it has been called “building a strong economy that works for everyone” when the economy is neither strong nor working for everyone. That should be quite obvious to anyone paying attention.
In the spirit of my former colleague at the National Post, Rex Murphy, I would like to take some time to speak to the concerns of everyday hard-working Canadians to try to help make sense of how a government can call a budget, at this time and in this economy, strong and working for everyone.
I have been in Ottawa now for just over a month. I was sworn in as a member of the House in April. One of my key observations is that we have a Liberal government that is living in an alternate reality from the one I lived in before I was in politics and the one I cling desperately to every time I am here. It seems as though, in this economy, we have Liberal elites experiencing one thing and everybody else experiencing something else.
There are some things I would like to share with the Canadian people that I have observed since April when I was sworn in. For the last two weeks, I have heard the Liberal member of Parliament for Whitby defend high grocery bills and make excuses for the fact that it is very expensive for families to purchase the food they need, never mind the healthy food they need. Earlier today, he went on and on about that.
Last week, he said, “Mr. Speaker, I know that the member opposite feels that grocery prices are too high, and they have been, certainly. However, the CPI index has shown that food prices are stabilizing in our economy, which is good news for Canadians.” I would like to point out the obvious. Canadians listening to me right now might be asking if it is good that high grocery costs are stabilizing and if the objective of the government should not be to bring down the costs since they are so high. This is a good window into the kind of thinking going on. This is what I mean when I say we have an economy for Liberal elites and one for everybody else. Let us continue exploring this.
The day before the Liberal MP for Whitby made the comment that grocery prices are stabilizing, despite being obscenely high, a new food bank opened in Whitby. In his riding, the day before he said in Ottawa that things are going great and he has good news for Canadians, a new food bank opened up down the street from his constituency office. This is an alternate reality. The Liberals are creating some kind of bizarre picture of what is going on in this country, and people deserve to know that. They are saying how dare the Liberals produce a budget and call it “building a strong economy that works for everyone”.
Let me share some more observations from what I have seen since coming to Ottawa last month. Yesterday, across the street at the housing committee, Trudeau's housing minister, the member for Central Nova, said something that I had to ask him to repeat just so I could confirm it was even true because I was shocked. I thought I must have misheard him, but no, I heard him correctly. He said that the Liberal government's national housing strategy has exceeded its objectives. How is that possible? How is it possible that in this economy, they are running around Ottawa saying they have exceeded their objectives?
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- May/10/24 12:38:06 p.m.
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Mr. Speaker, on the issue of the carbon tax, I would like to hear what the member's thoughts are specifically as they relate to the over 400 Canadian economists who have signed an open letter stating that more people get back more than they pay, confirming what the Parliamentary Budget Officer said. They state that it is good environmental policy and, most importantly, good economic policy, which one would think the party that purports itself to be the champion of running an economy would agree with.
Is the member then suggesting that those 400 Canadian economists are just Liberal elites? Maybe he is, and that is fine, but can he confirm that?
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