44th Parl. 1st Sess.
May 10, 2024 10:00AM
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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moved:
That:
(a) the House recognize that,
(i) over 20% of food produced in Canada goes uneaten and wasted, costing the Canadian economy tens of billions of dollars,
(ii) individuals, families, and communities across Canada face critical levels of food insecurity,
(iii) surplus food unfit for human consumption may serve as animal feed, supporting farmers and reducing national methane emissions,
(iv) in 2015, the United Nations set Sustainable Development Goals that included a commitment to reduce food waste by 50% by 2030,
(v) national strategies have been developed across the world to reduce food waste by incentivizing food donations and preventing the destruction of unsold yet safe and edible food products; and
(b) in the opinion of the House, the government should develop and implement a national strategy to reduce food waste and combat food insecurity to,
(i) establish a National Food Waste Hierarchy,
(ii) align municipal and provincial regulations concerning food waste reduction and food donations,
(iii) lead efforts to reduce the adverse environmental impact of unused food resources,
(iv) establish protocols and partnerships to facilitate food redistribution and rescue efforts,
(v) identify policy and fiscal incentives to reduce food waste,
(vi) raise public awareness regarding food waste, food insecurity, and associated government initiatives.
He said: Madam Speaker, it is an honour for me to rise today and speak to my motion, which calls on the House to recognize the problem of food waste and food insecurity in our country and which advocates in favour of creating a national strategy to combat this challenge.
Fundamentally, what I address today is a question of resource efficiency. Every year, billions of dollars' worth of food goes to waste in Canada. In 2019, it is estimated that up to 58% of our national food production, amounting to a staggering 35.5 million tonnes, was lost or wasted. It is also estimated that over one-third of such food waste is avoidable and can be recovered. Such waste occurs right across the food production supply chain.
A variety of factors contribute to food waste. Price fluctuations and incorrect forecasts can leave farmers with surplus food that they are unable to sell and do not harvest. Produce graded by processors can also be deemed of incorrect size or visually subpar to be sold to retailers. Overstocking by grocery stores is also a common practice. Furthermore, a variety of public regulations and private practices regarding best-before dates, food labelling, and vendor supply agreements frequently lead to the destruction of unsold but wholesome food. As such, we should make every effort to ensure that we channel such resources to our communities.
The direct economic costs are substantial. A 2019 report from Second Harvest estimated that the annual retail value of recoverable food waste is $49 billion. The downstream effects are also significant if we consider that wasted resources such as energy, land, labour and capital could be poured into producing food. These are costs that directly impact farmers and firms across our food supply chain and are ultimately reflected in higher costs for all Canadian consumers. As with many injustices, this is a cost that those people with the least resources, such as family farmers and lower-income households, bear the brunt and burden of.
Compounding all of this, food waste represents a major source of greenhouse gas emissions. Food disposed of in landfills is left to rot, where it decomposes into methane gas. Methane is a highly potent greenhouse gas. According to some calculations, methane traps 80 times more heat in the atmosphere than carbon dioxide. Accordingly, methane emissions from food waste represent approximately 56.5 million tonnes of CO2 equivalent, approximately 10% of our national total in 2019. Food waste in landfills also contributes to local soil and groundwater pollution. Due to such considerable environmental impacts, the 2015 United Nations Sustainable Development Goals included a global commitment to reduce food waste by 50% by 2030.
Most significantly, food insecurity is on the rise in our country. After considerable progress over many decades, food insecurity has increased since the global pandemic in 2020. Regrettably, 18% of Canadian families are estimated to have experienced food insecurity at some point throughout 2022. While food recovery efforts alone cannot address this challenge, it can play a key role in expanding access to charitable and community-based food organizations. Furthermore, by implementing national initiatives to reduce and recycle food waste, we can avoid food loss in households and potentially create downward pressure on food prices as inefficiencies are ironed out of the continuum of the supply chain.
It bears highlighting that our food supply chain is lengthy and employs well over two million Canadians in the production, transportation, processing, distribution and sale of food. This, I might add, represents well over 10% of our total workforce.
Food waste throughout the continuum from farm to fork impacts households throughout our beautiful country and harms our environment. Clearly, a robust and comprehensive national strategy is much required.
Food waste and food insecurity are economic and social challenges that affect every province and territory in our country. We must therefore introduce prudent policies at the federal, provincial and municipal levels. By crafting a national strategy built in full consultation and close coordination with other levels of government that also incorporate the expertise of industry, stakeholders and the non-profit sector, the federal government can play a crucial role in curbing and mitigating the challenge of food waste and food insecurity.
In addition, sustainable food policy is an important hallmark of any healthy society. While we cannot eliminate food waste, we can ensure that beneficial and effective pathways exist for farmers and manufacturers. We should also consider recycling initiatives. Considering innovative policies and programs is very much in line with recommendations adopted by Parliament's Standing Committee on Agriculture, in particular in its eighth and 10th reports tabled in 2023.
I would also be remiss if I did not recognize efforts adopted by numerous other countries around the world. We can be guided by the efficacy of new initiatives adopted by our peer countries in the G7, as well as more broadly among the OECD countries. For example, initiatives adopted in South Korea have increased that country's national food waste recycling rate from 2.6% in 1996 to 95% in 2022.
Another country that has achieved impressive results is Japan. According to the United Nations Environment Programme's “Food Waste Index Report 2024” released earlier this year, Japan has succeeded in reducing its per capita food waste by 28% since 2008 after it commenced quantifying food waste and ushered in a variety of reduction initiatives. Another good example is the concerted efforts made by the French government since 2016 that incentivize surplus food donations and reduce waste in accordance with EU food waste prevention targets. Italy has also been busy introducing reforms over the last several years.
More recently, the United Kingdom announced a comprehensive government food strategy in 2022 that includes provisions to tackle food insecurity, food waste and sustainability. Similarly, last December, the U.S. Department of Agriculture published a draft national strategy for reducing food loss and waste, and recycling organics. It is indeed high time that Canada join these countries in identifying innovative approaches to reduce food waste.
My motion outlines several key pillars such a national strategy should adopt. In an ideal world, not a single kilogram of food waste should be dumped into a landfill and left to rot into methane gas. While we cannot ensure that food waste is entirely avoided, we can certainly take steps to ensure that it is reduced considerably. Wholesome foods should be rescued, recovered and redistributed by non-profits, and what waste remains should be disposed of in a renewable manner.
Reduction initiatives are the most effective way to combat food waste. Tools are also available to ensure that efforts are made to economically benefit every link in our food supply chain. Frankly, food waste is currently treated as a part of the cost of doing business and is reflected in every individual Canadian's weekly grocery bill. The motion before us could begin the process of departing from the status quo.
The food industry should be encouraged to set reduction targets and to improve efficiencies in its operations. On the consumer side, the government can examine guidelines concerning packaging and best-before dates. Initiatives have been adopted in other peer countries that optimize packaging requirements to preserve food longer, while less restrictive best-before dates could ensure that consumers are not compelled to prematurely dispose of groceries that are wholesome and healthy yet past their retail prime.
Speaking of rescue, the federal government can play a crucial role in creating protocols and guidelines and in forging partnerships that can significantly incentivize the donation of surplus food.
For example, during the pandemic, the Ministry of Agriculture and Agri-Food created a surplus food rescue program. The program is estimated to have redirected 8 million kilograms of food that would otherwise have gone to waste. It clearly demonstrates how the federal government has supported and can continue to support food recovery programs.
While certain large retailers are currently donating a percentage of their food waste, further action is required to incentivize donations and to connect smaller retailers, producers and processors with community-based food programs. As such, the federal government should examine policy barriers and business practices that obstruct donations, establish clear national guidelines and regulations and adopt best practices for best-before labelling and perishable food donations.
An opportunity also exists to create information systems to enable food rescue organizations to effectively track and share the need for specific produce at various community food programs. We should also examine fiscal incentives that encourage food donations that have been adopted by several of our provincial governments as well as by other peer countries.
We must encourage private actors to create partnerships and logistical pathways that would allow wholesome food to be channelled towards community food programs. Farmers in Ontario, British Columbia and Nova Scotia who donate produce to such programs can claim a non-refundable tax credit worth 25% of the fair market value of the donation. A similar tax incentive exists in Quebec that permits tax credits for up to 50% of the value of food donated. According to Food Banks Canada, during the first year of Quebec's program alone, an additional 460,000 kilograms of nutritious food was donated to Quebec food banks.
Such initiatives simultaneously reduce waste, help Canadians in need and support our hard-working farmers. Accordingly, a national tax credit for food donations could reinforce existing provincial incentives. Such a tiered approach has been used effectively in the United States since early 2011, as the U.S. federal government and all but one state government offer such tax credits.
Finally, food waste can be recycled into other economically valuable products. In doing so, firms can profit while reducing associated environmental impacts. There are many ways to accomplish this. Surplus agricultural produce that cannot be donated can frequently be processed into animal feed, providing an economic boon to farmers and ranchers alike. Composting on an individual, municipal or industrial scale is also a sustainable way to treat and eliminate food waste. Composting also creates soil conditions and fertilizer that can be returned full circle to help our nation's food producers. Lastly, anaerobic digestion facilities can utilize bacteria to create biofuels or fertilizers out of food waste.
To supplement the initiatives referenced above, the government can also increase efforts to raise awareness of the true costs and impact of food waste, and identify steps that can be taken by households and private firms to combat the problem.
All parties of the House have explicitly recognized the need to reduce food waste, and I have no doubt that every member of the House can recognize the need for our country to tackle food waste and food insecurity. I therefore hope that each of them will see fit to support my motion to commence a comprehensive national dialogue on the need for our country to step up in tackling this challenge.
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