Hon. Marc Gold (Government Representative in the Senate): Thank you for your question. The government, first of all, shares the pride of our P.E.I. potato producers’ long history of producing the best, highest quality potatoes in the world for Canadians and international consumers. We know the issue to which you refer has touched the lives of many Islanders, from multi-generational family farms to packers, shippers and many others.

I understand that, while additional potato wart detections are possible, the risk of spread is heavily mitigated by science-based measures, including those in the Potato Wart Domestic Long Term Management Plan and the potato wart Ministerial Order. This is an important industry for all of Canada’s economy, and the government has provided significant support to help farmers through this difficult period, including about $28 million for the Surplus Potato Management Response plan to support potato producers during these trade disruptions. The government will continue to work with potato farmers to alleviate the burden that they still face.

The Hon. the Speaker: Are senators ready for the question?

Hon. Robert Black: My question is for the Government Representative in the Senate.

The government’s Budget Implementation Act, 2017 introduced a tax provision on beer, wine and spirits which would result in an automatic increase to excise duties at the rate of inflation every year. When the escalator alcohol tax measure was first proposed, Canadian brewers, wineries and distillers indicated to the government that it was a bad idea to impose a permanent, automatic tax-increase mechanism that would not take into account economic conditions.

They were not alone in calling for its removal; in fact, the Standing Senate Committee on National Finance passed an amendment to the Budget Implementation Act, 2017 to remove that escalator tax. However, it was ultimately unsuccessful in the other place, and this chamber did not insist upon the amendment.

As such, we will see an increase in alcohol taxes of over 6% this coming April.

Canada already has some of the highest taxes in the world: On average, 47% of the price of beer, 65% of the price of wine and 80% of the price of spirits are allocated to taxes. As of 2021, Canadians were already paying about $20 billion per year in alcohol taxes. Any further increase in tax will harm not only our breweries, wineries and distilleries, but also those along the supply chain.

Senator Gold, will the government commit to re-evaluating the alcohol escalator tax to ensure Canadian consumers, alcohol producers and those involved along the supply chain — from agriculture, to manufacturing, to the food services industry — are taxed fairly?

Hon. Marc Gold (Government Representative in the Senate): This is a serious problem, and thank you for raising it. One in five kids go to school hungry. Those of you who watch “Les coulisses du pouvoir” would have seen Minister Gould just this past Sunday explain the work she has begun with her counterparts across the country to see if a proper national policy and framework for food security for students can be implemented. It will not be an easy task, given exclusive provincial jurisdiction over education and health. Nonetheless, it is the responsibility of all Canadians to make sure that our kids are properly supported when they go to school.

This government is taking the lead in initiating that with provinces and territories, and I hope, as I’m sure we all do, that they succeed.

Senator Plett: It sure is difficult to defend the indefensible, isn’t it?

Leader, you will appreciate that this is undoubtedly a source of great confusion and concern for Canadians. On the one hand, they hear economists sounding the alarm about a recession and cautioning against increased spending during an inflationary period. On the other hand, they see their government carrying on with its spending in direct opposition to the advice of economists.

Leader, does your government use different economics textbooks than Canadian economists, and, if so, can you please share them with Canadians?

Senator Black: Senator Gold, we know that bars and restaurants were deeply impacted by the pandemic. Further increases in alcohol tax will increase their already-high operating costs, and will reduce their ability to attract customers and retain employees as these businesses continue to work to survive. I would like to highlight that the escalator tax not only impacts the hospitality sector, but also the agriculture and agri-food sector, other supply-chain members and consumers.

I think many of you would agree that now is not the time to increase alcohol taxes on Canadians, or on our struggling restaurants, bars and domestic alcohol producers.

Senator Gold, as we all know in this chamber, the government is already working on measures to implement Budget 2023. In the interests of saving all Canadians money, will you ensure your government is aware of this issue, and remind them of this chamber’s amendment in 2017, as they prepare for their upcoming budget implementation act in 2023?

Hon. Marc Gold (Government Representative in the Senate): It must be great to be the opposition because you can say whatever you want with no accountability.

No, the government does not accept this characterization of its approach to addressing crime — nor is it appropriate, in my humble opinion, to use the tragic rise of gun violence, and the impacts that has on communities, including my own, to score political points.

This government is serious about controlling illegal firearms. It has put into place serious gun legislation and measures, over the objection of some members in this chamber and in the other place, in order to address gun violence in this country. It will continue to do so in the best interests of Canadians.

Hon. Donald Neil Plett (Leader of the Opposition): Leader, Canadians are bracing for a recession in 2023 and are adjusting their budgets to prepare for the economic uncertainty that will come with it. Your government, however, is not doing the same. Rather, in typical Trudeau fashion, the NDP-Liberal government is continuing to do more of the same, which is to spend like the good times will never end.

The Minister of Finance keeps assuring us that the government is being prudent, yet her recent fiscal update projected spending to be $472.5 billion this year. That is $20 billion more than her budget forecasted back in April, which already contained $90 billion in extra spending compared to pre-pandemic. Leader, is this what you and your government call fiscal prudence?

The Hon. the Speaker pro tempore: Is it your pleasure, honourable senators, to adopt the motion?

Senator Plett: Sure, so let’s buy some more airplanes that are not operational. We would also support that they not fly.

Leader, in 2015, the Prime Minister loudly proclaimed that he would not buy F-35 fighter aircraft. Here we are, seven years later, and the government has apparently changed its tune, though we still don’t have any confirmed purchase of any new aircraft. Instead, we bought 40-year-old F-18s from Australia, and we have been forced to extend Canada’s equally old CF-18s in service.

Leader, will you table a report in this chamber on what the total cost has been to buy and then bring these 18 used aircraft to operational condition? Will you also table a report on the additional costs involved in keeping our equally old CF-18s operational until new aircraft finally arrive?

Senator Gold: Thank you for your question. As the Minister of Finance reported, and as many economists have affirmed, this government’s position, as reflected in the Fall Economic Statement, is a balanced and responsible one. Yes, there is some targeted increased funding to help Canadians, students and others, get through this difficult time, which is still affecting them — indeed us all — because of the rising cost of living.

At the same time, the government has set clear targets and has exercised considerable restraint in spending so as to not run counter to the policy that the Bank of Canada has implemented and is implementing to fight inflation. This is a responsible, balanced approach, and it is serving Canadians well.

Hon. Brian Francis: Honourable senators, I have the honour to table, in both official languages, the eighth report (interim) of the Standing Senate Committee on Indigenous Peoples entitled Voices of Truth and Reconciliation: Voices of Youth Indigenous Leaders 2022 and I move that the report be placed on the Orders of the Day for consideration at the next sitting of the Senate.

(On motion of Senator Francis, report placed on the Orders of the Day for consideration at the next sitting of the Senate.)

[Translation]

Senator Quinn: Senator, I applaud the initiative you are taking here, but we now have a warning on alcohol products regarding potential defects during pregnancies. You have listed many things that you would see on the bottle, but the main message, as I take it, is the correlation between alcohol consumption and the potential to promote cancer within a person.

Is there a way to consolidate it and bring it down, as is indicated on cigarette packaging? As I understand it, it says “Smoking can cause cancer.”

What I hear is a lengthy description to go on a label. Would it not be better to consolidate and get that main message through?

Senator Brazeau: Thank you, senator, for the question. As I said, the crux of the bill is not to suggest, but, because of the science and research, to say that even drinking minimally can cause cancer. It is that simple.

Obviously, this bill needs to get to committee so we can have the real experts debating, discussing and recommending what should be done in terms of the actual labelling, but the message is drinking alcohol causes cancers.

(On motion of Senator Martin, debate adjourned.)

On the Order:

Resuming debate on the motion of the Honourable Senator Dalphond, seconded by the Honourable Senator Harder, P.C., for the second reading of Bill C-233, An Act to amend the Criminal Code and the Judges Act (violence against an intimate partner).

The Hon. the Speaker: Honourable senators, I wish to draw your attention to the presence in the gallery of Sviatlana Tsikhanouskaya.

On behalf of all honourable senators, I welcome you to the Senate of Canada.

Hon. Patricia Bovey: Honourable senators, I have the honour to table, in both official languages, the report of the Canada‑Europe Parliamentary Association concerning the Annual Session of the Organization for Security and Co-operation in Europe Parliamentary Assembly, held in Birmingham, United Kingdom, from July 2 to 6, 2022.

Hon. Donald Neil Plett (Leader of the Opposition): Senator Gold, potato farmers in Prince Edward Island are still reeling from the impacts of the export ban on P.E.I. potatoes, which forced them to destroy some 250 million pounds of potatoes and is estimated to have cost the industry more than $50 million. While shipments to our southern neighbour have resumed as of April, farmers in P.E.I. are concerned that the damage is done, with the loss of long-term customers in the United States. Andrew Smith, a farmer in Newton, is quoted in a recent CTV article saying:

We lost that business and it’s gone, and I would expect it’s gone to an American grower who doesn’t have to deal with protectionism at the border.

As it currently stands, there is still a ban on seed potatoes, which comprises roughly 10% of the Island’s annual output, pending the outcome of a more thorough review by the U.S. Department of Agriculture that could take years to complete, Senator Gold.

Leader, I think our farmers have been patient enough. When will you finally give the farmers in Prince Edward Island an immediate plan with actionable steps to ensure the restoration of full market access?

Senator Plett: Senator Gold, it is clear that your government’s policies are directly working against farmers on various fronts. As if the import ban wasn’t enough to worry about, they also have to deal with inflated costs brought on by this government’s failed economic policies. P.E.I. has stated that this year’s potato crop was the most expensive crop on record due to the rising costs of fertilizer and diesel fuel. In many cases, producers find their fertilizer bills have more than doubled, and it goes without saying that if costs for farmers are rising, it will surely be felt by Canadians at the grocery store. It already is.

Senator Gold, is your government prepared to acknowledge that its policies are driving up costs at the farm gate? Or does the Prime Minister insist on continuing to ignore what farmers across the country are telling him?

Senator Gold: Thank you for your question, senator. The government is not ignoring what farmers are saying, or, indeed, what any other constituency in this country is saying. The government’s policies on the economy have demonstrated to help Canada through a most difficult time. The government will continue to support our economy as it goes forward, and all sectors of the economy. With regard to the issue of fertilizer and other policies, the government is committed to continuing these policies to help us transition to a cleaner, more sustainable future.

Hon. Elizabeth Marshall: My question is for the Leader of the Government in the Senate. Senator Gold, during this fiscal year, we have approved the Main Estimates, Supplementary Estimates (A) and the Budget Implementation Act. We are now studying Supplementary Estimates (B) and the 2022 Fall Economic Statement. But the government has still not released the Departmental Results Reports for last year. That was eight months ago. This was the subject of much discussion at the Finance Committee this morning. My question is: When will the government table the Departmental Results Reports, where are they and what is the problem?

Hon. Marc Gold (Government Representative in the Senate): Thank you for your question, senator.

The Departmental Results Reports are a useful tool, as you quite pointed out. The last ones were tabled in February, and they informed the scrutiny of the Main Estimates in March. As the senator would know, there is actually no legal deadline for the tabling of the Departmental Results Reports, but — as I believe I reported in response to an earlier question of yours not so many weeks ago — I understand that the government is still tracking to table the next departmental results this fall, and we still have a bit of fall left in us.