Senator Gold: Canadians don’t have to wait because the government does take the economy seriously, as reflected not only in the details of the Fall Economic Statement, but also in the credit ratings of well-known and respected rating agencies.

Hon. Donald Neil Plett (Leader of the Opposition): Leader, since the finance minister unveiled her Fall Economic Statement earlier this month, we’ve heard repeated assurances from your government that it has been fiscally prudent. You’ve stated that here. This was challenged by the Parliamentary Budget Officer, or PBO, when he and the finance minister appeared before the House of Commons Finance Committee on Monday. The PBO’s office calculated that the government had announced $52 billion in net new measures over the span of six years. Allow me to quote from the PBO directly:

Would I qualify this as restrained spending growth? The answer is unsurprisingly, no. When the government has $81 billion in fiscal room and spends $52 billion of that, even after taking into account new tax measures, it’s not called keeping one’s powder dry.

Senator Gold, why is your government not exercising any fiscal restraint in the face of the upcoming economic uncertainty?

Senator Plett: Senator Gold, in the government’s Fall Economic Statement, they noted that the cost of the Canada workers benefit would be increasing by $4 billion this year. The problem with the increase of $4 billion, however, is that — again, according to the Parliamentary Budget Officer, or PBO — most of it will go to people who are not actually eligible for the benefit.

I’m not sure that this government can walk and chew gum at the same time, Senator Gold. The PBO said:

The substantial cost of this FES measure is largely due to the Government’s policy decision not to recoup these advance payments when recipients’ incomes rise and they become ineligible for benefits, or eligible for lower benefits.

That report goes on to say:

Not requiring repayment of federal benefits for ineligible individuals is a pronounced departure from the existing federal tax and transfer system.

Senator Gold, why is the government spending $4 billion to give tax benefits to people who will not even qualify for them?