- Member of Parliament
- Member of Parliament
- Bloc Québécois
- Joliette
- Quebec
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- Dec/1/23 12:41:54 p.m.
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The hon. Deputy Leader of the Government in the House of Commons wishes to rise on the same point of order.
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- Mar/23/23 11:11:24 a.m.
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Madam Speaker, thank you for those clarifications. It is still a grey area. MPs learn something every day in the House.
Crises teach us so much because they subject our societies to pressure. They highlight our strengths and our weaknesses. However, for the past three years, we have been operating from inside a Matryoshka doll set of crises that have revealed weaknesses in both our economic structure and government action. There was the COVID‑19 crisis, lockdowns and a stalled economy.
First, let us talk about the public health crisis. The COVID‑19 crisis revealed the system's extreme fragility, aggravated by the aging population. It was primarily caused, however, by chronic federal underfunding, which has escalated since 2017 when health transfers stopped being tied to rising costs.
A better division of health care costs, including adequate and predictable federal funding, would have protected our health care system from potential collapse. Moreover, recent agreements are insufficient to stave off that threat. At best, they temporarily freeze, at an insufficient level, the federal share of health care funding, nothing more. In 10 years, Ottawa will contribute 24% of health care costs, which is the same percentage it was contributing when the current Prime Minister took office in 2015.
We know that ending the government's disengagement is not enough to rebuild the health care system. The government needs to tackle the chronic underfunding with a significant reinvestment if we have any hope of being able to deal with the coming demographic crisis. Quebec and the Canadian provinces have said it again and again while providing ample evidence to support their case, but Ottawa is missing in action. Ottawa is the one holding on to the money that Quebec and the provinces urgently need on a ongoing basis.
COVID-19 created an income crisis for individuals by forcing millions of people to stop working temporarily. It brought to light the flaws in the employment insurance system, which covers only a small portion of the contributors who lose their jobs. Because the system was inadequate, the government was forced to compensate by creating a whole host of special programs, which were often not well-thought-out, poorly targeted, ineffective and costly. However, these programs expired, as did the relaxed EI rules, which are now back to the way they were before 2020 and before COVID showed us how inadequate they were.
With the threat of a recession looming, now is the time to fix the problems with the EI system, to make it more accessible and to adapt it to non-standard jobs, which are becoming increasingly common. Ottawa is refusing to conduct this necessary, in-depth reform.
After the lockdowns, the economy reopened. This reopening of the economy also revealed its share of weaknesses. The housing shortage, caused by years of underfunding and not building enough homes, caused prices to skyrocket. Housing starts, especially for affordable rental housing and social and co-operative housing are still weak in 2023. Things need to change course and fast.
The destabilization of our manufacturing sector made us seriously dependent on foreign suppliers in globalized supply chains, whose fragility was exposed during the crisis. There again, the disruptions led to shortages and high inflation, amplified by a lack of competition, which allowed mass distribution to increase its prices at will. We need to rebuild solid supply chains immediately and improve our competition regime. It is imperative that we improve the resilience of our economy.
All these factors contributed to the increase in prices and then the successive interest rate hikes set by the central bank. We know who is suffering the most from this: people on a fixed income, such as pensioners, low-income earners who cannot cope with the increased cost of essentials, and heavily indebted households that are especially hard hit by rising interest rates, especially young families who recently purchased a home.
As if that were not enough, we are now being rocked by international crises. Aggression against Ukraine is turning Russia into an international pariah and pushing it out of trade and economic channels. That has impacted the price of commodities, oil, grains and fertilizers, all of which have skyrocketed. In addition to reminding us that we need to urgently reduce our dependency on oil, war is affecting the agricultural sector in particular, where input costs have skyrocketed. That sector urgently needs to be given the tools to survive the crisis, as well as help to adopt a more sustainable model: supply management protection, predictability, resilience to annual yield variability and disasters, ecological transition, standards reciprocity and succession planning, among other things.
Then there is China. Its economy is far more diversified than that of Russia, and a rise in tensions is likely to impact many more sectors. In particular, we are completely dependent on China's supply of components needed for high-tech goods and the electrification of transportation. These sectors need a major boost.
We already have a relative advantage because Quebec and Canada have critical mineral deposits. If we move from mining to producing batteries, as the government of Quebec is proposing, we will all have what it takes to become the engine of transportation electrification in North America and become a vital link in new and more resilient supply chains. In that area, Ottawa must align with Quebec to accelerate the rolling out of its strategy.
Finally, there are crises unfolding in slow motion. There are three crises that we can see coming. They have been anticipated and analyzed for a long time, and there is no reason for not implementing the measures needed to address them.
First of all, there are demographic changes. The aging population will put more pressure on health care services and on the public finances of Quebec and the provinces, as we know. As baby boomers retire, this will also have significant economic repercussions. Canada ranks near the bottom of OECD countries when it comes to protecting the purchasing power of retirees. There is an urgent need to preserve seniors' purchasing power to ensure that the demographic shock does not cause a major economic shock, which is why we want an increase in old age security that does not discriminate based on age.
This wave of retirements is problematic for businesses. The labour shortage could prevent us from rebuilding our supply chains if we do not take steps to address the shortage. Incentives must be provided for experienced workers who want to stay on the job. Our businesses need to step up their productivity to help them deal with the labour shortage. The temporary foreign worker program must be transferred to Quebec, which will be able to make it more efficient and bring it in line with Quebec's labour policies.
Then there is the climate crisis. Again, it has been unfolding for a long time, and we have analyzed it from every angle. However, we have been slow to act. Whether we are talking about shoreline erosion or the increase in extreme weather events, climate change will put enormous pressure on our public infrastructure. An adjustment fund is needed.
More fundamentally, we must accelerate the transition to a net-zero economy. The money invested in oil and gas must be urgently redirected to the green economy, with a focus on energy efficiency in all sectors, the electrification of transportation, which includes critical mineral processing, the transition from oil to renewable energy, and more sustainable agricultural practices.
As oil companies take advantage of international crises to rake in obscene profits, Ottawa must end all forms of subsidies, including subsidies for carbon sequestration and small nuclear power plants that are designed to produce energy to increase oil sands production. This money must be redirected to accelerating the transition.
Given the enormity of the task and the urgent need for action, the financial sector will have to participate and gradually redirect its oil investments to the green economy. Ottawa must get the banks to step up to the plate by forcing them to integrate climate risks into their investments. Tens of billions of dollars could be made available for the green transition.
There is the ongoing issue of the fiscal imbalance, which is causing major problems that are limiting the government's ability to address the many challenges it faces. There are three types of problems. First, Ottawa, which brings in more revenue than it needs to discharge its responsibilities, is not making an effort to manage its own affairs properly. The federal government is notoriously ineffective, and everything costs more than it should.
I would like to give two examples to illustrate this. It costs the federal government two and a half times more to process an EI claim than it costs the Quebec government to process a social assistance claim. It costs the federal government four times more to issue a passport than it costs the Quebec government to issue a driver's licence. Everything costs more and those are just two examples.
Then, Ottawa uses its fiscal room to interfere in areas that fall under the jurisdiction of Quebec and the provinces. This sort of interference makes the sharing of powers less clear and less sound while undermining our autonomy. Administrative duplication is not in any way efficient. All it does is promote centralization in Ottawa.
I will again give two examples. The first concerns something that happened very recently, specifically the implementation of the dental care program for children. Quebec already provides dental insurance. However, the federal government did not make any effort to harmonize programs and simply created a second program. That is completely inefficient and ends up costing twice as much. It is really outrageous, and the Bloc Québécois has spoken about that many times.
Here is a more general example. People in Quebec have to complete two tax returns when, for years, the Quebec National Assembly and the Bloc Québécois have been calling for a single tax return. That is a useless and inefficient duplication of effort.
Lastly, with regard to the fiscal imbalance, given that Ottawa tightly controls the purse strings of the governments of Quebec and the Canadian provinces, the Quebec government's ability to fully discharge its responsibilities is diminished.
The Parliamentary Budget Officer has been clear: If the trend continues, eventually, provincial governments will no longer be sustainable. They will likely collapse while the federal government's fiscal room will increase considerably. That is what the Parliamentary Budget Officer has been telling us in his fiscal sustainability report year after year.
In other words, unless the trend is reversed, we run the risk of seeing an unprecedented centralization of power in Ottawa, which will take away the Quebec people's ability to control their development according to their needs, strengths, characteristics and wishes.
In that regard, at a time when this government is choosing to contribute six times less for health care than Quebec and the provinces are asking for to fix the system, Ottawa has unprecedented fiscal room that is in excess of $80 billion, or three times the amount of the health care requests.
Let me explain. Ottawa increasingly budgets money for voted items that it fails to spend year after year. When you add up the items that were voted and the spending that was authorized but not spent last year, $41 bilion was left on the table. Let me repeat that. Some $41 billion was left on the table because it was voted or authorized but not spent. This is in addition to another $40 billion in extra fiscal room, according to the Parliamentary Budget Officer. If the federal government wanted to maintain its debt-to-GDP ratio, it could increase spending or reduce revenues by that amount.
When we talk about unprecedented centralization and the fact that the money is here, we are talking about $81 billion in one single year. That is three times the amount the provinces and Quebec were asking for to better fund health care. Ottawa said no and agreed to six times less. That is peanuts. The federal government is gradually stabilizing its share, and the money stays here. That money will be used for new programs that interfere in our jurisdictions. There is no respect for the governments of Quebec and the provinces or for the National Assembly.
It was with these important challenges in mind that the Bloc Québécois drew up its expectations for the 2023 federal budget. We presented them to the minister a few weeks ago. Considering the challenges we are facing, now is not the time for shiny new programs, which are often not within the federal government's purview anyway, nor for pre-election pandering.
Financially speaking, the way to avoid austerity is to be prudent. Economically speaking, the best way to insulate ourselves from the potential turmoil of an extraordinarily uncertain environment is to tackle the fundamental issues. In this period of uncertainty, we need to get back to the essentials. The strengths of Quebec's economy are precisely what is needed to succeed in a rapidly changing world.
Also, the way to meet the current needs of the different sectors of Quebec's economy is to finally step into the 21st century. We have an abundant supply of clean, renewable energy, especially hydroelectricity. In this area, the shift is already under way, and we are ready to move on to the next step, which is a net-zero economy.
If our forests are managed sustainably, they are renewable resources that could be one of the keys to replacing hydrocarbons. More research would allow more processing and greater generation of wealth with this resource. Our proximity agriculture has already espoused the model of the future in favour of short circuits and food security.
We need to help our farmers face the current international turmoil that is inflating input prices and we need to help them develop more sustainable practices. That is the future.
When it comes to critical minerals essential to the redevelopment of supply chains and the electrification of transportation, the only mines in operation in Canada are in our neck of the woods. We need to move from mines to batteries and become an essential link in the chain, especially when it comes to supplying North America.
Obviously, all that development needs to respect the highest environmental standards, in partnership with indigenous communities and with the agreement of local communities. It is good for the green economy, it is good for economic resilience, it is good for strategically positioning Quebec in a changing world.
Another one of Quebec's strengths is its creativity. A stagnant society struggles to cope with change. The antidote is creativity, and Quebec has that in spades. This is especially true for its arts and culture sector, so we must ensure that it maintains its vitality and influence, and the French language is the most vivid expression of that creativity. That being said, this same is true for all fields.
Yesterday's tinkerers are now working in artificial intelligence, creating the next video game, developing the next green finance instruments, working on the aeronautics industry of tomorrow. That is already the case. As Canada's technology hub, Quebec has what it takes to become silicon valley north, as long as we support our cutting-edge sectors.
Finally, there is our social model, particularly our tax and family policies. Because of them, wealth is more evenly distributed in Quebec than anywhere else on the continent. The middle class is larger in Quebec than elsewhere in Canada or the United States and, in a world that is under pressure, that guarantees a more peaceful life and social harmony. That is why it is so important to maintain the Quebec government's ability to take action, and that is why we must seriously address the fiscal imbalance that undermines that ability.
As with all of the expectations set out in the committee report we are discussing, the Bloc Québécois presented a series of requests covering many aspects of Quebec's economy. We outlined them here. They reflect the requests expressed by various sectors of Quebec society when consultations were held by all members of the Bloc Québécois. They respond to Quebec's real needs. They will help Quebec deal with all the existing crises and will make us more resilient. They will enable Quebec to embrace the future with confidence.
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Madam Speaker, I thank my colleague for his speech. In the government's fall economic statement, the word “inflation” appears 108 times.
However, when we look at the measures announced in the economic statement, we see that it is essentially implementing the measures that were in the last budget. Apart from rhetoric, the government is not contributing to the response to current inflation and the risk of recession.
We at the Bloc Québécois had asked the government to refocus on its core missions to better support the most vulnerable, namely by increasing old age security from age 65 on, increasing health care funding and reforming EI.
This government seems to identify the current economic crises, but does not appear to propose any new measures. What does my colleague think of that?
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- Apr/8/22 10:46:31 a.m.
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- Re: Bill C-2
Mr. Speaker, we are facing multiple crises, both current and looming, so we expected this budget to put forward concrete solutions to address the risks associated with these crises.
First is the public health crisis. After living with the pandemic for over two years, we are now entering yet another wave.
Next is the inflation crisis. For months now, inflation has been higher than expected. That seems unlikely to change for quite some time and will probably even go up. People are very worried.
Of course, there is the war in Ukraine, which is directly victimizing the Ukrainian people, who are being subjected to bombings and unspeakable atrocities. This conflict is impacting the whole planet, and we are feeling the repercussions here too.
Finally, there is the environmental crisis, which is causing all the climate catastrophes we have been witnessing.
As the crises multiply, so do the risks. These are uncertain times, and the budget was the best opportunity to protect us from all those risks. This budget, however, despite listing virtually all the problems in detail, addresses virtually none of them. What irony.
What we see in this budget, as we did in the previous budgets and in everything the government does, is a federal government that is more centralizing than ever. The government is once again using the budget as an opportunity to further centralize the federation's power. This is a real pattern. The bulldozer is moving forward slowly but very surely.
Here is one example. The government wants to tackle the housing issue, but it is making threats. It is telling the municipalities that it will cut infrastructure funding if they do not build enough housing. The federal government is once again infringing on other jurisdictions. It is once again centralizing. Once again, paternalistic Ottawa wants to be the be-all and end-all. They want to make all the decisions and tell everyone what to do. That is unacceptable. It is unacceptable for Quebec.
The irony is that, although the House recognizes my nation with its words, the government is trying to force the Quebec nation into the Canadian mould it has created. We can no longer live in our own way. This budget is a reminder of that. It is becoming increasingly difficult to do things our own way.
The best example of that is clearly health care funding. Ottawa has failed to include in the budget any commitments to review its funding for the next five years. We are in the midst of a health crisis. Our system is under maximum pressure. Health care workers are at the end of their rope, and we have had it. Rather than funding the health care system within its means, know-it-all Ottawa is telling us that we are not doing enough, even though it is not providing adequate funding.
While Quebec and the provinces are asking for increased funding with no strings attached, the feds are telling us that they only want to talk about the strings, not the funding. For instance, on page 155, the English version of the budget document reads, “Any conversation between the federal government and the provinces and territories will focus on delivering better health care outcomes for Canadians”.
This means more standards, without funding, even though the Parliamentary Budget Officer points out each and every year that transfers need to be set at 35% to restore the fiscal balance between Ottawa and the provinces. The Conference Board and the Council of the Federation both agree. This is what Quebec wants, what the provinces want and what the Bloc wants, but know-it-all Ottawa says no. Ottawa says we will get nothing except strings.
Transfers are currently set at 22%, and the Minister of Finance justified her inaction by citing a tax point transfer from the 1960s. She has dismissed decades of cuts and ignored all the serious studies on the subject. This is called being arrogant, in a big way.
Now let us talk about seniors. The cost of everything is going up. The cost of food is going to skyrocket because of the war in Ukraine. Seniors are always the first to suffer as a result of inflation. Seniors often live on fixed incomes that are not indexed to inflation. The budget should have done more to help them out, but the feds decided not to do that.
The Minister of Finance then adds insult to injury. In her budget she presents a graph showing that seniors are much wealthier than the rest of the population and that the feds have already done enough.
Groups representing seniors feel betrayed: We now have two classes of seniors and the government is not responding to the needs. The minister presented her little graph saying that seniors have nothing to complain about, they already have plenty of money. That is what we see.
As for inflation, with all the crises that are unfolding, high inflation is especially worrisome. The government should be lending a helping hand to seniors and the least fortunate, but it is doing little to nothing to help.
It should be lending a hand to SMEs, which are the hardest hit by high inflation, including family farms, taxi drivers and bus drivers. There is nothing for them. The feds describe the problem of inflation in the budget, but do not offer any help.
I want to give you a real example showing that Ottawa identifies the problems but does nothing about them. In the budget, there is one paragraph on the problem of the semiconductor shortage. There are specialized businesses in Quebec that we can be proud of and that have existed for several generations. These businesses repurpose trucks into ambulances and armoured trucks, for example, or add custom cargo boxes. That is a Quebec specialty.
As a result of the semiconductor shortage, major truck manufacturers are not getting product out and our specialized businesses are having trouble procuring trucks. We have been telling the minister about this for months.
In December, we even supported Bill C‑2 because she told us that the shortage would be resolved imminently, and she would even send us the figures to prove it. We believed her and we acted in good faith. Nothing was done and we never saw the figures. It was completely false. The problem has only worsened since then.
Businesses now run the risk of going bankrupt. We might lose for good specialized industries that have been operating for generations. The government's role is to support businesses and get them through the crisis.
Businesses joined forces and reached out to the government. They asked to meet with the minister. The Bloc has been waiting for a meeting about this for months, but we have not heard a peep.
The minister mentioned the problem with the semiconductors, but did not offer any solutions. She is not doing anything to save this sector, which is so important to Quebec's economy. All she said was that the government will look into photonics to see whether Canada could manufacture its own semiconductors. There was no indication of when, however.
That is actually not the problem. The government needs to help the companies that are going to shut down, because Ford and GM are manufacturing very few trucks as a result of the semiconductor shortage. These companies just need a little help until the American giants resume production. Has Ottawa abandoned these specialized industries because they are in Quebec? If they were in Ontario would the feds have stepped in? That worries me.
There has been one crisis after another, but the most important one right now is the environmental crisis. The climate is undergoing disruptive changes and we must now take drastic measures if we want to avoid disaster.
Even as the IPCC is saying that we need to drop any new oil projects if we are to stand a chance of avoiding disaster, know-it-all Ottawa goes and does the opposite. It sends its Minister of Environment and Climate Change to announce a one-billion barrel project. This minister is the same person who founded Équiterre with Laure Waridel and climbed the CN Tower for the environment when he was at Greenpeace.
With one gesture, one decision, he has dealt a terrible blow to the planet. Very few humans will have done this much damage to the climate. With this gesture, he undid all of his past work and turned his back on his values and commitments. He threw all that away to serve the federal government, which is a petro-state and an environmental embarrassment.
Elsewhere in the world, environment ministers have resigned for far less than that. From now on, this is how this minister is going to be remembered. I would like to remind the House that Marshall Pétain is not exactly remembered for winning the battle of Verdun.
The Minister of Environment and Climate Change, or the pollution minister, chose to make his announcement the day before the budget, just before the House rises for two weeks. That was intentional.
I thought that the government would include some extraordinary environmental measures in the budget to try to compensate for this terrible compromise, but it did not. Instead, the budget mainly contains measures that are vague and weak, such as a future public-private fund like the Canada Infrastructure Bank, which is a flop.
All the concrete measures in the budget support the fossil fuel industry. The budget allocates billions of dollars for carbon capture projects for the oil sands, a technology that is underdeveloped and that will cost a fortune, if it is ever actually implemented. According to the International Energy Agency, if the private sector were to cover the cost of such projects, it would quadruple the price at the pump.
Furthermore, the feds have announced that they will support the development of small mobile nuclear reactors to allow the industry to extract more oil and sell the gas they save. This is the government's plan for the environment, despite all the risks and health concerns.
To wit, on Wednesday, the Minister of Environment and Climate Change announced a project that will extract a billion barrels and, the next day, the Minister of Finance announced more support for the oil and gas sector. That is Ottawa's plan for the environment.
Illustrating just how far Ottawa is going in the opposite direction of the IPCC report, journalist Philippe Mercure, from La Presse wrote the following:
This report contains lengthy passages about the risks of “lock-ins”, meaning building new infrastructure that will pollute for decades and undermine our efforts.
One would have thought that UN Secretary-General António Guterres was speaking directly to the Minister of the Environment when he presented the document on Monday.
“Climate activists are sometimes depicted as dangerous radicals. But the truly dangerous radicals are the countries that are increasing the production of fossil fuels. Investing in new fossil fuels infrastructure is moral and economic madness,” he said.
Now more than ever, being part of Canada means choosing to be an environmental imbecile in the world's eyes.
The Bloc Québécois had five demands, five unconditional expectations, and called for a suite of more targeted measures. The first four of our five unconditional expectations are not in the budget: health, seniors, green finance and an acceptable transition, and concrete measures to address inflation.
At least the budget addresses first nations housing. That was one of our five demands. It is in the budget, so now all we have to do is hope that, for once, that earmarked money will actually flow and improve the lives of indigenous people. What we have seen to date is that the Liberals vote to put up cash but do not spend it. That causes all kinds of problems, such as lack of access to drinking water, that never go away.
The budget contains housing measures, but the Bloc Québécois obviously does not think there is enough money in the budget for social housing. Housing is a major problem, and the solution is increasing supply. The budget talks about 6,000 affordable housing units, which apparently means a two-bedroom apartment for $1,200 a month. That does not fit with the Bloc Québécois's definition of social housing. The money is there, but much more needs to be done.
As I said at the start of my speech, we are grappling with numerous crises. The government is aware of them and names them in the budget, but does not actually do anything about most of them. Any solutions it does put forward are poorly conceived. That is a problem.
In addition, what we are seeing is an increasingly centralist state that interferes and wants to impose its own model and make everything fit a certain mould. The feds are taking a father-knows-best approach and telling the provinces and Quebec, “All right kids, here is what you need to do and how you need to be.” That is unacceptable.
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