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Member of Parliament

Andréanne Larouche

  • Member of Parliament
  • Member of Parliament
  • Bloc Québécois
  • Shefford
  • Quebec
  • Voting Attendance: 66%
  • Expenses Last Quarter: $81,135.43

  • Government Page
Context: House Hansard - 170 - Mar/21/23
Ms. Andréanne Larouche (Shefford, BQ)
Mr. Speaker, I rise today to speak to Bill C‑241, which seeks to amend the Income Tax Act to allow tradespersons and indentured apprentices to deduct from their income amounts expended for travelling where they were employed in a construction activity at a job site that is located at least 120 kilometres away from their ordinary place of residence. As the granddaughter of a mason and niece, sister and sister-in-law of carpenters, this is a sector of our economy that I am rather familiar with. From the outset I would like to say that the Bloc Québécois is voting in favour of Bill C‑241 and I will be talking about it today first from the perspective of the construction industry, then from the perspective of the current economic context and finally in the context of the labour shortage. First, let us not forget that this is about one of the recommendations from Canada's trade unions that represent more than half a million construction workers in Canada who are members of 14 international unions. These people work in more than 60 trades and professions and generate 6% of the country's gross domestic product. Salespeople, professionals and various other workers in different sectors can already claim a tax deduction for the cost of their travel, meals and accommodation. It stands to reason that these expenses could be claimed by skilled workers whose job sites are located in a different region or province from their primary residence. It is a question of fairness. Growth rates and infrastructure investment often vary from one region to the next, and this results in labour shortages. The labour shortage is one of the main impediments to economic recovery. One way to address rising prices is to tackle this shortage. When expenses are not covered by the employer, workers must pay out of pocket. For workers with a family, additional expenses for travel can be very high and can impede the worker's mobility. This tax deduction is a concrete and effective means of enhancing the mobility of construction workers. In addition, according to calculations, this would save the federal government approximately $347 million. Other countries, such as the United States, allow a similar tax deduction for skilled labour under the Internal Revenue Code. These employees can deduct the cost of meals, travel and lodging for temporary work away from their place of residence. This type of measure would promote return to work and address labour shortages at the same time. It would also reduce reliance on government programs, such as employment insurance. As mentioned earlier, the costs associated with travelling to a job site far from home can impact a worker's decision to accept that contract. Coming back to inflation, it reached 6.8% in 2022, the highest it has been since 1982, when it hit 10.9%. It bears mentioning, however, that the inflationary surge appears to be coming to an end. After peaking in June at 8.1%, it stabilized for a few months and then fell 0.6% to 6.3% on an annualized basis in December. Price increases have been uneven. In 12 months, food prices rose 9.8%, gas prices rose 28% and the consumer price index, excluding gas and food, rose 5.3%. Since essentials like housing, food and gas have increased the most, low-income earners have suffered the most. Two weeks ago, the Bank of Canada announced its eighth rate hike, increasing it to 4.5% from 0.5% a year earlier. Higher interest rates benefit those with savings, but cost those with debt. Young homeowners who bought their first home in the midst of the real estate price boom are likely to have some challenges. Since they are usually the ones who take out variable rate mortgages, they will quickly see rising rates on their mortgage payments. Inflation is a major concern for consumers and cannot be ignored. A Scotiabank survey conducted in December shows that the rising cost of living tops the list of financial concerns for 50% of Quebeckers. That is why the Bloc Québécois introduced a bill, in May 2021, to help attract new graduates to the regions and encourage them to stay there. With that in mind, it is important to implement measures that protect the population in general, particularly the most vulnerable, such as seniors. When it comes to seniors, the Bloc Québécois is still calling for the government to increase old age security by $110 a month for all seniors aged 65 and over. Like all other workers, skilled workers are facing higher costs on everything. I will come back to that. According to a recent poll by Canada's Building Trades Unions, 75% of skilled trades workers agree that a tax deduction will give them access to more job opportunities. With inflation the way it is, the time is right to implement a tax deduction to help ease the pressure on some workers' wallets. At the top of the list of costs that might stop workers from agreeing to travel far for work is the cost of gas. The Russian invasion of Ukraine has pushed the price of oil to levels not seen in eight years. Even though the price of gas is coming back down, its current volatility and unpredictability are enough to dissuade workers from going too far from home to work. It becomes unfair. What is more, this tax deduction can certainly help deal with the labour shortage in one sector in particular. The pandemic forced many people out of the labour market for health reasons and it exacerbated the labour shortage in certain sectors. It is important to act quickly to support the sectors that have been hard hit by this labour shortage. This shortage is a significant impediment to economic recovery. It results in forced closures, the loss of contracts, the cancellation of investments in our businesses and overworked employees. It can even limit opportunities to improve the working conditions of current employees. The pressures related to the shortage of workers will be felt until at least 2030 in Quebec especially because of the aging population. The Bloc Québécois is proposing a suite of measures to alleviate labour shortages across Quebec. In its 2021 spring budget, the government promised to create at least one million jobs. Creating jobs when there is a shortage of workers really makes sense. The Bloc Québécois was already concerned about the labour shortage. It made some good proposals during the 2021 election campaign. We proposed seven concrete measures to help fix the problem. First we must value experienced workers and increase, from $5,000 to $6,500, the amount of employment or self-employment income that is exempt when calculating the guaranteed income supplement, or GIS. That is in the bill that I introduced last week. I look forward to debating it here in the House with the other parties. The GIS is intended for people aged 65 and over with relatively low incomes. It complements old age security, but the GIS decreases rapidly as income increases. The first $5,000 earned, however, does not affect GIS amounts. We propose to increase this exemption by $1,500. The temporary foreign worker program must also be handed over to Quebec. The Bloc Québécois is calling for the program to be repatriated to Quebec, which is in a better position than anyone else to identify the specific labour needs of businesses within its borders. Another trend that is emerging in Quebec is the digital shift. Businesses are increasing their efforts to accelerate the digital shift. This is one way to increase productivity and get around the problem of the labour shortage. This is another area that needs to be addressed. We need to support and assist SMEs in that shift. It is about competitiveness. Tax credits for research and development also need to be improved to stimulate innovation. We are also suggesting creating a new tax credit of up to $3,000 per year for recent graduates in the regions, to a maximum cumulative amount of $8,000 for recent graduates working in designated regions. In closing, I want to present some figures on Quebec's construction industry, which is very lucrative but has labour shortage issues. That is why the Bloc was quick to propose several solutions, because there is no magic bullet for solving the labour shortage. We need to approach the problem from various angles. The importance of Quebec's construction industry cannot be understated. This is as true from an economic point of view as it is from a job creation point of view. We are talking about investments of nearly $53 billion in 2019. We are also talking about 264,600 direct jobs generated per month, on average, or one out of every 20 jobs in Quebec. It also generates thousands of other jobs in other sectors. To conclude, the Bloc made an intervention through my colleague from Joliette at the Standing Committee on Finance during debate on this bill. My colleague pointed out to the government that, since this is a private member's bill, the government tends not to propose any amendments, particularly in terms of including safeguards for certain provisions and thus reassuring the parties on the interpretation or application of a given bill. In the end, no amendments were proposed, and the bill passed without amendment on division in only about 15 minutes. I want to say one last thing in closing. As members can see, this bill reflects the current context in which the construction industry is facing many challenges. Given how important this industry is to the economy, we need to look into this problem and help the industry find solutions to the labour shortage. This bill is one of those solutions.
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