- Member of Parliament
- Member of Parliament
- Bloc Québécois
- Shefford
- Quebec
- Voting Attendance: 66%
- Expenses Last Quarter: $81,135.43
- Government Page
- Apr/19/23 4:21:08 p.m.
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Mr. Speaker, it is never easy to rise after my colleague from La Prairie. I listened intently to his speech.
As the critic for seniors, I could not turn down the opportunity to talk about their situation in the House and, more importantly, to respond to a budget that cares nothing about them. I could not turn down the opportunity to set the record straight. The Bloc Québécois proposed a number of measures and made clear requests to the Minister of Finance.
I will focus on three points here. First, the budget does not provide for an adequate increase in health transfers. Second, it says nothing about EI reform. Finally, while the government continues to claim it has been generous to seniors, there are no new specific and ongoing measures for seniors in this budget.
I would like to start by pointing out that the government is not increasing the health transfers to any significant degree. The jurisdictional interference also continues. This issue is important, and it is a major public concern, especially among seniors' groups. FADOQ representatives even turned out for a conference I recently organized on the financial situation of seniors. They came to call attention to the urgent need for the federal government to make its contribution and increase health transfers to 35%, with no strings attached. They clearly understood that this jurisdiction belongs to Quebec, not the federal government.
Moving on to the second part of my presentation, the budget makes no provision for any major EI reform before 2030, despite the government's promises. The government also refuses to write off the EI fund's pandemic-related debt. As a result, premiums will have to increase and benefits will have to decrease for the fund to achieve a $24‑billion surplus by 2030. How great it would have been to have a little money left over to reform federal services.
As the status of women critic, I consider this to be a major reform from a feminist perspective. We know that 60% of workers are not eligible for employment insurance, and that is concerning. It is primarily women who work in unstable jobs, who do not work full time because they have to do invisible work at home with their families and who have difficulty accumulating the hours required to be eligible for EI.
I would like to point out that on Tuesday, April 4, groups in Quebec, including AFEAS, campaigned for a national invisible work day that would be held every year on the first Tuesday in April. This kind of day is needed to encourage real reflection on this issue, which also affects family caregivers and volunteers. How can we do more to recognize what these people do? My thoughts go out to them and I thank them, especially those who are being honoured this week as part of National Volunteer Week. I salute them.
I am now coming to my third point, and I will devote the rest of my speech to the lack of measures for seniors and their precarious financial situation. I actually held a conference on that issue back home in Granby on February 21, with seniors' groups from all over Quebec. I want to talk about some of the issues that were raised during that day of reflection.
First, I want to point out that while wages are rising, old age security is not increasing as much or as quickly. Currently, if someone is 75 years old and receives nothing but old age security and the guaranteed income supplement, their annual income is $20,574.24. Given today's inflation, who can really live on that? That level of income puts them below the official federal poverty line, as determined by the market basket measure, or MBM. In response to this statistic, the symposium participants that day said that the federal government needs to increase old age security benefits.
Add inflation to that, and old age security is not enough to live on; it is not a replacement for working income. As for income replacement in retirement through public pension plans, right now, a person earning the average wage in Quebec will have an income replacement rate of only 41%. The Quebec pension plan replaces about 25% of the average wage.
As for old age security, it barely replaces 15% of the average wage. Sadly, since wages are rising faster than the consumer price index—by about one percentage point per year—this federal program will in future contribute less in terms of replacing working income in retirement. The federal government must do better.
Finally, we must also revise the indexation method for old age security. The Association québécoise de défense des droits des aînés, or AQDR, agrees, and does not believe that it is adequate. Furthermore, the AQDR also believes that old age security is not increasing fast enough to replace employment income, which is rising faster than public plan replacement rates. Everyone is talking about wage increases right now.
Seniors are finding it very difficult to save, especially older women who, over the course of their lives, have greater difficulty setting aside money and saving to retire in dignity.
The old age security pension, or OAS, and the guaranteed income supplement, or GIS, are insufficient to meet the needs of seniors. Let us not forget that, in July 2022, the annual income of an individual under the age of 75 receiving only their pension and the GIS would fall below the official poverty line in Canada, based on the market basket measure, or MBM. That is significant in an inflationary context.
This index, which is calculated by Statistics Canada, seeks to establish the cost of a basket of goods for a modest basic standard of living. We are not talking about trips down south or luxury items; we are talking about basic needs.
In 2022, MBM thresholds were between $20,796 and $22,382 for singles, depending on the region in which they lived. The solution, therefore, is simple: Income levels for all seniors aged 65 and older need to be increased.
That day, we also talked about the implementation of a tax credit for experienced workers in the context of the labour shortage, a tax credit for working seniors who want to stay on the job or for seniors who decide to go back to work.
That day, we also talked about health transfer increases. I just wanted to point that out. The federal government needs to significantly increase health transfers so that the Quebec and provincial governments can make major investments in their health care systems.
Another item that was discussed that day and that should be noted is the fact that inflation is seriously eroding seniors' purchasing power. It would have been a good idea for the Liberal government to at least support those who cannot afford to be patient.
FADOQ expected Ottawa to walk the talk when it came to increasing the guaranteed income supplement. Let us not forget that those who receive the GIS are some of the most disadvantaged members of our society. FADOQ believes that the government could have taken these additional measures. Another example would be to make the Canada caregiver credit refundable.
Given the ongoing labour shortage, the FADOQ network also suggested that a tax credit to encourage seniors to keep working would be a great idea. The timing is perfect. Even though it was another thing the federal government had promised, this tax credit was not announced in the last budget.
To continue on the theme of the budget, the grocery rebate is actually a one-time payment through the GST tax credit. Although it is a decent measure, the Bloc Québécois hoped that low-income families and individuals would get better government support during this inflation crisis. For 2023, the amount remains a one-time payment. It does nothing to solve the longer-term problem.
My last point is that, despite everything, the long-term financial outlook remains the same. The ratio of the federal public debt relative to the GDP will continue its downward trend. Ottawa plans to completely pay off its debt within 30 to 40 years. The federal budget confirms the Parliamentary Budget Officer's long-term forecasts. Beyond the short term, the federal financial situation will keep improving. Over the long term, the financial situation of the provinces and Quebec will keep deteriorating. The money is in Ottawa, but the needs, in areas like health and education, are in Quebec.
In the short term, we must also deal with the global economic downturn, high interest rates worldwide and inflation that is still too high.
In conclusion, I could also have spoken about the lack of support for the next generation of farmers and the greenwashing that the budget also contains. It maintains the fossil fuel subsidies, subsidizing oil companies, as my colleague from La Prairie mentioned. The budget talks about hydrogen, meaning dirty hydrogen, about carbon capture and about small nuclear reactors, even though experts have condemned these measures. As I said, it is greenwashing. These are not measures that will help us seriously kick-start the shift we need to make to fight climate change.
In short, the spending in this budget is unwise and insufficient for those who are truly in need.
That is why, in closing, I will proudly say that I will soon be introducing a bill to abolish the injustice created by the 10% increase in old age security only for those 75 and over. We must ensure that all seniors, when they turn 65, can receive this little additional boost, but especially a boost in the long term and not a one-time cheque or, as the government has done all too often, a little pre-election cheque that looks good. With this bill, we want to increase the threshold to the point where seniors can work without their GIS being clawed back. This is about common sense and dignity for seniors. Even the economic sector is calling for this. Let us all work together.
There are also the demands from the National Assembly. We must meet people's needs. We must work together to improve the current situation, which, as we know, is not easy for everyone, especially the seniors who really need to be listened to and heard a little more.
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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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- Apr/8/22 11:55:00 a.m.
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Mr. Speaker, the Liberals betrayed seniors in the budget.
The Liberals not only failed to increase health transfers and continued to deprive seniors under 75 of the old age security increase, but they also broke their own promise, inadequate as it was, to enhance the guaranteed income supplement for the most vulnerable seniors. The Liberals promised a career extension tax credit. They promised to improve the tax credits for caregivers. Those are promises that they made.
Why did the Liberals break their promises?
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