Senator Martin: Last summer it was the C.D. Howe Institute that issued a report which found that Canada was lagging behind other OECD countries for attracting investment. Researchers wrote:

Business investment is so weak that capital per member of the labour force is falling, and the implications for incomes and competitiveness are ominous.

William B.P. Robson writes:

Investment per available worker lower in Canada than abroad tells us that businesses see less opportunity in Canada, and prefigures weaker growth in Canadian earnings and living standards than in other OECD countries.

Senator Gold, do you agree with all the experts who say that Canada, under Justin Trudeau, is no longer attractive to foreign investors? And what is your government’s plan to correct this?

Hon. Yonah Martin (Deputy Leader of the Opposition): Actually, another former Bank of Canada governor, Stephen Poloz, last month pointed to the fact that Canada was second to last for productivity performance among the OECD — the Organisation for Economic Co-operation and Development — countries. He said that government red tape and overregulation are impairing Canada’s economic productivity and have created too much uncertainty for businesses.

He said:

I do think that there is a stronger incentive to clean up some of the regulatory issues, the red tapey type of issues that are slowing us down.

Senator Gold, do you agree that we must reduce the government’s red tape? What is the Trudeau government’s plan to reduce red tape and regulatory burden?

Senator Martin: In addition to higher costs caused by inflation and higher interest rates, the government will hurt small businesses by increasing energy costs and payroll taxes. It seems the government is either deaf to the demands of the business community or has no interest in helping small businesses.

Leader, why won’t the government cancel its planned hikes of carbon and payroll taxes that will hurt small businesses?

Hon. Yonah Martin (Deputy Leader of the Opposition): My question is for the Government Leader in the Senate.

Last week, the Senate Banking Committee heard from Kevin Page, the former Parliamentary Budget Officer, who told the committee that an expected winter recession will hurt small businesses significantly. In fact, the combination of three factors will hurt small businesses, the backbone of the Canadian economy: a recession, high interest rates and inflation. Those mean higher costs for businesses and less money for consumers.

Mr. Page confirmed this, saying:

. . . That will hurt small businesses significantly because, with these higher interest rates, people will not want to use credit to go out and spend.

This recession will be caused by high interest rates, which are the direct result of the reckless spending by the Liberals. Leader, what is the government’s plan to help small businesses that will suffer in 2023?

Senator Martin: Government leader, not everyone has an inflation-proof job. The number of Canadian families seeking debt relief is increasing. In September alone, the number of insolvencies rose by 3.1% — and they are not alone.

In the third quarter, the total number of Canadian business insolvencies increased by 48.5% compared to last year: almost 50%. Increased borrowing costs, inflation, production and labour issues, as well as a government that won’t cap its own spending have created the perfect storm. Leader, when will the government cap their spending and cancel their planned tax hikes?

Hon. Yonah Martin (Deputy Leader of the Opposition): Government leader, according to statistics released by the Office of the Superintendent of Bankruptcy, a total of 25,809 consumers filed for insolvency, up 2.3% from the previous three months. Consumer insolvency filings have jumped nearly 25% in the third quarter of this year compared to the same time last year. With the rising costs of food, fuel and taxes, it’s clear Canadians are reaching the breaking point. Canadians need certainty, and they need relief now.

Senator Gold, when will the government provide the assurances Canadians need by cancelling their planned tax hikes?

Senator Martin: Yes, but on a week we should be celebrating small businesses, the Bank of Canada has announced the worst drop in business outlook since 2020. Many businesses expect slower sales growth as interest rates rise and demand slows. Many think a recession is likely within the year, and fewer businesses are planning to hire. With the central bank’s indicators falling, if the government is still determined to heap more taxes on small businesses, will they at least consider providing some relief by delaying these hikes until the economy improves?

Hon. Yonah Martin (Deputy Leader of the Opposition): Government leader, this week is Small Business Week. Small‑business owners are the grease in the Canadian economy. They employ nearly two thirds of the Canadian workforce. They are moms and dads. They are friends and neighbours. They love their communities and give back every day, yet this government continues to punish them with higher payroll and carbon taxes, leaving them with higher costs for families that rely on that business for a paycheque.

Will the government commit to reviewing their planned tax hikes on small-business owners?

Hon. Yonah Martin (Deputy Leader of the Opposition): My question is for the government leader. Canadians who use natural gas or electricity to heat their homes can expect their bills to rise between 50% to 100%, on average, this winter. Some consumers could see their bills rise by as much as 300%. While the war in Europe and seasonal demand are two of the factors driving up costs, so, too, are inflation and increases in the federal carbon tax.

Leader, with respect to the latter, will the government ensure Canadians will be warm this winter and freeze their tax hike?

Senator Martin: More than half of Canada’s businesses, 55.3%, have fewer than four employees. Many are family-owned and -operated. While these families struggle to keep their doors open, they are also dealing with rising costs due to inflation and tax increases. Now they must wait for a year on average to have their CRA small business audits completed. This is causing unnecessary stress for owners of small businesses across Canada. If resources are a problem at the agency, what plans does the government have to address this?

So this is a really dire issue, senator.

Senator Martin: While Canadians will struggle to heat their homes, the impact of rising fuel costs and, by extension, food prices in Indigenous communities will be staggering. Food prices in remote Indigenous communities are already up to 2.5 times higher than the national average, and rising fuel prices will compound inflation’s toll on Indigenous families. While the minister monitors the situation, Indigenous families will have to get by with less food and heat this winter.

Senator Gold, what plans does the government have to address the increased pressure facing Indigenous communities this winter?

Hon. Yonah Martin (Deputy Leader of the Opposition): Government leader, 99.8% of businesses are small- and medium-sized businesses, or SMEs. SMEs drive Canada’s economy by employing 88.3% of Canada’s private labour force and accounting for more than half of the nation’s GDP.

Healthy SMEs are vital in any post-pandemic recovery plan, yet at this critical time, the Canada Revenue Agency is putting undue stress on businesses by taking almost a year on average to complete audits.

What is the government doing to address the delays at the CRA?

Hon. Yonah Martin (Deputy Leader of the Opposition): Speaking of pipelines, Senator Gold, Canadians are trying to make ends meet amidst rising inflation rates and struggling to provide essentials like food for their families and filling up their cars. Global News reported today that tomorrow, on Thursday, Metro Vancouver gas prices will be 239.9 cents per litre, so $2.40 per litre, and will break an all-time record by three to four cents per litre for any city in North America. In Ontario, gas prices are significantly lower, with rates of $1.49 per litre, which is still high compared to other places. Leader, what is the government doing to help British Columbians and other provinces with skyrocketing fuel prices?

Hon. Yonah Martin (Deputy Leader of the Opposition): Honourable senators, my question for the government leader concerns the escalating cost of living for Canadians. Yesterday’s Consumer Price Index numbers clearly show that the price for food has risen at the fastest pace in the last four decades. Conservatives have spent the last 24 months warning the government about inflation and the consequences of out‑of‑control spending. Yet the Prime Minister continues to spend and costs continue to rise. Now Canadians face a 10.8% increase in the cost to feed their families. Leader, when will the government finally realize they were wrong all along and cap government spending?

Senator Martin: Leader, the time has long passed for this government to get inflation under control and to provide relief to Canadians. The price of housing has doubled, interest rates continue to rise and families are forced to spend less at the grocery store. This government’s solution to the crisis is to reduce Canadians’ paycheques with higher payroll taxes, to raise gas and home heating taxes and, indirectly, the cost of food by tripling the carbon tax. Leader, will the government stand with Conservatives and Canadians and axe the carbon tax and cancel payroll tax hikes so families can feed their families and heat their homes?

Hon. Yonah Martin (Deputy Leader of the Opposition): Honourable senators, my question for the government leader concerns the high cost of living.

May’s record inflation of 7.7% is the biggest year-over-year increase since January 1983 — almost 40 years ago. Statistics Canada reported that Canadians paid 48% more for gas in May of this year than they did just one year prior.

Many countries have helped their citizens deal with high energy costs. On Sunday, South Korea announced that starting on July 1 and until the end of the year, taxes on gas and diesel will be further reduced to help ease the burden on consumers; a fuel tax cut took effect in Germany on June 1; and the Netherlands lowered their gas tax in April, also through to the end of the year. These are just a few examples, leader.

Canadians are finding it increasingly difficult to make ends meet. The Liberal government could do something about this by providing tax relief on gas. Will you do so?

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Senator Martin: Yesterday American President Joe Biden announced his support for a three-month suspension of federal gas and diesel taxes and encouraged U.S. states to remove their own taxes on fuel. President Biden said he supports doing this to give working families some breathing room.

In contrast, our Minister of Finance seems to think she has done enough to fight inflation in Canada and has nothing new to offer families struggling to get by. In the other place on Tuesday, when Minister Freeland was asked to cut taxes at the pumps, she once again did not give a direct answer.

Leader, how much higher does inflation have to go before the Trudeau government will help Canadians having difficulty paying for gas just to drive to work?

Senator Martin: Leader, with respect to the credit card swipe fees consultations that I mentioned, small businesses are still waiting to hear when the next round will begin, as announced in the budget. Over a month ago, on May 14, the Canadian Federation of Independent Grocers stated:

. . . there has been a deafening silence from the government as to when this additional consultation will be taking place and what it will be addressing.

Leader, when I asked you about this last month, you said you would make inquiries and report back. What response did you receive if you’ve received any? Will your government launch these consultations as soon as possible?

Hon. Yonah Martin (Deputy Leader of the Opposition): Senator Gold, during the 2019 federal election campaign, the Trudeau Liberals made several different commitments to our small businesses that have not been fulfilled. As I have raised previously, it appears the Trudeau government is breaking its promise to cut the cost of federal incorporation by 75%. As well, the promise to end credit card swipe fees on GST and HST is being buried in endless consultations.

Leader, in 2019, your government also promised to eliminate fees for business advisory services such as mentorship and training from the Business Development Bank, Export Development Canada and Farm Credit Canada.

Leader, could you tell us if these fees have been eliminated and, if not, why not?

Senator Martin: Last month, after the NDP-Liberal government once again failed to bring forward the Canada disability benefit, Kenzie McCurdy, with the accessibility group StopGap Ottawa, told CTV:

Look how quickly CERB went out. Why do they get it within a matter of months and people with disabilities can’t be helped before a three-year study and lots of promises and delayed action?

That’s a very good question, leader. What is your response to Kenzie? Why are Canadians with disabilities never a priority for this NDP-Liberal government?