Hon. Leo Housakos: Senator Gold, in your answer to Senator Plett just a second ago, you acknowledged finally that things are not great, but things are not just not great. Things are in a state of catastrophe right now, yet we had our Minister of Finance at the beginning of the summer doing this massive victory lap, stating that “Canada’s plan to bring down inflation is working.” She said it was a “milestone moment,” and went on to say:

I really want to thank Canadians, it has been a really tough time economically since COVID first hit ... and this is a really good moment ... It has been a real struggle for Canadians and the Canadian economy to get back down to 2.8%, and I am really grateful to everyone who has ... (stayed) the course.

“Inflation in Canada has come down!” she claimed with excitement.

I don’t know what planet Minister Freeland and Prime Minister Trudeau live on, because inflation right now is at the highest level it has been in 35 years. We just got the figures out for the month of August, and inflation is well into 4%. All economists are claiming it will continue to grow until the end of the year, and they suspect we will have more rate hikes by the Bank of Canada. And we’ve had, by the way, 10 bank rate hikes since March of 2022, which is pummelling working-class Canadians.

The question is simple: Will you finally acknowledge as a government that the Freeland-Trudeau economics of more debt and more deficit are not working and are leading to record-high inflation, and will you commit to finally putting in place a fiscal anchor, which we so desperately need?

Senator Housakos: The only things your government can take credit for are the exasperating monetary policies that are exacerbating inflation. That’s the only thing you can take credit for.

I can say something else: One thing about drunken sailors, Senator Gold, is that at least they spend their own money.

Now, my question has to do with the Bank of Canada, which, over the last few months, has acknowledged their error in following policy that has been put out by this government when it comes to dealing with inflation. They did delay, and their delay has exacerbated the situation, and now we’re starting to see it in compressed interest rate hikes. But at least the Bank of Canada has acknowledged that they were wrong in their forecast.

When will your government start acknowledging that you were wrong with your monetary policy and your approach to spending? The only thing the Trudeau government has ever done is point fingers and blame everywhere except in their direction. When will your government assume responsibility that your monetary policy over the last eight years has led us to the brink of economic catastrophe?

Hon. Leo Housakos: Government leader, no one is questioning the validity of a grocery rebate at a time when this government has created or helped create such great inflation, and Canadians are suffering, but we have seen time and time again in this place that when you pass legislation with all the best intent in the world that legislation isn’t clear and transparent in giving directives to those that are going to apply this particular bill and apply this particular program with clear regulations.

We are just asking if it wouldn’t make sense to have some regulations and guidelines to make sure that all these billions of dollars would go to a grocery rebate and not to a hardware store rebate.

And there is nothing wrong for people in need who might need tools, Senator Cardozo, but there is something wrong when you take a government program, and then it is used, for example, to go on a vacation or to buy accessories for an automobile or to buy sporting goods, for example, for entertainment and sports reasons.

Would the government leader agree that we need to attach to the title of this bill clear guidance to make sure that all the money goes for grocery rebates and nothing else?

Senator Housakos: Government leader, the only thing this government’s wild and overkill spending has achieved is to create historic inflation that, again, is pummelling middle-class and poor working Canadians. This government is oblivious to the fact that interest rates can rise at any moment. That’s why, a year ago, we did have one of the best debt-to-GDP ratios in the world, as we did in 2015, but we are in decline there. We are falling behind. If interest rates go unexpectedly, about which you guys were shocked — it went from 2% a year and a half ago to 5% — wait until it gets to 7% or 8%. What kinds of excuses will we hear from this government then?

And yes, the Prime Minister lied; he misled Canadians when he made a commitment to balance the budget by 2019. In this town, we have to start coming up to speed with the fact that when we mislead taxpayers, we have to account for it somehow and not double down.

In this budget tabled a few days ago, your Minister of Finance has added $63 billion of new debt. Do you think that’s fiscally responsible when we’re on the eve of a recession?

Hon. Leo Housakos: My question is for the government leader. Last week, I asked you a question about “Justinflation.” In your answer, you quoted Scotiabank, which says, according to you, that your government did not create “Justinflation.”

Allow me to quote the report in question, which is by economists Jean-François Perreault and René Lalonde. They state that “. . . it is also abundantly clear that pandemic support measures could have been rolled back more rapidly at the global level.” They go on to say, “. . . the inflation outcome suggests that consolidation should have occurred at a more rapid pace.”

According to these economists, it is clear that the Trudeau government did not end COVID measures quickly enough and that the inflationary spiral we’re in is a direct result of their delayed response.

Senator Gold, when will you finally admit that “Justinflation” was created by the Trudeau government?

Senator Housakos: Senator Gold, clearly, you’re saying that you are proud of how your government has managed public finances, but the fact is that it’s been catastrophic, based on the results. We are facing record-high inflation.

The Scotiabank report that you love so much is entitled Policy Missteps Taking Their Toll: Scotiabank’s Forecast Tables. Senator Gold, who do you think was in charge when those very serious policy missteps were taken?

Hon. Leo Housakos: Honourable senators, my question is for the Leader of the Government in the Senate. This year, 2022, was the year of “JustinFlation.” Every Canadian has been affected by the rising prices resulting from Justin Trudeau’s economic policy.

In 2023, “JustinFlation” is going to hit again. This week, experts from the University of Guelph, Dalhousie University, the University of Saskatchewan and the University of British Columbia published Canada’s Food Price Report 2022. They claim food prices are expected to jump another 5% to 7% in 2023. No food group will be spared from “JustinFlation.” For a family of four with two teenagers, the annual cost of groceries could rise by $1,066 for a total of $16,288.

Senator Gold, what is the government’s plan to combat “JustinFlation”?

Senator Housakos: Unfortunately, government leader, it’s clear that “JustinFlation” keeps falling on deaf ears when it comes to the government. Unfortunately, the failed monetary policies of the Trudeau government are creating an enormous amount of anguish and stress amongst all Canadians, regardless of what talking points you want to quote.

The reality is Leger Marketing took a poll this fall. In Quebec, 42% of Quebecers are living with economic anxiety. That’s a fact. Failed monetary policies of printing money, runaway spending by this government and consecutive deficits year after year since this government came to power in 2015 are at the root of “JustinFlation” and what Canadians are facing.

Government leader, you can deny it all you want, but Canadians are living with this reality on a day-to-day basis. Canadians are paying more than ever and receiving less than ever. The question is simple: Will you acknowledge that the government has failed in this regard? Will the government change the Minister of Finance or will the government resign altogether and give Canadians relief?

Hon. Leo Housakos: Government leader, I have a simple question and it is, of course, a follow-up question about what we have been talking about the last couple of weeks: the challenge that Canadians are having with the cost of living. Young families, poor families and middle-class families are struggling, and the only people getting richer under this inflationary tidal wave under your government are wealthy people.

The question I have for you, government leader, is a simple one: Can you tell us what the inflation rate is today in 2022 in Canada, and what the inflation rate was in 2015 in Canada?

Hon. Leo Housakos: Senator, thank you for your speech and thank you for being the sponsor of this bill. It’s obviously a bill with a specific objective. At the end of the day, the current needs of our society — especially as the economy continues to face challenges with both the inflation rate and an economic standstill that is on the verge of a recession very soon, I would venture to say — continue to grow exponentially.

There are a lot of challenges and a lot of great causes out there that currently governments don’t fund. I’ll give one example, autism, which is facing and crippling families right across the country. Hundreds of thousands, if not millions, of Canadians are touched by this. There’s no support on the provincial level by health care systems; there’s no national strategy at this particular point.

This is a great program. We’re adding a few billion dollars into the pot, but where does it end? How many other causes is the government willing to champion and write out cheques for, like autism, for example, and many others I could list if we want to get into the debate?

Senator Yussuff: Thank you, Senator Housakos, for your question. A long time ago, creating a hierarchy of rights and privileges meant the ones with the loudest voices would succeed. I don’t for one minute disagree with you that families that are struggling with autism need help. They should get that help because these are children who should have an equal opportunity to thrive and participate in the schooling system and get a leg up on life. Those are needs that we need to think about and how we address them, with both the federal and the provincial governments working together to make sure that happens.

On the issue of dental care, I think we take for granted the impact this has on working families. It truly is profound. I know stories — I will get into them at second reading — of individuals who lost their teeth because they were poor and didn’t have access to dental care. Getting a decent job without having proper teeth is a problem.

I’ve been fortunate. I didn’t have to go down that road. But I know far too many kids don’t have the same opportunity in life. I think giving them a good oral dental care experience at an early age can prevent a lot of health issues that they struggle with later in life.

Of course, the government has set this as a priority, as they have with many priorities. However, as Canadians, we still need to build a country that’s more equal. This is one step on that path. On the issue you raised about autism, I hope we can do a better job to ensure Canadian families have better support from their national, provincial and territorial governments to deal with the needs of families who require it.

Hon. Leo Housakos: Honourable senators, my question is again for the government leader in the Senate and it has to do with “JustinFlation.” I have asked about this issue on a number of occasions, and it is an issue that is starting to destroy average middle-class and poor Canadians who are struggling to survive.

I’ll ask the question a little bit differently because in the past I’ve tried to hold this government responsible for some of the things they have done, and, of course, this government never takes responsibility. It’s market forces, international conditions, wars — it’s any other reason but the Governor of the Bank of Canada, Mr. Trudeau or his two finance ministers over the last seven years.

Will you agree that, with three small steps, we can solve “JustinFlation”? Number one, will you agree that this government should cap the Liberal government’s spending and taxation of the middle class with the Employment Insurance, or EI, taxes that are being implemented as of January?

Second, cap the Liberal government runaway deficit right now?

The third step, very importantly, unleash the energy sector in this country to produce energy that Canadians badly need to heat their homes, that farmers need in order to fuel their tractors and produce more food and, of course, that the rest of the world is so thirsty for because right now they’re under the grip of a bunch of dictatorships like Russia, Iran and I can go through the list.

Do you agree with those three simple steps the government can take in order to give middle-class Canadians, and those working hard to join the middle class, some relief?

Senator Housakos: Senator Gold, how far is your government willing to go to continue to allow “JustinFlation” and soaring interest rates to skyrocket? Government leader, these are not talking points. Your talking points might be talking points, but I’m talking on behalf of Canadians who are actually out there dealing with egg prices, milk prices, grocery store prices and trying to feed their families.

At the end of the day, the question I have for you is a very simple one: When are we going to take our responsibility very seriously and hold somebody in this Parliament to account for this dismal performance? If it is not the Governor of the Bank of Canada, maybe it’s the Prime Minister, or maybe it’s the Minister of Finance. Whom do you hold responsible for this mess?

Senator Housakos: Senator Gold, I know your government doesn’t share my views. That’s why we have huge backlogs at Immigration, Refugees and Citizenship Canada, enormous lineups at Canadian passport offices and, of course, the only thing your government has really unleashed is terrible inflation that we have not seen in 30 years.

Senator Gold, Canada’s largest airport, Toronto Pearson, remains paralyzed because of the doubled processing times caused by the mandatory use of ArriveCAN. At the same time, we have tourism industry representatives and mayors of Canada’s border towns calling for its discontinuation because of its negative impact on tourism across the border.

Your government claims it invoked the Emergencies Act over concerns for economic reputation. What about the damage to our economic reputation over the petulant insistence of your government to hold on to this ridiculous app? Is that of any concern to you and your government?

Hon. Leo Housakos: Honourable senators, my question is for the Leader of the Government in the Senate. Senator Gold, the Governor of the Bank of Canada, Tiff Macklem, testified before the Senate Banking Committee. He has recognized that he and his lieutenants in the Bank of Canada have gotten it all wrong when it comes to inflation. He has also recognized that they have completely misjudged the strength of inflation. Mr. Macklem said:

If you go back to January, we were saying that inflation would peak at about 5%, and by now you start to see some signs it’s coming down. It’s now 6.7% and it’s going to take longer to come down. . . .

Government leader, will you acknowledge that Prime Minister Trudeau and his government should start recognizing the lead taken by the Governor of the Bank of Canada and recognize that they have also gotten it all wrong when it comes to inflation? Furthermore, will you also agree with me that it’s high time that Mr. Trudeau starts thinking about monetary policy?

Senator Housakos: Government leader, the annual increase of the alcohol escalator tax is tied to the Consumer Price Index and, as Canadians are aware, the rate of inflation has gone through the roof over the past year. In February, inflation went up 5.7% year over year, and it stands at the highest rate in over 30 years in this country.

Grape growers, hop producers, grain farmers, vineyards, brewing companies, craft distillers, bars and restaurants and the entire tourism and hospitality industry have all struggled over the last two years, suffering during this existential crisis. How does increasing the alcohol escalator tax on April 1 help these people survive and remain competitive in these tough circumstances? How does it help Canadians who keep having to pay more and more to try to survive? Who does this help besides the high tax‑and-spend NDP-Liberal coalition?

Senator Housakos: Government leader, your government’s inflationary deficits and tax increases are having an impact on the daily lives of ordinary Canadians. Last week, I raised the question right here in this chamber about the cost of food for families. The average cost is a $1,000-a-year increase for middle-class Canadian families to provide food on their tables, which we all agree is a necessity in this country.

We also learned today that housing prices are at a record high of 25% this year, yet the economic update yesterday only said the Trudeau government’s work on housing affordability is ongoing and that they will take action next year. So clearly, this is not a priority for the government.

How could the government look at Canadians with a straight face and say inflation is a priority when, in the financial statement and in the Speech from the Throne, we didn’t have any semblance that this government is willing to address spending and high taxes in this country and those two things are combining for an off-the-chart inflation rate?

Hon. Leo Housakos (Acting Leader of the Opposition): My supplementary question is again for the government leader. Government leader, a study released this morning shows that Canadians will pay $1,000 more for food next year. The cost of vegetables is expected to rise by 7% and dairy products by 8%. This is more money out of the pockets of Canadians already dealing with higher costs of housing and transportation. Canadians across this country are feeling the pinch, government leader. Meanwhile, with the agreement between the Government of Canada and the Bank of Canada on inflation targets set to expire at the end of this month, Bloomberg is reporting this morning — colleagues, listen to this — that the Trudeau government is thinking of changing the mandate to allow for a higher inflation target.

Senator Gold, if this report is actually accurate, do you really believe Canadians can afford to pay even more than they already pay for basic living needs? If you take the affordability crisis seriously, why won’t your government commit to maintaining the reasonable 2% inflation target?

Hon. Leo Housakos (Acting Leader of the Opposition): Honourable senators, my question is for the Government Representative in the Senate. Everyday life has become more unaffordable for Canadians under this Trudeau government, much as it did under the previous Trudeau government. Statistics Canada says that the inflation rate is now at its highest point in 18 years, yet we have a government that barely mentioned inflation in the Speech from the Throne and a finance minister who, not that long ago, believed that deflation is the greatest risk facing our economy.

Leader, your government’s answer, when asked about the rising cost of living, is to point to creating childcare spaces and building new housing — and that will be five years from now. How does that answer help a senior living on a fixed income struggling to buy groceries or medication? How does that help middle-class and poor Canadians when dealing with their day-to-day expenses? How does that help middle-class families with school-aged children trying to get by? Government leader, can you tell us what your government is going to do about this issue?

Senator Housakos: The Leader of the Government in the Senate will only say that inflation is a global phenomenon. As was the case last week, you are leading us to believe that the Trudeau government does not take seriously the accessibility crisis in our country and its effect on the lives of Canadians. However, the reality is that Canada’s inflation rate is the second highest in the G7. Across the country, the cost of food, housing, home heating and transportation has skyrocketed. What will the Trudeau government do to help all Canadians deal with the cost of living crisis? Will you cut your reckless spending, or will you continue to sit back and do nothing, under the pretext that inflation is a global problem?