Hon. Robert Black: My question is for the Honourable Senator Gold, the Government Representative in the Senate.

[English]

Senator Gold, earlier in the chamber I mentioned the great entrepreneurship and charity of organizations like Dairy Distillery. Not only are they supporting and growing Canada’s economy, they are giving back in times of need and pitching in to support the greening of Canada. Despite their hard work, the company continues to be inhibited by red tape and the lack of governmental support in expanding their work.

As a result, Dairy Distillery has begun construction on an ethanol production facility using dairy permeate to produce some of the greenest ethanol in North America. For every tonne of permeate they process into ethanol, they displace 1.2 tonnes of carbon. They’ve identified 50,000 tonnes of available permeate in Eastern Canada that, if converted to ethanol, would offset 60,000 tonnes of carbon a year.

[Translation]

The thing is, they’ll be building their plant in the state of Michigan.

[English]

This Canadian company has had little government support or any level of regulatory assistance, and could only financially succeed in the United States with support from programs like the Inflation Reduction Act.

[Translation]

If Canada can’t be competitive for its small businesses, we will lose Canadian businesses to the United States.

[English]

My question, Senator Gold, is: How will the Canadian government continue to support Canadian businesses that are competing with companies in the U.S. being supported by the American Inflation Reduction Act, and what will your government do to reduce regulatory red tape that forces Canadian companies out of the country, taking innovative progress and countless jobs with them? Thank you, meegwetch.

[Translation]

Hon. Robert Black: My question is for Senator Gold, the Government Representative here in our chamber.

Senator Gold, as we all know, Canadian farmers are the backbone of this country. As an advocate for farmers, processors and rural Canadians, I am particularly concerned about the many ongoing issues that continue to create undue hardship on the agriculture sector. Labour shortages, climate change, ever‑changing regulations and supply chain management are just a few.

These issues share one common value, though: increased financial burdens for farmers and their families. Farmers are price-takers, not price-makers. They must continue to compete at market value and often are forced to swallow the costs of decisions beyond their control, and that is why I rise today.

Senator Gold, competition in the market for our farmers is made more difficult by your government because they are charged a tax on a tax. Recently, I received a copy of an invoice from a local farmer in Guelph, Ontario. Trish and Dean Scott reached out to me about the rising costs they are facing on their farm due to being forced to pay taxes on a tax.

Colleagues, not only are they paying the federal excise tax on their diesel and the carbon tax on fuel oil, but they are also paying Harmonized Sales Tax, or HST, on both of these taxes. Let me be clear, this is a tax on a tax — or should I say, a tax on a tax on a tax.

Senator Gold, can you please update the chamber as to why farmers — and, indeed, all Canadians — are being taxed on tax by your government? Will you share with this chamber what the Canadian government is doing to remove their tax on a tax?

Thank you.