- Member of Parliament
- Member of Parliament
- Conservative
- Calgary Forest Lawn
- Alberta
- Voting Attendance: 65%
- Expenses Last Quarter: $131,041.76
- Government Page
- Oct/17/23 12:28:14 p.m.
- Watch
Madam Speaker, I want to start by congratulating my good friend, the passionate member for King—Vaughan for her incredible speech. She is a great advocate for her community,
Canadians are going through housing hell right now. Nine out of 10 young people say they have lost the dream of home ownership. Newcomers will not be able to achieve home ownership. The IMF is now saying that Canada is the most at risk in the G7 for a mortgage default crisis. There is a major housing crisis in this country, which we need to take seriously before people start losing their homes.
We need to understand how we got here in the first place. The Liberal-NDP government spent more money than all governments before it combined. Let me put this into context. Between 2015 and 2023, the Liberal-NDP government spent more money than every single government did from 1867 to 2015, combined. That has led to 40-year highs in inflation, which has led to the most rapid mortgage interest rate hikes we have seen in the last three decades.
The Bank of Canada had to counter with something, and it did so with the interest rate hikes. That was done in reaction to something, and that something was the government deficit. It is not just Conservatives who admit that government deficits fuelled inflation, making interest rates go up. Random Liberals and others have said the same thing.
I will point to the three Ms: Manley, Macklem and Morneau. They have all admitted that government spending fuels inflation. Mark Carney, who could possibly be the next Liberal leader, also said that inflation was due to domestic pressures. It was nothing to do with outside pressures, as the Liberals and NDP try to make everyone believe. They say that it is always someone else's problem and never theirs. Even someone who could become a Liberal leader admits that the inflation we see today is due to domestic pressures.
Even the current finance minister has admitted this. Though she does not believe in it, she still admitted that government deficits do fuel inflation. It is too bad that, after she said she wanted to be careful to not fuel the inflationary fire, she dumped a $63-billion jerry can of fuel on that inflationary fire. What ended up happening? Inflation went up and so did mortgage interest rates. Once again, this is why Canada is now the most at-risk country in the G7 for a mortgage default crisis.
The Liberal-NDP government shows its incompetence over and over again. These are the geniuses who ended up spending $89 billion, almost $90 billion, on housing only to have housing costs double in this country. Mortgages have doubled. Rents have doubled. Let us look into that a bit deeper.
Why have mortgages doubled in this country? As I identified, it was a domino effect. All the money printing the government did was bounced off by bonds. What ended up happening? We flooded the market in doing that, and there was too much money chasing too few goods, which is literally the definition of inflation.
When inflation went up due to all the government deficits, the Bank of Canada had to do the opposite of what the government is doing. Former Liberal finance minister, John Manley, put it perfectly. He said that today's situation is much like the Liberal-NDP government deficit. It is like it is pressing the gas, the inflationary gas, while the Bank of Canada is slamming on the breaks as hard as it can with its interest rate hikes. Both things are happening at one time. They are working in opposite directions and the engine is going to blow.
Who will be left paying for this mess? Canadian taxpayers will be. There is only one party in the House that cares about taxpayers' money and wants to make sure that Canadians do not lose their homes. That is why our leader, the next prime minister of Canada, the hon. member for Carleton, put this motion forward. It is because we are more worried than ever that Canadians may lose their homes because of the out-of-control deficit spending of the Liberal-NDP government.
Housing costs have gone up. They have doubled in this country after the Liberals spent $89 billion on housing. How does that even happen in a country like Canada?
This is the reality of the failed policies of the Liberal government. I met a single mom in Calgary recently, a single mom with three kids. Her rent went up by $600 a month. She was already struggling to feed her kids and keep a roof over their heads. She was literally in the stat of being the one in five who are skipping meals today. She told me her heartbreaking story of, because of the cost of her rent going up due to these deficits, having to move back in with her abusive ex-husband.
This is the reality of Canadians today. The Liberal-NDP government's failed policies have put Canadians in these types of positions. We can only imagine how many more of these stories we will hear as we travel the country. It is a sad state in Canada today. It should not be. However, after eight years of the Liberal-NDP government, it is definitely not worth this cost.
We are talking to industry stakeholders and everyday Canadians. We are hearing that people cannot get into housing because of supply. We are also talking to the people who actually build the homes. The number one issue today is interest rates, which were fuelled by the government's deficits. Builders will be sitting on land, and they will not be able to build. In some cases it does not make sense, with all the bureaucracy and with all the red tape created by the government. Along with a willingness to let municipalities create more and more bureaucracy, it is getting harder and harder to build, let alone how much housing costs have gone up for the builders. In some cases it does not make sense to build.
That is why we need to see a balanced, fiscally responsible plan for back-to-balance budgets. I hope the Prime Minister finally understands that budgets do not balance themselves.
An hon. member: Don't hold your breath.
Mr. Jasraj Singh Hallan: Madam Speaker, my colleague says, “Don't hold your breath”, and I will not.
Let us put this back into the context of why we brought forward this motion in the first place. It is because of a looming crisis that could take place in this country if the Liberal-NDP government does not bring back balanced budgets. I want to remind Canadians, once again, that it was the finance minister, back in November, who told Canadians, and promised Canadians in writing, that she would bring in balanced budgets in 2027-28.
I will take a step back to before that. It was the same finance minister who told Canadians to go out and borrow as much as they want, that interest rates would be low for a very long time. People started getting mortgages. We saw a big boom in people wanting housing. What those borrowers did not expect, after she said that, was that she would dump hundreds of billions of dollars of fuel on the inflationary fire, which made their interest rates go up. Now there is a looming crisis.
In November of last year, the finance minister promised to bring in balanced budgets. We had a hope that maybe the Liberal-NDP government had seen the light. However, once again, it was only months after that when she said that she was just kidding, that she was never going to balance budgets anyway, and then promised to balance the budget in the year never. Canadians lost all hope.
What we need to do today, under our common sense leader, is bring in a common sense plan to balance the budget, to bring down the inflation and to make sure that Canadians do not lose their homes. When the member for Carleton becomes the next prime minister of this country, we are going to bring home more homes, which people could actually afford; bring down costs; bring home lower prices by axing the failed carbon tax, which is inflationary and making the cost of everything go up; make sure that once we bring down the inflation by controlling deficits, people will not lose their homes.
We are going to bring it home for Canadians.
1440 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- Feb/14/23 10:16:38 a.m.
- Watch
moved:
That, given that,
(i) after eight years of this Liberal Prime Minister, inflation is at a 40-year high,
(ii) after eight years of this Liberal Prime Minister, the cost of groceries is up 11%,
(iii) after eight years of this Liberal Prime Minister, half of Canadians are cutting back on groceries,
(iv) after eight years of this Liberal Prime Minister, 20% of Canadians are skipping meals,
(v) after eight years of this Liberal Prime Minister, the average rent for a two-bedroom apartment across Canada’s 10 biggest cities is $2,213 per month, compared to $1,171 per month in 2015,
(vi) after eight years of this Liberal Prime Minister, 45% of variable rate mortgage holders say they will have to sell or vacate their homes in less than nine months due to current interest rate levels,
(vii) after eight years of this Liberal Prime Minister, average monthly mortgage costs have more than doubled and now cost Canadians over $3,000 per month,
(viii) the Governor of the Bank of Canada, Tiff Macklem, has said that “inflation in Canada increasingly reflects what’s happening in Canada”,
(ix) the former Governor of the Bank of Canada, Mark Carney, has said: “But really now inflation is principally a domestic story”,
(x) former Liberal finance minister, Bill Morneau, has said that the government probably spent too much during COVID,
(xi) former Liberal Deputy Prime Minister and Finance Minister, John Manley, said that the Liberal Prime Minister’s fiscal policy is making it harder to contain inflation,
the House call on the government to cap spending, cut waste, fire high-priced consultants and eliminate inflationary deficits and taxes that have caused a cost-of-living crisis for Canadians.
He said: Madam Speaker, Biggie Smalls once said, “Mo Money Mo Problems”. With the Liberal government, it seems like the more the Liberals tax, spend and waste Canadians' money, the more problems Canadians have.
After eight years of the incompetent Liberal government and its economic mismanagement, Canadians are feeling the pain. A 40-year high in inflation, high interest rates, and tripling taxes have led to Canadians running out of money.
Even before COVID hit Canada, the Prime Minister was spending record amounts on consultants and his Liberal insider friends. On top of all that, there was $100 billion in deficit spending. Of course, the spending has never ended. During COVID, the government felt good about adding half a trillion to the national debt, 40% of which had nothing to do with COVID spending.
We know now that the Prime Minister's nearly $700-billion spending spree has been more about helping insiders than actually supporting Canadians. Instead of making life better, the Prime Minister spends $15 billion a year on high-priced consultants with whom he has personal connections. Lucrative contracts have gone to companies like SNC-Lavalin and the WE Charity, as well as a company run by former Liberal MP Frank Baylis. He flushed Canadians' money down the toilet each time just to make his friends richer.
The Auditor General has even reported that $32 billion went to subsidizing criminals, foreign nationals and even dead people. Will the government get Canadians' tax dollars back from the people who should not have gotten them? Of course not. Is it going to be knocking on those coffins or tombstones to ask for the money back? The CRA seems more interested in going after law-abiding, living, breathing Canadians than Liberal-friendly corporations and criminals.
No wonder everything feels broken in this country today. Even our health care, airports and trains are a mess, and standard government services like passports or immigration are so backlogged it will take years to undo the damage once the Conservatives take over.
The cost-of-living crisis in this country is only getting worse. Inflation remains three times higher than the Bank of Canada's 2% target. Grocery prices are inflating by 11% every single month, and Canadians cannot afford home heating even if they can afford a home.
The fiscal policies of the Liberal government have left Canadians in a hole. The Prime Minister, who admits he does not think about monetary policy, is clearly not thinking of fiscal policy either. The result of hundreds of billions of dollars being added to the national debt is that the government has created inflation, which has taken the money out of everyday Canadians' pockets. It has taken the food out of Canadians' mouths and the roof from over their head, and the possibility of retirement is now just a dream. Now one in five Canadians is out of money, skipping meals, or accessing charities for help just for basic necessities; 60% of Canadians are cutting back on groceries, while 41% are looking for cheaper, less nutritious options.
Even if people can get their grocery bill down, the Liberal government's inflation is making everything else expensive. The average rent for a two-bedroom apartment across Canada's 10 biggest cities is $2,213 a month, compared to $1,171 a month in 2015. That is an almost 90% increase in rent. One of the issues complicating the price of renting is the need for more supply. Inflation has made the price of building housing units substantially more expensive while increasing red tape and taxes, disincentivizing builders from creating much-needed units.
Canada is becoming a nation of renters. According to RBC, the number of renters has increased at three times the rate of the number of homeowners in just the past 10 years. It is not only young Canadians who are increasingly turning to rent. The shift to renting is across age groups and geographic areas. RBC is projecting that the rapid growth in renters is not going to slow down, and it is clear that the home affordability crisis plays a significant role in that. The number of new homes completed in a year has increased only by 13% from 2015 to 2022.
I am glad to share my time with the great member for Simcoe North.
The Canada Mortgage and Housing Corporation says that if the current rates of new construction continue, housing supply will increase only by 2.3 million units between 2021 and 2030. CMHC projects that Canada must construct an additional 3.5 million units by 2030 to restore house price affordability.
What is most concerning to me is the lack of understanding that the government has of Canada's housing supply crisis. Instead, the Liberals continue to blame other factors or people for their own failures. We do not import land, workers or many of the supplies needed to build a house. I was in the homebuilding industry before coming to this place. I know first-hand that houses can be built using Canadian lumber, metal and workers. Russia, Ukraine and China do not play a part in that, yet house prices have doubled and Canada has the fifth-biggest housing bubble.
While home prices have come down from the crazy highs of last year, they are still significantly higher than prepandemic levels. The government's solution is to give tax credits and handouts, which do not address the housing supply issue, and provide more money to drive home prices. Even if homebuilders can meet the need for 5.8 million new units by 2030, Canadians still face high mortgage costs and diminished purchasing power.
Inflation has decimated paycheques and for first-time homebuyers, paying for a new home is daunting. As of 2021, Canadians would have to spend over half of their disposable income to purchase a home, and that number is only growing. Mortgages are now costing Canadians 60% to 70% of their paycheque and, at the same time, banks continue to raise mortgage payments to respond to the eight consecutive rate hikes by the Bank of Canada. Over 80% of homeowners with a variable rate mortgage have hit the point where their mortgage payment is made entirely of just interest and none of that on the principal.
I hear from industry experts and people in the financial sector that they are already seeing a rise in the number of people turning in their keys and defaulting on their mortgages, a sign that we are dangerously close to repeating the Pierre Trudeau era. The ratio of household debt to disposable income is at an all-time high of 183%, proving that Canadians are over-leveraged amidst the Liberals' overspending. Bank of Canada governor Tiff Macklem is using this as a reason for pausing interest rates, despite him and the current finance minister telling Canadians it was okay to spend and borrow as much as they liked because interest rates were going to be so low for so long.
Now, when Canadians face this affordability crisis and high inflation and interest rates, Governor Macklem and the finance minister seem unconcerned with the potential for a debt default crisis. Instead, the Liberals are so ignorant that they keep spending on inflationary waste like their insider consultant contracts.
1514 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- menumenu
- notificationsnotifications
- home
- mailmail
- searchsearch
