SoVote

Decentralized Democracy

Don Davies

  • Member of Parliament
  • Member of the National Security and Intelligence Committee of Parliamentarians
  • NDP
  • Vancouver Kingsway
  • British Columbia
  • Voting Attendance: 58%
  • Expenses Last Quarter: $153,893.57

  • Government Page
  • May/6/24 1:35:20 p.m.
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  • Re: Bill C-69 
Madam Speaker, millions of Canadians are really struggling right now. The cost of living is up dramatically. It is getting much harder to pay rent, to pay a mortgage, to buy food and to pay bills. This has gone on for several years now for many Canadian families, and I think it is fair to say that communities across Canada are really feeling the toll of the economic difficulty facing this country. However, big corporations and the ultra rich are doing better than ever. They are making record profits, often by gouging Canadians with sky-high prices. Even with corporate profits soaring, the investments in Canadian workers and in the Canadian economy are declining. Major shareholders and top executives are reaping enormous benefits, while the promised trickle-down to workers, communities and consumers, promised by the right to North Americans around the world since the beginning of the century, is as illusory as it has ever been. New Democrats recognize these facts. That is why we are using our power in this minority Parliament to deliver results for people. In the 2024 budget alone, New Democrats have compelled the government to do the following: to build more homes, to preserve existing affordable housing and to protect renters; to bring in universal, single-payer pharmacare, starting with contraception and diabetes medications and devices; to establish a national school food program; to reverse damaging cuts to indigenous services; to invest in accessible, high-quality, non-profit child care; to establish a dedicated youth mental health fund; to double the volunteer firefighter tax credit and the search and rescue volunteer tax credit; and to take the first step toward tax fairness in this country by making wealthy Canadians pay a bit more on their capital gains profits. It is funny that while I have been speaking, I have heard nothing but catcalls from the Conservatives, who have opposed every single one of the points I just mentioned. That gives people a flash into what a Conservative government might do for Canadians. I think it is quite clear that it would reverse every one of those measures. While these achievements illustrate, in part, what a New Democrat government could accomplish, the 2024 budget does not fully reflect our party's vision. This is not an NDP budget, but it was a budget that we were able to influence in a minority Parliament. Likewise, Bill C-69, the bill under consideration in the House, the budget implementation act, 2024, No. 1, includes many of those positive measures that the NDP was able to compel the Liberal government to implement. However, we acknowledge that the legislation has several and significant shortcomings. In our view, there is much more the federal government can and should be doing to make this easier for people and to provide opportunities for the generations to come. For our part, New Democrats will not stop working to deliver results for people. I want to cover some positive aspects of Bill C-69 because we have indicated that we intend to support this legislation. First, it would launch the new national school food program. This program would be in place as early as the 2024-25 school year and would help over 400,000 children access the food they need to grow healthy and to learn. This would be an important first step toward establishing a national school food program or national standards. This is a critical gap felt strongly in a time of sky-rocketing food prices. Across Canada, the reality is that nearly one in four children do not get enough food, and more than one-third of food bank users are children. According to Children First Canada, there has been a 29% increase in food insecurity for children in the last year alone. A national school food program not only would give students in Canada access to nutritious food, but also would make healthy eating a daily lesson for our kids. By integrating lessons on food growing, nutrition, preparation and cultivation into established curricula, a national school food program can encourage children to adopt lifelong healthy eating habits. We know, from international best practices, that all children benefit from universal school food programs, not just children from low-income households. Countries with a national school food program have documented better academic performance, improved short- and long-term health for children, help for family budgets and improved efficiency in the health care system. Bill C-69 also includes measures that would make housing more affordable in a few ways. It would enhance the home buyers' plan by increasing the withdrawal limit from $35,000 to $60,000 and would temporarily add three years to the grace period before repayments to an RRSP were required. Bill C-69 would start to crack down on short-term rentals to unlock more homes for Canadians to live in by denying income tax deductions on income earned from short-term rentals that do not comply with provincial or local restrictions. It would ban foreign buyers of Canadian homes for an additional two years, until January 1, 2027, to ensure homes are used for Canadians to live in and not as a speculative asset class for foreign investors. Bill C-69 also includes measures that would make life more affordable Canadians in other ways. It would make it easier to find better deals on Internet, home phone and cellphone plans by amending the Telecommunications Act to better allow Canadians to renew or to switch between plans and to increase consumer choice to help them find a deal that works best for them. We know that Internet and cell services are now core staple utilities for Canadians, and Canadians pay among the highest prices in the world. This happened under the current Liberal government, and it happened under the previous Conservative government. New Democrats know we have to drive those prices down for Canadians to meaningfully participate in work-at-home life. It would crack down on predatory lending by strengthening enforcement against criminal rates of interest to help protect the most vulnerable Canadians from harmful illegal lenders. It would make it easier to save for our children's education by introducing an automatic enrolment in the Canada learning bond to ensure all low-income families receive the support they need for their children's futures. It also includes measures that would support workers. Bill C-69 would protect gig workers by strengthening prohibitions against employee misclassification in federally regulated industries. It would establish a right to disconnect to help restore the work-life balance for workers in federally regulated industries. It would extend additional weeks of employment insurance for seasonal workers in 13 targeted regions until October 2026. It would advance employee ownership trusts to enable employees to share in the success of their work by encouraging more businesses to sell to an employee ownership trust. Bill C-69 would deliver two major investment tax credits to help build a more sustainable future, and those are the 30% clean technology manufacturing investment tax credit and the up to 40% clean hydrogen investment tax credit. I sat in the Standing Committee on Finance, where I heard from businesses across this country that cannot wait to get these tax credits in place so that they start to make the investment in sustainable forms of energy that not only would create the jobs of the future but also would help Canada meet our carbon reduction targets. I have already mentioned that Bill C-69 would provide support for volunteer first responders and the care economy workers in rural and remote communities. It would do this in a couple of ways. It would expand the Canada student loan forgiveness program to pharmacists, dentists, dental hygienists, midwives, early childhood educators, teachers, social workers, personal support workers, physiotherapists and psychologists who choose to work in rural and remote communities. This would build on existing loan forgiveness for doctors and nurses. We all know our rural and remote areas probably feel the pinch of a health care system that is not providing fast enough or good enough service, and it is important this budget recognizes that and takes some steps toward addressing it. I want to talk for just a moment about the Canada disability benefit because I mentioned that this bill has some serious deficiencies. In my mind, this is one of the most major ones. Despite its plan announced earlier to provide a maximum benefit to people living with disabilities to lift them out of poverty, which is the claim and the goal, which the NDP agrees with, the Liberal government decided to back that up by giving those Canadians $200 a month. One does not need to be an economist to know that it does not come anywhere near to lifting anybody out of poverty, but frankly, it is almost an insult. At present, a single adult with a disability will live below the poverty line if they receive funding from any of the provincial programs across Canada, and an additional $200 a month is not enough to bring them even to the poverty line. There are over a million and a half Canadians living with disabilities who live in poverty in this country, yet this plan would also have a restrictive eligibility requirement that would limit access to, at most, an estimated 600,000 people. We are deeply disappointed to see that broken promise, and we will continue to fight for Canadians living with disabilities. We know they need sufficient income in this country not only to let them get out of poverty but also to meaningfully participate and to live enriched lives, where they can contribute as fully as they can. It is not only good for them, but also good for communities and our economy as well.
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  • Apr/29/24 1:06:54 p.m.
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Mr. Speaker, spending on machinery and equipment by businesses in Canada, and on research, development and innovation, has been falling as a share of GDP in Canada for many decades, in fact dating back to the large corporate tax cuts that Paul Martin introduced at the turn of the century. To compare us to the United States, in 2014, investment support per worker in the U.S. was $20,700, and it was $14,400 in Canada. In 2023, the U.S. spending per worker rose to $27,800, and it is only $14,500 in this country. It has gone up $100 in about 10 years. I am wondering whether my hon. colleague would agree with me and the NDP that we need to find ways to have the business sector in this country invest more in machinery and equipment and in technology and innovation, and whether he has any ideas to share with the House as to how we could do that to better support workers and, by doing so, improve Canada's economy.
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  • Apr/18/24 12:34:20 p.m.
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Madam Speaker, I have seen the numbers and I listened to the finance minister state that Canada is leading the G7 in foreign direct investment. I would turn my attention to domestic investment. I am not interested in having only foreign companies come into Canada to develop our economy. I want to build strong Canadian businesses and strong champions here at home. We have a lack of investment by Canadian companies in machinery, equipment, technology and innovation that has been lagging and dropping for many years. That is one of the prime reasons Canada is not reaching its potential as an economy. We should be the wealthiest country in the world. We have everything in this country: land, minerals, oil and gas, food, a well-educated population and strong social supports. However, we are not reaching our potential. That is because of decades of poor economic decisions made by successive federal governments that failed to fully harness the potential that is here.
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  • Apr/18/24 12:15:34 p.m.
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Madam Speaker, I rise today to speak to budget 2024 and to deliver my first speech in the House as the shadow minister of finance for the New Democratic Party of Canada. I am deeply honoured to assume this important position, and as I do so, I am reminded of the core economic objectives of a progressive political party in a modern democracy, the principles that have underpinned impressive results in many social democratic countries around the globe. These include the following: to build a strong domestic economy that works for all citizens, not just the privileged; to harness national assets for the collective good while creating a thriving market that produces quality goods and services; to respect both those who utilize their entrepreneurial talents and the workers whose skills and energy are essential to their realization; to develop our resources in an intelligent, sustainable and responsible manner, respecting both future generations and our planet, which, after all, are the foundation of all economic activity; to incentivize productive activity, to reward hard work, to distribute wealth fairly and to take care of those who, through no fault of their own, need our assistance; and to advance equality and to create the conditions necessary for everyone to have a full and fair opportunity to realize their potential to contribute and to succeed. The document under debate serves as a crucial reminder of what a national government can do to help realize these goals, both in its observance and in its breach. It also shows what an effective opposition can achieve when we act maturely and work to fix what is broken, instead of engaging in division and pessimism. Although conflict may appear expedient to those politicians who want to exploit feelings of frustration and anger, it does not get results for people, and it weakens our institutions and democracy. As Jack Layton would often remind us, the opposition's job is not only to oppose, but also to propose. This budget is product of applying this approach. In contrast to the other opposition parties in the House, the NDP has worked to deliver tangible benefits for Canadians. In this budget alone, Canada's New Democrats have compelled the Liberal government to move in a number of important, substantive and positive directions. These include the following, which the NDP has championed and has fought for, in some cases for decades: to build more homes, to preserve existing affordable housing and to protect renters, helping address one of the most foundational issues in society; to set the foundation for universal public pharmacare, starting with contraception and diabetes medications and devices, helping millions of Canadians and starting us well on the path to comprehensive drug coverage for all; to establish the very first national school food program, helping children learn and stay healthy while providing real relief to families hurt by high food prices; and to reverse damaging cuts to indigenous services, an area that cries out for resources and for reconciliation. Further, these also include the following: to invest in accessible, high-quality, non-profit child care, a vital social support to families, and to women in particular; to increase funding for pure and applied research and to better support Canada's students, keys to Canada's productivity and innovation; to increase the capital gains tax on the wealthiest 1%, a measure that would return some $19 billion to the treasury over the next five years from the wealthiest 1% in Canada; to improve Via Rail capacity, helping connect communities and helping the environment; to double the volunteer firefighters' and the search and rescue volunteers' tax credits; and to create a dedicated youth mental health fund, continuing to move this critical area into our mainstream health care system. These measures would provide urgent relief for millions of Canadians, and make no mistake, they would not have happened without the pressure and the advocacy of every NDP member in the House. However, it is crucial to emphasize that while these achievements illustrate in part what a New Democrat government could accomplish, the current budget does not fully reflect the party's vision. This is the result of a major difference between the NDP and the two old-guard establishment parties. New Democrats see government as a profoundly important instrument of public good, as something that should stand firmly with and for people, not private powerful interests. We see it as a positive force that can provide resources collectively that individuals alone cannot, that can build institutions of opportunity available to all, regardless of personal wealth and station. We alone see the vital interconnectedness of social, economic and environmental justice. In contrast, the Conservatives treat government with suspicion; it is to be feared, scorned, reduced and marginalized. The Liberals, for their part, are beholden to crippling incrementalism, afraid to take bold action, even in the face of great social need or clear evidence. More to the point today, the Conservatives identify an economic crisis but deny that there is a climate one. The Liberals acknowledge a climate crisis but fail to fully recognize an economic one. Only Canada's New Democrats firmly understand that Canada faces both an economic crisis and a climate crisis. We stand alone in the understanding that these crises are intertwined and that we will make real progress only by successfully addressing both. The context for this budget is clear. The reality is that millions of Canadians are grappling with the rising costs of living and are struggling to pay for essentials like food and housing. At the same time, forest fires lay waste to entire towns; droughts threaten our food supply; floods destroy our communities; unprecedented heatwaves claim the lives of our elders; and children are confined indoors when the air is unfit to breathe. While politicians, like the Conservatives, who are in denial or who are ignorant of these realizations, point to the costs of dealing with these crises, they fail to recognize the far more expensive price of not dealing with them. The result is that Canada is falling behind in meeting our climate commitments and in the need to pivot to a sustainable economy that works for all Canadians. While this budget promises considerable progress in a number of areas, progress that will depend on real implementation, a perennial shortcoming of the current government it must be noted, it also falls short in making the necessary investments and the policy changes that the current crises demand. I will highlight housing. There are many issues in politics, but some are foundational, existential even. Housing is one of these. Housing is not just a commodity, but also a necessity. It anchors us in community and connects us with family, neighbours, friends, school, work and services. However, because of decades of successive Liberal and Conservative government policy failures, encampments are expanding across the country at record levels in both urban and rural areas. The federal housing advocate has called this a “life and death crisis”. The financialization of housing has left one-third of all seniors housing in Canada in the hands of institutional investors, along with 30% of purpose-built rental buildings. Young people are shut out of the housing market, and renters are losing hope of ever owning a home. Mortgage and rent payments are devouring an unsustainable share of people's incomes. The Office of the Federal Housing Advocate recently released an analysis of Canada's housing supply shortage, which found that we are missing 4.5 million homes that are affordable to people in housing need. International evidence demonstrates that direct financing to scale up non-market housing, such as co-operative, non-profit and public housing, is the most efficient and effective way to address this shortfall, yet the Liberal government continues to rely heavily on the for-profit housing industry to fix the problem. This does not mean that the private market has no role in housing construction; instead, it underscores the importance of ensuring that public investments yield tangible public benefits and prioritizes housing solutions that truly serve the needs of our communities. It is important to note that public spending on non-market housing is anti-inflationary. It expands supply and puts downward pressure on prices across the housing market. Moreover, if public spending is offset by measured, fair tax increases, the net effect on aggregate demand remains neutral. This budget makes a lot of promises about housing, which if carried out will go a long way in helping meet our goals. However, the problem is that we have heard this before. In 2017, the Prime Minister announced a $40 billion national housing strategy, saying that it was, “a robust, comprehensive, life-changing plan to help Canadians get into homes, and stay there.” Seven years later, what Canadians have really experienced is a robust, comprehensive and life-changing housing crisis, one in which rent and home prices have doubled. Home ownership is further away than ever, and we have lost 11 units of affordable housing for every one built. While New Democrats support the investments announced in this budget, the real test will be ensuring they are realized. We will do our part to monitor and to press for that to happen. I must say a few words about several weaknesses in this budget. The allocation of a paltry $200 a month for the Canada disability benefit for Canadians living with disabilities is beyond deficient. It is insulting. It is far below what is necessary to lift these citizens out of poverty. Combined with provincial disability programs, it fails to meet even this government's own assessment of subsistence at $2,000 per month when it set the CERB amount during COVID. This is unacceptable and New Democrats call for it to be raised substantially and immediately. This budget aims to slash 5,000 public service jobs through attrition. This is short-sighted and wrong. We need our public servants to deliver the programs Canadians rely on. We all recall how vital our civil servants were during COVID, delivering the benefits we desperately needed when we were in a national crisis. What we ought to slash is the use of government outsourcing and private consultants, something that is far more costly and, in many cases, scandalously wasteful. We need only look at this government's outrageous expenditure of $60 million to produce the ArriveCAN app, which proved unreliable and of questionable utility, something that should have been produced for, at most, one-tenth that cost. This budget is a missed opportunity to address the gaping tax unfairness and imbalance that successive Liberal and Conservative governments have created in Canada. For decades, both old-guard parties slashed corporate taxes, making individual working and middle-class Canadians increasingly shoulder the cost of government. Today, Canada has one of the lowest rates of corporate taxes in the OECD, ranking 33rd of 38 countries. Our federal corporate tax rate of 15% is over 5% less than the United States, and President Biden recently announced his intention to raise U.S. corporate tax rates by some 7%. The upshot is that we could and should implement a prudent and measured increase as well, providing billions of dollars of revenue for programs Canadians need and reducing our deficit while remaining competitive among our peers. This budget also missed a clear opportunity to implement a tax on windfall oil and gas profits. While Canadians were suffering from the after-effects of the pandemic, in 2022 oil and gas extraction companies in Canada made a record-breaking $63 billion in profits. Although data for 2023 has not yet been published, it is shaping up to the be the second-most profitable year in the history of the oil patch. The 2022 federal budget introduced a one-time tax of 15% on profits above $1 billion for banks and insurance companies. The PBO report found that extending the tax to the oil and gas sector could generate $4.2 billion in revenue over five years. New Democrats think that this is a policy measure that is eminently warranted. I would like to also point out the lack of sufficient emphasis in this budget when it comes to the climate crisis. We believe that this is the most important issue facing our planet, another truly existential issue. While addressing it will take concerted global action, Canada must do its part. Although the budget has a number of laudable steps in this direction, including money for the transition to zero-emission vehicles and heat pump retrofits, in our view it should go much farther and faster if we are to meet our international commitments and obligations to future generations of Canadians. Finally, I would like to address the important discussion in Canada regarding productivity. The statistics on productivity levels in Canada are indeed concerning. The Bank of Canada's senior deputy governor recently noted that the need to improve productivity has reached an emergency level in this country, but we do need to analyze and interpret the numbers cautiously. We are clearly still experiencing the after-effects of the pandemic and the unprecedented shocks it imposed on our economy, integrated supply chains and our labour market. We must be careful not to give credence to outdated and offensive ideas that the best way to improve productivity is to blame or put the burden on workers, compelling them to work harder, faster, longer and for less money. A factor that is far more important to address in the productivity problem is the ongoing weakness of business capital spending in Canada. Spending on machinery and equipment by businesses and on R and D and innovation has been falling as a share of GDP for many years, dating back, in fact, to the large corporate tax cuts Paul Martin introduced at the turn of this century. That is an ironic fact, since it was argued, at the time, that corporate tax cuts would spur more business investment, not less. However, the truth is that even with rapid job creation and population growth, business capital investment has not kept up. To address this, the New Democrats believe the federal government must implement strategies that are more effective at increasing capital investment and innovation in Canada, rather than the tired, old, trickle-down theories, like tax cuts for corporations and the wealthy, that clearly have not worked. Other countries, like those in northern Europe and east Asia, have shown it is possible to combine strong investment and technology with strong labour standards and public programs. Canadian workers are skilled and productive. In fact, by some measures, our workforce is the best trained of any OECD country. To put those skills to work to their full potential, workers need good, secure and stable jobs, with access to proper machinery and equipment, lifelong training and the opportunity to earn better wages along with their productivity so that they can share in the wealth their talents and skills create. That is why New Democrats support better vocational training, stronger labour standards and unions that can be active partners in technological change, training, safety and job quality. To conclude, allow me to draw a clear distinction between the diverging economic paths that lie ahead for our country. The Conservatives would prioritize corporate interests, even at the expense of ordinary Canadians. If they have their way, essential services will suffer. There will be no dental care, no pharmacare, no renter protections, no investments in affordable housing or child care, and no school food programs for our children. Under the Liberals' watch, Canadians have been left grappling and struggling with rising costs, while big corporations and wealthy CEOs are thriving. It is a stark contrast. The privileged few prosper, while the majority struggle to make ends meet. That is unconscionable in a country as wealthy as Canada. The affordability crisis has reached a breaking point, yet the Liberal government still hesitates to take decisive action. It only acts when pushed by the NDP. It took the New Democrats to force its hand in budget 2024 to push for policies that genuinely benefit people. Our vision extends beyond the present to a future where our federal government champions affordability, equity and the well-being of every family. It would be a Canada where no one is left behind, where accessible health care, housing and opportunity for all are not mere aspirations, but fundamental rights and the reality. Together, we know we can build a Canada that thrives on fairness, compassion and shared prosperity. Do not ever let them say it cannot be done.
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  • Feb/14/23 4:59:42 p.m.
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Mr. Speaker, like my colleagues, one of the issues I have with this motion is that it does not place any emphasis at all on the role that corporate profits have in driving up the cost of living in this country. It is quite clear that this is the case. Another issue I have is with the Conservative orthodox economic thinking that deficits invariably cause inflation. If that were the case, we would have had rampant inflation in this place when the Conservative government of Stephen Harper ran seven consecutive deficits from 2008 to 2015, which did not happen. I have heard the Conservatives say it is inflationary to spend money on dental care, yet the leader of the Conservative Party has said he would adopt the recently announced health care accord for the next 10 years, which injects an additional $46 billion into the economy. Can my hon. colleague explain how that is not inflationary if other government spending is?
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