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Decentralized Democracy

House Hansard - 23

44th Parl. 1st Sess.
February 3, 2022 10:00AM
  • Feb/3/22 5:00:50 p.m.
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  • Re: Bill C-8 
Madam Speaker, it is an honour and a privilege to be confused with the hon. member for Battle River—Crowfoot, who is a great member from that part of the country. I am located a bit north of his riding. Nonetheless, I am happy to share the stage with him. He is a good friend of mine. Today I am speaking about the fiscal update, Bill C-8. I think the title of this story is “inflation”. We have seen inflation run wild right across the country. I am an auto mechanic and come from the automotive world. I spent most of my life before this place working at a Chrysler dealership in northern Alberta and Abbotsford, B.C., so that is the world I know more significantly. I do not know about others, but I have been driving around Canada noticing that the parking lots of car dealerships are empty. Anyone who has a three-year-old vehicle can trade it in for the same amount of money it was bought for three years ago. I talked to a fellow during the election campaign who had a 2019 Ford one-ton pickup. He uses it to pull his holiday trailer. The dealership called him to say that since he only uses his truck to pull his holiday trailer, would he consider trading in his 2019 truck in August for a 2022 pickup truck in April of 2022. The man was told the dealership would guarantee him a new truck in April of 2022 if it could have his truck that day with no increase in his payments or the money he owes. It would be a clean swap. He got a pickup that was three years newer. That is a picture inflation. That is a picture of supply chain shortages and life getting more expensive. The fact that pickup trucks are now more expensive today than they were three years ago shows that inflation is happening. We see it all around us. Now we have major supply chain shortages that are causing some of this inflation, whether it is microchips not making it across the ocean from China to manufacturers or a problem with trucking, but it also has to do with the amount of cash that is being put into the economy in Canada. We are also noticing higher prices in grocery stores of things that we have always relied on. To some degree it is the success of capitalism; when people go to the store, the bread lines up for them. The things we have come to appreciate and take for granted in many cases are not necessarily there today. Because of shortages, we are seeing the prices go up. Farmers are saying they are getting record prices for their products, but when they buy their inputs, their inputs have increased threefold. They are getting double for their products, but their inputs are threefold higher, so their margins are all in flux. They are not able to predict what they are going to be doing and, in many cases, it does not matter how much money they have, they just cannot get the product. It does not matter whether the product was priced at zero dollars or $100. If they cannot get it, they cannot get it. That is an increasing challenge in this new world. The point of all of this is that we are driving inflation through flooding the country with cheap cash. Statistics Canada says inflation is currently running at nearly 5%. When people can get money at 2% or 3%, they are basically getting paid to take on debt and we are seeing massive amounts of household debt. People are using the equity in their homes to run their lives, and it is spurring on inflation across the country. All of these things contribute to inflation. Folks continually tell me their groceries have gone up twice the price from a year ago. There are increased trucking costs associated with this. I spoke to a sawmill owner in Slave Lake, Alberta. Two years ago, it typically cost him $2,000 to get a B-train of lumber down to the coast; today it is costing him anywhere from $5,500 to $6,000. That is a threefold increase in the price of the trucking. The fuel cost is up 50%. A year ago it was hovering around a dollar; now it is running at about $1.50. All of these things are making our lives more expensive. The other thing I heard from constituents around New Year's was that the December natural gas bill for most people in my riding was the highest bill they have ever had, and a big part of that is due to the carbon tax. Folks were complaining to me that the carbon tax portion of their bill was larger than the actual natural gas costs of the bill. There are the transmission fees and things like that on there, but the actual natural gas they pay for would have been about a third of the bill and then the carbon tax would be about a third of the bill. That was extremely frustrating to many Canadians, given that they said they had already done everything to reduce their bill. They had upgraded their windows and they had put in more insulation into the ceiling and they had reduced the temperature in their house, all to try to reduce their bill, and yet they had the largest bill in their entire life in December 2021. Again, we are seeing inflation being driven by things like the carbon tax and government policy in this country. They were calling on me to alleviate the carbon tax on home heating or eliminate the carbon tax in its entirety. The other thing I wanted to talk about is about what it is going to take to get the economy up and running again. We are seeing the cost of labour going up significantly. There are plentiful jobs. During the election I stopped in at a restaurant, and it was not open. It was four o'clock in the afternoon, and they were not open, so a week later when I drove through, I stopped in again, earlier in the day. I had a chat with a waitress and I said I was there last week and they were not open. She said, “Oh, no; we close at four o'clock. We have not been able to get enough staff to stay open all day.” That is something I hear from people all across northern Alberta—that they cannot find enough people to fill the jobs. Again, that is causing them to offer more pay to attract people to come, and that is also another thing that is driving inflation. Basically, if someone is getting paid more to do the same job but their life costs more on the other side, they have not gained anything. All that happens is that the dollar numbers are higher. That, essentially, is what inflation is. It is the devaluing of our money so that it takes more money to do the same thing, and that is happening in both directions. That is happening in the wages and also in the costs of everything. We are not necessarily seeing massive increases in production. We are seeing bigger numbers all around, larger numbers, but we are not necessarily seeing the tonnes of coal go up significantly or the barrels of oil go up significantly. All we are seeing is the dollar numbers associated with that going up, and that is, in a nutshell, what inflation is. The government has the levers to make sure that our dollar is worth something in the world, that our lives are affordable and that when we work for our money, we are able to pay for the things we need in order to live our lives. This particular suite of policies the government is proposing would do nothing to alleviate inflation, and for that reason I will not be supporting this bill.
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  • Feb/3/22 5:10:45 p.m.
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  • Re: Bill C-8 
Madam Speaker, the hon. member described the problem with excellence, but his allocation of fault may be a little faulty. I was wondering how the hon. member thinks that the Government of Canada has much to do with the supply of microchips to make cars go. I have made the same observation that he has. Car lots are empty. Members should know that the hon. member is quite an outstanding mechanic, and had won several awards for his work prior to being an MP. However, I am not sure that his speech is actually such an outstanding description of the issues. Could the member tell me what the Government of Canada has to do, for instance, with the issue of supplies, or input costs, or grain or other necessities? These are just issues that are worldwide, and we are the unhappy recipients of that reality.
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  • Feb/3/22 5:11:53 p.m.
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  • Re: Bill C-8 
Madam Speaker, the basic issue that we are dealing with is that the government has pumped a huge amount of cash into the system, and that has inflated the prices that people are receiving for their goods. All that has happened, though, is that everybody has taken advantage of the increased prices that they are getting for their products. Then the folks on the bottom end are saying their costs are going up as well, so they have to increase their prices. Basically, if my grain is sold for X dollars, and my fertilizer company sees that the farmer who was getting $10 a bushel last year is now getting $20 a bushel, it will probably increase the price of its product and still get paid for it, because it thinks that farmers are now flush with cash. That has a domino effect down the economy. A host of government policies are driving the costs up in both directions.
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  • Feb/3/22 5:13:07 p.m.
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  • Re: Bill C-8 
Madam Speaker, I thank my colleague from Peace River—Westlock. He raised the issue of the supply chain and cars, and I would like to come back to something the member who spoke before him said. That member said that it is important to invest in better windows but that the government should not necessarily be investing in electric cars by providing credits to further encourage the electrification of transportation, for example. I would like to hear what my colleague has to say about this issue because I think that, if we want to get away from oil and move toward a much greener economy, electric vehicles are the way to go. What does he think about providing credits for electric cars and making an investment in that industry?
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  • Feb/3/22 5:13:50 p.m.
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  • Re: Bill C-8 
Madam Speaker, I guess I am not a big fan of picking winners and losers. I am a big fan of things that work well and things that do what they are intended to. For that reason, I am excited about the electrification of, for example, the new Ram 1500, which is like a mild hybrid. It gives a 13% increase in fuel economy without sacrificing any of the other capabilities of that pickup truck. I am amazed and impressed by it. I would just push back a little bit to say that the environmental impact of electrification is not zero. There is an environmental impact of electrification. If someone is getting their power from a hydro dam somewhere, the CO2 emissions might be reduced, but if they are getting their power from a coal-fired power plant, electrification does not help us at all. That does not say anything about mining for the cobalt and the things that go into these batteries, and the copper for all the wiring that we need for these kinds of things.
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  • Feb/3/22 5:15:08 p.m.
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  • Re: Bill C-8 
Madam Speaker, in terms of inflation, I do not think we will see more inflation or a better example than that of prescription drugs, which have gone up every year for years and years. In fact, it is the single fastest growing product in insurance services. We know that with pharmacare, with bulk buying, with streamlined administration and with cost-related non-adherence, we can save over $4 billion a year and produce drugs for every Canadian at a reduced cost. I am just wondering if my hon. colleague can explain why the Conservative Party is opposed to universal pharmacare, when it will help reduce the cost of drugs.
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  • Feb/3/22 5:15:48 p.m.
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  • Re: Bill C-8 
Madam Speaker, I am happy to answer this question and I thank the member for asking it. There is no other industry that is more tied to government spending than the pharmaceutical industry. It is 100% driven by the government pouring money into it. The fact is that they put huge, bold letters on the bottles of pharmaceuticals to show how much these items cost so that the consumer knows what the cost is. That is how they drive down the costs of these things. Government spending on specific things traditionally raises the price of them and drives inflation, and there is no better example than in the pharmaceutical industry.
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  • Feb/3/22 5:16:35 p.m.
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  • Re: Bill C-8 
Madam Speaker, I rise today to give my maiden speech in this 44th Parliament. It is an honour to continue to represent the wonderful riding of Scarborough—Agincourt, and I want to thank my constituents for placing their faith in me and re-electing me once again. A note of appreciation goes to the many volunteers and donors who gave great support. Despite the pandemic and disruptions outside, I am here in the House today to speak about Bill C-8, an act to implement certain provisions of the economic and fiscal update tabled in Parliament on December 14, 2021.
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  • Feb/3/22 5:17:24 p.m.
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Madam Speaker, I rise on a point of order. There is a problem with the interpretation and it is creating a lot of confusion.
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  • Feb/3/22 5:17:31 p.m.
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We are going to check a few things. We are going to try again. The hon. member for Scarborough—Agincourt.
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  • Feb/3/22 5:18:05 p.m.
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  • Re: Bill C-8 
Madam Speaker, through Bill C-8, we are continuing to provide much needed support to Canadian workers and businesses through the implementation of tax measures, including tax credits. Targeted tax measures can help make life more affordable. Through Bill C-8, we hope to create a number of tax credits that would benefit Canadians, such as a ventilation tax credit to improve air quality for small business owners and an expansion of tax deductions for travel expenses incurred by residents of northern Canada, and tax credits for teachers and early childhood educators who spend their income on school supplies, and for farmers by returning fuel charges and involuntary backstop jurisdictions. Furthermore, in Scarborough—Agincourt, we have many schools that are older and could benefit from a top-up from the safe return to class fund, which the bill seeks to provide. It has taken a pandemic to highlight the fact that many of our schools rely on aging infrastructure and that there is a need to bring it up to current ventilation standards for safe indoor air. Although education is a provincial matter, this Liberal government has stepped in to ensure a safe learning environment is possible. The original funds provided $2 billion to provinces and territories, and this top-up of $100 million will help increase outdoor air intake and/or increase air cleaning in order to help reduce the transmission of COVID-19. I could see a lot of schools benefiting from the repair or replacement of heating, ventilation and air conditioning units and increasing maintenance of the existing systems. In my riding's local school board, this fund has not only been used to address HVAC recommissioning deficiencies, but it also went toward purchasing over 10,000 additional HEPA filter units across 314 schools, many of the high schools in the riding who do not have full air conditioning or have poor circulation of air. With older schools, installation of operable windows would be helpful. Some of the interior classrooms that do not have windows, such as a computer lab, would benefit from portable air filtration units. By providing this top-up, schools across Canada would be able to make those necessary renovations and repairs while also funding critical programs that would support student mental health and nutrition. While we are on the subject of schools, the teacher and early childhood educator school supply tax credit would also greatly benefit students in Scarborough—Agincourt and beyond. It currently stands at 15%, but with the passing of this bill, it would be increased to a 25% refundable tax credit. What is new is that it will no longer require that the school supplies be used in a school or a regulated child care facility. This will enable students to bring home the supplies to do homework or even to use those supplies on field trips. Using technology can further engage students and help those who are in special education classes. Some of these eligible goods, such as external data storage devices that increase a system data storage capacity or wireless pointer devices and printers, are practical, but other goods, such as electronic educational toys, puzzles, video streaming devices and multimedia projectors can take learning up to the next step, open up new worlds and be fun. This can make learning a much more interactive and engaging experience for students. Housing is another area of focus our government is targeting to make life more affordable. Part 2 of Bill C-8 introduces the underused housing tax act, which will support the work of our national housing strategy, reduce homelessness and create affordable housing. We have all heard housing is becoming increasingly out of reach for many people, and this is one way to discourage vacant or underused homes while generating revenue. The underused housing tax act would only apply to foreign owners of residential property who are not Canadian citizens or permanent residents to pay their fair share of Canadian tax by filing an annual return. Residential properties are exempt if they are rented out for at least 180 days, or about six months in a year, so there would be no short rentals like Airbnb. While this alone would not solve our housing issues, this would help on the peripheral in that it would reduce foreign ownership and penalize those who use Canada as a place to passively store their wealth in housing. Taxes on capital gains do not apply to principal residences. Part 3 of the bill touches upon the Canada emergency business account loan, which has provided over $49 billion in interest-free partially forgivable loans to nearly 900,000 small businesses affected by the pandemic. Many of the small businesses in my riding of Scarborough—Agincourt have been finding the roughly four lockdowns in Ontario difficult and have asked for an extension on their Canada emergency business account loans. This loan has helped a variety of businesses, from restaurants to manufacturing companies to fashion wholesalers. Our government listened. The time period would be extended from December 31, 2022, to December 31, 2023. If a business repays its loan by December 31, 2023, up to a third of the value of its loan, up to $20,000, would be forgiven. Loans not repaid by this date would convert to a two-year term loan starting January 1, 2024, with 5% interest per annum. Part 3 of this bill would set a limitation period of six years for debts due under the CEBA program to ensure that CEBA loan holders are provided consistent treatment, no matter where they live. The proposed limitation period is also consistent with other COVID support programs, such as those covered by the Canada Recovery Benefits Act. This past January, with the surge of the omicron variant, came a corresponding need to obtain rapid tests. The government had already purchased and shipped over 180 million rapid tests and has signed agreements to secure over 460 million tests in total. Part 6 of this bill would allocate an additional $1.72 billion to the Minister of Health for the procurement and distribution of rapid antigen tests to provinces and territories. Many seniors have called my Scarborough—Agincourt constituency office worried about leaving their homes to get a rapid test, but still wanting one. This is why this bill is so important. It would give people the peace of mind that they can access rapid tests during difficult times where then could be a possibility of testing positive. Our recently introduced Bill C-10 authorizes the Minister of Health to make payments of up to $2.5 billion out of the consolidated revenue fund to purchase COVID-19 tests. I know many seniors will be less anxious, knowing they have something at home that can easily be administered and distributed by local organizations they can trust. Bill C-8 has many practical parts, whether it is helping small businesses and schools or bringing families peace of mind. I hope we can all agree and pass this bill to a second reading.
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  • Feb/3/22 5:26:00 p.m.
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  • Re: Bill C-8 
Madam Speaker, my colleague spoke a lot about investments in housing. Although there have been some investments, I would have to say that more needs to be done. Under consecutive Conservative and Liberal governments, we have had decades of underfunding in affordable housing with rents geared to income. In my riding of Winnipeg Centre, we have a housing crisis that is literally costing lives. I wonder if my colleague agrees with me that more needs to be done to deal first of all with this problem. Does she agree that her government continues not to do enough?
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  • Feb/3/22 5:26:50 p.m.
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  • Re: Bill C-8 
Madam Speaker, I will agree with you that all of us need to do more for housing and housing affordability for everybody. However, our government, through the national housing strategy, which is a 10-year program, will be investing $72 billion. I feel that is something that Canadians can rely on and will understand that our government is there to support them, whether they are first-time homebuyers looking to go through the new housing accelerator fund, working with the municipalities, hoping to see some fairness in a real estate action plan that is going to forbid blind bidding or looking at home inspections and making sure there is transparency in the history of recent house sale prices. I believe that the Prime Minister's recent announcement of investing in 10,000 new homes for Canadians is on the right track.
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  • Feb/3/22 5:28:19 p.m.
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I want to remind the member that she is to address all questions and comments through the Chair. Questions and comments, the hon. member for Beauport—Limoilou.
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  • Feb/3/22 5:28:30 p.m.
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  • Re: Bill C-8 
Madam Speaker, over the past few months, we have noticed that the housing construction programs have created certain problems, to say the least. For example, subsidies were given to private companies that ended up charging $2,200 a month for housing, which is not affordable. That is worse than a mortgage plus taxes, electricity and heating. What concrete action will be taken to ensure that these problems, which seem to benefit some companies and some segments of society more than others, never crop up again?
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  • Feb/3/22 5:29:17 p.m.
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  • Re: Bill C-8 
Madam Speaker, as part of our national housing strategy, we have a rental construction financing initiative. We are providing low-cost loans to encourage the construction of sustainable rental apartment projects across Canada. We will also be providing some low-cost funding to all eligible borrowers in the most risky phases of project development of rental apartments.
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  • Feb/3/22 5:30:02 p.m.
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  • Re: Bill C-8 
Madam Speaker, I want to speak about the CEBA loans. Can the hon. member explain why CEBA loans were important for the small businesses, which are the backbone of our economy, especially in Scarborough, which is home to many small businesses? How have those CEBA loans made a difference for our small businesses in terms of keeping their lights on during the darkest days?
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  • Feb/3/22 5:30:31 p.m.
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Madam Speaker, the CEBA loans have been so instrumental in saving many small businesses in Scarborough from completely closing down. They have really helped very small businesses, such as restaurants, carry on to be able to pay their rent and other expenses, like COVID expenses.
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  • Feb/3/22 5:31:10 p.m.
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  • Re: Bill C-8 
Madam Speaker, I am pleased to rise this evening to speak to the economic update. I have a lot to say, but I will have to narrow it down. Let me start with health transfers. This is important to me as a member for the Bloc Québécois, and it is important to Quebec as a whole, to my riding, Manicouagan, and to Canada as a whole. Obviously, these transfers are not included here, and we are disappointed about that. We have known for a long time that the transfers are crucial, but the government may not have realized that yet. Earlier, I heard several colleagues from different political parties say that this is the second year of COVID-19 and there may be a third, though I hope not, but that there is hardly anything about COVID-19 in the economic update. My colleague from La Prairie brought it up again this afternoon. Some 85% of Canadians and 86% of Quebeckers are calling for these health transfers. For many years now, the government has limited, or, I should say, gutted, health transfers. It still refuses to index these transfers, which means that the 22% of expenses that the government currently covers is not enough. We want the government to provide 35% and index the transfers at 6%, but there is absolutely nothing in the economic update to that effect. Everyone knows that COVID‑19 kills. That is one of the things that it does. It kills because the health care system cannot provide the services required and this is because the health care systems in Quebec and the other Canadian provinces have been damaged. When the money is not there, even though it is our money and we have responsibilities, it is hard, virtually impossible, to meet everyone's needs. The federal government loves to boast and act the saviour when it claims that 80%, or $8 of every $10, as they like to say, of COVID‑19 spending came from the federal government. It is far from being a saviour, though, since we will never forget that this is taxpayer money and taxpayers want health transfers. I am using the word “taxpayer”, but I want to remind members that all provincial premiers and Quebec's premier, Mr. Legault, are calling for this as well. I want to point this out because the government has presented an economic update that does not reflect reality and does not take these demands into account. The government likes to boast, though. It is happy, it struts around, acting proud of what it has achieved. I could also talk about two other measures that have not seen much progress. Not only is the economic update weak, but it might also be counterproductive in some cases. To conclude, I would like to speak about jurisdictions. I am again asking the government to do its job. It needs to look after its own affairs and provide the provinces and Quebec with the money to look after theirs. I spoke about responsibilities earlier. There is a huge fiscal imbalance, and Ottawa has so much money that it does not know what to spend it on. It should spend it on health, by sending the transfers and letting the provinces and Quebec manage that money for their own people, because they want to get out of this pandemic. It is not by crippling health care systems that the government will help Quebec and the provinces get through the COVID-19 pandemic. As the Prime Minister stated, there are vaccines, yes, but there is all the rest too, including the health care system. The system needs substantial support. There was and still is a shortfall, and it only continues to grow because transfers are frozen. I would also like to talk about the SMEs in my riding of Manicouagan, which is a vast, remote area covering 350,000 square kilometres of forests, fisheries and mines. There are obviously many natural resources and people all over the riding. SMEs make up a significant segment of our economy. In Quebec, approximately one-third of businesses are SMEs, but I note that the government has not really listened to them. Of course there is the Canada emergency business account, but the government needs to listen to what small and medium-sized businesses want. The situation is evolving as we enter the third year of the pandemic. For example, SMEs had a hard time accessing the wage subsidy. They needed accountants and tax experts, but many of them could not afford those professionals, so they could not ask for help. All the business support programs in the world are useless if entrepreneurs cannot access them because of red tape and impossible criteria. The wage subsidy is great for people who already have enough money to access it, but that does not include small businesses. Members of the chamber of commerce in my riding, Manicouagan, would like to apply a third time. They would not necessarily need $60,000, but even $20,000 would help them stay afloat and survive. It would not be too hard to set up that mechanism. It would have been easy to listen to these businesses and implement the measures they were asking for. The Bloc Québécois has proposed many other ideas for supporting small businesses, particularly with regard to loan forgiveness. The Bloc proposed that the percentage be increased in order to support these businesses based on their revenues at a time of great uncertainty. I am thinking of outfitters in my riding and their revenues. No one was visiting the outfitters during the first year of the pandemic, and the second year was extremely difficult for them because certain health measures prevented people from coming to the region. I am pleased that the repayment deadline is postponed until 2023, because these businesses would not have been able to repay their loans quickly. The year 2023 may not be the right year either. I am therefore warning the government right now that it may have to extend that deadline as well, in order to give these businesses time to rebuild their financial health and get enough revenue coming in to be able to repay the loan and receive forgiveness. The Bloc is in favour of loans. However, we really want the percentage to increase. We are also thinking about e-commerce. Of course this is very important where I come from. People in certain parts of my riding do a lot of their grocery shopping using the postal service. As I have often said in the House, this is very important to me. People have the right to live in remote areas and to occupy the land, and they need to be supported. We already have a great deal of inequity in our postal services compared to the rest of Canada. Northern regions, very remote regions, islands and places with no roads at all really need this service. We want to be able to increase this kind of trade. It would be good for small businesses to be able to import and export. It would also stimulate our economy. The Bloc proposed this, and it is feasible. I would like to talk about several other measures, but I will end with some criticism. As I said earlier, we sometimes need to think about the negative effects of certain measures. Let us talk about the travel tax credit. As I mentioned, I represent a large riding, and I have to travel a few thousand kilometres to get to the House. For someone taking a flight out of the North Shore, the tax credit would cover about one trip a year, and perhaps only one way. The $1,200 will not make it into anyone's pocket right away. For individuals struggling to pay for airfare, waiting until the end of the year to receive the tax credit will not help them. The tax credit will go to people who already have money, people who can afford to put that amount on their credit cards and pay the interest afterwards, which is terrible. This measure will be ineffective. Then there is the issue of commuter workers. People come work in my riding and then leave again. They do not necessarily want to live there because it is hard. They do not spend any money and do not contribute to the economy of the North Shore, but they are the ones who will likely benefit from this tax credit. I am glad they can work. I want everyone to be able to earn a living. At the same time, we have to think about not adopting measures that will ultimately harm the regions. This is incredibly important to me. We have to look at all the policies and these measures in relation to remote regions such as the North Shore.
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  • Feb/3/22 5:41:10 p.m.
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  • Re: Bill C-8 
Mr. Speaker, the member referred, if not directly then indirectly, to the importance of small businesses and how it is important that the government provide financial support. We have done that in many ways, whether through loans, wage subsidies or rent supports. It is important to recognize that the Bloc party supported Bill C-2, which supported small businesses. Now we have Bill C-8 before the House. It provides different types of support, at least in part, through rapid tests for small businesses, which many of them will require, but also for ventilation in schools. I would like to get a sense of the Bloc party's position with respect to Bill C-8. Does the member support this legislation?
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