44th Parl. 1st Sess.
April 25, 2022 11:00AM
- Apr/25/22 1:16:09 p.m.
- Watch
Madam Speaker, I am really pleased to get up this afternoon, on the first day back after a couple of weeks back in our ridings, to speak about the budget. It reminds me of that old adage that people of integrity expect to be believed, and when they are not, time will prove them right.
Time is certainly proving us right on predictions that were made a year and a half to two years ago, when the money-printing machines were going at full force to provide the types of supports that were needed for COVID. There were predictions on this side at that time, and right across the spectrum economists were predicting that inflationary pressures would begin to increase. We are now seeing those inflationary pressures affecting Canadian families in a way that they have not for a generation.
I have been in my riding for the last couple of weeks, as all members have, and received emails, phone calls and text messages from the people of Barrie—Innisfil, who are quite concerned about the inflationary pressures that are happening within my community and in communities across Canada. This morning I happened to be watching the finance committee, and the Governor of the Bank of Canada, Tiff Macklem, was on there. He was asked a point-blank question by our shadow minister of finance: “Can we still consider inflation as transitory?” His answer was no.
We are entering into a period of permanent inflation, it seems, and we know, based on Statistics Canada, that last month it was at 6.7%. We can think of the impact that has on Canadian families and the families I represent in Barrie—Innisfil. The price of everything is skyrocketing. The prices of gas, home heating, consumables, groceries, commodities and the necessities of life are increasing dramatically right across this country, and the expectation, according to the Governor of the Bank of Canada, is that this inflationary period we are in is going to be lasting for a long time. This is going to further impact affordability for families, further erode their retirement savings and really dramatically impact their ability to pay for things, especially at a time when they can least afford them.
We heard, even in the last couple of weeks, in some of the surveys that came out, about how Canadians are desperately clinging to affordability. In many circumstances, over half of Canadians do not have enough money at the end of the month to pay for the things they need, the necessities of life.
This budget actually increases government spending. There are certain things that are sure in life, and the one thing we can count on is that this budget is going to pass. Because of the coalition between the NDP and the Liberals, the New Democrats have signalled that not only are they going to support this budget, but they are also going to support subsequent budgets.
We can sit here and criticize, and I have some things that I want to bring up specifically with respect to the budget as it relates to local issues in my riding of Barrie—Innisfil, but when we want to get an assessment of what people think about this budget, we can go to the experts.
People do not have to listen to us; they do not have to listen to the government or the other opposition parties. They can listen to what respected economists are saying about this budget and the impact it is going to have on Canadians. Don Drummond, who is a former senior Department of Finance official, former TD Bank chief economist and current Queen's professor, said this:
If I were in the business world I’d be extremely depressed, because we are at some point going to have to turn to how we fund all this spending, and it would seem the go-to funding source is corporate income tax.
It was the first seven words, “If I were in the business world”, that caught the eye of another expert, who said:
The problem is, we are all “in the business world,” whether we like it or not—as workers, consumers, and taxpayers. Tax business, and you tax almost everything we consume and most of the services we depend on.
Those services will be hardest hit as a result of this. We have spoken about this many times. The impact of this type of continued spending is that taxes go up and services get cut. It is that simple, especially entering into a period in which we have higher interest rates. Even the—
781 words
- Hear!
- Rabble!
- add
- star_border
- share
- Apr/25/22 3:44:07 p.m.
- Watch
Then, Madam Speaker, I would retract the words “just” and “inflation”. I thank you for that.
We cannot spend our way out of this historic inflation. This budget before the House is a classic Liberal tax-and-spend budget. Canadians know that they are the ones on the hook for this $50 billion of brand new Liberal spending in this budget. This is not what Canadians signed up for when they voted Liberal this past summer. Canadian citizens did not vote for an NDP-Liberal government. They voted for a Liberal government, sadly, but now they are getting an NDP-Liberal budget. No one voted Liberal-NDP on the ballot box, yet this is exactly what Canadians have at this moment. It is shameful.
In Miramichi—Grand Lake, we rely on something to get things done: trucks. We rely on trucks to get things done. I live on a street with about 17 houses. There are at least four truck drivers and one transport company right on my residential street in Blackville, on Digby Street. That is why my office has been inundated with constituents concerned about the net-zero advisory body's annex of the Liberals' 2030 emissions reduction plan, where on page 192, it chooses trucks, vans and SUVs as public enemy number one. This NDP-Liberal government is doubling down on the people who drive trucks, vans and SUVs.
An hon. member: Oh, oh!
Mr. Jake Stewart: The member across knows that, and he should be ashamed because he has constituents who drive trucks and SUVs and vans. My constituents cannot afford inflation, paired with a tax on trucks. What my constituents and I believe all Canadians want is for the Liberal government to get its hands out of Canadians' pockets, take them out of there and give people the break they deserve.
When I reviewed this budget with my staff, we were floored by the exorbitant amount of new spending that the Liberal-NDP government is planning on handing out. This is despite the fact that Canadians are experiencing a 31-year inflationary high. How bad does it have to get for the government and its multiple prime ministers, at this point, to address the reality that Canadians are facing every single day? I know the people of Miramichi—Grand Lake cannot afford another inflationary budget that adds to the crisis we are facing across this country. The fact that home prices have doubled since the Liberals formed government should be enough to call for a non-confidence vote, a vote that could never happen now that the NDP has been, what do we call it, bought off by the Liberal Party of Canada.
After seven years of Liberal policies, Canadians are facing record-high inflation and a skyrocketing cost of living, leading to higher grocery and gas prices and a growing housing affordability crisis. More than half of Canadians are $200 or less away from not being able to pay their bills or rent, with three in 10 already falling behind at the end of the month. It is heartbreaking to hear the stories of families, in Miramichi—Grand Lake and across the country, being forced to go from shopping at the grocery store to now visiting the food bank. These are hard-working Canadian parents, struggling to feed their families.
Now is not the time to add an emission tax on to farmers, yet that is exactly what the government is doing. What is this fixation on farmers, construction workers, oil and gas workers, and people who drive trucks, vans and SUVs? This is the type of government that is literally zeroing in on certain groups of Canadians and making their lives twice as miserable as the inflationary times we are already faced with because of the government's decision-making to begin with.
These costs are being passed on to the consumer, driving higher costs in the grocery store aisles, and Canadians are feeling it. People in Miramichi—Grand Lake are feeling it.
History is repeating itself. As we saw in the late 1970s and early eighties, Canada's government is spending outside of its means, and Canadians are paying for it at the gas pumps, grocery stores and every time we buy anything. Inflation is currently 6.7% nationwide, but in my home province of New Brunswick, inflation is 7.4%, with no sign of slowing down. Moncton, New Brunswick, has the highest MLS listing hike in home prices year over year, at almost 60%. At what point will the government start working with the different levels of government to get a proper solution, instead of trying to spend its way out of the crisis? That just does not work.
The Liberal-NDP spending solution is one of the major reasons we are in this mess in the first place. This budget is adding $3,500 per household in national debt. How is passing the buck on to taxpayers having their backs? I would like the explanation for that.
When looking at the budget and seeing how the government is planning on approaching the housing crisis, all I saw was a macroplan that will take many years to see any results. Many of those results will not be positive, if there are any, and there is no plan for immediate action. This will only add fuel to the inflationary fire, with no immediate help for Canadians trying to buy their first home.
There are constituents calling me asking how a new registered savings plan would help them get into their first home when they are scraping by to pay their current bills. The Liberal-NDP government currently does not have Miramichi—Grand Lake's back. It does have its hands directly in both of our pockets, and probably the front pockets too. It is a government focusing on the perfect headline. What it really needs to be doing is focusing on a solution that will work. The government needs to get off its high horse, roll up its sleeves and get to work.
I am thankful for the opportunity to speak. This is a bad budget for Canadians. The Conservatives have a better plan, as always, and I am happy to speak against this budget. The Liberals do not have Canadians' backs.
1059 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- Apr/25/22 3:58:30 p.m.
- Watch
Madam Speaker, it is a pleasure to rise, as it always is, in this chamber to talk with my colleagues. We are talking about the budget today, so it is helpful to first ask the question and set where we are: Does the budget meet the expectations that Canadians had?
Gas prices have almost never been higher. Our food prices are going up and up. Retail prices are continuing to increase. Construction material prices and housing prices are going up too, and that includes rent, so both home ownership and rental accommodations are becoming incredibly more difficult to obtain for Canadians.
On the day after the budget, Canadians woke up. There was no immediate relief, no tax holidays and no tax rebates. In fact, on April 1, the government increased the carbon tax, which we know causes inflation. The Bank of Canada has been so kind to tell us that it has provided at least 0.5 of a percentage point to the inflationary measure that StatsCan puts out every year. The real question is, why is the government not doing everything in its power to reduce inflation?
I will give it to the government that all the inflationary pressures are not domestic. We have supply chain issues. We now have a war in Ukraine. However, the government has an easy lever to pull with respect to the inflationary pressures that it creates. It is the spending and carbon tax.
Let us talk about spending. Let us go through a few numbers and facts that are irrefutable. These are from the government's own documents. In 2015, the government spent about $300 billion. In 2019, the government spent $426 billion. In 2022, it is projected to spend about $452 billion. That is a 25% annual growth rate for this year compared with 2019. It is 53% growth in annual spending from 2015 to today. All the economists have been telling the government to take its foot off the pedal of spending because it is increasing inflationary pressure, so any assertion that this budget is prudent is comical.
Furthermore, we are led to believe that, while the government has been increasing spending by 7% to 8% every year since 2015, now all of a sudden, from this year going forward, it will hold the rate of spending growth to 2% to 3%. The only problem is that nobody believes the government. Absolutely no one thinks that it is possible for the current government to hold spending growth to 2% to 3%. In fact, in this budget, we do not even have projections for spending on the promise of pharmacare. We do not have projections for the spending on new health care transfers. We are just coming out of a pandemic and the government is saying that it is not going to increase health care transfers.
However, we have a fiscal anchor, we are told. The debt-to-GDP ratio is going to continue going down. The only reason the debt-to-GDP ratio is going to go down is inflation. The entire government's fiscal plan is based on inflation. It is the only way it is going to work. In fact, in just one year, from last year to this year, the government is projecting $170 billion in new revenue that it did not project last year. That money is coming from Canadians in the form of higher prices. That is money people are having to pay. Their dollar is not going far enough. It is a silent tax and it hurts the most vulnerable in our society.
In fact, in the tightest labour market in a generation, the government has spent money on hiring 10,000 civil servants a year every year since 2015. What do we have? In the tightest labour market, the government still wants to spend money and hire new civil servants. Where are these people going to come from? All of our small business owners across the country are crying for more people, so the government's decision is to hire some more people. Those are individuals who now cannot work in the private sector, cannot help a business grow and cannot help a business get back on its feet.
They pay taxes and salaries. That is going to lead to private sector growth, but let us talk about some specific measures. I am a balanced person. There are some good things in the budget, no doubt.
Employee trusts set up an opportunity for individuals to pass their business on to employees, and I think that is a welcome measure. What the government proposes to do with the ready, willing and able initiative, which is a policy, by the way, that was started under former finance minister Jim Flaherty, is to give organizations some additional funds to encourage those people with intellectual disabilities to enter the workforce. It should be applauded.
The Great Lakes fishery investments are well needed, and there is some money for freshwater cleanup. On the freshwater cleanup, it was nice to see Lake Simcoe referenced. However, it is a much smaller number than what had been previously promised.
Everyone talks about how Conservatives just like to talk about all the spending and not about what they are going to cut. Here we go. Here are some ideas for the government to consider.
On the infrastructure investment bank, breaking up is really hard to do, it seems. Instead of walking away from something that is not working very well, the government expands the mandate and gives it more money. Not only that, but it is taking the same failed model and saying it is going to create a new $15-billion innovation fund. Again, superclusters are reintroduced, with some expanded money. It would be unparliamentary to say the word I am thinking of right now.
The government is planning on spending money on a buyback program for guns, instead of taking that money and putting it into reducing crime. We need to do much more of a comprehensive spending review. It is nice to see that there was one mentioned, but it is not nearly going to be enough.
Let us talk about young people for a minute. The new, shiny, tax-free home savings account sounds amazing, except when one finds out that it is going to take a full year before it comes into effect, and then it is going to take another five years for an individual to max out on the contributions. Also, the home tax-free savings account cannot be used with the homebuyers plan, so people must make a choice. It is one or the other. Really, one program is going to be gutted and replaced with another, for a shiny new object. It is mostly a marketing ploy, in my opinion.
Instead, what the government could have done was to tell individuals who use the homebuyers plan that they do not have to pay the $35,000 back. That would have been a far more effective way to accomplish what it is trying to accomplish and have an immediate effect.
We asked young people to stay at home for two years. We asked this of all Canadians, but young people in particular put their lives on pause for two years for a virus that represented very little risk to them. Yes, Canada had a very low death rate, and I think that is a positive outcome of the pandemic and some of the responses. However, young people have now come forward and are re-emerging back into the economy. What have they found? The thanks they have found is that they now have a national debt that has doubled and that they are now responsible for, and a housing market that is completely unattainable. The Bank of Montreal released a report and singled out Orillia, which is in my riding, for having a 300% increase in house prices in six years. It is incredible to think of how young people are looking at this housing market and believing it is attainable.
I have talked about the bank tax before in this chamber. If the government thinks there are excess profits in that industry, we should really be revamping competition law. My prediction right now is that we will see an increasing number of bank branch closures across this country, particularly in rural Canada. It is no surprise that just last week, after the budget, banks made closure announcements in small communities across this country, including one in Brechin, which is in my riding, along with others in Pefferlaw, Cannington and Stayner.
I will close on another matter that is very close to my riding: the boat tax. There are 25 marinas and 15 boat dealers in my region. The government thinks that if a person can afford a boat, they deserve to be taxed. With the price of cottages and housing, these individuals are looking for other options for recreation, and boating is one of them.
However, this tax is only going to push jobs and investment elsewhere. These individuals are going to buy their boats south of the border and bring them here. That is going to hurt the people in my community, and that is going to bring in far less revenue than the government believes.
1553 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- Apr/25/22 5:00:28 p.m.
- Watch
Madam Speaker, I would first like to thank my colleague for sharing her time with me.
This year, I was fortunate enough to be one of the privileged members of Parliament who participated in an in camera review of the budget before other members and prior to the minister's speech. It was an opportunity for us to understand it and analyze it.
When I walked out of the room, a little earlier than expected, the first thing that came to my mind was that this was a missed opportunity. It is a missed opportunity to address real problems and, in the process, to create a sustainable economic recovery. Let me briefly go over the context in which this budget was tabled.
First of all, there is a labour shortage, a supply chain shortage, and a customer shortage, since people no longer want to return to performing arts venues, movie theatres and so on. The hospitality and tourism sector is still suffering, and I would remind members that the measures to help it will end next week.
Second, we have an inflationary context. Just this morning, the Governor of the Bank of Canada revised current and projected interest rates upward. Third, we are in a climate crisis.
Given these three overarching factors, the Bloc Québécois made five demands: higher health transfers, which my colleague talked about; a better standard of living for seniors; measures to fight inflation, including short-term protection measures; measures to encourage sustainable finance; and, lastly, indigenous housing. Of these five measures, only indigenous housing is in the budget. We are happy about that.
Unfortunately, none of the other four proposed measures wound up in the budget. My colleague did a great job describing the government's approach to the Canada health transfers and seniors' standard of living.
As for the fight against inflation, unfortunately, the budget contains very few measures to help people get through what is likely to be a longer period than expected, as the governor said this morning. In 2022, we are going to see high inflation.
Given the need for economic recovery and a green transition, I have to say again that this budget is a missed opportunity.
First of all, the budget proposes numerous measures for housing, especially for affordable housing. A few days ago, the Gatineau newspaper Le Droit reported that affordable housing means a one-bedroom apartment costing $1,950 a month. I wonder who here would agree that this is really what is needed. Imagine a single mother of three who does not want to transfer her children to another school and who is offered affordable housing at $1,950 for a one-bedroom unit. I think most of us would agree that this is not necessarily what will most help those suffering from inflation.
Second, the budget proposes dental coverage. Clearly, this encroaches on an area of provincial jurisdiction. As we keep saying over and over again, we do not want measures that encroach on provincial jurisdictions. It is also important to remember that the proposed coverage is meant to help children aged 12 and under, but Quebec already has a program that covers children aged 10 and under. We therefore thank the federal government for wanting to help 11- and 12-year-olds, but that is not exactly what we were asking for.
Finally, on the environment, the budget proposes some good measures, such as electric vehicles. At the same time, however, it is completely undoing its own environmental efforts, particularly by increasing funding for an extremely expensive technology that is not even proven: carbon capture and storage. If this technology were reflected in gas prices, the consumer price index I mentioned earlier would be even higher.
This response to the climate crisis is disappointing, especially since only a few days earlier, the government had approved the Bay du Nord project, which will involve the extraction of almost one billion barrels of oil over the next few years.
We expected a bit more ambition and vision in this budget. As far as the five Bloc measures are concerned, sustainable finance was not addressed either. There are very few measures in the budget.
Once again, we saw very little with regard to fighting inflation. There are several measures that could have been proposed to fight inflation, such as social housing instead of affordable housing, as I was saying, as well as measures to fight monopolies and cartels. We know that that helps boost consumer purchasing power.
The government could have brought in tangible measures to deal with the semiconductor shortage that has been mentioned and that is causing a major problem for the supply chain. As I was saying, there is a shortage of products in the supply chain.
The budget contains a lot of proposals about creating working groups and task forces, but it is weak on tangible action. The proposals in the budget are sorely lacking in vision in areas that are very important.
The proposed measures intrude considerably on provincial jurisdictions. In a nutshell, the federal government is putting money into areas where Quebec has already made investments. It is rather rich that the new areas in which the federal government is innovating with this budget, such as electric vehicles, dental insurance, or even the day care system that copies the Quebec model, are all already covered in Quebec. It is unbelievable that the budget proposes to interfere in provincial measures that already exist in Quebec. What this means is that Quebec is already doing quite well.
I have a question for the Quebeckers watching me today: Why are we still part of a country that is undermining us?
950 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- menumenu
- notificationsnotifications
- home
- mailmail
- searchsearch
