44th Parl. 1st Sess.
April 26, 2022 10:00AM
- Apr/26/22 11:52:41 a.m.
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Madam Speaker, budgets are important. They are the core of a parliament. It is a real honour to be able to rise here today and speak to budget 2022. For many of us, this is the first substantive piece of legislation that we as new parliamentarians are tasked with scrutinizing. The importance of this job that Canadians have trusted us to undertake cannot be understated.
Every single day, many people from Hastings—Lennox and Addington are calling and emailing my office with grave concerns about how they can make ends meet. Just last week, our office received hundreds of feedback forms indicating that the cost of living and affordability was their number one concern. The cost of groceries, gas, home heating and everything has increased. It is my obligation and my role as their member of Parliament to bring them a voice in this House.
On general spending measures, the Liberal government suggests that the announcements in the budget will help weather inflation and make housing more affordable. In my opinion, the continuation of this Liberal approach is destined to drive us right back into a crisis of an order of magnitude larger than that of the early 1980s, based on constantly adding new permanent spending programs on borrowed money.
As noted in an article I read recently, only a small portion of our national debt is refinanced each year, so we will not get stung all at once. However, year by year, servicing costs will rise and the ability to afford our essential programs will dwindle, unless taxes rise substantially to cover the rising costs of both debt serving and increased program costs.
The core function of our Parliament has been, and remains, to oversee the expenditure of public monies.
Parliamentarians, and parliaments themselves, fought long and hard to pry this authority from the hands of imperial executives and governors, decades ago. Their actions lend themselves to our uniquely Canadian brand of responsible government.
In his important work, The Public Purse, which is used as source material in our most recent practice and procedure manual, Norman Ward describes the struggle of our nascent pre-Confederation legislatures, as it related to oversight, thus:
In principle, therefore, the first goal usually sought by an assembly was to make the executive at least partially dependent on the assembly for its income; the second was to make it wholly so; the third, and most sophisticated, was to insist on some sort of detailed public accounting, on a systematic basis, of expenditures after they were made.
In 1838, Lord Durham was sent by the mother of parliaments to investigate the cause of the previous year's rebellions in Upper and Lower Canada. One of the litany of causes was, as he describes, related to the relationships between the assemblies and the executives.
In his hugely influential report, Lord Durham wrote:
The Assembly, after it had obtained entire control over the public revenues, still found itself deprived of all voice in the choice or even designation of the persons in whose administration of affairs it could feel confidence.
He went on to state:
It is difficult to conceive what could have been their theory or government who imagined, that in any colony of England a body invested with the name and character of a representative assembly could be deprived of any of those powers which, in the opinion of Englishmen, are inherent in a popular legislature.
This speaks to two principles of parliamentary control of finances: first, that the executive should have no income that is not granted to it or otherwise sanctioned by Parliament; and second, that the executive should make no expenditures except those approved by Parliament, in ways approved by Parliament.
I am not suggesting that this legislature does not possess the capacity to scrutinize. I know it does, but I believe in recent years we have not been wielding that authority properly and effectively, especially as it relates to Mr. Ward’s third point regarding what ultimately became our main estimates. As a result, Canadians are now paying the price.
We need only look at this very budget document for proof positive of what rushed legislation does, most particularly in the case of budgets. Hidden away in annex 3 of the budget, the fourth from last page reads as follows:
In Budget 2022, the government proposes to amend the Old Age Security Act to clarify that the one-time payment made in August 2021 to seniors age 75 and older will be exempted from the income test for the Guaranteed Income Supplement and Allowances. This amendment corrects a reference error resulting from the passage of the Budget Implementation Act, 2021, No. 1.
This begs the question: What was the error?
In sections 266 and 268 of the Budget Implementation Act, 2021, the section that had intended to make the one-time, $500 payment to struggling seniors aged 75 and up non-taxable, the Liberals quoted the wrong section of the act. Instead of quoting section 275, the section that actually created the payment, they cited section 276, which is completely unrelated to seniors and instead deals with the Public Service Employment Act. As a result, right now, under law, as desperate seniors are filing their taxes, that $500 is considered income, and not just at tax time but come the July recalculation period for benefits. In other words, the government has created and legislated yet another potential benefit clawback.
It is only prudent to highlight that last time, the budget was time allocated, meaning that the government, with the NDP's support, limited the amount of debate that we could have on the budget. That was debate where we might have found this error and saved seniors the stress of another possible clawback.
I would note that it was the same group of seniors, those aged 75 plus, who had the wrong T4 information sent to them due to a misprint. How convenient that the same, exact group of people who were subject to an age-restricted benefit that everyone, including, I imagine, the CRA and the ESDC, thought was non-taxable, received misprinted T4s. Now we find out that the benefit is, under word of law, actually taxable. That is why my colleague for Miramichi—Grand Lake and I called on this government to extend the filing date for seniors.
With regard to seniors, they have very little to celebrate in this year's budget. Of a projected $56.6 billion in new spending through to 2027, a paltry $20 million has been earmarked for supporting our seniors. To put that into perspective, that is 0.04% of spending announced in the next five years. There is nothing to help struggling formal and informal caregivers, nothing to help long-term care facilities and nothing to help alleviate the increasing cost of living they all face. Low-income seniors need help today, and they cannot afford to wait.
To get back to my original point, our job here is to scrutinize. What we do here is the basis for responsible government. When we cannot do our jobs, Canadians suffer. On my file alone, we have seen it with the GIS clawback, we have seen it with the T4 delays, and now we are seeing it with the one-time payment, which are all things that could have been avoided if we actually took the time to do our job right. I will give credit to the hon. Minister of Seniors, who has acted on things when they were brought to her attention, but the point is that it should never have gotten to this point.
Lastly, I want to touch on the absolute absurdity that is our main estimates process in relation to the budgetary process and the need to align Treasury Board with Finance in the preparation of those documents. However, my time is running short, so I will leave members with one more recent quote from the 2019 report of the Standing Committee on Government Operations and Estimates, entitled, “Improving Transparency and Parliamentary Oversight of the Government’s Spending Plans”. The report quotes Scott Brison as saying, “The ability to exercise oversight over government spending is the most important role that...parliamentarians can play in representing Canadians.”
I urge everyone here to heed the words of our former Liberal president of the Treasury Board and let parliamentarians do our jobs thoroughly and effectively, because Canadians cannot afford for us to do otherwise.
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- Apr/26/22 1:43:56 p.m.
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Mr. Speaker, I would like to thank my colleague from the NDP for reminding us of the napkin budget brought in a few years ago. That was with the Liberals as well.
Unfortunately, the government treated this rationale as an opportunity to spend wildly and recklessly on policies that did nothing to support Canadians through the pandemic or that would help create sustainable economic growth in the future to help pay for their spending.
This budget continues this practice, with a deficit of $52.8 billion and no plan to reach a balanced budget. At the end of the 2014-15 fiscal year, the federal debt was just over $612 billion with a budgetary surplus of $1.9 billion.
Now, the federal debt is almost $1.2 trillion, and is anticipated to reach $1.3 trillion in the next couple of years. The cost to service our debt this year alone will be $26.9 billion. Inflation has reached a 31-year high, and we have just seen the largest rate hike in decades by the Bank of Canada: a full half a percentage point, bringing the overnight rate to 1% in order to deal with government spending-driven inflation. We know that the Bank of Canada will continue to aggressively raise interest rates, making this spending even less sustainable. In fact, one of the reasons why the Bank of Canada had to increase it so aggressively was because of this unsustainable spending, something the NDP-Liberals would realize if they were not all following the Prime Minister’s example and not thinking at all about monetary policy.
We are all aware of the devastating impact that inflation is having across Canada. Too many people who have been just getting by for the past couple of years, or even longer in some cases, now find themselves in a situation where they no longer can get by. Groceries, fuel and pretty much everything else we can think of is getting more expensive. Housing costs have skyrocketed, with the price of the average house doubling since the Prime Minister came into office and increasing 30% in the last year alone.
Young Canadians, who have seen their dream of home ownership evaporate under the government, were hoping for some sort of inspired measure in this budget: something that showed the NDP-Liberal coalition understood the issue and was actually trying to fix it. Instead of hope, the government doubled down on more of the same failed policies that have not helped young people get homes in the past six years. Nothing in the budget will help get homes built this year. In fact, the solution that the coalition government has put forward seems to be a plan to increase the size of the bureaucracy, not the supply of houses.
The budget almost acknowledges that the government is not even trying to help young people get into their own homes. Instead of a serious plan to cut red tape, cut costs and build homes, the government decided that a multi-generational home renovation tax credit was the way to go. Families are the cornerstone of our society, and supporting our loved ones as they age or when they are facing hard times is admirable. I am sure we would do it for our families, and most Canadians would want to do the same if they were able to do so. However, considering the housing crisis, this tax credit, which gives up to $7,500 for renovations to make a secondary suite, is not a nice social policy to help support strong families. It is an admission of failure by the NDP-Liberals.
It is an admission that they are going to give up on helping to get young people out of their parents’ basements and put them into their own homes. The government is telling young people that instead of trying to fix the mess it created and helping to get them into homes, it is going to help families fix up basement suites so that they feel like their own places.
Young Canadians want the pride of home ownership and the ability to build some equity, and they want to have the autonomy that comes with living on their own or with their partner or spouse. They do not want the government to help put a shower in the half-bath in mom and dad's basement and call it a day. Without a meaningful plan to increase supply, bring prices to a reasonable level and help new people enter the housing market, that is exactly how this tax credit is going to be interpreted by Canadians, and who could possibly blame them?
Another thing that was in this budget is the expected increase in the amount of equalization payments. Members will recall that in 2018, Bill “no more”, I mean Bill Morneau, quietly locked in the equalization formula until 2024 with virtually no consultation.
The Liberal government members of the day did not really care that Alberta and other western provinces were going through hard times; they just saw my whole province as a piggy bank that they were willing to shake every last dime out of while they could. After all these years of Liberals taking from that piggy bank without putting anything back in, there is not much left to give, but that will not stop the NDP-Liberal coalition from trying, and if that means smashing the bank open, they are going to be quite all right with that.
The feeling that the government does not understand Alberta or that it is actively trying to dismantle its economy and way of life is not new. Some held out hope that, with the finance minister being at least born in Alberta and the associate finance minister representing an Edmonton riding, there could have been some sort of consideration given to our province, but that certainly was not the case with this budget.
The attack on the energy sector continues, with the NDP-Liberal government doubling down on the plan to phase out the oil and gas sector. With this budget, the government will no longer allow the use of flow-through shares for the oil and gas industries, so smaller firms that rely on this important tool will find it that much harder. The government has asked them to reduce their emissions and navigate an ever more complicated regulatory system, and at the same time the Liberal-NDP government is working to ensure that oil and gas companies do not have the resources that they will need to accomplish either of those goals.
The budget did include, however, a tax credit for carbon capture and storage, but unfortunately it is deeply flawed. The budget suggests that there is a credit for carbon capture, utilization and storage, which means that the recovered oil can also be utilized, but in the case of the energy sector in my province, that is simply not true. The tax credit specifically rules out enhanced oil recovery, where the carbon that is being sequestered can be pumped back into the well to be permanently sequestered and in the process help extract oil that is at the bottom, which otherwise can no longer be accessed. This technology creates the lowest-emission oil possible and allows for wells to be fully utilized, resulting in jobs and royalties, and the CO2 is still sequestered.
Enhanced oil recovery sequestration is already taking place. There is already a process, a regulatory regime, and there are businesses operating in this space. In my riding, enhanced energy has used this method to sequester CO2 and recover the cleanest oil in North America. A year ago, they announced that they had reached the monumental milestone of sequestering one million tonnes of CO2, an equivalent of taking 350,000 cars off the road.
If anyone is puzzled by the fact that the government is against this technology, so is absolutely everybody in Alberta. If the NDP and the Liberals want to see emissions reduced, they need to put their ideology aside, support the oil and gas sector and support CCUS.
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