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Decentralized Democracy

House Hansard - 90

44th Parl. 1st Sess.
June 16, 2022 10:00AM
  • Jun/16/22 3:59:42 p.m.
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  • Re: Bill C-9 
Mr. Speaker, I agree with the member who just spoke. It is very rare there is a bill that comes to the House for which everybody largely has consensus. We want to see the work get done, so hopefully we can do that. It is unfortunate he feels there is a power struggle between his party and the Conservatives. I am just wondering if the member could talk about what might be more important to talk about. In my riding, I can think of people who are desperately looking for housing. The cost of housing is exploding in ways we could have never predicted just a few years. There are so many people who are experiencing life without a home because of the realities we are facing. Is that not something we should be talking about in the House, rather than what we are talking about right now?
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  • Jun/16/22 4:00:27 p.m.
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  • Re: Bill C-9 
Mr. Speaker, we could be talking about housing, pharmacare and climate change. The list could go on and on. I am not suggesting for a second this is not very important. What I am suggesting is we already know the will of the House with respect to this. It is very clear, if one has been sitting here since 10 a.m., as I have, what the will of the House is on this. I am just suggesting that it is time for the House to move on to talk about housing. I would like to talk more about housing. The irony is that, while the member was asking that question, a heckle came from across the way telling me to thank her for her hard work, as if somehow the member for North Island—Powell River and I both believing that housing is an important issue means we are somehow in collusion. That is how the Conservatives interpret it. Yes, I am willing to collude with this member as it relates to working on housing issues and making housing more affordable for Canadians.
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  • Jun/16/22 7:23:35 p.m.
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Madam Chair, the economic situation is out of control. People are worried about inflation, and rightly so. For instance, gas is at $2.24 a litre today in my riding, Joliette. This is devastating. The hardest hit are obviously low-income families whose obligations force them to drive a lot. The current reality is also really tough for businesses in certain sectors such as transportation, of course, as well as agriculture. Rising prices will help the energy transition in the long term, but will increase misery in the short term. The cost of housing is no more encouraging. Finding available affordable housing has become mission impossible. The price of houses and condos has exploded. However, according to experts, rising food prices could soon overtake energy and housing prices by a wide margin. The world is at risk of a food shortage this year, which will lead to skyrocketing prices and a serious global famine. The current situation is in large part a result of the war in Ukraine. Russia and Ukraine are the world's breadbasket. These two countries account for 30% of global wheat exports and 20% of global corn exports. They also export 65% of the world's sunflower oil. Russia has significantly cut back on its exports so that it can continue to feed its citizens at the same cost. As for Ukraine, its existing reserves are difficult to export, and there is a great deal of uncertainty about potential future harvests. Food prices in Ukraine are skyrocketing, and Ukrainians could be facing a famine. For example, according to the United Nations Food and Agriculture Organization, or FAO, around half of the wheat reserves and nearly 40% of the rye in Ukraine are in war-affected areas. The damage caused by the war will reduce grain reserves and limit production and cultivated acreage for years to come. The damage to infrastructure makes it difficult to get humanitarian aid to Ukraine and to transport the resources that can still be saved. According to the World Bank, global agricultural commodity prices rose 41% between January and May and are still rising. During the same period, the price of corn jumped 54%, and the price of wheat jumped 60%. With its current budgets, the UN World Food Programme cannot feed as many people. Also according to the FAO, war and climate change are the main causes of global food insecurity, in Ukraine and elsewhere. It predicts that 44 countries will require food aid in 2022, particularly in West and East Africa due to conflicts in those regions, food commodity prices, and crop failures. Faced with the expected risk of food shortages, several countries have begun halting exports in order to strategically prioritize their own people. For instance, India stopped exporting its wheat, and then Indonesia halted palm oil exports. This food protectionism could trigger a domino effect with even more tragic consequences. Here, as elsewhere, production costs will soar, because the price of inputs has also exploded. For example, fertilizers come mostly from Russia and Belarus. Their prices had increased even before the war. Now they have doubled or tripled. What is more, this government is still imposing a 35% tax on them, even though they were ordered and paid for before the invasion of Ukraine. The rising cost of diesel fuel must also be taken into account. When economist Sylvain Charlebois appeared before the House of Commons Standing Committee on Finance last month, the agri-food market expert said that supply chain issues are making it difficult for farmers to plan. Their inputs are not consistently available. He also reminded the committee that last summer, western Canada, the United States and Russia experienced major droughts, while Germany experienced major flooding. The result of all this was that the 2021 crops were so poor that reserves are currently low. They were counting on 2022 to replenish their reserves, but with the war, that will not be possible. The economist also added that it was not possible to increase cropland acreage in the short term. However, he did say that the spring flooding in Manitoba is not expected to have much of an impact on the harvest, as it delayed seeding by only a few weeks. All that adds up to significantly higher food prices in the coming months, much higher than what we are seeing now. For example, Germany is expecting grocery prices to increase by an average of 50%. Food will be 50% more expensive. It should be less than that in Quebec and Canada. That is how it is likely to play out in rich countries. People in poor countries will likely face famine, which is why international institutions are calling for greater solidarity, especially seeing as less wealthy countries were encouraged to go into debt to get through the pandemic more easily. As a result, they are now deep in debt and will not likely have the means to import enough food at high prices. Add to that the fact that many of them are already subsidizing basic foods to make sure their citizens can feed themselves. These countries will have to import food at high prices even as they spend more of their budget on food subsidies. African countries are particularly vulnerable. A significant portion of crops are now traded on the stock exchange. For example, a future crop can be sold in advance and traded several times on the stock exchange. This practice can drive up the price of commodities for speculative purposes. It is a bit like oil. People take advantage of the context to drive prices up and line their pockets. This situation is a reminder of the limits of using markets. The situation is such that food will be a major problem this year and for years to come. According to a partner with the firm McKinsey, even with an optimistic view of the crisis, things are unlikely to return to normal before 2024. The food crisis will require an exemplary demonstration of international solidarity. It also reminds us that war always has a greater impact than anticipated. Let us hope that a peaceful resolution will be negotiated to end this war, primarily for the sake of the Ukrainian people, but also to limit the effects of a food crisis that has already begun. We have an obligation to show solidarity to combat hunger on a global scale. We also need to do more to support our farmers. Finally, we must do more to ensure global peace and do our part to limit climate change. I hope this government is taking notes right now.
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