44th Parl. 1st Sess.
September 26, 2022 11:00AM
Madam Speaker, I would like to inform you that I will be splitting my time with the member for Rivière-des-Mille-Îles.
For my first speech after the summer break, I would have liked to talk about something a bit more divisive, but, unfortunately, Bill C-30 is fairly uncontroversial. It goes without saying that the Bloc Québécois will vote in favour, since it is a suggestion that was set out in all of our budget expectations. I hope that by saying this, I can avoid getting questions from the member for Winnipeg North in 10 minutes' time, since, at the end of the day, most of us agree on it.
The one small criticism I have for the Liberal Party is that the government was slow to act. As members will recall, the Deputy Prime Minister stood in front of the Empire Club in Toronto and simply repeated measures that were in the budget. The government could have taken inflation seriously long before now and taken quicker action. That was a little digression for the member for Winnipeg North. Now he will perhaps have something to say later.
I would like to quickly come back to inflation. In July, prices for goods and services in Canada rose by 7.6%. August brought a slight decrease, with inflation down to 7%. I am bringing this up again because I want to point out that this dip in inflation was primarily the result of a sharp drop in gasoline prices. That is why inflation slowed down.
Some of you may have seen, as I did, short videos of the Conservative leader constantly talking about people who are trying to buy groceries and their experiences. I understand where they are coming from, and I agree with the Conservative leader. Consumer prices have skyrocketed. Prices at bakeries have risen 15% in the last month. That is a substantial increase. It is the same for fresh fruit, with prices having risen by 13.2% compared to a year ago.
This is a developing phenomenon and we need to analyze it. Inflation is a complex economic situation. It will soon be clear where I am going with this. I have found a divisive element in something that is usually undisputed.
It is a complex economic situation. I think we need to be careful how we respond to inflation. We have to be careful because the type of inflation we are seeing right now is not necessarily one we have seen before. In the past, it was a demand-side issue. What we are seeing now is an issue on the supply side as pressures from labour costs and energy costs are creating a supply crisis that is causing this inflation.
Members will agree that there is no easy solution, especially when we take into consideration other causes that are completely out of our control, such as the war in Ukraine and global energy problems. It goes without saying that there is no easy solution. Why do I say that?
I am not an economist and I do not know much about the mechanics of macroeconomics and microeconomics, but I am very familiar with political dynamics. As such, I can talk about what we should not do to fight inflation. In my opinion, what we should not do to fight inflation is use the inflationary tensions we are currently seeing to advance a political agenda; to me that comes back to playing partisan politics on the backs of the most vulnerable. I do not believe that populist speeches that use the catchphrase “have more in their pockets” are appropriate for fighting inflation. Such speeches might unite the discontented, but they do little to offer solutions to those on the losing side of our economic system.
All this kind of populism does is distort things by offering piecemeal solutions, such as reducing the gas tax. In my opinion, over the past few months, we have been seeing a Conservative brand of populism stand up for the most vulnerable members of our society. I am not trying to pick a fight, but the Conservative Party does not exactly have a history of standing up for people disadvantaged by the economic system. Let me explain why I interpret the new Conservative leader's messaging as a kind of populism.
Here is a brief definition of populism.
The first thing to understand about populism is that many describe it as a divisive political strategy used to frame issues in black and white and pit people against one another. I have been listening to my Conservative colleagues for a while, and that seems to be their approach. How do they drive people apart? My Conservative colleagues say the only way to rein in inflation is to get rid of the carbon tax. That is an overly simplistic solution. I can see that others agree.
The second thing to understand about populism is that some individuals have been giving speeches and displaying behaviour employing a certain rhetoric that combines utopianism and demagoguery, pandering to the people and pitting them against the ruling elite. I am thinking of the member for Carleton's rhetoric and a few clips I saw online in which he talks about a mother having to water down milk because she can no longer afford to feed her family. The member for Carleton said that the central bank is to blame for this situation. The Conservatives want someone to blame for inflation, so they have chosen the head of the central bank and the Prime Minister. The Prime Minister may have caused some harm, but the Conservatives are making the complex economic problem of inflation into a wedge issue.
The third thing to understand about populism is that it condemns institutions that, in the populist view, do not pay enough attention to people's aspirations. It portrays political opponents as elites with little regard for the ideas of the people and popular common sense. We also heard this sort of rhetoric from the leader of the official opposition when he talked about the Prime Minister being out of touch and about the head of the central bank.
I personally do not believe that this Conservative populism offers any proposals or solutions to fight inflation. Rather, I believe that it allows the Conservative Party to rally malcontents, those people on the losing end of our current economic system, to their banner without offering them any solutions. I will explain why I believe that the Conservative Party is not offering solutions.
What does the Conservatives' traditional economic rhetoric sound like? I have always seen it as being similar to the Washington consensus, which emerged from the liberal ideology espoused by the Chicago school of economics. What is this rhetoric? I have been here since 2019 and have frequently seen the member for Carleton champion the laissez-faire approach. He has done so on many occasions. What is the Chicago school's Washington consensus all about? It advocates the systematic liberalization of markets and interest rates. That is strangely similar to the proposals frequently put forward by the Conservative member for the full privatization of businesses and the deregulation of markets. It sounds a lot like the Conservatives' rhetoric. In particular, there is an emphasis on heavy budget cuts, especially by reducing public spending. We heard this often, even during the pandemic.
That is the Conservative Party's rhetoric. Does it structure government action in such a way as to help the most disadvantaged? I seriously doubt it.
Two very interesting books by Joseph Stiglitz tell us the complete opposite. By implementing such measures, in line with free-market liberalism—
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- Sep/26/22 5:20:19 p.m.
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I am sorry to interrupt the member. I was listening closely to his speech but I see that his time has expired.
We will now go to questions and comments.
The hon. member for Kings—Hants.
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Madam Speaker, normally I try to engage in French, but I want to make sure my point is very clear.
I was interested in the member's conversation around supply-side economics. Of course the inflationary period we are seeing right now is somewhat unique. The Bank of Canada is increasing its benchmark borrowing rate to try to bring down demand.
Does he have certain concerns on the monetary policy side such that if this is a supply-side economic issue that is driving inflation, and notwithstanding the Bank of Canada is trying to do its job to bring down demand, it may prove difficult to actually quell inflation because this is a supply-side economic issue?
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Madam Speaker, I will try to respond to my colleague while I finish my speech, talk about what needs to be done and suggest some solutions.
I never thought I would have to say this, but I think that we need to protect the independence of the central bank. I never thought a politician would have to say this, but in light of the attacks by the member for Carleton, I have to say that we must indeed protect the independence of the central bank.
There is one thing I think is fundamental, however. We must reduce our dependence on oil, and the government should therefore probably stop giving such astronomical subsidies to this industry. My colleagues and I know that the oil and gas sector is an bottomless pit for public funds. In Canada alone, through Export Development Canada, or EDC, we are talking about an average of $14 billion a year.
If that money were reallocated in a better system with stronger social policies, we would have a much easier time tackling inflation.
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Madam Speaker, with reference to my hon. colleague across the way who was questioning as to whether this inflation was being driven more by supply-side economics, I wonder if the member could comment as to whether it is the supply side from economic goods or the supply of cash, in his opinion, that is driving this inflation.
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Madam Speaker, I am not an economist. However, what I am hearing from economic experts is that we are in a supply crisis, not a demand crisis. Very high fuel prices and labour shortages are what got us into this supply crisis, which is driving inflation.
How can we address labour shortages?
The Bloc Québécois has made a number of proposals. Allowing seniors to return to work and providing incentives to do so is one way to address labour shortages and reduce the effects of population aging. Transferring certain powers to Quebec could help as well. Immigration is a total mess. Every riding is having issues with temporary foreign workers. We could alleviate labour shortages by making it easier for foreign workers to get here. We can take some of that off Ottawa's plate.
I think there are helpful measures that could be put in place. They would be more useful than simply saying that the head of the central bank should be fired.
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Uqaqtittiji, the cost of living does not seem to be factored for my constituents in Nunavut in this bill. I wonder if the member could respond to the passing of this bill being absolutely necessary, especially with increases factored for remote and isolated communities. This is actually very necessary to make improvements for those more vulnerable communities.
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Madam Speaker, I completely agree with my colleague. The government could do more. I would reiterate the solutions I mentioned earlier. If we stop dumping money down the bottomless fossil fuel well, maybe we will have more money to support our communities.
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Madam Speaker, we are here today to debate Bill C‑30, an act to amend the Income Tax Act regarding the temporary enhancement to the goods and services tax, or GST, credit.
Bill C‑30 is sponsored by the member for University—Rosedale, our Deputy Prime Minister and Minister of Finance. This bill, which is at second reading in the House, would create a new refundable tax credit of $229 for a single person and $459 for a couple, with an extra $114 per dependent child. To be eligible for the full amount, however, people's income must be less than $39,826 in 2021.
If Bill C‑30 goes through quickly, eligible Quebeckers and Canadians may receive that tax credit in October. If not, it will not be available until November or December, which is very late. This measure, which will cost an estimated $2.5 billion, should help 11 million people. It is one tactic in the fight against inflation and the declining purchasing power of families in Quebec and Canada.
We in the Bloc Québécois have no problem supporting Bill C-30, but we wonder if the $39,826 threshold to receive the full benefits is not a bit low. Even with a slightly higher salary, home ownership is not possible in Quebec or anywhere else in Canada.
In the Laurentians, where my riding is located, the average rent for a three-bedroom apartment was $1,834 last spring. That is more than the cost of rent for the same type of apartment on the island of Montreal, and that is the number from six months ago.
Given that the cost of housing has risen twice as fast as the consumer price index, that number has already increased by $250 in only six months. When you do the math, it gets truly frightening. The bottom line is that an income threshold of $39,826 could almost be qualified as stingy.
There is more, however. The rebate decreases by 15 cents for every dollar earned above this threshold. This means that someone who earns $41,357 will not get a penny, even if the difference between the two amounts is quite small. I do understand, however, that 11 million people will benefit. We can assume that a lot of people will fall through the cracks, and that is what concerns me.
The Bloc Québécois will support Bill C‑30, but doubling the GST credit for six months will not magically allow Quebec seniors to get their heads above water.
Even before the surge of inflation, Canada was one of the industrialized countries where retirement income was the lowest compared to employment income for the same person. That number is 50.7% in Canada, compared to 57.6% in the OECD and 63% in Europe. Once we retire, we get half of what we earned when we were working. That is not a lot. It means that our seniors get poorer faster than those in other countries when they leave the workforce. Seniors need more than that to live in dignity. They need more than the $40 a month for six months that the government is currently offering them.
We in the Bloc Québécois have said it before, and we will say it again: We need keystone measures that are well thought out and properly targeted.
The first order of business would be to stop cutting the guaranteed income supplement payments of low-income seniors who received the Canada emergency response benefit or the Canada recovery benefit last year.
The second order of business would be to increase old age security by $110 a month, as soon as people reach 65 years of age. This is a measure the Bloc Québécois has been defending tooth and nail for the last two years.
Again, the Bloc Québécois will support Bill C‑30, but I remind members that our party already asked for this measure six months ago in its budget expectations. It is nothing new and it did not just pop out of the heads of the Liberals. We helped inspire it. Six months is a long time when you do not know how you will make it to the end of the month or even the end of the week. Six months is a long time for the most vulnerable people and those who are in a financially precarious position. It is even worse if the refund is paid in December or October, as I said before.
Back home, singer-songwriter Dédé Fortin, who passed away unfortunately, summed it up best in his song The Answering Machine:Yesterday, I met a poor manHe lives on the street, doesn't own a thingHe told me something that I thought was really funnyLife is short, but it can be long at times
Let us think about that.
My colleagues opposite will say that inflation is dropping, that it was 8% in July and 7% in August. That is true, but the drop is due entirely to the price of gas, which fell 18.8% after reaching an all-time high in June. Everyone knows that Ottawa does not have a say in world oil prices, which are essentially set by the London and New York exchanges.
If we exclude gas, all other indices are rising, period. Baked goods have increased by 15.6%; fresh fruit, 13.2%; children's school supplies, 20%; housing, 15%; and the list goes on. These figures are from Statistics Canada, not me. In short, the Liberals can hardly be proud of and boast about this situation.
Increasing the GST credit is a good measure, but it is largely insufficient to make up for all the cost increases caused by the current surge in inflation. Right now, 41% of Quebeckers cannot make ends meet. I think it is urgent that the government step in in other areas to support them.
I would be remiss if I did not make the connection between the current relief measures and the situation of workers across the country. By country, I mean Quebec. Sadly, yesterday saw a return to the prepandemic EI system. Ottawa could have extended the measures it put in place during the pandemic. Ottawa could have delivered on its 2015 promise to reform EI. Ottawa did neither of those things. Now, six out of 10 workers are ineligible for benefits as of yesterday.
This is a government that gives with one hand and takes back with the other. How shameful. As Bloc Québécois members have said repeatedly, Ottawa has to deliver on its promise and completely overhaul the EI system. That would be, in my view, a truly meaningful measure, the kind we in the Bloc Québécois like to see. It would counter the negative impacts of the increased cost of living that is putting untenable pressure on Quebec workers. It would be far more effective than a $225 cheque. We in the Bloc Québécois hope that the government can understand that.
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Mr. Speaker, being a senior myself, I was very interested in the comments of the hon. member across the way on supporting seniors. However, I am an employed senior, whereas we have many, many more seniors in our communities who are living on fixed incomes.
The Conservatives are saying we should not be looking at increasing CPP deductions and giving more support for seniors in the future through that means. Could the hon. member comment on the need for support for seniors on things like long-term care and areas that are normally under provincial jurisdiction?
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Mr. Speaker, the member just opened a huge door for me.
Indeed, I do not support the measures proposed by the Conservative side, should they have any. However, I would remind the House that seniors deserve much more than they are getting right now.
The Bloc believes it is simple. We think seniors' pensions should be increased by $110 a month, not at 75, but at 65. That is one thing.
I touched on the second thing during my speech. Honestly, this is something I learned while doing some reading to prepare for this debate. It is the difference between the amount seniors receive while working and the amount they receive after retirement. I was astounded to learn that there is such a large gap in Canada and in Quebec. Seniors become much poorer when they retire. I think we should reflect on that.
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Mr. Speaker, I am going to pick up where my Liberal friend from Guelph left off in talking about seniors. The seniors in my riding have been telling me about how the rising cost of living is making it very difficult for them when they buy things like gas and groceries, as these are becoming more expensive. We know the carbon tax plays a roll in exacerbating those prices and driving up those costs even more.
Would my colleague agree with me that the government should look at scrapping the carbon tax or at least freezing the carbon tax increases in the new year to help seniors and those struggling to get by?
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Mr. Speaker, I understand that this issue is important to the Conservatives, but I am not at all convinced that it is the key. The carbon tax is seen differently in different parts of Canada.
The Bloc Québécois has found other solutions that would help seniors. That is the answer to the first part of my colleague's question. I am extremely grateful that a young fellow like him is so concerned about us older folks.
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Mr. Speaker, I am really glad to see that everybody in this House supports an NDP proposal to double the GST tax credit to help people who have been the hardest hit by inflation.
We have been hearing from Conservatives all day about getting rid of the carbon tax, yet they forget to talk about taxing the oil and gas companies, which are having record profits while prices at the pump are skyrocketing. In Great Britain, the Conservative government there went and charged a 25% excess profit tax and gave it back to people who live there.
Does my colleague not agree that the Conservatives just do not want to talk about making the big oil corporations pay their fair share and taking a load off everyday taxpayers? Instead, they want to scrap a tax that is an investment. It goes back to eight out of 10 Canadians. We want to make sure polluters pay their fair share. Maybe my colleague can speak to that.
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Mr. Speaker, I thank my colleague for that interesting question.
Indeed, there has been a lot of talk about oil in the House today and in the past few months. The Liberal government has and would have had a great opportunity. Obviously this would never come from the Conservatives, but the oil companies' profits soared over the past few months, and the Liberal government refused to take a cut.
That is too bad because we are not talking about millions of dollars, but billions of dollars. A small cut of that amount could easily help our seniors, the people who always lose out and get overlooked in our system.
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Mr. Speaker, I will be sharing my time with my hon. colleague from Whitby. Tonight is the first time since June that I have formally risen in the House. I would like to begin by greeting my colleagues. I hope that they had a great vacation and summer in their ridings with their families and constituents.
We are here tonight to debate Bill C‑30 which, along with Bill C‑31, represents a suite of federal measures to make life more affordable for vulnerable Canadians.
I think it is very important to put things in context. Over the last couple of years, we have seen the effects of supply chains that have been rocked by the pandemic. There have been weather events. Of course, there is the war in Ukraine, caused by Russia's invasion. There are also demographic changes. The economy, in Canada and in other countries, is very robust. Unemployment is very low, and that creates inflation in Canada and around the world.
I quite appreciated my colleague from the Bloc Québécois who talked about this being a supply-side economic issue. That is what I was trying to mention, while working on my French. Hopefully it came through in the translation. The fact is that some of what we are seeing right now is being driven by factors outside of Canada that relate to the products, goods and services that we, as global citizens, want to make sure we have as Canadian consumers. It comes down to two issues when we are talking about economics and affordability. The Bank of Canada has a role with respect to monetary policy and setting interest rates and trying to keep inflation to around 2%, and the Government of Canada has a role and obligation that pairs with that, albeit independent of the Bank of Canada, which is around fiscal policy.
It was mentioned today in the House, I do not think it needs to be repeated, that it is important that all parliamentarians respect the independence of the Bank of Canada and its expertise in setting monetary policy. Our job here of course is to perhaps understand the implications of those decisions, but to really focus on the government's fiscal decision-making as it relates to and couples with monetary policy. We have seen the Bank of Canada acting. It has increased its benchmark rate, which is having an impact on Canadians. It is quelling some of that demand. In fact, we are looking at forecasts right now with respect to trying to avoid a recessionary period, not only in Canada but indeed around the world.
I had the opportunity to review the decision by the Federal Reserve in the United States, which has significantly increased its interest rate. There will be a conversation that will have to be had by the Bank of Canada as to whether or not it will match that rate, such that we are not impacted from a consumer side with respect to imports and the value of the American dollar going higher, or whether or not we will try to pair a bit lower, such that our exporters can benefit with respect to that economic side. It is complex. I do not pretend to stand here as a pure economic theorist, but those are the decisions that are being made right now.
That brings us to this conversation on affordability, because we know particularly vulnerable Canadians are struggling right now. During the pandemic, I will remind members, the government was there to help support the small businesses and individuals who were impacted the most. As we come out of COVID–19, as we move beyond the pandemic, it is also our responsibility to look at the situation and be able to rein in government spending.
I will go on record to say, and it has not really been talked about here in the House, particularly by His Majesty's loyal opposition, that the government is actually in a surplus situation. I think that is pertinent right now given the fact the government has had to spend. It would be unwise if the government had not stepped up and provided that economic support at that time of uncertainty to make sure our economy continued to function and move forward, and indeed to set the stage for where we are at right now.
Again, it is Keynesian economics at its core. Government spends during a down period when help is needed and then reins back spending when the economy is strong, as is happening right now.
How do we try to help support Canadians without impacting what the work of the Bank of Canada is doing right now, which is to try to bring down demand? I think it is what we doing right now with Bill C-30 and Bill C-31, which are targeted measures. These are not just spending measures to provide support to all Canadians, including some of those who are the most wealthy. This is targeted to those who really need help the most.
I want to give some context to what we are talking about today. Bill C-30 proposes to double the GST credit for the next six months for both individuals and families who are eligible. That is about 11 million Canadians. The benefits at an individual level would be for someone without children with a household income under $49,000. That is what we are talking about in terms of providing very targeted support to those who need it. For those who have families, the example would be under $58,000. For anything above and beyond that, these individuals would not necessarily be eligible for these supports.
It is extremely important because it is targeting those who need the help without impacting Canada's fiscal position. This is a $2.5-billion spending measure. That is not insignificant, but it is not going to disrupt the work that the government is doing to rein in spending, at the same time understanding that the Bank of Canada has a mandate to bring down inflation. Indeed, in some contexts of what we hear His Majesty's loyal opposition calling for, the government is doing it. Perhaps that is not the narrative they want to spin, but we are working to do just that.
I just want to take a moment to speak about Bill C-31. I understand it is a different piece of legislation, but they are interconnected. This is about providing affordability measures on housing with a $500 housing benefit for those who are vulnerable, and providing dental care. We have heard great impassioned debate and context about how important this is. The dental care is for children who are under 12 whose household income is under $90,000 and who do not already have private insurance coverage.
Right now, conversations continue on how best to deliver this. I have asked some questions in the House of my NDP colleagues. There is merit in working out program delivery with the provinces, who are closest on the ground, who are going to be able to be there to help implement this and who would have relationships with dentists. I understand that right now this is an interim stop-gap measure to help provide that support to families.
I, as a parliamentarian, may disagree with the NDP assertion that this should be a federally administered program. Perhaps it should be for indigenous communities, where the Government of Canada shares a very close constitutional relationship. I think that is clear. Perhaps it should be for military families if there is a way to roll that out through the Department of National Defence and the Canadian Armed Forces. Otherwise, this is best suited for the provincial level.
I recognize that my time is coming to a close this evening. What I way to say and what I want to reiterate is that I think these measures are reasonable, balanced and targeted to Canadians who need the support the most. We are in a situation where there is some level of economic uncertainty. Inflation is coming down. The Bank of Canada is doing its work. The government is responding in a responsible manner to not drive additional liquidity at a time when the Bank of Canada is reducing its interest rates accordingly.
I look forward to the conversation and the questions from my colleagues here tonight.
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Mr. Speaker, I appreciated my hon. colleague's speech, and I appreciated that I heard, twice, his use of the phrase “rein in spending”.
Earlier in this debate, I asked our colleague, the member for Ottawa Centre what the government's plan was going forward and whether it was more of a series of one-off payments in response to inflation. I am encouraged to hear the beginnings of a plan through the phrase of “rein in spending”.
Where would my hon. colleague envision this reining in of spending occurring?
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Mr. Speaker, I certainly appreciate the candour of my hon. colleague opposite. We have a great working relationship on the agriculture committee.
There is a whole host of areas I could look at it, but what I want to reference is when the Deputy Prime Minister and Minister of Finance tabled her budget. There is a plan to undertake about nine billion dollars' worth of spending efficiencies that the government is hoping to accomplish. There is probably a number of areas where that could happen. We are talking about a budget, in normal times, that would be around $370 billion. I do not want to label any one specific program; I think that would be inappropriate. However, I think there is room for the government to look at measures on efficiency and to rein in spending, similar to what we are asking Canadians to do. We know this has been a challenging time.
We are going to do that responsibly. I will certainly look forward to the government's work on that. I am happy to take any suggestions if the member has some areas where he thinks that is particularly important.
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Mr. Speaker, I thank my colleague from Kings—Hants for his speech, in which he touched on housing, which is an important issue. There is no denying that, with the ongoing inflationary crisis, this is one budget category that has grown even more than most.
Still, I am fascinated by the Liberal government's lack of long-term vision and its propensity for sending out cheques as a form of one-time support.
As the Bloc Québécois critic for seniors, I have seniors getting in touch with me to say they cannot afford enough to eat. They see inflation driving grocery prices higher and higher. Does my colleague from Kings—Hants really think that a one-time cheque for $500 will help seniors? Would it not be better to consider a long-term solution such as increasing old age security significantly and permanently? I would like my colleague to comment on that, because I honestly do not think that $500 will do much for seniors.
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Mr. Speaker, I thank my colleague for her question.
The housing issue is a very complex one. The private sector and municipal and provincial governments must be part of the solution.
Of course, the Government of Canada has a role to play and must help by implementing certain programs. However, it is above all a municipal responsibility. To some extent, the problem is rooted in the labour shortage and the supply chain.
With respect to old age security, a $110-a-month increase for every senior is definitely possible. However, such a measure would cost $10 billion per year and per budget. I understand the importance of seniors, but at the same time, it is important to think about balancing the budget.
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