44th Parl. 1st Sess.
October 3, 2022 11:00AM
Madam Speaker, I rise to speak to Bill C-31, which is legislation styled as an act respecting cost of living relief measures. I emphasize “styled” as an act respecting cost of living relief measures, because the measures put forward in the bill can at best be described as half-measures and band-aid solutions that fail to address the root causes of the cost of living crisis faced by everyday Canadians.
The bill offers measures by throwing some money here and throwing some money there, all in a desperate effort by a desperate government to make it appear that it is doing something, anything, to address the cost of living crisis, a crisis of this Liberal government's own making. I have to say that it is a bit ironic that, even though the bill is styled as legislation to address the cost of living crisis, it would, in fact, exacerbate the cost of living crisis. It would do so because it comes with a price tag of several billion dollars that would be borrowed and would pour fuel on the inflationary fire that is at the heart of Canada's cost of living crisis.
The cost of living crisis cannot be understated. It is happening. It is real, and Canadians are hurting like never before. Inflation is at a 40-year high. It hit 8.1% in June. Inflation for essentials such as food is even higher. Grocery prices are increasing at a faster rate than we have seen in 40 years, with food inflation hitting 10.8%. When one looks at some dietary essentials, prices have gone up even more. Fresh fruit is up 13.2%. Eggs are up 10.9%. Bread is up 17.6%. Pasta is up 32.4%. I could go on. The average family of four is now spending $1,200 more this year over last for groceries. That is $1,200 more this year over last year just to put food on the table.
While members opposite and their coalition partners in the NDP will undoubtedly pat themselves on the back for handing out $500 rent cheques, which, by the way, most renters would not even qualify for, that is a mere fraction of the increased cost that Canadians are paying just to put food on the table. It underscores the severity of the cost of living crisis and the empty response on the part of this government in tackling it.
How did we get into this mess in the first place? Undoubtedly there are a number of factors, but perhaps the biggest factor is the government's reckless fiscal policies and the government's out-of-control spending. Never in Canadian history have we had a government that has spent more, borrowed more and added more debt. To put it in some context, in the past seven years, the Prime Minister has accumulated more debt than all the debt accumulated in the 148 years of Canada's history leading up to the election of this government.
The Prime Minister has added more debt than all previous prime ministers combined. That is staggering. It demonstrates a total lack of prudence and a complete recklessness on the part of the government, which has now resulted in this cost of living crisis with 40-year-high inflation. The government told us not to worry and that it can spend and spend some more because interest rates are low, until they are not.
We saw the highest increase in interest rates in a quarter of a century last summer and interest rates are undoubtedly going to go up even further. The Liberals say they had no choice because of COVID, except when one looks at the facts, the government cannot hide behind COVID as an excuse for its out-of-control spending.
Let us look at some of those facts. To begin with, the government added $100 billion in debt in its first five years in office, before COVID hit. In other words, the government added more debt during the good times, indeed, more debt than any government had accumulated during that period of time, leaving the cupboard bare.
Of the half a trillion dollars in new spending that we have seen over the past two years, this fire hose of spending, the Parliamentary Budget Officer has determined that more than 40% of that is unrelated to COVID. The Liberals say it is because of COVID, yet hundreds of billions of dollars of the half a trillion dollars of new spending, according to the PBO, is unrelated to COVID.
Then, in January, the Parliamentary Budget Officer said that the stimulus spending was not serving its intended purpose anymore. The PBO effectively called on the government to stop the new spending. What was the government's response to the Parliamentary Budget Officer? It was to do exactly the opposite. The government did the only thing the government knows how to do and that is to spend other people's money, with $71 billion of new spending with Bill C-8, $60 billion in new spending with budget 2022 and now billions more dollars with this inflationary spending bill.
To pay for it all, the government, through the Bank of Canada, did something that no other government has done before, and that is quantitative easing or, in other words, the printing of money. After all of the spending, all of the debt and all of the money printing, there has been a cost. That is the cost of 40-year-high inflation. The more the government spends, the more the cost of living goes up. The more the government spends, the costlier it is for Canadians to purchase goods. Canadians are making less in their paycheques and their purchasing power is being diminished, all because of the government's reckless fiscal policies.
Although we find ourselves in this position of 40-year-high inflation, fuelled by the government's reckless spending, one must say that it ought not have been a surprise to the government that it would find itself in this place. After all, it was quite foreseeable. When we have more money chasing fewer goods, we are going to get inflation. That is called economics 101.
The leader of the official opposition, when he was the shadow minister of finance, called on the government to monitor inflation. He predicted that, if the government did not get spending under control, we would see inflation. What was the response from the finance minister and the Prime Minister? It was to completely ignore the Leader of the Opposition. They said to not worry about inflation and that, if anything, we must be concerned about deflation. How wrong they were.
I guess it is a consequence of having a prime minister who has admitted that he does not think much about monetary policy. Perhaps if he thought a little about monetary policy, we would not find ourselves and the country in this fiscal mess and the consequent cost of living crisis that everyday Canadians are enduring. If the government was serious about addressing the cost of living crisis, it would not be doing what it is doing, but it is doubling down on the same failed approach that got us into this mess in the first place, with even more spending.
What the government should be doing is heeding the advice of the Leader of the Opposition by reining in spending, by restoring a fiscally responsible policy and a sound monetary policy, by finding savings and by rooting out waste in government. There is no shortage of waste to root out.
If the Prime Minister was serious about tackling the cost of living crisis, which begins with tackling the out-of-control spending of the government, the Prime Minister would be doing what the Leader of the Opposition has called on the government to do, which is to introduce legislation such as “pay as you go”, whereby the government must find a dollar of savings for every new dollar of spending.
Some Liberals might scoff at the notion of “pay as you go” legislation, but it has worked. It has worked in the largest democracy and the largest economy in the world, that of the United States. More than 20 years ago, a Republican Congress passed and a Democrat president, Bill Clinton, signed into law “pay as you go” legislation. What was the result? It was a balanced budget for the first time in decades, and the United States paid down more than $400 billion of debt.
Do not expect the current government to implement measures such as this. Do not expect it to rein in spending. Do not expect it to reflect on its failed policies and reverse course, because, on issue after issue, the government's measure of success, as it measures success, is based upon how much it has spent.
We see this with respect to housing. The government has spent billions of dollars, more than $40 billion, on housing. Billions more were announced in budget 2022. What have been the results?
To begin with, the average Canadian is now paying roughly half of their monthly paycheque to cover their monthly housing costs. When the government came to office, the average Canadian was paying roughly 32% of their paycheque. They are now paying 50% of their paycheque. As well, housing prices have doubled. They have gone up 52% in just the past two years.
We have the most land in the G7, and yet we have the fewest houses in the G7 on a per capita basis. The Liberals can pat themselves on the back for spending all this money in housing, but when we look at the results, we have the fewest houses in the G7, among the highest prices, which have doubled under the government's watch, and now Canadians are paying half their paycheques just to put a roof over their heads. I would call that a policy of failure. Canadians certainly have not received good value for all that money that went out the door.
If the government were serious about tackling housing affordability, it, again, would be turning to the Leader of the Opposition, who has put forward a comprehensive plan to make housing more affordable so Canadians can purchase a home or rent a unit, by, among other things, tackling supply, increasing supply, by selling off a portion of the federal government's real estate portfolio to build more housing units and by incentivizing municipalities to allow more houses to be built, including tying federal infrastructure dollars to municipalities based upon new units built. These are reasonable solutions to try to address a very real problem that is impacting so many Canadians.
What is the government's solution? To hand out a $500-rent cheque. Its solution is a $500-rent cheque that does not even cover one week's rent in most Canadian cities. Not only that, more than six out of 10 renters will not even qualify for the cheque, and those who do will see whatever short-term benefit of that $500 eviscerated with the Liberals' inflation, rising interest rates and, most significant, planned Liberal tax hikes in the new year.
At a time when Canadians are paying more in taxes than in housing, transportation, food and clothing combined, at a time when Canadians are faced with 40-year-high inflation, the Liberal government has suddenly decided it is a good time to increase payroll taxes and triple the mother of all taxes, the tax on everything, the hated carbon tax, which, by the way, is contributing to inflation.
It demonstrates that the government is not serious about addressing affordability. If it were, as a starting point, it would heed the advice of the Leader of the Opposition and cancel the planned tax hikes. It will not, so we have a government that is with one hand handing out some cheques to some Canadians only to take whatever benefit away with the other hand in the way of planned Liberal tax hikes.
This legislation may be styled as an act respecting cost of living relief measures, but this is not a serious plan to address the cost of living; it is more Liberal smoke and mirrors. It is an empty PR exercise in the absence of a real plan. It is why I will be opposing the bill.
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Madam Speaker, in listening to the Conservatives, people would think that the Liberal Government of Canada is causing rapid inflation around the world, that all the problems, whether it is the pandemic or the war in Europe, have no effect on what is happening in Canada.
The reality is quite different. Canada is concerned about inflation, as we should be. However, in comparison to the United States, the European Union or England, our inflation rate is lower. When we look at the legislation we are debating today, it is about providing dental care for kids under the age of 12. People would not know that if they are listening to the members speaking to the legislation.
Does the member not see the value of providing dental care for children under the age of 12? Does he not believe that the children he represents would benefit from the program being proposed in the legislation?
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Madam Speaker, I would note that nine out of 10 provinces already have dental plans and supports for children, so in that respect this is a duplicative measure.
The hon. member talked about the reality of what is happening in Canada. The reality is that we have 40-year high inflation, and it is being fuelled by the government's out-of-control spending. The member is quite right that Canada is not alone. Other countries also have inflation. Why? Because they have pursued the very same policies as the Liberal government. If the same reckless policies are pursued, there will be the same reckless results.
The parliamentary secretary cited the United States. It—
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- Oct/3/22 12:23:14 p.m.
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The hon. member for Mirabel.
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Madam Speaker, my colleague delivered yet another of the very well-organized speeches we have come to expect from him, so it is clear to me that the Conservatives oppose Bill C‑31. I get it; the bill is very poorly written. However, given that they would rather the federal government essentially cease to exist, I assume they are also against giving money to Quebec so it can improve its own system.
That being the case, is the Conservative Party now against transfers, including upping provincial health transfers to 35%? Are they now against what Quebec and all the provinces want?
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Madam Speaker, the hon. member for Mirabel is quite right that the premiers have called on the federal government to increase health transfers to the provinces. The Prime Minister has refused to even sit down with the premiers and has come up with this bill instead of addressing the needs of the provinces.
We do have deficiencies in our health care system that need to be addressed. Those deficiencies were exposed during COVID. What is required is federal leadership working collaboratively with the provinces, and that starts with sitting down with the premiers, something the Prime Minister has failed to do.
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Madam Speaker, I want to be very clear on this point. The CPP and EI are not taxes. These are social programs. They are part of a social safety net that ultimately helps workers.
The opposition party is consistently saying that these are taxes, but these are deductions that help people. The Conservatives are saying that they want to save workers, on average, about $11 a month by cutting their pensions and EI. What they are not saying to people is that this would save corporations billions. They are trying to sell them on something that is not true.
Ultimately we are trying, through the government and our work with it, to create long-lasting equity-driven social programs, like dental care.
There is a difference, but the Conservatives are calling for tax cuts that would benefit a very small group of people. What we are seeing in the U.K. is that this clearly is not working. This is clearly—
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- Oct/3/22 12:26:13 p.m.
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I have to give the hon. member time to answer.
The hon. member for St. Albert—Edmonton.
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Madam Speaker, the member for London—Fanshawe has said that these payroll tax hikes are not tax hikes, yet her leader, the member for Papineau, has said that they are. The Government of Canada website states that they are.
This is the reality for everyday Canadians. These payroll tax hikes will mean that the average person will take less of his or her paycheque home. In the new year, people will be taking even less home when, on top of the payroll tax hikes, the government, with the backing of the member for London—Fanshawe and the NDP, is going to triple the carbon tax.
The policy of the NDP is one of taking more money out of the pockets of Canadians and making life less affordable. Our position is to put more money back in the hands of Canadians by cutting taxes, which is a very different approach, indeed.
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Madam Speaker, I know the member for St. Albert—Edmonton has been interested in finding common ground in the chamber. Just last week, he proposed and sponsored a bill from the Senate that was passed here unanimously.
In this spirit, when he speaks about the cost of housing, we both agree that much more needs to be done to address increased unaffordability. One issue I hope he could comment on is the rules of the market that currently favour corporate investors, such as real estate investment trusts.
I have two questions. Does the member agree that homes should be for people to live in and not commodities for investors to trade? Is he not similarly concerned that more needs to be done to tilt the market back toward regular Canadians, young people, for example, who are looking to afford rental housing in communities across the country?
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Madam Speaker, I appreciate working collaboratively with the member for Kitchener Centre on some issues of common ground.
The root of the problem of which the member speaks goes back to the half a trillion dollars that the government pumped out over the past two years, money that went into the mortgage and finance systems, which was borrowed out to investors who bought up properties and bid up prices. As a consequence, housing prices have gone up 52% because of that policy.
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Madam Speaker, we just heard a comment from the NDP that suggested that taxpayers just like those big, bad corporations were the bad guys. I would like the member to reflect on this. In essence, every tax dollar comes out of the pockets of taxpayers.
Could he reflect on where the money comes from for these payroll taxes?
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Madam Speaker, it comes from the earnings of Canadians, who will be taking home less in January, again, thanks to the Liberal and NDP planned payroll tax hikes and the tripling of the carbon tax. They could not have come up with a worse policy at a time of this cost-of-living crisis in the face of 40-year high inflation. By the way, as the—
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- Oct/3/22 12:30:22 p.m.
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We have time for one last question.
The hon. parliamentary secretary to the leader of the government in the House.
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Madam Speaker, I listened with interest when the member talked about the price on pollution, the carbon tax, as though it was brand new. The reality is that party has run on having a price on pollution in three elections. In fact, the member, under the Conservative banner, also ran in favour of a price on pollution in the last election in 2021.
Could he explain to the House why he is so critical of a plan that he ran on just one year ago?
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Madam Speaker, the parliamentary secretary is simply wrong. I have always opposed the carbon tax. The Conservative Party has always opposed a carbon tax, and we will scrap it if elected.
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Madam Speaker, I am sharing my time with my good colleague, the member for Edmonton Strathcona.
What are we talking about here this morning in the House of Commons? We are debating Bill C-31. It is a bill that wants to see Canadians get the support they need. What are those supports? We are talking about ensuring that low-income families and children get access to dental care. We are talking about providing a housing benefit for low-income individuals and families, although a one-time housing benefit. Nonetheless, it is some support that is desperately needed for people in our communities.
Where are we? We just heard from the Conservatives that they are opposed to providing low-income families and their children access to dental care. They say we cannot afford it, yet they are completely fine seeing the big oil and gas industry continue to get subsidies from the government. Last year alone, the oil and gas sector made over $147 billion in profits, and the Conservatives want to see that they continue to get subsidies from the government. Meanwhile, they are saying no to children under 12 from families that cannot afford to get dental care.
We have to give our heads a shake and ask what is wrong with this picture. The Conservatives just elected a new leader, and every day we hear in this House each one of the Conservatives get up and make a statement to talk about how they stand on the side of the people and how they have people's backs. Whose backs do they have? It would be those of the wealthy CEOs and big corporations that are making humongous windfall profits—
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- Oct/3/22 12:33:41 p.m.
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We have a point of order from the hon. member for Prince George—Peace River—Northern Rockies.
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Madam Speaker, I think the member is confused. The Conservatives are not in government. It is actually the Liberal Party that is in government now.
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- Oct/3/22 12:33:52 p.m.
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That is not a point of order; that is debate.
The hon. member for Vancouver East.
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