44th Parl. 1st Sess.
October 4, 2022 10:00AM
Madam Speaker, the member wants to know what the difference is between the Liberals and the Conservatives. I can tell him that very clearly.
The Conservatives want to ensure we take good care of the hard-earned tax dollars of Canadians. We want to make sure we are putting Canadians first and not making life more difficult for them through the kinds of things we have seen from the Liberal government. That is the difference between the Liberals and the Conservatives.
We are talking about a bill that does have the support of everyone in the House. I heard it put really well by one of my colleagues earlier today. If taxpayers have a loaf of bread, the government is going to take that bread from them and give them just a few crumbs back. That is what the government is doing. It has no compassion and no understanding of what Canadians are dealing with.
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Madam Speaker, I am glad to hear my hon. colleague say that all parties in the House will support this bill, but I was taken aback by his attempt to make it seem like this amount of money is inconsequential. It is easy for a member of Parliament, who makes a minimum of $185,000 a year, to stand in the House to say that $500 does not mean much to someone. My daughter is an adult with special needs. She has friends who live on $15,000 a year. For someone who is earning $15,000, $20,000 or $25,000 a year, that $500 is incredibly significant.
I wonder if the member could speak to that. Would he agree with me that giving temporary relief of $500 to help fight inflation to people who make under $40,000 or $50,000 a year can make a real difference in their lives?
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Madam Speaker, I would first point out that the member certainly misunderstood or misconstrued my comments. I understand that. He is simply trying to justify the fact that the NDP are trying to prop up a government that does not deserve to be propped up. He has to try to justify that somehow to his voters, so I get what he is trying to do, and it is his prerogative to do that.
Having said that, is the amount of money we are talking about here going to help people? Sure it will. That is why we are supporting it. Does it do enough? No, it certainly does not do enough. There are a lot of Canadians who will not receive any support from this. There are far better ways this could be done. That is what I was trying to point out in my speech.
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Madam Speaker, I would like to thank the member for Banff—Airdrie for keeping the focus on Canadians in his speech.
The Liberal member across the way was talking about Bill C-31, not Bill C-30. The Parliamentary Budget Officer will be doing an update next week on the cost of that, so I think it is important that we all wait and get that costing before we have a fair analysis of Bill C-31.
I want to reiterate the point that the member made that the government did not use the summer to do the hard work to find offsetting spending cuts so it could avoid the criticism of being more inflationary. I would like him to comment on how important it is that Canadians not only deserve support, but also have a government that does not fuel inflation and actually fights it.
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Madam Speaker, the member made a great point. There is no doubt that the spending the government has undertaken has led to more difficulties and more pain for Canadians with the inflation we have seen as a result of some of its actions. Canadians deserve a government that will consider what the effect would be on Canadians when it needs to spend money and try to find ways where it can find savings.
One of the policies the new leader of the Conservative Party, the Leader of the Opposition, has put forward is the idea that for every new dollar spent we find some savings, because we expect government to be run the same way we expect Canadians to run their households.
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Madam Speaker, I will be sharing my time with the member for Saanich—Gulf Islands.
I am pleased to contribute to the debate on this important legislation today. Making life more affordable for Canadians is a key priority for our government. The pandemic has been tough for everyone, and unfortunately one of the consequences has been inflation. This worldwide inflation problem has made affordability a real concern for many Canadians, including in my riding of Whitby, and especially for the most vulnerable.
We understand that there are those who are going through hard times, but this government has real solutions to the cost of living struggles of many Canadians. Overall, the government’s affordability plan is delivering targeted and fiscally responsible financial support to the Canadians who need it most, with particular emphasis on addressing the needs of low-income Canadians who are most exposed to inflation.
The government’s affordability plan includes an enhanced Canada workers benefit that will put up to $2,400 more into the pockets of low-income families. There is a 10% increase in old age security for seniors over 75, which will provide more than $800 in new support to full pensioners over the first year and increase benefits for more than three million seniors.
We are also cutting regulated child care fees in half by the end of this year. We have doubled the Canada student grant until July 2023 and are waiving interest on Canada student loans through to March 2023. The main support programs, including the Canada child benefit, the GST tax credit, the Canada pension plan, old age security and the guaranteed income supplement, are all indexed to inflation so those will be increasing as well.
Two weeks ago, the government tabled two important pieces of legislation in Parliament. The bills represent the latest suite of measures to support Canadians with the rising cost of living without adding to inflation. Bill C-31 would make it so that up to half a million children under 12 would be able to see a dentist, and low-income renters would receive a little extra breathing room with a $500 payment to help with the cost of rent.
The bill we are discussing today is Bill C-30, which would double the GST tax credit for six months. Doubling the GST credit would provide $2.5 billion in additional targeted support to the roughly 11 million individuals and families who already receive the tax credit. That includes about nine million single individuals, almost two million couples and more than half of all Canadian seniors. Just think about that. Over half of all Canadian seniors are going to be supported by this measure.
The GST tax credit is indexed to inflation on an annual basis. For the July 2022 to June 2023 benefit year, the value of the GST credit grew by 2.4%. However, because these increases are based on the inflation rate from the prior year, the sharp rise in inflation in 2022 is not yet reflected in the GST credit payments that Canadians are currently receiving. This is why the extra top-up is the right thing to do at this particular time, because Canadians are not going to get the benefit of an increased GST tax credit payment until the following year. It is a good thing that we are topping it up.
Single Canadians without children would receive up to an extra $234, and seniors would receive an extra $225 on average. I have another example of how it would work. A single mother with one child and $30,000 in net income will receive $386.50 for the July through December 2022 period, and another payment of the same amount for the January through June 2023 period under the current GST credit. With the temporary doubling of the GST credit amounts for six months, she would receive an additional $386.50. In total, she would be receiving about $1,160 this benefit year through the GST credit.
A couple with two children and $35,000 in net income would receive $467 for the July through December 2022 period and another $467 for the January through June 2023 period under the current GST credit. With the temporary doubling of the GST credit amounts for six months, this family would receive an additional $467. In total, it would receive $1,401 this benefit year through the GST credit.
The proposed extra GST credit amounts would be paid to all current recipients through the existing GST credit system as a one-time lump sum payment before the end of the year, pending, of course, the adoption of the legislation. This highlights the importance of getting this done as quickly as possible, as we all can agree Canadians are feeling the pressures of inflation and the cost of living increases.
Importantly, recipients would not need to apply for the additional payment, but should make sure to file their 2021 tax returns, if they have not done so already, to be able to receive the current credit and the additional payment. Bill C-30 and the other important measures I mentioned would deliver targeted support to the Canadians who need it most without adding unnecessary fuel to the fire and allow inflation to become entrenched. That is a major concern, and we do not want inflation to become entrenched. That is something that would in fact be counterproductive and make life more expensive for everyone for years to come.
However, we cannot compensate every single Canadian for rising costs driven by global events. To do so would make inflation worse. Bill C-30 is about balancing fiscal responsibility with compassion. This support is the right thing to do at the right time. Even as we deal with the very real challenges that the global economy is facing right now, it is important for us to take real comfort in the reality that Canada has a very strong economic foundation as we face these global challenges.
Canada has the lowest deficit this year in the G7. Canada has the lowest net debt-to-GDP ratio in the G7, and Canada’s AAA credit rating was reaffirmed this year by Moody's, S&P and DBRS. The International Monetary Fund and the Organisation for Economic Co-operation and Development predict that Canada’s recovery will be the second fastest in the G7 this year and next. That is a pretty good track record.
The government’s affordability plan has already been putting more money back in the pockets of Canadians who need it most. We will continue to provide timely support where it is needed most, all while maintaining fiscal discipline.
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Madam Speaker, we certainly welcome and are pleased with this new GST credit, because the Bloc Québécois has been asking for it for several months and the government was refusing to listen.
That being said, my constituents, who are struggling to make ends meet, buy groceries every week, pay their rent every month and fill up regularly at the pump. How is it that the government has not yet thought to send households their GST rebate checks on a monthly basis, so they can receive the money quickly, at the same time they incur their costs?
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Madam Speaker, the member opposite mentioned, just as constituents in my riding have shared with me, concerns about the cost of living, which are very real for Canadian families. Our government has put forward a whole suite of measures. There is the 50% reduction in child care fees, which is thousands of dollars per year to Canadian families with children. There is dental care for children under 12, rental assistance payments, financial assistance for those with disabilities, which will hopefully be passed in the House shortly, and a 10% increase in OAS for seniors over 75. We have doubled Canada student grants and waived interest on Canada student loans. CCB payments are going up, and the price on pollution has moved to direct quarterly payments. What more can we—
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- Oct/4/22 4:06:27 p.m.
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I have to allow time for other questions.
Questions and comments, the hon. member for Central Okanagan—Similkameen—Nicola.
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Madam Speaker, I want to quickly raise that students will actually be paying higher interest rates under the government. That is something that has recently been revealed. The member may want to consider his caucus talking about that.
The member talked about fiscal discipline. Conservatives are supporting this bill because it has targeted tax relief to help Canadians who are struggling right now. However, will the member recognize that right now the average family of four may receive $467, but they are going to be paying over $1,200 just in groceries alone? The Governor of the Bank of Canada has written to the finance committee saying that the carbon tax is an inflationary tax and that the government's plan to triple, triple, triple the carbon tax over the next few years is going to hit them the hardest, by paying more for groceries, gas and heat.
Does the member recognize that fiscal discipline means recognizing when people are at a breaking point?
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Madam Speaker, I really am at a loss for words with the incessant repetition of “triple, triple, triple” so many times in the House. It reminds me of a Tim Hortons drive-through. Maybe the Conservatives should stop their caffeine-induced rage farming over the climate plan we have and the price on pollution and rather focus on what Canadians really need, which is information and solutions.
To me, when I look at the price on pollution, it has moved to direct quarterly payments. Families in my ridings are getting $745 this year directly from the federal government. If we look at the whole package of supports, it is well beyond what families are paying extra at the grocery store or at the pump.
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- Oct/4/22 4:08:41 p.m.
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Madam Speaker, I hear that from the Liberals all the time. They like to put out all sorts of numbers, and they put them out so much that people who are watching can hear all these big numbers, like the $1,000 they are going to get back, when in reality it is a much smaller number. They inflate that number, just like they inflate inflation and just like they inflate the taxes that are on these people. Unfortunately, taxes are going up and prices are going up. Seniors, I suspect, in the member's riding, after taking retirement, are going to turn around and now say, especially those in my riding, that they are going to have to go back to work because they cannot afford the cost of living anymore because of increased costs.
It is one thing to help out, and it is nice to see that, but the bottom line is that ending the taxes will help these people much faster.
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- Oct/4/22 4:09:29 p.m.
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Madam Speaker, my apologies to the member opposite if he does not like the numbers the Liberal Party puts out, but they are factual and based in reality. Based on the many measures we have put out there, Canadian families are getting a whole package of supports in their time of need, everything from the Canada child benefit and a reduction in child care fees to direct quarterly payments for the price on pollution and the GST tax credit. When we put all those together, there are hundreds and even thousands of dollars that Canadian families are getting benefit from.
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Madam Speaker, I want to thank my colleague, the hon. member for Whitby, for sharing his time with me. I am honoured to stand here on the traditional unceded territory of the Algonquin nation and say meegwetch.
This has been a somewhat frustrating debate, as many speakers have noted. There is unanimous support in this place for Bill C-30, yet there are things we want to debate. For my part, I would just like to say that I support Bill C-30 because Canadians need help. Raising and doubling the GST rebate that would go to lowest-income Canadians would amount to $2.5 billion in total, and it would reach, in small amounts, 11 million Canadians. That is not something to sneeze at. People want help, and as my hon. colleague from Vancouver Kingsway said moments ago, $500 is not a small amount of money when one is really up against it. It will make a difference, and that is why I will vote for this.
We also have Bill C-31 that would provide a one-time only payment of $500 to help low-income renters as well as begin the really important work toward including dental care in our health care system, an idea originally proposed by the Green Party of Canada.
There is nothing not to like in this bill, but there is much to talk about because it does not address really large problems like what happens if we go into a recession. What if this inflationary problem is not solved by what the Bank of Canada has done in raising rates? The rate hikes have been quite dramatic. What if the rate hikes push us into a recession? That is a reasonable thing to ask, since that has happened many times before. As a matter of fact, according to the Canadian Centre for Policy Alternatives' economist David Macdonald, every time over the last 60 years that rate hikes have been used to address inflation, recession has occurred.
This really is a very difficult situation because we must also face international crises, including the climate change crisis, the pandemic, and the war between Russia and Ukraine.
These are complex problems, but those debating in this place, and for obvious reasons political parties, want short, simple bumper sticker solutions that convey support for their party by being definitive and being clear. It reminds me so much of the debate in this place over Bill C-30 or Bill C-31. It also reminds me of a somewhat famous quote from H.L. Mencken, a great journalist who wrote that for every complex problem, there is an answer that is clear, simple and wrong. We see that here so often in what we hear.
I will say what the complexities are and how they are not respected in this debate. This is not something that we can say is a simple problem. Even inflation in its traditional sense is not really simple, but this is not simple inflation. We have many factors. We thought initially that if we saw inflation in some prices of goods post-COVID that it would be in response to the pent-up spending desires of Canadians, who were not able to spend because COVID kept people from enjoying themselves, basically. The same thing happened after the Spanish influenza epidemic in the early part of the 20th century. The roaring twenties were a response to a very dismal period of people being locked down and to the massive number of deaths, in the millions, from the Spanish flu.
We were also told that we would see some initial inflation but it would be transitory and short-lived. That seemed to be holding true until February, when Vladimir Putin invaded Ukraine. That led to different costs and real costs rising because of the enormous impact it had immediately on the price of oil. Then there are climate impacts. Climate impacts are inflationary. It is important for my friends across the way to recognize that climate impacts have increased drought, have increased food prices and have increased the high price of some specific ingredients that make a difference in our shopping carts. All of these things combine to create what we are now experiencing in higher prices.
The response we get to this in terms of the interest rates is a debate in this place about how much money the Liberals spent in dealing with COVID and how they were just printing money. I would say this to my Conservative colleagues: I have no doubt that if Stephen Harper had been prime minister through a pandemic, he would have done exactly the same things the current Prime Minister did, because every economy in the G20 followed the same playbook. Every economy in the OECD was taking the same advice. Central bankers were using quantitative easing, a term I learned from the great former finance minister Jim Flaherty, who used quantitative easing. We were doing exactly what all the other economies around the world were doing, with virtually 0% interest rates and quantitative easing to get billions and trillions of dollars of money flowing into the global economy to confront the pandemic and try to save lives. These were complex issues, for sure, but they are simplified.
What I hear from the Conservative benches as we debate Bill C-30 is about inflation and the pain we are undergoing, to which Bill C-30 provides a band-aid. A band-aid is good when one is bleeding, by the way, but it is not a long-term solution. In this debate on Bill C-30, we have been hearing from the Conservatives that all the pain Canadians are experiencing is from the failures of the current government, that inflation is the fault of the current government and that global supply chain problems are the fault of the current government. I suppose the war in Ukraine, by extension, since that has been the proximate cause of the biggest price hikes in energy supply, is the fault of the government as well.
Disproportionately in this debate, the Conservative benches want to blame it for a very small increase, at 2¢ a tonne, in the price on carbon. That affects only some provinces. We have heard more than three times what the impact is. It is minuscule in the context of what we are experiencing and the real pain Canadians are feeling.
The simplification on the Liberal side is to ask us to compare Canada to other countries, as we are doing so much better than them. By the way, we have talked about our debt-to-GDP ratio, but just look at the U.S. debt-to-GDP ratio. It is over 100%, so we are doing better than the United States by quite a lot. However, a single mother who is trying to buy groceries does not really care that overall Canada is doing better on our debt-to-GDP ratio. That is not top of mind. She really wants to know that somebody has her back, as the Liberals like to claim they do.
Both camps, to varying degrees, have oversimplified the problems we are facing. In doing so, I do not think we adequately respect the intelligence of thoughtful Canadians, who are more than prepared to understand that this is a global problem and that we are not the only country experiencing inflation. In fact, some of the countries that are experiencing inflation that is much worse than ours have no carbon price and have not gone through the same policy instruments. This is not a specific problem for which we can blame the Liberals. I will blame the Liberals for many things, but I cannot blame them for this inflation.
When we look at what this is about, I want to refer my colleagues to a book that I think is prescient and worth looking at. It came out in 2005. It is by James Howard Kunstler, who is a best-selling author. The book is called The Long Emergency: Surviving the Converging Catastrophes of the Twenty-First Century. In it, he pointed out that when the price of gas and oil becomes constrained by real events, we have a real challenge to what we presume to be our right to a certain standard of living, to a certain lifestyle, for lack of a better word.
We can look at the real costs of everything. I am going to quote Andrew Nikiforuk, writing in The Tyee and referring to the The Long Emergency: “Since April 2020 the cost of oil has climbed five-fold. The price of coal, the cheapest of fossil fuels, has hit new highs by nearly 150 per cent.” These are real costs that really affect prices.
What do we need to do if we are serious? We do not need band-aid solutions. We need long-term solutions, anticipating that we may well be in a recession. Let us look at a wealth tax. We need to go back and look at a general wealth tax, but specifically let us look at a windfall tax on oil and gas profits. Oil and gas profits due to the war in Ukraine have had unbelievable gains.
I have come to the end of my time. We need to tax back.
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Madam Speaker, the member brought up a really interesting point, which is that the Governor of the Bank of Canada made predictions regarding inflation and then something else was thrown in. It was a wrench. I do not think it is fair to assume that the governor should have known that a war in Ukraine was going to break out. However, the narrative that always comes from the Conservatives is that since the Governor of the Bank of Canada said one thing would happen but another thing happened, he is wrong and is therefore to blame.
Given that the governor could not have possibly known that a war in Ukraine would break out and what the sanctions would be, and hence the impact of it, would she agree that he is indeed not to blame for the fact that he may have gotten that wrong?
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Madam Speaker, obviously no one can blame the Governor of the Bank of Canada for assuming that it was situation normal. It is not situation normal. I remember when the previous governor of the Bank of Canada, Stephen Poloz, was testifying at the finance committee. When asked if he was worried about the inflationary impact of the government using quantitative easing, he said that inflation was a problem he would love to have. He was worried about deflation.
The best and brightest folks, who are really bright, did not think that inflation was going to be a problem, and that if it was, it would be temporary and short-lived. We saw the price on some things go way up and the price of other things fall. It is not conventional inflation and it never was.
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Madam Speaker, the Conservatives will always support lower taxes. That is why we are supporting Bill C-30. My concern is that with one hand, the government is giving a few hundred dollars back to Canadians, but with the other hand, it is actually taking that money away by increasing payroll taxes and the carbon tax and by continuing to spend in a way that financial experts are saying is fuelling the inflationary pressures we are seeing.
Would the member agree that this temporary band-aid is really not going to fix the problem?
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Madam Speaker, we may not agree on exactly what the problem is. I can agree that the temporary band-aid is not going to fix it.
Just on the point I had before closing, the profits that big oil is getting right now, which are off the charts and are really contributing to pain for Canadians, are essentially war profiteering. The profits are solely due to the war in Ukraine. The Parliamentary Budget Officer has said that if we increase the tax temporarily on the profits of big oil from 15% to 30%, $8 billion could be distributed to the Canadians who need it most. Let us get in a guaranteed livable income.
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Madam Speaker, for some time now we have been talking a lot about household purchasing power. We know that part of the decline in purchasing power is due to the drastic increase in the cost of resources, mainly fossil fuels. We know that, in the future, there will be policies to fight climate change that will end up increasing the cost of certain highly polluting goods.
I am wondering if this is now a good time, given the inflation crisis, to think about long-term solutions for Canadian and Quebec households. I am thinking in particular of households in western Canada, who are becoming less vulnerable to price increases by making the transition. I am wondering if the current crisis could inspire us to be more constructive in the long term.
In that light, I am wondering what solutions the member for Saanich—Gulf Islands would suggest.
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Madam Speaker, my sincere thanks to my colleague.
We have to think about preparing for future hurricanes, floods and heat waves.
In my province, British Columbia, more than 700 people died last summer because of climate change and heat waves. At this time, we are not ready to deal with disasters, which really damage our economy. We must eliminate subsidies to fossil fuel industries and plan to stop producing fossil fuels here, in Canada, with a plan to protect communities and workers. It is a long list.
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