44th Parl. 1st Sess.
October 4, 2022 10:00AM
Madam Speaker, not 10 days ago I spoke at second reading to Bill C-30. In fact, it was the deputy government House leader who asked me at that time to compare Canada to the rest of the world in terms of economic performance. I told him that Canada's record should be able to stand on its own and that he and his government should not continue to push up inflationary spending.
I have good news, and that is that I am not alone in my thinking. As of yesterday, an article by Diane Francis was published, and it reads, “Canada need only look to Australia to see how badly Liberals have messed up”.
I am going to quote from this article. It says:
The current government is economically illiterate and the result is the country is slowly sinking in the rankings of most economic metrics among the world’s developed nations who are members of the Organisation for Economic Co-operation and Development...An OECD report from October 2021 predicts, according to Business Council of British Columbia commentary, that Canada “will be the worst performing advanced economy over 2020 to 2030.” It also forecasts that Canada will have the worst economic growth among advanced economies over—
Wait for it.
—2030 to 2060. “In other words, Canada will be dead last not only for the next decade, but also for the three decades after that.”
Canada's former central bank chief, Stephen Poloz, at the recent Global Business Forum in Banff, said that Canada is a chronic underachiever, a condition caused by poor political decisions and the failure to address unresolved issues.
He also went on to say, “We get in our own way.”
We get in our own way. What is he really saying? I believe he is saying: “Government, get out of the way.”
He went on to list a few problems. He started by indicating “a political quagmire that requires a crisis to make decisions”. For example, I have this article here that states that the transport minister knew in May 2021 that the “federal airport security [workforce] was short-staffed by [up to] 25%, according to a briefing note”.
At the time, he blamed airport delays on Canadians who were eager to travel. The article continues:
In a May 13 briefing note titled “Airport and Flight Delays”, staff told [the minister] that the Canadian Air Transport Security Authority...was [short] a quarter of its employees due to layoffs during COVID.
“The Authority retained 75 percent of its workforce during the pandemic to assist with recovery,” wrote staff. “Screening contractors called back all available personnel in preparation for the summer peak.”
Here was an example where we had a political quagmire that required a crisis to make a decision.
Mr. Poloz went on to cite “layers of regulation”. I have here an example in which the National Capital Commission decided not to grant a permit for a lemonade stand as a result of regulation:
In 2016, those regulations were the basis for which the Crown Corporation shut down a lemonade stand operated by seven- and five-year-old sisters—
It is unbelievable.
—on NCC property in Ottawa. Their transgression: the girls had failed to acquire a $1,500-per-day permit from the NCC. The incident garnered Canada-wide media coverage and the NCC quickly apologized and backtracked, allowing the children to resume selling lemonade the next weekend. To avoid similar incidents, the NCC developed a special permit for the following summer that would allow kids to sell lemonade or other goods on specific NCC property during nine Sundays. The new permit had 15 requirements, including but not limited to a requirement for bilingual signage, stand size restrictions, adherence to municipal and provincial health and safety regulations, an indemnification clause, and reporting of all revenues to the NCC.
This was for a lemonade stand.
These are layers of regulation from the government that are causing problems here.
Next in the list was “permit and consultation that take ages to complete”. Well, the Trans Mountain pipeline comes to mind, and Mr. Poloz also noted that “Canada is one of the most highly taxed economies on earth, which is discouraging”.
I have some information on that. G20 countries with a lower tax rate than Canada include Saudi Arabia, Russia, Brazil, India and Indonesia. This is the company that the current government is keeping at this time.
As well, Mr. Poloz's final comment was on “interprovincial barriers that cost four per cent a year in GDP alone to Canada”. In fact, a study done by Deloitte indicates that, by removing current interprovincial taxes, which remain unfixed by the government, “average Canadian wages would climb by 5.5%”—if the government would address this—“resulting in a 5% increase in household income and more than $2,100 in real GDP per person. Corporate profits”—which I know the NDP does not like—“would increase by 2%.”
All of these actions result in Canada not living up to its economic potential, but the sad thing is that this does not simply rest with numbers and the economy alone. These numbers have real effects on people, as is evidenced by the article by Alicja Siekierska on an MNP survey, which says, “Canadians are finding it more difficult to pay for food, housing and transportation and nearly half are on the brink of insolvency as rising interest rates and soaring inflation continue to weigh on household budgets.”
I hear this from my constituents in Calgary Midnapore all the time. Gregory writes:
I would like to express further concern regarding our family's electricity and gas bill. It has skyrocketed—
Perhaps it has tripled.
—while our usage has remained the same...We have no option other than to pay, as we can't let our children freeze in the winter, but we cannot afford this dramatically rising cost. Please use your influence to fight for a regulation of this industry to bring the cost down.
Thank you for your efforts on our behalf. We are growing increasingly horrified by our federal government and appreciate your efforts to stand up for us.
From Alicja Siekierska's article, the MNP survey:
also found that 45 per cent of respondents say it’s becoming less affordable to pay for transportation, up nine percentage points from last year, and another 45 per cent say it is becoming more difficult to pay for clothing and other household necessities, an increase of five percentage points from last year. Paying for housing is also a challenge for many Canadians, with 37 per cent saying it is becoming less affordable....
At the same time, Canadians are finding it more difficult to save. The survey found that 49 per cent say it’s becoming less affordable to put money aside for savings, up five percentage points from last year.
Canadians, as the Conservative leader has pointed out, are putting more of their paycheques toward paying for basic necessities as the cost of living rises, which is, in turn, leaving less of a financial buffer to manage the impacts of current and potential future interest rate hikes. Again I hear from my constituents about this. Cindy wrote that she is worried about supply chains, “This is directly impacting our jobs and has been for 12+ months now.” The government has had lots of time to respond to this as well. She continues, “The impact of supply chain issues is going to become such a global tragedy very soon.”
As for the rising cost of living, she lists exactly the things we have been talking about in the House, “Heating, gas, food, housing — all four areas are of concern for our home. The increase in overall federal tax is criminal. They have misspent billions of taxpayer dollars and it is a feeling of helplessness to the average Canadian.” Regarding a “tax on sale of home”, she says, “Again, this is criminal for the federal government to even consider this as an option”—which it has flirted with doing—“due to their lack of fiscal management. Someone has to stop these decisions.”
I can say that my Conservative colleagues and I are here to stop these decisions. Along with Diane Francis, Alicja Siekierska, and my constituents Gregory and Cindy, we say to the Liberal government, “Government, get out of the way.”
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Madam Speaker, I will be splitting my time with the hon. member for Pickering—Uxbridge.
I rise today in support of Bill C-30, the cost of living relief act, no. 1, which would double the goods and services tax, or GST, credit for six months. It is one of the new measures we are proposing to provide targeted support to Canadians who need it the most so we can help them adapt to the rising cost of living without, however, exacerbating inflation.
Our government is fully aware that Canadians are feeling the effects of inflation, especially when they fill up at the pumps or buy groceries, for example. Inflation is a worldwide phenomenon largely driven by the effects of the pandemic, amplified by the zero-COVID policy in China and Russia's illegal invasion of Ukraine.
Although inflation is not as high here as in several other countries and it has come down from its peak in June, we know that Canadians are worried. No single country alone can solve the problem of high global inflation. However, what we can do is help Canadians by taking tangible action to make life more affordable here at home. This brings me to Bill C‑30, which seeks to double the GST credit for six months.
Our proposal to double the GST credit for a six-month period would provide an additional $2.5 billion in targeted support for about nine million people living alone and nearly two million couples. In total, 11 million individuals and families who are already entitled to the tax credit would receive it, including roughly half of Canadian families with children and more than half of all seniors in Canada.
The GST credit is a tax-free benefit paid out every three months. It helps low- and modest-income individuals and families recoup the GST they pay. Canadians are automatically considered for this credit when they file their income tax returns and are eligible for it if their income is below a certain threshold. The measure we are proposing would benefit those who already qualify for the credit, and the help would be tangible.
In practical terms, single Canadians without children and single seniors, for example, would receive up to $234 more than they do now. Couples with two children, for example, would receive up to $467 more. A single parent with one child would receive up to $397 more than expected.
These additional amounts would be paid before the end of the year as one-time lump sum payments to current recipients through the system already in place. Recipients would not have to apply for the additional payments. All they have to do is file their 2021 tax return.
Bill C‑30 is part of the new suite of measures we are proposing to help Canadians. Another part is found in Bill C‑31, which I hope we will soon have the opportunity to debate.
This other bill proposes, for example, to create a Canadian dental benefit. This temporary measure would be offered as early as this year to children under 12 who are not covered by private dental insurance. Families could receive direct payments of up to $1,300 per child over the next two years, or $650 a year, to cover the cost of dental care. This benefit is the first step in the government's plan to offer dental care to families with an adjusted net income of less than $90,000 a year.
Bill C‑31 also proposes a one-time top-up to the Canada housing benefit. This would allow 1.8 million renters who are struggling to pay their rent to receive $500. It is another measure that I hope we will soon have the opportunity to approve.
Our government supports Canadians who are most vulnerable to an increase in the cost of living in a way that does not needlessly fan the flames of inflation. That is the danger in an inflationary crisis.
The incremental cost of new measures included in Bills C‑30 and C‑31 is $3.1 billion. That is only 0.1% of our gross domestic product. Therefore, we are proposing to strike a balance between fiscal and financial responsibility and compassion for those who truly need help.
In conclusion, what Bill C‑30 proposes is in addition to measures we have already announced as part of our plan to make life more affordable for Canadians.
First, the enhanced Canada worker benefit will provide three million Canadians with more support. For example, a couple could receive up to $2,400 more this year, while a single person could receive up to $1,200 more.
Second, agreements have been signed with the ten provinces and three territories. This will cut in half the cost of day care for Canadian families by the end of the year. This pan-Canadian initiative will result, for example, in savings ranging from $2,610 in Manitoba to $6,000 in British Columbia. For 2022, in the province of Quebec, which already has its own day care system, the government's plan will help create approximately 37,000 new day care spaces.
Third, we increased old age security for seniors aged 75 and over by 10%. This measure benefits more than three million Canadians and provides additional benefits of $766 for full pensioners in the first year.
Fourth, all major government benefits are indexed to inflation, including old age security, the guaranteed income supplement, the Canada pension plan, the Canada child benefit and the GST/HST credit. This means they are adjusted for increases in the cost of living.
Fifth and sixth, providing dental care to Canadians and making a one-time payment to renters who are struggling to pay for housing are two of the measures included in Bill C‑31, which we will be debating soon; I hope all members of the House will support it.
This is all in addition to other investments our government has made since 2015. I strongly believe in making life more affordable for Canadians, and especially in helping those who are most in need. That is exactly what Bill C‑30 does, and I urge all members to vote in favour.
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Mr. Speaker, I thank my colleague for her interesting question. I think countries are asking themselves very important questions about the climate crisis.
The official opposition keeps harping on about the carbon tax. Our goal here, in the midst of the global inflationary crisis, is to focus on helping those hardest hit.
With respect to the carbon tax, the provinces have the power to give it back to people, and we hope they will work together to do that. Nevertheless, Bill C‑30 and Bill C‑31 are a balanced approach to helping people in a way that does not exacerbate inflation. I hope all members will support this bill.
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