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House Hansard - 109

44th Parl. 1st Sess.
October 6, 2022 10:00AM
  • Oct/6/22 6:42:56 p.m.
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Madam Speaker, Canadians know that climate change is real. Canadians also know that climate action is hard. In Canada and around the world, climate action is no longer a matter of political debate or personal conviction. It is an existential challenge. That means it is also an economic necessity. Our climate plan is driven by our national price on pollution, the smartest and most effective incentive for climate action, and by a new Canada growth fund, which will help attract the billions of dollars in private capital that we need to transform our economy at speed and scale. Smart climate investments today are good for Canadian workers, good for the Canadian economy and good for the planet. With the largest mobilization of global capital since the industrial revolution already under way, Canada has a chance to become a leader in the clean energy of the future. Climate change is the greatest long-term threat of our time. Taking action on climate change is the greatest opportunity for our economy, and we can create well-paying sustainable jobs across our country. Carbon capture, utilization and storage is about reducing emissions. CCUS also plays a critical role in Canada's economic and environmental future as we strive to meet our objective of net zero by 2050. However, I want to be clear that it is not the only tool to be used; it is one of the tools in our tool box. In budget 2021, our government proposed an investment tax credit for CCUS projects with the goal of reducing emissions by at least 15 megatonnes of CO2 annually. Then, after consulting with the public, stakeholders and the provinces on the design of the investment tax credit for CCUS, budget 2022 proposed a refundable investment tax credit for businesses that incur eligible CCUS expenses, starting in 2022 to contribute to our goal of cutting greenhouse gas emissions by 40% to 45% below 2005 levels by 2030. The new investment tax credit is intended to be available for a broad range of CCUS applications across different industrial subsectors, such as concrete, plastics and fuels. They include blue hydrogen projects and direct air capture projects. It is not intended that the tax credit be available for enhanced oil recovery projects. A CCUS strategy for Canada will ensure Canada is well positioned to enable meaningful climate action, to ensure we create well-paying sustainable jobs for communities and people and to support a more circular economy.
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  • Oct/6/22 6:45:38 p.m.
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Madam Speaker, I am not sure that addressed anything I talked about in my points here today. We are talking about moving forward with a regime that matters to the world and that actually matters to our economy and environment more than anything else, yet the government stalled on it. It has been stalled, for as long as I have been in Parliament, on moving forward with decarbonization mechanisms. The government has all kinds of programs, none of which are effective at decarbonizing our economy, but this is a pretense, and a pretense it continues to hold. I will note another pretense, from a document the Minister of Environment and Climate Change put out this summer: “Options to cap and cut oil and gas sector greenhouse gas emissions to achieve 2030 goals and net-zero by 2050”. It is a discussion document. That discussion document is effectively premised on the government saying that it had guiding principles that were brought forward by the Standing Committee on Natural Resources, of which I am a member. I assure the House that it is a pretense. Our committee never brought that forward. This document is premised on a lie, and the government has to address that.
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  • Oct/6/22 6:46:35 p.m.
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Madam Speaker, our government is committed to making smart climate investments to reach net zero by 2050 and build a stronger, more vibrant economy for all. Canadians understand quite well that without a serious climate plan, Canada has no economic future. Our government will help Canada continue to lead in global efforts to fight climate change, to protect our nature and to build a clean economy that will create the well-playing and sustainable middle-class jobs of today and tomorrow.
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  • Oct/6/22 6:47:07 p.m.
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Madam Speaker, a couple of weeks ago I asked the government if it would commit to cancelling its planned payroll tax increases, which will shrink paycheques starting on January 1. In response, the government admitted that some Canadians may be struggling with the high cost of housing, but it went on to do what it always does. When asked about the affordability crisis in housing, it patted itself on the back for its half-baked plans for the one-time payment it is proposing, which will be equal to about one week's rent in major Canadian cities. We are in the throes of the worst inflation in 40 years, while an entire generation of Canadians gives up on the dream of owning their own home. My specific question arose from a conversation I had with a former business colleague in Calgary who told me about the price jump in a particular condo development. It occurred to me that when we consider the price increase and also factor in the recent and predictable spike in interest rates resulting from the government's deficits and facilitated by printed money, as well as its increase on property taxes, condominium fees and heating costs, which are also rising, the income necessary to qualify for this basic, bare, entry-level condominium had nearly doubled in one year according to the formula used for mortgage qualification by lending institutions. This is heartbreaking for young people. Too many young people think they will never be able to move out of their parents' homes. Too many people wonder if they will ever afford anything beyond a tiny apartment. Too many young people despair over whether they will be able to start their own families, and the government offers no solutions. It offers only a commitment to shrink Canadian paycheques by increasing payroll taxes, shrink the purchasing power of the money Canadians have left after tax by tripling the carbon tax, and shrink the value of any savings they might have by continuing to fuel inflation. The current cost of living crisis was a long time in the making. The government added $100 billion to the national debt before COVID, squandered the balanced budget it inherited from the previous government and broke all of the 2015 election promises upon which it was elected during a time of a booming world economy. It allowed structural deficits to creep back into Canadian public finances, undoing 20 years of fiscal prudence instilled by both the previous Conservative government and the Chrétien-Martin government before it. Then COVID hit. It added hundreds of billions of dollars more in further debt for $200 billion in new non-COVID spending, funded with printed money, triggering a spiral of rising costs, rising interest rates and a rising level of debt servicing costs. If the government wants to give young Canadians hope for a future with a home they can afford, it will have to stop making things worse. It has to get serious about dealing with the barriers that prevent housing construction from meeting housing demand. It has to get serious about economic growth resulting from real people building real things that supply real services to real consumers, not the crony capitalism that has crept into the government in everything from its infrastructure bank to its supercluster system and corporate giveaways. It can stop the planned payroll tax increase. It can stop the planned tripling of the carbon tax, which increases the price of food, transportation and home heating. Canadians cannot afford higher prices and higher taxes with smaller paycheques.
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  • Oct/6/22 6:51:11 p.m.
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Madam Speaker, we are seeing higher inflation rates and higher costs of living in Canada and, frankly, right around the world as a large result of many factors, which include the war in Ukraine; global supply chain bottlenecks, in large part due to the pandemic; and global energy market uncertainty. This is something our government is concerned with, and I can reassure my colleagues that we are working on solutions to support Canadians day in and day out. Canadians are facing the pressure when they reach for items at the grocery store and when they pull into a gas station. However, inflation is actually less severe here than it is among many of our peers. It was 7% here in August, while it was 8.3% in the United States, 9.9% in the United Kingdom, and 7.9%. in Germany. We recognize the challenges. The opposition would like us to drop the GST on gasoline and get rid of our pollution pricing system. Quite frankly, this would be a terrible idea. It makes much more sense to support Canadians who need it the most with targeted measures, such as those included in our $12.1-billion affordability plan. Gas taxes represent only a small portion of the total price that Canadians pay at the pump, so cutting them would be ineffective in protecting consumers from powerful global market forces. It is important to understand that these market forces are driving daily changes in gas prices that are often substantially greater than the proposed 5% tax cut. This means that any positive impact on the price of gas would be wiped out in a day. The government would also be in the uneasy, unfortunate position of having spent tens or hundreds of millions of dollars trying unsuccessfully to fight market forces over which it has little control. Putting a price on pollution is the most effective and least costly means of reducing greenhouse gas emissions. It is important to note that Canada's approach is flexible. Any province or territory could design a pricing system that meets its needs, as long as it meets the federal benchmark. The federal backstop only applies in jurisdictions that do not have a pricing mechanism that meets the federal benchmark. The federal fuel charge is part of this, and one thing is clear, it does not make life less affordable for the large majority of people. In provinces that do not meet the federal benchmark and where the federal fuel charge has been implemented, approximately 90% of direct proceeds are being directly returned back to households. In 2022-23, these climate action incentive payments mean that a family of four would receive $745 in Ontario, $832 in Manitoba, $1,101 in Saskatchewan and $1,079 in Alberta. In addition, families in rural and small communities are eligible to receive an extra 10%. The reality is that, as part of the climate action incentive payments, most households are getting back more in payments than they pay in increased costs from the federal carbon pollution pricing system. Also, dropping the federal fuel charge in these provinces would mean smaller climate action incentive payments going back to the individuals in those backstop provinces. It would mean less money in the pockets of many people, including those living in the member opposite's own riding.
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  • Oct/6/22 6:54:39 p.m.
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Madam Speaker, tonight we see a continued doubling down on the same points we have heard from the government. I did not hear much about housing in that response, even though that is really what the question we are debating tonight was centred on. We see the same old splitting of hairs over whether or not Canada's inflation crisis is really the worst among peer countries. Other countries that engaged in destructive financial practices, which ran enormous deficits on printed money, are also suffering the same effects that we are having here in Canada. Tonight, yet again, we have a defence of the carbon tax and the claim debunked by the Parliamentary Budget Officer that the majority of people are somehow better off with this tax.
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  • Oct/6/22 6:55:45 p.m.
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Madam Speaker, our government understands quite well that Canadians are feeling the effects of elevated inflation, particularly at the gas pump and when they reach for items at the grocery store. However, dropping taxes on gasoline is simply not the right solution. We have developed an affordability plan that provides more money to Canadians who need it the most when they need it the most. Our plan is a suite of targeted measures in new support in 2022. In fact, some of our measures are already putting money back in the pockets of the middle class and those working hard to join it this year. Canadians can count on us to continue to support them through this inflation crisis while remaining prudent fiscal managers.
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  • Oct/6/22 6:56:27 p.m.
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The motion that the House do now adjourn is deemed to have been adopted. Accordingly, the House stands adjourned until tomorrow at 10 a.m. pursuant to Standing Order 24(1). (The House adjourned at 6:56 p.m.)
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