44th Parl. 1st Sess.
October 20, 2022 10:00AM
- Oct/20/22 12:34:49 p.m.
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Madam Speaker, I thank my colleague for his question.
I think it is very clear that we made those promises in a specific context. Right now, we are in the middle of a crisis because of the rising inflation rate, which is driving interest rates up. We need rapid, concerted action to support the entire Canadian population, especially in rural areas.
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- Oct/20/22 3:01:19 p.m.
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Mr. Speaker, Haiti has asked for international assistance to combat the current crisis. Since then, politicians and the corrupt financial elite have only ramped up their scheming, and gangs continue to terrorize the people of Haiti.
Can the Minister of Foreign Affairs tell us how Canada intends to respond to this plea for help?
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- Oct/20/22 5:05:51 p.m.
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Madam Speaker, the current inflationary crisis is affecting everyone and putting millions of households in hopeless situations. Families must make agonizing choices to be able to continue making rent or mortgage payments. Many low-income Canadians are cutting back on food and going hungry. The same is true for many middle-class households that are heavily in debt. Such a huge increase in prices, especially for food, energy and housing, creates considerable hardship, and that is not something to take lightly. My thoughts are with the millions of seniors who were already struggling to make ends meet before prices started going up. They are now facing an impossible task, making choices or making cuts to their budgets.
The inflation crisis is one of the most worrisome issues in the world, and I commend those who are trying to address it and find solutions.
As members know, the current increase in prices we are experiencing is essentially a global phenomenon and analysts generally agree that the situation is primarily attributed to a decrease in aggregate supply. The supply chain problem led to a significant drop in supply. It is the same thing with the war in Ukraine. Crop failures due to droughts or floods are also reducing supply in the food sector. Labour shortages, which existed before the pandemic but have gotten worse since, are limiting business activity, leading to a decrease in total supply, and so on.
On the demand side, we have seen more of a change than a significant increase in demand. During the pandemic, people shifted their usual consumer choices to new sectors. Supply was unable to adapt quickly enough, so we saw new price increases and often shortages, resulting from the imbalance.
We are seeing the same type of imbalance in the real estate market, where the construction of new housing is insufficient to meet demand. Inflation in that sector is also being spurred by the labour shortage and the increase in the price of building materials, which is itself explained by the current inflationary situation and the change in consumer habits during the pandemic, not to mention the impact of the war.
Even though the central bank's injection of money into the economy and the government's support to maintain consumer spending during lockdown were more generous than necessary, because they were not always well targeted, the effect of those interventions on the increase in global demand and on prices is generally secondary. The government's actions are not the main reason for the global inflationary crisis.
Unfortunately for us, and especially for those impacted the most by the current rate of inflation, there is no simple solution to a decrease in aggregate supply. The best solution is to support businesses as they adapt to the new reality. It is a long and complicated process, but as I said, even if the effect is not felt immediately, it is the best solution.
For example, let us look at the labour shortage. The government could provide support for the automation of some economic activities. The government could also change the tax system to entice young retirees who want to remain in the labour market, perhaps with part-time work. The government could provide support for companies that invest in resilience, for example by making decisions that cut their energy consumption. The government could also do this for households, of course. That is the primary solution for addressing the supply side of the issue. Unfortunately, this government is doing very little about it.
It is said that the central bank is well positioned to use monetary policy to counter inflation. The Bank of Canada must ensure that the overall economy is in good shape. To that end, its main policy objective for the past 30 years has been to keep the average annual increase in prices within a range of 1% to 3%. As we know, we are well past the upper limit now.
Although the central bank is extremely well equipped to control inflation when the economy is overheating because of an increase in demand, the situation is very different in the event of a decrease in supply. That is because successively raising its key interest rate does not allow the central bank to influence supply. It simply reduces demand.
In other words, since production is insufficient to meet demand, equilibrium prices rise. All the Bank of Canada can do is lower demand to reduce the price increase. However, at the end of the day, there are not more goods and services available, only less room to manoeuvre and borrow to make consumption or investment choices.
The risk of such a monetary policy is that if we are not in an overheated situation when the policy is implemented, the central bank's action could also slow down the economy or even plunge it into recession.
Again, there is not much that either monetary or fiscal policy can do to respond to a supply crisis. These policies aim to reduce demand in order to lower prices, but they do not allow for increased production in the short term.
I want to reiterate that the best government policy is to support businesses and help them adapt and become more resilient in order to push supply back up, even though that does not happen automatically.
We should also take advantage of the current situation to accelerate the shift to a green economy. We can kill two birds with one stone. The government's response to the current crisis must be tied to the goal of reducing pollution.
I also want to reiterate that we need to avoid falling into the very tempting trap of responding to a decrease in supply by giving everyone money. That kind of policy may appear to meet people's needs, but it will quickly fuel inflation. It is therefore a futile, ineffective policy, especially if it drives society as a whole into debt. It is a good solution, but not for a supply-side crisis. In the same vein, the inflationary crisis should not be an excuse to shirk our much-needed climate change commitments.
I would like to remind the House that the federal carbon tax does not apply to Quebec, which has its own approach using a carbon exchange. I would also like to remind the House that very few households in Quebec heat with oil. They heat mainly with electricity, which is renewable.
Finally, let us not forget that the provinces, such as Newfoundland, are free to set up their own environmental plan and can choose to waive taxes on home heating fuel. Provinces like Newfoundland that are fortunate to have significant hydro power capacity can also offer incentives for people to switch from oil to electric heat.
Finally, with respect to the current inflationary crisis, again, there are no simple or easy solutions. We can help companies pivot. We also have a moral obligation to help the most vulnerable people and the hardest-hit sectors cope. Think of individuals and households with low incomes. Think of seniors who depend on small, non-indexed pensions. Think of sectors that are bearing the brunt of inflation, such as agriculture.
The European Central Bank's chief economist reminded us that a good way to fight inflation is to redistribute wealth rather than go into debt to support households and individuals. This means targeted measures for the less fortunate financed by a special tax on the wealthiest. Let us seriously consider that suggestion. The one thing we must not do is react to the crisis by once again abandoning our efforts to fight climate change.
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- Oct/20/22 7:21:12 p.m.
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Madam Chair, we know the mental health crisis has been referred to as the parallel pandemic. This House has not had a debate on how to respond to this. Earlier this month, I rose and sought an emergency debate on Canada’s mental health crisis, but unfortunately it was denied.
I want to thank the minister, as she acknowledged tonight we have never had this conversation about mental health until tonight and we have never had a proper debate. I want to thank the Conservatives and the Bloc and their House leaders for agreeing to have this important conversation, because it took all parties to agree to do this take-note debate.
Over the last two and a half years, the mental health of Canadians has been negatively impacted by the loss, social isolation and financial strain the pandemic has brought. We all have constituents struggling with their mental health, and many of us have loved ones who are as well. My good friend from Vancouver Kingsway always says that there is not a family not touched by the mental health or substance use crisis in this country.
I really want to thank my colleague from Cariboo—Prince George for sharing his personal story about his brother Kevin and his brother-in-law. We hear those personal stories from our constituents every day as parliamentarians, and it is painful to hear.
We know we are going into a period where we are seeing a lot of impacts right now on people's health. The cost of living is rapidly rising and likely we are going to see a recession. The stress Canadians are facing has not abated. Just yesterday, the Minister of Finance warned Canadians of difficult days ahead and suggested the federal government might not be there to help.
Now more than ever we must recognize that mental health is health, and we need to take steps to ensure Canadians have equitable access to the services they need. This month, the Mental Health Commission of Canada and the Canadian Centre on Substance Use and Addiction released a joint report on the continuing impacts of the COVID-19 pandemic on the mental health of Canadians, which detailed some alarming findings.
According to polling conducted for the report, 35% of respondents reported moderate to severe mental health concerns. We see that as parliamentarians. It also found that fewer than one in three people with current mental health concerns accessed services. That is alarming. The report identified key barriers to accessing services as “financial constraints, not having readily available help, not knowing how and where to get help, and long wait-lists.”
The report identified financial concerns as a top stressor during the pandemic and discussed the links between income and unemployment with mental health concerns. Given the current economic forecast, there is a real risk the mental health and substance use crisis will worsen in the months ahead. That is scary. As my colleagues have identified, 10 Canadians die a day from suicide and 21 from a toxic overdose.
We also know health care workers and first responders have been raising the alarm that our health care system is under tremendous pressure. Unfortunately, too many people struggling with mental health issues are left with nowhere to turn but crowded emergency rooms. A worsening mental health and substance use crisis will only push our health care system closer to collapse.
It is clear we need to make sure people can get help in their communities before they are in crisis. While there are many great organizations working hard to support Canadians struggling with mental health issues, we know they are running on fumes. The demand for mental health services has increased since the onset of the pandemic, but that demand cannot be met under the current system when frontline organizations are having to worry about keeping the lights on. They need help and they need help now.
We need system change that will finally bring mental health care fully into our universal public health care system once and for all. We need sustainable funding to ensure all Canadians have access to services when they need them.
In the last election, the Liberals made a promise to Canadians that they would take steps to improve access to mental health care in Canada. A cornerstone of the Liberals’ promises on mental health was to establish a new permanent transfer to the provinces and territories to expand publicly funded mental health care and address backlogs. Canadians were told an initial investment of $4.5 billion over five years would be made in the Canada mental health transfer.
Now, $250 million of that funding was supposed to be delivered in 2021-22, with an additional $625 million in 2022-23. To date, of that money, no funding has been delivered. There has been no transparency from the government on when the money would get out the door.
Last week the Canadian Alliance on Mental Illness and Mental Health, with the support of 65 organizations from health and allied sectors, wrote an open letter to the minister expressing concern about the delay in establishing the mental health transfer and calling on the government to take immediate steps to fulfill this important and critical campaign commitment.
The minister has taken the position that national performance standards must be developed prior to the creation of the Canada mental health transfer. However, the open letter I referred to demonstrated there is a clear consensus from the mental health community that the development of these standards should not delay the Canada mental health transfer. There is an urgent need for increased mental health services in communities right across the country. Wait times for publicly funded mental health services are unacceptably long.
In Ontario, where we are right now, there are more than 28,000 children on wait-lists for community-based mental health services. The wait could range from 67 days to more than 2.5 years, depending on the service, exceeding clinically appropriate wait times. For children and youth, delays in accessing care could have lifelong impacts for them, their family and society. Tragically, it could also be a matter of life and death.
According to Stats Canada, suicide is the leading cause of death among youth and young adults aged 15 to 34. This has touched my life and those of many people here in this chamber, as we have discussed tonight. UNICEF has reported that Canada has one of the highest rates of youth suicide in the world. We heard my colleague from Nunavut just two days ago share that tragic story of someone who could not find housing. This is unacceptable in a wealthy country like Canada. It is preventable.
For those struggling with substance use disorders, waiting could also be a matter of life and death. Across Canada the average wait time for adult residential treatment for substance use is 100 days. Every day that someone must wait for access to treatment or harm reduction services, they are put at risk because of the toxic drug supply.
The Canada mental health transfer would provide an infusion of money for services that could save lives now. It is urgently needed, but there is other critical work that must be done to transform mental health here in Canada. Beyond the mental health transfer, mental health advocates have been long calling for legislation to enshrine law parity between mental and physical health.
Last month I tabled private member's Motion No. 67, and I hope my colleagues will second it, calling on the government to finally develop that legislation and urgently fulfill its promise to establish the Canada mental health transfer. I hope all members of the House will recognize the crisis we are in and support these urgently needed calls to action.
Untreated or inadequately treated mental health carries significant social and economic costs. The Mental Health Commission of Canada estimates that mental health issues and illnesses cost Canada at least $50 billion a year, not including the more than $6 billion in lost productivity.
Relative to the disease burden caused by mental health and compared to our G7 and OECD peers, Canada is underspending on mental health. France spends 15% of its health care budget on mental health, whereas the U.K. spends 13%. Canada, depending on the province or territory, spends between 5% and 7%. We are falling way short.
For the well-being of Canadians, for our economy and our communities, mental health cannot wait. It is time to invest in the care Canadians deserve, and to truly treat mental health like health. We need to listen to the experts. We need to listen to the expert task force on substance use. We need to listen to the 67 organizations. I hope that together we can do that.
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- Oct/20/22 7:40:44 p.m.
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Madam Chair, I think back to the community in my riding that was going through that crisis. It did not have mental health supports in place and was desperate. When I came here, I had to beg to get a mental health support worker for one year. The federal government and the minister at the time said it was not their problem and that it was the province's problem, but I explained that it was the minister's problem as she writes the cheque to the First Nations Health Authority in British Columbia. I asked her to pick up the phone, which she did, and it helped, but it is not enough.
We need to listen to communities. We need to provide the resources for healing, and we need to ensure that there are mental health supports in community. We need to listen to them. That is part of reconciliation.
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- Oct/20/22 7:59:01 p.m.
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Madam Chair, I appreciate my colleague, whom I work closely with on the committee. We are in a crisis in this country. No family or community has been left untouched. As many have mentioned tonight, dozens of Canadians die every day as a result of the mental health and addictions crises. This is a crisis that has had a profound impact on so many families and so many communities.
The government acted so promptly for the banking sector when COVID hit, with $750 billion in liquidity supports. However, for this mental health crisis, which is an acute crisis that is killing Canadians, we have still not seen the Canadian mental health transfer. Why is the government so slow to provide those vital supports that so many Canadians need when it was so quick to meet the needs of bankers and the banking industry?
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- Oct/20/22 8:37:20 p.m.
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Madam Chair, my question is around why we have seen such a delay. If this is such a crisis, if we have known about it for so long and the recommendations have been made, why does the member opposite think it has taken so long to do anything or take any action related to mental health?
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- Oct/20/22 10:17:52 p.m.
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Madam Chair, I am always so grateful for my colleague's incredible advocacy on housing. She is also our critic in our caucus for immigration.
One of the things I am constantly hit with in my riding are folks who are dealing with mental health issues and who are desperately trying to turn to family who may live in another country. Unfortunately, because of a lot of the problems we are seeing in our own immigration system, they cannot have family visits and they cannot go and visit. It is soul crushing. I find it cruel to keep families apart.
Could the member briefly describe some of the fixes that we have been putting forward and some of the things she has seen in the relation to that, and how that impacts the mental health crisis that we are talking about today?
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- Oct/20/22 10:18:41 p.m.
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Madam Chair, there is no question that our immigration system is actually in crisis. It is in complete chaos, and processing delays are keeping families apart. It is costing people both their physical and mental health.
What the government has to do is cut the red tape. We could actually regularize people. We could streamline the processes. We could make sure that those who have long wait times in the processing delays are processed expeditiously. That means additional resources in the system and cutting the red tape to find efficiencies.
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