44th Parl. 1st Sess.
November 1, 2022 10:00AM
- Nov/1/22 10:21:45 a.m.
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Madam Speaker, from scandals to failed programs, spending Canadians' money is a favourite pastime for this costly coalition. In the lead-up to the COVID-19 pandemic, the Liberals had already added an additional $110 billion to Canada's debt. That alone should have raised the alarm for any reasonable members across the aisle, but obviously it did not.
Instead, the money printers kept rolling to the tune of half a trillion dollars of new debt during the last two years, over half of which was not even COVID-related spending. In the last five years, overall government spending has increased by 44% while the size of an already inflated bureaucracy has just kept growing.
The Liberals dragged out their measures longer than any of our other allies when it came to COVID restrictions, using political science instead of real science. Countries with lower vaccination rates reopened faster and they removed barriers to business and tourism. Those countries did not persecute their citizens for making personal choices. Meanwhile, in Canada, we remained restricted to much of the world as the Liberals continued spending on random testing, forcing Canadians into quarantine and keeping loved ones apart.
ArriveCAN is exhibit A of the government's failed drawn-out COVID policies. At $54 million, one would expect an app that could not only do what it was promised to do but that would prevent disruptions to people's lives by making it easier to travel. What taxpayers got instead was an app that failed at nearly every turn. ArriveCAN turned out to be arrive scam.
Because of one glitch, over 10,000 healthy, fully vaccinated people were forced into government-mandated quarantine. Those who did not comply received threatening emails, phone calls and even visits from law enforcement. Travellers entering Canada were even fined because of the app. Seniors were threatened with $5,000 fines if they did not have the app, even when they did not own a phone.
After over 70 updates, the app still failed and never lived up to the tens of millions of taxpayer dollars the Liberals forked over. This is money that, it turns out, cannot even be accounted for. CBSA originally said that ThinkOn received a $1.2-million contract related to ArriveCAN. That was news to the company, which said it does not provide the mobile QR code scanning and verification services that CBSA said it paid ThinkOn for, and the company never received payment from the Liberals.
Now CBSA is saying that Microsoft received the $1.2 million. While the government figures out where it was spending all this money, Canadian developers were proving how big of a waste of money arrive scam really was. It took the CEO of a Toronto technology company and his friends a weekend to clone the app and show how fast and cheap it would be to build. In all, it should have taken two days and cost $250,000 to build the junk the government paid $54 million to create.
This is a symptom of a more significant problem. It again shows Liberal misspending is costing Canadians. Since taking office, the Prime Minister has had misspend after ethics violation after scandal. All of this was at taxpayers' expense. From vacations on private islands to politically interfering in the prosecution of SNC-Lavalin, resulting in the Prime Minister firing two strong women cabinet ministers, he has proven himself not to be trustworthy. It again showed when he gave the federal contract to the WE Charity to administer the almost billion-dollar Canada student summer grant program.
Liberal misspending also extends beyond arrive scam. My colleague from Calgary Nose Hill recently received a response to her Order Paper question, where we learned that the estimated cost to run the random testing at airports was at least $411 million. That was half-a-billion dollars spent on random testing in the year they were shutting it down. This spending was on top of the $150 million the Liberals gave to their old friends at SNC-Lavalin for field hospitals that were not even used. The government gave another $237 million to a former Liberal MP for ventilators that were not even used.
Even before the pandemic, the Liberals spent $12 million on new fridges for Loblaws while small businesses received higher carbon and payroll taxes. There is also the $35 billion the government spent on the Infrastructure Bank, a bank that has done nothing to help build infrastructure in Canada. Instead, this bank spent $5.7 million in short-term bonuses to 79 employees in the past five years.
There are so many other things that $35 billion could have been used for, such as addressing the housing supply shortage to prevent home prices from soaring, building energy projects to keep gas and home heating bills down this winter, and finally connecting rural Canadians to the Internet and stable cell service. Instead of showing fiscal restraint, the Prime Minister has spent and spent, and Canadians are the ones who have to pay the price.
The tourism industry, before the pandemic, was valued above $100 billion and now is down to $80 billion. After spending $54 million, we have clogged up airports and delivered a massive hit to one of Canada's largest industries, which has cost us jobs and businesses.
It is not just tourism. The inflationary spending of the government has meant higher prices, while failed policies like the carbon tax and cancelling energy projects mean more dollars chasing fewer goods. That is just inflation.
Our agriculture sector is hurting as farmers, ranchers and other food producers cannot afford to run their equipment, heat their barns or buy feed for their livestock. The energy sector continues to get squeezed by “leave it in the ground” policies and the tripling of the carbon tax.
What this means for Canadians is less money in their pockets and impossible choices between heating their homes or putting food on the table. Among Canadians, one in five are cutting back on meals or skipping them altogether. In one month alone, 1.5 million people visited a food bank in this country, and one third of them were children.
Home and rent prices are out of reach for too many Canadians and their families. Instead of addressing inflation, the government has forced the Bank of Canada to raise interest rates, making mortgages even more expensive. Meanwhile, the Prime Minister spent $24,000 in four nights on a hotel in London, the same amount that an average rent of one year costs here in Canada.
The situation is desperate for Canadians, who are doing what they can to save money however they can, yet they look at the government and see wasteful spending and scandals. It truly is more critical than ever for the government to respect taxpayer dollars and eliminate unnecessary spending, such as the arrive scam app.
I rise today to support this motion to have the Auditor General conduct a performance audit on ArriveCAN. It is time that Canadians get to see where the payments really went, who really got the contracts and sub-contracts, and whether, in the end, the Prime Minister was telling the truth.
The arrive scam app is a symptom of the larger problem. Canadians cannot afford any more of the costly coalition. They are out of money, out of patience, and done with this. Liberals need to stop the pain, stop the carbon tax, stop spending and stop raising taxes.
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- Nov/1/22 1:09:31 p.m.
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Madam Speaker, this motion is about an application that was supposed to cost $80,000, but instead ended up costing $54 million. Furthermore, a group of experts said that they could have created this app for $200,000 in a weekend.
What this app represents is so much more than the app itself. It represents the level of government bloat we have come to see under the costly coalition. It represents the lack of transparency that we have come to expect from this coalition. Most of all, it reflects the serious situation that Canada finds itself in now of inflation, and the cause is inflationary spending.
As we know, the bank rate started this year at 0.25%. It recently jumped to 3.75%. It is true that some external factors have contributed to this rate hike. Of course, there is the oil price spike, which began with the recovery of demand after COVID and was made worse by Russia's invasion of Ukraine. That was one of those external factors. Also, China's hyper-restrictive COVID lockdowns disrupted international supply chains. However, there has been a consensus that the main reason for this inflation is inflationary spending by this costly coalition.
An article was recently published by one of my favourite economists, Jack Mintz. In it he points to a study of the U.S. Federal Reserve last July. It concluded that countries with the largest-spending binges tended to have much higher inflation rates. Therefore, this is not something that is unique to Canada; it is something that has been seen as a trend, but certainly something of which the costly coalition is guilty.
We know that Canada's headline inflation rate has eased to 6.9% from a peak of 8.1%, but food costs are still accelerating and underlying price pressures remain sticky. At the same time, the Bank of Canada has hiked interest rates by 350 basis points in just seven months, one of its sharpest tightening campaigns ever, to try to force inflation back to what was supposed to be a 2% target. Unfortunately, the bank last week signalled its tightening campaign was nearing its peak, but made it clear that it was not done yet as it hiked rates by 50 basis point to a fresh 14-year high.
The average family will spend $3,000 more next year as a result of these inflationary effects. Food inflation is at a 40-year high. Grocery prices have been raised by 11.4%, and interest rates are going up. Energy costs are up 100% to 150%, some even 300%, and winter is coming of course. Mortgage payments, groceries, fuel and consumer goods have all gone up.
We talk about what other nations are doing. Other nations have managed to fair much better than Canada. Japan, Switzerland, Taiwan and Hong Kong have all managed to keep their rates below 3%. Other nations are providing tax relief to their citizens. Fifty-one other national governments have provided some form of tax relief. That includes more than half of G7 and G20 countries, and two-thirds of the countries in the Organisation for Economic Co-operation and Development. It found that at least 25 countries were choosing to provide tax relief at the pumps. Australia cut its gas tax in half. The United Kingdom announced billions of dollars of fuel tax relief. The Netherlands cut gas tax by 17¢ per litre. South Korea cut its taxes at the pumps by 30%. India cut gas taxes to keep inflation low, thus helping the poor and middle classes.
Instead, the Prime Minister is also choosing to take more money from the pay of Canadians. If people are making $65,000 this year, the federal government is taking nearly $4,500 directly from their pay through the Canada pension plan and employment insurance taxes. Their employers are also coughing up an extra $4,800. This year, the annual payroll tax bill, including employer and employee payments, increased by $818 for each middle-class worker. Over the past decade, seven of which the Liberal government has been in power, it increased by $2,435.
Our peers are choosing to reduce income taxes.
Former U.K. chancellor of the exchequer Kwasi Kwarteng said, “We believe that high taxes reduce incentives to work”, as he announced payroll tax relief.
Down under, the Australian government said that by putting more in their pockets, families would keep more of what they earned, allowing them to spend more on what they needed, as is provided by permanent tax cuts of up to $2,500 for individuals in 2022-23.
Eighteen countries, including Belgium, Germany and Norway, chose to save their citizens money by reducing consumption taxes.
As we can see, many of the nations I have named have made the choice to provide tax relief to Canadians. The costly coalition, the Liberal-NDP coalition, has not chosen that.
The numbers are in. Canada ran a $90.2 billion deficit last year. That deficit is equivalent to almost $2,400 per Canadian and at the rate of $172,000 of new debt for every single minute of the fiscal year. That is not a small amount. It also means that Canada's total debt now stands well north of a trillion dollars. As of March 31, the Government of Canada also had an accumulated deficit of $1.13 trillion.
We wonder where this is coming from. The Auditor General says that there are $500 million in overpayments to civil servants that need to be collected. A new report from Canada's Auditor General said that 28% of civil servants in its sampling had errors in their pay. If a government cannot even handle the payroll, why should it handle our nation's finances or even our country?
Another example of this wasteful spending is the $12 million to Loblaws for new fridges.
Where are Canadians at with this? Forty-seven percent of respondents in a survey of Canadians felt that their finances had worsened over the last year. Fifty-three percent believe that we will be in a recession next year. Even worse, 30% believe that we are in a recession right now.
Canadians have long forgotten the sunny ways of the NDP-Liberal coalition.
The good news is that relief is on the way. Relief is on the way with a Conservative government. We pledge no new taxes. We pledge the “pay-as-you-go” system. For every new dollar of spending, we must find a new dollar of savings.
The motion today is not just about a $54-million application that was supposed to cost $80,000, which experts say could have been made for $200,000; it is about much more than that. It is about how the NDP-Liberal coalition has lost its way and how it needs to stop the taxes and stop the inflationary spending, now.
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- Nov/1/22 5:01:18 p.m.
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Mr. Speaker, $1.3 trillion is where Canada's national debt is now. It is more than double what it was a few years earlier. The Liberal government has more than doubled all the debt that every prime minister in the history of this country has ever accumulated. What has that led to? It has led to the inflationary crisis, the cost of living crisis and a whole host of other issues.
I know what my colleagues in the Liberal Party will say. They will say that they spent this money during the pandemic because they wanted to take care of Canadians. However, there is a small problem in that. It is very clear that 40% of that spending had nothing to do with the pandemic, and they cannot get out of it. This is clear and unequivocal, so they cannot say that they spent all of this money just because of that.
The “arrive can't” app is a great illustration of exactly the kind of spending this government engages in over and over again. It throws money at things without a care or concern for taxpayers. Whether the money is well spent or not, it is just going to spend.
When we look at where we are right now, the Prime Minister said very clearly many times that we took on this debt so that Canadians would not have to, and interest rates would be low for a very long time, so it is not going to affect the fiscal capacity of this country. Well, guess what. He is wrong. I know that is not a surprise, as he is wrong about a lot things. He is also wrong to not think about monetary policy.
When we talk about where Canadians are today, they have massive credit card debt. Actually, right now Canadians have $171 billion of HELOC debt. What is HELOC debt, and why does that matter? HELOC debt is a home equity line of credit, and they are at variable interest rates. Therefore, as interest rates rise, their payments rise, and the ability for Canadian families to make ends meet declines. What we end up with are all the challenges Canadians are experiencing right now, whether it is making ends meet, heating their home, or dealing with the cost of living and inflation.
The Liberal spending binge has caused untoward damage for Canadians, and there has been an other effect as interest rates have risen. The Prime Minister said, in effect, for Canadians not to worry. He said that interest rates were not going to go up, so when we borrowed all of this money, everything would be fine. There was nothing to see there.
Well, guess what. We now spend more money servicing the debt in Canada than we do on the Canada health transfer. I will let that sink in for a minute. When we hear about the issues that are going on in hospitals across the country, and we hear about it all the time, we are spending more to pay interest on the debt than we are on the Canada health transfer. That is the shameful, embarrassing legacy of this government.
Then the government does things like spend $54 million on the “arrive can't” app. Why do I say the “arrive can't” app? It is because it does not work. We know that it does not work. Ten thousand Canadians were put into quarantine wrongly, and I was one of those 10,000 Canadians. I returned home. I was vaccinated. I got my green stamp on my passport, and guess what. The phone calls started the next day telling me I was to be in quarantine.
I said, “No I am not. I am vaccinated. I have done every thing right, and I was told that I was cleared at the border.”
The phone calls kept coming. Sometimes there were 15 phone calls a day to verify that I was at home. I am a big boy. I can take it. I dealt with it. Imagine older or vulnerable Canadians going through that. They would not just say that it is nothing to worry about. They are going to be incredibly traumatized by that experience. When I talk about the “arrive can't” app, that is a great example.
If that were the end of the story, it might have been terrible but not terrible. When I finally did get in touch with someone to speak with someone, the advice was, “Don't answer the phone. We can't take you off the list. It's impossible.” We have more than double the national debt and people have been wrongly put into quarantine and the answer is, “Don't answer your phone.” The phone just keeps ringing 15 to 20 times a day.
I had the real concern that at some point they might say they have to send a police officer, because that happened as well. Imagine the waste of resources across the country as a result of police officers going to enforce quarantine orders because the “arrive can't” app could not do the one thing it was supposed to do.
They might say not to worry because it is fixed and it is all good, that the “arrive can't” app is now fine, but guess what? On Twitter just yesterday, someone we all might know, Robert Fife reported long lineups at Pearson to get through customs. The $54-million “arrive can't” app is supposed to expedite processing through customs but the officer laughed and said the app is irrelevant so not to waste time filling it out.
We have an app that does not work. We have an app that puts people into quarantine when they should not be in quarantine. We have people then subjected to dozens of phone calls, virtually harassing them to be in quarantine when they should not. It does not work and it cost $54 million. What we have heard since then very clearly is that this could have been done for $80,000. If that was the end of the story, that would be bad enough, of course, but it is not. The story just keeps going. There are contractors and subcontractors who are listed as having been paid for the app. They said, “We did not get paid. Why are we on this list?”
I cannot explain properly how terrible that is for Canadian taxpayers, Canadians who are suffering through an affordability crisis, to see the cavalier and callous spending of their hard-earned tax dollars by the Liberal government. The Liberal government does not apologize. It would be one thing if the Liberals got up and said, “We messed up. Canadians, we're sorry. We know this thing was a thousand times more expensive than it should have been. We've learned our lesson. We're going to fix it,” but they do not. Liberals just ask us, “What is wrong with you? How dare you criticize this. This app was designed to save Canadians. You did not want to save Canadians.” The kind of hyperbole the Liberals are engaging in quite frankly is shameful. They should be apologizing to Canadians for this absolute debacle. Of course, we know they will not.
Now we get to the gist of this motion, which is to have the Auditor General come in and audit this. Let us get to the bottom of it. If the Liberals cared about Canadians, if they cared about taxpayer money, if they know they did not do anything wrong, they would say, “Fantastic. Let us have the Auditor General come in.” We have to remember that it was the Prime Minister who said “We will be open by default.” To have the Auditor General look at this program, the Liberals will say, “We are not going to do that.”
That is an interesting definition of open by default. It is the kind of behaviour that the government has repeatedly engaged in. I ask myself and I ask Canadians who are watching today, what do the Liberals have to hide? Why are they afraid of an independent officer of Parliament coming in and looking at the books?
The Liberals say there is a committee and the committee could look at it. Sure. The Auditor General has far greater ability than the committee to analyze this. I go back to what are the Liberals afraid of. They are afraid of exactly that. The Liberals know they cannot filibuster the Auditor General. They know they cannot win votes to not have documents released at committee with the Auditor General. The Liberals know the Auditor General would get in there and find every embarrassing gaffe, every contract and subcontract that should never have been awarded, and it is going to be an absolutely awful day for the government.
The Liberals will stand up and argue all kinds of semantics, that we do not need to look at this, that they would have a committee look at it, or that we should not look at it because it was designed to save Canadians' lives and therefore it should be above scrutiny. None of this makes sense. When there is nothing to hide, the government should be open by default. That is the mantra of the Prime Minister who leads the government.
I do not understand why we are here. Why are we debating this motion? It should have passed with unanimous consent. After the Conservative leader rose to give an impassioned speech about this, with a unanimous consent motion, the Auditor General would have been looking at this, and we would have the answer in no time.
Instead, the Liberals are going to try to delay. They are going to try to find a way to win this vote in the House of Commons. Maybe they will be able to do that as part of their coalition. Maybe they will make some kind of an amendment to the costly coalition agreement, so they can survive scrutiny from the independent officer of Parliament.
Actions speak louder than words. The Liberals' actions in not just saying that we are going to have the Auditor General look into this speaks volumes about what they know the Auditor General is going to find how terribly run this program was, and how embarrassing it is going to be for the government.
Why will the Liberals not just vote in favour of it? Let us have the Auditor General look into the dirty dealings of this contract.
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