44th Parl. 1st Sess.
December 5, 2022 11:00AM
Madam Speaker, I will be quick to suggest that economic stewardship in this place, as parliamentarians, is significant. It is huge. The government has had seven years. From my perspective, it is the captain of a rudderless ship and the rhetoric that I am getting from across the aisle is not working.
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Madam Speaker, for a rudderless ship, I would say we are doing pretty well. The reality is that even when we look at something like Canada's inflationary rate among G7 partners, we have the second best next to Japan. When we look at economic growth, before the pandemic, out of the G7 partners, we were the fastest-growing economy. We are the best positioned to come out of the pandemic. The reality of the situation is, despite the fact that Conservatives might not like to acknowledge it, we are doing quite well, especially compared to our peer countries.
Would the member at least acknowledge the fact that, looking at Canada compared to some of the other countries we compare ourselves to regularly, we are doing a pretty good job?
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Madam Speaker, I would acknowledge there is an example of another Liberal quickly patting themselves on the back for a lack of hard work.
I would like to give some facts. This country is in trouble. Government spending is up 30% compared to prepandemic levels. Next year, debt interest payments will cost nearly as much as the Canada health transfer.
The member across the aisle has suggested their government is doing pretty well. Perhaps he has not spoken to his constituents lately.
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Madam Speaker, I know my colleague is very concerned about the needs of seniors who are feeling pressure because of inflation. Can she tell me what is missing from this economic statement? Can she tell me if she agrees that people between the ages of 65 and 74 should not be entitled to an increase in their old age security? Does she agree with the government's position?
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Madam Speaker, it is undeniable that all Canadians are faced with an extreme amount of economic uncertainty. There is no question that seniors, business owners and families are. No new spending and no new taxes would help seniors and all Canadians across the board.
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Madam Speaker, I followed the debate and I did think extraordinary the amount of patting on the back the Liberals wish to do over this economic statement. I know the member touched briefly on the debt service charges for this year, but in the years to come, according to the statement, by 2029 there will be up to $50 billion a year in interest charges with rising interest rates and endless deficits. Fifty billion dollars is way more than the current health transfer of only $36 billion. That is double the current national defence budget.
Could the member comment on how debt service charges threaten all the programs of the federal government that Canadians rely on?
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Madam Speaker, there is no question the reckless spending of the government is burdening Canadians significantly. It is mortgaging the futures of our future generations. We need to step up. This tax-and-spend government is not sustainable.
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Madam Speaker, I am excited to speak to Bill C-32 today, the bill to implement the economic statement introduced by the Liberal government.
The bill contains 25 tax measures and about 10 other non-tax measures. This may seem like a lot, but a closer look at these measures reveals that they are twofold: minor legislative amendments, and measures that were announced in the spring 2022 budget that were not included in the first budget implementation bill passed last June. Clearly, like the November 3 economic statement, Bill C-32 contains no measures to address the new economic reality of high living costs and a possible recession.
The Bloc Québécois bemoans the fact that this economic update mentions the issue of inflation 108 times without offering any additional support to vulnerable people even though there is a fear that a recession will hit as early as 2023. Quebeckers who are worried about the rising cost of living will find little comfort in this economic update. They will have to make do with the follow-up to last spring's budget. We must denounce a missed opportunity to help Quebeckers face the difficult times they are already experiencing or that are feared for the months to come.
This bill will not exactly go down in history, and its lack of vision does not deserve much praise. However, it does not contain anything harmful enough to warrant opposing it or trying to block it. The Bloc Québécois will therefore be voting in favour of Bill C-32, albeit half-heartedly, and I would like to use the rest of my time to talk about what is missing from this economic statement.
The first big thing missing from Bill C-32 is support for seniors. Still, to this day, Ottawa continues to deprive people aged 65 to 74 of the old age pension increase they need more than ever now. Seniors live on fixed incomes, so it is harder for them to deal with a cost of living increase as drastic as the one we are currently experiencing. These folks are the most likely to face tough choices at the grocery store or the pharmacy. Last week, a study by the Association québécoise de défense des droits des personnes retraitées et préretraitées in partnership with the Observatoire québécois des inégalités revealed that nearly half of Quebec seniors do not have a livable income. Specifically, 49% of seniors aged 60 and over do not have a decent income to live in dignity. Members will agree that helping seniors is about more than just ageism, isolation and abuse. It is about ensuring that they have adequate financial support to live and age with dignity. This is not currently the case in terms of the Liberal government's priorities.
What is more, the government keeps penalizing seniors who would like to work more without losing their benefits. Inflation, unlike the federal government, does not discriminate against seniors based on their age. It is not by starving seniors 65 to 75 that we are going to encourage them to stay in their jobs. We do that by no longer penalizing them for working.
The second thing that has been largely forgotten in this economic update is employment insurance reform, a significant measure that the forgotten are counting on. Employment insurance is the ultimate economic stabilizer during a recession. While a growing number of analysts continue to be concerned about the possibility of a recession as early as next year, the Canadian government seems to be going back on the comprehensive EI reform it promised in the summer. The system has essentially been dismantled over the years and currently six in 10 workers who lose their jobs are not entitled to employment insurance. This is because they fail to qualify and, of course, they do not meet the current eligibility criteria. That is unacceptable in a developed country like ours.
The Bloc Québécois is in favour of increasing the replacement rate to at least 60%, as was the case prior to 1993.
The Bloc Québécois also believes that we need to better redistribute the EI regions to reflect the reality of workers in the seasonal industry and unemployment in the regions. In my riding in the Lower St. Lawrence area, seasonal work is a reality for many people who work hard in industries such as forestry, tourism and agriculture. These industries are important for economic vitality, but they also help build our region's unique character. They are part of our culture and heritage.
By stubbornly refusing to move forward with the necessary EI reform, Ottawa is putting our workers, our seasonal industries and our regions in a precarious situation. It is ignoring and abandoning our needs, and yet the Liberals promised EI reform in both the 2015 and 2019 elections. How many times will the federal government let Quebec's regions down?
The third thing missing here is inflation, a word we have been hearing over and over. As I said earlier, the government has identified the problem, the rising cost of living, but is not actually doing anything about it. It tells us to expect very tough times this winter, but says nothing about how to get through them. It makes dire observations about the economic situation, but dismisses any and every opposition suggestion for dealing with it. Consider supply chains, whose fragility was exposed during the pandemic. Last spring's budget named the problem 71 times, and the economic update did so another 45 times. However, neither document offers any solutions whatsoever to the problem.
In Bill C-32, the government repeats measures it took in the past and acts on announcements from last April's budget, but there is nothing to suggest it knows where it is headed. This is all déjà vu. It is a celebration of Liberal lip service, but one cannot feed one's children with fine speeches.
Another major file that Ottawa continues to ignore is health transfers. The meeting of health ministers from Quebec, the provinces and the federal government from November 7 to 9, 2022, went nowhere. The federal government showed up empty-handed and did not offer any increase in health transfers. Even worse, it lectured and insulted the provinces, accusing them of mismanaging health care. That came from a government that is incapable of managing its own responsibilities such as passports, employment insurance and immigration. That is really rich coming from the federal Liberals.
The Bloc Québécois is defending the provinces and Quebec, which are united in asking for an increase in federal health transfers from 22% to 35%, or an increase from $42 billion to $60 billion. That is a $28 billion increase per year, as unanimously requested by Quebec and all the provinces. This permanent and unconditional increase would make it possible for Quebec to rebuild its health system, which was undermined by years of austerity caused by the reduction in transfers in the 1990s. It would also help address issues related to the aging population and the additional pressure this will put on the health care network.
Those three Bloc Québécois priorities are not included in the economic update. I would like to take the time to remind my fellow members, and all Quebeckers, of what the Bloc Québécois had asked the government to do in conjunction with this economic statement. Our request was both simple and meaningful in an uncertain and difficult economic context: We asked the government to refocus on its fundamental responsibilities towards vulnerable people.
The measure of a society is how much care and support it provides to those who are most vulnerable and most in need. To do this, three key measures are more crucial than ever: increasing health transfers; providing adequate support to people aged 65 and over, since they are on a fixed income with low indexation that fails to offset our rampant inflation; and, of course, undertaking a comprehensive reform of employment insurance. Unfortunately, the Liberals did not think any of these measures were worth considering.
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Madam Speaker, the Bloc is somewhat predictable in the issue of health care, as is, to a certain degree, the official opposition. They tend to think the Government of Canada's only role in health care is to be like an ATM and hand out money. They tend to not want to recognize that there is the Canada Health Act and that there is a huge expectation from Canadians in general that the federal government be there on issues such as long-term care, mental health and pharmaceuticals, let alone many other aspects of health care.
I am wondering if my friend would not, at the very least, agree there are variations in different provinces, yet Canadians want to have a health care system they know will be there in the future and be supported relatively closely in services provided, no matter where they happen to live, whether it is Montreal, Winnipeg, Vancouver or Halifax.
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Madam Speaker, the comments from the member for Winnipeg North are giving me a feeling of déjà vu.
Giving Quebeckers the health care system they expect requires adequate financial support, but this government is not offering that. The Prime Minister made a commitment in 2020 to address the situation after the pandemic and to sit down with Quebec and the provinces to negotiate health transfers. This commitment is not new; it is nearly two years old. However, the Prime Minister did not even bother to show up when the federal Minister of Health called a meeting with all the first ministers of Canada and Quebec.
It is just not a priority for the federal government right now. The only thing Ottawa wants to do is continue trampling on provincial jurisdictions. I would like my colleague from Winnipeg North to tell me what real expertise the federal government has in health care when—
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- Dec/5/22 1:45:05 p.m.
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Questions and comments.
The hon. member for Salaberry—Suroît.
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Madam Speaker, in his excellent speech, my colleague talked about federal services to the public, such as passports and immigration. He also talked about the delays and unreasonable wait times EI claimants are being subjected to. Our staff hear from so many of these people.
Can the member give some specific examples of problems he is experiencing because of the government's failure to deliver these three services to people efficiently?
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Madam Speaker, the few seconds I have will not be enough to list the many problems my constituents are having with federal services.
Take immigration. It is unbelievable how much time my team and I spend dealing with immigration issues every week. People are having to take days off so they can attempt to reach Immigration, Refugees and Citizenship Canada staff for updates on their applications. That is why they turn to their MPs for help.
Then there is the passport crisis. People have had to camp out in front of passport offices to get their documents. The government realized how bad this looked, so it sent EI officers to work at passport offices. Now people are waiting even longer for their EI benefits. The government fixed one problem by causing another. What we need is for the government to focus on its own responsibilities, which it is currently failing to carry out.
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Madam Speaker, the member is wrong in what he says about funding for health care. Never in the history of Canada have we had a national government provide as much cash in transfers over to provinces for health care. It has not happened before. In fact, if the member was to take a look at history, and I was first elected back in 1988 in the Manitoba legislature, he would see that Ottawa has always been the place to go to try to get more money, even though during the seventies there was an agreement among the provinces that they would rather have tax point transfers as opposed to cash. The only government that has been consistent in supporting national health care and ensuring Canadians would have the health care they want is the national government.
I would ask the member if he would not at least acknowledge that never before has the Province of Quebec or any province received as much cash for health.
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Madam Speaker, we understand the member for Winnipeg North's point. Health transfers are not a gift that we are asking Ottawa for. We want our fair share of our money. This money comes from Quebeckers and the provinces. The federal government does not invent this money—
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- Dec/5/22 1:48:20 p.m.
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Resuming debate, the hon. member for Renfrew—Nipissing—Pembroke.
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Madam Speaker, I am proud to rise on behalf of the fiscally responsible citizens of Renfrew—Nipissing—Pembroke.
This costly coalition is out of control. The fall economic statement spells out in black and white just how bad the government's addiction to spending has gotten. None of this is a surprise. It is déjà vu all over again.
In 1972, after just one term under Pierre Trudeau, Canadians clipped his wings and handed him a minority government. Pierre Trudeau struck a deal with the NDP to stay in power. Does that sound familiar? The NDP made expensive demands and the Liberals spent and spent. They timed their spending for maximum pain as the rest of the decade was dominated by stagflation, which is high inflation and low growth fuelled by government spending. Does it sound familiar?
By the end of Pierre Trudeau's reign of error, the deficit was the largest in prepandemic Canadian history. The situation was so bad that Canadians had to elect a Progressive Conservative government to raise taxes and a Liberal government to cut spending. It took 15 years to clean up Pierre Trudeau's overspending addiction. How long will Canadians have to wait this time?
This fall economic statement is either the height of delusion or the peak of cynicism. Canadians face a stark choice: Either the government is delusional and believes spending even more than what it had budgeted for six months ago is fiscally responsible, or Canadians have a government that is so cynical of democracy it thinks it can just repeat the claim of fiscal responsibility enough that people believe it. The government knows it is addicted to spending without a plan. The Parliamentary Budget Officer says there is $14 billion unaccounted for, just another little slush fund to pay off whichever interest group is most in favour tomorrow.
Recently, headlines said the Bank of Canada lost money for the first time in history. That is because it had to pay interest to the banks for the bonds they swapped to keep the current government afloat. That is great for Bay Street, but it is bad for the taxpayers. We can add that to the interest we are all paying on the debt. It is now more than what we spend on national defence and soon it will be more than we spend on health. It did not have to be this way.
Once upon a time, we had a national consensus that deficits outside of economic downturns were to be avoided. The economy roared back after the government lockdowns nearly cratered it. Had the government demonstrated even a modicum of self-restraint, we could be arguing about how to spend a surplus.
Many Canadians believe that our country is becoming more polarized. We should ask ourselves if deficits contribute to the increasing polarization. Running deficits is a bit like musical chairs. Everyone knows that eventually the song will end and there will not be enough chairs for every person, so people get their elbows up and eventually the bonds stop selling and the money runs out. Rather than people scrambling for chairs, it will be social factions fighting for funding. When the money runs out, do they close the school or the hospital?
If the government truly wished to reduce polarization in society, it would be running surpluses. When they can run surpluses, everything becomes easier. It is like a game of musical chairs, except when the music stops they add extra seats. With surpluses, they could pay down debt, lower taxes and make sound investments in core areas of federal responsibility. All it requires is an element of patience. It requires the ability to say “not yet” to favourite interest groups. However, the government lacks discipline.
The government lives in denial. Every budget and every update, the Liberals make the same empty promise. They say that this time it will be different. It is as if Canadians are Charlie Brown and the Liberals are Lucy with a football of fiscal responsibility.
In 2019, the budget said the Liberals would be spending $421 billion by 2024. In the 2020 economic update, the minister claimed that spending in 2024 would be $429 billion. One year later, the Liberals needed to revise the numbers again. That time, they said the spending in 2024 would be $465 billion. That was just 12 months ago. Now, the gang who cannot spend responsibly claims that spending in 2024 will $505 billion. That is not sustainable.
There is no better illustration of the government's addiction to spending than its latest plans for the Canada growth fund. Here is what the fall economic statement says about the new Canada growth fund. The fund will make investments “that contribute to economic growth through direct investments, loans, loan guarantees and equity investments.” I apologize, that was the 2016 budget referring to the Canada Infrastructure Bank.
Here is the quote from this year: “It will invest using a broad suite of financial instruments including all forms of debt, equity, guarantees, and specialized contracts.” How will this growth fund operate? Here is what the government said: “The Canada Infrastructure Bank will be accountable to, and partner with, government, but will operate at greater arm’s length than a department”. I am sorry, that is the 2016 budget again.
This is what budget 2022 said, “The Canada Growth Fund will be a new public investment vehicle that will operate at arms-length from the federal government.” Now the growth fund is all about leveraging private capital. It states, “It will invest on a concessionary basis, with the goal that for every dollar invested by the fund, it will aim to attract at least three dollars of private capital.”
I will say that the government has gotten slightly more modest since 2016, when it said, “great opportunity for the government to leverage its investments in infrastructure, by bringing in private capital to the table to multiply the level of investment...there is a potential to multiply this level of investment 10 to 14 times”. While the Canada Infrastructure Bank was supposed to be at arm's length and focus on infrastructure, it quickly fell victim to the government's radical net-zero ideology. This so-called growth fund is just another example. The growth fund will be stuffed with well-connected executives friendly to the Liberal ideology. They will be paid bonuses whether they accomplish anything or not.
There will be billions and billions for green dreams, yet Canada does not have a national four-lane highway. Ontario's Ring of Fire is full of critical minerals and metals, yet it is nearly inaccessible by road. The government has mandated that 20% of cars sold in three years will be zero emission, yet it has not even studied the costs of electric vehicles. There is nowhere near the electrical capacity in our grid to switch one in five cars. No amount of government spending can change the physics of energy density. No amount of growth funds or infrastructure banks can change the economic realities of scarcity and opportunity costs.
With every dollar the government spends chasing its net-zero ideology, it is a dollar we do not spend on mitigation. Every dollar the government borrows to purchase prohibited firearms is a dollar plus interest it cannot spend stopping gang violence. Every bonus paid to executives at the Canada Infrastructure Bank or the growth fund comes at the expense of seniors, veterans and the disabled.
We know the Minister of Justice has some disgusting suggestions on how we can cut spending on vulnerable Canadians. The Liberal addiction to spending is terrible. Sadly, bad spending is not the only terrible thing in Bill C-32. Reminding Canadians this bunch of Liberals is more like a parody of government, this bill attacks the solicitor-client privilege by requiring lawyers to report the names of their clients to the Canada Revenue Agency. The same government invoking solicitor-client privilege to keep its legal opinion hidden is removing that same privilege from Canadians.
Canadians should know, without any doubts, that the government wants to go down in history for bringing the biggest tax hike on alcohol in Canadian history. It could have introduced a freeze on the excise tax hikes, which it tied to inflation with its automatic escalator tax, but Bill C-32 contains a number of changes to the excise tax. Of course, as with everything the government does, the changes are for the benefit of the government. It has no problem making it easier for the tax man to search our records, but making it easier for Canadians to enjoy beer on the weekend? We can forget it. All the government cares about are the wealthy and well connected, who get rich off the special deals cooked up by these so-called arm's-length funds.
Canadians need relief from inflation and all the government does is increase spending, which fuels inflation. Like an addict, the government will deny it has a problem. It will deny and deflect until the money runs out.
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Madam Speaker, I heard the member say there is nowhere near enough charging capacity for electric vehicles. I realize we are both from Ontario, so I would encourage her to travel a little east into Quebec. She will see there is more than enough. Quebec has done an incredible job of building up its infrastructure. Ontario had that opportunity but suddenly abandoned it five years ago when Doug Ford was elected.
The reality of the situation is that this is about political will, and the Conservatives, at least provincially in Ontario, do not have the political will. What we have seen in Quebec is the exact opposite, and I am wondering if the member would like to comment on that.
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Madam Speaker, that is pretty rich coming from a member of the Liberal government who is able to charge up at work every day and charge it to the taxpayers of Canada.
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- Dec/5/22 2:00:03 p.m.
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Madam Speaker, today I would like to take a moment to mark the 50th anniversary of the Association québécoise pour l'avancement des Nations unies, also known as AQANU. This non-governmental organization, run by volunteers, was created to promote the values of the United Nations and human rights; to organize activities that increase awareness, spread information and advocate for sustainable development; and to support the implementation of sustainable development projects and support activities in Haiti.
AQANU works with rural groups to support projects that improve the lives of Haitians. Project themes include food security, agriculture, education and humanitarian aid.
Some $7 million has been invested in more than 270 projects, and that is in addition to research and observation trips to Haiti and work sessions at the United Nations. The organization also maintains close relationships between the people there and here in Canada and Quebec.
I would like to sincerely congratulate and thank all those dedicated people involved in AQANU who have been making a real difference in the lives of thousands of Haitians for 50 years now.
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