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House Hansard - 144

44th Parl. 1st Sess.
December 8, 2022 10:00AM
  • Dec/8/22 10:14:31 a.m.
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 moved: That, given that, (i) Canada's Food Price Report 2023 states that a typical farm will pay $150,000 in carbon tax per year when the carbon tax is tripled, (ii) families will pay an additional $1,065 for groceries in 2023 for a total of $16,288 due to increased costs being passed on to consumers, (iii) food bank visits were at an all-time high reaching 1.5 million in March 2022, a 15% increase from the previous year according to Food Banks Canada, (iv) 20% of Canadians are skipping meals and grocery price inflation is at 11%, the House call on the government to cancel the carbon tax that is applied to all food inputs and production, including: (a) all farm fuels; (b) grain drying; (c) fertilizer; (d) transportation; and (e) other appropriate aspects of the food supply system.
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  • Dec/8/22 10:40:13 a.m.
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Mr. Speaker, it is a great pleasure to serve on the same committee as the member opposite, the Standing Committee on Agriculture and Agri-Food. The member mentioned in his speech Sylvain Charlebois, who came before our committee. Just the other day when asked a question about whether the price on pollution is affecting food price inflation he, very explicitly, said no. Does the member opposite recollect that? The other thing I will just add is that the recent report done by the Canadian Climate Institute shows there is going to be $25 billion in losses due to climate change by 2025, and that the number is going to rise to $100 billion over the next 10 to 15 years. This actually undermines the entire growth of our economy. How does the member reconcile that with the statements he has made today?
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  • Dec/8/22 11:10:35 a.m.
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Mr. Speaker, I want to thank the member for his speech today. There were certain words in it that I had a bit of a challenge with. It was mostly when he was talking about the Liberal carbon tax and inflation. He said that they are probably not related and that we are talking about two different things. This week, there has not been a lot of respect from members opposite toward the Auditor General's role, and I know the Governor of the Bank of Canada said, at FINA committee, that the carbon tax has increased inflation. Does he agree with the comments from the Governor of the Bank of Canada?
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  • Dec/8/22 11:11:20 a.m.
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Mr. Speaker, I completely agree with the Governor of the Bank of Canada, but my colleague should not quote out of context. Quoting out of context is just a pretext for saying things that are not true. What he said is true in theory, but the effect is minimal, and that is what matters. The real causes of inflation are the broken supply chains, which take time to fix; China's zero-COVID policy, which has disrupted all the supply chains; and Vladimir Putin's war in Ukraine, which has also thrown supply chains around the world into chaos.
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  • Dec/8/22 11:41:03 a.m.
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Mr. Speaker, at the beginning of my speech, I talked about a lid of goodness and consideration. I believe that all members, be they Conservative, NDP or Liberal, are capable of goodness and consideration. They have shown this to be true. However, I said that the contents of the pot might come across as campaign-flavoured because of the information that was left out. That is what I explained in my speech. When they talk about inflation, they point to one factor. They say it is because of the carbon tax, but they do not talk about other factors, such as environmental disasters, war and a weak supply chain. We can and must work on those other weaknesses.
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  • Dec/8/22 12:11:09 p.m.
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Madam Speaker, as always, it is a privilege and honour to rise and bring the voice of Chatham-Kent—Leamington to this place. I will be splitting my time with my hon. friend and colleague from Thornhill. Food inflation remains a top priority for Canadians from coast to coast, with almost six million people reportedly living in food-insecure homes in Canada last year. This is per Canada's Food Price Report. This number is expected to be even higher in 2022. Food inflation is impacted by a number of factors, including general inflation, supply chain issues, geopolitical situations and, of course, internal policies. General inflation in Canada has reached the highest level in decades, as the more the government spends, the more things cost. We have seen local supply chain issues caused by the global pandemic, and there are global impacts on food, especially fertilizer supply, as a result of Russia's illegal invasion of Ukraine. Yes, these events are not controlled here, but here at home, the Liberal carbon tax continues to drive up the price of all goods, along with all of the other non-pandemic-related spending that the government has chosen to do. Canada's general inflation rate is 6.9%, the highest it has been in 40 years, and food inflation has exceeded general inflation for 13 consecutive months, with food prices surpassing even the high-end predictions for 2021 to an astonishing rate of 10.3% this past September. This has led to food banks experiencing their highest level of demand in decades. Russia's invasion of Ukraine has had global impacts on food prices through trade restrictions and further supply chain interruptions. This ongoing conflict has especially affected the fertilizer market here in Canada, and more than it should have since Canada should be far more self-sufficient in nitrogen and potassium than it is. We have the national gas here to provide our nitrogen fertilizers, but not the pipelines across Canada to get the gas to eastern Canada. Railcars do some of the cross-Canada shipping of our petroleum products, which ties up and makes more expensive the option of railing potassium to eastern Canadian markets. Saskatchewan is a very large producer of potash, or potassium, but instead of using our own, we have became dependent on imports. As Russia is also the world's largest exporter of fertilizer and as trade restrictions remain in place, the shortage of fertilizer puts pressure on global prices. However, instead of helping farmers, the government has demonized our farmers' use of fertilizer. The introduction of a fertilizer emissions reduction target of 30% could not have come at a worse time, and this unscientific scheme is not based on any measured baseline data. Progress could not even be directly measured, because there is no base to measure from, nor a way of directly measuring emissions. Canadian farmers are already outproducing the world on sustainability and continue to improve their environmental record, as they are already up to 70% more efficient in fertilizer use than many other countries. Russia is also the largest gas exporter in the world, meaning that sanctions imposed on Russia by Canada and a number of other countries have placed pressure on other suppliers of gas, once again driving prices up. Higher fuel costs affect food prices in every step of our food value chain, as suppliers are forced to pass along their increased costs at every step up the chain and then, of course, ultimately to consumers. The government's carbon tax, the subject of today's opposition motion, is yet another factor driving up food costs across Canada, as its exemptions are currently limited to only on-farm fuels and it is still applied in many other areas of the food supply chain. Not only does the carbon tax directly raise costs for Canadians, but it has far-reaching indirect effects as well, especially if the government insists on tripling it. It is important to note that a large part of inflation, and certainly the carbon tax, is the result of internal policies over which the government has control. In my remaining time, I want to spend some time on an important issue that has been a priority for me since I first became a member of Parliament. It is the role that grocery retailers play in our inflationary challenges. On the one end, our food supply chain continues to be crippled by the government's cash grab carbon tax, and we are certainly hearing about that in the House today. However, let us look at the other end of this equation and at the role of the large grocery retailers that complete the double whammy of the carbon tax. The government has the opportunity to address the crisis of food inflation and lower food costs, namely through the implementation of a grocer code of conduct. Farmers are often called the first step in the food value chain. However, the “field to fork” expression is a bit of a misnomer. Farmers have many suppliers, so they are not the first step in the value chain. These suppliers, in turn, incur the carbon tax on many of their products and of course on the transportation of their products to the farm, and these costs are once again passed along to the farmer. Food manufacturers and processors are next, and then on to food distribution, which is either retail or the food service industry. The carbon tax is incurred at each step of this chain, eventually ending on the consumer's lap. There are two seemingly contradictory statements being bandied about these days. The first is that retailers are seeing record profits. The counter-argument from the industry is that retailer margins have not changed in percentage terms throughout the pandemic. Both these statements can be true, as retail volumes have increased during the pandemic since consumers shopped more retail versus the food service that supplies the restaurants and institutional trade. The carbon tax, which applies to the delivery of farm inputs and outputs and to the transportation all along the food chain, has increased costs, so retailers, maintaining their margins in percentage terms, which is what they are claiming, are applying this margin to a higher cost from suppliers and to higher volumes generated by the change in the market from consumers shopping retail versus food service. Of course, their profits then set records. However, there is an opportunity before us that could accomplish many goals if we get it right. When properly implemented, it would result in increased profits for food manufacturers because of fair trading practices and reduced administrative costs in attempting to comply with the many “rules” applied by retailers. It would also lead to reduced costs for the retailers themselves in administering all these programs allegedly used as profit centres. Most importantly, it would reduce food costs for consumers. Right now, shelf listing fees, fines for short or late deliveries and a host of other administrative exercises are adding costs that eventually end with the consumer paying a higher price. There is certainly an international precedent for such a solution, as the U.K., Ireland and Australia have all gone down this road with varying degrees of success. Initially, retailers were afraid imposing a code would lead to a reduction in the number of retailers with gross sales meeting the threshold for the application of the code. However, the U.K., since fixing its original attempts, has seen more retailers succeed. At the outset of the program, only 10 retailers reached the threshold of dollar value throughput, but now 14 are large enough, meaning that the code has not driven consolidation. In addition, and this is very important as well, it would allow the 10,000 independent grocers, which are crucial to so many parts of rural Canada, to be treated on par with the big five that control 85% of the grocery retail trade. In conclusion, an appropriately structured code results in lower consumer prices and fairer trading practices within the value chain. Punishing farmers with an unscientific fertilizer emission target and applying a carbon tax to almost every step of the food value chain only serve to drive up food prices and drive more Canadians to the food bank.
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  • Dec/8/22 1:04:15 p.m.
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Madam Speaker, first of all, I am not going to blame the recipients of CERB payments as the reason for inflation. Families found it very difficult. We are talking about millions of families, nine million families, virtually, who needed to have CERB for a wide variety of reasons. The Conservative Party might want to try to blame those families, but from the government's perspective we needed to be there to support Canadians going through the pandemic. Had the Conservatives been in power, it is obvious that they might not have done that. As the result of a Liberal government doing it, as a result of a Prime Minister who understood the importance of having Canadians' backs, we were in a better position to be able to get out of the pandemic in the fashion in which we have. I will compare our record to any G8 country that is there today. We have done exceptionally well. There is always room for improvement, and at the end of the day I look forward to continuing the dialogue on that particular issue.
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  • Dec/8/22 1:43:04 p.m.
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  • Re: Bill C-35 
Madam Speaker, I am happy to be sharing my time with the very hon. member for Vaughan—Woodbridge. I am very pleased to join in today's debate on the issue of the higher cost of living. It is one that is top of mind for our federal government and also for the residents of my riding of Davenport. It is also the top economic challenge facing our country right now. We have been speaking with Canadians and know the real uncertainty they are feeling today. First, we have experienced a once-in-a-generation pandemic. We turned the Canadian economy off and then turned it back on. Then Vladimir Putin invaded Ukraine. Now we are dealing with inflation. All of these things are related, of course. Global inflation has not been created by the decisions of any one government alone. Global inflation has been created by the combined aftershocks of two and a half years of historic tumult. Fortunately, Canada is faring better than most other G7 countries in these very difficult times. However, that reality does not change the impact on Canadians when they are looking at their grocery bills or their gas receipts. Our federal government knows how challenging these past several months have been, and while inflation is down to 6.9% from a peak of 8.1% in June, it is still too high. It is also no comfort that Canada's inflation rate is one of the lowest of all G7 countries. Affordability and covering the costs of everyday living will continue to be a top issue. It will continue to be a difficult time for a lot of Canadians, friends, families and neighbours. Our economy will slow, the same as economies around the world, as central banks continue to act to tackle inflation, as we heard from the Bank of Canada yesterday. There will be people whose mortgage payments will rise. Businesses will no longer be booming in the same way they have been since we left our homes after the COVID lockdowns and went back out into the world. Our unemployment rate will still be low but will not be at its record low. We know that Canadians are worried about the higher cost of living and are also wondering when it will all end. For the Canadians who need it the most, namely those who are the most vulnerable and those who feel the bite of rising prices most acutely, our federal government is there with measures in our affordability plan right now, this year. Our affordability plan has been providing up to $12.1 billion in new supports throughout this year, with many measures continuing after this year to help make life more affordable for millions of Canadians. Let me go through some of those measures. We have doubled the GST credit for six months, which is providing $2.5 billion in additional targeted support to roughly 11 million individuals and families who already receive the tax credit, including more than half of Canadian seniors. Many received this additional payment last month. The second thing we are doing is enhancing the Canada workers benefit to put up to an additional $2,400 into the pockets of low- and modest-income families, starting already this year. We also increased, on a permanent basis, old age security by 10% for seniors over 75. That began in July. This increases benefits for more than three million seniors and provides more than $800 in the first year to full pensioners. In addition, we have a $500 payment this year going to 1.8 million Canadian low-income renters who are struggling with the cost of housing through a one-time top-up to the Canada housing benefit. We are also cutting regulated child care fees by an average of 50% by the end of this year. I am delighted that we have introduced Bill C-35, legislation that will protect access to affordable, inclusive, high-quality early learning and child care now and ongoing. This legislation will make it harder for any future government to cancel or cut any child care in the future. I am very happy that this is happening and is currently under way. We are providing dental care for Canadians without dental insurance who are in households earning under $90,000 and have children under the age of 12. They are getting up to $650 this year and up to $650 next year. We are also indexing benefits to inflation, including the Canada child benefit, the GST credit, the Canada pension plan, old age security and the guaranteed income supplement. All of these measures mean that Canadians are getting more money back in their pockets when they need it most. Also, when it comes to pollution pricing, we know a national price on pollution is the most effective and least costly way of reducing greenhouse gas emissions and putting money back into the pockets of most Canadians. I would like to take a moment to further highlight two other measures in this plan in more detail. First, in the fall economic statement, we set out a plan to further improve the Canada workers benefit, in addition to already expanding and enhancing it in budget 2021 to reach up to three million Canadians who do important jobs but do not get paid very much. The federal government currently delivers the Canada workers benefit through tax returns. That means eligible Canadians need to wait until the tax year is over to receive the money they have already earned. However, bills need to be paid throughout the year. That is why in the fall economic statement, we set out a plan to further improve the Canada workers benefit. With the changes proposed in the fall economic statement, the Canada workers benefit will reach up to 1.2 million additional hard-working low- and modest-income Canadians through advance payments that would be made in July, October and January based on a worker's income in the previous year. This means that in total, the Canada workers benefit would top up the income of up to 4.2 million Canadians. They are among the lowest paid Canadians, and no one who works 40 hours a week should have to worry about paying the bills or putting food on the table. The second measure I would like to underscore is our federal government's investments to support early learning and child care. Child care is not just a social policy; it is an economic policy too. Affordable, high-quality child care will grow our economy, will help give every Canadian child the best start in life and will allow more women to enter the workforce. I call this policy a game-changer. In fact, just last week, Statistics Canada reported that almost 82% of women in their prime working years had jobs in November, the most on record, as our implementation of the Canada-wide early learning and child care system continues to close long-standing gender gaps in conjunction with a tight labour market. At a time when the cost of living is top of mind for so many, the investments we have made are having a real, tangible impact on what is often one of the biggest monthly expenses for a family. This is very popular among residents in my riding of Davenport. They love this national child care plan. They are absolutely using it. They very much appreciate the additional dollars, especially during months like December, when there are some additional family gatherings and they need additional dollars. In budget 2021, our federal government has made a historic investment of $30 billion over five years to build a Canada-wide early learning and child care system. In less than a year, we have reached agreements with all 13 provinces and territories. As I mentioned earlier, by the end of this year, regulated child care fees will be reduced by an average of 50% by 2025-26. Child care fees will average $10 a day by then for all regulated child care spaces from coast to coast to coast. Today, that means parents across British Columbia can now save on average up to $550 more per month for each child they have in licensed child care, representing up to an additional $6,600 annual savings. This is on top of the existing savings of up to $350 per month introduced by the ChildCareBC plan in 2018, for a total of almost $900 in savings per month on average. As we continue to work with the provinces and territories on the implementation of agreements, we are also creating an early learning and child care infrastructure fund. Through an investment of $625 million, this fund will enable provinces and territories to make additional child care investments, including for the building of new facilities, all with the goal of making high-quality child care across Canada more accessible and more affordable. When it comes to ensuring Canadians will get through this challenging economic time, we are providing inflation relief, through our affordability plan, to Canadians who need it the most: the most vulnerable, who are most exposed to inflation. We, of course, cannot support every single Canadian the same way we did with emergency measures at the height of the pandemic. To do so would only make inflation worse and more persistent. In saying that, I note we have been responsible with our spending, we are being compassionate and we are going to continue to have the backs of Canadians who need it the most, both now and moving forward.
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  • Dec/8/22 1:53:01 p.m.
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Madam Speaker, I thank the member for Davenport, because she just admitted at the end of her speech that the more the government spends, the higher inflation goes. She just said it. She said that we cannot spend as much as at the height of the pandemic because it makes inflation go up. I will get to my question for her, now that she was honest about that. In listening to her speech, Canadians would think they have never had it so good, yet 1.5 million Canadians use the food bank every month. Does the member think this is a statistic that shows her government is doing well, yes or no?
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  • Dec/8/22 1:53:41 p.m.
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Madam Speaker, on the first part of the member's question, I said that we had to be very responsible in our spending, and that is exactly what we have been. We have been very responsible in our spending in our fall economic statement, in which we were very targeted in how we would actually spend money. We wanted to ensure we were providing targeted funding to those who needed it the most. I provided a number of those examples of how we were targeting that funding. None of that will add to us increasing inflation. With respect to food banks, it is a very serious situation, something I definitely worry about in my riding of Davenport. All the measures we have put into place will continue to help the most vulnerable and will put additional dollars into their pockets. We are hoping that the use of—
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  • Dec/8/22 2:11:15 p.m.
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Mr. Speaker, as families look forward to gathering for the holidays, rising food prices will buy them less while costing them more. There is a cost of living crisis for millions of Canadians, and the Liberal carbon tax is only fuelling more inflation. New data show a family of four will pay nearly $1,100 more for groceries next year. By the end of 2023, families will have paid almost $16,300 just to put food on their tables. On top of that, farmers of a typical 5,000-acre farm will have to pay $150,000 in carbon tax per year once the Liberals triple it. Farmers need to dry their grain and heat their livestock barns. They are getting punished for no fault of their own. Every time the carbon tax goes up, the cost of transporting food also gets more expensive. To help struggling farmers, it is time the Liberals reined in their inflationary spending and axed the carbon tax once and for all.
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  • Dec/8/22 2:20:27 p.m.
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Mr. Speaker, it is easy for the Prime Minister to sit in his ivory tower, blame everyone else and spend even more of Canadians' money to cover his own inflationary mess. His inflation tax is going to cost Canadians an extra $3,500, according to the Governor of the Bank of Canada. The Prime Minister is the architect of sending 1.5 million Canadians into a food bank, half a million of whom were children. He is responsible for one in five Canadians skipping meals. He keeps failing, and Canadians continue to be on the hook for it. When will he understand that Canadians cannot afford any more of his failures and just want to eat and heat their homes?
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  • Dec/8/22 2:36:25 p.m.
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Mr. Speaker, the Liberal program and plan is a total and complete failure. Food inflation is at a 40-year high. One in five Canadians are skipping meals to try to make ends meet; 1.5 million Canadians used the food bank in one month alone, and 500,000 of them were children. Canadians cannot afford these Liberal inflationary policies. They cannot afford to feed their families. Why do the Liberals not stop with the inflationary spending, stop making everything more expensive, and let Canadians get back to providing for their families?
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  • Dec/8/22 3:03:54 p.m.
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Mr. Speaker, the Prime Minister spent so much money that he actually ran out of people to borrow it from, so he had the Bank of Canada create a complex scheme to pour billions of dollars into the accounts of wealthy financial institutions. As the bank raises interest rates to fight the inflation the government caused, the Bank of Canada is actually losing money. For the first time in Canadian history, as the bank loses money, how much taxpayer money will have to go to bail out the Bank of Canada?
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  • Dec/8/22 3:04:37 p.m.
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Mr. Speaker, what the parliamentary secretary is not telling us is that 40% of all that new spending had nothing to do with the pandemic. The Auditor General has now told us that over $30 billion was wasted. That is what is causing inflation. The government's answer is to pour more inflationary gasoline on the raging fire. It is already taking a big bite out of Canadian households. As interest rates rise to fight inflation, Canadians have to pay more in interest payments to the banks, but so too does the Bank of Canada. The Bank of Canada has one shareholder, the Minister of Finance. How much money will taxpayers be on the hook for to pay off the Bank of Canada's losses?
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  • Dec/8/22 3:08:29 p.m.
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Mr. Speaker, Europe is facing an energy crisis this winter that will force people to choose between heating and eating. People are facing the trifecta of inflation, job losses and energy shortages. To address this, European governments have reversed carbon and excise taxes. What are the Liberals doing? They are increasing Canada's carbon tax by 30%. Even Scrooge would find this unacceptable. When will the Minister of Finance realize that this crisis is not fiction and curb this tax increase on everything?
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  • Dec/8/22 3:49:22 p.m.
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Mr. Speaker, it is great to recommence speaking to such an important topic, but also on our government's record of assisting Canadians at this period of time. Our government is well aware that many Canadians are struggling to put food on the table during this period of high inflation. We go to the grocery store and cannot help but feel discouraged to see the price of the food we eat every day continue to rise. Milk, meat, bread, fruit and vegetables all cost more now. Many families across the country are struggling to make ends meet these days because of inflation. However, it is important to remember that inflation is a global phenomenon, and food inflation is no exception. It is the result of the COVID-19 pandemic, and has been exacerbated by Vladimir Putin's illegal and barbaric war in Ukraine. To make things worse, snarled supply chains are affecting people and businesses around the world. However, there is some room for hope in Canada. While inflation was 8.1% in June, it is now down to 6.9%, lower than what we see in many peer economies. For example, in the United States, it is at 7.7%. The EU is in double digits at 10%, and in the United Kingdom is 11.1 %. Still, inflation at 6.9% in Canada is too high. I do personally, as an economist, forecast inflation going down in the quarters ahead, which will bring much needed relief to Canadian families. On the bright side of things, as we are all bracing for a global economic slowdown, I believe there is no country better placed than Canada to weather the coming global economic slowdown and thrive in the years ahead. Indeed, Canada has an unemployment rate near its record low, as more than 500,000 more Canadians are working today than at the beginning the pandemic. We also have the strongest economic growth in the G7 so far this year and the lowest net debt and deficit-to-GDP ratios in the G7. On top of that, our country maintains its AAA credit rating from all three rating agencies. However, we understand that a large number of Canadians will continue to struggle. The next few months will be difficult for our friends, families and neighbours because of inflation. Many Canadians need help to get through the crisis, and our government is there for them. For example, with our affordability plan, we are putting forward a suite of measures totalling $12.1 billion to help Canadians make ends meet and provide for their families. It is important to note that the measures we are putting forward are not pouring unnecessary fuel on the inflation fire. They only provide targeted, fiscally responsible help to those who need it most. I would like to remind my colleagues what our affordability plan has to offer. It would enhance the Canada workers benefit and put up to $2,400 more in the pockets of modest-income families. That would assist nearly three million Canadian workers on a yearly basis. We will cut regulated child care fees by an average of 50% by the end of this year. As I noted in the first two minutes of my speech prior to question period, my family received news that, for little Leia, who is in day care now, the fees have been reduced by 25% and a further 25% will occur by the end of the year. That is great news for not only my family, and we are quite blessed, but also for families who need that assistance and help. There is a 10% increase in old age security, which we had put in prior to the increase in global inflation. This will be $800 more for over three million seniors aged 75 and up who need it the most. Regarding dental care, over 35,000 Canadians have signed up for their children under 12. These Canadians have incomes under $90,000 a year and do not have private insurance. We will make a $500 payment to 1.8 million low-income renters who are struggling with the cost of housing. There is the doubling of the GST credit for six months, which is providing additional relief to 11 million individuals and families. Everything is indexed to inflation. As I mentioned earlier this week, when speaking to Bill C-32, then finance minister Paul Martin introduced the indexation of all benefits of all marginal income tax rates to avoid what is called “tax creep” due to inflation. It was very important. It was one of the largest tax cuts ever introduced in Canadian history and provided a boost to incomes. It is great to see that continue. When we think about the increase in the cost of living, it is due to the cost of groceries, of course, but it is also due to the cost of housing. Our government believes that everyone should have a safe and affordable place to call home. That goal was taken as a given for previous generations, but it is increasingly out of reach for far too many Canadians. Rents continue to climb across the country, pushing people further and further away from where they work. With Bill C-31, we move forward with a one-time top-up to the Canada housing program. This will provide a tax-free payment of $500 to low-income renters, and 1.8 million Canadians will receive this. This payment will provide direct assistance to those who are most vulnerable to inflation and those experiencing housing difficulties. These 1.8 million low-income renters include students who are struggling to pay for housing, and they will be eligible for this new assistance. This one-time top-up is part of a broader set of initiatives introduced in budget 2022. It will invest more than $9 billion to help make housing more affordable, including by alleviating the supply shortage, which is one of the main causes of the high cost of housing, particularly in the GTA. In addition, with Bill C‑32, our government is moving forward with its ambitious package of measures to build more homes and make housing more affordable across the country. In order to help Canadians afford a down payment faster, Bill C-32 proposes to move forward with a new tax-free home savings account. This account would allow prospective first-time homebuyers to save up to $40,000 tax-free toward buying their first home. As with the registered retirement savings plan, or RRSP, contributions would be tax deductible and, as with the tax-free savings account, or TFSA, withdrawals would be non-taxable. The tax-free first home savings account is a new tool that will help prospective first-time homebuyers save for a down payment. We will also enhance the first-time homebuyers' tax credit. The professional fees associated with real estate transactions are another hurdle. That is why we are proposing to double the first-time homebuyers' tax credit. The enhanced credit would provide up to $1,500. I know my time is winding up, so I will stop there. I look forward to questions and comments from my hon. colleagues from all sides of this hon. place.
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  • Dec/8/22 4:00:39 p.m.
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Madam Speaker, I noticed at the beginning of my hon. friend's speech that he listed a litany of external reasons we are experiencing inflation. None of them are attributable to the government. Since the government has added half a trillion dollars in debt, how much more debt does he think it would take for it to actually have an effect on inflation, if half a trillion is having no effect?
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  • Dec/8/22 4:48:50 p.m.
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Madam Speaker, it is a privilege to speak to the opposition motion today. As I usually do, I will go over the parts of the text and address each part accordingly. First, the Conservatives keep saying that the price of pollution will be tripled, but they fail to mention two very important things. First, the money collected will be given back to individuals and businesses and, second, the price will increase progressively over the next eight years until 2030. The second part of the motion is on the estimated increase in the price of food in 2023. I think that the Conservatives failed to illustrate and quantify the role that the price on carbon plays in this increase. When one actually reads through the report, it makes clear that the key drivers to food inflation we are seeing, both in 2022 and what is being projected next year, are because of the war in Ukraine. Ukraine and Russia represent 27% of the global grain market, which has been restricted and we have has seen access challenges. We are seeing rising prices on oil and gas as a result of the war as well. Supply chains are also being affected. We have just gone through COVID and there is still a zero-COVID policy in China, one of the major manufacturers and distributors of products for around the world. I know there can be a really important foreign affairs discussion on the Canada-China relationship, but right now, the supply chain is still being affected. There is labour as well. We have a million unfilled jobs in Canada, and western countries around the world are dealing with similar challenges with demographics. As baby boomers retire, that large demographic works its way out of the system of workers. For me, that is what is driving this, and that is what the report says, at page 15, which is extremely important. However, the Conservatives are laying this all on one policy choice, and I do not think they have been able to illustrate how that represents a significant increase whatsoever in the price increases we are seeing. It is also important to recognize that nearly all farm inputs are exempt from the carbon price. Yes, transportation fuels and other indirect costs can and will have an impact, but with Bill C-234, which is before the House right now, as it has been reported back from committee, we might see an exemption altogether on direct farm costs associated with any type of carbon pricing. That is because there is a recognition that, yes, we are encouraging farmers, and farmers are taking on great innovation themselves. The government has put almost $1.5 billion in the last couple of budgets to help make that transition, but some of those commercial technologies are not readily available. That is the balance that we have walked thus far. The third and fourth part of the motion concerns the challenges in financial affordability. On this side of the House, as I have already said, we are concerned about the cost of living and we are bringing in measures to address that. This gives me the opportunity to talk about the current economic situation, the days to come and what we need to do to find a balance between supporting vulnerable people and maintaining our solid financial position. It does give me an opportunity to talk about where Canada's economic and relative debt position is. It is important because there might be some folks in the public gallery who have been watching this debate or watching it at home, and my God, they would think that things are completely broken in this country. That is the message the leader of the official opposition sends and it is very problematic. Canada actually has one of the strongest records in the G7 on economic performance. As I mentioned, I do not think any parliamentarian in this House would somehow suggest that there are not challenges and that there are not affordability difficulties, but when we look at our economic position to comparative countries, we are extremely strong. I find it ironic that members of the Conservative Party stand up and talk about government spending when they were supportive of many of the measures that this government took during the pandemic. Now that the Conservatives have been in place and now that there has been a cost to the Canadian treasury to make sure we were protecting Canadians and protecting businesses, they talk about how government is spending too much money. It is that hyprocrisy. The member for Kingston and the Islands said it far better than I can in saying that the Conservative Party actually ran on a carbon price just 13 months ago during the election in 2021. He is right. Thirteen months ago, the Conservative Party said this was a good idea. Now the Conservatives stand before us saying they never would have thought up such an idea. It is that mixed messaging that creates challenges in terms of Canadians believing whether or not the Conservative Party is authentic in its beliefs. Also, we just passed the fall economic statement. The third reading vote happened about an hour ago. It is important to recognize that not only is this government walking a key balance between making sure that vulnerable Canadians have the supports they need during this difficult time, but we are also maintaining a strong fiscal position. We are not being irresponsible with government spending. Again, I want to go back to those comparative numbers. Canada has the lowest net debt-to-GDP ratio in the G7. We also have the lowest actual deficit as a proportion of our debt in the G7 as well. When we look at other comparable countries, the Conservatives would paint a picture that somehow things are very poor in this country. Actually we are doing very well in an international context. I want to talk a bit more around some of the hypocrisy of the Conservative Party as it relates to the things we talked about. There is a Parliamentary Budget Officer report that talks about some of the money the government has spent during the pandemic as we try to collect money from some individuals who might not have been eligible. The Conservatives voted on those measures in this House and supported them at the time. We have heard comments this week that somehow this is terrible and that the government should have had more accountability. We have been very clear that, had the program been tightly designed, so much so that it would have taken weeks or months on end to get that program money out to the individuals in question, they would have been in a much more dire situation. In fact, that same PBO report said that if the government had not done what it had done, poverty would have doubled in this country. I want to remind my Conservative colleagues, when they reference that report, that if their suggestion is that we should have been even more bureaucratic and put in even more program requirements at a time of incredible instability, and the fact there was a lot of uncertainty about what would move forward, we wanted to be able to act quickly. We knew there would still have to be an accounting on the other side, and that is something this government will be taking forward in the days ahead, but we did it to protect Canadians. We did it to make sure that the economic principles of the country were strong, and that Canadians knew we had their backs, and that is exactly why I am proud to stand on this side of the House. The last thing is on carbon pricing, because that is the topic of the day. The member for Kingston and the Islands did a good job when one of my colleagues joked about just cutting that 10 minutes and playing it again. Maybe we would, but there have been a lot of questions about Atlantic Canada. I want to remind my constituents, indeed those in Atlantic Canada, that notwithstanding the Conservative Party making the pitch that it is going to apply this winter, the carbon price will not apply to home heating this winter in Atlantic Canada. I want to really highlight the programs that we have put in place. There is the $500 million that we have put out. Today in question period, the Minister of Immigration talked about this program providing $5,000 grants to help homes transition off home heating oil. First and foremost, that is about affordability. That is about saving thousands of dollars a year in energy bill costs. That matters to my constituents and people across the country, but particularly in Atlantic Canada. Of course, it also is beneficial for the environment. I look forward to questions from my hon. colleagues. That is one of my favourite parts of this, so I will sit down and look forward to taking them.
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  • Dec/8/22 5:15:33 p.m.
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Madam Speaker, I thank my hon. colleague for his speech. I would like to talk to him about how to make the economy more resilient by addressing the structural weaknesses that cause inflation. This could include reducing our dependence on oil and gas, rebuilding critical links in the supply chain, addressing the labour shortages that are preventing businesses from offsetting supply problems, and launching a major housing construction project to address the imbalance in the housing market. What are my colleague's thoughts on that?
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