44th Parl. 1st Sess.
April 17, 2023 11:00AM
- Apr/17/23 12:29:30 p.m.
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Madam Speaker, there is work ahead of us on EI modernization. It is a complex and large file. It is a critical file for Canadians. That is why we stepped in during the pandemic with $511 billion invested in the lives of Canadians, including the CERB, including the CEWS and including the things that we needed to get through the pandemic. Those investments made a difference: 830,000 more people employed since the beginning of the pandemic; 126% recovery since the beginning of the pandemic, compared to only 112% by our colleagues in the United States; and doubling the workers benefit.
We have invested now over this fiscal frame $13 billion in the Canada dental plan. From 2015 to 2023, the investments we have made for middle-class Canadians are making a difference in affordability every day.
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- Apr/17/23 12:30:28 p.m.
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Madam Speaker, it is always a pleasure and a privilege to rise in this honourable House to lend my voice in support of budget 2023, appropriately titled for our times, “A Made-in-Canada Plan: Strong middle class, affordable economy, healthy future.”
Before I begin my commentary on the direct measures in the budget, I wish to provide my perspective of where we are in the world today. In my view, today we are at a seminal moment in history, both economically and geopolitically. This happens every few generations, and it is happening today.
As a result, we need responsible and bold leadership for the moment we are in, and measures that are up to the seminal moment as our citizens both deserve it and demand it.
Let me explain briefly. The post-World War II order of multilateral institutions and the leadership of the United States is being reshaped and, in many cases, challenged by China and its alliances with countries like Russia, but also by its investments throughout the globe, from Africa to South America. Layered on top of that we have also seen a rise in populist governments from the far right to the far left, challenging their individual countries' democracies and, again, the multilateral institutions that were built post-World War II.
Economic growth in advanced countries, absent the gyrations from exogenous shocks for decades over normal business cycles, has been slowing across all developed countries due to demographics or aging workforces, a decline in birth rates, slower productivity gains and, for many countries excluding Canada, high public debt levels.
Thus, the policy choices we make as legislators today have an even greater impact on the standard of living of every single one of our fellow Canadians for years to come.
Last week, I attended the World Bank and IMF Global Parliamentary Forum in Washington. I encourage all my fellow parliamentarians here at home to read the IMF's World Economic Outlook, entitled “A Rocky Recovery.” As it become abundantly clear that Canada, with its talented and entrepreneurial citizenry; bountiful natural resources; trade agreements, including CUSMA, CETA, CPTPP, that uniquely position our exporters; immigration system; and strong fiscal framework, including an AAA credit rating is positioned in an advantageous manner relative to our global peers in this seminal moment.
Our government, through budget 2023, is building upon so much of what we have done in the last few years by making the targeted and fiscally responsible investments to create opportunities for Canadian workers in a challenging and changing global economy for today and tomorrow.
We will strengthen Canada's public health care system, because Canadians demand it, with a $198-billion, 10-year investment including $46.5 billion in new investments. This investment is particularly important after the stresses seen post COVID-19. We will continue to rise to the challenge of this seminal moment in the world's economic and political history.
On the economy front, I spent some time reviewing the IMF World Economic Outlook for April, and I wish to read a paragraph on the global prospects and policies:
The global economy is yet again at a highly uncertain moment, with the cumulative effects of the past three years of adverse shocks—most notably, the COVID-19 pandemic and Russia's invasion of Ukraine—manifesting in unforeseen ways. Spurred by pent-up demand, lingering supply disruptions, and commodity price spikes, inflation reach multidecade highs last year in many economies, leading central banks to tighten aggressively to bring it back toward their targets and keep inflation expectations anchored.
What does that mean for Canada and how does that interconnect with budget 2023? In chapter 1, to achieve strong, sustainable and inclusive growth will require policy-makers here at home to stay agile and pursue the following policies. First, ensure a durable fall in inflation, which is now occurring through the actions of the Bank of Canada. Second, safeguard financial flexibility and maintain a strong banking system. We can all be proud, as parliamentarians, that Canada's banking system is well capitalized, has strong liquidity and is very well regulated by our regulatory agencies. Normalizing fiscal policy postpandemic we can check off, as we have seen in budget 2023 that fiscal consolidation and ending pandemic-era programs was the appropriate thing to do. Supporting the vulnerable, due to inflation, particularly with the cost of everyday essentials including food, is also important.
The grocery rebate in budget 2023 will help 11 million Canadians, with a family of four potentially receiving up to $467 and our seniors up to $225. This measure follows after the $500 rental rebate and the prior GST rebate. In addition, the changes to the Canada workers benefit, which will provide $4 billion over the following six years, this year will provide up to $1,428 for single workers and nearly $2,500 for a family.
We know that dental care equals health care, but that seeing a dentist can be expensive. With that, we will roll out a national dental care plan to help one-third of the Canadian population that currently does not have dental insurance. In my riding of Vaughan—Woodbridge alone, nearly 650 kids, the last time I checked, under the age of 12 have benefited from the temporary dental benefit.
I have always stood up and advocated for the hard-working seniors in my riding and across this country, and I am so glad to see that when they retire, if they lack dental coverage post-retirement, they will be covered. We know that seniors on fixed incomes paying for dental visits can mean delaying food shopping for a couple of days or even weeks.
We cannot forget the investments in our national early learning and child care plan, which is saving families across the country thousands of dollars and boosting the participation rate of women.
For the longer term, for which I am even more excited, the IMF and the World Bank identify two major things to ensure strong, long-term economic growth and maintaining Canada's high standard of living. The first one is speeding up the green transition and, second, is increasing the economy's capacity, which means we would increase supply to certain inputs. Budget 2023's strategic investments in our infrastructure and in speeding up the green transition, which we know is creating literally thousands of jobs for Canadians today, is what this bold and responsible leadership calls for, which I alluded to earlier.
We are seeing that within Canada's auto sector, with over $20 billion of investment that has been attracted in creating and maintaining thousands of direct and indirect jobs across this country, much like the plant I visited in Alliston, Ontario, the Honda facility, last week with the right hon. Prime Minister. We know that Canada is now positioned as a leader in the electric vehicle battery supply chain and in the global transition to electric vehicles, which is seeing over $500 billion in capital being put to use as we speak.
The measures in budget 2023 include what I feel is the most important, an investment in a tax credit for clean electricity to ensure that our electricity system can meet the demand for energy consumption in the decades to come. We know that Canada's electricity system, the last time I checked, is at 85% or 90% from clean energy sources. We know we need to get to 100% and lower greenhouse gas emissions, which we are doing. Nuclear, solar, wind, energy storage and hydro are all part of this transition. This investment into Canada's electrical grid is one of the most transformational investments we have seen in Canada's infrastructure in decades. I would even argue it is akin to the building of the railroad in Canada many decades ago.
An investment in a tax credit for clean technology manufacturing, supporting Canadian companies in the manufacturing and processing of clean technologies and in the extraction of critical minerals, will create good middle-class jobs for Canadians today and tomorrow. With that, we are proposing a tax credit equal to 30% of the cost of investments in new machinery and equipment used to manufacture or process key clean technologies. We are seeing that across the country today, whether it is in Alberta, Quebec, Ontario or any other province. Countries are innovating and, if I can use the example of the electric vehicle battery ecosystem, taking advantage of those systems.
We know innovation and new energy sources will be crucial. During my time in the constituency, I visited the energy facility in York Region, the first of its kind in North America where hydrogen is being used in combination with natural gas to heat homes in York Region. That is groundbreaking. With that, our government knows that hydrogen is part of the future and that is why we will be putting in place an investment tax credit for hydrogen, which will be introduced to spur capital to invest in this critical future energy source.
The United States may have brought in the Inflation Reduction Act in response to what Canada has been doing for the last 20 years, but we have also responded to ensure that private capital remains in Canada and that jobs are created in Canada. We are seeing that on a daily basis by either domestic or foreign corporations investing their dollars here in Canada to create a strong economy and a bright future for Canadians, such as my three children. We will continue to do that in a fiscally responsible manner to ensure that we can pay for the benefits that Canadians deserve while we create good, middle-class jobs for Canadians and help those who wish to join the middle class.
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- Apr/17/23 12:42:57 p.m.
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Madam Speaker, I would say that, within our fiscal framework, this budget moves us forward.
We would still maintain our AAA credit rating. We would be making strategic investments into our economy while continuing to grow our economy and create those good middle-class jobs that Canadians depend upon day in and day out. Also, it would ensure that our fiscal framework remains strong, and that is very important to someone like me.
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- Apr/17/23 12:45:54 p.m.
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Madam Speaker, Canadians are struggling worse than anyone has in generations. With the Liberal government’s 2023 budget, I cannot help but think it is missing some pages. I looked, and there must be pages missing. It has to be the case because there is no vision for the country. Where is the plan to make things more affordable? Where does it show that the Liberals are focusing on priorities that matter most to Canadians?
With this budget, it is clear that the ordinary people, who are in truth extraordinary people, but the everyday people who live in the small towns and suburban communities, just like those I represent in York—Simcoe from places such as Ansnorveldt, Bellhaven, Cedarbrae, Pefferlaw, Willow Beach and Bradford, are once again on the outside looking in.
At 5.2%, inflation is still the highest it has been in 30 years. Prices for everyday items, including groceries, electricity, fuel and other necessities, continue to skyrocket. It is no wonder 68% of Canadians are concerned they may not be able to afford gasoline and 60% are worried they will not have enough food to feed their families.
This might not mean much to the Liberal government members and their friends on Bay Street, who profited from the pandemic and who have been well insulated from the increases to the cost of living. They will say, “Is meat too expensive? Let them eat lentils.” They will respond to higher gas prices by telling Canadians to just go buy an electric car. They do this in complete ignorance of the economic realities working families are facing in Canada.
There are Canadians who have resorted to feeding their children Kraft Dinner day after day, with no end in sight. The newest vehicle most people in my riding can afford is a 10-year-old car. It is not a shiny new EV right off the lot. All of this has become heartbreaking and depressing for Canadians who want so much more for themselves, their children and their grandchildren.
While the Prime Minister and his cabinet jetted across Canada trumpeting this budget and telling people to wrack up more debt on their credit cards, I was in my community of York—Simcoe doing what I normally do, which is speaking to the everyday residents who live there about what matters most to them. I spoke to a clerk in a hardware store in Sutton who told me she is retired now but had to go back to work and is working two jobs just so she will not go hungry.
I spoke to a senior in Baldwin who worked hard her entire life as a personal support worker. She dedicated all of her years toward caring for the vulnerable. This senior has now become vulnerable herself, spending the final years of her life in a trailer park with almost no pension and barely getting by each and every month. She cannot afford to put food on the table or pay for hearing aids, glasses and other necessities. Desperately, in the face of these struggles, she asked me whether medically assisted dying was available to her, simply because the cost to live has become so expensive.
These stories are becoming all too common. How is it acceptable that Canadians, people such as the senior in my riding, would consider euthanasia as a better alternative to the poverty and hardship imposed on them by the Liberals’ fiscal irresponsibility? Sadly, reports in the media over the past year have confirmed this desperation. Many Canadians have taken this option. What does that say about the Liberal government? What does it say about our country when it is easier to access assisted dying in Canada than it is to secure affordable housing or afford groceries and other essentials?
With the state of the economy, far too many Canadians are losing hope. They no longer see this country as a place where they can own a home, start or maintain a business, or raise a family. Instead of the Liberals’ deflections and false narratives, Canadians from all walks of life in every industry and in every sector across Canada require real solutions to tackle skyrocketing inflation and the cost of living crisis.
When we look at the 2023 budget promises and the commitments by the Liberals to correct their many failures, those solutions are just not there. In fact, the 2023 budget will make matters worse. With this budget, the Liberals are continuing their war on work by increasing taxes and driving up the debt.
Under the Prime Minister, Canada's federal debt for 2023-24 is projected to reach $1.22 trillion. That is nearly $81,000 per household in Canada, $10,000 more than the income of most families in York—Simcoe. The amount the government is spending on servicing the debt is almost as much as it is sending to the provinces as health care transfers. It is no wonder that, in my riding of York—Simcoe, we have few doctors, no hospital and no physical hospice. It is completely outrageous.
This speaks to one of the problems with the budget and with the Liberals’ approach to the economy in general. Instead of addressing the wider issues, the government will point to the narrowly applied measures they are funding and say that the job is done.
We can take the completely unattainable housing market, for instance. The Liberals’ only plan is a flawed tax-free home savings account. How does this out-of-touch government expect new and young Canadians, already struggling with inflation, wage stagnation and the cost of living crisis, to dedicate $8,000 of their income per year to this scheme?
With the minimum down payment in Canada exceeding $122,000, the FHSA limit of $40,000 is almost laughable, even if aspiring homeowners could afford to put away $8,000 over five years. The Liberals may say that they have now solved the housing affordability crisis, but Canadians can see that this budget will not result in any additional houses being built or a family affording a home who otherwise could not.
Budget 2023 also fails our Canadian farmers, who provide our food security. Our country should be a global leader in agricultural production. I have always said that one can move a General Motors plant, but one cannot move a farm. Instead, the Liberals have stacked the deck against our farmers with fertilizer tariffs, carbon taxes and lack of energy infrastructure, such as natural gas or upgraded hydro infrastructure.
This has made it a struggle for Canadian farmers to compete in the global market while ensuring our own food security here at home. The meagre proposals in budget 2023 do little or nothing to mitigate these challenges and support the people who grow our food.
Finally, I note that budget 2023 contains a promise for some small funding for Lake Simcoe, which is shared between all the Great Lakes across Canada and most major freshwater lakes and rivers in Canada. This is the fourth promise of funding for the lake from the Liberals since they cancelled the Lake Simcoe clean-up fund in 2017.
Residents who live in the watershed or rely on the lake for drinking water are sick and tired of the broken promises. They know that the Liberals are all talk and no action when it comes to the environment. Band-aid solutions and microtargeted measures might sound good at the podium at the Empire Club or at the WEF, but they do not result in any meaningful relief for Canadians carrying the financial burden of the Liberals’ economic failures.
The Prime Minister is spending more than $120 billion in budget 2023. What do we have to show for this out-of-control spending? What is the result of the Liberal spending after eight years? Members can ask themselves that. Any Canadian who has had to sit in a hospital waiting room, try to buy children’s medication, buy or rent a house, renew their passport, take a flight or pay their taxes will tell us that the result has not been much, sadly.
We have no domestic manufacturing capacity here, and across every sector, growth is in decline. Where is the productivity? Members can think about this: After ballooning the size of the federal government by 30%, there is a bigger and costlier government with more red tape, but there are worse outcomes for Canadians.
Fundamentally, the most important purpose of this budget was to restore the formula that worked in this country for the better part of 156 years, which is that, if one works hard, one should be able to provide for one’s family, work toward one’s dreams and give back to one’s community.
The fact is that this budget is not actually missing pages, but it is missing meaningful action to fix that broken formula, and I will be voting no to this budget.
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- Apr/17/23 1:44:58 p.m.
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Madam Speaker, after eight years of the Liberal government, we are facing some of the most difficult economic times our country has ever seen. In this budget, the Liberals have decided to continue increasing taxes and spending without limit. The budget contains $63 billion in new spending. That is an extra $4,200 of debt per household.
To add insult to injury, on April 1 the Prime Minister's carbon tax increased. The carbon tax now adds 14¢ per litre, which will cost the average Canadian family over $800 this year alone, even after the rebates.
Budget 2023 was an opportunity to give Canadians hope, but instead the Liberals chose to keep their hands in the pockets of Canadians with more inflationary spending and more taxes. The Conservatives cannot support this budget and will be voting against it.
After hundreds of phone calls, in-person visits, contacts and emails with people from Lambton—Kent—Middlesex, it is clear that the Liberal government is completely out of touch with Canadians. The Liberals have had no idea of the sacrifices Canadians have been making day to day since they came to power and cut their secret backroom deal with the NDP. Savings accounts are being depleted, credit cards are being used to purchase everyday items, home ownership is now a pipe dream for future generations and they will be on the hook for the Prime Minister's reckless vanity spending.
After listening to Canadians, the Conservatives had three key demands we wanted included in budget 2023 to restore hope to this country. The first was allowing Canadians to bring home powerful paycheques with lower taxes and scrapping the carbon tax.
With yearly increases to the carbon tax now in play, Canadians who are already in a desperate place are being squeezed again with little left to give. Frances, from Chatham, reached out and shared his family's situation with me. Here are his words: “We eat less, go out less and are stressed.”
A University of Saskatchewan study reports that one in five Canadians is skipping meals, and Second Harvest reports that in 2023 there will be a 60% increase in food bank usage. That is a sombre statistic. Mothers are adding water to their baby formula, and I have heard from people in my own riding, and this is sad, that some seniors are even resorting to eating cat food to survive.
How did Canada, a once prosperous nation, turn into a country where Canadians are going to bed with empty stomachs? This is what happens when we have a Prime Minister who does not pay attention to monetary policy.
The government proudly proclaims that the budget includes a one-time grocery rebate, but news flash, it is all smoke and mirrors. It is the GST rebate branded as a grocery rebate. What the Liberals fail to mention is the rebate disappears thanks to their carbon tax.
The Liberal government gives little and takes more in the same breath and expects people to be thankful for it. Canadians are seeing through this Liberal charade. The Conservatives know that real people deserve a real plan to deal with the cost of living crisis and that no serious plan will be coming until we form government.
Restaurants, bars, wineries, distilleries and breweries are being unduly punished by the Prime Minister's tax plan. The 2% increase to the excise tax this year on alcohol will negatively impact an already struggling industry. The temporary cap on the increase of the excise tax is only for one more year, and we can be certain the tax will increase again after that.
The Conservatives fought to scrap this tax in its entirety. Unfortunately, there is nothing the Liberals will not tax. Hard-working Canadians should be rewarded for their labour. Under a Conservative government, we will make sure this becomes a reality again.
The Conservatives also demanded a budget that would help bring home lower prices by ending the inflationary debt and deficits that drive up inflation and interest rates. Last year, when budget 2022 was tabled, the MP for University—Rosedale said that Canada's debt-to-GDP ratio was Canada's “fiscal anchor” and must decline for the country's finances to be sustainable.
If budget 2023 passes, Canada will be without a fiscal anchor. Let that sink in. There will be no return to a balanced budget and no plan on reducing our debt load. According to a recent Angus Reid poll, nearly half of Canadians want the government to cut spending and present a plan to balance the budget.
The Conservatives agree. Under our leader, the Conservatives would bring in a dollar-for-dollar tax law that would require the government to find a dollar of savings for every dollar of new spending. That would curb spending significantly and bring accountability to government.
The Liberals are always looking for ways to spend more money at the expense of Canadians. They tax, they borrow and then they print more money. The Conservatives understand how hard Canadians work for their money. Budget 2023 continues to tax Canadians to cover for the Prime Minister's out-of-control spending. The taxation needs to stop. The Conservatives will not support this tax-and-spend budget.
The third thing that Canadians were looking for in budget 2023 was a plan to bring homes to Canadians that they can afford by removing government gatekeepers to free up land and speed up building permits. Home ownership has become a remote reality for Canadians wanting to enter the housing market. Nine out of 10 Canadians who do not own a home say they feel they likely never will. Under the Liberals, everything has doubled. Minimum down payments have doubled. Mortgage payments have doubled. Rents have doubled.
The Liberals have taken away what was once a proud milestone in the life of Canadians. Instead of parents visiting their kids' new homes, parents are moving their kids back home to their basement in the house where they grew up. This is what happens when we have a Prime Minister who does not do numbers, who thinks economic growth comes from using a credit card and who does not understand the real impacts of consumer debt. What is the Prime Minister's response? It is to keep drowning Canada. The dream of home ownership has been trampled thanks to the Liberals.
We also have a housing shortage in the country, and according to the CMHC, it is projected that Canada will need 3.5 million new homes to restore affordability. There is no plan in budget 2023 to address Canada's housing crisis. The Liberals have no plan to get homes built. Canada must bring homes people can afford by removing gatekeepers, freeing up land and speeding up building permits. A Conservative government would withhold federal funding from cities that refuse to remove gatekeepers. Affordable housing is not a priority for the Liberal government, and we cannot support a budget that does not address this.
On agriculture, a pillar of the Canadian economy, we see a Liberal government unwavering in its attempt to break the backs of farmers and compromise Canada's food security at home and abroad. The budget does nothing to address the rising cost of fuel, feed, fertilizer, transportation and the energy necessary to grow and produce food.
The sector has also been hit hard with the carbon tax, making food production more expensive and the cost of food even more unaffordable for Canadians. When the carbon tax triples by 2030, it will compromise a farmer's ability to make a profit, leading to bankruptcies and the exit of farmers from the industry. That is already happening. The budget confirms that the Liberals' plan to reduce fertilizer use, which will decrease food production, will jeopardize our food security.
According to a recent report from RBC and the University of Guelph, the industry is set to lose 40% of farm operators to retirement in the next 10 years. With all the farmers retiring and no one entering the business because they cannot afford to, we have a serious problem looming in Canada. Here is an equation I hope the Prime Minister will understand: No farms equals no food. More and more family farms are closing due to the excessive cost of running them.
Reducing fertilizer will surely boost the number of Canadians visiting food banks as their grocery prices continue to jump due to a shortage of food supply. According to a study by MNP, the proposed Liberal reduction in fertilizer targets will cost the Canadian economy $48 billion by 2030. This is what a Canada run by NDP ideology will look like: weak, gutted and hopeless.
I am sure everyone in the House has heard the phrase “actions speak louder than words”. The budget is full of words. How can Canadians trust a government with a long record of waste? We have the $15-billion arrive scam app, the $6,000-a-night hotel room for the Prime Minister, a cabinet minister giving her friend a government contract and $100 million to McKinsey. It does not stop. With government revenue expected to decrease, Canadians can expect a flood of new taxes for years to come under the Liberals.
A constituent reached out to me with her views on what her country has become under the Liberals. Delaney wrote, “We cannot afford our life. I don't spend any money beyond our needs, but it is to a point where I wonder how I will continue to heat my house for my family and provide healthy nutritious meals for my kids. There is something seriously wrong with this country and currently I am not proud to be a Canadian. It is an embarrassment.”
Empty stomachs, unaffordable housing and high taxes are what eight years of the Liberal government have done to Canada, and budget 2023 does little to address the real issues Canadians are facing. I will not support this budget, and I am proudly joining my Conservative colleagues in voting against it.
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- Apr/17/23 4:30:03 p.m.
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Madam Speaker, I want to thank my colleague across the way for his excellent speech. I do enjoy working with him on the foreign affairs committee. I know a great organization that is potentially going to benefit from his talents during his next time out.
I have a question I want to ask. I had the opportunity to consult with my riding over the last two weeks. I had 13 meetings, and I heard much about the cost of inflation and how it was affecting families. In particular, I want to relate two comments I heard from the villages of Wheatley and Erieau. They have harbours, and they understand the concept of an anchor.
A year ago, the Deputy Prime Minister and Minister of Finance made a commitment that Canada's debt-to-GDP ratio was anchored to a solid fiscal anchor and would not rise. The folks in Wheatley and Erieau understand that anchors are not supposed to float, so my question to my hon. colleague is this. Next year, what will be the anchor in this year's budget?
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- Apr/17/23 5:49:49 p.m.
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Madam Speaker, as you listen to my speech, you will understand why my colleague from Terrebonne and I, and all our Bloc Québécois colleagues, are working together to denounce the tricks hidden in the budget.
Chapter 3 of the federal budget presented on March 28 includes a number of elements that I would have liked to address in my speech today. The measures for affordable energy, good jobs and a growing clean economy are indeed encouraging. There are investments, which unfortunately are in the form of tax credits, for clean electricity, retrofits, energy efficiency and geothermal energy. These are positive steps. There is good news in the budget at first glance.
I do, however, have concerns. Upon closer inspection, one might notice a deliberately and skilfully designed but reprehensible architecture, where, through the use of a single word, a very specific adjective, the entire industrial ecosystem of the hydrocarbon sector becomes part of the smorgasbord of public funds. That magic word in the budget is “clean”, which appears roughly 170 times in this chapter alone.
I will not go into the funds, the programs, how they are managed, what the funding is for, and the other specifics because there would be too much to say. I want to be clear that there is some good in the budget. Unfortunately, the problem is that these positive measures to help the environment and uphold our international commitments are overshadowed by the fact that the fossil fuel sector has undue access to public money. The government committed to eliminating fossil fuel subsidies by 2023. Once again, that will have to wait because, clearly, it will not keep its word. Subsidies will become tax credits so they can be hidden. The budget is mapped out until the 2027-28 fiscal year. Clearly, this will not happen by 2023.
I want to talk about hydrogen production, which my colleague also mentioned. There is the investment tax credit for clean energy. It sounds good, and it seems to me that it is not a bad idea. However, the truth is, Canada claims that hydrogen production from fossil sources, and from natural gas in particular, is clean. I am not making that up. There is, however, no credible international organization, scientist, or expert who would say that this is clean hydrogen.
I am not questioning the need to develop the hydrogen energy sector. We should develop it, but it must be done right. The lion's share of the money should be spent on creating a hydrogen production complex with a net-zero or very low greenhouse gas emissions life cycle. We are talking about the production of hydrogen through electrolysis. The government has announced that this tax credit is available for production projects that use electrolysis, but also for those that use natural gas. The funding is also conditional upon the associated emissions being reduced through carbon capture, utilization and storage technologies, known as CCUS.
The budget provides $5.5 billion over five years to fund this investment tax credit for what the government calls clean hydrogen. The first tax credit opens the door to another gift, another hidden subsidy for the oil and gas sector, the one for investments in carbon capture and storage, which, let us not forget, has been discredited by a host of experts around the world. My colleague talked about 400 signatories. The majority of these people have expertise in science and technology. They asked the Minister of Finance not to agree to funding this false solution, which is extremely expensive, energy intensive, ineffective and impossible to carry out in the short term when we are facing a climate emergency.
They even ignored a very clear report on the subject released by the International Institute for Sustainable Development earlier this year, so very recently. Should this industry, which is rolling in profits, unparalleled record profits, not be funding the rollout of this project itself? Many observers argue that it is high time that the federal government introduced the regulations that will require the sector to fund its own emissions reductions. That, however, is just wishful thinking, as they say.
Who made money in 2022? Canada's six largest oil companies made close to $38 billion in profits. According to media specializing in the energy sector, those companies intend to take a measly half percent, 0.5% of that amount, and invest it in clean technology. Some will say that $516 million over five years is the amount of the tax credits. That is not a lot. It is very little. The lobbyists will say the same thing. Pathways Alliance, where all or almost all of the companies are grouped together, is taking strong action so that governments are paying for as much of their capture projects as possible.
In reality, these producers are getting far more than this half a billion, because the investment tax credit and the clean hydrogen tax credit are interconnected. If these companies actually believe in their vaunted carbon capture and storage projects and their potential, then why do they not invest more in them themselves for the prosperity of their shareholders and their image as good corporate neighbours?
The budget implementation conditions merit our attention. I will summarize two important elements. The budget says, and I quote, “At this time, only dedicated geological storage and storage in concrete are proposed to be eligible uses.” We are therefore talking about carbon storage. The other features of the tax credit show that companies will be able to access these tax benefits even if the activities are not eligible.
By the time an audit is done to ensure that the tax credits actually involve eligible expenses, companies will have used this accounting scenario for five to 10 years to save money, as if they do not already have enough.
Add to this the following unacceptable exemption: “Corporations with projects that expect to have less than $20 million of eligible expenses over the life of the project would be exempt from [producing a climate risk disclosure report].” Simply divide that among projects under $20 million and there will be no more environmental risks.
The cost of solar power has dropped by 85% since 2010. The cost of onshore wind has dropped by 68%. Even the price of net-zero hydrogen has dropped slightly below that of hydrogen produced from natural gas. This was found in early 2022, a consequence of the conflict between Russia and Ukraine.
For the past 20 years or so, the CO2 capture, utilization, and storage, or CCUS, program has yielded largely inconclusive results. The industry claims that potential emissions reductions from the oil and gas sector only amount to 10%. We are talking about investing billions of dollars for only 10%.
Suncor estimates the capital and operating costs of its Cold Lake project at $14 billion. As for Cenovus, its project will cost $2.5 billion per year until 2050. Can my colleagues grasp what this means? If only we had other places where to put those billions.
This budget does not in any way signal that the government is preparing to end fossil fuel subsidies. It has disguised them. This budget does not give us the tools to meet the target we urgently need to reach.
Spending precious public funds on accelerating investments in energy efficiency, electrification and support for renewable energy is how the government should be using taxpayers' money.
A parliamentary committee studied nuclear waste governance in Canada and tabled its report in the House. We produced a supplementary report. Therefore, I cannot ignore the worrisome position taken by the federal government on the nuclear industry. Some say that the nuclear industry does not emit greenhouse gases. Others say that it is part of the solution. Who is looking into radioactive waste? Is nuclear energy clean? No one knows what to do with dangerous waste materials. Small modular reactors have not yet achieved technological readiness.
I will close by asking what Canada plans on doing with spent fuel. Does the government intend to sell it? I know, perhaps these are projects that will be carried out in the Arctic given that the moratorium will expire at the end of 2023.
Is there going to be oil exploration in the Arctic? I am asking the question. The criticism is not over.
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