44th Parl. 1st Sess.
May 29, 2023 11:00AM
- May/29/23 7:43:56 p.m.
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Mr. Chair, the minister confirmed that she supports the ongoing underfunding and that she also borrowed on behalf of the provinces. This is not a gift from the federal government. The money that the federal government sent during the pandemic was borrowed money.
Now there is no money for health care, but there is money for a dental plan. This is being done with the help of the federal spending power, which is the instrument of the fiscal imbalance.
The federal government is going to expand this program. The Government of Quebec and the Quebec National Assembly are unanimously calling for Quebec to be given the right to opt out with full financial compensation.
Will the Liberal government give Quebec the right to opt out with full financial compensation?
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- May/29/23 7:57:51 p.m.
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Mr. Chair, we need to be very careful in our budgets about a couple of things. We had an eye on a few things.
One was being sure we found a balance between fiscal responsibility, between our deficit and debt—
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- May/29/23 7:59:36 p.m.
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Mr. Chair, again, the macroeconomic impact of any policy measure depends very much on the macroeconomic circumstance of the time. For us, compassion is important. Fiscal responsibility—
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- May/29/23 8:27:23 p.m.
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Mr. Chair, I will split my time three ways.
The finance minister said that, by exercising fiscal restraint, she would not pour fuel on the fire of inflation. She did a massive flip-flop from November and added an extra $60 billion of spending in her failed budget. Can she tell Canadian families how much that is going to cost each and every household in Canada?
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- May/29/23 8:29:21 p.m.
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Mr. Chair, I note that the Alberta MP and finance critic has refused to answer my question about Ukraine. This is an important point.
When it comes to fiscal responsibility, our AAA rating was reaffirmed by S&P after the budget was tabled.
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- May/29/23 8:30:18 p.m.
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Mr. Chair, let me point out that inflation has come down in Canada, from a high of 8.1% to 4.4%. When it comes to the budget, let me quote the former parliamentary budget officer, Kevin Page. He said we have a “credible fiscal policy” and that our “fiscal anchor of the”—
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- May/29/23 8:31:02 p.m.
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Mr. Chair, it is incontrovertible that Canada has a strong and responsible fiscal policy. That has been reiterated by S&P. We have the lowest deficit and the lowest debt-to-GDP ratio in the G7 and an AAA credit rating. Those are objective markers and not, frankly, partisan talking points from the Conservative—
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- May/29/23 8:32:16 p.m.
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Mr. Chair, we have been talking about fiscal responsibility. Let me quote the Parliamentary Budget Officer, who said, at the finance committee, “When looking at G7 countries, Canada compares very favourably on net debt-to-GDP.”
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- May/29/23 8:33:05 p.m.
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Mr. Chair, is that in 2022 or 2023?
We published a “Fiscal Monitor” last week, and it showed that our deficit for 2022-23 is likely to be lower than forecast. We forecast around $43 billion. We are now seeing it coming in at $40 billion or lower.
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- May/29/23 8:34:43 p.m.
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Mr. Chair, it went up from 42% to 43%, which is odd because, in this very House, the Minister of Finance said, “On this point, let me be very clear. We are absolutely determined that our debt-to-GDP ratio must continue to decline and our deficits must continue to be reduced. The pandemic debt we incurred to keep Canadians safe must be paid down. This is our fiscal anchor. This is a line we will not cross.”
Why did they cross the line?
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- May/29/23 8:35:10 p.m.
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Mr. Chair, I would like to quote someone who is not partisan and who has been respected by all members of the House as a fiscal expert, Kevin Page, who is the former parliamentary budget officer. This is what he had to say about our budget. He said that the 2023 budget has a “credible fiscal strategy”, and that “the government's fiscal anchor of a declining ratio is maintained”. This is a declining ratio over the framework, and, I want to point out, tripling—
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- May/29/23 8:39:52 p.m.
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Mr. Chair, I am not going to explain again how the estimates are prepared, but I will quote Kevin Page, a former parliamentary budget officer. He said that we have a credible fiscal strategy.
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- May/29/23 8:42:44 p.m.
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Mr. Chair, I am pleased to participate in this committee of the whole very late this evening.
I would like to start by saying that, over the past year, Canada has had the strongest economic growth in the G7 and that the growth of our economy in the first two months of this year exceeded experts' expectations. Today, some 900,000 more Canadians are working than at the beginning of the pandemic. That includes approximately 150,000 more Quebeckers with jobs and good paycheques.
Right now, the unemployment rate in Canada is 5%, which is very close to the country's all-time low. With a rate of close to 4.1%, Quebec is leading the way with the lowest unemployment rate in the entire country.
Against the backdrop of these economic factors, budget 2023, which our government tabled in March, came at a very important time. The budget sets out new targeted inflation relief measures for the most vulnerable Canadians.
We also implemented a new dental care plan that will benefit up to nine million Canadians. The federal government also made a major investment of nearly $200 billion to help save our health care system, which is under severe pressure. Thanks to the leadership of our Prime Minister and our government, we managed to sign that health agreement with all of the provinces, including Quebec.
The budget also contains transformative investments to build tomorrow's clean economy, fight climate change and create new opportunities for Canadian workers and businesses. It is a responsible fiscal plan that will help Canada maintain the lowest deficit and the lowest net debt-to-GDP ratio of any G7 country.
I would like to state the obvious. This spending is necessary. It is necessary not only to ensure the long-term growth and prosperity of our economy but also the quality of life that Canadians want and deserve. Our health care system is on the brink. We cannot put a price on access to health care in this country. It seems that all parties in this House, even the Conservatives, have agreed that the federal government should invest these sums that were provided in our budget in our health care system.
We cannot be blind to the changes in the global economy, or to the U.S. Inflation Reduction Act and the measures put in place by the Biden administration to attract green investments to the United States. Canada needed to and did respond. Like the experts have pointed out, these are investments in inflation relief for the most vulnerable, saving our health care system and building the economy of the future, which are targeted and will not meaningfully add to inflation.
In previous debates, I have already talked about the importance of tackling the climate crisis and highlighted our government's investments to accelerate our green transition. Now I would like to talk a little more about housing. This is the other issue I hear about when I am out and about in Quebec. Everyone should have a safe place to live, but for too many Canadians, the dream of owning a home is becoming increasingly out of reach.
As rental prices continue to rise across the country, this situation is undermining the financial stability of an entire generation. My riding, Outremont, is certainly no exception to this trend. Over the past four years, the average rent for a two-bedroom apartment in Montreal has risen by 26%, while the number of available units, especially affordable units, remains too low. The lack of affordable housing is having an impact on the Canadian economy.
Without more homes in our communities, it is hard for businesses to attract the people they need for the labour market. When people spend too much of their income on housing, they obviously have less money to spend in the small businesses in our neighbourhoods and in our local economies. That is why our government is tackling the housing crisis head-on.
That is also why I have been pulling out all the stops to have more new affordable housing built in Outremont. Of the many programs that make up our national housing strategy, I would like to specifically mention the rapid housing initiative. This is an innovative program based on a partnership with the provinces and municipalities to rapidly build new housing or acquire existing buildings and convert them to housing. It is a flexible program that responds to needs on the ground.
In my riding of Outremont, we have just unveiled a great project led by the Old Brewery mission under this program. Over 30 new housing units have been created on Parc Avenue in a former hotel. It is incredible. I had the opportunity to visit last week.
We were also able to inaugurate a new co-op at the MIL Campus in Montreal, once again in Outremont. That is nearly one hundred very affordable units next to a new Université de Montréal campus. As UDM rector Daniel Jutras so aptly put it, “We're building a university-focussed neighbourhood at the cutting edge of sustainable development, but also, and this is very important, a people-focussed neighbourhood. A place to meet, a place to live, a place of social diversity.” This is indeed a transformative project for the area.
I also realize that the Bank of Canada's interest rate increase had a direct impact on the housing crisis we are all experiencing. The higher interest rates make it harder for some people to pay their mortgage, especially if they have a variable rate mortgage, which is the case for nearly half of Canadians who currently have a mortgage.
Our government is taking measures to protect Canadian homeowners from rising rates and a possible correction of the housing market. That is why, this spring, the Financial Consumer Agency of Canada launched public consultations into a proposed guideline on existing mortgages for individuals in exceptional circumstances. This guideline states the agency's expectations of financial institutions to help consumers who are vulnerable to payment defaults on their mortgage because of exceptional circumstances, such as the combined effects of high household debt, the rapid increase of interest rates and the rising cost of living. This will help ensure that Canadians get fair and equitable access to relief measures without having to pay unnecessary penalties, excessive bank fees or interest charges, which will help more people deal with the high interest rates.
The government also committed to introducing a tax-free first home savings account, a new registered plan to give prospective first-time homebuyers the ability to save up to $40,000 on a tax-free basis. Like an RRSP, contributions are tax deductible, and withdrawals to purchase a first home are non-taxable, like a TFSA, so it is the best of both: tax-free in, tax-free out.
Budget 2023, delivered on this commitment, and financial institutions across Canada have been able to offer this tax-free first home savings account to Canadians as of April 1 of this past year.
I would also like to note that the budget implementation act that is currently before Parliament proposes to tax assignment sales to crack down on house flipping to help ensure homes are used for Canadian families to live in and not as a speculative financial asset class.
These measures are just part of our ongoing efforts to support Canadians with their most pressing needs, while also investing in the future of our economy.
With the Chair's permission, I also have a number of questions more specific to the two ministers who are here in committee of the whole with us.
I would like to, through you, ask if in the last few years Canadian consumers, and this is the case at least to my mind, have increasingly found themselves having to navigate the pains and, quite frankly, the financial burden of paying undisclosed junk fees? I use that term colloquially. They are hidden fees that obscure the true cost of products and services and potentially really undermine trust in various businesses.
For example, there are often instances of exorbitant roaming charges that the telecommunications industry uses. There are also the unexpected baggage fees in the aviation sector. These hidden charges not only increase the financial strain on Canadian consumers, but also create a climate of mistrust in the economy.
Given this growing concern that I have heard from my constituents, I wonder if the Minister of Tourism and Associate Minister of Finance could explain what measures the government is considering to increase transparency, safeguard consumer rights and ensure that the advertised pricing actually reflects what Canadians have to pay.
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- May/29/23 8:59:13 p.m.
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Mr. Chair, actually, that is not exactly what I said. I know that we need to invest in our economic capacity. However, I believe that fiscal responsibility is important. That is why I am so glad that S&P reaffirmed our AAA rating after I tabled the budget.
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- May/29/23 9:35:41 p.m.
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Madam Chair, since the member for Calgary Midnapore has taken the liberty of straying pretty far from fiscal matters, let me just say that I assume the official opposition is otherwise satisfied with Canada's fiscal position. That is a good thing.
I also want to ask her, as a really decent and honourable MP from Alberta, whether, having raised the Uyghur issue, she will condemn the pro-Putin statements by UCP members in Alberta.
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