Hon. Yonah Martin (Deputy Leader of the Opposition): My question is for the government leader in the Senate. Shortly after Minister Freeland delivered a budget full of inflationary spending, the inflation rate went up again. In its April report, Statistics Canada said Canadians paid over 28% more in mortgage interest costs that month, year over year. The International Monetary Fund, IMF, says Canada has the highest risk of mortgage defaults among advanced economies. This warning was delivered before the Bank of Canada raised the benchmark rate again, to 4.75%.

On Tuesday, our banking regulator told the banks to put aside more money in their “rainy-day funds” to cover defaults amid high household debt and high interest rates.

Leader, why doesn’t the Trudeau government recognize that spending fuels higher inflation and interest rates, which are sending mortgage payments sky-high?

Hon. Marc Gold (Government Representative in the Senate): Thank you for your question. Respectfully, the government is not of the view that its spending has, in fact, had those results. Paul Vieira reported that the economists at Desjardins Securities were quite clear in their analysis of the budget that the spending announced in the budget was not especially inflationary.

It is true that Canadians are suffering from high mortgage costs and high interest rates. This is a function of factors that go far beyond the government’s spending. Again, in the interest of respecting that my answers be short, I will refrain from citing all the examples that Mr. Vieira cited of why the economy of Canada is on a very sustainable and good track, despite the problems.