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Results: 46 - 60 of 120
View Marty Morantz Profile
CPC (MB)
Madam Speaker, in my short time as an MP, so much has changed in our country and in our world. I could not help but be reminded of Shakespeare’s Julius Caesar, when Brutus says, “There is a tide in the affairs of men, which, taken at the flood, leads on to fortune.... On such a full sea are we now afloat, and we must take the current when it serves, or lose our ventures.”
As legislators, it is time to recognize that we are in the throes of history. What we decide today will either lead us to future success or down a dangerous path. I am saddened to say that the path this budget presents is one that could really lead our country into peril. Even before the pandemic, the government’s vacuous promise to balance the budget by 2019 had long been abandoned and broken. Canada’s debt had risen, and a view of the horizon displayed a sea of deficits and red ink for years to come. The cupboard had already been spent bare.
By June 2020, Fitch had already downgraded our national credit rating. Standard & Poor's was warning at the same time that it could also downgrade us at some point over the next couple of years “should the deterioration in the government's fiscal position become more severe and prolonged than we currently expect.” I think we can safely say that Canada's fiscal position is more severe and prolonged. Credit rating agencies do not react well to vast, irresponsible spending with absolutely no plan to return to balance. Based on what I see in this budget, the government could not care less what the credit rating agencies think. There are real consequences to being downgraded. It means more difficulty borrowing and higher interest rates.
The government has at best treated any fiscal anchors with disdain, and they are in fact absent from this budget. From breaking promises to balance the budget by 2019 to maintaining a decreasing debt-to-GDP ratio, these measures were simply ignored. The lack of fiscal responsibility has been absolutely staggering, and all Canadians should be very worried about what is coming next.
I want to be clear, because the government will say that surely I am not saying I would not have protected Canadians during the pandemic. I am not saying that; I am saying that things could have been done far better. I believe the Conservatives would have avoided many of the errors in the emergency programs that we have seen. There were so many obvious errors that led to gaps in the commercial rent subsidy, the wage subsidy and the CEBA, leaving so many Canadians out in the cold. Some of these errors border on negligence at worst and incompetence at best. It took our continued efforts to point out these errors time and again before the government made necessary changes.
My caution today has to do with interest rates. I really want to talk about interest rates because the rationale used by the Minister of Finance for this massive past and future spending has been that interest rates are historically low. On Monday, she said, “In today’s low interest rate environment, not only can we afford these investments, it would be short-sighted of us not to make them.” She was basically telling us that it would be irresponsible not to borrow.
All this new debt presents huge risks in reality that vulnerable Canadians just cannot take in this precarious time we are in now. This abandonment of prudent financial management without sound fiscal anchors should worry future generations. The Liberals are literally rolling the dice, playing with real lives and gambling that interest rates will not rise.
What my colleagues across the way fail to mention is that the government does not entirely control these rates. Market forces also establish interest rates. Just ask former prime minister Paul Martin, who, as the finance minister in 1995, brought in the most draconian budget in Canadian history, actually cutting health transfers to provinces. It took Martin’s 1995 budget, with its $25 billion in cuts, to address the problem head-on. Canada was so substantially downgraded by the credit rating agencies in the mid-1990s that in June 1995 The Wall Street Journal called Canada “an honorary member of the Third World”. That year, the federal budget included cuts of over 10% in total spending. It slashed national defence, customs and immigration spending. It reduced the size of the civil service. Health care transfers were slashed, and other things as well. This, I might add, was all under a Liberal government.
In 1995, the bank rate was 7.31% and Canada was in a full-blown debt crisis. In justifying these massive cuts, Mr. Martin said:
There are times in the progress of a people when fundamental challenges must be faced, when fundamental choices made, and new course charted. For Canada, this is one of those times. Our resolve, our values, our very way of life as Canadians are being tested. The choice is clear.
Those are prophetic words. I fear that with the magnitude of new spending in the budget, the government will likely lead us down a path into a new debt crisis. For my colleagues across the way, if they really think this cannot happen again, they have their heads in the sand.
Governments around the world, including Canada, have engaged in trillions in quantitative easing. This printing of money has diluted the money supply across the globe.
Historically, as economies recover from crises like these, inflation takes hold and interest rates rise. With a debt approaching $1.2 trillion, an interest rate of 7.31% today would cost roughly $80 billion a year. That amount represents nearly two full years of health care transfers to every single province.
The budget is a let down for Canadians. It represents misguided and risky spending from a government that does not seem to understand we cannot keep running the printing press and ratcheting up the credit card bill.
Since 2015, I have heard countless concerns about the government's blatant disregard for fiscal prudence, and this budget is just more evidence of it. When I talk to small business owners in my community, they do not just go and borrow money without having an eye on the future. They take into account the impact of what an increase in interest rates would actually mean.
The government likes to say that it took on debt so Canadians did not have to. That is a good one, but it is simply not true. In reality, this debt has to be paid for by Canadian taxpayers and the future ones to come.
What the government has really done is use the credit card of future generations to put them deeper into debt, which can only be repaid at the end of the day by higher taxes or program cuts, as the example Mr. Martin put forward clearly substantiates.
Every man, woman and child in Canada each now owes over $33,000 in debt. There are 82,574 people in my riding. Thanks to the government’s cavalier spending, my community now owes $2,724,942,000 in federal debt. Workers in my community who are struggling to get back to work needed a real plan to get them back on their feet, and I have already heard from many who are deeply disappointed. Stripped of their wages and their hours slashed, they were absolutely desperate to see a plan and leadership to help them find their way back.
For example, I cannot help but think of aviation workers at the Winnipeg airport who have been pleading for support and are continually let down.
Our party’s leader has put forward a bold plan, Canada’s recovery plan. This plan is what real leadership looks like. It will create financial security and certainty, secure our future and deliver a Canada where those who have been hurt financially by this pandemic can get back to work.
This is all about securing good jobs for Canadians, securing the manufacturing industry in Canada, securing our economy and leading people out of the darkness and back into the light. Highly respected Canadian economist Jack Mintz said,
“[The] Minister of Finance...argues higher debt loads will be easily manageable over the next five years. But they put Canada at risk. Large primary deficits in the next several years and rising interest rates will destroy the fiscal firepower we would need should another recession come our way.”
I ask the Minister of Finance to heed these warnings and learn from our history so it does not repeat itself. However, mostly I ask, for the sake of all Canadians, that she take the tide that leads on to fortune.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-04-20 10:22 [p.5828]
Madam Speaker, I am pleased to rise in this House again to continue to respond to the 2021 budget that was tabled by the federal government yesterday.
As so many parliamentarians, members of the media, stakeholders and even some ordinary Canadians have done, I too have spent hours poring over the contents and the backgrounders, the annexes and other finer details of this budget. Since this is the first budget we have seen in over two years, to be true, a dubious record for Canada, and given the unprecedented health and economic circumstances we are in, I was very eager to receive and review the budget to determine what it would mean for Canadians in the short, medium and long term.
Before I get into the details, let me once again congratulate my colleague the Minister of Finance for making history yesterday as the first female finance minister to table a budget in this House. As I said yesterday, this consequential achievement is long overdue. My four daughters will undoubtedly take inspiration from her.
That said, they certainly will not take inspiration from the budget that the minister has laid before us. This is by far the biggest-spending budget in the history of our nation. It has delivered an avalanche of spending the likes of which our country has never seen before, and yet for many this budget will be a major letdown.
With well over two years since the last budget, the government has had ample time to get this right. For way too long, Canadians have been left without a comprehensive plan for our economy to guide us through what has now become the stormiest season of our lifetime. One would have expected that, with so much time to prepare, the government would have offered Canadians renewed hope and confidence that a secure future would still be theirs. One would have expected a revised and hopefully more effective plan to get Canadians vaccinated in short order. One would have expected a clear plan to safely reopen our economy and get Canadians back to work again. One would have also expected a bold strategy to help struggling small businesses back on their feet again. Finally, one would have expected a responsible government to come forward with a credible plan to manage the massive financial consequences of this COVID pandemic, consequences that future generations of Canadians will be saddled with and have to pay for.
Those who were hoping to see these things in the budget will surely be disappointed. This not a budget that has been developed to fight the pandemic; this budget was developed to help Liberals fight an election. Of that, there can be no doubt.
To be sure, there are a number of positive measures in this budget, some of which we will undoubtedly support and promote, especially those that continue to help Canadians through this very difficult time and also those investments that secure our long-term prosperity. They should expect our support for those.
For example, we are pleased to see that the government listened to us and to the many business organizations across Canada and extended the Canada emergency wage and rent subsidies. We are supportive of a number of important small business measures, such as the new hiring incentive program, the promise of lower credit card processing fees, and supports to help businesses move online in a digital economy.
Sadly, what is completely missing from this budget is emergency support for new businesses, which have somehow fallen through the cracks because in early 2020 they did not yet have the established revenues to qualify for the government's emergency support measures. They are still falling through the cracks.
We also support the introduction of a policy that would allow companies to expense the full value of qualified capital investments in the same fiscal year in order to encourage companies to reinject their corporate savings back into our economy on an expedited basis. We welcome the extension of the student loan interest waiver and the making of additional investments in broadband to improve connectivity within Canada.
Similarly, we welcome additional steps to eliminate the interprovincial trade barriers that measurably undermine our economic growth. We also support the decision to extend sick leave for seriously ill Canadians to 26 weeks. This is precisely the type of spending we are inclined to endorse.
We Conservatives have consistently supported the government in its efforts to help Canadians through the health and economic crisis of our lifetime, and members can be sure we will continue to do so, but there is more to a federal budget than just borrowing and spending. Budgets are about promoting economic growth, including the setting of priorities. They are about exercising fiscal prudence and probity and delivering to future generations a bright and economically sustainable future, and that is what is missing in this budget.
In the lead-up to budget day, we provided both the Prime Minister and his finance minister with a list of must-haves for this budget for the government to win our support. These were measures that we believed were absolutely essential to safely reopen our economy, get Canadians back to work again and provide future generations with the hope and confidence that they can still live out their Canadian dream. As I mentioned, a number of these measures have made their way into the budget. It is amazing what happens when the official opposition does its job by prodding and poking the government from time to time, so I commend the minister for acting upon at least some of our asks.
However, instead of creating a sustainable road map for economic recovery, and I emphasize the word “sustainable”, this budget appears to represent a wasted opportunity to do right by future generations of Canadians. It does not deliver a comprehensive plan to position our economy for long-term success. Spending a loan is not an economic plan. The budget fails to sufficiently address the most important structural weaknesses in our economy, including our declining productivity. Nowhere does it meaningfully address the dramatic flight of foreign capital from our country, nor does it commit to comprehensive regulatory and tax reform.
This budget is notable for its marked pivot away from our natural resource sector, another vote of non-confidence in a sector whose contributions to our national prosperity have been immense over the years. There is no mention of our world-leading and ethical oil and gas sector. There is no critical minerals strategy, just half-hearted measures about consultations, research and a centre of excellence. The government's failure to meaningfully address the skyrocketing cost of housing means that millions of Canadians will see their dream of owning a home slip through their fingers. This is another failure.
Some two billion dollars' worth of trade crosses our common border with the U.S. every day, yet the budget scarcely touches on border security and trade facilitation, and it makes no mention whatsoever of what steps are being taken to plan for an eventual safe reopening of our border. The budget also fails to measurably address the state of Canada's health care and, most importantly, the mental health wall that our country faces. Fortunately, our Conservative leader has identified this significant vulnerability and has committed to addressing this challenge in a future Conservative government.
We had called for the current Liberal government to stop supporting and investing taxpayers' money in the Asian Infrastructure Investment Bank, which is an institution that delivers no meaningful or measurable benefit to Canadians. With Canada's current bilateral relationship with China in utter disrepair, giving taxpayers' money to this China-led organization is completely futile, indefensible and unacceptable. Did the minister respond to our request? No. For the Liberal government, it is business as usual with the communist regime in Beijing.
We are judging the government's budget not on the quantity but on the quality of its spending. Based on that standard, we have found this budget to be wanting. Notwithstanding the additional benefits that the budget would deliver for Canadians who continue to struggle through this pandemic, measures which we support, it is enormously expensive, as members know, and it would dramatically expand the role of government in the lives of Canadians.
Last year's deficit will be a staggering $354 billion, and the government has no plan whatsoever to eliminate its deficits. Our national debt is expected to reach $1.4 trillion this year, with the government signalling that this debt is likely to hit an eye-popping $1.8 trillion by 2025. That is why the Liberals asked for an increase in the debt ceiling to $1.83 trillion.
Presumably with this in mind, the Prime Minister gave the finance minister a revised mandate letter in which he laid out three clear directives to safeguard our national finances. Those directives were: first, avoid creating new permanent spending; second, review Canada's debt management strategy; and third, present a new fiscal anchor. That is the standard the Prime Minister himself has set, and Canadians should be able to take him at his word. Therefore, we are going to measure this budget against that standard.
How did the Prime Minister and his finance minister do?
Let us look for a moment at permanent spending. Remember that the finance minister was instructed to have no new permanent spending. Instead of complying with the Prime Minister's instructions and mitigating against the immense financial challenge facing our country, the finance minister and her government have triggered a plethora of new permanent spending commitments that will likely hobble the prosperity of generations for years to come and mean massive new taxes under the Liberal government.
Similarly, the minister's half-hearted attempt to present a debt management strategy falls far short of the rigour expected of an accountable and responsive government. Indeed, the budget failed to justify why the minister felt that further economic stimulus in the amount of $100 billion was needed when GDP growth has strongly rebounded. She should be happy about that. Preloaded stimulus is the form of savings is primed for release. American stimulus and infrastructure investments well north of $4 trillion are ready to wash over into our economy.
Then we found out in the budget and from exceedingly frank finance officials that much of the stimulus was not stimulus at all. It was emergency support funding, much of which we support, and it was programming that bore absolutely no relation whatsoever to stimulating the economy. Imagine our surprise when a departmental official opined “Oh well, all government spending is stimulus.” No, it is not. All the minister had to do was be transparent about her $100 billion, as we would likely support a number of the initiatives that this fund would support. However, we know that there is an election around corner, and it is now very clear that this funding of $100 billion is simply intended to stimulate the re-election of the government.
Then there is the Prime Minister's directive to present a new fiscal anchor. It was very clear to the finance minister that she present a new fiscal anchor.
The minister referenced that anchor on page 53 of her budget. That is another fail. The closest this anchor comes to being a true anchor is its vague commitment to “reducing the federal debt as a share of the economy over the medium-term.” That is it. That is not a new anchor. That was the government's own anchor, the debt-to-GDP ratio, except that this one, the so-called new one, does not even have a target and will tempt the government to run up further debt in the years to come.
As the Prime Minister blithely stumbles into the fiscal unknown, Canadians should take little comfort in the government's promises to manage our debt and get our deficit situation under control.
Based on the Prime Minister's own mandate instructions to his minister, this budget must be considered a fail.
I began my speech by saying that I was very eager to review the budget to determine what it would mean for Canadians in the short, medium and long term. In the short term, yes, there are a number of investments and programs that will help Canadians make it through this economic and health crisis. We are supportive of many of those measures. However, in the medium and especially the long term, there is very little to get excited about, just endless debt and deficits with not even a pretense of the Liberal government ever wanting to return to a balanced state, even in the long term.
As a responsible official opposition, we are still carefully reviewing and analyzing the budget and we will discuss it with our caucus tomorrow before casting final judgment on it. Suffice it to say that, so far, I am not encouraged.
One thing Canadians can be confident of, absolutely confident of, is that a Conservative government, led by the member for Durham, will implement a true Canada recovery plan that secures our future by getting Canadians back to work, by helping small businesses recover, by restoring Canada's reputation and competitive advantage and by prudently managing the massive financial burden with which the pandemic has left us. The Conservatives have done this before; they will do it again.
I therefore move:
That the motion be amended by deleting all the words after the word 'That' and substituting the following:
“given that the budget:
(a) adds over half a trillion dollars in new debt that can only be paid through higher job-killing taxes;
(b) contains over $100 billion for a re-election fund while doing nothing to secure the long-term prosperity of Canadian; and
(c) fails to rule out the introduction of capital gains taxes on the principal residences of Canadians, currently being studied by Canadian Mortgage and Housing Corporation, as a way to pay for the government's spending;
the House demand that the Liberal government's budget be revised in order to focus on accelerating the vaccination plan to end the dangerous third wave of the COVID-19 pandemic and policies that will create jobs and stimulate economic growth
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-04-20 14:41 [p.5868]
Mr. Speaker, three months ago the Prime Minister gave the finance minister a mandate letter, instructing her to do three things: first, avoid creating new permanent spending; second, review Canada's debt management strategy; and, third, present a new fiscal anchor.
That is the standard the Prime Minister set himself, and yet the minister followed none of them. Her budget contains massive permanent spending, the debt is out of control, and our only fiscal anchor is a floating one.
Why did the minister ignore these directives, and is she going to ignore future ones as well?
View Chrystia Freeland Profile
Lib. (ON)
Mr. Speaker, our budget sets out a prudent and sustainable fiscal path. We set out a clear fiscal anchor.
We commit to a declining debt-to-GDP ratio, and to unwinding the COVID deficits. By 2025-26, the debt-to-GDP ratio will be 49.2%, and the deficit will be 1.1%.
Canada's debt-to-GDP ratio continues to be the lowest in the G7.
View Luc Berthold Profile
CPC (QC)
View Luc Berthold Profile
2021-04-20 15:54 [p.5878]
Madam Speaker, the election budget that the Minister of Finance presented yesterday is missing three things that were in the minister's mandate letter: avoid creating new permanent spending, review the debt management strategy and present a new fiscal anchor.
Could my colleague tell me what is meant by the term “fiscal guardrails” in the budget presented yesterday? Is this term meant to be the same thing as the new fiscal anchor mentioned in the Minister of Finance's mandate letter?
View Arif Virani Profile
Lib. (ON)
View Arif Virani Profile
2021-04-20 15:55 [p.5878]
Madam Speaker, I thank my colleague for his question. I will do my best to answer in French.
With respect to the Minister of Finance's mandate letter, all I can do is repeat what the minister herself said today during question period.
We will reduce the debt-to-GDP ratio so that it reaches below 50%. Also, what we have targeted is a deficit that will hit just over 1% of GDP by 2025. What is important is that while some of the program spending is meant to be long-term, the large majority of it is for a three-year period, which is exactly what we committed to in the fall economic statement, and we are staying true to those words by targeting the bulk of the spending for the next three years only.
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2021-04-20 16:15 [p.5881]
Madam Speaker, today is an occasion for us to pay a visit to the newly renewed popular idea called “modern” monetary theory. We put “modern” in quotation marks because it is a very old idea. It is thousands of years old, if the truth be told, but once again it is being presented as new.
Modern monetary theory is the idea that governments can spend as much as they want, and to pay for it they simply print the cash. They create the money because, of course, the bank, which it owns, in our case the Bank of Canada, has a monopoly on the creation of that currency. Why not just create more money in order to spend it?
The only limit on the amount that can be spent is when said money creation leads to inflation, at which point modern monetary theorists say the solution is to simply raise taxes to reduce the demand that was driving up the inflation in the first place. Once too much of that printed money starts chasing too few goods, the government taxes the money back and slows down the inflation. Effectively, it is a roundabout way to massively expand government up front while claiming there is no cost, and then, when prices spiral out of control, to try to tax them back into submission.
The government and the finance minister claim they do not believe in modern monetary theory, but we have to suspect that the minister believes in some version of it because she has imposed literally no limit whatsoever on her spending in the form of a fiscal anchor. There is only one difference between her version of modern monetary theory and its original theorists. The original proponents said that banks should simply give the money to the government to spend, whereas under the current model the government has set up, the bank sells the debt to the marketplace and then buys it right back at a higher price only weeks later, to the great profit of the investors with whom it carried out that transaction.
All of this sounds magical, as we are creating something from nothing, but as it has been said, there is nothing new except what is forgotten. To quote Reinhart and Rogoff, two Harvard professors who have studied 800 years of debt crises, “Early on across the world, as already noted, the main device for defaulting on government obligations was that of debasing the content of the coinage. Modern currency presses are just a technologically advanced and more efficient approach to achieving the same end.”
Perhaps the most creative of all of the modern monetary theorists was an emperor named Dionysius, from 2,500 years ago. He thought it was a modern idea then too. He was the dictator of the city state of Syracuse, and of course because of all of his sumptuous living and his ridiculous war fighting, he needed cash. He took the drachmas from his people, and on every one-drachma coin he stamped the number two. Then all of a sudden he had twice as much money.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-04-19 14:45 [p.5807]
Mr. Speaker, I see there is no debt management strategy.
The Prime Minister also told his minister to present “a new fiscal anchor”.
The Liberals have tried to manage this pandemic and its massive financial consequences without a clear set of rules. We have spent more per capita but achieved less than any other major developed country. Meanwhile, future generations of Canadians fear they will be left to pick up the tab.
I ask the minister this: Will her budget include a meaningful fiscal anchor, or does her Prime Minister still believe that budgets balance themselves?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-04-19 14:45 [p.5808]
Mr. Speaker, the hon. member's world view is patently ridiculous when he outlines it in that question. The reality is, he sees the cost of our response but not the value and the measures we have advanced to support Canadian households and businesses. He ignores the fact that inaction in the face of this once-in-a-century public health and economic emergency would have had a cost that was far greater than supporting Canadian households and businesses.
I would direct the member not to my own words but to the recent report of the IMF, which indicated that if our government had not taken such quick and decisive action at the outset of this pandemic, our debt would remain the same size but there would be economic scarring that we would pay for—
View Chrystia Freeland Profile
Lib. (ON)
moved:
That this House approve in general the budgetary policy of the government.
She said: Mr. Speaker, pursuant to Standing Order 83(1), I would like to table, in both official languages, the budget documents for 2021, including the notices of ways and means motions.
The details of the measures are included in these documents.
Pursuant to Standing Order 83(2), I am requesting that an order of the day be designated for consideration of these motions.
I would like to begin by taking a moment to mourn the tragedy in Nova Scotia a year ago yesterday. We grieve with the families and friends of the 22 people who were killed, and all Nova Scotians.
This is also a day when people across Canada are fighting the most virulent wave of the virus we have experienced so far. Health care workers in many provinces are struggling to keep ICUs from overflowing and millions of Canadians are facing stringent new restrictions.
We are all tired, frustrated and even afraid, but we will get through this. We will do it together.
This budget is about finishing the fight against COVID. It is about healing the economic wounds left by the COVID recession. And it is about creating more jobs and prosperity for Canadians in the days—and decades—to come.
It is about meeting the urgent needs of today and about building for the long term. It is a budget focused on middle-class Canadians and on pulling more Canadians up into the middle class. It is a plan that embraces this moment of global transformation to a green, clean economy.
This budget addresses three fundamental challenges.
First, we need to conquer COVID. That means buying vaccines and supporting provincial and territorial health care systems. It means enforcing our quarantine rules at the border and within the country. It means providing Canadians and Canadian businesses with the support they need to get through these tough third wave lockdowns and to come roaring back when the economy fully reopens.
Second, we must punch our way out of the COVID recession. That means ensuring lost jobs are recovered as swiftly as possible and hard-hit businesses rebound quickly. It means providing support where COVID has struck the hardest to women, to young people, to low-wage workers and to small and medium-sized businesses, especially in tourism and hospitality.
The final challenge is to build a more resilient Canada: better, more fair, more prosperous and more innovative. That means investing in Canada's green transition and the green jobs that go with it, in Canada's digital transformation and Canadian innovation, and in building infrastructure for a dynamic growing country. It means providing Canadians with social infrastructure from early learning and child care to student grants and income top-ups, so that the middle class can flourish and more Canadians can join it.
Our elders have been this virus's principal victims. The pandemic has preyed on them mercilessly, ending thousands of lives and forcing all seniors into fearful isolation. We have failed so many of those living in long-term care facilities. To them, and to their families, let me say this: I am so sorry. We owe you so much better than this.
That is why we propose a $3-billion investment to help ensure that provinces and territories provide a high standard of care in their long-term care facilities.
And we are delivering today on our promise to increase old age security for Canadians 75 and older.
Our government has been urgently procuring vaccines since last spring and providing them at no cost to Canadians. Nearly 10 million Canadians have received at least one dose of vaccine. By the end of September, Canada will have received 100 million doses, enough to fully vaccinate every adult Canadian.
We need to be ready for new variants of COVID, and we must have the booster shots that will allow us to keep them in check. That is why we are rebuilding our national biomanufacturing capacity so that we can make these vaccines here in Canada. Canada has brilliant scientists and entrepreneurs. We will support them with an investment of $2.2 billion in biomanufacturing and life sciences.
When COVID first hit, it pushed our country into its deepest recession since the Great Depression. But this is an economic shock of a very particular kind. We are not suffering because of endogenous flaws or imbalances within our economy. Rather, the COVID recession is driven by an entirely external event—like the economic devastation of a flood, blizzard, wildfire or other natural disaster. That is why an essential part of Canada's fight against COVID has been unprecedented federal support for Canadians and Canadian businesses.
We knew Canadians needed a lifeline to get through the COVID storm. And our approach has worked. Canada's GDP grew by almost 10% in the fourth quarter of last year. We will continue to do whatever it takes. Our government is prepared to extend support measures, as long as the fight against this virus requires.
As Canada pivots to recovery, our economic plan will, too.
We promised last year to spend up to $100 billion over three years to get Canada back to work and to ensure the lives and prospects of Canadians were not permanently stunted by this pandemic recession. This budget keeps that promise. All together, we will create nearly 500,000 new training and work experience opportunities for Canadians. We will fulfill our throne speech commitment to create one million jobs by the end of this year.
Some people will say that our sense of urgency is misplaced. Some will say that we are spending too much. I ask them this. Did they lose their jobs during a COVID lockdown? Were they reluctantly let go by their small business employers that were like a family to them but simply could not afford their salary any longer? Are they worried that they will be laid off in this third wave? Are they mothers who were forced to quit the dream job they fought to get because there was no way to keep working while caring for their young children? Did they graduate last spring and are still struggling to find work? Is their family business, launched perhaps by their parents, which they hope to pass on to their children, now struggling under a sudden burden of debt and fending off bankruptcy through sheer grit and determination every day?
If COVID has taught us anything, it is that we are all in this together. Our country cannot prosper if we leave hundreds of thousands of Canadians behind.
The world has learned the lesson of 2009, the cost of allowing economic hardship to fester. In some countries, democracy itself has been threatened by that mistake. We will not let that happen in Canada.
About 300,000 Canadians who had a job before the pandemic are still out of work. More Canadians may lose their jobs in this month's lockdowns. To support Canadian workers as we fight the third wave, and to provide an economic bridge to a fully recovered economy, we will build on the enhancements we have made during the pandemic.
We will maintain flexible access to EI benefits for another year, until the fall of 2022. The Canada recovery benefit, which we created to support Canadians not covered by EI, will remain in place through September 25 and extend an additional 12 weeks of benefits to Canadians. As our economy fully reopens over the summer, the benefit amount will go to $300 a week, after July 17.
Low-wage workers in Canada work harder than anyone else in this country, for less pay. In the past year they have faced both significant infection risks and layoffs. And many live below the poverty line, even though they work full-time. We cannot ignore their contribution and their hardship—and we will not. We propose to expand the Canada workers benefit, to invest $8.9 billion over six years in additional support for low-wage workers—extending income top-ups to about a million more Canadians and lifting nearly 100,000 people out of poverty. And this budget will introduce a $15-an-hour federal minimum wage.
COVID has exposed the dangerous inadequacy of sickness benefits in Canada. We will do our part and fulfill our campaign commitment by extending the EI sickness benefit from 15 to 26 weeks.
We know the pandemic has exacerbated systemic barriers faced by racialized Canadians, so budget 2021 provides additional funding for the Black entrepreneurship program as well as an investment in a Black-led philanthropic endowment fund to help fight anti-Black racism and improve social and economic outcomes in Black communities.
One of the most striking aspects of the pandemic has been the historic sacrifice young Canadians have made to protect their parents and grandparents. Our youth have paid a high price to keep the rest of us safe. We cannot, and will not, allow young Canadians to become a lost generation. They need our support to launch their adult lives and careers in post-COVID Canada, and they will get it. We will invest $5.7 billion over five years in Canada's youth; we will make college and university more accessible and affordable; we will create job openings in skilled trades and high-tech industries; and we will double the Canada student grant for two more years while extending the waiver of interest on federal student loans through March 2030. More than 350,000 low-income student borrowers will also have access to more generous repayment assistance.
COVID has brutally exposed something women have long known. Without child care, parents, usually mothers, cannot work. The closing of our schools and day cares drove women's participation in the labour force down to its lowest level in more than two decades. Early learning and child care has long been a feminist issue. COVID has shown us that it is an urgent economic issue too.
I was two years old when the Royal Commission on the Status of Women urged Canada to establish a universal system of early learning and child care. My mother was one of Canada's redoubtable second wave of feminists who fought and, outside Quebec, failed to make that recommendation a reality. A generation after that, Paul Martin and Ken Dryden tried again.
This half-century of struggle is a testament to the difficulty and complexity of the task, but this time we are going to do it. This budget is the map and the trailhead. There is agreement across the political spectrum that early learning and child care is the national economic policy we need now. This is social infrastructure that will drive jobs and growth. This is feminist economic policy. This is smart economic policy. That is why this budget commits up to $30 billion over five years, reaching $9.2 billion every year permanently, to build a high quality, affordable and accessible early learning and child care system across Canada.
This is not an effort that will deliver instant gratification. We are building something that, of necessity, must be constructed collaboratively and for the long term, but I have confidence in us. I have confidence that we are a country that believes in investing in our future, in our children and in our young parents.
Here is our goal: five years from now, parents across the country should have access to high quality early learning and child care for an average of $10 a day. I make this promise to Canadians today, speaking as their finance minister and as a working mother. We will get it done.
In making this historic commitment, I want to thank the visionary leaders of Quebec, particularly Quebec's feminists, who have shown the rest of Canada the way forward. This plan will, of course, also provide additional resources to Quebec, which might well use them to further support an early learning and child care system that is already the envy of the rest of Canada and, indeed, much of the world.
Small businesses are the vital heart of our economy and they have been the hardest hit by the lockdowns. Healing the wounds of COVID requires a rescue plan for them.
Budget 2021 proposes to extend the wage subsidy, rent subsidy and lockdown support for businesses and other employers until September 25, 2021, for an estimated total of $12.1 billion in additional support. To help the hardest-hit businesses pivot back to growth, we propose a new Canada recovery hiring program, which will run from June to November and will provide $595 million to make it easier for businesses to hire back laid-off workers or to bring on new ones.
However, our government will do much more than execute a rescue. With this budget, we will make unprecedented investments in Canada's small businesses, helping them to invest in new technologies and innovation. We will invest up to $4 billion to help up to 160,000 small and medium-sized businesses buy and adopt the new technologies they need to grow.
The Canada digital adoption program will provide businesses with the advice and help they need to get the most out of these new technologies by training 28,000 young Canadians, a Canadian technology corps, and sending them out to work with our small and medium-sized businesses. This groundbreaking program will help Canadian small businesses go digital and become more competitive and efficient.
Increased funding for the venture capital catalyst initiative will help provide financing to innovative Canadian businesses, so they can grow.
We will also encourage businesses to invest in themselves. We will allow immediate expensing of up to $1.5 million of eligible investments by Canadian-controlled private corporations in each of the next three years. These larger deductions will support 325,000 businesses in making critical investments and will represent $2.2 billion in total savings to them over the next five years.
Building for the future means investing in innovation and entrepreneurs, so we propose to invest in the next phase of the pan-Canadian artificial intelligence strategy and to launch similar strategies in genomics and quantum science, areas where Canada is a global leader.
In 2021, job growth means green growth. This budget sets out a plan to help achieve GHG emissions reductions of 36% from 2005 levels by 2030 and puts us on a path to achieve net-zero emissions by 2050. It puts in place the funding to achieve our 25% land and marine conservation targets by 2025.
By making targeted investments in transformational technologies, we can ensure that Canada benefits from the next wave of global investment and growth.
The resource and manufacturing sectors that are Canada's traditional economic pillars—energy, mining, agriculture, forestry, steel, aluminum, autos, aerospace—will be the foundation of our new, resilient and sustainable economy. Canada will become more productive and competitive by supplying the green exports the world wants and needs.
That is why we propose a historic investment of a further $5 billion over seven years, starting in 2021-22, in the net zero accelerator. With this added support, on top of the $3 billion we committed in December, the net zero accelerator will help even more companies invest to reduce their greenhouse gas emissions, while growing their businesses.
We will propel a green transition through new tax measures, including for zero-emissions technology, carbon capture and storage, and green hydrogen. We are at a pivotal moment in the green transformation. We can lead or we can be left behind. Our government knows that the only choice for Canada is to be in the vanguard.
Our growing population is one of our great economic strengths and a growing country needs to build. We need to build housing. We need to build public transit. We need to build broadband. We need to build infrastructure. We will. We will invest $2.5 billion, and reallocate $1.3 billion in existing funding, to help build, repair and support 35,000 housing units. We will support the conversion to housing of the empty office space that has appeared in our downtown areas by reallocating $300 million from the rental construction financing initiative.
Houses should not be passive investment vehicles for offshore money. They should be homes for Canadian families. Therefore, on January 1, 2022, our government will introduce Canada's first national tax on vacant property owned by non-resident non-Canadians.
Strong, sustained growth also depends on modern transit. That is why, in February, we announced $14.9 billion over eight years to build new public transit, electrify existing transit systems, and help to connect rural, remote and indigenous communities.
Therefore we are committing an additional $1 billion over six years for the universal broadband fund, to accelerate access to high-speed internet in rural and remote communities.
We intend to draw even more talented, highly skilled people to Canada, including international students. Investments in this budget will support an immigration system that is easier to navigate, more efficient and more efficient in welcoming the dynamic new Canadians who add to Canada's strength.
Our government has made progress in righting the historic wrongs in Canada's relationship with indigenous peoples, but we still have a lot of work ahead. It is important to note that indigenous peoples have led the way in battling COVID. Their success is a credit to indigenous leadership and self-governance.
We will invest more than $18 billion to further narrow gaps between indigenous and non-indigenous peoples, to support healthy, safe and prosperous indigenous communities and to advance reconciliation with first nations, Inuit and the Métis nation. We will invest more than $6 billion for infrastructure in indigenous communities and $2.2 billion to help end the national tragedy of missing and murdered indigenous women and girls.
This has been a year when we have learned that each of us truly is our brother's and our sister's keeper. Solidarity is getting us through this pandemic, and solidarity depends on each of us bearing our fair share of the collective burden. That is why, now more than ever, fairness in our tax system is essential.
To ensure our system is fair, this budget will invest in the fight against tax evasion, shine a light on beneficial ownership arrangements, and ensure that multinational corporations pay their fair share of tax in Canada.
Our government is committed to working with our partners at the OECD to find multilateral solutions to the dangerous race to the bottom in corporate taxation. That includes work to conclude a deal on taxing large digital services companies.
We are optimistic that such a deal can be reached this summer. Meanwhile, this budget reaffirms our government's commitment to impose such a tax unilaterally, until an acceptable multilateral approach comes into effect.
It is also fair to ask those who have prospered in this bleak year to do a little more to help those who still need help. That is why we are introducing a luxury tax on new cars and private aircraft worth more than $100,000 and pleasure boats worth more than $250,000.
This budget lives up to our promise to do whatever it takes to support Canadians in the fight against COVID, and it makes significant investments in our future. All of this costs a lot of money, so it is entirely appropriate to ask, “Can we afford it?” We can, and here is why.
First is because this is a budget that invests in growth. The best way to pay our debts is to grow our economy. The investments this budget makes in early learning and child care, in small businesses, in students, in innovation, in public transit, in housing, in broadband and in the green transition are all investments in jobs and growth. We are building Canada's social infrastructure and our physical infrastructure. We are building our human capital and our physical capital. Canada is a young, vast country with a tremendous capacity for growth. This budget would fuel that. These are investments in our future and they will yield great dividends. In fact, in today's low-interest rate environment, not only can we afford these investments, it would be shortsighted of us not to make them.
Second is because our decision last year to support Canadians is already paying off. Decisive action prevented economic scarring in our businesses and our households, allowing the Canadian economy to begin strongly rebounding from the COVID recession even before we finished our fight against the virus.
Third is because our government has a plan and we keep our promises. We said in the fall economic statement that we would invest up to $100 billion over three years to support Canada's economic recovery, and that is what we are outlining here today. We predicted a deficit for 2020-2021 of $381.6 billion. We have spent less than we provisioned for. Our deficit for 2020-2021 is $354.2 billion, below our forecast.
Finally, and crucially, we can afford this ambitious budget because the investments we propose today are responsible and sustainable.
We understand there are limits to our capacity to borrow and that the world will not write Canada any blank cheques. We do not expect any. This budget shows a declining debt-to-GDP ratio and a declining deficit, with the debt-to-GDP ratio falling to 49.2% by 2025-26 and the deficit falling to 1.1% of GDP.
These are important markers. They show that the extraordinary spending we have undertaken to support Canadians through this crisis and to stimulate a rapid recovery in jobs is temporary and finite. They also show that our proposed long-term investments will permanently boost Canada's economic capacity.
In 2015, this federal government was elected on a promise to help middle-class Canadians and people working hard to join the middle class. We promised to invest in workers and their prosperity, in long-term growth for all of us. And we did. Today, we meet a new challenge, the greatest our country has faced in a generation, with a renewed promise.
Opportunity is coming. Growth is coming. Jobs are coming. After a long, grim year, Canadians are ready to recover and rebuild. We will finish the fight against COVID. We will all get back to work, and we will come roaring back.
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View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-04-19 16:44 [p.5823]
Mr. Speaker, let me be the first to formally congratulate my colleague on becoming the first female finance minister to table a federal budget in this House. I will add that it is a remarkable accomplishment. It is long overdue, and I believe it defines a new role model for Canadian women across our country to aspire to. I send my congratulations to the minister.
I note the Prime Minister's mandate letter to the minister, dated January 15, called for her to present a “new fiscal anchor” to guide her work. The budget fails to do that. Instead, it contains vague references to a declining debt-to-GDP ratio starting two years from now. It turns out that was the Liberal government's old fiscal anchor, so there is nothing new about this one. In fact, her anchor does not even include measurable targets that would give Canadians the comfort of knowing their government understands the importance of proper debt management. All we have are references to the trajectory of the debt-to-GDP anchor.
My question is this: Why did the minister not deliver a new fiscal anchor the way the Prime Minister had directed her to do?
View Chrystia Freeland Profile
Lib. (ON)
Mr. Speaker, I will start by thanking the member opposite for those generous congratulations.
I think it would be appropriate for me today to think about Kim Campbell, the first woman prime minister of Canada, who was, of course, a Conservative woman prime minister. One thing we should agree on in this House is that all of us believe it is important to advance the cause of women in Canada.
When it comes to a fiscal anchor, I very much agree with the member opposite that it is important for our spending to be reasonable, sustainable and prudent. That is why it was important for us in this budget to hit some key fiscal markers.
First of all, we were clear in the fall economic statement that we would spend up to $100 billion in stimulus over three years. We have kept that promise. Perhaps more crucially, we have been clear in this budget, both in our commitment and also in our demonstrated actions that, following the extraordinary spending of this year, Canada's debt-to-GDP ratio will decline, and we show in our fiscal tables a clear declining trajectory ending in 2025-26 at a 49.2% debt-to-GDP ratio.
Further, as we point out in the budget document, we commit to unwinding the COVID-related deficits, and our budget and our fiscal projections show precisely that. In 2025-26, we come to a deficit of just 1.1%.
I would say to hon. members and my colleague opposite that those are our anchors: a declining debt-to-GDP ratio and unwinding the COVID-related deficits.
View Garnett Genuis Profile
CPC (AB)
Madam Speaker, it is a pleasure for me to rise and speak to Bill C-14, a government bill that would implement various fiscal measures, including raising the debt limit. We are doing so, relatively on the eve of the next federal budget coming on Monday, April 19, the first federal budget in two years. As a result of the delays, we have had to endure waiting for what used to be annual event and is now highly anticipated.
With Bill C-14 as well as the upcoming budget in mind, I want to talk about our fiscal situation and make some proposals. Before that, I want to talk about this broad concept of resilience.
Resilience is the ability to recover from difficulties. A core responsibility of government is to try to build up resilience within our government, within our institutions and within our national capacity.
Resilience means thinking about the things that could go wrong and preparing for them, even if nobody is talking about them.
Resilience is a critical job of government because it is something that could otherwise be undervalued. It can be undervalued by the private market. People do not always think about the various things that could go wrong and prepare for them. It is also something that can be undervalued particularly by government because it can be undervalued by the political market. That is, there is a risk maybe that governments' decisions to prepare for, or failure to prepare for, certain things that could go wrong are not top of mind for voters.
In the last election, I do not recall being asked by any voter if I thought the government was prepared for a global pandemic. I do not recall being asked by any voter if I thought the government was prepared for the possibility of a foreign invasion. I do not recall being asked by any voter if I thought the government was prepared for a cataclysmic natural disaster. That is natural.
Generally, as individuals, as consumers, as voters, we are not thinking about the possibility of grand disaster. We are more inclined to think about our immediate needs and our immediate challenges, but these are things that can happen as we have seen with COVID-19. It should bring home for all of us the fact that major, disastrous, global-scale events are things that can happen and the degree to which we think about them or prepare for them before they happen really matters in terms of our ability to engage those situations when they come up.
This should remind us of the importance of thinking about resilience and about whether we are ready to overcome major challenges that could come along. Therefore, it is easy and natural, coming out of a global pandemic, to think about being resilient in the face of another pandemic: What are the things we learned about dealing with public health pandemics so we are ready in case of another pandemic?
The broader lesson should be what can we do to prepare ourselves to respond to large-scale disasters. The next big challenge that comes at our country, unexpectedly, might not be a pandemic. It might be some other kind of challenge: a cataclysmic economic event, a cataclysmic natural disaster, something in terms of national security, etc. Thinking about resilience and developing a resilience mentality should be about, as governments and as parliamentarians, asking questions about our preparedness for disasters, those that are maybe undervalued in our typical day-to-day political discussions and by the private market. Developing a resilience mentality requires us not just to think about how we should have been ready for this crisis, but how we should prepare for future crises.
We know clearly that the job of government of preparing for disaster even if it is not on the public mind is something the government really failed to deliver on in terms of the COVID-19 pandemic. We did not have the required protective equipment. We did not have the manufacturing capacity required to respond to the immediate needs that came up. We did not have an early warning system that was operational. We had destroyed stockpiles. We were not prepared with the kind of social structures and systems that would have allowed us to react quickly. Right at the beginning, we should have had the PPE required, given people the right advice out of the gate on masking, put in place strong effective measures at the border right away and had a plan for tracing systems. All of these were thought of and enacted in other countries.
However, we did not have the structures and systems, or the necessary equipment, in place at the beginning. We had not built our systems to be resilient, in terms of health.
Recently, in the official opposition, we have talked a lot about being resilient in the face of possible security threats. We have a government that still has not made a decision with respect to Huawei. It said it would make a decision before the last election, and here we are, on the eve of what the government seems to want to be the next election. We will see. In any event, it has been years since the government's original self-imposed deadline for making a decision about Huawei.
We hear repeatedly, including from the member for Ottawa South, who chairs the National Security and Intelligence Committee of Parliamentarians and who is a member of the government, about concerns of foreign state-backed interference in Canada. We have heard from that important committee that we are not responding effectively. We are not prepared for it.
What about our fiscal resilience, in the context of the budget or in the context of Bill C-14? Are we ready for the kinds of problems that could be being created by the government's fiscal policy?
In the last year, we have spent more money than we ever have before. That goes without saying. However, we have actually borrowed more money, in real terms, in the last year than Canada did during World War II. In real terms, Canada borrowed less during all of World War II than we did in the last year. Of course, the COVID pandemic and the needs associated with it are very significant, but so were the Second World War and the needs associated with it for Canada, as well.
We have run up more debt in the last year. It is more than half of the total debt run up in all of Canada's history until this point. However, at the Liberal convention, were they debating how to get our public finances under control? Actually, they were talking about more spending. They were talking about putting in place a new universal basic income program, which is effectively more government spending, and expanding deficits on a permanent basis.
In the face of those conversations happening within the government, I think we have to ask how long this is going to last, and are we resilient? Are we prepared for the possibility of a serious fiscal problem? From time to time, countries that cannot control their spending experience runaway inflation. They experience various kinds of fiscal collapse.
The consequences of that for Canadians would be significant. We would put ourselves in a position where we could not get out of those problems, and could not just spend more money to address the challenges that people would face in that kind of situation.
Alas, what we have seen from the government is a “live for today and let tomorrow take care of itself” mentality on health, security and spending. It is thinking about today, not thinking about preparing ourselves for what might happen in the future.
As Conservatives, we have always believed in making the hard argument of thinking about the next generation, preparing for threats and challenges that we might not be able to see, taking a precautionary approach and ensuring that we are able to pass the goods of civilization on to the next generation. This is rather than undermining our position of public health, security and fiscal well-being, and leaving the next generation with a possible disaster.
We need to be thinking about resilience across a broad spectrum of issues, preparing for challenges and being ready to respond to those challenges.
I worry that sometimes in Canada, we have been victims of our success, in that we have gotten used to things going well. We have not always prepared for serious disasters because we do not have the same experiences of them here as maybe have happened in other parts of the world.
However, we have not achieved a level of prosperity, security or fiscal well-being by accident, and it will be not maintained without hard work. The path the government is putting us on right now is not one of resilience. It is one that puts our institutions and our national well-being in great danger. This is why we need to refocus our attention on the values of resilience and preparedness for the future.
View John Brassard Profile
CPC (ON)
View John Brassard Profile
2021-04-13 17:26 [p.5539]
The hammer drops once again, Madam Speaker.
In the time that I have left, and there is not much of it, I want to talk about what the bill proposes. We can support many aspects of it. In fact, we did support it through committee and several suggestions were made at committee. However, it is disturbing that the debt ceiling is going to be raised over $600 billion. When we think of where we were a year and a half ago, the overall debt in the country was $600 billion. We are now looking at $1.83 trillion in debt, and that is concerning.
I know it is awfully difficult for people to understand the magnitude of what we are going to be facing with respect to deficits. We know right now that we are at $343 billion roughly. Hopefully, we will find out on Monday with the budget exactly where we are. That combined with the actual debt, which today stands at $1.2 trillion, is quite concerning.
Again, I am not discounting the fact that Canadians have needed the help, but we have been focused a lot over the last year on the expense side of the ledger. Many of the measures that have been implemented have been there to support Canadians, but there is a reason we continue to be in what is seemingly a never-ending pandemic scenario, and that is because of the failure of the government to procure vaccines and to ensure there is enough vaccine distribution for Canadians.
This amount of deficit, the increased spending, is going to continue, but at some point we really have to start turning our minds to the revenue side of the ledger and how we are going to pay for this. Make no mistake that, yes, government has supported Canadians and has taken on a hefty burden of that debt, but at some point it will have to be paid back.
Two things happen: Taxes go up and services go down. That is just a fact of life, and I think most Canadians would understand that, but we have to focus on what an economic recovery looks like.
Economic recovery has to include every part, every sector, every region and every individual of the country. It is not some reimagined or imaginary economy. Canada will have to rely on the power of our businesses. We will have to rely on the people who are employed in those businesses, the products they produce and ensure we are competitive both domestically and internationally. We need to create an air of investor confidence both here, domestically, and for foreign investment as well. When I talk about every sector of our economy having to fire on all cylinders to pay for the debt and deficit situation we are in, that includes ever sector of our economy, including our natural resource sector. These are the important things we are going to have to eventually turn our minds to.
When I talk to people, I ask them how much is too much when it comes to that. I think of my former life as a firefighter and the salary that a firefighter, a nurse and all those occupations make. If they pay 40% income tax right now, how much is too much to pay for this unless we get our economy going again? Is 50%, 60% or so on too much? Is raising the GST 5%, 6% or so on too much? What about home equity taxes? Is taking the capital gains and paying the equity that people have built into their home going to be too much at that point? We know that the government has looked at it. We know that CMHC has proposed a study on this through the University of British Columbia.
A former finance minister stood up in the House and guaranteed Canadians something. I asked him many times whether he would implement a home equity tax. He said no. He is no longer here. Maybe the Prime Minister has found the path of least resistance, because we know that is a low-hanging fruit opportunity for them as well.
These are the types of things that should be on the minds of Canadians when it comes to the government proposal, through legislation, to raise debt ceilings, incurring more and more debt and deficits. Eventually, somebody will have to pay for this. Canadians are not naive. They know that money does not grow with fairy dust or grow on trees. They know that eventually somebody will have to pay for this.
Of course, to create this booming economy coming out of this recession where nobody is left behind, it is in terms of those sectors and regions around the country to create the tax revenue, both from a corporate tax standpoint where the businesses are making money to pay those taxes, and from the individuals who are gainfully employed paying those taxes, which is going to become critical to the success of our economic recovery.
I Just wanted to make those points, and that Parliament reigns supreme still. We have the oversight of government spending, and that has to be maintained. Fortunately, for all Canadians, we have been in a minority situation where we have been able to highlight some of the inefficiencies of this government in the past. I fear that if a majority situation were to happen, Canadians would be worse off. So, we are going to provide an alternative to Canadians. We are going to talk about the economy. We are going to secure our future. We are going to make sure that every Canadian succeeds coming out of this pandemic.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-02-19 10:18 [p.4297]
Mr. Speaker, our country faces an immense crisis. It is a health crisis and a financial crisis, the likes of which we have never seen before. Therefore, my remarks are for the millions of Canadians who worry about their future and worry about the country their children and grandchildren will inherit.
Yes, I am a grandfather, and I thank the CBC for recognizing that. In fact, I am an opa 11 times over. I love my grandkids and it is their future I am worried about. They are the ones stuck with the $1-trillion bill created by this pandemic. It is our response to this crisis that will determine whether we leave them with a bright future or leave them shackled to crippling taxes, languishing economic growth and declining socio-economic outcomes.
The government faces an enormous challenge, that is clear, but our job as members of the opposition is twofold. We perform a challenge function. We hold the government to account for its actions and policies and provide parliamentary oversight. I know this is something the finance minister does not really welcome. She has demanded that we abandon those functions and simply rubber stamp hundreds of billions of dollars of borrowing and spending. That is downright reckless and we will not do it.
We have also proposed constructive solutions, like fixing the CERB and the wage subsidy programs, so I would like to propose a few more.
The government's fall economic statement, Bill C-14, should give us pause to consider whether the federal government has a robust plan for the future. I have concluded that it does not. It is true that the statement delivers badly needed additional support to Canadians in their time of need, such as a top-up to the Canada child benefit and interest relief on student loans. We support all those benefits. In fact, we called for them. However, thousands of Canadians still feel abandoned because of poorly designed and confusing programs and the Prime Minister's unwillingness to recognize the scope of the crisis in certain regions of the country.
Bill C-14 would do something else. It would dramatically increase the amount that the government can borrow by $700 billion and would set aside $100 billion of discretionary spending. With hundreds of billions of dollars at his disposal, one would expect that the Prime Minister would present Canadians with a cogent and defensible plan that both supports Canadians in their time of need and tackles the immense fiscal challenges ahead. He has not done so.
The Prime Minister boldly stated, “...Canadians are in for a hard winter. But we know that spring will surely follow. That is because we have a plan... plentiful vaccines are around the corner.” He even audaciously claimed that things were in good shape. My message for the Prime Minister is this: Things are not in good shape. I have not met one constituent who believes that things are in good shape in our country.
In December, 53,000 Canadians became unemployed. Last month, over 200,000 more lost their jobs.
The government is heading in the wrong direction and the mounting deficits and debt are staggering. The Prime Minister is spending billions, yet millions of Canadians are being left behind.
The fall economic statement fails to put forward a serious plan for the future. There is no successful plan to roll out vaccines. There is no plan for job creation or for small businesses. There is no plan to secure our long-term future and no road map to manage the massive financial liability our country is incurring to support Canadians in their time of need right now.
The Prime Minister's number one responsibility is to give Canadians hope. They want their lives back, they want their jobs back, they want their small businesses back. They want their health, their schools, their places of worship and their communities back. However, the Prime Minister has provided no confidence that things might soon return to normal. All we have is a trail of broken promises on things like vaccines and rapid testing on containing the virus. The reality is that there is no plan, and a vague promise to spend billions more is not leadership.
What would Conservatives do differently and why do we believe we could do better? Let me answer both questions by providing, as I promised, some constructive advice to the government.
First, no recovery is possible until the majority of Canadians have been vaccinated. To date, the Prime Minister has failed to deliver vaccines as and when he promised. He should do what was promised: deliver the six million doses by the end of March and then keep his word and make vaccines available to all Canadians by the end of September. More than 52 countries around the world are now doing it better than the Prime Minister. While he is at it, he should remove the shroud of secrecy around the vaccines. Let Canadians see exactly what has been negotiated with Moderna, Pfizer and others.
Second, he should address the declining competitiveness of our economy. In recent years, Canada has lost a historic amount of domestic and foreign investment due to a loss of investor confidence. We lag far behind our fiercest competitors. The government must address the lack of access to capital and talent and the significant regulatory, commercialization and interprovincial barriers that discourage investors from creating economic growth here at home.
Third, there should be no more taxes. Canadians are already taxed to the max. The financial burden on Canadian families has only worsened, with carbon taxes, new taxes on Airbnb rentals and cross-border digital commerce, increased CPP contributions and a clean fuel standard. Stop. People are exhausted. There is nothing left to give.
Fourth, with close to a million Canadians out of work, the reality is that many of these jobs will not come back. Therefore, does the government have an effective plan for retraining unemployed Canadians for the jobs of tomorrow? I have not seen it.
Fifth, economists point out that our aging population is putting a tremendous squeeze on our labour force, undermining our competitiveness when we can least afford it. How do we replace the baby boomers as they retire and exit the economy? Where is the strategy to find talent and train the best and brightest to rebuild our country?
Sixth, small businesses are the lifeblood of our economy and employ over eight million people. Without targeted support, some 240,000 of these businesses will have to be shuttered forever. It is a tragedy in the making. Therefore, what is the government doing about it? Here is a suggestion: Small businesses, unlike the big corporations, need enhanced liquidity as they close up shop and wonder what is next. They need immediate emergency support and longer term financial tools to reorganize, reopen safely and adapt to a transformed business landscape. Will the government make improved support available?
Seventh, I note the Prime Minister has promoted ambitious investments in critical infrastructure, but most are still stuck in Ottawa. This is not the time for him to treat billions of dollars as his personal piggy bank to win the next election. I call for him to champion nation-building investments that make our economy more competitive. That should include things like gateway infrastructure, ports, railways, bridges and it should include energy infrastructure. I ask him to please get these investments out the door. So far it has been all talk and no action.
Last, and perhaps most important, our country faces a massive fiscal challenge. I am asking the government to exercise discipline and put in place the fiscal anchors, targets and rules that will stabilize our nation's finances so our children and grandchildren can actually see some light at the end of the tunnel. What is the government's debt target? How will it be achieved? What budgetary constraints is the government considering? Where did billions in spending go? Are taxes going up? Are we still committed to a declining debt-to-GDP ratio? Canadians have a right to know.
Canadians also have a right to ask us, the opposition, what makes us think we could do any better? I refer them to the great global recession of 2008-2009 when the country, like so many others, took a hit. It was a Conservative government that skilfully managed spending and investment so Canada was the last G7 country to enter that recession and the very first to emerge. Then we carefully set the fiscal anchors, stabilizing our nation's finances and securing our country's future. Can we do it again? I believe we can, because our kids and grandkids are counting on us.
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