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View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-06-22 11:10 [p.8945]
Madam Speaker, in my earlier remarks about the budget, I noted that with this budget, the Prime Minister had squandered a historic opportunity to reposition our economy for long-term success. I did, however, acknowledge that the budget contained a number of temporary measures that were critical to sustaining Canadians as we struggled to get past the pandemic. I commended the government for extending the wage and rent subsidy programs and a number of other measures that would continue to support struggling Canadians.
That is what a responsible opposition does. We offer helpful suggestions where possible and we call out failure when it happens. Therefore, I wish I could say that we Conservatives will support this budget, because we should not let the perfect become the enemy of the good. However, the reality is that this budget completely fails to deliver the growth budget that the finance minister had promised. Instead, it represents, as former deputy finance minister Kevin Lynch recently noted, the largest “transfer of debt and risk” that our country has ever seen. The finance minister failed to recognize the enormity of that challenge and in so doing, failed to include in her budget the strong fiscal anchor and debt management plan for which her own mandate letter called.
This budget would see our massive national debt swell to $1.4 trillion in the immediate term, with a hint from the government that it plans to borrow even more. The only anchor the minister could point to was a trajectory that would see Canada's debt-to-GDP ratio move slightly below 50%, far above what it was pre-pandemic, with endless debt and deficits for our children and grandchildren to repay.
The minister has been asked many times if she ever expects the government to return to balance; in other words to live within its means. She has steadfastly refused to answer, clearly a signal that the answer is no. Is this the growth budget the Prime Minister promised? It is absolutely not. While it would dramatically grow deficits, debt and the size of government, there is little that would position our economy for long-term growth and prosperity.
While other G7 countries have invested heavily in things like critical infrastructure, cut taxes, embarked on regulatory reform, harnessed the value of their innovators and reoriented trade away from hostile regimes like China, our Prime Minister has simply sprayed half a trillion dollars at targets intended to secure his re-election.
There is no plan to reorient our industrial policy from a tangibles to an intangibles economy, and there is no plan to capture the value of Canadian education, research and development, and innovation to ensure our start-ups commercialize and create jobs in Canada. There is no plan to reverse the dramatic flight of foreign capital from our country and to get nation-building infrastructure built. We now have the dubious distinction of being known as the country where nothing ever gets built. The demise of northern gateway, Keystone XL and energy east, and the potential demise of Line 5 under the current Liberal government, are evidence of that. What is worse is that this budget throws our oil and gas sector under the bus by expressly excluding it from the CCUS tax credit.
Again, is this a growth budget? It is not at all. In fact, even the Prime Minister's former policy adviser, Robert Asselin, recently confirmed this when he said that the budget doubles “down on programs that do not address our innovation shortcomings and have yielded few results to date.” He said, “it is hard to find a coherent growth plan.”
The finance minister clearly has not been taking the advice of her own Liberal advisers. She has also failed to act on other pressing issues. Her budget fails to properly address the looming threat of inflation and with it, rising interest rates, which could have a profound impact on millions of Canadians with mortgages.
In fact, last week we learned from Stats Canada that the cost of living continues to rise and is the highest it has been in over 10 years, proving that the minister's trillion-dollar debt and endless deficits are actually making life much more expensive for Canadians. One of the reasons for this is that the minister injected massive stimulus into our economy when economists were warning that she risked stoking the fires of inflation, and here we are. Even the Parliamentary Budget Officer commented that the Liberal government may have miscalibrated the necessity to spend on stimulus.
I will not sugar-coat this. The threat that massive borrowing and spending will lead to runaway inflation is real. I know the government does not want to hear that and is hanging on to the belief that inflationary pressures will be transitory. It says there is nothing to see and do not worry and tells us to be happy. However, Germany's Deutsche Bank is not buying it. It recently warned of a ticking inflation time bomb, a warning our minister refuses to heed.
For example, why is the Liberal government spending hundreds of millions of our tax dollars on the China-led Asian Infrastructure Investment Bank? It is a bank that makes no investments in Canada and instead supports China's efforts to assert its power and influence across Asia. In fact, why is this government collaborating with the communist regime in China on anything while that regime commits genocide against its own Uighur Muslim population, lays waste to democracy in Hong Kong, engages in harvesting organs from persecuted minorities like the Falun Gong and betrays Canada in the CanSino vaccine debacle? Why are the Liberals partnering with China when the Prime Minister cannot even explain why two Chinese scientists were escorted from a high-security virology lab in Winnipeg and fired? Why is Canadian money being invested in a bank controlled by China's communist regime when our two Michaels continue to languish in Chinese prisons? The minister has refused to answer these questions, as more and more taxpayer money is wasted on the Prime Minister's efforts to appease China.
This budget also failed to deliver a clear plan to safely reopen our common border with our largest trading partner, the U.S. Some two billion dollars' worth of trade crosses our border every single day, yet the budget scarcely mentions border security and trade facilitation, and makes no mention of whether discussions with the Biden administration are under way to safely reopen our border.
We are going to judge the government's budget not on the quantity but on the quality of its spending. Based on that standard, much of this budget remains unsalvageable. We Conservatives are now in a better position to judge the merits of this budget and to determine what it might mean for Canadians in the short, medium and long term. As I said, in the short term there are a number of measures that we can support that will help Canadians through this economic and health crisis, but in the medium and especially the long term, there is very little to get excited about. It is just endless debts and deficits with not even a pretense of the Liberal government ever wanting to return to balance.
As a responsible official opposition, we have no choice but to reject the government's attempt to spend the cupboards bare in order to position the Liberals for re-election, leaving future generations of Canadians to pick up the tab. There is one thing Canadians can be absolutely sure of. A Conservative government 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 that the government has left us. The Conservatives have done it before and we will do it again.
View Mark Gerretsen Profile
Lib. (ON)
Mr. Speaker, I have heard this NDP member refer to the NDP as the “worker bees” on a number of occasions. He is selling himself short, as worker bees are nothing more than mindless drones that fly around and contribute to the hive mind. The NDP actually offers quite a bit more than that in this House, and I would encourage him to consider a different term.
To the member's discussion about fiscal capacity, he seems to suggest that just because we were able to take on this fiscal capacity during a pandemic, we should be able to do it at any time. That is simply untrue. The reason why Canada, a country like ours, can take on this fiscal capacity right now is because our allies, our partners that we interact with and that we trade with regularly throughout the world, are also taking on that capacity. We are going through this together, globally, with other nations. That is why we are able to take on this kind of fiscal burden at this particular time. It is because we are going through it with other like-minded nations.
View Peter Julian Profile
NDP (BC)
Mr. Speaker, the member has made our point for us, and that is that other countries have put in place wealth taxes because they see that massive gulf between the very wealthy in their countries and most of their population.
That is why when we go to other social democratic countries, we see much stronger protections around health care and ensuring that there is a transition to clean energy economy. We see, in other countries, our international allies are far ahead of Canada in terms of making the investments that count, investments in health care, investments in education, ensuring as well that people have a right to housing, and that we transition to the clean energy economy.
Canada could learn a lot from our international partners. My point is very valid, that the Liberal government is refusing the good examples that would make a difference in the quality of life for Canadians.
View Adam Vaughan Profile
Lib. (ON)
View Adam Vaughan Profile
2021-06-18 14:51 [p.8802]
Madam Speaker, I do not want to get in the way of the member opposite's optimism. I think we all believe that this issue is critically important. However, I will note that yesterday, my family buried an uncle who passed away from COVID this week. His wife, who is even more frail that he was and is still in hospital, has not been told she has lost her husband. The contact tracing shows that COVID came through the health care workers in the family, who continue to battle on the front lines even though the vaccination rates are brilliant and we are leading in the G7 and the G20 on the first dose and are closing in on the second dose. All of these circumstances have to be dealt with, and I would really caution the member opposite not to speak as if the crisis is over, because in many, many communities it quite frankly is not over.
Since he spoke to the future and to the budget, I have one question for him. People tell us to invest in the people, invest in our sectors and invest in the economy. It is invest, invest, invest. However, all we hear from the Conservatives is cut, cut, cut. How do we invest and cut at the same time?
View Richard Bragdon Profile
CPC (NB)
View Richard Bragdon Profile
2021-06-18 14:52 [p.8802]
Madam Speaker, I thank the hon. member for his insight and perspective, but being wise, being good stewards, planning ahead and seeing around corners is the essence of leadership and good governance. We cannot just speak to where we are currently; we must speak to where we are heading. I find the current government puts too much emphasis on what is behind, what we have gone through already. We need to have the vision to see where we are going in order to traverse the uncertain waters we are in now. That takes away nothing from the horrific challenges that COVID has presented to the country, and is still having its effect on, but we must speak to the future.
View Luc Berthold Profile
CPC (QC)
View Luc Berthold Profile
2021-06-17 14:51 [p.8675]
Mr. Speaker, I am appealing to the Prime Minister. What does he not understand when I say that everything is more expensive?
This government has lost control of public spending. We are talking about a deficit that has now reached over a trillion dollars. This deficit is a debt that Canada has to pay back, and it is the Canadians of this generation, the one after that, the one after that, the one after that and the one after that who will pay for it.
If nothing is done, Canadians will pay more tax on more products that will cost more. Is the Prime Minister beginning to realize that all Canadians will pay dearly for his fiscal recklessness?
View Chrystia Freeland Profile
Lib. (ON)
Mr. Speaker, we understand and I understand very well the serious threat posed by the Conservatives' tactics. Canada is currently in the process of reopening its economy and building a strong economic recovery. To do so, however, Canadians and Canadian businesses need the support of our budget. It is the Conservatives who are preventing us from supporting Canadians, and they need to stop.
View Philip Lawrence Profile
CPC (ON)
Mr. Speaker, the Liberal government continues to spend and spend. There is no doubt that there was a need to spend during the pandemic. There was a need to bridge. However, as the PBO said, we are walking on a very thin tightrope right now. If we were to have a crisis like an economic recession or a climate-related crisis, we would have big financial problems.
If we were to reach a financial crisis, which tax would the member increase? Would she put a tax on principal residences? Would she cut spending? Would she cut civil servants? What is her approach for the crisis that we will almost inevitably face?
View Soraya Martinez Ferrada Profile
Lib. (QC)
View Soraya Martinez Ferrada Profile
2021-06-17 20:57 [p.8726]
Madam Speaker, I thank my opposition colleague for his question.
Once again, it is the classic example of the opposition party. I entered politics and I decided to get involved at the federal level because the previous government had made cuts across the whole cultural and social system.
Our government decided to help Canadians and businesses get through the situation. Now is not the time to take on individual debt. We must take on collective debt. Now is not the time for austerity measures, as my opposition colleague would have us do.
View Luc Berthold Profile
CPC (QC)
View Luc Berthold Profile
2021-05-28 11:17 [p.7553]
Madam Speaker, on Wednesday evening I asked the Minister of Finance if she knew what the inflation rate in Canada was and I got no answer.
I asked her if she knew what the Bank of Canada's target inflation rate was and I got no answer.
By feigning ignorance, she is showing that she has no idea what is going on in Canada right now. Everything costs more, and the Parliamentary Budget Officer confirmed yesterday that interest on this government's astronomical debt will cost $3.4 billion more a year.
Why did the minister fail to present a credible economic plan to Canadians?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-05-28 11:17 [p.7553]
Madam Speaker, I am pleased to take this question. The hon. member does not tell us that his solution to the supposed inflation problem is to stop spending on supports that are helping businesses stay open and helping workers keep their jobs and put food on the table.
The reality is that the inflation target of between 1% and 3% is run independently by the Bank of Canada. The Government of Canada is in charge of fiscal policy. We used our fiscal firepower during the greatest economic emergency we have seen to help those families and workers keep their jobs and put food on the table, and I will not apologize for it.
View Luc Berthold Profile
CPC (QC)
View Luc Berthold Profile
2021-05-28 11:18 [p.7553]
Madam Speaker, let us do a little math. More inflation equals a higher cost of living for Canadians. Higher prices equal less money for Canadians. More inflation equals higher interest rates. Higher interest equals higher prices for all Canadians. Higher prices equal less money for all Canadian families.
Why is the minister standing around doing nothing?
The math is simple, and the minister is ignoring the Parliamentary Budget Officer's warnings.
Why has she failed to present a credible plan for Canada's entire economy?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-05-28 11:19 [p.7553]
Madam Speaker, the hon. member is selective in his choice of sources. A number of credible experts, including former governors of the Bank of Canada, have described the fiscal framework outlined in the recent budget as being sustainable.
If the member is concerned about inflation, I would point him to the fact that we have been able to lock in long-term interest rates. If he looks at the costs of servicing our debt outlined in budget 2021, he will see that in raw dollar terms, despite the fact that we have had to incur debt to support Canadians, the cost of servicing that debt is actually less than what was predicted in the fall economic statement before this pandemic. We will move—
View Luc Berthold Profile
CPC (QC)
View Luc Berthold Profile
2021-05-28 11:19 [p.7554]
Madam Speaker, the cost of everything is rising. That is the reality.
Yesterday, the Parliamentary Budget Officer released a report that confirms what we have been saying all along about this Liberal budget: There are more risks and more debt for Canadians. Revenues have been overestimated, deficits and debts have been underestimated, and there are no plans for the Liberals to ever balance a budget again after one two years in the making.
Why has the government failed to produce credible plans for the future?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-05-28 11:20 [p.7554]
Madam Speaker, the hon. member sees the cost of the measures we have put in place, but he does not see the value in them. I would point out to the hon. member that today is actually the day that families with kids under the age of six are going to receive an enhanced Canada child benefit after months of delay by the Conservatives. They pretend to support our measures when they opposed CERB, voted against measures to extend the wage subsidy and held a press conference at the beginning of the pandemic to say they would not support big, fat government programs.
Canadians should know that in their time of need it was our government that was there for them to ensure they could keep their jobs and put food on the table. That was the right approach then and it is the right approach—
View Luc Berthold Profile
CPC (QC)
View Luc Berthold Profile
2021-05-28 11:20 [p.7554]
Madam Speaker, the facts are that inflation is on the rise and with it interest rates will go up sooner than expected. A rise in interest rates will cause debt-servicing costs to also skyrocket.
The PBO confirmed yesterday that interest rate increases will add, on average, $3.4 billion in debt interest costs annually. That is $3 billion less for health care, infrastructure or helping make small businesses more competitive.
Therefore, I ask again: Why has the government failed to put a credible economic plan in place?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-05-28 11:21 [p.7554]
Madam Speaker, I will take no lessons from a member of a party that had the worst economic record since the Great Depression before this pandemic. If he wants to see a credible fiscal plan, I would direct him to budget 2021. The plan is to continue to support households and businesses through this pandemic. The plan is to defeat COVID-19. The plan is to ensure that all Canadians, not just wealthy Canadians, get to benefit from the growth that is being projected not just by our government but by private sector economists wherever we look.
The reality is our plan maintains an AAA credit rating, it maintains the lowest debt-to-GDP ratio in the G7 and it supports Canadian workers. This is—
View Luc Berthold Profile
CPC (QC)
View Luc Berthold Profile
2021-05-28 11:22 [p.7554]
Madam Speaker, it was indeed a big budget, but not for the right reasons. It is the biggest spending, biggest deficit and biggest debt in the history of our country. The PBO even said that inflation and rising interest rates will blunt the effectiveness of the so-called stimulus spending in the massive budget.
With no fiscal anchor, no debt management strategy and a never-ending deficit, why is the government setting up the country for massive failure?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-05-28 11:22 [p.7554]
Madam Speaker, it is clear that the hon. member has not taken the time to read the budget.
He claims there is no fiscal anchor. The fiscal anchor is actually described in those terms as a declining debt-to-GDP ratio. He says there is no debt management strategy when the phrase “debt management strategy” is actually included in the portion of the budget that seeks to explain how we plan to manage our debt.
The reality is that we have launched spending measures to keep businesses open and to support Canadian families. We have done so in a way that is sustainable, that has preserved the lowest debt-to-GDP ratio of any G7 country, and maintained a AAA credit rating. That is more than could be said for any plan the Conservatives have offered.
View Ted Falk Profile
CPC (MB)
View Ted Falk Profile
2021-05-26 16:45 [p.7391]
Madam Speaker, I am grateful for the opportunity to speak to Bill C-30, the Liberal government's budget implementation bill.
It took almost two years for the Liberals to get around to presenting a budget, the longest period in Canadian history without a budget. For decades there had never been a gap of more than two years between budgets, until the current Liberal government. Despite COVID-19, all other G7 countries produced budgets last year, so too did our provinces and territories, yet for two years, Canadians expecting the Liberal government to lay out its priorities in an open and transparent fashion were left waiting.
The fact we are here today debating this bill is positive, but presenting a budget is one of the bare minimums expected of any government. Now that we have this budget, it has been something of a letdown. One would think that after two years with time to prepare the Liberals would knock it out of the park, but that is not what happened.
As I listened to debate on this bill and reviewed the contents in my role on the Standing Committee on Finance, I have been struck more by what is absent from the budget than what is included. I noticed the Liberals are doing the bare minimum of what is expected of them and then expecting accolades in return.
As Canadians continue to face challenges as a result of COVID-19 and the restrictions imposed upon governments in response to COVID-19, Conservatives have been clear that those struggling need support. When the government forces someone to close down their business or prevents customers from shopping at their store, the government has a duty to support them through that situation. When the government forces people to stay home and prevents them from earning an income, the government has a duty to support them through that situation. Everyone in this House gets that and I think they all support it.
Measures to that effect included in Bill C-30 are important, but they are the bare minimum the government can do for Canadians during this time. A serious budget would do something more. It would include a road map to help Canadians move beyond this endless cycle of restrictions and lockdowns. It would include a data-driven plan to safely reopen the economy.
As we have heard time and time again from witnesses at the finance committee, a plan would help many small businesses, many hard-hit industries, looking for some certainty to help them plan for the future. Workers employed in sectors like tourism and hospitality, the aviation industry or our border communities depend on cross-border travel. They deserve to know when their lives will return to normal.
As Canadian families struggle to recover from a tough year, budget 2021 offers little encouragement. Instead, the Liberals are asking Canadians to accept the bare minimum. Besides a safe plan for reopening, this budget was a missed opportunity to address the need to support Canada's economic recovery and growth. After living with COVID-19 in Canada for more than a year, how can the government still be spinning its tires?
Upon reviewing this budget, many economists have lamented the troubling reality that this budget is more about short-term benefit than positioning our economy for long-term success. I know the Liberals like to look good, but I would argue that doing good, not just looking good, is what Canadians want and expect from their government.
For example, former Bank of Canada governor Mark Carney said, “What we're seeing in some other jurisdictions is that the focus is more squarely on the growth.” Another former Bank of Canada governor, David Dodge, noted “a lack of growth-focused initiatives in the budget.”
Robert Asselin, a former top economic adviser to the Liberal government described the new spending as “unfocused and unimaginative.” He also wrote, “it was clear for some time that the government’s decision to spend more than $100 billion in so-called short-term stimulus was a political solution in search of an economic problem.”
Former clerk of the Privy Council, Kevin Lynch, said the budget “misses an urgent opportunity to rebuild our longer-term growth post-pandemic.” He also said, “Despite the extraordinary emphasis on stimulus, there is little focus and few measures to rebuild Canada's longer-term growth.”
These comments, taken together, point to a real problem. If one's house is on fire, one wants and expects the fire department to come to one's aid. When it is the only house on fire, the resources are best directed toward that home. However, if the fire department showed up and sprayed a little water on that home then moved on to spray some water on the neighbour's place then turned around and sprayed the houses across the street, one would seriously question their approach.
It matters where the flow of water is directed, yet this seems to be the approach taken with this budget. There is no focus, no intentionality in terms of directing resources where they are actually required so Canada can move beyond the economic harms inflicted throughout COVID and thrive once again. Without doing the hard work of determining where federal tax dollars can be most impactful, the Liberals are asking Canadians to accept their bare minimum effort.
As Canada continues to grapple with COVID-19, one of the most important tasks of the government was to provide increased sustainable funding to the provinces for the provision of health care. This request was made by the provinces and supported by organizations like the Canadian Medical Association.
The CMA stated:
As provinces and territories continue to struggle with the ever-increasing cost of providing care, the federal government must follow through on its own promise to work with premiers on revisiting the Canada Health Transfer. Without this collaboration, our healthcare system, which has been put through the ultimate stress test, will struggle to recover.
Perhaps now more than ever Canadians recognize the importance of ensuring our health care system is sustainable. Unfortunately the Liberal budget does not. It touches on mental health and long-term care, but does not take the biggest and strongest step in the right direction by responding to the requests made by the province. Again, it does the bare minimum.
Another big concern is that the Liberals continue an avoidance of implementing a meaningful fiscal anchor to guide levels of public spending. In their budget document, there is only one reference, which states:
The government is committed to unwinding COVID-related deficits and reducing the federal debt as a share of the economy over the medium-term.
This is extremely vague. This is not a fiscal anchor; it is aspirational. At best, it is a wish list. There is not a hard stop to be found in the budget and no specific benchmarks that have been clearly established as fiscal anchors. At best, we could call them perhaps a guardrail.
Economist Jack Mintz wrote:
This is a pretty weak fiscal anchor. It perpetuates deficit financing forever. It is also easily violated every time the economy slips into a recession, such as our recent one. As debt ratchets up as a share of the economy, the rule permits bigger and bigger federal deficits over time.
I like the definition of a fiscal anchor offered by the Business Council of Canada. It notes, “notional ceilings or caps to the levels of public spending, deficits, and debt that governments are prepared to reach in their fiscal policy.” Its definition identifies the purpose of a fiscal anchor as well as:
1 Retaining the confidence of lenders and global markets...
2 Establishing a positive investment climate for businesses;
3 Providing a measure of fiscal discipline inside government...and
4 Ensuring that the government has the ability to respond to future economic shocks and unforeseen crises.
These are the types of fiscal anchors the Liberals should have been striving for, yet, once again, they are offering Canadians the bare minimum in an attempt to be transparent and accountable but without actually committing to a real metric.
To try and showcase the budget as something more than a bare minimum budget, the Liberals announced big plans for child care. The government could have taken the time to better understand the unique needs of parents and families, but instead of doing the hard work, it is pushing a one-size-fits-all Ottawa-knows-best approach to child care in Canada.
The Association of Day Care Operators of Ontario has highlighted the consequences of this proposal: uncertainty for families, limited access, job losses at existing day cares and the closure of many women-owned small businesses.
Andrea Hannen told the finance committee, “We shouldn't have systems that require families to mold themselves to the system. The system should evolve to allow families to be in the driver's seat.”
The committee also heard from Andrea Mrozek, a mother and child care researcher. When I asked her about the Liberal child care plan, she said, “It's not an equitable way...of helping families who address their child care need in many diverse ways.”
By pursuing a plan that perhaps is good for press for the Liberal government, it leaves many Canadians behind. The Liberals yet again having shown that this budget is only about doing the bare minimum. Canadian families need more than the bare minimum. They need a budget that helps those struggling through COVID-19 today and sets them up to succeed tomorrow. They need a budget that does not just spend for the sake of spending, but rather makes targeted investments that will generate tangible results for all Canadians. They need a budget that sets real goals for ensuring Canada's long-term fiscal sustainability, a budget that supports families in making best choices for themselves. Sadly, this bare minimum budget does not cut it.
View Garnett Genuis Profile
CPC (AB)
Madam Speaker, we have before us the government's budget implementation act, a disastrous piece of legislation that runs counter to the Canadian spirit and threatens our way of life now and in the future.
Canada, as I see it, is a great frontier nation, a nation characterized also by a great frontier spirit. To be Canadian is to set out into the unknown in pursuit of a better life.
Indigenous peoples who survived in these vast and beautiful but harsh lands since time immemorial were living and surviving on a frontier. The first European settlers who came here for resources, space and greater freedom pursued opportunity on a new frontier where the outcomes were highly uncertain. Loyalists who left their communities came north because of a commitment to ideals that had been betrayed by the American revolution. Former slaves also came north, risking brutal reprisals to find freedom in the land they had never seen. Pioneers risked starvation by moving west for more land. Successive generations of immigrants still today come to this new frontier to discover new things and new opportunities, leaving the familiar behind.
This is the Canadian story, one of sacrifice and boldly setting out for adventure, opportunity, security and justice.
Today, when the comforts of indoors are available to most of us, many still pride themselves on keeping this frontier spirit alive by encountering nature in all its elements at all times of the year: skiing, hiking up mountains, sleeping in tents when we do not have to, going for long walks in the middle of the woods through rough terrain even when no one is chasing us and ignoring the stove and microwave to cook food outside. We have braved the elements to get here and survive here, and now we venture out into the cold, the rain and bear country purely for the fun of it. Consciously or not, this is because we are proud of an identity and heritage that connects us with the grubby struggle of the outdoors. We are still a frontier people.
In the first instance, when people chose to leave the ease and comfort of a country or region of origin and when they chose to set out into a place that seemed inhospitable, they were clearly not just acting for themselves. For so many, the sacrifices of the present are consciously made to give something better to the next generation. Those who first venture onto a frontier are laying the groundwork for their children and grandchildren who will grow up on the frontier with the benefit of a new wealth in land and resources, and with the benefit of the security created by the hard work of their forebears.
This, too, is essential to the Canadian story. These national virtues are of hard work, courage and sacrifice in service of the next generation in the hope we can always say to our children that they will have joys, comforts and opportunities that we did not see.
Part of living on a frontier and living a frontier spirit is recognizing that we have to work for everything we have and we will be able to keep the things we built. With a bounty of natural resources in front of us, we can combine our labour with those things and so establish a future for ourselves and our families through dogged and relentless effort. The character of indigenous peoples and of those who immigrated here as well as the circumstances of the country itself made this possible and created communities of relative equality where opportunity was available to all.
This was very different from many old-world countries where resources were often more scarce and where domestic or foreign aristocracies often lived in idleness, benefiting through exploitation. These kinds of societies, where opportunities were not available to most people, have been understandably ripe for political doctrines emphasizing violent redistribution. It is an interesting feature of the history of European colonialism in general that less naturally hospitable areas like Canada ultimately have done better economically than many parts of the world where it is easier to survive.
History shows that early colonizers of warmer regions were more likely to be privileged people seeking wealth through the exploitation of indigenous peoples and slaves and the expropriation of existing wealth. Our country, on the other hand, was colonized by a greater proportion of less privileged European migrants who were prepared to work hard to survive instead of import slave labour. The circumstances of harsher environments such as Canada's also compelled a greater degree of initial co-operation between newcomers and indigenous peoples.
The history of European colonization is therefore one of richer regions becoming poorer and poorer regions becoming richer. This contrast shows the uniqueness of our national experience and the particular impact of the frontier spirit that relatively poorer newcomers to Canada brought with them.
Of course, inequality and exploitation have been and are in certain respects present in Canada today, and they are present any time governments seek to impose unmanageable burdens on workers and on families. However, those who fight back against exploitation do so from a commitment to cultivating and maintaining our national frontier spirit, where anyone can build and where those who choose to build new things can benefit from them. To maintain abundant opportunity and the benefits of this frontier spirit, we must continue to be willing to use our natural resources and to make them available to those who work on and develop them.
The opportunities of the new frontier are not gone. Still today, the option has always been available to go west or north and earn a living through hard work. This is why socialism has never taken root here, because for most of our history, we have been able to provide opportunity and access to resources for those who are willing to move to the frontier and pursue them.
In addition to providing opportunity for all who seek it, our frontiers have supplied the rest of the nation with wealth and resources unimaginable in other countries. We do not have to live on a frontier to benefit from living in a frontier nation.
However, sadly, there are those in our politics who do not believe in this frontier spirit, who have been suspicious of our resource development sectors past and present, who have preferred the comfortable status quo to the challenge of growth and who have tempted us to put the comforts of the present ahead of the opportunities of the future. The extent to which the government represents such an attack on the frontier spirit of our nation has been an unfolding reality.
The government initially promised small deficits for the short term and a balanced approach to spending in resource development. However, now it has bet big on something more radical. This budget unveils a plan to run massive, historic deficits in perpetuity, financed by borrowing and outstripping the borrowing of any previous national crisis. This is a budget that seeks a decisive break with our history. While there are claims about growth coming from undefined jobs in the future and dreams of greater workforce participation facilitated by state-run day care, the only actual articulated policy in this budget is more spending financed by the printing of money and the continuing, unprecedented assault on those resource and manufacturing sectors of our economy that have driven our frontier spirit and have been the mainstay of our prosperity.
Simultaneously, the government is proposing less production and more spending. The national resource sector is being undermined at every turn, including even projects with net-zero equipment built in, even projects that will demonstrably lead to reduction in global greenhouse gas emissions by displacing dirtier foreign sources. It should be obvious that increasing the availability of child care is only going to increase workforce participation if there are actually jobs available to work in.
Any student of history can figure out where this is all leading. This is the path of hyperinflation and a national debt crisis. This, in turn, will create radical inequality between everyday people and well-connected insiders. This is how we undermine trust in public institutions and exacerbate social divisions. This is how we impoverish a once great nation.
There are those who say that this cannot happen in Canada, that our nation is immune to these things, that our national success has been the product of particular characteristics, choices and circumstances. In particular, it has been our frontier spirit, the fact that we are the kind of people who look at a naturally occurring pile of asphalt and say, “How can I squeeze the oil out of that?” We are the kind of people who understand that prosperity comes from hard work, not from printing money. This is Canada. However, if our leaders continue to seek a different course, then there is no reason to believe that our historic success will continue.
Canada's current government is the most left wing of any government in this nation's history. Other governments have sought to develop our resources and redistribute the surplus, but the current government is blocking growth and development at every turn, while actively seeking to redistribute that which has not been created. It will tell us “Don't worry, your efforts are not required because we are going to take care of things. We are going to take care of you whatever it takes.” However, whatever it takes it not going to work if we are not putting anything in the tank. We can only run on empty for so long.
The government will say that its spending will create growth, but its approach to growth emphasizes central planning and the alleged wisdom of bureaucratic predictions about industries of the future. Central planning of economic development has never worked in the past and has always increased inequality and social resentment. Nations that have relied on government planning instead of on the spontaneous genuis of people have never prospered except temporarily and by imitation and expropriation.
It is time that Canada's leaders turn their attention to the need to secure our future. Securing our future requires an all-hands-on-deck approach to the economy, one that leverages the hard work, ingenuity and sacrifice of all people from all backgrounds, in all sectors and in all regions of our national economy. Securing the future means innovating in the way that we deliver public services instead of re-promising the unkept promises of the 1960s. Securing our future means restoring our commitment to paying for the things we buy today rather than passing the bill on to the next generation.
The source of our prosperity is not the printing of currency, central planning or the distribution of government largesse. It is the ingenuity and courage of the Canadian people. Securing our future is about celebrating our frontier spirit as survivors, as immigrants, as builders and as innovators. I am proud to be opposing this budget.
View Luc Berthold Profile
CPC (QC)
View Luc Berthold Profile
2021-05-13 11:40 [p.7163]
Madam Speaker, it is my turn to speak and I think it is important to rise today to support this motion, which states:
(b) in the opinion of the House, holding an election during a pandemic would be irresponsible, and that it is the responsibility of the government to make every effort to ensure that voters are not called to the polls as long as this pandemic continues.
I have not met anyone in my riding who wants an election in the middle of the pandemic. On the contrary, I truly think that people will be upset and very disappointed in this government if it remains determined to trigger an election in the middle of the pandemic.
Canadians do not need to be reminded that the vaccine rollout got off to a slow start and suffered many delays because of the government's mismanagement. The government was late signing agreements with vaccine manufacturers, did not act quickly enough to ensure domestic production capacity, and did not manage to protect Canadians by getting them at least one dose. The slogan “a one-dose summer” does not really appeal to Canadians.
The absence of border controls allowed variants of concern to take hold in our communities. Since last week, 90% of all coronavirus cases in Canada have been the British variant. Three dozen cases of a variant discovered for the first time in India have also been identified.
In short, it is clear that the Liberal government did not manage to prevent the pandemic from entering the country or to get Canadians out of this crisis. In other countries, things are going far better than in Canada. The responsibility for this public health crisis therefore lies squarely on the government's shoulders, and the last thing Canadians need is an election during the third wave.
I would like to point out that more than 1.3 million Canadians have been infected by the virus, including 360,000 in Quebec alone, that there are still 78,000 active cases, and that 25,000 people have died. That is a good indication of the severity of the pandemic. Given the restrictions placed on Canadians since March 2020 and those still in effect, it is astonishing to see that the Liberal government has only one objective, and it is certainly not to have all Canadians vaccinated by the summer.
The Prime Minister is going full steam ahead toward a general election. The efforts made by the government to distract from its disastrous pandemic response are appalling. Rather than getting Canadians to the polls at all costs, this minority government should be doing everything it can to ensure Canadians' safety during the pandemic.
Of course, we understand and we know why the Liberals want an election. First, from the very start, the government failed miserably in its management of the pandemic, particularly in terms of the economy. Canada has suffered major economic damage from coast to coast since the virus arrived within our borders.
The numbers do not lie when it comes to jobs. Before the pandemic, the unemployment rate in Canada was 4.5%. By the end of April 2020, the number had quadrupled. The rate of job losses in Canada was unprecedented. Statistics Canada had never recorded such a high number of job losses in its history.
In 2020, job opportunities in the restaurant sector decreased by 40% in Quebec, and there was a 13% decrease in the retail sector. Losses in these sectors have been shown to disproportionately affect younger and more vulnerable workers, including women, who lack job security or high wages.
Now, 14 months into the COVID-19 pandemic, the national unemployment rate is 8.1% and this Liberal government's mismanagement has led to the reintroduction of lockdown measures in many parts of the country.
Right now, we are stuck in what has been called the Prime Minister's third wave because of the government's inability to ensure the vaccine supply and its slowness in using rapid testing technology and closing the borders. It is because of this government's incompetence and lack of leadership that COVID-19 continues to devastate the Canadian economy.
Doug Porter, the chief economist of BMO Capital Markets, noted that this current episode of unemployment hit Canada a little harder as more full-time employment and private sector employment fell. In other sectors, the people we meet in our regions in the hotel, restaurant and entertainment sectors have suffered as a result of the reinstatement of lockdown measures caused by the Liberals' third wave.
Numbers do not lie. Leah Nord, senior director at the Canadian Chamber of Commerce, suggested that labour force scarring is starting to show in Canada, as long-term unemployment has increased 4.6%, to 480,000 Canadians. She said that the job prospects for displaced workers grow slimmer with every month in lockdown as more businesses throw in the towel.
It is not hard to guess why the Liberals might want to turn the page by calling an election: They are trying to distract from their failures. The Liberals are the ones responsible for the unacceptable situation in which Canadian workers find themselves. Because of the Liberals' inability to plot a coherent course to get out of the pandemic, Canadians ended up facing a variety of lockdowns and closures.
The Liberals can try to distract from the impact their failed pandemic response has had on Canadians, but the fact is that an election will not make people forget, not when the damage is this bad and when the hurt caused by their failure is still being felt across the country. From a general standpoint, 2020 will go down in history as the worst year ever recorded for Canada's economy. What is the government's solution to all of these problems?
Rather than working hard to solve the real problems facing Canadians, and despite the pretty words the Prime Minister spouts everywhere he goes, notably in the House of Commons and in the media, saying that he does not want an election, the Liberals have done everything they need to do to hold an election in the middle of a pandemic. I agree with my colleague from Calgary Nose Hill, who said that the Prime Minister is disconnected from reality.
The Liberals want an election so badly that they passed their pandemic election bill at second reading under a gag order and with the tacit abetment of the NDP. When it comes to changing election regulations, the least a minority government can do is to try to reach a consensus, not form a self-serving alliance. What the Liberals are doing is not helping Canadians' view of politicians.
Earlier, my Liberal colleague spoke of hypocrisy. I heard him say the word about 15 times in his speech. However, the Liberals are primarily responsible for the fact that Canadians’ trust in politicians is at at an all-time low and that government ministers rank 73rd in the 76 occupations assessed by the Institut de la confiance dans les organisations. The ultimate irony is that the Liberals are in such a hurry to pass a bill to change the election rules in the midst of a pandemic, when they are all saying one after the other today that there is no way that they will hold an election in the midst of a pandemic.
They keep saying that they are not talking about an election, that it is the opposition parties that are talking about it, but it is not the official opposition that tabled a bill to hold an election in the midst of a pandemic. The Prime Minister has said on many occasions that the opposition parties voted against confidence motions, such as those on the budget and the economic statement. They are talking about 15 or so votes, as if our vote had anything at all to do with holding an election.
If the government had wanted the support of the opposition parties for its budget, it would have tried to reach a consensus. It would have tried to focus on an economic recovery plan and assistance for Canadians, rather than on its ideological values and election platform, but that is not the case. The Prime Minister is so obsessed with power and so upset at being the leader of a minority government that he made his budget an ideological platform, spared no expense and showed no desire to present an economic recovery plan. The budget is all over the place. Many analysts have said so. The word “billion” will soon become a common word in the House. We are talking about a trillion-dollar deficit in Canada.
Now that he sees that Canadians are not stupid and that they did not fall for his ploy, the Prime Minister wants to call an election as soon as possible, even if that means refusing to listen to Parliament and refusing to try to reach a consensus. His claims are ridiculous. However, the role of the opposition is to defend Canadians, who need defending during a pandemic. We do not want an election. The leader of the opposition does not want an election, the leader of the Bloc Québécois does not want an election and the leader of the NDP does not want an election. If the three leaders of the opposition do not want an election, the only one who can call an election unilaterally is the Prime Minister himself.
I invite my Liberal colleagues, whose constituents are experiencing the same problems as mine, to stand up and vote in favour of this motion, which only makes sense.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-05-13 14:30 [p.7188]
Mr. Speaker, the Prime Minister promised a growth budget. Instead, all he gave us was bigger government, bigger debt and bigger deficits. More and more experts are piling on. Kevin Lynch, the former deputy finance minister, said that the budget missed “an urgent opportunity to rebuild our longer-term growth post-pandemic”. He said that this intergenerational transfer of debt and risk was unprecedented. By any measure, the biggest spending budget in our history was a bust.
Why did the Prime Minister miss this opportunity to secure our economic future?
View Chrystia Freeland Profile
Lib. (ON)
Mr. Speaker, I am so glad to get this question because it gives me an opportunity to talk about how well the Canadian economy is doing. Let me talk about some verdicts that really matter. Standard & Poor's, the international ratings agency, reaffirmed our AAA rating one week after the budget and said the outlook for Canada is stable. It does not get better than that and that should assure all Canadians.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-05-13 14:31 [p.7189]
Mr. Speaker, last month, Canada lost 200,000 jobs. The recent budget was not about economic growth. It was about an avalanche of spending to re-elect the Prime Minister. Now we read troubling reports about officials who were asked to come up with excuses for millions of dollars of spending after that spending had already been announced. It turns out this budget was not about growth. It was about a “ready, fire, aim” approach to policy-making that is not about serving Canadians. It is about serving the Prime Minister.
Who is left holding the bag? Canadians are, of course. The Prime Minister has failed us. Why?
View Chrystia Freeland Profile
Lib. (ON)
Mr. Speaker, the Conservatives may have their own partisan reasons for talking down the Canadian economy, but I am so proud of how resilient and innovative Canadians are. That resilience is showing in the numbers. In the fourth quarter, our economy grew by 10%. In the first quarter of this year, it grew by 6.5%. In the first quarter, the U.S. grew by only 6.3%. The Bank of Canada has upgraded its forecast for this year to 6.5% growth.
View Ziad Aboultaif Profile
CPC (AB)
View Ziad Aboultaif Profile
2021-05-11 16:02 [p.7072]
Mr. Speaker, I want to start my speech with a single line: Mr. Speaker, I told you so.
I mean no disrespect, but about a month ago, in mid-April, I said that I would not be surprised if Bill C-14 would not go through the other place by the time we got our hands on this 2021-22 budget. Obviously, I was right. To make it even better, Bill C-14 has not been returned to us and it has been a month since I made that prediction. However, I am not here to speak to Bill C-14.
I am here to speak to another bill. It would spend a lot of money. It would massively increase our national debt and it would not do a whole lot to help Canadians. I am going to be speaking to Bill C-30 because, like I said, this budget would spend a lot of money: $154.7 billion. Even if Bill Gates were to liquidate his entire net worth, that still would not be enough to cover the bill for this. I want to talk about all of this money.
If my colleagues here would think back to last year, when this finance minister started her current portfolio, she was very eager to bring Canada's fiscal firepower to bear if September's throne speech is to be believed. However, there is a bit of a problem with that. This is not Hollywood. We can run out of ammo. Our barrels can overheat. We need some way to not burn through all this firepower too fast or, in other terms, we need some sort of fiscal anchor.
Why do we need a fiscal anchor? Fiscal anchors serve as notional ceilings or caps to the levels of public spending, deficits and debt that governments are prepared to reach in their fiscal policy. They serve many purposes: one, retaining the confidence of lenders and global markets, like credit access and favourable rates; two, establishing a positive investment climate for businesses; and, three, providing a measure of fiscal discipline inside government. If the finance minister does not have one, it becomes very difficult for her to put any sort of constraints on her colleagues in cabinet and caucus, and ensure that the government has the ability to respond to future economic shocks and unforeseen crises.
Before COVID-19, the current government's fiscal anchor was to decrease the debt-to-GDP ratio. That anchor has disappeared. Now the budget has one, a vague, pretty useless one. Great, they are committed to reducing the debt, but the fiscal anchor is supposed to be a prudent, specific debt target, not “we will lower it over the medium term”. Fiscal anchors need to be a target that people can use to hold the government to account with no vague statements.
It is clear that this budget does not have a fiscal anchor. It is clear that this is just written in there to hide the Liberals' lack of future planning. What kinds of fiscal anchors could the government have used? I am not talking about that vague, literally, one line that is in the budget.
The first one is the debt-to-GDP ratio. This is what the Liberals would clearly claim they have got right now, but, again, they need targets and accountability, not vague statements and no accountability. A good example would be keeping the debt-to-GDP ratio under 30%. Any of my colleagues here may remember that as Bill Morneau's favourite target. The so-called anchor in the budget says it wants to reduce the debt-to-GDP ratio, but it does not provide a goal or a target. Therefore, when debt to GDP is at nearly 50%, a reduction is pretty easy to do, but whether the reduction is effective is another matter.
Another anchor the government could be using is something like the deficit-to-GDP ratio. Again, they have a one-off section about this one, simply saying that the government will reduce COVID spending. Great, but what about other spending? This budget introduces a lot of spending, permanent spending, including stuff like made-in-Ottawa child care programs and made-in-Ottawa pharmacare. This is a lot of new permanent program spending, and these are just small drops in the bucket.
The PBO found that the purported growth spending in the budget would only produce a fraction of the government growth that the government said it would. Therefore, the PBO found that with 1% growth on 74,000 jobs, $100 billion would result in over $1 million per job.
If keeping the deficit-to-GDP ratio down is one of this budget’s fiscal anchors, why would the government spend so much money frivolously? In all honesty, had I asked that in question period, I would have received the government's famous non-answer, which is disappointing.
Since we both know that it will not answer, I will tell the House what the real reason is that the federal government wants to spend this avalanche of cash. It is an election budget. That is why there is a lot of growth funding that would not cause growth. There are no productivity measures, and there is nothing to address Canada’s uncompetitive regulatory regime. It is just a lot of money for programs that look good in a nice, red-covered election platform with a big L on the front of it.
What really, deeply worries me is that the government does not seem to care about what all of this purposeless spending will cause. It is not just from this budget, but all of the previous ones too. The government has spent more than all previous prime ministers in the history of Canada combined. At this point, the government is spending so much that our grandkids, if not our great-grandkids, will still be paying it off. It is like taking out a credit card in their names, maxing it out, and leaving it for them to deal with.
As with actual credit cards, the interest rate is critical to this. I know that the minister would say, “Oh, it’s fine, the interest rate is low so we can borrow easily,” a quote from the minister, but again, our national debt is like a credit card. If there is even a one-percentage-point jump in the interest rate, that is another $10 billion per year in debt-servicing costs. Just like with credit cards, the interest can go up if we do not pay down our debts.
What if another massive crisis comes up, and we end up spending another few hundred billion dollars? Our creditors might start wanting us to pay the money back, and it will be tougher for that future government if it needs to borrow money during that crisis.
We also have to consider inflation. What if inflation goes up in the future? Right now, the Bank of Canada has the inflation rate at 2.2%. I know they like it around 2%, but what if the inflation rate keeps increasing? If we keep injecting all this money into the economy, it could cause inflation to spike.
Consider if inflation rose to 5%. Everything would cost more, which is a normal practice, and the value of our currency would drop by 5% year after year. That might not sound like much, but it would add up if it went on like that for a decade.
I am sure all of us who are old enough to remember the 80s and 90s will remember that it was not pretty stuff. Most of us are only a decade or so out from retirement and we will all get good pensions, but not all Canadians will.
My kids are in their early twenties, and I know a lot of our colleagues have kids who are younger than that. Do we really want to leave this fiscal mess in their laps, or in our grandchildren's laps? I know that I do not.
Our legacy should be having rebuilt Canada with a strong, competitive economy that will be there for decades to come, not spending our money for no purpose other than to help the government win an election. We need to spend within our means, not outside of our means, our kids' means and our grandkids' means.
View Dan Mazier Profile
CPC (MB)
Mr. Speaker, after a record two years, Canadians were finally provided with the federal budget. Unfortunately, it was the longest wait in our nation's history in some of the most troubling times in a generation.
Before I begin addressing the budget and the impact it will have on the people I represent, I want to congratulate the Minister of Finance on making history. Last month, she became the first woman to deliver a federal budget in Canadian history, and for that I applaud her. This is a historic step forward in inspiring women across our country.
Unfortunately, the current Liberal government has a problem, a spending problem. It has said that increasing the national debt to an unimaginable $1.4 trillion is to stimulate the economy, but we all know the only thing the government is focused on is stimulating voters. It is obvious the Prime Minister is more focused on keeping his job than on doing his job. By next year, he will have accumulated more national debt than all previous prime ministers combined.
One of the world's most respected investors, Warren Buffett, famously said, “Price is what you pay. Value is what you get.” The current government does not understand the difference between the two. It is more focused on how large the price tag is instead of how much value it will bring to Canadians.
The foundation to any good economic policy is to measure the output or the results. The federal government has tried to justify that its record-breaking deficit is a strategic investment so our economy can come roaring back, but that is not the case. This budget fails to provide a real plan for job creation and long-term economic growth. As a matter of fact, the Prime Minister's former adviser questioned this budget. He admitted the Liberals are, “doubling down on programs that do not address our innovation shortcomings and have yielded few results to date.” Where is the plan for coherent growth? Where is the plan to be competitive on the world stage? Where is the plan to foster an economic environment that allows the agriculture, forestry and tourism industries to thrive? There is no plan because the government is fixated on price instead of value.
My constituents know what happens when governments spend money without a plan. They understand because they have experienced it before. It was the Prime Minister's father who famously took the same approach in the 1980s, with record deficits, reckless spending, no fiscal guardrails and no plan. As a result, Canadians suffered a debt crisis. My constituents can remember the all-time high interest rates, the extreme inflation, the record unemployment rates and the massive increase in poverty. My constituents are concerned about spending without a plan because they have lived through the damage before.
I think of Diane in Minitonas, who reached out to me and expressed her concerns regarding the budget. She is concerned this budget is unaffordable for Canadians. As a mother of four, she is worried about the future of her children, who will have to pay for the record spending. I share her concerns. My constituents are seeking a plan in this budget that would outline the future of our recovery from this pandemic, but they did not get one. I represent thousands of locally owned and operated businesses throughout rural Manitoba. Agriculture, forestry, tourism and hospitality are the foundations of the communities and families of our region. Whether it be the businesses surrounding and within Riding Mountain National Park that rely on tourism or the restaurants and coffee shops that rely on regular local visitors, the small businesses that I represent want certainty for a secure economic future. What they are not seeking is a reimagined economy.
The finance minister sees things differently from my constituents. She has stated that the COVID-19 pandemic “has created a window of political opportunity”. Thousands of Canadians have died, jobs have been lost and businesses have been shuttered, but the government sees the tragedy as a political opportunity.
I recently heard from an outfitter in my riding who relies on business from American clientele. She is frustrated that the government refuses to discuss what the future will look like with our American neighbours post-pandemic. Unfortunately, because the federal government has failed to provide our country with enough vaccines, it cannot have these important conversations.
While other developed nations reopen for travel and business, Canada is experiencing a third wave because of this Prime Minister's own incompetence. Premiers across Canada have called on the federal government to increase health care funding. However, this budget has no new money for health care transfers to provinces such as Manitoba. In a time when the federal government should be stepping up to support the provincial health care system, the Liberals turned a blind eye in their budget.
The seniors in this country were also disappointed to read this Liberal budget. Once again, the current government has failed our seniors by not providing them the support they need. Seniors across my constituency are telling me that they can no longer afford to live with dignity on a fixed income, due to the rising cost of living.
I will admit that there are some things that sound good in this budget. For example, I welcome the proposed investments for connectivity. Access to high-quality Internet and cellular service is essential for all Canadians, and investments into rural Canada are key to closing the connectivity divide. However, I am skeptical of this promise because, as of today, no money from the existing universal broadband fund has been announced for Manitoba. Proposals such as the Parkland multi-community broadband project have yet to receive any funding. I would strongly caution Canadians on the promises in this budget. The Liberals are notorious for over-promising and under-delivering, and my constituents know that.
The best way to predict the future is to look into the past. Let us examine the record on a few of the previous promises. The Liberals promised to plant two billion trees. They promised to end the boil water advisories. They promised not to raise the Liberal carbon tax. They promised to be accountable. They promised to balance the budget. Guess what? They failed to deliver all of these promises.
I should remind the House that it was only last year when the government mentioned the importance of the fiscal anchor and fiscal guardrails. Well, Canadians will be shocked to learn that the car has driven off the cliff. The government does not believe in fiscal sustainability. In nearly 750 pages, there is no clear mention of a fiscal anchor.
Canadians of today may not experience the full impact of government debt, but I can assure this House that Canadians of tomorrow will experience not only today's debt but the interest as well. Each Canadian is now responsible for $33,000 in federal debt, and that number is growing. By 2026, interest payments on the federal debt could reach $40 billion a year. By next year, this Prime Minister will be responsible for more debt himself than all of the previous prime ministers combined.
Unfortunately, this budget does not tell Canadians how the government is going to pay for this record amount of debt. I suspect that the explanation of how the Liberals will pay for the new debt will not be shared until after the next election. I am confident that if the current government is re-elected, taxes will go up and promises will be broken as soon as the campaign is over, because history is bound to repeat itself. Canadians will not be tricked. They understand that higher spending today means higher taxes tomorrow; and, when inflation decreases the value of hard-earned savings accounts and higher interest rates prevent home ownership, the last thing Canadians want are higher taxes.
I will conclude with the words of former American president Herbert Hoover, who said, “Blessed are the young, for they shall inherit the national debt”. I can assure Canadians that a Conservative government would unleash the economic potential of our nation, stand up for rural Canada, and secure the future for all Canadians.
View James Bezan Profile
CPC (MB)
Madam Speaker, I am glad to speak to the budget implementation act, and I want to congratulate my friend from Carleton for an excellent speech.
It is very clear that the Liberals' so-called stimulus fund in this budget is really all about spending on Liberal pet projects and partisan priorities, not creating jobs and growing our economy. We continue to see no plan to get back to a balanced budget. We know spending in certain areas is completely out of control. This budget has been panned by the parliamentary budget officer and a number of financial experts. Editorials in major newspapers have not given it a passing grade.
It has been said many times through this debate that the Prime Minister of Canada, the Liberal Prime Minister, has racked up more national debt in the past six years than all previous prime ministers and governments of all political stripes in the 150-year history of Canada.
My granddaughter's birthday is today, and Sarah turns one, and I wish her a happy birthday. When she was born last year, she was already on the hook for over $31,700 of her share of the national debt. Today, she is now on the hook for almost $40,000. That is how much it has gone up because of the Liberal government.
There is no doubt we are dealing with a pandemic and there is no doubt a lot of emergency spending had to happen. However, we also know that a lot of money has been wasted and has gone into Liberal priorities, not the priorities of Canadians. As has been said many times, we are getting very concerned about the cost of this borrowing and how all this new printed money that is being pumped into the economy is going to impact inflation.
Whether we are looking at new home prices or when trying to buy lumber at a local lumber store to rebuild a fence or put a new deck in the backward, all these prices are skyrocketing because of this injection of cheap money printed by the Government of Canada.
We went through this once before under Prime Minister Pierre Elliott Trudeau. I took out my first mortgage to buy some farm land back in 1984. Because inflation was out of control and the Bank of Canada was trying to control it, interest rates were pegged at over 21% for mortgage borrowing. If we have that type of escalation in the cost of borrowing, there is no way people will be able to afford the homes they bought. They will be more than mortgage poor; they will be into foreclosures. The Government of Canada's borrowing will grow exponentially and it will have to take money from other programs just to pay down the interest on this huge debt, totalling over $1.4 trillion.
In this budget, we have another $101 billion in new spending over the next three years. We have a deficit left over from last year of $354 billion. This is not sustainable and we need to ensure we do not bring forward programs that will be structural and cause structural deficits. We have to ensure the assistance is there, but that it is short-lived and is removed as soon as we start to recover. The PBO has already said that we need to continue to balance our spending so we can adjust as people come of the recession caused by COVID.
We have to remember that today's deficits are tomorrow's taxes, and 74% of Canadians, according to a Nanos poll, have already said that they are incredibly concerned about the deficits the government is racking up under the Liberals.
One of the things missing in this budget is that there is nothing to increase productivity and competitiveness. When we were in government under Stephen Harper, we provided dollars to businesses to accelerate their capital gains losses against any equipment they were buying to increase productivity. They could buy new machinery or tools for their shops.
By increasing productivity and increasing competitiveness so they would be able to compete on the world market, they were creating more jobs. By creating more jobs, Canadians are back at work. They are stimulating the economy, because they are spending more, and they are paying taxes.
The budget we have in front of us right now is not a growth budget, and it fails to have any way to get Canada into a position of prosperity down the road. As I said, the Parliamentary Budget Officer said that a significant amount of the spending in this budget by the Liberals will not stimulate the jobs or create any economic growth, and that is going to hurt the long-term outlook on this budget, which is that they are expecting to see growth exponentially to fund that debt down the road.
I am really concerned about how this is affecting local businesses, especially in my riding of Selkirk—Interlake—Eastman. So many businesses are slipping through the cracks, especially seasonal operations. Here we are, going into a second summer under COVID with lockdowns and no ability for so many different businesses to operate.
I am thinking about caterers. I had a conversation with Danny's Whole Hog recently. All the weddings that were booked for this summer have now been cancelled. The company went last summer with almost no events to do and no catering available, and its barbecue business right now is pretty much dead. Instead of running 20-plus teams around the province, doing barbecues every weekend, it is down to only several staff. The owner is glad that he has had access to the wage subsidy program, but there is no guarantee that it is going to be extended down the road, especially as these seasonal businesses do not have revenues once they get through the summer and fall, and by then it is going to be too late for many of these companies.
There are summer camps in my riding, along beautiful Lake Manitoba, Lake Winnipeg and over in the Whiteshell: Camp Arnes, Camp Massad, Gimli Bible Camp and Camp Cedarwood. They did not have any campers last summer and again camp has already been cancelled for this summer, so they are looking for help.
One of my constituents, Jennifer Mills, has just been so tenacious in dealing with the loss of revenues to her company. She is in the carnival business. I have a neat industry in my riding where we have three main carnivals that go and set up at the midways, local fairs, rodeos and festivals: Canuck Amusements, Select Shows and Wonder Shows. Again, they are going into the second summer, over 20 months now without any revenue, and there have been no programs to support them. Jennifer has emailed the Liberal government over 200 times over the last 20 months, and still nobody has bothered to respond to her, whether the Minister of Small Business, the Minister of Finance or anyone.
That does not even deal with hairdressers, restaurants, libraries, outfitters and museums. They are all suffering, yet there is no help coming from the government for most of those businesses.
Agriculture is key to this economy. It is key to my riding. It is in my blood, as I am a farmer myself. I look at my family and immediate family and I am worried about young farmers and how they are going to be bearing the cost of these programs. I am glad to see that after we asked the Minister of Agriculture for a year to exclude the carbon tax on propane and natural gas that is used for drying crops, the Liberals are finally doing that and refunding it. It is a start.
This budget is proposing funding for more efficient grain dryers and farm equipment not powered by diesel fuel. There are no alternatives out there, and young farmers depend upon having to use used equipment. They buy used equipment, which is going to be based on older technology, so diesel fuel is the lifeblood of agriculture. If we want to eat, diesel fuel is going to be part of that for a very long time to come. There is no reference here to how the government is going to reward farmers for bringing in better crop rotation, low-till practices, zero-till practices and carbon sequestration. It is a public good, but there is nothing there.
Farming depends upon trade, and there is no funding in this budget to help our farmers trade more, especially as places like Communist China become more unpredictable on whether we will be able to access it.
I have more to say, and I will deal with that in the questions and answers afterwards, but I am glad to be able to get on the record talking about the gaps and the failures of the Liberal budget.
View Robert Kitchen Profile
CPC (SK)
Mr. Speaker, I am thankful to have the opportunity to speak to the budget implementation act and the impact, or lack thereof, that it will have on my constituents in Souris—Moose Mountain.
After two long years without a federal budget, the longest period without a budget in Canadian history, the Liberals have put forward this massive 700-page document that does very little to benefit those living in rural Saskatchewan. To say that I was appalled at the amount of unnecessary spending contained in the budget would be a gross understatement.
Under the government, Canada's deficit in 2020-21 has reached an astounding $354 billion, and just this week, the parliamentary budget officer announced that his analysis actually showed a deficit of $370.8 billion. Furthermore, the budget proposes over $101 billion in new spending over the next three years, over and above the usual amount needed to run the country. This is being done under the guise of helping Canada recover from the pandemic, yet the fact that there is no plan to pay this money back and return to balance shows just how short-sighted this budget truly is.
Another huge area of concern is the fact that both the Prime Minister in his most recent mandate letter to the Minister of Finance as well a report from the parliamentary budget officer indicated last fall that they expected the minister to come up with a new fiscal anchor. This was not done, and there is nothing in the budget indicating that such an anchor has been established. This sets Canada up for further long-term debt.
When it comes to our national debt, the situation is just as bleak. In two years, the Prime Minister will have added half a trillion dollars to our national debt. In six years, he will have almost doubled the $612 billion debt that was in place when he came into power. In fact, by next year, the Prime Minister will have added more to Canada's debt than all previous prime ministers combined. I wish I were exaggerating, but unfortunately the numbers do not lie.
The question that I and many other Canadians have is, who will be paying this back? In her budget speech, the Minister of Finance often spoke about families and their need for support in the short term, but what about the long term? At this rate, my great grandchildren will be paying the price for the government's financial mismanagement, and yet the Liberals continue to spend, spend, spend with no regard for future generations. Not my generation, not my problem seems to be the government's mantra when it comes to fiscal planning.
Speaking of rates, what happens when the interest rates go up? Let us think about that. What the government has presented is an election budget, yet other countries around the world have focused their pandemic budgets on job creation. The United Kingdom has tailored its budget toward funding for infrastructure as well as a super-investor tax credit which creates good jobs and actually gets some boots on the ground. France and Germany are both cutting taxes. These are G7 nations that have lower unemployment rates than we do, yet they create real jobs while we spend money on empty promises.
When I look at this budget through a local lens, it becomes obvious that this election budget was not intended to benefit southeast Saskatchewan. I do recognize that with the pandemic, we need to help those who have been affected by these new challenges, and there are some ways the budget does that. Measures like the suite of emergency financial support programs are essential since the downturn of the oil and gas market over the past seven years coupled with the pandemic has resulted in thousands of lost jobs in the energy industry and to small businesses. However, the non-existent support from the government for our natural resources industry further compounds our challenges.
One area that I was expecting greater support for was the agriculture industry and our Canadian farmers and ranchers. These hard-working people work tirelessly to provide Canada and the world with some of the highest quality produce available. Farmers are essential to our food security, yet the Liberal government has continued to make their lives more difficult and more expensive, especially through the measures like the carbon tax. As of April 1, it was increased to $40 per tonne and will go up to $170 per tonne by 2030.
In the budget, support for our farmers is as usual too little too late. One promise is that the government will provide $50 million for the purchase of more efficient grain dryers. Many will know that a large part of the issue with the Liberal carbon tax is that farmers are being charged huge sums just to dry their grain to get it ready for market. This is a necessary part for farming, and wet weather conditions are not something within a farmer's control. This is not a new issue. As soon as the carbon tax came into effect, and certainly following the harvest from hell, farmers were vocal about their need for greater government support. It has taken two years for anything to be done on this.
At any point during this time, the Liberals could have rectified this issue behind closed doors, but they let farmers suffer while waiting for a long overdue budget to make a flashy announcement in advance of an election. In fact, the Prime Minister 's cabinet appointed Prairies representative, the member for Winnipeg South Centre, recently stated that the added energy costs for farmers, notably for grain drying, had been a serious irritant in the farming community for a number of years. If he knew this, why has it taken so long and not fixed?
It is obvious that the Liberals are simply trying to placate Canadian farmers in advance of an election, but as I said, it is too little, too late.
When I ask Canadians where their food comes from, they unfortunately say the grocery store. I would like people to understand and appreciate the great land stewardship of the farmers who are actually producing that food. Prairie grain farmers adopted zero-till farming techniques decades ago and do not get any recognition for the great work they do in the reduction of greenhouse gas emissions. According to data released by the Western Canadian Wheat Growers, grain farmers in Canada are already a net-zero industry.
I have heard from many of my farmers who are seeding right now, and we look forward to seeing the crop in the ground, and also during past harvests about the big challenges they have using their energy efficient, carbon-reducing technology and equipment because they do not have proper access to broadband Internet.
Following the presentation of the budget, Ms. Jolly-Nagel, the Saskatchewan director and past president of the Western Canadian Wheat Growers stated: “I have trouble downloading software for my equipment now and cannot wait for Earth observation satellites to be designed and sent into space. The federal government has stated it wants a 30% reduction in GHG by limiting nitrogen fertilizer use but has never consulted industry or farmers if this is even achievable.” If the government wants farmers to do more to reduce GHGs, they need to listen to them and understand what rural Canada and rural Saskatchewan really means.
Another area that is important to my riding and to me personally is the use of carbon capture, utilization and storage, or CCUS, to reduce emissions in Canada. Since I became an MP, I have spent much time championing the incredible work that has been done in my riding at the Boundary Dam Power Station, the world’s first large-scale CCUS project. While I am pleased that there is some recognition of CCUS in the budget, the devil is always in the details, or in this case, a lack of detail.
The budget announces $319 million to support research, development and demonstrations that would improve the commercial viability of CCUS technology, but this is already being done. The Shand CCS feasibility study by the International CCS Knowledge Centre indicated that retrofitting their facility with CCUS could be done at 60% of the cost of Boundary Dam Unit 3 CCS and would make the Shand energy source carbon neutral, and some people say carbon negative with the fly ash that they ship to cement companies. Once again, the Liberals prefer to waste time and money on studies that have already been done rather than getting boots on the ground.
There is no indication as to when this money will be available, how it will be available and who will be eligible to receive it. We have seen this with Liberal programs before, such as the clean coal transition initiative, where communities are still struggling today to secure funds under ever-changing rules years after its inception.
The other measure regarding CCUS is an investment tax credit. This is another case of the devil being in the details, as further reading shows that this tax credit will not apply to enhanced oil recovery. By excluding EOR from this tax credit, the Liberal government is creating hurdles for new projects that might have otherwise qualified. The American version of this tax credit, the 45Q, includes enhanced oil recovery, and because of this, Canada will now be at a competitive disadvantage when it comes to incentivizing private corporate investment in the energy sector.
In closing, I think that most Canadians can see that this budget is an election budget that is big on idealistic spending without any promise of follow through. It spends taxpayer dollars at an alarming rate while using the pandemic as an excuse to do so. This indiscriminate spending needs to end so that we can work to create a secure Canada for future generations.
The finance minister listed in a number of her “sunny ways” things that were coming. Here is what is not coming: a balanced budget is not coming; lower interest rates are not coming; a reasonable debt and deficit are not coming. What is coming is a future where our children, grandchildren and great-grandchildren are paying off the debt.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-05-06 14:27 [p.6797]
Mr. Speaker, yesterday, the Parliamentary Budget Officer debunked the Liberal myth that the recent budget was about growth. In his report, Yves Giroux said the minister had overstated how much her avalanche of spending would boost economic growth. The minister claimed that her budget would create over 300,000 jobs, yet Mr. Giroux confirmed that only one-quarter of that number would materialize. This budget had nothing to do with growth, and everything to do with fighting the next election. Why did the minister mislead Canadians?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-05-06 14:28 [p.6798]
Mr. Speaker, it is that member who is misleading the House with his very question. The PBO report that he refers to examined only a portion of Canada's pandemic recovery strategy, and left out over $30 billion in emergency supports to ensure households and businesses would be bridged through this pandemic so they can contribute to the recovery on the back end. Canadians can rest assured that, unlike the Conservatives, our government is going to be there for households and businesses in our communities, as long as it takes and no matter what it takes.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-05-06 14:29 [p.6798]
Mr. Speaker, the member completely missed my point.
The Parliamentary Budget Officer reported that this so-called growth budget would not grow the economy as promised. He said the minister had overstated revenues, understated deficits, and that much of her spending had nothing to do with stimulating the economy. Clearly, the minister exaggerated how much growth the budget would produce. What is clear is that this is not a growth budget, it is a budget that misled Canadians. In fact, the government used the pandemic to recklessly spend on its own political survival. Why?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-05-06 14:29 [p.6798]
Mr. Speaker, the hon. member is wrong as a matter of fact and as a matter of principle.
On the facts, his partisan argument contradicts the evidence of the IMF, private-sector forecasts outlined in the budget, and major credit-rating agencies that have reaffirmed Canada's AAA rating.
As a matter of principle, his solution to the false problem that he depicts is to yank supports for households and businesses at a time when they need it most. Our strategy from the beginning has to been to extend a life raft to those households and businesses to prevent economic scarring, because we know that the economic recovery depends on everyone's participation when COVID-19 is a thing of the past.
View Richard Martel Profile
CPC (QC)
View Richard Martel Profile
2021-05-06 14:30 [p.6798]
Mr. Speaker, not only did the government take far too long to put out a budget, but it is also overestimating how much this budget will stimulate our economy. Its growth projections were twice as high as those independently calculated by the Parliamentary Budget Officer. Some of its employment projections were even eight times higher.
As usual, the Liberals are posturing. What are they hiding from Canadians? Why are they artificially boosting their numbers?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-05-06 14:31 [p.6798]
Mr. Speaker, the hon. member ought to appreciate that the economic growth projections included in the budget are the result of the private sector forecasts, on average, by the major economists at Canadian banks. This is not something that the government has done for partisan reasons; it is designed to ensure objectivity.
One of those particular banks, Scotiabank, actually pointed to the growth agenda outlined in this budget, when it stated that, “Overall, measures seem well targeted to raise potential output by focusing on economic inclusion, the green transition and measures to encourage business investment.” We know that to bust out of this recession, we need to invest in measures that will include growth, and that is precisely what budget 2021 is doing.
View Glen Motz Profile
CPC (AB)
Mr. Speaker, recently I asked the government how much debt interest costs when rates rise by 2%, which is the same stress test that new homebuyers are faced with. The Bank of Canada has announced that interest rates will be rising, so with $40 billion a year being spent on interest, the government has already put critical infrastructure systems at risk.
Why does the minister not have a credible plan to manage debt and ensure that things like infrastructure, security and safety, clean drinking water and our health care systems are sustainable for the long term?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-05-06 15:01 [p.6804]
Mr. Speaker, I direct the hon. member to annex 3 of the budget, which lays out in specific detail the debt management strategy of the government. I point in particular to the fact that by fiscal year 2022-23, we anticipate that the raw debt servicing charges for Canada will be $1.6 billion less than was projected in the fall economic statement of 2019, before the pandemic. The reality is that our AAA credit rating has recently been reaffirmed, specifically because of the measures we put in place to support households and businesses and prevent economic scarring.
The outlook for Canada is positive according to any economist with credibility in this conversation. I would invite further conversations with the member if he would like to dig into greater detail.
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2021-05-06 15:08 [p.6805]
Mr. Speaker, in my response to the member for Medicine Hat—Cardston—Warner, I had a small slip-up. I referred to our debt management strategy being in annex 3 of the budget. It is in fact in annex 2 where the member will find the government's debt management strategy, including the reaffirmation of our AAA credit rating and the fact that Canada currently has the lowest debt-to-GDP ratio in the G7.
View Michael Chong Profile
CPC (ON)
Madam Speaker, this is the longest budget in Canadian history. As Andrew Coyne pointed out in The Globe and Mail, this budget comes in at 739 pages and 232,903 words. Paul Martin's landmark budget of 1995 was fewer than 200 pages. Michael Wilson's budgets of the late1980s, which put Canada back on fiscal track and had operational surpluses, averaged less than 120 pages.
The longest budget in Canadian history is the biggest disappointment. Never has a budget proposed so little with so many words. There is no plan to tackle the immediate problem Canadians are facing, which is the lack of vaccines. There can be no economic recovery without vaccines.
In Halton region, for example, where part of my riding is, only half the people who could have been vaccinated have been. This is because the federal government has failed to secure vaccines. Last month, in places such as Burlington, Oakville, Milton, Georgetown and Acton, Halton region was only able to vaccinate 90,000 residents. It could have vaccinated 216,000 residents, or 7,200 residents a day, more than double the number of people it actually vaccinated. The reason only half the number of people were vaccinated was because of a lack of vaccines.
I will quote Halton region directly, which stated, “While we have the capacity to book approximately 7,200 appointments per day through our clinics, the availability of consistent vaccine supply continues to constrain the Vaccination Program rollout.”
The budget does nothing to fix this lack of vaccines. As a result, we are experiencing a third wave, unlike countries who were able to secure an adequate supply of vaccines like the United States and the United Kingdom.
This budget has no plan to build back better. It has no plan to create jobs and growth. Instead, it leaves us with a bigger debt, bigger deficits and an avalanche of unfocused spending.
The budget has no plan for regulatory and tax reform to help us in a fiercely competitive global economy. It has no plan to address Canada's chronically low levels of productivity, the only long-term determinant of prosperity. It has no plan for Canada's natural resources sector, which is so important to the race for critical minerals as the energy transition heats up.
There is no plan to address the overheated housing market, which has put the dream of affordable home ownership out of the reach of millions of Canadian families and saddled them with sky-high levels of indebtedness. There is no plan to achieve budget balance and rein in the skyrocketing debt and deficits that are threatening our children's future.
Members do not need to take it from me. They can take it from the experts. This is what David Dodge, the deputy minister of finance during the Chrétien government of the 1990s and former governor of the Bank of Canada, had to say about the budget in The Globe and Mail. He stated, “My policy criticism of the budget is that it really does not focus on growth”.
Referring to growth and the finance minister, he continues, “over the longer haul, we face a very real challenge. And I don’t think she tried to seriously address that in the budget”.
He went on to say that the vast majority of the extra $100 billion in spending is consumption not investment. He also said the budget does not have a prudent fiscal plan. He stated, “To me, it wouldn’t accord with something that is a reasonably prudent fiscal plan, let me put it that way”.
According to the International Monetary Fund, Canada has incurred the largest deficit among major economies in the last year at 20% of our GDP, yet the IMF estimates that, compared to our economic peers, Canada's economy has contracted more and will recover more slowly. Despite this, the budget does nothing to create jobs and growth.
There is no plan in the budget to balance public finances. The budget itself indicates that in the next five years alone, interest charges on the national debt will double, increasing from about 20 billion dollars a year to about 40 billion dollars a year.
Other experts have also been critical of the budget, as my colleague just said in his most recent remarks in the House. Here is what the finance minister's former policy and budget director, Robert Asselin, had to say about the budget in The Hub.
He said, “The federal budget has no answers on the question of growth”. He went on to say, “it was clear for some time that the government’s decision to spend more than $100 billion in so-called short-term stimulus was a political solution in search of an economic problem.” He concluded by saying, “After doubling our federal debt in only six years, and spending close to a trillion dollars, not moving the needle on long-term growth would be the worst possible legacy of this budget.”
This budget has no plan for growth, no plan to make Canada more competitive on the global stage and no plan to deal with Canada's aging labour force and chronically low levels of business investment. The Parliamentary Budget Officer has noted that a significant amount of the spending in the budget would neither stimulate jobs nor create economic growth. Like many others, he has concluded that a good portion of the spending is not stimulus at all.
Much of the spending in the budget is designed to help get Liberals re-elected. It is clearly a pre-election budget with a shotgun approach to spending. For example, the budget promises a national child care program. They do not mind the fact that it is provincial jurisdiction and some provinces have already set up universal child care programs. They do not mind the fact that the social union framework agreement, which was negotiated in 1999 by a previous Liberal government, requires the government to get the support of the majority of provincial governments to proceed. They do not mind the fact that provinces are rightfully skeptical about a federal government setting up new shared-cost programs in provincial areas of jurisdiction, only to have the federal government reduce funding at a later date, leaving the provinces on the hook to make up the deficit.
This promise of a national child care program is one Canadians have every right to be skeptical about. The Liberals first made this promise in the infamous red book of 1993, some 28 years ago. Over the last 28 years, they have continued to trot it out, and they keep failing to deliver. The government had two years to prepare for this budget. The fact that after two years all they could come out with is a budget soaring in rhetoric, but lacking in substance, is not surprising.
This is a government with an unprecedented gap between its rhetoric and reality. It is a government that said it was about gender equality, yet forced out of its cabinet and caucus the first indigenous female minister of justice and forced out of its caucus Jane Philpott, someone whose medical expertise we could have desperately used as minister of health during the last year of this pandemic. It is a government that said it was feminist, yet ignored the specific allegation of sexual harassment against the head of the armed forces
It is a government that said it would introduce electoral reform. It is a government headed by a Prime Minister who arrogantly proclaimed to the world in 2015 that Canada was back, and who made it a centrepiece of his foreign policy to secure a seat for Canada on the UN Security Council. However, Canada lost the vote for the Security Council seat with six fewer votes than it received a decade earlier. It is a government that came to office promising to do more for the world's poor, but that has spent 10% less on official development assistance than the previous government. It is a government that came to office promising to do better on climate change, but emissions have risen each and every year it has been in office.
In 2016, the first full year the current government was in office, emissions were 708 megatonnes. Just last month, the government announced emissions for the latest year, 2019, at 730 megatonnes. This is a 22-megatonne increase from its first full year in office, when it stood at 708 megatonnes, and so, too, it is with this budget.
This is a government that says it is focused on the middle class. It says it is focused on jobs and growth and focused on fiscal prudence, yet it presents a budget that is focused on anything but. For all those reasons, I cannot support this budget.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-05-05 17:15 [p.6699]
Madam Speaker, I want to thank the minister for reaching out to me last week after the budget had been tabled. We had a good conversation. However, had she reached out a little earlier, we could have helped her craft a budget that was truly a growth budget.
I noticed that her speech was almost exclusively about how much she had spent. There are certainly elements within the budget that we support, but as she is the finance minister, I would have expected her to talk about debts, talk about deficits and talk about the impact inflation and interest rates could have on the sustainability of our economy and our national finances. She mentioned none of that.
The minister's mandate letter from the Prime Minister directed her to come up with a “new fiscal anchor”. However, the fiscal anchor she came up with was the old one based on the debt-to-GDP ratio, except it did not have any targets attached to it this time.
Why has the minister not directed her mind to the financial sustainability of the country? Why did she not—
View Chrystia Freeland Profile
Lib. (ON)
Madam Speaker, earlier on, the parliamentary secretary spoke about his personal high regard for the member for Abbotsford and, I believe, his fondness for him. I must confess to the same weakness. I was glad to speak with him last week, and indeed to speak with him while we were putting the budget together. Notwithstanding that high regard, I disagree with some of the hon. member's contentions.
When it comes to the fiscal sustainability of our budget, let me point to something that is important for Canadians to know. I am holding it up now. A week after we delivered the budget, S&P Global, the ratings agency whose job it is to determine which sovereign borrower has a good plan and which does not, reaffirmed Canada's AAA rating. S&P said that it expects the Canadian economy will post a strong recovery in—
View Rachael Harder Profile
CPC (AB)
View Rachael Harder Profile
2021-04-26 13:51 [p.6150]
Madam Speaker, I would like to begin by congratulating my colleague on being the first female Canadian finance minister to introduce a budget in the House of Commons. Though we are on opposite sides of the House, it is phenomenal. I do want to acknowledge that.
Although I am glad the government finally decided to introduce a budget after more than two years, it must be pointed out that we are the only country in the G7 that went this long without one. Despite the unprecedented amount of government spending that has taken place, it is only now that we are being presented with a spending plan. This, I believe, is absolutely unacceptable.
It certainly does not speak of a government that is striving for openness, transparency and accountability, as it often advertises. I recognize there has been a pandemic, but nearly every other government in the country, whether provincial and municipal, has put forward a budget during this time. If they were able to do so, then surely the Liberal government was also able to do the same.
Before the budget was tabled, constituents shared with me that they were hoping to see a real plan for economic recovery and for reopening society as we know it. They were hoping for a restoration of hope and confidence in our future. Those who are unemployed shared with me that they were hoping to see a plan to create new jobs and economic opportunities for their families.
Those in the oil and gas sector shared with me that they were hoping to see some support for this world-class industry. Those who own local businesses and create jobs were hoping they would no longer have to be on the verge of permanently closing their doors. They were hoping that proper supports would be offered to them and that we would go back to normal.
Sadly, what the Liberal government delivered was a 700-page budget that will increase Canada's debt load by $1.3 trillion by 2022 and includes very little for those who call Alberta home. This is not stimulus spending focused on creating jobs, but rather spending on Liberal partisan priorities. Although there are some necessary support measures contained in this budget for Canadians who are still getting through the economic challenges due to the pandemic, it goes well beyond what is necessary. This is like the government going to Gucci when it really should be going to Walmart. It is not going with its own credit card. It is going with ours, the Canadian people. This is the deal: The government racks up the debt, and Canadians foot the bill.
A strategic budget would have targeted revenue-generating industries in our country so that one dollar would turn into three dollars. Instead, we see massive amounts of cash being flushed through the country in a manner that benefits the current government's partisan interests, rather than the well-being of Canadians as a whole. The budget will extend the pandemic economic recession longer than necessary due to its exorbitant spending.
Canada is in a rough situation right now. People are hurting emotionally, psychologically, economically and physically. That must be acknowledged. Canadians are looking for a way out, a change, not more of the same. Sadly, that is what this budget is.
It is a perpetuation of our current fiscal state where unemployment rates are high, government handouts are a primary source of income and the human spirit is severely damaged. It is a superficial solution that does not fix the real problem of a struggling economy and a struggling people. This was an opportunity for the government to chart a course toward a return to pre-COVID times. Of course, I would propose 2014 to take that opportunity, but that said, I would take 2019 at this point.
Instead, we see a Liberal government that is extending the pandemic economic recovery efforts with this budget. This will put us at a serious competitive disadvantage globally, especially when we see other countries returning to normal. Their economic engines are running again and ours is being flooded with no hope of a jump start. It is hard not to be envious of countries such as the United States, where concerts are taking place on Fridays, sports stadiums are full on Saturdays and churches are bustling with life on Sundays. In Taiwan, life is basically back to normal and has been for a long time due to its rapid response to the virus. It had a total of 1,100 cases and only 12 deaths. That is amazing.
The current government seems to wear federal debt as a badge of honour. It is bizarre and troubling. More borrowing and spending does not equate to good governance. Under the Prime Minister, Canada has incurred the largest per capita deficit and hit the highest unemployment rate in the G7, which means Canada has spent the most to achieve the least. Money spent is not a measuring stick for success as much as the government would like to use it as such. Lowering the unemployment rate or growing our national GDP are things that are worth celebrating and using as measures of success.
Just a few weeks before the Liberal budget was tabled, the Deputy Prime Minister said, “I really believe COVID has created a window of political opportunity”. This mentality is truly shocking and troublesome, but it also explains how the Liberals view this pandemic. They see it as an opportunity to re-engineer society according to their value set. It is exploitive and wrong.
The Prime Minister's “reimagined economy” is a risky Ottawa-knows-best approach that picks winners and losers by design. He is dictating which jobs, sectors and regions of our country will stay afloat and prosper and which will be left to perish. Never before has there been such a divisive prime minister in this nation.
Canadians know the government has no money of its own. Anything the government spends comes from taxes and borrowing. What the government borrows, Canadians pay back through taxation. There is no such thing as a free lunch, regardless of how the government tries to package it. The thing about government spending is that it always comes back to the people at a significant cost. It is common knowledge that when taxes go up, an unfriendly or even hostile environment is created for business. High taxes result in businesses leaving the country for other jurisdictions where they are not taxed to fill government coffers. The problem with businesses leaving the country is that they take jobs with them. When they take jobs with them, they also take the revenue that the government relies on for the social safety net that Canadians enjoy so much. This results in higher unemployment and more Canadians being dependent on the government for support, as opposed to being independent and self-sufficient because they have jobs. This pattern is extremely detrimental to the Canadian people, but highly beneficial for a political party that only maintains power when Canadians are dependent on government.
Instead of working to get Canadians out of the dole line, it seems as though the Liberals are doing everything in their power to prolong the current situation and to capitalize on an obliged and increasingly indebted electorate. So much federal money has been spent on COVID-19 benefit programs that, on average, Canadians now have more personal income than they did pre-COVID, even though the average employment income has fallen dramatically.
Let us talk about big government. This is not a budget that a responsible government would put forward: It is a budget that sets up an opportunistic Prime Minister for success in the event of an election. Notably, despite the massive debt incurred, this budget failed in a few key areas. There is no plan to fight the pandemic. This is interesting, because the Prime Minister touted this budget as his pandemic response. There is no new money for health care transfers, no fiscal anchor or debt-management strategy. That is atrocious for a national budget.
Canada needs a prime minister who sees the solution to our country's current challenges and where they truly lie. It is not the government—
View Colin Carrie Profile
CPC (ON)
View Colin Carrie Profile
2021-04-26 15:50 [p.6183]
Madam Speaker, I am getting calls from constituents in Oshawa who remember Pierre Elliott Trudeau and what happened when he left office. I remember it was Jean Chrétien who said, “We left the cupboard bare”. My concern is that we seem to have maxed out our credit card, our kids' credit card and now it seems to be the grandkids' credit card.
When does the government plan to return to a balanced budget?
View Kevin Lamoureux Profile
Lib. (MB)
View Kevin Lamoureux Profile
2021-04-26 15:50 [p.6183]
Madam Speaker, this is what I mean about the Conservatives being like a rudderless ship. There is no leadership coming from their party. One day they are talking about deficit, deficit, deficit and asking why we are spending all this money, and on other days they are saying how good it is and they support legislation that spends the money that we need to borrow money for.
I gave a list of programs that were absolutely critical to support, not to mention things such as $19 billion for a provincial restart and $2 billion toward schools. There is so much money there that was absolutely needed in order to support Canadians. Some days the Conservatives support it, other days—
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.
View Ted Falk Profile
CPC (MB)
View Ted Falk Profile
2021-02-02 12:09 [p.3883]
Mr. Speaker, it is a novel sensation to rise in the House today to speak to Bill C-14, for several reasons. First, it is always a tremendous privilege to rise in the House, even though it is not as populated as it has been in the past, to represent the constituents of Provencher and speak to the issues of the day regarding this great country of Canada. Second, it is novel to speak to an economic statement that does not typically lead to legislation. This is an unusual speech in that respect.
Third, this marks the very first meaningful budget-like document that the Liberals have produced since 2019, almost 650 days ago. To be sure, this is not a budget. However, I am grateful to have the opportunity to address Bill C-14 given the fact that the Liberals have flat out refused to present a budget since 2018.
I am a member of the Standing Committee on Finance, which is just now concluding its pre-budget consultations and entering the drafting stage of the report. It is now time for the committee to review the recommendations from Canadians, and to consolidate into the report all the needs that have been identified by Canadians from coast to coast to coast to present to the finance minister. My hope is that the Minister of Finance will take this process seriously, that her response will be thoughtful and that she will come up with a realistic plan for our nation's finances.
Conservatives have been clear right from the beginning that we want to make sure that Canadians struggling as a result of COVID-19 have the support they need. We recognize the challenges that so many are facing, including those of us living under stringent public health restrictions that have dramatically impacted our well-being. The government has a duty not only to help Canadians get through the crisis, but to develop a plan to help us get out of it. I said earlier today in the House that it seems as though the government has no plan, and failing to plan is planning to fail.
It is perfectly fair for governments to react quickly when faced with a crisis. One cannot get everything right when trying to sort out something new and unexpected on the fly. However, a year has now passed since COVID-19 came on Canada's radar in a real way. By now, the government has had plenty of time to prepare a solid, long-term plan for Canada's economy. By now, we know where the damage is most significant. We know who is hurting, and with this knowledge comes the power to plan for the future: to show Canadians a way out and a plan for things to return to normal.
One tangible way that the Liberals could do this immediately is by setting a fiscal anchor. A fiscal anchor is driven by rock-solid foundation principles and will be an anchor or reference point to hold things together and provide stability on which we can establish policies. The principles of financial anchors are missing from the Liberal government.
The Business Council of Canada defines fiscal anchors as follows:
...notional ceilings or caps to the levels of public spending, deficits, and debt that governments are prepared to reach in their fiscal policy. They serve many purposes including:
1 Retaining the confidence of lenders and global markets...;
2 Establishing a positive investment climate for businesses;
3 Providing a measure of fiscal discipline inside government...; and
4 Ensuring that the government has the ability to respond to future economic shocks and unforeseen crises.
In practical terms, this is about creating good jobs for Canadians. It is about creating the conditions for local small businesses to succeed and thrive. It is about moms and dads being able to put food on the table for their families. However, it is also about governments being able to sustainably fund the social services that many rely on: health care, education and the social safety net. Fiscal responsibility, or a fiscal anchor, signals to Canadians that the government is not merely acting for its own immediate interests today, but for the good of the country and its future.
Former parliamentary budget officer Kevin Page told the National Post in October, “There’s a cost to having effectively no fiscal plan. And right now it’s fair to say we have no fiscal strategy.” He added, “This is about where the government’s rudder is. Where is the policy strategy that guides us through the pandemic, and to the post COVID-19 recovery? We’re missing that.”
In a November piece for The Globe and Mail, Mostafa Askari, Sahir Khan and Mr. Page write:
All governments need constraints. Politicians do not like to raise taxes. There is a bias toward deficits. Higher debt can create the risk of future economic instability. It can reduce fiscal room to address the next economic downturn. Constraints also signal future policy intentions of governments and are essential to promote accountability.
The Liberals' refusal to adopt a fiscal anchor is such that they continue to avoid accountability for their spending. We are facing a historic deficit of almost $400 billion. The total federal debt will reach $1.1 trillion this year, and the federal debt, as a percentage of GDP, has risen dramatically. If ever Canadians deserved transparency and accountability, now is the time.
With this in mind, I want to speak about part 7 of the bill. In this section of the legislation, the Liberals propose to amend the Borrowing Authority Act and the Financial Administration Act by increasing maximum borrowing authority for the federal government of Canada from $1.1 trillion to $1.8 trillion. Even as someone with years of experience in the financial sector, those figures seem very daunting to me. This increase is considerably more than the government needs to get through this next fiscal year. Moreover, it authorizes a massive expansion of the national debt all while the government refuses to identify a fiscal anchor and refuses transparency.
If the Liberals were swiping their own personal credit cards during these transactions, it would be one thing, but they are swiping the nation's credit card, knowing full well that hard-working Canadians will ultimately be stuck with a bill that will likely have to be paid through tax increases and will be passed on to future generations. This is money out of the pockets of real people, real families, and not just this generation.
Young parents trying to set aside money for their children's education, small business owners trying to meet payroll for employees and seniors on fixed incomes will all be affected by this increase to our national debt.
In the real world, when Canadians want to obtain a line of credit they have to show the lender that they are good for it. They have to show they will be able to make payments. They have to show that they are responsible stewards of the money that is being lent to them. That is how the three Cs of credit work: character, collateral and capacity. I, for one, do not see why the House should authorize such a significant increase of the government's maximum borrowing authority when it cannot even establish a baseline for its spending. Liberals have not demonstrated the ability to be responsible for increased debt.
This is about taking care of Canadians today and tomorrow. We owe it to future Canadians to ensure our public finances are sustainable. Debt is a moral issue: It is something that is owed to one by another with the understanding that what is owed must be paid back. This is a basic principle, and one that is almost universally understood within the context of business, finance and even personal relationships. If we borrow money from the bank to finance the purchase of a home or vehicle, there is an understanding and a binding agreement as to how and when that loan will be paid back. The borrower is taking on that debt, and with it the responsibility to repay the amount borrowed from the lender. A commitment has been made to restore the financial situation of the lender. The refusal or failure to do so will result in penalties, or at the very least adverse effects to the credit and financial well-being of the borrower.
To borrow without the ability or a clear plan to repay is foolish. While in our culture some debt is usually unavoidable, it is a reality that most of us try to avoid it. We do not want to be in debt. We do not want to be enslaved to interest payments. We want to be free. The government does not have its own money, it only has the money that it receives from the taxation of its citizens. When it needs more money, the government only has three choices: raise taxes, cut spending or borrow.
As my colleague, the member for Carleton, has so succinctly put it, paycheques are the solution. Canadians need opportunities to work. This puts food on their tables and produces tax revenue governments need to provide important services. It is time that the Liberals focus on creating opportunities for Canadians. There are many ways to achieve that objective. Stop raising taxes such as the carbon tax and the CPP payroll tax. Accelerate project permit application processing for infrastructure. Repeal Bill C-69 and Bill C-48. Ideas like these create space for a real recovery.
Let us pursue sustainability and fiscally responsible policies that get Canadians not just through this economic slump, but actually out of it.
View Dan Albas Profile
CPC (BC)
Mr. Speaker, I find it somewhat ironic that on this day, Groundhog Day, not unlike the plot of the movie of the same name, we find ourselves back in this place making further adjustments to the government's response to the pandemic. I do not offer that comment as a criticism of the government. I raise that point to serve as a reminder that we have been here before.
I also raise the point because we should all recognize that we may be here again, doing something similar in the future. I believe all of us would agree that, ideally, we would prefer that would not be the case. I am certain we would much rather see these troubled times put behind us. However, we know that the vaccine rollout has not, to date, gone well for Canada. We know that new and more deadly variants of this virus are being identified in different parts of Canada, and that should be concerning to us all.
For the record, I do not mention the slow pace of vaccine rollouts in my comments today as a political tack. I am certain that the government, like any government, would like to see a more timely and successful vaccine rollout. I would also add that that is not what we are here to debate in this bill today.
I am raising these concerns for a different reason, and I will come back to that. Let us first acknowledge that this bill proposes measures that we all support.
We support the enhancements to the Canada child benefit. The political notion of providing direct support to families was actually developed by a Conservative government in spite of the Liberals' claims at the time that parents would waste the money on beer and popcorn. When they came to power, the Liberals adopted this program and made other improvements. I have to give them credit for that.
In Canada, during the pandemic, the official opposition also supported programs such as the CERB, the Canada emergency wage subsidy and the Canada emergency business account. There may have been some disagreements about the best way to implement them, however, in principle, we agreed with these programs.
For that reason, I will not be focusing today on the elements of the debate on which we agree. As many of us know, this bill is essentially divided into seven different parts. The official opposition supports most parts of the bill. However, we strongly disagree with part 7.
Part 7 of the bill proposes to increase the Borrowing Authority Act, basically to add another $323 billion in incremental borrowing until March 31, 2024. The official opposition would prefer to split this from the bill so that matters we do agree on can be voted on separately. We believe it is important to have a separate debate on that borrowing, which significantly increases our debt. Before some might say to themselves that I am being a typical Conservative, I would ask that everyone hears me out.
First, let me summarize briefly where we are. In 2015, the Liberal government promised to run modest deficits before returning to a balanced budget in 2019. Every person, whether in the chamber or here virtually, knows this did not happen. I am not here to revisit that, but simply to place it on the record as being a factual point.
In 2019, given the absence of following that fiscal plan, a new fiscal plan came from the government, and it was based on debt-to-GDP ratio. The Liberal thinking told us that as long as our debt-to-GDP ratio remained within certain parameters, everything would be fine. However, every person participating in this debate, whether in the chamber or attending virtually, knows that the debt-to-GDP targets are have now been thrown out the window. Again, I raise that because it is factually true.
We are now in a new situation, where the latest Liberal thinking has it that we cannot afford not to borrow more money, since interest rates are so low. Just because interest rates are this low it does not mean that it is okay to borrow so much money.
One has to wonder: What would happen if this plan, much like the Liberals' previous financial plans, proved to be wrong? What will happen if, or rather when, interest rates rise?
It is our job to be asking these questions. We need to ask ourselves how the decisions we are making today will affect Canadians in the future. If we are being honest with ourselves, how would we answer that question?
Some may say that hypothetical questions are irrelevant and that we need to focus on the now, since we are in the middle of a pandemic. I would like to take these people back to the same period last year.
One year ago, we had a health minister who told us that border closures would not work, and that travel restrictions would not only not work, but also could actually be harmful. We were told that they could stigmatize others. On that same note, we were also told that wearing masks was not recommended, as they would provide a false sense of security and should be avoided.
Now we all know how those polices turned out. I am not looking to belittle the government or government members. I am simply looking to point out how spectacularly wrong this advice was. How and why does this matter in the bill that we are debating today? It is because we have to accept that we have new and more deadly variants of this virus and that we are well behind in the vaccination fight against the original variant.
We may be in this fight for much longer than any of us would have ever anticipated or want to be. Obviously, we all have to hope and work hard to ensure that that is not the case. At the same time, we have to be prepared. That brings me back to part 7 of this bill, which fiscally proposes unprecedented borrowing to continue the firehose-like spending.
I would like to believe that most of us, even if it is not all of us, understand that the federal government cannot keep spending at the same rate as it has been. These expenditures are not sustainable in the long term. The Parliamentary Budget Officer said so, as did other leading economists.
Obviously, the government is very much hoping that this record spending will help us get through the pandemic. However, at some point, we will have to step back and ask ourselves whether the rate of spending is commensurate with how long we can actually fight the pandemic.
That brings me to my next question. Do we want these issues to be asked, debated and examined by Parliament or do we want to continue to allow the Liberal government to sign blank cheques and trust it to spend money in secret, just as it has been doing so far?
I think we all know the answer to that question.
We have an official opposition, and a third and a fourth party for a reason. It is to hold the government to account and now, more than ever, we need to do that job. I am hopeful that other members of this House will see the benefits of splitting part 7 from this bill and will agree.
View Mike Lake Profile
CPC (AB)
View Mike Lake Profile
2021-02-02 16:25 [p.3924]
Mr. Speaker, it is great to have this opportunity to participate in the debate today. I have listened intently to previous speakers. It is very interesting to hear the Liberals' questions and the different types of points they are trying to make in the debate.
We heard the member for Yukon a little while ago talking about the Harper record going back to the economic meltdown in 2008 and criticizing the Harper government's spending, which was many times less than what we are talking about right now. I was elected in 2006. The hon. member was around during that time as well. He might recall that during that time we could not spend enough to make Liberal members of Parliament happy. Certainly, one of the absolutely critical things we did was to lay out a road map during a very difficult time to get back to balanced budgets. We had a surplus leading up to that point, very different circumstances from what we find ourselves in at this point, and we laid out a seven-year plan to get back to budget balance. I had the opportunity to serve on the cabinet subcommittee that evaluated plans from departments and ministers to get back to balance, and I am pleased to say that by 2015 we maintained that schedule and got back to balance. There is no conversations right now with the current government on the long-term impact of the spending we are now undertaking.
There is a lot of talk about deficits and previous governments' deficits. When we take a look at the deficit cycle of governments from 1968 until today, it is easy to trace back exactly why we wound up having the fiscal situation and debt we have right now. We can go back to 1968 when we had almost no debt in this country. We had the Pierre Trudeau government at that time, which made a very deliberate decision to run deficits in 14 out of 15 years.
We ran those deficits in 14 out of 15 years, and then by 1984 the country was in crisis. Rates were through the roof. Interest rates were in the high teens and 20s. In the previous years the Liberals, like the current government, had run an absolutely disastrous energy plan, which was devastating to the people of my constituency in Alberta. Yes, in the Mulroney years the deficits were even higher, but if we look at those Mulroney years, those deficits were actually almost entirely made up of interest on Trudeau's debt. It is very important to understand that. Because interest rates were so high, the Mulroney deficits were almost entirely the interest on Trudeau's debt.
Then we fast-forward to the late nineties and another Liberal government, the Chrétien-Martin government. That generation of Canadians had to pay for the debt that was accumulated back in the seventies and early eighties under the Trudeau government. It was a generation later, and we can see there is a parallel here and a predictor of the future. The impact then was that the Trudeau-Martin Liberal government cut $35 billion from health care, social services and education transfers through the Canada health transfer and the Canada social transfer. There were devastating cuts down the road because of the spending that happened in the late sixties, the seventies and the eighties.
When we listened to question period today, it does not seem to matter what question is asked. All three main opposition parties can ask very legitimate questions about vaccines, testing or spending programs, and they are almost always answered with derision and condescension by the Prime Minister and other ministers, but particularly by the Prime Minister. Almost every question is met with an accusation of our playing political games, and again, it does not matter which party asks. Then we get this sort of throw-away line, without the ministers ever really answering the question about when vaccines might be coming, or answering the legitimate question today about how many Canadians would need to be vaccinated, and what the evidence shows, before we can start to come out of the lockdowns. These are things that my constituents desperately want to know.
We hear this throw-away line that the government has Canadians' backs. What does that actually mean? First of all, it is a line that gets used for almost every question without the person actually giving a response to the question. It is very calming. It is presented in a very calm fashion by someone who has clearly been trained in delivering lines, but it does not say anything.
If we look closely at that, when they say the government has Canadians' backs, it is not really the government that has Canadians' backs, it is not the Prime Minister who has Canadians' backs, but our kids and our grandkids who ultimately have Canadians' backs right now, because our kids and grandkids are going to be paying for the deficits we are running right now. It does not mean we should not be doing it. Absolutely, I think members from all sides, from all parties, believe that we should be spending and running a pretty significant deficit right now.
However, as we are putting forward these plans for spending, there needs to be some hope, some vision for the future, and a consideration, an acknowledgement at least, that the spending we are undertaking right now is a trade-off. There is going to be a trade-off from that spending down the road. In other words, future generations of Canadians are going to forgo a certain level of their quality of life because this money will have to be paid back, or money will have to be spent to pay for the interest charges on the debt we are incurring right now. That money will not be able to be spent on other things.
The previous speaker eloquently brought up the member for Carleton's question about interest rates, which has been asked a lot. I remember the night we had a debate with the finance minister and the opportunity to ask him those questions. There was a complete refusal to acknowledge that interest rates can go up at some point in the future and that there might be a cost to that.
If we take a look at the interest rates in the situation we saw in the 1970s, there is a clear lesson in this. Back in August 1971, the interest rate in Canada, the overnight rate, was 5%. By August 1976, the interest rate was 9.25%. That was very high, obviously. However, it was nothing, because by August 1981 the interest rate had risen to an astonishing 20.78%.
The lesson for us here is that in August 1971 the Trudeau government would never have envisioned an interest rate of 20.78% as it was just starting on the road of ramping up its deficits. In 1976, things had started to get out of control; things had changed in the energy market and there were all sorts of factors that were leading to that interest rate going up, but the government had kind of lost control a little.
By 1981, we were in a spiral. At the same time, there was a national energy program that was devastating on the revenue side. I will not have enough time to get into that. Maybe someone could ask me a question about it and the parallel it has with our policy today. I would love to have that opportunity.
By 1981, we had a 20.78% interest rate, and ever since that time, governments have run deficits or we have had significant debt in this country, and we have been making interest payments on the debt that was run up during that time and forgone the opportunity to pay for things that we could have used those revenues for.
I have lots of other things I could say. I could talk about the government's absolute inability to generate innovation or take advantage of the substantial innovative capacity here in Canada around testing and the development of rapid testing, the development and procurement of vaccines, and the possibility that spending on those things early on might have resulted in a decreased need to spend the $30 billion a month we are spending on support programs right now.
I will wrap up here and look forward to taking questions from my colleagues.
View Cathy McLeod Profile
CPC (BC)
Madam Speaker, this is a very important debate that we are having today. The most critical things facing this country right now are the fiscal economic situation and, of course, the vaccine situation. I have the privilege and honour of speaking to the vaccine issue this evening, which is where I am going focus most of my remarks in terms of the fiscal economic update.
Before us today we have Bill C-14, a bill to enact certain provisions of the economic statement. As members are aware, we had an economic statement tabled in this House. It was a fairly significant update, especially considering that we have not had a budget in in this House in the last two years.
First of all, I want to talk a little about history, because if I am leery about what the government is putting before us, it is with very good reason. As many people may recall, at one point the Prime Minister made the very infamous, or famous, comments about how budgets would balance themselves, and from the heart out. Clearly, budgets do not balance themselves.
In 2015 the current Liberal government had the good fortune to assume a very strong economy and a strong fiscal position. After working our way through the global recession, which was an extraordinary challenge, Conservatives did exactly what we said we would do. We said were going to put some stimulus into the economy, and we put that stimulus in. We said we would get back to a balanced budget in a certain time frame. Many, certainly on my side of the House, miss our colleague Jim Flaherty, who was so articulate and so thoughtful in terms of how he was going to deal with both taking care of the economy of the nation and taking care of the government's finances.
After finding that budgets clearly do not balance themselves, the Liberals, who promised a balanced budget, found that they could not do that, so they started to talk about the debt-to-GDP ratio, and Liberals were actually having trouble meeting their fiscal anchors in terms of the debt-to-GDP ratio. Essentially what Liberals have done is abandon any sort of attempt at trying to maintain some sort of control, so we have no fiscal anchor.
Before the crisis hit, we had issues with an aging population and poor productivity. We had challenges and we were heading into some very difficult times. This was pre-pandemic. I do not know if people are aware of the flight of capital that was leaving this country because of some of the policies and positions the Liberal government was putting in place. We were seeing a flight of investments leaving Canada.
The pandemic, of course, is an extraordinary crisis, and countries across the world are having to determine how they are going to deal with this extraordinary crisis.
We now know that we have gone from a $20-billion-plus deficit to likely one over $400 billion and that we have surpassed $1 trillion in debt. Day after day, I have witnessed a Prime Minister out on the porch announcing significant dollars with unfettered concern.
I do want to say, for those Liberals who are listening, that yes, we supported those measures, and yes, they were important measures during these extraordinary circumstances, but we certainly did not support everything the Prime Minister was announcing every day. We did realize that the CERB and rental assistance had to go out. However, there is a difference between supporting measures in the pandemic and some of the unfettered spending that we have seen.
What we have before is a fiscal update and a vague commitment by the Minister of Finance that she was going to have to spend $100 billion to build back better, so Canadians can understand if we are a little leery in terms of what the Liberals plan to do and how they plan to do it.
Within this particular update, there are some important measures. I will talk about the area of specific concern in part 7 after I reflect on one part of what the concern was. This is where the government needs to do some soul-searching and really wonder how it handled this pandemic. I am talking about long-term care homes.
We know that the vast majority of the deaths from the pandemic have been in our long-term care homes. We knew that in phase one. When we look at the tragedy that is happening today and what is happening in our long-term care homes, it has to break our hearts.
I certainly remember that at the time, we said the government had a window of opportunity to prepare for phase two. We knew we had challenges in our homes and we knew we had some time between phase one and phase two. What happened? The government got so sidetracked with the WE scandal and other issues that, other than sending some money to the provinces to support vulnerable populations, it did nothing.
We now have a commitment from the government for a few things. One is $1 billion for our long-term care homes. It is too late. That $1 billion should have been in the hands of the provinces between phase one and phase two to deal with infection control and do the minor modifications that would make the environment safer through investing capital into infrastructure for airflow. The Liberals had a window of opportunity; they missed it, and now they are saying that they are going to give $1 billion. By the time that money gets out the door, hopefully our residents will be vaccinated, but they missed an opportunity to do what needed to be done, and now they are saying they are going to give $1 billion for measures that should have been done months ago.
The other thing is that their answer to long-term care was talking about national standards. Whether one agrees with national standards or does not agree, everyone in government knew that it would take years to develop national standards. It was not a measure that was going to deal with the crisis of the pandemic.
What we have is a government that was negligent. The Liberals were sidetracked because they were so busy handing dollars to their friends at WE that they did not do the basics that they should have been doing to prepare for wave two, and that negligence is on their shoulders.
That is just one part of the fiscal update, and when I read it, it broke my heart, because it is too late. It should have been there earlier, so I felt it was important to draw attention to that particular component.
To go back to the main legislation, perhaps the reason that I find it so difficult to support it is that we have not had a budget. We had an economic update. We had some very vague talk from the finance minister about building back better, picking their winners and losers and, if it is anything like WE, making sure that Liberal-friendly companies were part of that build back better idea.
What they have asked for in part 7 is spending authority to be able to borrow money that far exceeds even their $100 billion. For any parliamentarian to give that authorization for borrowing power to the Government of Canada without having had a budget in the last two years is, quite frankly, irresponsible.
Therefore, I would recommend that the government take part 7 out of this legislation. Let us move forward with those measures in parts 1 to 6 that are actually going to help people. That would certainly be an approach that would be supportable.
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2020-12-08 14:30 [p.3150]
Mr. Speaker, preloaded stimulus sounds like she wants to use Canadians' savings as her own preloaded credit card, but this is no surprise from a government that is running the biggest deficit in the G20 by far, even with the worst unemployment, other than Italy, and has among the higher rates of COVID mortality.
Now the minister says she has no fiscal anchor. Instead, she has fiscal guardrails that will one day be attached to a fiscal anchor. Will the anchor at the bottom of the sea not pull those guardrails off the edge of the cliff?
View Chrystia Freeland Profile
Lib. (ON)
Mr. Speaker, the member opposite still seems to have some trouble understanding why it is good economics to support our small businesses and to encourage Canadians to do that. Therefore, let me quote someone he might find a little more simpatico, Ontario's Conservative premier Doug Ford.
Here is what he has had to say: “Now more than ever, we need to support our own.... During #COVID19 business supported communities and healthcare workers, now it’s time to support them as consumers.” I could not agree more.
View Gérard Deltell Profile
CPC (QC)
View Gérard Deltell Profile
2020-10-30 11:28 [p.1480]
Madam Speaker, unfortunately, Canada has the highest unemployment rate of all the G7 countries. Unfortunately, Canada is the only G7 country that does not have an economic recovery plan. Unfortunately, Canada still does not have a government that knows where it is going in matters of public finance. It has no budget and no economic update. What is worse, the Prime Minister said this week that spending is not being regulated. We suspected as much, but at least now he has finally admitted it.
Could the Prime Minister tell Canadians that he is aware that when his government spends recklessly, sooner or later, our children and our grandchildren will have to pay the price?
View Kevin Lamoureux Profile
Lib. (MB)
View Kevin Lamoureux Profile
2020-10-30 11:29 [p.1480]
Madam Speaker, as I am sure the member is aware, in the last number of months, the government has engaged in many different ways, with different levels of government, to work collaboratively on a restart program, among many other programs, to ensure that Canadians as a whole are in a much better position to combat the coronavirus and its impacts.
We are looking to the official opposition and others to work collaboratively with the government so that we can continue to be there for Canadians in a very real and tangible way.
View Gérard Deltell Profile
CPC (QC)
View Gérard Deltell Profile
2020-10-30 11:30 [p.1480]
Madam Speaker, the lengthy silence that preceded the parliamentary secretary's answer is very telling. Obviously, the government has no idea where it is going with regard to public spending.
Meanwhile, the Government of Quebec already has an economic update in place. Yes, the Quebec government is running deficits, but it has a goal. The Quebec finance minister said that the budget would be balanced by 2026.
What is the federal government's plan?
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2020-10-30 11:31 [p.1480]
Madam Speaker, what I would say to the hon. member is that if his house was on fire, I would tell him to save the people inside and put the fire out. The Conservative approach seems, instead, to be to shut off the hose over the concern of the future price of water.
We entered this pandemic with the healthiest fiscal situation in the G7. We have used the fiscal firepower we have to help families keep food on the table and a roof over their heads. We have used that fiscal firepower to help keep the doors open at businesses and workers on the payroll.
Canadians deserve to have a government that will commit to getting them through this pandemic, no matter what it takes. That is exactly what we are going to deliver.
View Garnett Genuis Profile
CPC (AB)
Mr. Speaker, I would like to ask this member about fiscal anchors in terms of the government's plans and its proposal with respect to spending. Does the member think at some point the government should balance the budget, and if so, when? Is there a limit to the amount of money the government should be spending? How much is too much? If the government was spending $600 billion or $700 billion in deficit, at what point would this member say that it is too much?
View Rachel Bendayan Profile
Lib. (QC)
View Rachel Bendayan Profile
2020-10-06 10:16 [p.587]
Madam Speaker, on this side of the House, we are committed to spending responsibly. The reality is that, at the moment, we have historically low interest rates. The alternative, to not spend to support Canadians, small businesses and families, would be far more expensive in the long term. Standing idly by is not an option for this government. We need to continue to be there for our entrepreneurs. We need to continue to be there in order to create jobs and make sure that our economy rebounds. We will continue to keep the House apprised of our spending and to act in the interests of all Canadians.
View Jasraj Singh Hallan Profile
CPC (AB)
Madam Speaker, the Prime Minister and the Liberal government have framed the Speech from the Throne as a necessary and updated vision for the country. Before I address the speech directly, it is important for Canadians to remember that we are debating a new Speech from the Throne because the Prime Minister prorogued Parliament for six weeks to avoid accountability. All of the committees that are investing his WE scandal were shut down, and that was the point.
With a new session of Parliament, the Prime Minister is hoping that all 7,000 of his fluffy but empty words in the throne speech will distract Canadians from his corruption and the WE scandal. I believe that Canadians are a lot smarter than the Liberals give them credit for. This necessary reset, as the government prefers to frame it, was supposedly required to respond to new realities exposed by the pandemic. In actuality, Parliament was perfectly capable of responding to the pandemic prior to prorogation and the Liberals only wasted valuable time.
The Conservatives will continue to hold the Prime Minister and the government accountable, and we will keep fighting for the answers that Canadians deserve.
To respond to the details of the throne speech, I note the government has tried to sell the throne speech as a bold and ambitious vision for Canada. However, the speech has completely missed the mark and is only more proof of the government's reckless economic policy and poor grasp of Canada's economic strengths.
The government has signalled that it will be taking on more debt but has yet to provide a fiscal framework. We have no idea of how the Liberals plan to pay it all back. The government does not seem to understand that debt incurred by the government is debt incurred by everyday taxpaying Canadians. These are people like our grocery store clerks, our nurses, our teachers and so on. Without a fiscal framework, how can we be assured that our children and the future generations of Canadians are not going to be overwhelmed by the government's debt?
The throne speech claims that the government is “guided by values of sustainability and [fiscal] prudence”, but the absence of a fiscal framework thus far proves otherwise. We have a government spending recklessly without a fiscal plan as Canadians navigate the challenges of a global pandemic. The Liberals are racking up a credit card without telling Canadians how or when it will all be paid back.
At the same time, the throne speech reveals a flawed plan for economic recovery. Canada is at a major crossroads in its development. There are some very clear choices that confront us right now. These choices are even more important in light of the economic crisis brought on by the COVID-19 shutdown. The government has chosen to effectively shut down our economy by restricting resource development and exports, with economic policies like carbon taxes, Bill C-69, which restricts new pipelines from being built, and Bill C-48, which is preventing exports of crude off the west coast, and generally discouraging investment in Canada's resources.
Exports are the lifeblood of the Canadian economy. In 2018, 56% of Canada's exported goods were directly from our resource industries. The government seems to think that it can replace these core industries with pixie dust. Despite expressing a commitment to economic recovery, the government has continued to neglect and even hinder resource development in this country during a time when we need these resources the most.
It has been akin to a hockey team benching its all-star players while trying to come back from being down six goals. These industries drive our economy, provide the jobs that Canadians depend on and provide the government revenues that keep our health care and education systems alive. These industries have made Canada the great nation that it is today, yet there was zero mention of supporting struggling resource workers. There was just a continued promise to sacrifice their lives by killing their industries with more taxes and regulations, an added double carbon tax hiding as the Canadian fuel standard and more. Do members know what the worst part is? It is that the government is taking the tax dollars paid by hard-working Alberta oil and gas workers and giving those dollars away to subsidized competitive industries that aim to end their existence. That sounds fair, does it not?
There was also a very large issue that the Prime Minister completely skipped in the Liberals' reset: western alienation. These Liberals stand up in the House day after day and completely deny that anyone in western Canada, in particular anyone in Alberta, feels alienated from Ottawa and the central government. I am here to say, as many of my colleagues have previously, that it is real and it is growing. The Liberals stand to say they are giving more money to Alberta than former prime minister Harper did. They accuse us of making up this crisis. We could not create this even if we tried. The alienation of Alberta is caused by the current government's antienergy, antiwest, anti-Alberta far-left policies that are causing this divide.
Albertans have never wanted a handout or to be bought. They just want the government to get out of the way. We want to be allowed to get back to work doing what we do best: extracting minerals and other resources from the ground, adding incredible value to them and selling them to the world. We have amazing resources and opportunities in this country, but the government wants to ignore them until they go away, because resource development does not fit into its ideological framework.
So many people have said this before me, but let me add my voice. Canada's oil and gas producers, miners, farmers and, in fact, everyone who participates in this economy care about the environment. Canada is leading the world when it comes to environmental sustainability. The investment in innovation and clean technology is incredible. I am fortunate enough to live among those who are leading this incredible innovation, which is taking place not just in the oil sands but in all of our extractive industries.
The Prime Minister likes to talk about balance, but he has achieved none of it. When hundreds of thousands are out of work and suicides are skyrocketing, that is an indication that the Liberals do not care about the economy side of this equation. We do not need to pit one region of this beautiful country against the others when we share common goals. A strong economy and environmental protection can go hand in hand, and we have already seen this happening in Canada. I wish that the government would stop listening to the far-left voices that are opposed to all resource development and seek that balance, even though these voices are also at the government's own cabinet table.
We are so blessed to live in a region flush with resources that Canada and the world require to maintain our high standard of living. Hundreds of thousands of people are employed in resource development. These same industries employ a significant number of first nations Canadians, as high as 6% of the oil and gas workforce. More and more first nations are taking ownership positions in large projects. All Canadians have a mutual desire to see these succeed.
Unfortunately, all we have heard from the government is its desire to ban single-use plastics. Where would we be during this pandemic without plastics? In literally every room in a hospital they are crucial. Masks are single-use, as are the gloves that so many people are wearing when they go out.
If the Liberals are truly interested in a team Canada approach in responding to the global pandemic, the government must provide a fiscal plan that ensures fiscal stability for future generations and an economic recovery that does not ignore our country's core strength of resource development. However, it seems the Prime Minister is only interested in racking up the credit card—
View Damien Kurek Profile
CPC (AB)
View Damien Kurek Profile
2020-10-06 10:51 [p.592]
Madam Speaker, it is an honour to enter into the debate on the throne speech and to express some very serious concerns I have with it.
The throne speech, at least in English, was nearly 7,000 words, with many catchphrases and talking points but very little substance.
I would like to address two themes. The first is why the government felt that it was even necessary to have a throne speech. Second, I would like to point out some specific challenges I have with the throne speech itself.
Regarding the prorogation of Parliament, I find it incredibly disturbing that the government felt it should shut down Parliament, and not just with the prorogation. The last eight months were bad enough, but in the middle of several concurrent investigations into the Prime Minister's conduct, Parliament was shut down. It shut down committees, members of Parliament and Canadians, truly. There is one place in the country that allows all the voices of Canadians to be heard, and that is within the hallowed walls of this chamber. The Prime Minister, in an extraordinary abuse of executive authority, used a legitimate parliamentary mechanism to shut down investigations into his own conduct, and that is shameful.
Unfortunately, but not surprising, after several months of denial and flip-flopping, when the government finally figured out, I think on March 13, that the COVID-19 coronavirus pandemic was actually serious and it changed course and we saw the first bill for some emergency relief measures brought forward, even though members of my party had brought up concerns about why there were no increased measures at airports or other actions being taken to ensure Canada would be better prepared to deal with the threat of this global pandemic. However, instead of it being simply about emergency relief, it was about an incredible abuse of executive power. We saw an attempted power grab, unlike anything I have seen in the country's history. The government wanted unlimited spending authority for more than a year and a half. In what democracy would that ever be deemed acceptable to even propose let alone justify it in the midst of a global pandemic? When Canadians deserved and needed help, the government looked out for nothing other than its own power. It is unbelievable.
For members opposite who are curious about some of the aspects of parliamentary procedure and who say we need this to be a legislative reset, I asked a question of one of the members from the Liberal Party here just a few minutes ago. He somehow suggested that the six weeks was necessary to ensure the Liberals could consult with Canadians on the throne speech. It is interesting that he mentioned a few examples about how he did town halls and whatnot. He also suggested other members were not talking to their constituents, which is insulting. I was asked to respond, but since I did not have a chance during the questions and comments I will respond now.
It is unbelievable and speaks to the Liberal elitist mentality to suggest that somehow their prorogation allowed them to have an inside track on influencing the future of the country in a minority Parliament. They should well know that it is this place that allows all voices to be heard, not simply Liberal Party voices. The Conservatives received more votes in the last election than the Liberals. The Liberals had a significantly reduced mandate after the last election, yet it seems they have refused to accept the will of the Canadian people when it comes to their place in Parliament and the fact that Parliament is truly an essential service.
My last point on the concerns around why we have a throne speech today is that the government seems to play quick and fast with all aspects of how it does business, such as manufacturing urgency with the passing of Bill C-2.
We could have been debating this for weeks. It could have been passed weeks ahead of the deadline, yet the government waited until the eleventh hour and showed up at a press conference. Then the Liberal House leader tweeted out that this was a confidence motion, that it must be passed or we could go to an election and Canadians would suffer as a result. It was circumstances manufactured by the government. That is typical Liberal elitism.
I digress in that regard and will move on to some of the serious concerns I have with the throne speech. I summed it up simply to my constituents when they asked me to describe in a sentence or two my feelings on it. I said that it was vague, expensive and Ottawa knows best.
On the vague aspect of it, there were few concrete measures. The Liberals talked about their four pillars of a recovery. They have a lot of catchphrases and slogans. If there was an award for catchphrases and slogans, the government would get it. It seems to be copying from various campaigns, even other election campaigns from other democracies around the world. It throws in these catchphrases and hopes that people will somehow believe they will get the job done. On this side of the House, we know that is not the case.
It is unfortunate that most of the aspects of the throne speech are simply recycled Liberal promises. I point to one example, which is its promise to plant two billion trees. It promised this in the last election, yet in the year that has passed, it has planted zero trees. However, we have an oil sands company that has planted millions. This speaks to the bigger context of the throne speech. Many promises were recycled. The Liberals seem to think that making these grand promises and having no plan for delivery somehow serves the best interests of Canadians, and that is simply not the case.
That is one of many examples. What could have been an opportunity to see many specific concrete paths forward for our country, we saw very few. This is unfortunate. It was a huge missed opportunity.
Further, it seemed to be a vanity project for the Prime Minister. He prorogued Parliament for six weeks and had the Governor General read a throne speech, a significant aspect of our parliamentary tradition that takes the focus off the politics of the country and allows our head of state to outline an agenda. However, that was not good enough for the Prime Minister. The Prime Minister had to have his face on television to continue his sorry trend of cottage chronicles, to have a televised address that simply repeated things.
I have much more to say, some of which I have addressed in other speeches, like the unity crisis. The fact is that we are six months into a fiscal year. I know many people who work in the Jim Flaherty building down the street, named after the former Conservative finance minister. There are incredibly intelligent and capable finance people in the department, yet the Minister of Finance said yesterday that it would not be prudent to estimate what the deficit would be. I know many of the people in the Finance Department have a good idea. I suspect it has more to do with the fact that Liberals are scared of what Canadians will think when they find out the cost and lack of accounting associated with their spending. At a time when all Canadians know we need to support those who need it, doing so without a plan is very unfortunate.
My last point is this. The Ottawa knows best mentality is best represented on page 18 of the throne speech. In talking about a national pharmacare strategy, the Liberals use a word when they talk about working with provinces to develop a pharmacare plan, of which there is no detail. They say that they will only work with “willing” provinces and territories.
When it comes to the government, it is clear that it is only willing to work with those who are willing to fall in line with its narrow ideology and perspective on what the future of our country should look like. That is driving in wedges across our country that are harming the capacity and capability of Canadians—
View Cathy McLeod Profile
CPC (BC)
Madam Speaker, it is good to see a fellow colleague from British Columbia deliver, virtually, a very thoughtful speech. She is one of the first former Liberals who has acknowledged the importance of a fiscal anchor. I wonder if she could talk a little more about her thinking around that fiscal anchor. We know that we are giving critical support right now, but it is frightening in terms of what ultimately will be our fiscal challenges and situation.
View Jody Wilson-Raybould Profile
Ind. (BC)
Madam Speaker, I thank the member from our home province of British Columbia. We need to continue to be very open and very transparent. I look forward to seeing the budget when it comes. Hopefully it speaks to the necessary need for fiscal anchors. We certainly do not have the debt-to-GDP declining fiscal anchor, so we need to be open and transparent and have conversations about it. I believe fundamentally in fiscal responsibility. I also believe in sustainability and support for Canadians, and in having conversations across the House on fiscal accountability.
View Steven Blaney Profile
CPC (QC)
Mr. Speaker, I am pleased to participate virtually today. I would like to take this opportunity to say hello to my House of Commons colleagues and everyone following our proceedings. I would like to point out that I am taking part in today's proceedings from the city of Lévis, which is currently in a red zone. I want to commend the resilience of the people of Bellechasse—Les Etchemins—Lévis who are experiencing the strains of the lockdown.
The purpose of my intervention today is to convey that I cannot support the Speech from the Throne delivered by the Governor General on September 23, 2020.
The role of government and of parliamentarians is to help and support people, to minimize the impacts of the pandemic and to try to make things run smoothly. I simply cannot support the throne speech because there are two fundamental components missing from it, things that would help people in red zones, like the people of Lévis.
Measures need to be put in place immediately to deal with the resurgence of the pandemic. That includes quicker testing and results analysis. For example, the wife of one of my colleagues who works in the education system was tested for COVID-19 and has been waiting for three days now for her results, which means that my colleague also has to wait for the results. That is paralyzing the work of our organizations, despite telework being an option. It slows things down, not to mention the fact that some jobs require staff to be on site.
In our region, there are a lot of manufacturing jobs. These measures are needed immediately to support public health authorities in order to make testing faster, something that is not clearly set out in the throne speech.
Another necessary measure involves providing reasonable and targeted support to businesses and individuals during the pandemic so that the government remains agile and flexible once it is over. Unfortunately, even before the pandemic, the Liberals were already caught in a deficit spiral. Right now we are far from improving our situation.
What is in a throne speech? As my colleague from British Columbia mentioned, we usually expect a throne speech to present a vision.
This vision could have explained how to fight the pandemic and help people right now while presenting a plan for the medium term. However, neither of these elements is in the throne speech. On the contrary, it is chock full of all kinds of promises. Having many priorities means that there are none. It is just a jumble of words. Unfortunately, this does not meet our immediate needs as the pandemic surges and we are experiencing a second wave.
In my view, the best analysis of the throne speech is the one provided by the Parliamentary Budget Officer. His analysis leads us to conclude that the throne speech is not what Canada needs right now to face the pandemic. We should remember that the Parliamentary Budget Officer is an independent officer and he is in some ways the government watchdog. He is there to remind the government that it must stay on track if it wants to prevent problems from arising further down the road.
We have seen the warning signs. Before the throne speech, my old colleague and former finance minister, Joe Oliver, said that it is time for Canada to pick a fiscal anchor.
Of course we need to support people. In 2008, the Conservatives did that through massive infrastructure investments to stimulate the economy. Many projects got built in my riding, including the Lac-Etchemin arena, the Lévis water treatment plant and the Notre-Dame-Auxiliatrice-de-Buckland infrastructure project. Those were measurable outcomes of targeted investments, and the Conservatives also had a plan at the time to balance the budget.
A former Liberal finance minister, John Manley, said it is important to have a fiscal anchor because that shows the financial markets that Canada is supporting people and knows where it is going in the medium term. Unfortunately, the throne speech proves that this government is going in the opposite direction.
According to the Parliamentary Budget Officer's economic outlook, it is possible to get through the pandemic and stay on track with realistic fiscal anchors, but that will not be possible if the government engages in new spending.
As my colleague from British Columbia said, the Liberals are interfering in programs that are provincial responsibilities. As the saying goes, they are throwing money out the window. That is not the sound management we expect. Moreover, financial markets are worried. Firms such as Fitch Ratings have downgraded Canada, and credit rating agencies such as Bloomberg and Moody's have warned Canada that if it does not stop spending shamelessly and keeps introducing poorly targeted measures, it is going to crash and burn.
We want to support Canadians, but we want to be able to do that now and in the long term. The measures proposed by the Liberals combined with the government's extravagant spending would threaten the social safety net in the medium term. That is troubling. We are not even close to achieving sustainable development.
According to the Parliamentary Budget Officer, there is a risk that the sustainable debt-to-GDP trajectory could be reversed. In other words, if we continue to spend excessively on extravagant and poorly targeted measures, we will be temporarily “doped” by a significant cash injection, but we will have to pay for the damage in the medium and long term, since this is borrowed money.
There is another aspect that concerns me. The Speech from the Throne says that interest rates are going to stay low for decades to come. Of course that is unrealistic. The Bank of Canada's key interest rate is currently 0.25%. According to the Parliamentary Budget Officer's assumption, that rate could remain stable for the next three years, but it is expected to increase by 1% within five years' time. That is five times higher than the current key rate. The rate would remain fixed at 1.25%, but that would still increase the debt by $8 billion. The government seems to be deluding itself regarding easy credit.
The third thing that worries me is the government's poorly targeted measures. People received more money than they lost from their savings. This is borrowed money, though. It belongs to the government.
Canadians' household income went up by 5.4%. That is nice to see, but since this is borrowed money, it will have to be paid back. The problem is that the Liberal government makes poor spending choices and implements measures that hurt the economy. For example, it did not encourage people to stay connected to their jobs or to return to work.
I will not support the throne speech because it contains extravagant expenses, is devoid of any fiscal anchors and does not present short-term measures to combat the pandemic.
In conclusion, I would like to thank the Chair for coordinating the hybrid sitting. This is the first time I have participated.
I will now yield the floor to my colleagues and I would be happy to take questions.
View Glen Motz Profile
CPC (AB)
Mr. Speaker, as we know, in just the last few years the Liberal government is set to triple our national debt. Can the member explain the Liberal plan to balance our budget or does he want to admit that it really does not have a plan to balance the budget?
View Robert Morrissey Profile
Lib. (PE)
View Robert Morrissey Profile
2020-10-06 12:51 [p.610]
Mr. Speaker, one of the great myths is the hypocrisy that often occurs within the Conservative Party when questioning in the House on the balancing of budgets. We can listen to the rhetoric that we hear day after day coming from across the floor or we can look at the actual practice of Conservative governments. We have had two in the past, one in the late eighties that racked up the biggest deficit at the time in the history of the country when facing no extraordinary measures. Therefore, it is a bit ironic for the Conservative Party to lecture this government on balancing books when it barely did it on one minor occasion in about 20 years of governing.
View Dane Lloyd Profile
CPC (AB)
View Dane Lloyd Profile
2020-10-06 13:08 [p.612]
Mr. Speaker, it is an honour to once again rise in this House to represent the good people of Sturgeon River—Parkland.
The past six months have been a time of tremendous trial for my constituents and all Canadians. Loved ones have been lost, families have been separated, businesses have shut down permanently and our government has failed to provide a clear plan for a way forward for this country.
Alberta and the other western provinces were hurting before this pandemic. Hundreds of thousands of jobs have been lost, including in my constituency. The Liberals have refused to sign off on new resource projects, costing thousands of jobs and billions in investments. Their infrastructure bank and infrastructure minister have failed to deliver billions of dollars in investments, costing our communities and many more thousands of jobs. Just the other day, Alberta was hurt again with the announcement that Suncor will be laying off thousands of workers, along with TC Energy.
Canadians pulled together to get us through the first wave of COVID-19. We endured lockdowns in the spring that cost hundreds of thousands of jobs and closed tens of thousands of businesses. Yes, we saved lives, but what did the Liberal government do with the sacrifice of Canadians? It dithered.
While our government could have spent the summer procuring rapid testing or planning for an economic recovery, it focused all its energy on shutting down an investigation into its own ethical failures. We have yet to receive the full details of the WE Charity scandal created by the Liberal Prime Minister, and if the Liberals had it their way, Canadians would never know the full truth. That is why we are here today, not even a year since the last Speech from the Throne: Instead of governing the nation through this crisis, the Liberals chose to play political games, prorogue Parliament and shut down any committee investigations into their wrongdoing.
Our Conservative team will not relent. We will hold the Liberal government accountable for its ethical failures. I know that on this side of the House, we are looking forward to sunny ways and sunny days indeed. While many Canadians may be dealing with a COVID pandemic, the government is dealing with an ethical sickness. The Prime Minister has been fond of telling the opposition that sunlight is the best disinfectant, and we have heard him loud and clear. We will be taking his advice and prescribing a full dosage.
There is a pandemic, and everyone out west is talking about it, but it is not COVID-19; it is the joblessness pandemic. It is a disease that has been with us for years before COVID-19 hit us. Unfortunately, rather than working tirelessly to save our struggling energy industry and the western economies, the Liberals looked eager to dance on our graves and declare our economy bust.
Why else would nearly every decision since their election in 2015 appear to be targeted toward undermining our jobs and energy industry, whether it be the pipeline-killing Bill C-69, their carbon tax or now their mega carbon tax that is masquerading as a clean fuel standard? Why is it that whenever western MPs stand up for their constituents, they are accused of only playing to regional interests? Whenever our auto sector or aerospace sector is threatened, all Canadian MPs are called together to stand up to save jobs, yet we hear nothing when our energy sector is suffering.
Alberta was proud to support fellow Canadians in the 2008 financial crisis. We carried this country's economy when the federal government had to bail out an American auto company. We were proud to support our brothers and sisters in Newfoundland and Labrador when their offshore industry was suffering. When the Atlantic economy was struggling, it was the cheques sent home by Atlantic workers working in the Alberta oil patch that kept families going.
Today, Albertans are struggling and Saskatchewan is struggling. The west is struggling. The engine of Canada's economy is facing record unemployment. Where is our federal government to lend us a hand? We have shovel-ready projects that will create tens of thousands of jobs. We do not even need a bailout from taxpayers; we just need the Liberal government to get out of the way.
The Nova Gas Transmission line, which has been waiting for nearly a year for federal approval, would create 5,500 jobs. It is the next generation of polypropylene production in the Alberta industrial heartland. At least 2,500 jobs are on the line, yet the Liberals are pushing forward with their antiplastic manufacturing agenda. With the Liberal mega carbon tax at an estimated $350 a tonne, major players that produce fertilizer to feed our farms and produce fuel to heat our homes are at risk of packing up and moving south of the border. Western Canadians do not need a minister of the middle class and those working hard to join it; we need a minister of the middle class and those working hard just to survive and stay middle class.
The Liberals are promising Canadians a lot of goodies in the throne speech, but nothing that has been promised has not been promised before by the Liberal government. The Liberals will say that this time is different, that they are working with the NDP, which holds the balance of power. We have heard this story before. I have a word of caution to my colleagues in the NDP. They can learn a lot from the B.C. Green Party or the Liberal Democrats in the U.K.: Things never really work out for the junior partner.
The throne speech should be praised for its commitment to recycling. By that I mean recycling old Liberal talking points. The Liberals have promised universal pharmacare and a universal day care system. They have promised universal broadband as well. Yet, they have been in power for five years and have failed to deliver for rural communities.
All of this is happening while the Liberals continue to plow forward with the greatest expansion of government spending and debt financing in modern Canadian history. This is over $400 billion in federal deficit, not counting the hundreds of billions taken out by arm's-length Crown corporations such as the Bank of Canada, BDC, EDC and the CMHC. This is hundreds of billions off the government's books, but hundreds of billions that Canadian taxpayers will still have to pay for if things go bust.
How exactly are the Liberals going to finance this new pandemic debt, while also launching the most radical expansion of the Canadian welfare state in a generation? It is with low interest rates, cries the Prime Minister. We can afford everything, as if we can sustain low interest rates for decades on end without the consequences of massive inflation: inflation that will erode the savings of our vulnerable seniors, inflation that will risk the opportunity for millennials and those in generation Z to buy their first home and inflation that will devalue the hard-earned wages of the working class for the benefit of big business and debt holders.
If the government chooses not to go down that disastrous path, we are left with two alternatives: They will increase taxes to finance this new spending or they will cut spending in other areas to reallocate to these new promises.
Will the Liberals be cutting the child care benefit and child care expenses tax deduction for families so they can pay for their new national day care system? Will families be denied the choice of whether to stay home with their young children or send them to day care? When the Liberals remove the Canada child benefit and tax deductions, that is exactly what they are doing. They are removing choice from parents who want to raise their children at home.
How will the government pay for this new universal pharmacare system? Will they cut health transfers like the Liberals did back in the 1990s? Will they refuse to allow new life-saving drugs like Trikafta, which miraculously saved the lives of those with cystic fibrosis?
If they do not cut spending, they will have to raise taxes. The throne speech talks a bit about this. It talks about raising taxes on digital giants and closing stock loopholes. This is not necessarily something I disagree with, but will these new taxes generate the tens of billions in new dollars that will finance universal day care and universal pharmacare? The fact is that they will not.
We are left with few alternatives. Will the Liberals raise the GST that the Conservatives lowered from 7% to 5%? Will they raise personal income taxes or capital gains taxes? Are they going to raise corporation taxes and risk capital and investment being taken to our neighbour to the south, a low-tax jurisdiction?
It is time for the Liberals to be honest with Canadians about their fiscal plan. Canadians deserve that honesty. Will the Liberals allow mass inflation to destroy the middle class? Will they raise taxes on Canadian families? Will they cut spending and benefits? Will it be a combination of all three? Canadians deserve a real answer.
View Chris Bittle Profile
Lib. (ON)
View Chris Bittle Profile
2020-10-06 13:17 [p.614]
Mr. Speaker, the member talked about our neighbours to the south and pointed to their finances and the way they operate in terms of taxation. However, clearly their deficits, debt-to-GDP ratio and deficit-to-GDP ratio are much higher.
Is that a jurisdiction we should model for our taxes and social programs? I am wondering if the member could elaborate on how Canada should run more like the United States.
View Dane Lloyd Profile
CPC (AB)
View Dane Lloyd Profile
2020-10-06 13:18 [p.614]
Mr. Speaker, the United States is a completely different jurisdiction from Canada. It is a worldwide reserve currency. When they print dollars, the world is ready to lend the United States money.
Back in the 1990s, there was a time, under a previous Liberal administration, that the world refused to lend Canadians money. We cannot simply allow the Bank of Canada to keep printing money and buying up Canada's debt. There is going to be a consequence to this. We will hit a fiscal wall and have massive inflation, tax hikes, job cuts and spending cuts.
The Liberals have to pick their poison and stop living in this fairy tale world they are making up. There are going to be consequences. They need to come up with a plan because Canadians deserve to know what their fiscal plan is.
View Yvan Baker Profile
Lib. (ON)
View Yvan Baker Profile
2020-10-06 15:11 [p.634]
Mr. Speaker, just before question period, I was speaking about some of the elements of the throne speech that are particularly important and will be impactful to members of my community. I had spoken about how the throne speech proposes measures to protect Canadians and now I want to talk about how we are supporting Canadians through the pandemic.
We all know very well that countless people across Canada, and in my community of Etobicoke Centre, are suffering economically as a result of the pandemic. Many have lost their jobs and incomes have been impacted and declined. There are a number of measures that we have implemented and will be implementing through the throne speech going forward to address these challenges.
The first category is supporting workers and their families. That is why we created the CERB, so Canadians could continue to pay their bills. We are also transitioning to a redesigned EI program, one that allows people to qualify more easily, one that will allow self-employed workers to qualify. A number of other programs we are launching shortly will support Canadians who need help through this pandemic.
Through the throne speech, we are also taking measures to create jobs. There is a plan to create one million jobs and part of that is an extension of the wage subsidy to help those companies that continue to struggle to keep their workers or hire their workers back so those people continue to have incomes and jobs.
Supporting businesses is another important component of this is. To those businesses that employ folks in my riding and across Canada, an extension of the wage subsidy is a big component of that. Many businesses have taken advantage of the wage subsidy and of course we will continue to provide that through to next summer. We are also improving the business credit availability program because providing credit is one of the key mechanisms in which we support businesses trying to get through this difficult period.
I often hear from some of my constituents saying these are great programs, but what about their finances and fiscal sustainability of this plan. One of the things the throne speech speaks to is that very issue. Obviously, these are costly programs, but I believe it is true and many economists believe it is true, that we would be much worse off fiscally and economically if we had not taken the steps we are taking and if we do not take the steps proposed in the throne speech. It is incumbent upon those members across the aisle who continue to talk about fiscal sustainability, who continue to talk about our economy, if they are going to support that, to vote for—
View John McKay Profile
Lib. (ON)
Madam Speaker, I am thankful for this opportunity to reply to the Speech from the Throne.
I will be splitting my time with my good friend from Humber River—Black Creek.
Like other members, I have been out and about with constituents and others. The general pattern of the conversation is to lament the progress of this pandemic and then the conversation tends to move toward how we will pay for this. The programs the government has put in place are generally well received, very welcome and are life rests to people in real desperation. It is quite right to say that the government has made its balance sheet available to Canadian citizens. Nevertheless, there will be a day of reckoning.
I will focus a bit on the necessity of fiscal anchors, but before I do, I want to point to the central truth of the Speech from the Throne, and that is that we need to do all we can to restore the nation's health. This is the pre-eminent priority of the Government of Canada and should be the pre-eminent priority of the Parliament of Canada. Without the restoration of the nation's health, there simply will not be any restoration of the nation's wealth. The saying that the first wealth is health has never been more true than it is today.
In 1993, The New York Times nominated Canada as an honorary member of the third world. Our debt and deficits had risen to unsustainable levels, vulnerable to inflation, runs on the dollar and other economic shocks. In 1997 through to 2006, the Chrétien and Martin governments paid down the national debt by something in the order of $100 billion, taking the debt-to-GDP ratio from north of 65% to somewhere in the order of 25%. Fiscal discipline and a robust economy allowed Canada to exit its honorary status as a third world nation and become the envy of the G7, the G20 and other OECD economies. We have been living on that legacy ever since.
The emergence of COVID-19 has driven our debt-to-GDP ratio much higher and it is now in the range of 49%. Recently the Parliamentary Budget Office issued a fiscal update. It has made three sobering assumptions: first, that there will be no widely available vaccine for the next 12 to 18 months; second, that current response measures will be withdrawn on schedule; and third, that the Bank of Canada will maintain a prime rate of 0.25% through to 2023 and further maintain its program of quantitative easing.
Between December 2019 and June 2020, Canada's real GDP collapsed by 13.4%, and the PBO does not expect it to recover to the December 2019 levels until March 2022. As the GDP goes, so also go the revenues of the government.
I appreciate the PBO's candour and recognize that all projections, whether they are from the Department of Finance or the PBO, are subject to some very significant caveats.
Canada is a trading nation. It is both a strength and a vulnerability. Our most significant trading partner has been in turmoil for the last four years. We might all hope that November 3 might bring a more stable and predictable relationship, but we cannot count on it.
Our number two trading partner, China, seems to be determined to turn Canada into a vassal state, kidnapping Canadian citizens, making arbitrary trade decisions, practising a hectoring diplomacy and introducing mass surveillance, all of which make the Chinese Communist Party an unreliable partner. The pandemic has woefully exposed our dependence on any supply chain that runs through China. In addition, our third-largest trading partner seems to be consumed yet again by Brexit discussions.
In this gloomy context of unreliable trading partners, an unpredictable virus and unsustainable spending, what is a finance minister to do? Ultimately, the finance minister is the Dr. No of cabinet. However, it is helpful when saying no to attach the no to a stated rationale.
I, for one, would like to see a joint statement from the Department of Finance and the Parliamentary Budget Office giving their best projections on the GDP of the nation. In addition, I would like to see some effort to reconcile any differences. It would be in the national interest to have a common understanding of our fiscal and economic picture.
Second, I would like to see a fiscal anchor or series of fiscal anchors. If there is no fiscal anchor, the ship of state will inevitably go in dizzying circles. There are plenty of anchors to choose from. A stable debt-to-GDP ratio has the advantage of being widely accepted and easily understandable. The disadvantage is in the short run: It will deteriorate very quickly, as both the numerator and the denominator are going in opposite directions.
Another fiscal anchor is a balanced budget. At this point it is an unrealistic fiscal anchor, as implicitly acknowledged by my friend, the Leader of the Opposition, who recognized that balanced budgets may be more than 10 years away. By the way, I was pleased to see him in the House and look forward to his being Her Majesty's leader of the official opposition for many years to come.
Another fiscal anchor is inflation. Some say we should let inflation be the only anchor, or otherwise simply let programs expand. Still others propose a cap on spending. The disadvantage of a cap on spending is that it is entirely arbitrary and lacks flexibility.
David Dodge, the former deputy minister and former governor of the Bank of Canada, suggests a fiscal anchor tied to the cost of the national debt. He suggests that the cost of servicing the national debt should not exceed 10% of government revenues on an annual basis, and that, in addition, we should eventually reduce annual deficits to no more than 1% of GDP. Mr. Dodge also wants all government investments, all programs, tied to an increase in productivity. Canada has for quite a number of years now been a laggard in productivity.
My purpose here is to urge the government to pick a fiscal anchor or anchors to recognize that the Government of Canada is not the economy of Canada. At some point Dr. No has to say no, because to say otherwise would be to cut the ship of state from “wise and prudent management”.
Canada is not like the U.S. It can do wild and crazy fiscal things and get away with it because it is the world's currency. The Canadian dollar is a small currency in a very large pool. If either inflation or a run on the dollar occur, all the presumptions of cheap money are out the window. At this point we do have cheap money. Let us hope that it continues, because a number of the assumptions are based upon this.
With that, I hope the government will commit to fiscal anchors and we can have a realistic conversation about the program mix.
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2020-10-06 16:02 [p.641]
Madam Speaker, I want to thank the hon. member for a shockingly sensible speech, a speech I would not have expected to hear from any member of the government caucus.
He made a lot of very good points. He quite rightly gave credit to the Chrétien and Martin government for adopting balanced budgets and reducing our debt. He quite rightly pointed out that in the early 1990s this country literally ran out of money when finance officials went to lending markets and could not find a single person on earth willing to lend a dollar to the Government of Canada for fear it could not pay the money back. At that time, our debt-to-GDP ratio was 66.6%. A half-year ago, it was 30%. In other words, we had about a 36% buffer of space between where we were and where we could expect to go bankrupt.
Today, it is at 50% of GDP. In other words, the government has more than eliminated half of the buffer that existed between where we were and where we go off the cliff. That means the trajectory we are on is not sustainable. The problem with cliffs is that while one approaches them gradually, one falls off them suddenly, and once off the cliff, it is too late.
Does the hon. member agree with Her Majesty's loyal opposition that a firm and clear fiscal anchor is necessary and necessary now?
View John McKay Profile
Lib. (ON)
Madam Speaker, one always has a degree of trepidation when one is being complimented by the member for Carleton. However, his numbers are accurate, and I was trying to make the case that we need to articulate a fiscal anchor or anchors. Without fiscal anchors, we will simply pile up debt.
We have seen this movie before. When the Chrétien government took over in 1993, we were in an unsustainable position. We need to get back to some position whereby we can sustain the necessary programs.
The government rightly put the government's balance sheet in the service of desperate Canadians. However, in the words of the great philosopher Wayne Gretzky, we need to know where the puck's going, not where the puck is.
View Garnett Genuis Profile
CPC (AB)
Madam Speaker, my colleague said at the end of her speech, “this is not necessarily the time for austerity”.
I am trying to understand what the government's working definition of “austerity” would be, because every day, every week, we see new expanded spending announcements push the deficit up higher and higher. At what point would that spending be too much?
If the government were spending a deficit of $500 billion, $600 billion, $700 billion, at what point would the member say to hang on a second because we need to slow down that spending? If we were spending a little less than we are now, say, a $300-billion deficit instead of $343 billion, would that be austerity? Would spending $250 billion in deficit be considered austerity? Where are the actual cut-offs in terms of the member's concept of what would be too much spending, and what would qualify as austerity?
View Judy A. Sgro Profile
Lib. (ON)
Madam Speaker, it is great to see my colleague back in the House.
Let me say that I wish we did not have to spend one cent of this money. I wish we never had this coronavirus pandemic, but we have it. I am so proud of the fact that the Government of Canada took on the task to meet the needs of Canadians. We did not turn our backs on people and say that we spent $100,000 and cannot spend anymore. None of us wants to be spending all this money, but the reality is that if we do not help Canadians now, then when do they need a government? They need a government now when we have a pandemic and that is exactly what we are doing. We are going to do whatever is necessary to help Canadians survive this terrible pandemic.
View Ken Hardie Profile
Lib. (BC)
View Ken Hardie Profile
2020-10-06 17:08 [p.651]
Madam Speaker, our government's throne speech and this debate come at a time when Canadians, and certainly those of us in Fleetwood—Port Kells, are paying more attention than usual to their governments. Of course, this is because these are exceedingly unusual times. These are times when we are experiencing a great reunderstanding of the role of government in the lives of our citizens.
Starting about 50 years ago, people in western Europe and most of the Americas looked for a new balance of influence, one that leaned toward smaller governments. This was after a long period during which those living through the Depression, the world war and recovery had seen national governments calling the shots on how the human, material and financial resources of the nation would be directed.
Now we find ourselves here, at a time when flaws in the free market and the weakness of globalization have shaken the ability of governments to maintain the resiliency needed to deal with the social and economic shocks of the pandemic. These have all combined to have us once again looking to government for leadership, ideas, the willingness to act and hope. That is what our government's Speech from the Throne intended to deliver.
We in Canada have certain advantages that have helped us manage the challenges this year has thrown at us. One of them is that, by and large, Canadians tend to believe in the power of the common good. We are generally prepared to set aside self-interest and assume some duty to act selflessly to help our neighbours. We know that when it is necessary, we draw lines in the sand and stand up for our values, principles and ideologies, because we honestly believe they represent the best direction for the country, but we have also demonstrated the good sense to set that all aside and pull together when efforts toward a common cause are needed.
Our colleagues in the opposition have disagreed with some of the steps this government has taken in response to the social and economic damages inflicted by the pandemic, but when it really counted, the whole lot of us have worked to make our national response to the pandemic better. When so many countries have been torn by partisan political conflict, which stalled action in the public interest, Canadians have been able to count on us to act quickly. They understand the need to make course corrections as we go.
Another advantage we have is the lessons history has taught us in supporting Canadians in times like this. The economic shock we experienced this year looks very much like the sudden and drastic shock of the collapse of the stock markets in 1929, but our response this time is different. In the early 1930s, prime minister R. B. Bennett looked to Conservative ideology and decided that austerity was the right strategy. That served only to deepen the breadth and depth of the misery Canadians experienced in the so-called Great Depression. My parents lived through it and, believe me, there was nothing great about it.
In 2008, unchecked excesses in our financial markets had the world teetering on economic collapse. This time, though, the Canadian government and prime minister Stephen Harper reacted in an un-Conservative way, going into deficit to stimulate the economy and take up some of the economic slack.
There are, however, some things to learn from that experience, too. While Canadians escaped the kind of suffering experienced by our neighbours to the south, the malaise was not cured. Indeed, by the summer of 2015, Canada was still technically in a recession and unemployment was stubbornly high. Mr. Harper had reassumed his conservatism and believed that balancing the budget was what the country needed. His stimulus was too little, and it ended too soon.
This time, the government has had the benefit of those experiences, and what we have learned, we have applied, but more than that, the strategies we brought to government in 2015 have served as a major advantage for Canada. Those deficits we recorded from 2015 to 2019 were not a response to an economic emergency. They were funding investments and, like all good investments, they delivered dividends. The total deficit in the first term was about $60 billion. Canada's GDP grew by just over $180 billion. If we like, we could claim a 300% return on that investment.
Unlike the Conservative stimulus package in 2008-09, which funded projects across the country, the deficits in our first term were divided between infrastructure expansion designed to increase Canada's productivity and the economic well-being of Canadian families.
Our income-tested Canada child benefit delivers help to the families that need it the most, the families that shop at the local stores and boost the local economy. We should not overlook what the Canada child benefit has meant to families in these tough times.
Our economic performance from 2015 to 2019 included the creation of over a million new jobs, real wage growth for the first time in a decade or more, hundreds of thousands of people lifted out of poverty and, by the way, a lift in government revenues, all without raising taxes and the program cuts that define the Harper years.
Something else we learned coming into the pandemic is that growing the economy and working to share the wealth more equitably means families and governments alike can do more. The things we learned, the things we proved prior to and after the pandemic shutdown in March, are now helping Canadians through another round of tough times, so let us recap them.
First, from the response to the stock market crash in 1929, we know this is not the time for austerity. Members may recall this being mentioned in the throne speech. From the response to the financial collapse in 2008, we learned we have to commit to doing what it takes to help Canadians and to take the country through recovery and beyond.
We have proven that support focused on helping middle-class families and the families struggling to get to the middle class does more to deliver well-being, confidence and hope than tax cuts for big business and the wealthy. A strong middle class is good for everybody.
All of us in this place have proven that when the welfare of the country is on the line, we are all team Canada, where a good idea does not care who has it. The quick delivery of benefits is critical. We cannot let perfection be the enemy of good. We have learned that while globalization has done much to lift the prospects of people across the world, we cannot count on it when nations act in their own natural self-interest and fail other nations that depend on them for vitally needed products, such as masks, gowns and gloves. Sovereignty means self-reliance.
We knew that ignoring the problem of conditions in long-term care facilities would come back to haunt us. Some lessons are hard to learn and come too late. As a government, we know that our ability to fund the support Canadians need at historically low interest rates is far better than the ability of families that would have no alternative to credit card debt.
Even adding on the borrowing for pandemic supports, low interest rates today mean Canada's annual debt servicing costs are billions of dollars lower than they were last fall. We can and have locked in these historically low rates for decades, and this makes sense for the nation when families would pay 19% interest on credit card balances.
We know that, with some notable exceptions, Canadians will do what is necessary for the sake of their neighbours and the good of the country. Social distancing, wearing masks and not holding big parties are not onerous gestures.
There is one other thing we know. We have an opportunity, one that this government believes we must take now, to reformat our post-pandemic economy. We are wasting too many valuable human resources in Canada with so many of us working precariously in the so-called gig economy. We can do better than re-establishing those conditions. We cannot pass on the opportunity to build and bolster in a number of sections.
That includes the low-carbon economy. The major oil companies get it. They are leading the transition in many cases. Our government's support for Canada's energy sector must build on that for the sake of good jobs in Alberta, Saskatchewan, Newfoundland and northeast B.C., and for the sake of our climate and the future of life on this planet. This too was incorporated into the Speech from the Throne.
Help will be on the way for our tourism and hospitality sectors. Our commitment to a national pharmacare program still stands. Family reunification is a priority, more important than ever in such an uncertain world.
Like all throne speeches, the one we heard last week provided the country with a strong commitment to deal with the challenges of the day and a high-level vision for where we think the nation needs to go. Day by day, the details are emerging on programs that signal our commitment to do what it takes to protect the health of Canadians, our communities and our economy.
The next step is to build on the foundation we have laid over the past five years to realize the full value of our natural national advantages. If members listened carefully they would have heard the essential elements of leadership, creativity, collaboration, flexibility, resiliency and thoughtfulness. These are not the exclusive property of the party in power. This is what Canadians have a right to expect from all of us in this place.
Yes, we will have different ideas about what to do and how to do them. Canadians will benefit from a healthy exchange of ideas, but the signals we send to our citizens must unfailingly give them not just the hope but also the confidence that their Parliament will work as a community of purpose for their common good.
View Wayne Easter Profile
Lib. (PE)
View Wayne Easter Profile
2020-09-30 17:41 [p.366]
Madam Speaker, I will be sharing my time with the member for Chicoutimi—Le Fjord.
I am most pleased to speak on the throne speech. I do believe this throne speech, and the legislation and policy that will flow out of it, will put Canada on the right track going forward.
We are in a pandemic that seems to be gaining ground again. This is the time for leadership. The Prime Minister has shown leadership day after day. Contrary to what the Leader of the Opposition said, the Prime Minister and his government were in communication with all members of the House, and having meetings at night in conference calls with the bureaucracy. Everybody put in ideas, but the government showed that it was willing, under the leadership of the Prime Minister, to make changes that would improve policies for individuals, businesses, organizations, provinces and territories, day in and day out since the pandemic began.
The Prime Minister developed the programs. He worked with the provinces, and the provinces have congratulated the Prime Minister, time and again, on his willingness to work with them during this pandemic.
He has certainly shown leadership in terms of working with all Canadians. I heard the Leader of the Opposition say that he only wanted to work with some. No. The Prime Minister has worked with all Canadians, with all organizations and with all provinces. The Prime Minister is showing he is the leader that is needed in this time for this country to move forward. This is the direct opposite of what the Leader of the Opposition had to say.
This throne speech sets out a blueprint for where we need to go in the future. There really is no shortage of ideas. The purpose of a throne speech is to lay out the blueprint in the House of Commons and to have other ideas and criticisms come forward, certainly. I believe that, in the way that Parliament is structured, other ideas can come forward to improve on the blueprint that the government has laid out, although it is a very good blueprint.
The finance committee, in fact, heard hundreds of suggestions from Canadian organizations and individuals between April 3 and the end of June. I want to qualify that. This was a criticism that I do not believe was valid. I want to qualify that a key point made by witnesses before the finance committee is that, while future spending is essential, it must be done in a fiscally responsible way, and the Minister of Finance should certainly, at the earliest opportunity, lay out an economic growth plan. That is what witnesses were saying. I agree with that approach, and I think that would show Canadians how we are going to get there in terms of meeting the needs of the pandemic but also meeting the needs of the economy going forward.
Witnesses before the finance committee, and in my own riding and across Canada, spoke very favourably about several programs that will be continued as a result of the throne speech and the legislation flowing out of it.
The Canada emergency wage subsidy offered a 75% subsidy for businesses, and it will be extended right through to next summer. Although it is a wonderful program, I would note that it needs some tweaks. Many new businesses, start-ups, or expanding businesses that are buying out other businesses and therefore have different business account numbers with the CRA, do not qualify for the program. We have to fix that problem. Those businesses are important to our economy. They are the backbone of our economy, and we need them.
The second major program announced in the throne speech is the Canada emergency response benefit. It was very important to ensure that families had the funds to put food on the table, and had some security for their families, after jobs were lost as a result of COVID-19.
That program is rightly being rolled into an improved EI program, and is absolutely necessary, going forward. That is a commitment made by the Government of Canada in the throne speech. In fact, legislation has already been put in this House through Bill C-2 and Bill C-4 that ensures that the benefits of CERB will remain as we work to restart our economy.
For those in the tourism industry who were only able to find limited work this summer, the reduced hours, as announced, that will be required to gain EI is extremely important. The throne speech mentions it and legislation passed through here once on the Canada recovery benefit to support workers who are self-employed or not eligible for EI, the Canada recovery sickness benefit for workers who must self-isolate due to COVID-19, and the Canada recovery caregiving benefit for Canadians who must take care of a child and are unable to work. That is extremely important for people, moving forward, to help them out.
Another area we heard a lot of positive feedback and comments on is CEBA, the Canada emergency business account. The throne speech states:
This fall, in addition to extending the wage subsidy, the Government will take further steps to bridge vulnerable businesses to the other side of the pandemic by:
Expanding the Canada Emergency Business Account to help businesses with fixed costs;
Improving the Business Credit Availability Program;
And introducing further support for industries that have been the hardest hit, including travel and tourism, hospitality, and cultural industries like the performing arts.
It is important we do that, and we welcome that program, but I want to also put a slight caveat on CEBA. A number of us from all parties have been saying that the Canada emergency business account must allow personal accounts to qualify, not just business accounts. When I was farming I did not have a business account with a bank; I had a personal account and I was running about a $2-million operation. I can give an example of an individual in my riding. This construction guy with a $900,000 operation puts out three T4s and can show income tax going back years, but he does not qualify for CEBA. That is wrong. It should not just be through the bank business account. We had to fix that so that the people with a personal bank account qualify as well.
As an aside, there was the regional relief and recovery fund, established through the regional development agencies, that is basically the same as CEBA but is in the rural areas for businesses that may not qualify through the banks system. That program has run out of money. I am asking the Minister of Finance and the government as a whole to put some more funds into that RRRF so that people who actually deal with those agencies can qualify. That needs to happen.
I understand time is running down for my remarks, but I want to say I am looking forward to the work of the Government of Canada in accelerating the universal broadband funding. This is critical. We have seen through the pandemic that it needs to be done.
I am encouraged by what the throne speech said about the Atlantic loop in terms of energy between Atlantic Canada and Quebec, and how that may flow throughout the system.
We really used Canadian resources to help Canadians and build Canadian industries. I am really pleased on the environmental side that the throne speech outlines a number of opportunities for retrofitting homes and businesses, and more.
We have learned through this pandemic that we have to supply ourselves locally, and we need to move forward on that as well.
View Gérard Deltell Profile
CPC (QC)
View Gérard Deltell Profile
2020-09-30 18:23 [p.372]
Madam Speaker, it has been a real pleasure for me to see and listen carefully to my colleague from Winnipeg, because I have a lot of respect for him. I am very pleased to see him in good shape, and I hope to see him here in Ottawa soon. It is also fun to hear a former cabinet minister speaking positively about natural resources in Canada. I hope the Prime Minister will be inspired by his colleague from Winnipeg.
My colleague spoke about Churchill, and speaking of Churchill, we saw a tweet this week from the hon. Andrew Leslie, a former general in the Canadian army and former whip for the Liberal party. He wrote, “I wonder what the great Prime Ministers (PMs) of the past might think. During the entirety of the Second World War, neither the British (Churchill) nor the Canadian (M-King) PMs ever sought to limit debate, especially on matters involving financial appropriations”.
Does the hon. member for Winnipeg South Centre agree with his former colleague, who asked why we shut down Parliament to have a debate about spending money?
View Jim Carr Profile
Lib. (MB)
View Jim Carr Profile
2020-09-30 18:23 [p.372]
Madam Speaker, I appreciate the kind words from my friend, and I do mean my friend. I congratulate him on his new responsibilities.
There will be ample time to debate the Speech from the Throne and ample time to debate legislation. As I said in my remarks, for many people there is too much time, and for other people there is not enough time. There needs to be a balance between what time is available and the competing pressures on that time. I know that my hon. friend is so efficient with language that he will use whatever time there is to his best advantage.
View Greg McLean Profile
CPC (AB)
View Greg McLean Profile
2020-09-30 18:44 [p.375]
Madam Speaker, first of all, I will be splitting my time on this speech with the member for Kildonan—St. Paul.
If I had to choose a heading for this year's Speech from the Throne, I would choose the Prime Minister's byline, “not the time for austerity”.
I like it for so many reasons, particularly in relation to what is happening in our world. I like to get to the root of things, so I went to the source and found the applicable definition of “austerity” as it relates to the economy. It is this: enforced or extreme economy especially on a national scale.
Given what our nation is facing, I could not agree more with that course of action. Canadians need to be sure that the government will address the real problem that is facing this country immediately, and that is a worldwide pandemic that is costing millions of lives around the world.
For all of us who serve Canadians at this unique time in history, it is our duty to ensure that we do our utmost to provide the environment that minimizes the toll the virus takes on the lives of Canadians.
First, the instruments of government are there for us to mitigate the adverse health outcomes, and we must use all of these resources and fund them to the level required to address the Canadian health system's response to this pandemic.
Second, we need to mitigate any long-term damage that would occur as Canadians feel the effects of the shutdown of parts of our economy necessitated by a response to the virus. Parts of Canada's economy have responded well after the initial shutdown. Sadly, parts of our economy will take years to recover to the same level they were at prior to March of this year. It is our job to ensure that we remove the structural impediments to the survival of these industries, so that the cost of insolvency and restart are minimized, because that affects us all.
In addition, the people in those industries, those who have trained to excel in their chosen field, need to have clarity as to how we emerge from this pandemic even though the when is still not clear. Forgoing a life of effort and investment, both personal and financial, is not the chosen outcome. Addressing these two objectives austerely would be the wrong approach.
Then I look at the government's response to the pandemic and the economic turmoil our country has experienced thus far this year: government programs that have expended twice as much as was lost in income, hastily designed response programs that throw Canadian taxpayers' money at the wall to see what sticks, several failed responses that have missed the target for helping those we need to help, and covering up incompetence on program execution and design with the taxpayers' wallet, resulting in the highest unemployment rate in the G7 group of advanced countries and the most spending per capita in this group of Canada's peers.
Call it what we want, eventually results matter, and the report card on the government's performance is dismal. We all recognize that mistakes have been made in our response to the pandemic and its economic outcomes, and we accept that mistakes happen when governments need to move very quickly to address an urgent situation. However, it is incumbent upon us to take what we have learned thus far and not continue with the same mistakes going forward.
That is not austerity; that is common sense. I do not know why the government confuses the two.
Let me move to how the Speech from the Throne fails. This was deemed so necessary that a make-believe Parliament, barely sitting, had to prorogue in the middle of the summer.
Failure one is its misleading Canadians on fiscal sustainability. Here are the incoherent statements on financial stability contained in the Speech from the Throne. The first quote is “With interest rates so low, central banks can only do so much to help.” The second is “This Government will preserve Canada’s fiscal advantage and continue to be guided by values of sustainability and prudence.” The third is “Government can do so while also locking in the low cost of borrowing for decades to come.”
Considering that this country's central bank, the Bank of Canada, has increased its balance sheet almost fivefold in the past six months to over $500 billion, keeping interest rates low only works because the only buyer of our country's bonds is the Crown corporation we own. Our debt is being mispriced and Canadians are bearing not just that balance sheet but also that excessive risk.
What happens when this independent central bank says that it will no longer buy the debt being issued by the Government of Canada? By the way, it is something it was not doing at scale until this year. Is the Government of Canada now subject to the whims of the Governor of the Bank of Canada? An independent central bank has suddenly become a very powerful central bank.
Then there is this statement in the Speech from the Throne: “maintaining a commitment to fiscal sustainability and economic growth as the foundation of a strong and vibrant society.” We have been spending beyond our means for every year of the government's mandate, and now we have been unprepared for an unusual event. The government's latest response is to abandon anything resembling a fiscal anchor and replace the finance minister. At least someone got fired for all this financial nonsense. As much as I agree that someone had to be accountable for the fiscal mess the government has created for this country, I sense strongly that the person pulling the trigger in that action is the real problem.
Failure number two is that “build back better” is an overreach at this critical time in our nation's history. First of all, recycling American gimmickry is political sloganeering that should require royalty payment to the producers. This statement is beyond trite. Canada has always built upon our strengths, and our Canadian resource industries lead the world in environmental standards. This overreach, costed by many to be in the hundreds of billions of dollars, provides no accountability for a tangible environmental outcome, and its scale is only being considered because of the pandemic, that is, why let a good crisis go to waste? It talks of millions of jobs and echoes the same nonsense put forth in the green energy strategy of the late Ontario Liberal government. It is no surprise that the plan has the same architects. Who are the main beneficiaries of an industry that will pay half the Canadian corporate tax rate? Once again, accountability, please.
Where in Ontario are the hundreds of thousands of jobs, these new clean-energy jobs that were promised as part of the increase in power costs in Ontario that has done its fair part to move jobs out of Canada? This part of the throne speech needs to be called out for what it is: a job selection and subsidization mechanism. The government is saying that it likes transferring taxpayer funds from productive parts of Canada's economy to parts of the economy that have more influence with the government. It is insider influence at its worst, and the government has shown it is a master practitioner. The government's friends win; Canadian taxpayers lose. What is left out is the Canadian resource industry.
Let me again quote from the Speech from the Throne. “Canada cannot reach net zero without the know-how of the energy sector...including people in places like British Columbia, Alberta, Saskatchewan, and Newfoundland and Labrador.” Are these far-flung places? The writer of this part of the Speech from the Throne should be sent to the hinterlands to find that we are all Canadians with the same desires to build a great country while contributing to our businesses, our families and our communities.
I will quote the speech a final time. “The Government will: Support manufacturing, natural resource, and energy sectors as they work to transform to meet a net zero future, creating good-paying and long-lasting jobs”.
If there is one consistently oxymoronic thought pattern I hear in Ottawa from members of the government, it is this notion that we have to retrain our country's best scientists, engineers and technicians, all while saying we need to follow the science. Our industries are adjusting to a low-carbon world. The government is the only inconsistent factor in getting to a viable outcome, and I caution the government on its actions in this regard. Tempers are rising. People do not believe the Liberals are acting with integrity or common sense. The government has no representation in two of Canada's most productive provinces.
Be careful what you are doing to this country. I can tell you very clearly there is more strain—
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2020-09-24 16:50 [p.87]
Mr. Speaker, I will be sharing my time with the member for Haliburton—Kawartha Lakes—Brock.
It is great to see you back in person, Mr. Speaker. It has been far too long and so much has changed. For one, you are the proud owner of another $10,000 of debt. Yes, that is the per capita share of every man, woman and child in Canada. A $380-billion deficit this year for 38 million Canadians equals $10,000 per Canadian or $40,000 for a family of four. I do not know about you, Mr. Speaker, but I have not met a lot of people who will tell me that their family has received $40,000 in COVID relief benefits.
In fact, even if people received the CERB for a full 16 weeks, it works out to $8,000, and the majority of Canadians did not even receive that CERB. Although their mortgages are $40,000 bigger, they do not have 40 thousand dollars' worth of benefits to show for it. That is so often the case with trickle-down government. The hard-working taxpayer has to climb the bureaucratic mountain with a big bucket of water on his back, that water is then poured into the federal bureaucracy. It is sloshed around down to provincial and municipal bureaucracies and then given on to other delivery bodies. Just as he gets back to the bottom of that bureaucratic mountain, there are a few drops that trickle down back into that bucket he so laboriously took to the top of the hill in the first place.
The government will tell that taxpayer and all Canadians that we are in a crisis, thus justifying a deficit of this magnitude. It is true, we do have a crisis. We will put aside for a moment the fact that the government made the crisis worse by allowing tens of thousands of people from the most infected regions of the world to come into the country after military intelligence warned it of the danger. We will ignore the fact that many of the programs the government designed since that time punished businesses for reopening and punished workers for working. We will ignore all of those failings and grant that indeed this is a crisis, but it is not our first crisis.
Indeed we have fought world wars and had the Great Depression and the great recession. How does this deficit compare to those deficits? It would not be fair just to point out that our $380-billion deficit is seven times the previous all-time record, because that does not adjust for GDP and inflation. To be fair, let us compare the deficit as a share of GDP in inflation-adjusted terms.
This year, the federal deficit is 17% of GDP. To compare, in the worst year of World War I, it was 8% of GDP; in the worst year of the Great Depression, it was 6% of GDP; and in the worst year of the great global recession, it was 4% of GDP. To put it in perspective, our deficit today is twice what it was in World War I, three times what it was in the Great Depression and four times what it was in the great global recession, all adjusted for the economy and inflation.
Only once in our history has the deficit been bigger as a share of our economy, and that was in 1943 when the government was selling bonds to its people so that it could fight Hitler, Mussolini and Imperial Japan. The government put those dollars to work to win the war, and yes there was a deficit of 23% of GDP that year, but do members know what was different? When our soldiers came back from battle, one might have expected that, exhausted and heartbroken from loss, they would want to take a prolonged vacation and put it on the national credit card and let future generations pay the bill, but they did exactly the opposite.
Do people know how long it took our grandparents to balance the budget after they came back from the war? It took them one year, and within two years they were running the largest budget surplus in Canadian history, 5% of GDP, which is the equivalent of $120 billion in today's relative terms. They fought for our freedom and then they fought for our finances.
Imagine if we had a government today with even a modicum of the integrity, respect and honour that our grandparents had those many years ago. Would we not be in much better shape?
However, here we are today with a Prime Minister who not only effortlessly and carelessly spends our money, but tells us that money is not even a real thing anymore. Yesterday, in his bizarre address to the nation, he told us that spending more actually costs less. I am not joking. Members can look it up. That is what he actually said: Spending more money costs less. Clearly, things now mean the opposite of what they say. This is not 1947. This is 1984, and we have a government engaged in doublespeak about the meaning of money.
The Liberals tell us that we can afford all of this debt because interest rates are low, and they are right: Interest rates are incredibly low, stoked by the fact that central banks are producing an unprecedented amount of fake money through keystrokes at their bureaus. However, those rates are not going to be low forever. Unless we believe that the debt will be paid off before the rates rise, we have to believe that we will have trouble down the road. The government is not planning to pay back the debt, ever. In fact, its own projections suggest that the debt will grow every year forever. Are they really expecting us to believe that never in the future will we return to normal interest rates?
Let me put it into perspective. This year, the effective interest rate across all of our debt will be somewhere in the neighbourhood of 2%. That is not the bond yield today but the average across the entire stock of federal debt. It is about 2%. The average over the last two decades is 5%. Do members know what the difference is between 5% and 2%?
An hon. member: It's 3%.
Hon. Pierre Poilievre: Someone said 3%, and they would almost be right. Five per cent is more than double 2%. It is an increase of over 100%. In fact, it is a massive increase and a massive change in our budget picture. When we more than double the interest rate applying to over $1 trillion of debt, we massively increase the amount of money diverted from social programs into the hands of wealthy and greedy bondholders, those people who lend us the money. They are not a charity; they are in it for profit.
Let us calculate what every point of increase would cost. It is very simple. At $1 trillion of debt, it is about $10 billion in new annual costs for the taxpayer every time interest rates go up by just one percentage point. Therefore, if they went up three percentage points to the normal average over the course of the medium term, which is four or five years, we would be paying an extra $30 billion a year to service our debt. That is almost what we collect in GST revenues. Imagine the government, in its back pocket, keeping open the prospect of doubling the GST to pay for the cost associated with interest rates returning merely to their normal average levels. That is the risk the Liberals are taking with our future.
What could we do differently? The answer is jobs, jobs, jobs. The only way to tackle this massive debt beast that our current government is creating is by returning our mighty workers to their jobs. Right now, we have a million missing jobs relative to the number of people who were working in February before COVID began. We now have the highest unemployment rate in the G7. Our unemployment rate, at over 10%, is three percentage points higher than the OECD average.
We need a plan to unleash the free market system to hire people back. Get out of the way and let our mines, plants and factories come roaring back to life. Why do we not let our steelworkers and trade workers build pipelines that will create jobs in the energy sector in the west and in the refining sector in the east?
Get out of the way of small businesses by cutting red tape and lowering taxes on those entrepreneurs, so that they can bring our main streets buzzing back to life. It is only through a bigger and broader economy that we can pay the prodigious costs, associated with this government, to continue to put food on the table and provide for our vital social safety net.
That is the plan, and that is what we must do.
View Anthony Rota Profile
Lib. (ON)
Honourable Senators,
Members of the House of Commons,
Ladies and Gentlemen,
Every day on our shared planet, millions face hardships that test the human spirit. Extreme weather, wildfires, poverty, conflicts, discrimination and inequalities. Rarely though, has all of humanity faced a single common insidious enemy. An invisible enemy that respects no borders, thrives anywhere, hits anyone.
To overcome a pandemic requires the work and resolve of every order of government, every community, and every one of us.
We don’t decide when hardship comes, but here in Canada, we have decided how we wanted to address it. We have adapted in remarkable ways.
We Canadians did our part. We changed our habits, postponed our plans, switched to teleworking or had to completely reinvent our work, all this, while caring for one another.
We owe an immense debt to those who served and still serve on the frontlines, to health care personnel and essential workers, women and men in uniform, volunteers and leaders, everywhere in the country.
There has been a lot of suffering and we all mourn those who have passed.
We trust science to lead the fight until a safe and effective vaccine becomes available. But until then, we must keep our guard up, using the tools that are available to us now — such as testing, treatments and physical distancing measures.
Like a reed in high winds, we might sway but we will not break. Because our roots are firmly in place, our goals clear, and because we have hope — the hope that lifts the soul on dark days and keeps us focused on the future.
Canadians have lived through uncertain times before and have always prevailed because determination, concern for others, courage, and common sense define our nation.
We must bring all those qualities to bear once again and continue to work for the common good, and for a better, safer and more just society.
This is who we are and what will see us through to brighter days.
Opening
For over 150 years, Parliamentarians have worked together to chart Canada’s path forward.
Your predecessors met when Confederation was only a few months old, setting the course for a young country. They stood united through Canada’s toughest days, leading the nation through wars and depression. And as they did, each Parliamentarian was called to meet their times.
Today, Canadians expect you to do the same. They expect you to work together on their behalf and meet this crucial moment.
Less than a year ago, we gathered here for a Throne Speech to open the 43rd Parliament. Since then, our realities have changed. And so must our approach.
This pandemic is the most serious public health crisis Canada has ever faced.
Over 9,000 Canadians have died in six months. For our neighbours in the United States, this figure is over 200,000. Globally, it’s nearly a million.
But these aren’t just numbers. These are friends and family. Neighbours and colleagues.
The pandemic is the story of parents who have died alone, without loved ones to hold their hand.
It is the story of kids who have gone months without seeing friends.
Of workers who have lost their jobs.
The last six months have laid bare fundamental gaps in our society, and in societies around the world. This pandemic has been hard for everyone. But for those who were already struggling, the burden has been even heavier.
For parents — and especially moms — who are facing impossible choices between kids and career.
For racialized Canadians and Indigenous Peoples who are confronted by systemic barriers.
For young people who are worried about what their future will hold.
For seniors who are isolated, frightened, and most at risk.
And for workers who, while earning the lowest wages in the most precarious sectors, have been on the frontlines of the pandemic.
We must address these challenges of today. But we also cannot forget about the tests of the future.
The world came into this pandemic facing the risks and consequences of climate change. A lesson that COVID-19 has taught us, is that we need to match challenges with decisiveness and determination.
On all of these fronts — health and the economy, equality and the environment — we must take bold action.
The Government will meet these challenges.
The Government’s approach will have four foundations.
The first foundation of this plan is to fight the pandemic and save lives.
The second foundation of the Government’s plan is supporting people and businesses through this crisis as long as it lasts, whatever it takes. Effectively dealing with the health crisis is the best thing we can do for the economy. Government action has already helped Canadians stay safe, and buffered the worst economic impacts.
The third foundation is to build back better to create a stronger, more resilient Canada. To do this, we must keep strengthening the middle class and helping people working hard to join it, and continue creating jobs and building long-term competitiveness with clean growth. We must also keep building safer communities for everyone.
The fourth and final foundation of this plan is to stand up for who we are as Canadians. We cannot forget what has made us a country that is welcoming. A country that celebrates two official languages. That achieves progress on gender equality, walks the road of reconciliation, and fights discrimination of every kind.
This is our generation’s crossroads.
Do we move Canada forward, or let people be left behind? Do we come out of this stronger, or paper over the cracks that the crisis has exposed?
This is the time to remember who we are as Canadians.
This is the opportunity to contain the global crisis and build back better, together.
Protecting Canadians from COVID-19
The first foundation of the Government’s approach is protecting Canadians from COVID-19.
This is priority number one.
It is the job of the federal government to look out for all Canadians and especially our most vulnerable. We need to work together. Beating this virus is a Team Canada effort.
Over the last six months, Canadians have stood united and strong. Their actions embody what has always been the purpose of the federal government: bringing Canadians together to achieve common goals.
Personal protective equipment has been shipped across the country. Members of the Canadian Forces were there in long-term care homes.
Close to 9 million Canadians were helped with the Canada Emergency Response Benefit and over 3.5 million jobs were supported by the wage subsidy.
The Government will continue to have people’s backs just like Canadians have each other’s backs.
Through the first wave, contact tracing and testing ramped up across the country. The surge this fall further reinforces what we already know — that we must do even more.
The federal government will be there to help the provinces increase their testing capacity. Canadians should not be waiting in line for hours to get a test.
At the same time, the Government is pursuing every technology and every option for faster tests for Canadians from coast to coast to coast. As soon as tests are approved for safe use in Canada, the Government will do everything it can to see them deployed. The Government will also create a federal Testing Assistance Response Team to quickly meet surge testing needs, including in remote and isolated communities.
Local public health authorities are the backbone of our nation’s efforts to stop outbreaks before they start. As members of the communities they protect, they know the devastating economic impact a lockdown order can have.
To prevent small clusters from becoming major outbreaks, communities may need to enact short-term closure orders. To make that decision easier for the public health authorities, and to help ease the impact that science- and evidence-based decisions can have on local businesses in the short term, the Government will work to target additional financial support directly to businesses which have to temporarily shut down as a result of a local public health decision.
This will ensure that decisions are made with the health of Canadians as the first priority.
The Government will also continue to work on what communities need more broadly.
The Government has already invested over $19 billion for a Safe Restart Agreement with provinces and territories, to support everything from the capacity of health care systems to securing PPE.
To address the challenges faced by provinces and territories as they reopen classrooms, the federal government invested $2 billion in the Safe Return to Class Fund, along with new funding for First Nations communities. This is money to keep kids — and staff — safe in the classroom, whether that’s by helping schools buy cleaning supplies or upgrade ventilation.
These commitments build on federal investments to support people who are most at risk and those who care for them, including with the federal wage top-up for personal support workers. People on the frontlines who have been looking after seniors do vital work and the Government will continue to have their backs.
At the same time, the Government will continue to support Canadians as they take action to keep each other safe.
Already, people are doing their part by wearing masks. That’s important, and we can build on that commitment. Working with private sector partners, the federal government created the COVID Alert app. Canadians living in Ontario, Newfoundland and Labrador, New Brunswick, and Saskatchewan now have an extra tool to keep themselves and others safe. The Government hopes all the others will sign on so that people in all parts of the country can both do their part and be better protected.
The Government will also continue to work on getting Canadians the PPE they need.
This spring, the Government issued a call, and thousands of Canadian businesses and manufacturers responded. From shop floors to companies big and small, Canada’s dynamic businesses met the challenge as their workers stepped up.
And in less than six months, Canadians are now manufacturing almost all types of PPE. The Government will continue building that domestic capacity, while securing supply chains to keep Canadians safe and create jobs.
Canadians are pulling together, whether that’s with PPE manufacturing, through the COVID Alert app, or by wearing a mask. In the same way, Canadian researchers and scientists are pitching in to the Team Canada effort with their knowledge and expertise.
Vaccine efforts
In the long run, the best way to end this pandemic is with a safe and effective vaccine.
Canada’s vaccine strategy is all about ensuring that Canadians will be able to get a vaccine once it is ready.
There are many types of potential candidates. Canada is exploring the full range of options. The Government has already secured access to vaccine candidates and therapeutics, while investing in manufacturing here at home. And to get the vaccines out to Canadians once they’re ready, the Government has made further investments in our capacity for vaccine distribution.
From the Vaccine Task Force that provides the best advice on vaccine purchasing and roll-out, to the Immunity Task Force looking at how COVID-19 is affecting vulnerable populations, Canada’s top scientific minds are guiding the Government every step of the way.
Helping Canadians through the pandemic
The medical and scientific fight against this virus is crucial. And so are the livelihoods of every single Canadian, worker, and family.
So the second foundation of the Government’s approach is supporting Canadians through this crisis.
The economic impact of COVID-19 on Canadians has already been worse than the 2008 financial crisis. These consequences will not be short-lived.
This is not the time for austerity. Canada entered this crisis in the best fiscal position of its peers. And the Government is using that fiscal firepower, on things like the Canada Emergency Response Benefit and the Canada Emergency Wage Subsidy, so that Canadians, businesses, and our entire economy have the support needed to weather the storm.
Canadians should not have to choose between health and their job, just like Canadians should not have to take on debt that their government can better shoulder.
Creating jobs
People losing their jobs is perhaps the clearest consequence of the global economic shock that Canadians — like those in other countries — have faced.
The CERB helped people stay healthy at home while being able to keep food on the table.
The CEWS helped people keep their jobs, or be rehired if they had been laid off.
But there is still more to be done.
Unemployment is in the double digits, and underemployment is high.
Women, racialized Canadians, and young people have borne the brunt of job losses.
Canadians need good jobs they can rely on.
To help make that happen, the Government will launch a campaign to create over one million jobs, restoring employment to previous levels. This will be done by using a range of tools, including direct investments in the social sector and infrastructure, immediate training to quickly skill up workers, and incentives for employers to hire and retain workers.
One way the Government will create these jobs is by extending the Canada Emergency Wage Subsidy right through to next summer. The Government will work with businesses and labour to ensure the program meets the needs of the health and economic situation as it evolves.
Another example of how the Government will create jobs is by significantly scaling up the Youth Employment and Skills Strategy, to provide more paid work experiences next year for young Canadians.
Now, more than ever, Canadians must work together — including by eliminating remaining barriers between provinces to full, free internal trade — to get the economy back up and running and Canadians back to work.
Supporting workers and their families
With the job losses that Canadians have faced, it became clear early on that many people would need help until they could find work once again. But existing income support systems were not designed to handle this unprecedented situation. That’s why the Government moved quickly to create the Canada Emergency Response Benefit as a temporary program to help millions of Canadians get through a very difficult time.
With the economic restart now well underway, CERB recipients should instead be supported by the Employment Insurance system. For people who would not traditionally qualify for EI, the Government will create the transitional Canada Recovery Benefit.
Over the coming months, the EI system will become the sole delivery mechanism for employment benefits, including for Canadians who did not qualify for EI before the pandemic. This pandemic has shown that Canada needs an EI system for the 21st century, including for the self-employed and those in the gig economy.
Women in the Economy
Women — and in particular low-income women — have been hit hardest by COVID-19. This crisis has been described as a She-cession.
Many women have bravely served on the frontlines of this crisis, in our communities or by shouldering the burden of unpaid care work at home.
We must not let the legacy of the pandemic be one of rolling back the clock on women’s participation in the workforce, nor one of backtracking on the social and political gains women and allies have fought so hard to secure.
The Government will create an Action Plan for Women in the Economy to help more women get back into the workforce and to ensure a feminist, intersectional response to this pandemic and recovery. This Plan will be guided by a task force of experts whose diverse voices will power a whole of government approach.
It has been nearly 50 years since the Royal Commission on the Status of Women outlined the necessity of child care services for women’s social and economic equality. We have long understood that Canada cannot succeed if half of the population is held back. Canadians need more accessible, affordable, inclusive, and high quality childcare.
Recognizing the urgency of this challenge, the Government will make a significant, long-term, sustained investment to create a Canada-wide early learning and childcare system.
The Government will build on previous investments, learn from the model that already exists in Quebec, and work with all provinces and territories to ensure that high-quality care is accessible to all.
There is broad consensus from all parts of society, including business and labour leaders, that the time is now.
The Government also remains committed to subsidizing before- and after-school program costs. With the way that this pandemic has affected parents and families, flexible care options for primary school children are more important than ever.
The Government will also accelerate the Women’s Entrepreneurship Strategy, which has already helped women across Canada grow their businesses.
Supporting businesses
As the Government invests in people, it will continue to support job-creating businesses.
Small businesses are the lifeblood of communities and the backbone of the economy. The Government introduced a range of supports for Canadian businesses, from help with payroll through the Canada Emergency Wage Subsidy to assistance with expenses through interest-free loans.
COVID-19 has caused businesses across the country, both large and small, to rethink their approaches. Entrepreneurs and owners are looking at more digital options, more creative solutions, and more climate-friendly investments.
The Government will help businesses adapt for the future and thrive.
This fall, in addition to extending the wage subsidy, the Government will take further steps to bridge vulnerable businesses to the other side of the pandemic by:
Expanding the Canada Emergency Business Account to help businesses with fixed costs;
Improving the Business Credit Availability Program;
And introducing further support for industries that have been the hardest hit, including travel and tourism, hospitality, and cultural industries like the performing arts.
Fiscal sustainability
This COVID-19 emergency has had huge costs. But Canada would have had a deeper recession and a bigger long-term deficit if the Government had done less.
With interest rates so low, central banks can only do so much to help. There is a global consensus that governments must do more. Government can do so while also locking in the low cost of borrowing for decades to come. This Government will preserve Canada’s fiscal advantage and continue to be guided by values of sustainability and prudence.
There are two distinct needs.
The first is to help Canadians in the short term, to do whatever it takes, using whatever fiscal firepower is needed to support people and businesses during the pandemic. The best way to keep the economy strong is to keep Canadians healthy.
The second need is to build back better, with a sustainable approach for future generations. As the Government builds a plan for stimulus and recovery, this must be done responsibly.
In the longer term, the Government will focus on targeted investments to strengthen the middle class, build resiliency, and generate growth. The Government will also identify additional ways to tax extreme wealth inequality, including by concluding work to limit the stock option deduction for wealthy individuals at large, established corporations, and addressing corporate tax avoidance by digital giants.
Web giants are taking Canadians’ money while imposing their own priorities. Things must change, and will change. The Government will act to ensure their revenue is shared more fairly with our creators and media, and will also require them to contribute to the creation, production, and distribution of our stories, on screen, in lyrics, in music, and in writing.
This fall, the Government will release an update to Canada’s COVID-19 Economic Response Plan. This will outline the Government’s economic and fiscal position, provide fiscal projections, and set out new measures to implement this Throne Speech.
This update will make clear that the strength of the middle class, and the wellbeing of all Canadians, remain Canada’s key measures of success.
Building back better — a resiliency agenda for the middle class
As we fight for every Canadian and defend everyone’s ability to succeed, we also need to focus on the future, and on building back better. This forms the third foundation of the Government’s approach.
Around the world, advanced economies are realizing that things should not go back to business as usual. COVID-19 has exposed the vulnerabilities in our societies.
The Government will create a resiliency agenda for the middle class and people working hard to join it.
This will include addressing the gaps in our social systems, investing in health care, and creating jobs. It will also include fighting climate change, and maintaining a commitment to fiscal sustainability and economic growth as the foundation of a strong and vibrant society.
Addressing gaps in our social systems
Central to this is recognizing that one of the greatest tragedies of this pandemic is the lives lost in long-term care homes. Elders deserve to be safe, respected, and live in dignity.
Although long-term care falls under provincial and territorial jurisdiction, the federal government will take any action it can to support seniors while working alongside the provinces and territories.
The Government will work with Parliament on Criminal Code amendments to explicitly penalize those who neglect seniors under their care, putting them in danger.
The Government will also:
Work with the provinces and territories to set new, national standards for long-term care so that seniors get the best support possible;
And take additional action to help people stay in their homes longer.
The Government remains committed to increasing Old Age Security once a senior turns 75, and boosting the Canada Pension Plan survivor’s benefit.
The Government will look at further targeted measures for personal support workers, who do an essential service helping the most vulnerable in our communities. Canada must better value their work and their contributions to our society.
COVID-19 has disproportionately affected Canadians with disabilities, and highlighted long-standing challenges. The Government will bring forward a Disability Inclusion Plan, which will have:
A new Canadian Disability Benefit modelled after the Guaranteed Income Supplement for seniors;
A robust employment strategy for Canadians with disabilities;
And a better process to determine eligibility for Government disability programs and benefits.
Over the last six months, it has become clearer than ever why Canadians need a resilient health care system.
The Government will ensure that everyone — including in rural and remote areas — has access to a family doctor or primary care team. COVID-19 has also shown that our system needs to be more flexible and able to reach people at home. The Government will continue to expand capacity to deliver virtual health care.
The Government will also continue to address the opioid epidemic tearing through communities, which is an ongoing and worsening public health crisis. Additionally, the Government will further increase access to mental health resources. All Canadians should have the care they need, when they need it. We will all be stronger for it.
The same goes for access to the medicine that keeps people healthy. Many Canadians who had drug plans through work lost this coverage when they were laid off because of the pandemic. So this is exactly the right moment to ramp up efforts to address that.
The Government remains committed to a national, universal pharmacare program and will accelerate steps to achieve this system including:
Through a rare-disease strategy to help Canadian families save money on high-cost drugs;
Establishing a national formulary to keep drug prices low;
And working with provinces and territories willing to move forward without delay.
In addition to good health infrastructure, Canadians also need strong, safe communities to call home.
The Government has banned assault-style firearms. The Government will also continue implementing firearms policy commitments, including:
Giving municipalities the ability to further restrict or ban handguns;
And strengthening measures to control the flow of illegal guns into Canada.
Women’s safety must be the foundation on which all progress is built. The Government will accelerate investments in shelters and transition housing, and continue to advance with a National Action Plan on Gender-Based Violence.
To keep building strong communities, over the next two years the Government will also invest in all types of infrastructure, including public transit, energy efficient retrofits, clean energy, rural broadband, and affordable housing, particularly for Indigenous Peoples and northern communities.
In the last six months, many more people have worked from home, done classes from the kitchen table, shopped online, and accessed government services remotely. So it has become more important than ever that all Canadians have access to the internet.
The Government will accelerate the connectivity timelines and ambitions of the Universal Broadband Fund to ensure that all Canadians, no matter where they live, have access to high-speed internet.
And to further link our communities together, the Government will work with partners to support regional routes for airlines. It is essential that Canadians have access to reliable and affordable regional air services. This is an issue of equity, of jobs, and of economic development. The Government will work to support this.
Strong communities are places where everyone has a safe, affordable home.
No one should be without a place to stay during a pandemic, or for that matter, a Canadian winter.
This week, the Government invested more than $1 billion for people experiencing homelessness, including for this fall.
In 2017, the Government announced that it would reduce chronic homelessness by 50 percent. The Government has already helped more than a million people get a safe and affordable place to call home. Given the progress that has been made, and our commitment to do more, the Government is now focused on entirely eliminating chronic homelessness in Canada.
At the same time, the Government will also make substantial investments in housing for Canadians.
The Government will add to the historic National Housing Strategy announced in 2017 by increasing investments to rapid housing in the short term, and partnering with not-for-profits and co-ops in the mid- to long-term. For the middle class, the Government will also move forward with enhancements to the First-Time Home Buyer Incentive, including in Canada’s largest cities, so families can afford to buy their first home.
Housing is something everyone deserves, and it’s also a key driver of the economy. Construction projects create jobs, and having a home is critical so people can contribute to their communities.
Just like everyone deserves a home, everyone deserves to be able to put nutritious food on the table.
The pandemic has made that harder for Canadians. The Government will continue to work with partners — including directly with First Nations, Inuit, and Métis Nation partners — to address food insecurity in Canada. The Government will also strengthen local food supply chains here in Canada.
The Canadian and migrant workers who produce, harvest, and process our food — from people picking fruit to packing seafood — have done an outstanding job getting good food on people’s plates. They deserve the Government’s full support and protection.
The Government will also ensure that those in Canada’s supply managed sectors receive full and fair compensation for recent trade agreements. Farmers keep our families fed, and we will continue to help them succeed and grow.
A stronger workforce
This pandemic has revealed gaps in health, housing, and food supply. And it has also laid bare inequalities Canadians face in the workforce.
We have an opportunity to not just support Canadians, but grow their potential. Working with the provinces and territories, the Government will make the largest investment in Canadian history in training for workers. This will include by:
Supporting Canadians as they build new skills in growing sectors;
Helping workers receive education and accreditation;
And strengthening workers’ futures, by connecting them to employers and good jobs, in order to grow and strengthen the middle class.
From researchers developing vaccines, to entrepreneurs building online stores, this pandemic has reminded us of the power of the knowledge economy, and how vital it is for our future.
Canadians are leading, and they should have government services that keep up.
The Government will make generational investments in updating outdated IT systems to modernize the way that Government serves Canadians, from the elderly to the young, from people looking for work to those living with a disability. The Government will also work to introduce free, automatic tax filing for simple returns to ensure citizens receive the benefits they need.
Government must remain agile, and ready for what lies ahead.
Taking action on extreme risks from climate change
Climate action will be a cornerstone of our plan to support and create a million jobs across the country.
This is where the world is going. Global consumers and investors are demanding and rewarding climate action.
Canadians have the determination and ingenuity to rise to this challenge and global market opportunity.
We can create good jobs today and a globally competitive economy not just next year, but in 2030, 2040, and beyond.
Canadians also know climate change threatens our health, way of life, and planet. They want climate action now, and that is what the Government will continue to deliver.
The Government will immediately bring forward a plan to exceed Canada’s 2030 climate goal. The Government will also legislate Canada’s goal of net-zero emissions by 2050.
As part of its plan, the Government will:
Create thousands of jobs retrofitting homes and buildings, cutting energy costs for Canadian families and businesses;
Invest in reducing the impact of climate-related disasters, like floods and wildfires, to make communities safer and more resilient;
Help deliver more transit and active transit options;
And make zero-emissions vehicles more affordable while investing in more charging stations across the country.
A good example of adapting to a carbon-neutral future is building zero-emissions vehicles and batteries. Canada has the resources — from nickel to copper — needed for these clean technologies. This — combined with Canadian expertise — is Canada’s competitive edge.
The Government will launch a new fund to attract investments in making zero-emissions products and cut the corporate tax rate in half for these companies to create jobs and make Canada a world leader in clean technology. The Government will ensure Canada is the most competitive jurisdiction in the world for clean technology companies.
Additionally, the Government will:
Transform how we power our economy and communities by moving forward with the Clean Power Fund, including with projects like the Atlantic Loop that will connect surplus clean power to regions transitioning away from coal;
And support investments in renewable energy and next-generation clean energy and technology solutions.
Canada cannot reach net zero without the know-how of the energy sector, and the innovative ideas of all Canadians, including people in places like British Columbia, Alberta, Saskatchewan, and Newfoundland and Labrador.
The Government will:
Support manufacturing, natural resource, and energy sectors as they work to transform to meet a net zero future, creating good-paying and long-lasting jobs;
And recognize farmers, foresters, and ranchers as key partners in the fight against climate change, supporting their efforts to reduce emissions and build resilience.
The Government will continue its policy of putting a price on pollution, while putting that money back in the pockets of Canadians. It cannot be free to pollute.
This pandemic has reminded Canadians of the importance of nature. The Government will work with municipalities as part of a new commitment to expand urban parks, so that everyone has access to green space. This will be done while protecting a quarter of Canada’s land and a quarter of Canada’s oceans in five years, and using nature-based solutions to fight climate change, including by planting two billion trees.
The Government will ban harmful single-use plastics next year and ensure more plastic is recycled. And the Government will also modernize Canada’s Environmental Protection Act.
When the Prairie Farm Rehabilitation Administration was closed by a previous government, Canada lost an important tool to manage its waters. The Government will create a new Canada Water Agency to keep our water safe, clean, and well-managed. The Government will also identify opportunities to build more resilient water and irrigation infrastructure.
At the same time, the Government will look at continuing to grow Canada’s ocean economy to create opportunities for fishers and coastal communities, while advancing reconciliation and conservation objectives. Investing in the Blue Economy will help Canada prosper.
The Canada we’re fighting for
This is a fight for Canadians today and Canada tomorrow. So we must never forget the values that make us who we are. The fourth and final foundation of the Government’s approach is defending Canadian values and ensuring they are lived experiences for everyone.
Canada is a place where we take care of each other. This has helped Canada weather the pandemic better than many other countries.
Canada must continue to stand up for the values that define this country, whether that’s welcoming newcomers, celebrating with pride the contributions of LGBTQ2 communities, or embracing two official languages. There is work still to be done, including on the road of reconciliation, and in addressing systemic racism.
Reconciliation
Throughout the pandemic, the Government has made it a priority to support Indigenous communities, which has helped contain the spread of COVID-19 and kept people safe. That is something the Government will continue to do.
The Government will walk the shared path of reconciliation with Indigenous Peoples, and remain focused on implementing the commitments made in 2019. However, the pandemic has shown that we need to keep moving forward even faster on a number of fronts including by:
Expediting work to co-develop distinctions-based Indigenous health legislation with First Nations, Inuit, and the Métis Nation, and a distinctions-based mental health and wellness strategy;
Accelerating work on the National Action Plan in response to the National Inquiry into Missing and Murdered Indigenous Women and Girls’ Calls for Justice, as well as implementation of the Truth and Reconciliation Commission’s Calls to Action;
And continuing to close the infrastructure gap in Indigenous communities, working on a distinctions-basis with First Nations, Inuit, and the Métis Nation to accelerate the government’s 10-year commitment.
The Government will also:
Make additional resiliency investments to meet the clean drinking water commitment in First Nations communities;
And support additional capacity-building for First Nations, Inuit, and the Métis Nation.
The Government will move forward to introduce legislation to implement the United Nations Declaration on the Rights of Indigenous Peoples before the end of this year.
Addressing systemic racism
For too many Canadians, systemic racism is a lived reality. We know that racism did not take a pause during the pandemic. On the contrary, COVID-19 has hit racialized Canadians especially hard.
Many people — especially Indigenous people, and Black and racialized Canadians — have raised their voices and stood up to demand change.
They are telling us we must do more. The Government agrees.
The Government pledged to address systemic racism, and committed to do so in a way informed by the lived experiences of racialized communities and Indigenous Peoples.
The Government has invested in economic empowerment through the Black Entrepreneurship Program, while working to close the gaps in services for Indigenous communities. Important steps were taken with the release of Canada’s Anti-Racism Strategy for 2019-2022, the creation of an anti-racism secretariat, and the appointment of the first-ever Minister focused specifically on diversity and inclusion. This is all good, but much more needs to be done for permanent, transformative change to take shape.
The Government will redouble its efforts by:
Taking action on online hate;
Going further on economic empowerment for specific communities, and increasing diversity on procurement;
Building a whole-of-federal-government approach around better collection of disaggregated data;
Implementing an action plan to increase representation in hiring and appointments, and leadership development within the Public Service;
And taking new steps to support the artistic and economic contributions of Black Canadian culture and heritage.
Progress must also be made throughout the policing and justice systems. All Canadians must have the confidence that the justice system is there to protect them, not to harm them. Black Canadians and Indigenous Peoples are overrepresented in the criminal justice system. That has to change.
The Government will take steps to ensure that the strong hand of criminal justice is used where it is needed to keep people safe, but not where it would be discriminatory or counterproductive.
The Government will:
Introduce legislation and make investments that take action to address the systemic inequities in all phases of the criminal justice system, from diversion to sentencing, from rehabilitation to records;
Move forward on enhanced civilian oversight of our law enforcement agencies, including the RCMP;
Modernize training for police and law enforcement, including addressing standards around the use of force;
Move forward on RCMP reforms, with a shift toward community-led policing;
And accelerate work to co-develop a legislative framework for First Nations policing as an essential service.
Protecting two official languages
Our two official languages are woven into the fabric of our country.
The defence of the rights of Francophones outside Quebec, and the defence of the rights of the Anglophone minority within Quebec, is a priority for the Government.
The Government of Canada must also recognize that the situation of French is unique. There are almost 8 million Francophones in Canada within a region of over 360 million inhabitants who are almost exclusively Anglophone. The Government therefore has the responsibility to protect and promote French not only outside of Quebec, but also within Quebec.
In this vein, 51 years after the passage of the Official Languages Act, the Government is committed to strengthening this legislation among other things, taking into consideration the unique reality of French.
A welcoming Canada
Immigration remains a driver of Canada’s economic growth.
With other countries rejecting global talent that could help their economy, Canada has an opportunity as we recover to become the world’s top destination for talent, capital, and jobs. When people choose Canada, help build Canada, and make sacrifices in support of Canada, we should make it easier for them to formally become Canadian.
Earlier this year, the Government announced measures to grant permanent residency to people who, although not Canadian citizens, had cared for the most vulnerable in long-term care homes and other medical facilities.
The Government will continue to bring in newcomers and support family reunification. We know that there is an economic and human advantage to having families together.
As part of both the short-term economic recovery and a long-term plan for growth, the Government will leverage the advantage we have on immigration to keep Canada competitive on the world stage.
Canada in the world
We must take action on all of these priorities at home. But we must also address the world in which we live.
COVID-19 has accelerated the existing trends toward a more fragmented global order. It remains in Canada’s interest to create and maintain bilateral and multilateral relationships to advance peace and economic prosperity.
The Government will invest more in international development while supporting developing countries on their economic recoveries and resilience. Canada will also support work to ensure that people around the world have access to a vaccine. We cannot eliminate this pandemic in Canada unless we end it everywhere.
The Government will also continue to stand up for human rights and the rule of law. It is unacceptable that any citizen be arbitrarily detained. Michael Kovrig and Michael Spavor must be brought home. This is something for which all Canadians stand united.
The Government will continue to fight for free trade, including by leading the Ottawa Group to reform the World Trade Organization.
Our likeminded allies and partners are investing to make sure their societies emerge stronger. This Government’s plan does that as well.
Conclusion
Taken together, this is an ambitious plan for an unprecedented reality. The course of events will determine what needs to be done when.
But throughout, protecting and supporting Canadians will stay the top priority.
And the core values that have driven the Government since day one remain the same.
In 2015, Canadians asked their government to deliver real change on everything from middle class jobs to climate change. In 2019, the people chose a Parliament that would keep moving forward on these shared goals. And in 2020, Canadians expect nothing less.
It is no small task to build a stronger, more resilient country.
It will take hard work. It will require a commitment to finding common ground.
Parliamentarians, Canadians have placed a trust in you to guide this country forward. They have placed their faith in you to work together to meet whatever challenges we face.
Remember that we are here today because of the generations of Canadians who came before us. We are here because of the women and men — our parents, grandparents, and great-grandparents — who had the courage to reach for a better future.
Today, it is our turn. Our moment to build a stronger and more resilient Canada for everyone.
Members of the House of Commons, you will be asked to appropriate the funds to carry out the services and expenditures authorized by Parliament.
Members of the Senate and Members of the House of Commons, may you be equal to the profound trust bestowed on you by Canadians, and may Divine Providence guide you in all your duties.
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View Gerald Soroka Profile
CPC (AB)
View Gerald Soroka Profile
2020-03-12 14:10 [p.2012]
Mr. Speaker, I was raised on a farm where I learned the value of money and the importance of financial planning.
With every budget the Liberals put out, they continue to add billions of dollars to our national debt. This is not budgeting; this is reckless spending. There are now so many uncertainties in the Canadian economy, with companies like Teck and investors like Warren Buffett unwilling to invest in Canada. Now, combined with the coronavirus, the future of the Canadian economy is looking pretty bleak.
I am sure the Liberals will paint a pretty picture that navigating our turbulent economy will be like gently floating down a stream in an inner tube, and it might even be enjoyable. I wonder what theatrical words the Prime Minister will use to describe why we are heading straight over Niagara Falls.
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2020-03-09 11:05 [p.1769]
Mr. Speaker, today is an occasion for us to reflect upon the economic events that are unfolding before our eyes. To do so, I will be splitting my time with the hon. member for Edmonton Mill Woods.
Let us begin with the story of the grasshopper and the ants:
One fine day in winter, some ants were busy drying their store of corn, which had gotten rather damp during the long spell of snow. Presently came up a grasshopper and begged them to spare a few grains. “For,” he said, “I am simply starving.”
The ants stopped work for a moment, though this was against their principles. “May we ask,” said they, “what were you doing with yourself last summer? Why did you not collect a store of food for the winter?”
“The fact is,” replied the grasshopper, “I was so busy singing that I hadn't the time.” “If you spent the summer singing,” the ants replied, “you can't do better than spend the winter dancing,” and they chuckled and went on about the work.
The ants had been responsible. They knew that the sunshine of the summer would not last, that it was merely one season of the year, so they worked hard to accumulate and set aside grain for the difficult times they knew would be ahead. What did the grasshopper do? He assumed that the sun would always shine and that times would always be good, and that therefore he did not need to do anything but dance and sing and play.
It is no so long ago that the sun was shining on the global economy. In the years 2016, 2017 and 2018, things were quite good. The U.S. economy was roaring, having some of the best growth it had experienced in two decades. Commodity prices had recovered from their lows in 2014, and interest rates were as low as one could expect them to be. In fact, it was almost a perfect coincidence of events where growth was high and interest rates were low, all of which maximized the sunshine that blanketed the economic countryside.
Conservatives said, “Like the ants, now is the time to store away the grains, because the sun will not shine forever.” Liberals told us that we should dance and sing and spend. They said that we should spend the cupboard bare and not worry about the bad times, for the good times were here. They said that it was the time to squander those good times and to celebrate in a period of self-praise all the riches that fell from the sky.
Conservatives warned that one day winter would come, that trouble would arise and that we would want then to open our cupboards and find them overflowing with a surplus of supply to get us through those cold, dark months and into the economic springtime down the calendar. Of course, across the way the government said no and that it was going to continue to spend.
What did the Liberals do? In every single year since they formed government, their deficits have been bigger than they promised. They told us that deficits would never exceed $10 billion a year, yet they reached $29 billion. They told us that the budget would be balanced in 2019. That year came and went, and now they predict that the budget will never be balanced. They put us on track to add $100 billion to our national debt.
They did all this while the sun was shining, convinced that the economic laws of the four seasons had been abolished, that bad times would never return and that all we needed to do was sing, dance and spend. It appears winter may have arrived.
I looked at Bloomberg News today at 9:30. I quote:
Canadian markets were battered on all fronts as the collapse in oil sent shockwaves through a country with one of the biggest exposures to the commodity among the Group of Seven.
Stocks cratered 10% with the biggest drop since October 1987, the loonie weakened and government bond yields plunged to fresh records as investor pessimism deepened for an economy that barely eked out any growth in the fourth quarter and is already grappling with the coronavirus.
I emphasize again the last point in the Bloomberg article, that in the last three months of 2019 we had growth of 0.3%, and that was before the illegal blockades and before the coronavirus broke out and started to impact on global economic matters.
I go back to Bloomberg:
The slump in oil will exact another heavy toll on the natural resource-dependent country, which generates about 9% of its gross domestic product from energy and has the biggest exposure to the sector on its stock market at 15%.
Remember, that is the sector the Prime Minister wanted to phase out altogether, and it looks like he is achieving some success.
Not only would the ants be unhappy with the approach the government took to the good times; so too would be Keynes, the great economist leftists these days try to appropriate for themselves. In his great work The General Theory of Employment, Interest and Money, Keynes explained that during good economic times governments should run large surpluses and pay down debt in order to prepare a buffer and allow for economic stimulus when troubled times later come. That is exactly the formula followed by the previous Conservative government.
In the first two years it was in office, it paid off almost $40 billion of debt under Stephen Harper and Jim Flaherty. To their credit, Chrétien and Martin in the years prior did likewise. That decision to pay down debt prepared us for the winter ahead. When the winter came, and it was a serious winter, we in Canada were more prepared than any other G7 country. We weathered that grand winter storm better than anyone else because our cupboards overflowed with the surplus of responsible planning and hard work that had happened in the summer months.
The current government, having done the opposite, now leaves us weak and vulnerable as we enter this winter period. Having rendered us so weak and so vulnerable, what can we do now to get us through the winter? We as Conservatives have a plan.
That plan would reduce taxes on workers and entrepreneurs to stimulate hard work, enterprise, investment and consumer activity. It would remove the anti-development barriers imposed by bills C-69 and C-48 which prevent us from shipping our resources from the Pacific coast, and from building pipelines to deliver them there in the first place.
We would require a two-for-one red tape reduction rule. That is to say if the government brings in one new economic regulation, it would need to get rid of two of them in order to remove the red tape that is holding back our economy.
We would replace wasteful corporate welfare, like the millions for Bombardier, Loblaws, Mastercard and BlackBerry, with lower taxes for all entrepreneurs to unleash their power to generate wealth and get us through these hard times. In other words, we want to unleash the fierce and ferocious power of free enterprise, which is the only source of prosperity that will get us through these difficult times.
We believe in responsible planning for trouble ahead. That planning did not occur, so now we as Conservatives step forward again with a responsible plan to get us through the hard times, to get us over the difficulties and to allow Canadians to fulfill their potential so that anyone who works hard can achieve his or her dreams.
View Tim Uppal Profile
CPC (AB)
View Tim Uppal Profile
2020-03-09 11:20 [p.1771]
Madam Speaker, it is an honour for me, speaking on behalf of my constituents, to rise and speak to this very important motion. It is a motion that my colleague from Carleton has brought forward, and one that I had the opportunity to second.
Throughout my ongoing consultations and interactions with constituents, I hear about the concerns of the people right across Edmonton Mill Woods. One of the most repeated concerns I hear, especially from those in the energy sector, is that they cannot find work.
Just this weekend I heard the story of James, a constituent in my riding who is just starting a young family. He had a great job, a well-paying job with benefits. He worked for a company that had been in operation in Alberta for over 25 years. Unfortunately he was laid off, as the company was forced to shut down and move its operations to the United States.
James has not been able to find work in over a year because of the economic situation in Alberta. He has seen first-hand the impacts the stalling economy has had on his living situation. It is situations like James' that are leading to the frustration, desperation and hopelessness at the root of the unity crisis we are seeing in western Canada.
To make matters worse, there are an unprecedented number of small businesses claiming bankruptcy. Canadians have seen the government raise taxes, spend wastefully and rack up massive deficits. Canadians are worried, and for good reason.
We are here today for this important debate. We are calling on the government to provide documents discussing warnings or concerns of economic downturns, the potential impact on the fiscal framework, or advice or recommendations on how to deal with them, and that those documents be provided to the House within 45 days following the adoption of this motion.
We are requesting documents going back to November 2015 because today's economic situation is not something that just happened overnight. Many experts have been warning about this situation for many years.
Constituents in my riding of Edmonton Mill Woods and right across Alberta have felt the effects the Liberal government has had on the economy the hardest. Alberta saw four straight months of job losses at the end of last year, resulting in nearly 10,000 jobs lost in a four-month span. That is 10,000 families receiving the devastating news from their family members when they came home from work that they had just lost their job.
Investment is fleeing Alberta as regulations are strangling the energy sector and making it almost impossible to build pipelines in Canada. Instead of reducing regulation and bringing in smart rules to make Canada an attractive place to invest, the government brought in the most burdensome regulations on work. These have resulted in nearly $200 billion in oil and gas projects being cancelled and 200,000 Canadian oil and gas workers losing their jobs over the last five years.
Bills like Bill C-69, the “no-more-pipelines” bill, and Bill C-48, the tanker ban, have unfairly targeted Alberta and have crippled its economy. We have seen the effects these bills and the lack of confidence in the government have had. This was highlighted most recently by Teck's decision to pull its application for the Frontier mine, a project that would have brought 7,000 construction jobs, 2,500 long-term jobs and billions of dollars in investment.
Investment continues to flee Canada while the demand for oil continues to climb right across the world. Foreign investment in Canada is down over 50% since the Prime Minister took power. This was most recently highlighted by Warren Buffet's decision to pull out of a $9-billion liquefied natural gas project in Quebec over concerns about how the government is handling the illegal railway blockades and infrastructure disaster.
This impact is worsened by the increased taxes as a result of the Liberal government. Since the Liberal government came to power in 2015, 81% of middle-income Canadians are seeing higher taxes, with the average income tax increase for middle-income families coming in at $840.
From the cancelled family tax cut to the cancelled art and fitness tax credit, to the cancelled education and textbook credit, the government has found a way to target every Canadian with higher taxes. As a result of these policies, 48% of Canadians are within $200 of not being able to pay their bills and their debt obligations. One-third of Canadians have no money left at the end of the month and are unable to cover their payments, falling further into debt. Adding to their growing concerns is the worry that the government has mismanaged the economy completely.
Businesses are experiencing the same harsh reality. Businesses are facing new carbon taxes and increased CPP and EI premiums. Thousands of local businesses across our great nation are no longer qualifying for the small business tax rate, or will see it reduced. While other G7 countries, such as the United States, United Kingdom and France, have all embarked on major tax reforms over the past few years to simplify the tax code and lower overall taxes, Canada continues to move in the opposite direction by increasing taxes and regulations, stifling our economy and having taxpayer dollars go up in smoke.
That is what the government is doing, while also spending these increased tax dollars at unprecedented levels. During the first four years of the Liberal government, the Prime Minister added over $72 billion to the national debt. This was after the Prime Minister, during the 2015 debates, promised, “I am looking straight at Canadians and being honest the way I always have been. We've said we are committed to balanced budgets and we are. We will balance that budget in 2019.”
However, here we are at the end of the 2019-20 fiscal year and we are staring at the reality of another deficit and nearly $100 billion added to our debt. There is no evidence that there was any increase in economic growth as a result of the spending.
There is also little to show for the frivolous spending. We can look at the $187-billion infrastructure program that the Parliamentary Budget Officer said resulted in zero increase in infrastructure built in Canada because the infrastructure plan did not exist; the $40 million to BlackBerry, where the CEO of the company candidly admitted he did not need the money; the $12 million to buy new refrigerators for Loblaws, a company that turned hundreds of millions of dollars in profits last year; or the $50-million handout to Mastercard. These examples are priceless.
Canadians are getting the short end of the stick again while seeing their hard-earned tax dollars going to waste and turned into subsidies for these Liberal-favoured companies. Let us contrast this with the Conservative plan that my honourable colleague from Carleton laid out.
Being the party of the taxpayer, we outlined our five-step plan focused on tax cuts for workers and entrepreneurs, a plan to phase out the deficit, eliminate red tape and free businesses, end corporate welfare for Liberal-favoured companies, and end wasteful Liberal spending that we have seen over the past four years. These are the types of actions needed to ensure our economy continues to function and that is why we bring forward this motion.
I am proud to support this motion in the House today. Canadians have seen the government raise taxes, spend wastefully and rack up massive deficits. Canadians are worried about the state of the economy, and for good reason, especially given the bleak reality our stock markets reflect today. The Liberals have squandered the good times, leaving us weak and vulnerable for economic turmoil.
As opposed to paying down the debt, the government racked it up while the world was stable and prosperous and spent at unprecedented levels. Canada's economic growth has slowed to 0.3% in the fourth quarter, the worst performance in almost four years, and this was all before the impact of the illegal blockades and coronavirus. The blockades have stifled our economy for weeks and affected small businesses across the country. The Prime Minister's sky-high taxes, wasteful spending and massive deficits have put Canada in an incredibly weak and vulnerable position, with the possibility of a made-in-Canada recession rapidly approaching.
As we continue to see the effects these illegal blockades have had on our economy and the increased concern of the effects of COVID-19, now is the time for the government to finally be transparent with Canadians, to provide us with its plans discussing warnings or concerns of the economic downturns and their potential impacts on the fiscal framework, and advice and recommendations on how to deal with them. Canadians are worried about what is next. The people in my riding of Edmonton Mill Woods, right across Alberta and across this country as a whole cannot handle more weakness and vulnerability from the government.
Canada's Conservatives have a plan to unleash our economy, reward hard work, eliminate waste and allow Canadians to fulfill their potential. We will continue to be the voice of hard-working entrepreneurs and Canadians today and demand that the Liberals get our economy back on track, so that Canadians can get back to work.
View Sean Fraser Profile
Lib. (NS)
View Sean Fraser Profile
2020-03-09 11:36 [p.1773]
Madam Speaker, as always it is a pleasure to rise in the chamber and, in this instance, to contribute to the debate that largely revolves around the fiscal and economic health of our nation in uncertain and challenging times globally.
The sponsor of the motion went to great lengths to talk down the Canadian economy in an effort to score political points. I disagree with the vast majority of the points that he raised during his debate, so it is somewhat ironic that I plan on supporting the motion because the documents that may exist are not documents that we have any interest in keeping from the opposition nor the Canadian public.
Over the course of my remarks there are a few key themes that I hope to touch on, in order to provide an overview of the current economic and fiscal context in which we find ourselves; to highlight some of the emerging challenges that face the Canadian economy; and to introduce some of the measures that we have put forward in the past few years, which have yielded results far beyond what I thought possible when I was a candidate in the 2015 federal election campaign.
By way of background, it would be helpful to describe the context within which we find ourselves.
Canada is in a very healthy fiscal position compared to other developed economies in the global community. We are well positioned to respond to the kinds of challenges that are now making themselves present.
The narrative that somehow overspending has put us in a position where we cannot afford to deal with the challenges we are now facing is based on false pretenses. I honestly believe that it is designed purely to score political points based on misinformation, rather than making substantive points that contribute to the health of our democratic discourse in Canada.
The fundamentals of our economy are strong. We have seen extraordinary job growth in the past few years. We have seen, as importantly, that growth translate into benefits for middle-class and low-income Canadians. We have seen certain measures improve the competitiveness of our nation's economy and we have seen an overall improvement to the fiscal health of our economy.
Responsible management of the economy is at the forefront of our government. The mandate letter to the finance minister from the Prime Minister specifically mandates him to continue to see our national debt shrink as a function of our economy and to ensure that we preserve enough economic firepower to respond, in the event that an economic downturn does come to pass.
We have been planning to invest in Canadians to create growth but also making sure that we have enough fiscal room to operate, should the circumstances demand any kind of a change in course. Sometimes, the fiscally prudent thing to do is to take advantage of opportunities to invest that may exist.
If I look at the status of Canada's economy right now, what I see is a debt-to-GDP ratio that has actually been shrinking and is projected to continue to go down. What I see is the healthiest debt-to-GDP ratio of any G7 economy. Canada is one of only two countries within the G7 to have a AAA credit rating, the highest possible rating with all of the major credit agencies. Canada is one of only about 10 countries on the planet today that have a credit rating of this strength.
In addition, in our federal budgets that we table, we prepare for contingencies to deal with events that we may not have been able to foresee at the time of their crafting, specifically to deal with challenges that may present themselves that may not be apparent on the day a budget is tabled. Having that contingency in place is precisely the kind of thing we do to deal with emerging challenges, and I will deal with a few of them now.
Of course, the spread of COVID-19, or as most Canadian households would refer to it, coronavirus, in recent weeks may not have been something that could have been apparent months ago. When we became aware that this was an issue that needed to be dealt with, we responded professionally every step of the way.
When it comes to something like the coronavirus, I want to make clear that while it is also an economic issue, our number one priority is protecting the health of Canadians. I have been blown away by the leadership of the Public Health Agency of Canada and the level of co-operation with our international partners, whether it is the G7 or IMF on the economic side, or the World Health Organization on the public health side. I have also been blown away with the level of coordination between federal departments through the government operations centre, which was triggered by public safety in recent weeks, as well as the Public Health Agency's coordination of the efforts between the provinces and territories with federal measures that have been put in place.
To those front-line workers who are diligently protecting the health of Canadians, so that my family and I can sleep soundly knowing that we are in good hands, I want to thank them for their professionalism and excellence throughout.
I want to recognize that despite the fact that it is primarily a public health issue, there are also economic challenges that obviously arise when we see threats of this nature. We do not have to have a crystal ball to see that there is an impact on commodity prices when a particular region of the world has such a dramatic drop in demand that it suddenly has an impact on the countries that produce those commodities. This is having a particular impact on the metals and oil and gas sectors that Canada's economy has depended on for a very long time.
We also see that the travel and tourism sectors can be significantly impacted whenever there are affected regions of the world that have travel advisories. It also can have an economic impact at home. My home province of Nova Scotia was set to host the international women's hockey championship in the coming months. Unfortunately, out of concern of public health and safety, that event had to be cancelled. That will have an unfortunate economic impact on the communities that were so looking forward to hosting that tournament.
There is also an economic impact on global supply chains. Canadian businesses that may not be able to secure the products they rely on for the manufacturing process, for example, may not be able to provide their products to their typical end customers or they may have to pay a higher price. It is not lost on us that the events that are global in nature can have a very serious impact on us at home and they can also impact the general business and consumer sentiments. They can cause them to change course in the spending decisions they otherwise would have made.
One of the things we are doing to monitor the economic impact of this outbreak is to make sure that we have the resources in place so that Canada can maintain a world-class public health response. We also want to continue to monitor the impact on businesses and workers and ensure the measures that we are putting in place are going to serve the interests of keeping the Canadian economy operating at capacity.
We have a plan to increase our risk adjustment in the upcoming federal budget to make sure that we are planning for the potential impact that this illness could have on our nation's economy. We can look recently at the blockades that were canvassed in a number of debates in the House in response to the protests tied to the land rights issue in the Wet'suwet'en territory in western Canada.
We have also taken measures to address the economic impacts of the rail blockades. If there is a lesson to be learned from the past few weeks, it is that there is no straight path to reconciliation with indigenous peoples. Reconciliation requires dedication and hard work, and we have to recognize that there is still a lot of work to be done. This is a healing process that will involve good days and not-so-good days. We need to continue to show our determination.
Canada is a trading nation and we ship a lot of our goods to world markets by rail. Although it is too early to know the full impact of the blockades, we know that they were extremely challenging and frustrating for businesses and individuals. We have to keep in mind that many Canadians rely on rail transit networks to obtain basic necessities like food, to commute to and from work every day and to earn a living.
Thousands of workers were laid off, and many are still having problems. The situation is having real and immediate effects. Our government is working 24 hours a day to mitigate the economic risks of the rail blockades and to find a lasting solution.
From day one, we knew that we could not take shortcuts and that, no matter how difficult, dialogue was the best approach. Many people have criticized our approach, but it is working. For the most part, trains are running again. The people who were laid off are being rehired. Most of the blockades have been dismantled. In my opinion, the Prime Minister took the right approach even though other politicians proposed simple solutions to a very complex problem.
There is another emerging challenge for the Canadian economy. I do not know if I can even call it that, we have known about it for so long. I would be remiss if I did not raise the threat posed by climate change not only to our environment, but to our nation's economy.
The fact that we still have debates over whether human industrial activity is the primary driver of climate change is beyond me, and the fact that in the Canadian political context we still have debates on whether Canada can play a meaningful role in the fight against climate change is something that, as a representative who cares about this, I simply cannot accept. We cannot address challenges to our economy if we do not deal with the threats posed by climate change.
Canadians are feeling the effects today. We have seen storm surges in Nova Scotia, floods in New Brunswick, heat waves in Quebec and Ontario, droughts in the prairies, forest fires in the west and a glacial melt in the north. They are having a real impact on the traditional way of life of Canadians and on our economies.
Of course, there is also a direct economic impact. When representatives of the Insurance Bureau of Canada testified before the finance committee as part of our pre-budget consultations, they highlighted that in 1990, the losses associated with severe weather events were in the ballpark of $100 million. That number last year was in the ballpark of $2 billion, a twentyfold increase. I do not doubt that their motivations are pure, but I think they are motivated not only by the desire to do social good for our planet and environment, but also, as they represent the insurance industry, by the bottom line. If we follow the money, we can see that it costs more because life on planet earth has changed. We can address these challenges. They also testified that for every dollar in insured losses, three dollars in uninsured losses were being picked up by taxpayers today, whether municipal, provincial or federal. It is the same group of people who are now out of pocket far too much to deal with climate inaction over decades.
It is not just the cost of mitigating disasters or responding to floods that we need to deal with. There are also missed economic opportunities. When we look at the forest fires out west, we see that the impact they had on production, even in the energy sector, was immense.
Something that I am deeply concerned about, as I represent Nova Scotia, is what happened to the lobster fishery in Maine a few years ago because of high ocean temperatures. I fear that a similar kind of consequence will befall the lobster harvesters in Nova Scotia if we do not take action soon. I hope it is not already too late.
We also need to turn our mind to other things, not just the challenge facing our economy when we are dealing with climate change. There is a massive economic opportunity, according to Mark Carney, the former governor of the Bank of Canada and current governor of the Bank of England. He said there is a $26-trillion global opportunity.
The world is changing and we have to decide whether we want to change with it. If we choose to change and be a part of this transition, we will be at the front of a wave of economic growth that we perhaps cannot contemplate now.
In fact, we are seeing it already today. In my own community, the Trinity group of companies is helping with energy efficiency initiatives. It grew from a shop of about two people to dozens and dozens of employees. It helps homeowners reduce their power bills and emissions at the same time.
We are seeing investments in green infrastructure that are able to create jobs, put people to work and prevent the worst consequences of climate change for future generations. We are also seeing investments in research at St. Francis Xavier University, a university in my own backyard, to the Flux Lab, where Dr. David Risk has helped to discover a new gas leak detection technology that is helping energy companies reduce their emissions. It has put people to work not just in his lab, but at some of Canada's largest energy producers, which have now adopted this technology.
We have put forward the first national climate action plan, and we have introduced more than 50 measures. We expect to see growth in the green economy as a result.
However, while it is one thing to experience economic growth, it is another thing to make sure that it actually benefits everyday, ordinary Canadians. To grow the economy, we have made investments in infrastructure, which put people to work and strengthen communities, and in innovation through our universities, as I just cited. We have also triggered private sector investment.
We have changed rules around immigration to ensure that employers are not missing out on growth opportunities because they cannot find people in their communities to do the work. We have invested in trade to help grow the economy and are now the only G7 economy with free trade access to every other G7 economy.
We have cut the small business tax rate from 11% to 9%, making it the lowest rate of small business tax in the G7. We have also put new rules forward to accelerate the capital cost allowance right now for companies that are investing in ways to increase their production and put more people to work.
What is the result of these investments? There are more than 1.2 million new jobs in our nation's economy, including more than 30,000 last month. We are seeing record low unemployment, with more Canadians working now than at more or less any other point in our nation's history since we started keeping track of those statistics. However, it is cold comfort for someone living in poverty or who cannot afford the cost of raising a family to hear that there are a number of new jobs across Canada or that our GDP has, in fact, gone up.
That is why we have introduced policies like the Canada child benefit, which ended the practice of sending child care cheques to millionaires and puts more money directly into the pockets of nine out of 10 Canadian families. It is why the first thing we did when we came here after 2015 was advance a tax cut for nine million middle-class Canadians and raise taxes on the wealthiest 1% of income earners. It is why the first thing we did when we got here in 2019 was put forward a measure to reduce taxes for 20 million Canadians and eliminate federal income tax altogether for more than one million low-income Canadians. It is why we have advanced OAS benefits, reducing the age of eligibility for old age security from 67 to 65. It is why we have increased the guaranteed income supplement by 10% for low-income single seniors. It is why we made enhancements to the Canada pension plan, which I am learning the Conservative Party now opposes, to ensure our seniors can have a more dignified and secure retirement. It is why we are tackling the cost of education by improving the Canada student grants program, changing the timeline under which students have to repay debt they may have built up while studying, and why we doubled the Canada summer jobs program to put more young people to work.
What we are actually seeing, despite the clever use of statistics by some of the members opposite, is that the typical Canadian household, when we consider the totality of our body of work, is about $2,000 better off today than it was before we took office. More importantly, as we have seen recently, is that more than one million Canadians have been lifted out of poverty in the past few years. We have achieved the single greatest reduction in poverty over a three-year period in the history of Canada. About 334,000 of the people no longer living in poverty, who were living in poverty just four and a half years ago, are Canadian children. This is the kind of policy development that we should be shouting from the rooftops and sharing with the world to demonstrate how to successfully manage the benefits of economic growth to support Canadians.
The Conservatives' attack on the Canadian economy is not, in and of itself, an economic plan. What we have, when we look at the facts, is a rate of job growth that most would not have thought possible when the Liberals were coming into power at the end of 2015. More importantly, we have seen that Canadians writ large are sharing in the benefit of that growth, rather than it being concentrated among the wealthiest 1% of income earners. We have also seen more Canadians lifted out of poverty than almost any member of the House could have imagined four and a half years ago.
All of this has taken place while we have maintained a healthy fiscal framework that allows us to respond to the changing dynamics of the global economy. If members do not want to accept my word on this, I would invite them to read the report of the Parliamentary Budget Officer, who confirmed this to be the case just a few short weeks ago.
Yes, the world is changing and yes, there are challenges. However, Canada is up to them now and will be as long as we remain in government.
View Kerry Diotte Profile
CPC (AB)
View Kerry Diotte Profile
2020-03-09 13:23 [p.1789]
Madam Speaker, I am speaking today about our important opposition motion. Just so everybody remembers what it is, I will read that motion again. I believe it is vital that the House is provided with documentation “discussing warnings or concerns of economic downturns, their potential impact on the fiscal framework, or advice or recommendations on how to deal with them” that any department, agency or Crown corporation has produced since 2015. That is what we are talking about today.
In 2015, the Prime Minister promised that he would have a few $10-billion deficits, small deficits, before returning to a balanced budget in 2019. Do members remember that? Teeny-tiny deficits and then everything would be rosy in 2019.
We know what happened. The budget deficits turned out to be a whole lot larger than $10 billion annually. The year 2019 has also come and gone and despite promises made, we are nowhere near a balanced budget, not even close. In his first four years, the Prime Minister added more than $72 billion to the national debt. That is just disgraceful. The Bank of Canada has now slashed its interest rates, citing negative outlooks for the Canadian and global economies.
A responsible government would have prepared for a downturn. A responsible government would have set money aside for future uncertainty. We are certainly seeing that uncertainty now. It is absolutely a financial mess. A responsible government would have paid down the debt during years of economic growth. However, the Liberal government has not been responsible. Instead of showing leadership, the Liberals doubled down on unnecessary spending. They called it investment and investing in Canadians.
Let us just think back at some of those wise investments. The Liberals gave $50 million to Mastercard, a multinational company that made $16 billion in 2019 alone, and Mastercard gets $50 million. They gave $12 million to Loblaws to buy new fridges. They are basically giving more than $600 million as a bailout to the media. Here is a whopper: They spent $1,900 on cardboard cut-outs of the Prime Minister. How is that for value for money? They spent more than $12 billion on the still unbuilt Trans Mountain pipeline after scaring away investors. There is also the $256 million the Liberals gave to the Asian infrastructure bank to build pipelines in Asia. It seems the foreign pipelines are the only ones the Liberals can get built.
There is also the $186-billion infrastructure program. It has been a huge failure. In fact, it is now being audited by the Auditor General because of the Liberals' lack of transparency and accountability to Canadians. The bottom line is that the Liberals have failed to responsibly manage Canadian tax dollars. That failure has left Canada much more vulnerable to global economic downturns. We are seeing that right now.
Across our country, Canadians work hard to live within their means. They know that racking up credit card debt just is not sound policy. It leaves them unable to manage unexpected expenses, yet that is exactly what the Liberals have done in Canada. The Liberals have done what is easy instead of what is best for our country.
Let us compare this to the actions of the previous Conservative government.
Prior to the global recession of 2008-09, the Conservatives had paid down more than $37 billion in debt. This allowed the government flexibility to meet the fiscal challenges of the recession head on. That was why Canada had the mildest and shortest recession of the G7 countries.
In a 2010 report, Philip Cross, then chief economic analyst at Statistics Canada, said:
One reason for the relatively mild slump is that Canada was better positioned to weather the global recession than other large western economies, primarily due to savings as reflected in our national balance sheet.
He went on to say:
...strong balance sheets in Canada stood it in good stead to endure the recession and emerge into recovery. The recession was shorter and milder in Canada than in other G7 nations, partly because the flow of credit was not disrupted as it was in other nations and a large pool of savings was available to finance spending when income fell temporarily.
That was good fiscal policy under the Conservative government.
However, The Liberals have deliberately done the opposite. It sounds like a bad Seinfeld episode. That is the reason, in the elections of 2015 and 2019, the Conservatives promised voters that we would be responsible and that we would balance the budget. We knew that a responsible government needed to be prepared for global downturns.
The chickens are coming home to roost. We see what happens with global downturns in the situation we are in now. Just today, we saw the stock market plunge. Trading was actually halted. To say the least, the economic outlook is very grim. Now the Liberals will have to deal with that from a position of weakness. True leadership requires fiscal restraint.
Despite the Liberals wasting billions of dollars, they failed to build the key projects that would have helped Canadians weather this storm. The Trans Mountain pipeline is still nowhere near complete. Both the energy east pipeline and the northern gateway project are gone, thanks to the Liberals. The Teck Frontier project that promised thousands of jobs and billions of dollars of revenue was killed by government dithering and delay. Even Warren Buffett is moving his money out of a Quebec project, citing “the Canadian political context”.
In total, more than $160 billion worth of investment have been lost under the Prime Minister's watch. This is a direct result of the policies he and his Liberal government have advanced.
Take, for example, Bill C-69, or the no more pipelines bill. Bill C-69 would make it even harder to build a new project. Many critics do not see how any new projects can be built under this new regulatory process. There was widespread opposition to this regulation, including from provincial governments, industry, communities and indigenous groups, yet the Liberals went ahead with that harmful legislation anyway.
The bottom line is this. We have to return to fiscal accountability, to balanced budgets and to paying down the debt. This is what is showing up today and it is a disaster.
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