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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.
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