Hansard
Consult the user guide
For assistance, please contact us
Consult the user guide
For assistance, please contact us
Add search criteria
Results: 1 - 15 of 129
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 Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2021-06-22 16:10 [p.8990]
Madam Speaker, the Prime Minister thinks he has discovered a cornucopia of cash. In the last fiscal year he ran a deficit of $354 billion. From February 2020 until February 2021, the Bank of Canada increased the money supply by, guess what, $354 billion. The Prime Minister thinks this is great: It is easy money. He is starting to get addicted to this idea of cash flying out of printing machines and new coins being machine-gunned off the top floor of the Bank of Canada building, only a few minutes from where we stand.
I raise this today because there is a very interesting debate that is not happening, for which the deadline is quickly approaching, about the Bank of Canada's inflation target. Starting in 1991, the bank and the government signed a deal that inflation would be targeted between 1% and 3%. They called it the “monetary policy framework”: These are sleepy, boring words that may impact the financial health of Canadians more than anything else that happens here in Parliament. That deal to target inflation renews every five years. It comes up for renewal on October 24 of this year. The Prime Minister has made it clear he is going to call an early election during the summer, meaning that if he were to win he would be able to impose a brand new rule about inflation without Canadians having anything to say about it. I suspect that 99% of Canadians do not even realize this is up for debate, but here is why it matters.
If the Prime Minister were to change the bank's mandate this coming October, he could begin to permanently fund larger shares of government spending with printed Bank of Canada cash even if it leads to above 3% inflation, as we have right now. That would have been impossible prior to the pandemic. Based on agreements with the bank, we as Canadians were protected from undue price increases and unacceptable and unjustifiable money creation, but with the renewal of this agreement, about which there has been absolutely no debate in the House of Commons or at the finance committee, the Prime Minister may be able to carry out the biggest unapproved tax increase in Canadian history: the inflation tax.
What is the inflation tax? It is very simple. When the Bank of Canada creates cash to fund the government, it provides the government with a new revenue source. Last year, cash newly created by the Bank of Canada was the single-greatest source of revenue for the government. It was not income tax, the GST, tariffs or even borrowing from private sector lenders, but new cash creation that constituted a $303 billion source of revenue for the current government. The Prime Minister might like to see this go on into the future. The problem is that, like all taxes, it increases costs for Canadians. This tax would be paid in the form of higher prices. The price of housing went up by 30%. The prices of food, lumber, automobiles and transportation have all broken recent records. That is naturally what we can expect when the government floods the marketplace with cheap money. When money is cheap, everything else suddenly gets expensive.
We might ask if it is viewed as a tax by the experts. Let me quote the experts. I will go through them one at a time.
In a 1978 lecture, Nobel prize-winning economist Milton Friedman stated:
There has never been in history an inflation that was not accompanied by an extremely rapid increase in the quantity of money. There has never in history been an extremely rapid increase in the quantity of money without inflation....
This is why Dr. Friedman wrote, in his exhaustive study entitled “A Monetary History of the United States, 1867-1960”, that “inflation is everywhere and always a monetary phenomenon”. He also said that “inflation is taxation without legislation”, thereby violating the basic principle that Parliament should approve every single tax before government is able to apply it.
Some might say that this is just a classical economist view. Let us take a look at John Maynard Keynes, who is obviously not a classical economist. He said:
By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some.
This has been demonstrably proven. Inflation does benefit the extremely wealthy. That is why, in the last year of inflationary money printing, we saw a large increase in economic disparity between the rich and the poor. In the first six months of the central bank's money-printing bonanza, the 28 richest Canadians got 32% richer. That happened while our economy was tumbling by $120 billion.
Where did they get all the money from? The bank created cash, which inflated the assets of the super-rich while devaluing the wages of the working poor. This is one of the reasons we have the principle of no taxation without representation: It is not simply to approve the quantity of taxes, but the composition of taxes. Quantity refers to the dollar value. Of course, that was gargantuan last year, but composition refers to who pays it.
We know that the poor overwhelmingly pay the inflation tax. In fact, the governor of the Bank of Canada conceded that point to me when he came before the finance committee. He said the poor pay more in inflation because they deal more in cash. They are not able to hold their limited wealth in inflation-proof assets, like gold, land, stocks, bonds, etc. Therefore, the very small amount of money they have gets nibbled away by this silent thief we call inflation.
No one in this chamber would be able to get re-elected if they stood in their place and voted for an increase in taxes on the working poor and used the money disproportionately to inflate the wealth of the super-rich. That is why no such vote was held. The government simply passed that process on to the Bank of Canada to let money creation do the dirty deed on its behalf.
I will return to Dr. Milton Friedman, a Nobel Laureate, who said, “Inflation is the only form of taxation that can be levied without any legislation.” He was, of course, speaking as an economist. I will show the deliberate choice that the inflation tax has made and that has done so without the parliamentary approval of Canadians. I will show it by referring to the undeniable empirical evidence that Dr. Friedman produced.
He showed that, in the United States, the United Kingdom, Japan, Germany and Brazil, there was a perfect correlation between the rise in the consumer price index and the increase in the money supply for each unit of economic output. In other words, in all five of those countries on four continents, inflation rose almost perfectly in line with the growth in the money supply. That is empirical evidence proving beyond a doubt that when we create cash, we raise prices to the benefit of the rich and at the expense of the poor.
Modern financial sector experts say the same. HSBC's senior economic adviser, Stephen King, wrote in The Financial Times last year that “inflation and taxes are, in many ways, simply two sides of the same coin”. He further said that this is because “higher-than-anticipated inflation serves to redistribute wealth away from private creditors, pensioners for example, to public debtors. At this point, we come full circle: the distinction between the printing press and taxes begins to break down.” 
Warren Buffett, the greatest investor of all time, said:
The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislature. The inflation tax has a fantastic ability to simply consume capital. It makes no difference to a widow with her savings in a 5 percent passbook account whether she pays 100 percent income tax on her interest income during a period of zero inflation, or pays no income taxes during years of 5 percent inflation. Either way, she is “taxed” in a manner that leaves her no real income whatsoever. Any money she spends comes right out of capital. She would find outrageous a 120 percent income tax, but doesn't seem to notice that 5 percent inflation is the economic equivalent.
Let us say that a widow has $100,000 of savings. If she earns 5% on that, and if inflation is 5%, then she gains nothing. All of her savings income is vaporized by inflation. That would be the equivalent of the Parliament of Canada passing a bill effectively taxing her at a rate of 100% on all of her savings income, something we would never do but yet something that ultimately happens because the central bank does it without politicians being held accountable.
Mr. Buffett's business partner, the famous Charlie Munger, said:
I think democracies are prone to inflation because politicians will naturally spend excessively, they have the power to print money and will use money to get votes. If you look at inflation under the Roman Empire, with absolute rulers, they had much greater inflation, so we don't set the record. It happens over the long-term under any form of government.
Onward to John Kenneth Galbraith, a famous Canadian economist on the left, who said, “Nothing so weakens government as persistent inflation.”
Other international economists, Nouriel Roubini and David Backus, wrote, “Note that since the government, by printing money, acquires real goods and services, seigniorage is effectively a tax imposed by the government on private agents. Such a seigniorage tax is also called the inflation tax.” They go on to explain what impact that tax has, particularly on the poorest people.
This is not simply an opinion. This is a mathematical fact backed up by some of the most renowned economists on planet earth, many of them winning the Nobel Prize for their work, many of them having done hundreds of years of empirical research that proves the taxation effect of inflation. These are the insights of some of the world's best-ever investors. They all concur that inflation, when created by central bank money creation, is nothing more than a tax.
This kind of a tax has been mostly done by the worst possible leaders. We think of Henry VIII, for example. They used to call Henry VIII “Old Coppernose”, and that is because, despite the fact that he inherited a monstrous fortune from his father, and I do not know if that reminds members of anybody, he spent the cupboard bare. He kept running out of money, and the British pound, which was literally a pound of silver, was becoming more and more scarce to him.
He needed more coins, but he did not have enough silver to make them all, so what he did was melt down the existing coins and reconstitute them by making them of copper but putting a tiny, thin layer of silver around the outside. He had his face, of course, on the coin because he was an egomaniac, and his face pointed outward from the coin; it was not a profile picture. Because his nose protruded on the coin, it would rub against the inside of pockets and money sacks and the silver would rub away, leaving nothing but a red copper nose. Everybody would know that King Henry had given them a fraudulent, fake silver coin by virtue of the fact that his nose was red. We often say politicians' fibs can be exposed through the length of their nose. In the case of Henry VIII, it was the colour of his nose.
In fact, he did undergo the mass debasement of the currency. Originally, when he took reign, the British pound was 92% silver. It dropped to 75%, then 50%, then 33% and finally to 25% by 1551. His successor brought it down further. The result was, ultimately, that the amount of silver in each coin dropped by about 87%, and guess what happened to the prices. They rose by about 75%. Things got more and more expensive. Life got better for him. Of course, he was known for having the king's disease, gout, which people get from massive self-indulgence, orgies of food and drink. Therefore, life was very good in the king's court because he had created all of this fake cash that enriched him and his friends, but it was terrible for the peasants and the common people who actually did the work of the land. They got poorer and poorer as their money got more and more worthless.
That is the inflation tax, so this Prime Minister of ours teaches us nothing new. This is not a new concept. In fact, if we look throughout history on these matters of economics, we see that leaders make the same mistakes over and over again. As Kipling would say:
That the Dog returns to his Vomit and the Sow returns to her Mire, And the burnt Fool's bandaged finger goes wabbling back to the Fire—
Therefore, we get burned again and again by making the same mistakes of our predecessors.
That brings me back to the Bank of Canada. The bank recently has been talking about all kinds of different things that have nothing to do with its mandate. For example, the former governor Stephen Poloz regularly commented on things that were completely out of his domain, inappropriately commenting on social policy when he proposed government takeover of child care. That is well out of the realm of the Bank of Canada's mandate. We have seen recent comments by governors and deputy governors of the Bank of Canada on everything from fiscal policy to environmental policy to a whole plethora of things that find their place nowhere within the bank's mandate. Even on the bank's website, Paul Beaudry, a deputy governor, talks about, in his words, “the great reset”, whatever that means. He believes this is part of the Bank of Canada's mandate, and of course it is not.
The worry is that the bank will simply become a political instrument for the agenda of a left-wing government, trying to do undemocratically what it could never convince Canadians to support democratically.
Canadians would never support a massive tax increase on the poor in order to fund the ideological fantasies and the enrichment of the super rich and the super elite. That is why we in Parliament have to reclaim our powers, the powers that have been invested in this chamber and in its predecessor chambers in the mother Parliament for 800 years: that governments, including central banks, cannot tax what the commoners have not approved; that the principle of responsible government remains; that Parliament reigns supreme; that citizen goes before state and commoner ahead of Crown.
View Tracy Gray Profile
CPC (BC)
View Tracy Gray Profile
2021-06-22 16:36 [p.8994]
Madam Speaker, I thank my colleague for his very informative and well-researched intervention on inflation. From meeting with manufacturers, importers and retailers, I have heard a lot about a number of new regulatory burdens that have either just come into effect or are about to come into effect and concerns about pricing, product availability and Canada's competitiveness.
I am wondering if the member could speak to how regulatory burdens may affect inflation.
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2021-06-22 16:37 [p.8994]
Madam Speaker, they can affect it very drastically. For example, I think the member has been looking into new appliance regulations that would make the appliances that Canadians buy far more expensive than the same appliances that are available south of the border, even though we live in an integrated market for those same products.
By the way, big corporations do not pay the cost of regulations; they pass it all on to their workers in reduced wages and on to consumers in higher prices. In fact, many of the biggest companies love regulation, because they can use it to shut out their competition by making it more and more difficult and more and more expensive for other entrepreneurs to get into the field.
What does that mean? Less competition always means higher prices for consumers and lower wages and fewer career opportunities for workers.
View Sébastien Lemire Profile
BQ (QC)
Madam Speaker, I enjoyed the historical part of the speech made by my colleague from Carleton, the part where he spoke about the value of currency under Henry IV, if I remember correctly.
I see that my colleague has some appreciation for history. Sovereignists were teased a lot about the “Lévesque dollar”, which was supposedly worth 70 cents. However, in recent decades, there were times when we would happily have taken that 70-cent dollar.
I would like to know what my colleague thinks about today’s “Trudeau dollar”. Can he tell me how much the “Poilievre dollar” would be worth if he were minister of finance?
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2021-06-22 16:39 [p.8994]
Madam Speaker, the member did not use my name. He simply mentioned the official name of the currency that I am going to create in the future. If the Bloc Québécois opposes that currency, then I will be able to say that it was a Bloc member who suggested that the Conservatives create a currency bearing my last name. It would be a currency that maintains its value, that workers would appreciate and that would enable them to buy more. That is the best idea I have ever heard here in the House.
View Bob Saroya Profile
CPC (ON)
View Bob Saroya Profile
2021-06-22 16:40 [p.8994]
Madam Speaker, it is my pleasure to rise today to talk about Bill C-30, the budget implementation act.
I realize this will probably be my last speech before an election. Before I get to the budget, I would like to acknowledge that it is an honour to represent the people of Markham—Unionville in Parliament. When I first came to this country over 45 years ago, I barely spoke English and never imagined representing my community on the town council, let alone in Parliament. I want to thank my community for its continued support.
COVID-19 will be an event people will talk about for generations. A virus ground the whole world to a halt and killed millions. No government was truly prepared, and politicians were put in a position where they needed to make important calls quickly instead of waiting years to address the problem. In come countries, politicians rose to the occasion and worked with one another to help their country overcome the pandemic. In other countries, governments kept people in the dark about the pandemic, denied there was a problem and turned every decision into political showmanship. It is clear that Canada was in the second category.
In this budget, the Liberal government is planning to double down on many of its terrible ideas. Instead of focusing on what Canadians need to get back on their feet, the Liberals are looking for ways to spend on their priorities. Of course, those priorities always include making Liberal insiders a boatload of money. So far, the consultant and lobbyist business has never been better for people with a connection to the Prime Minister. The Liberals' priorities are adding billions of dollars to the debt that we cannot afford.
We know that when Liberal MPs defend their Prime Minister's spending spree, they like to slip into technical terms that make it hard to follow. I am going to try to do the opposite and make my points easy to follow.
When I came to this country, I pinched every penny. I was an Indian teen with almost no English, and finding a job was not easy. Every dollar I spent mattered. I made a lot of tough decisions in those days about what I could go without. That meant a lot of cheese sandwiches.
When I started my family, I had to continue making tough decisions. We could not spend more money than we earned. I remember sitting down with my wife Roopa multiple times and deciding to save for the children's education or for rainy days rather than taking a vacation. For us, education was the most important thing. That education included teaching my children about budgeting.
I believe that the hard decisions I made with Roopa at the kitchen table paid off. My eldest child, Rohin, is a physician now, and I could not be more proud of his success. The savings I put aside when he was still a baby helped him afford his medical education. His wife Preoli is a dentist with a very similar story.
My other son, Tarun, went to university and now works in the provincial government. He also used what he learned in school in business. My daughter Shalin was recently accepted into a law program. All of these events proved to my wife and me that saving had been the right choice. We had gone without many of the things we wanted, but we had the money we needed when tuition was due for our children.
I know that Liberals hate it when Conservatives compare balancing the budget with balancing the household. The Liberals say that it is much more complicated than that. While the federal budget is more complicated, the basic facts remain the same.
When money is borrowed, someone is on the hook for it. That may come as a shock to some members of this House. Every time there is a vote in this House to spend money, I think about who pays. Years ago when people talked about the budget, they would say that the government should overspend in the bad years to stimulate the economy, and in the good years the government should pay off the debts. That way, the next time things took a turn for the worse, there would be money ready to stimulate the economy again.
The Liberal government has abandoned that way of thinking. It wants Canadians to believe that no government has to pay anything back, that through careful planning the government could juggle the debts forever and have all the benefits of overspending with none of the drawbacks. It is a terrible plan.
COVID-19 proved that governments need to have room to spend. Without government support, many Canadians would have been bankrupted by COVID-19. I know that even with some government support, many small businesses did not make it.
The pandemic has raised our debt to new heights. When we vote on spending money in Parliament, we need to remember that we must be ready for the next crisis. That means not spending more than we can afford now.
The Minister of Finance has said:
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.
That it would be “short-sighted of us not to make them” is an interesting statement. I wonder if the Minister of Finance can name a time when spending more than we have was short-sighted. The Liberal government seems to believe that more spending is always necessary. Just look at the promise the Prime Minister made in 2015: that the budget would be balanced in no time, with just a couple of small deficits and then smooth sailing. The promises of responsible spending have been nothing more than hollow words.
I am going to get back to who pays. Most Canadians probably do not realize how much Canada is paying for its borrowing. Even with low interest rates, it is well over $20 billion. The Prime Minister's plan to add more to our national debt than all previous prime ministers combined will grow the interest payments to new heights.
The Prime Minister told everyone that budgets balance themselves. If he is still under this belief, let me assure him that this is not the case. When we do nothing to tackle the debt and spending, things get worse. People are told to avoid these sorts of debt traps in their personal life. The Liberals think adding historically high debt is responsible. Their plan requires Canadians to think that debt is a problem far into the future, that Canadians will be okay with giving debt to the next generation. For me, that is unacceptable.
I came to this country for a better life. I knew this was a place where people could raise a family and have their children succeed. The last thing I would want to do is hand them a debt bomb that they and their children will need to deal with.
When I talk to Markham residents, I hear the same thing. People work very hard so that their children will have a better life than they have. They do not want to set up their children for hard times.
A debt crisis always ends in hard times with either tax hikes or cuts to services, or both. The new taxes in the budget are puny compared to the spending. To raise the money needed to put a dent in the debt, the Liberals would need to double some of these taxes every year.
Liberal tax hikes make it more unaffordable to support a family. Canadians cannot afford to pay more. Some people think inflation is a solution, but that is a mistake. It is a tax on everything, and it will make it even harder to borrow money.
The other option of cutting services has been done before. In the nineties, the Liberal government, in the middle of a debt crisis, went to the bank to borrow money, but no one was interested in lending it to them. To get their books in order, the Liberals took a chainsaw to government spending. One of the things they cut was the health care spending. The effects of those cuts are still felt to this day. Does anyone think health care in Canada can take another cut? I do not.
I was shocked, like many Canadians, that health care was not a huge part of this budget. Emergency rooms across the country were stretched to their limit over the past two years. Essential surgeries were put off because hospitals were COVID-19 hot spots. It takes a long time to deal with the backlog of the procedures.
The provinces need help from the federal government to address health care, but the Liberals do not seem to care. This mess can be fixed. The way to get ahead of the debt problem is to get the spending under control now. The government cannot kick this problem down the road.
This budget and plan for the future will create more problems and make life more difficult for Canadians in the future. That is why I will be voting against this budget.
View John Brassard Profile
CPC (ON)
View John Brassard Profile
2021-06-18 11:15 [p.8766]
Madam Speaker, many Canadians are on bended knees under the weight of crushing debt and a new reality of inflation, the levels of which have not been felt for generations. The cost of everything has gone up, but it is those who can least afford it who are paying the price.
Increases in groceries, gas, carbon taxes, housing and rental costs are cascading across communities in Canada, including in my community of Barrie—Innisfil, and it is causing many sleepless nights. Senior Elizabeth recently wrote me, “We now have to pick our food purchases very carefully, even local produce has taken a large jump.” This should not be happening in Canada
We need a government that understands that it will be the power of Canadian businesses, the people they employ, the products they produce in every region, in every sector of the economy, so Canadian businesses can compete here at home and around the world, and bring back investor confidence.
There is only one party that will secure the future, that will unify Canada and bring back hope, opportunity and prosperity for all Canadians, and that is Canada’s Conservatives.
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2021-06-18 13:13 [p.8788]
Mr. Speaker, I will continue the question of privilege that I began earlier.
As I have demonstrated, the government's decision to use printed money to pay its bills has driven up the cost of living for Canadians and increased inflation of key essentials, effectively creating the exact same conditions as a tax would on the population. Before we hear responses from the government, claiming that this money printing is for some purpose other than generating government funds for spending, let me quickly address the false pretext that the Bank of Canada and the government have ostensibly used to justify this money-printing bonanza.
First, the Bank of Canada told the finance committee in the spring of 2020 that the program of purchasing government debt was designed to restore order in credit and capital markets. In fairness to the bank, there was disorder in the markets at that narrow period of time, in March 2020, as the world was responding to the sudden shock of the COVID closures. The bank officials noted at the time that there was a large bid-ask spread in bond markets, which effectively means that sellers of bonds were asking significantly more than buyers were willing to pay and as a result these markets were seizing up, threatening the ability of governments to raise cash and for markets to function. That was the case in late March 2020, but it only lasted about 10 days. That bid-ask spread vanished by early April, at which point bond prices not only began trading freely on public markets but also began increasing at an extraordinary pace. The bond prices began to inflate as central banks in general, but our central bank in particular, began buying them at an unprecedented pace.
Furthermore, capital markets, while they did take a sudden drop in late March of that same year, had more than recovered by summer. In fact, today, our capital markets are higher than they have ever been. In fact, the Standard & Poor's TSX, which is the largest index of Canadian stocks, rose in market value above the size of our entire GDP for the first time in Canadian history and now stands somewhere around 125% of GDP, reaching record heights.
Furthermore, as I have demonstrated, mortgage issuances have reached records and they rose faster than ever before in our history. The amount of cash in people's and businesses' bank accounts has increased by $200 billion. In other words, the absence of liquidity or the seizing up of capital and credit markets can no longer be used as a justification to continue printing money and pumping it into the financial system. Now we have more cash circulating in markets, both credit and capital, than ever before and more liquidity in the hands of businesses and households than ever before. Therefore, the claim that money printing is just designed in order to protect the liquidity of capital and credit markets is demonstrably false.
Further evidence that it is false is the fact that the central bank has since changed its explanation for why it needed to continue printing money. It claimed then that it wanted to avoid disinflation or deflation. Apparently, they told us, this was the great risk that would result from COVID. However, as the evidence I have already presented demonstrates, there is no disinflation or deflation anywhere except perhaps in movie theatre and airplane tickets because people are effectively banned from buying either of them. Therefore, aside from those areas of the economy in which purchases are actually banned by local authorities for public health purposes, everything is actually increasing in price—
View Mark Gerretsen Profile
Lib. (ON)
Mr. Speaker, I rise on a point of order. The member has been on the same question of privilege now for about 50 minutes if we include the 45 minutes prior to today. If you listen to the content of what he is discussing, it has nothing to do with a question of privilege, which is what he originally raised at that time. More importantly, I think if you would consider in your ruling the fact that the earliest opportunity he had to continue this question of privilege was yesterday, he chose not to do it yesterday. That should give some indication, being that it was an opposition day, why he chose not to do it yesterday.
Therefore, I think it is clear that what is going on here is filibustering in order to prevent a discussion on government legislation. Indeed, the member is not contributing to a question of privilege, which is what is to be discussed right now. I understand you have given him latitude, I think that is fair, but he really has never come to discuss what the actual question of privilege is. Maybe you want to give him two or three more minutes to do exactly that, but then I think it is fair to use your powers as the Speaker to cut him off, to say you have heard what you have heard and have what you need and that you will come back with a ruling later.
View Gérard Deltell Profile
CPC (QC)
View Gérard Deltell Profile
2021-06-18 13:19 [p.8789]
Mr. Speaker, I rise on a point of order. There are three elements to consider when you make your decision on the question of privilege.
First, the member for Carleton respected the rules we have in this House of Commons when he raised his question of privilege two days ago and when he raised it again today, and he will conclude it today.
Second, the decision belongs to you and no one else. I know that you will make your decision, and I will respect that decision because you are the Speaker of the House and you have no lessons to take from both sides of the House. The decision is yours to make.
Third, as my colleague from Kingston and the Islands raised the issue of filibustering, I would remind him that his party is super efficient at filibustering, because in five parliamentary committees the Liberals spent 177 hours filibustering. We are peewees compared to them.
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2021-06-18 13:22 [p.8790]
Mr. Speaker, the Bank of Canada and the government have then claimed that the reason it must continue to expand the money supply, print cash and provide it to the government is to avoid deflation or disinflation, which they have identified as a great threat from COVID. However, as I was saying, there is no evidence that either of these threats have manifested themselves. Outside of sectors for which consumers are banned from spending their money, like airlines and movie theatres, effectively, there is inflation everywhere. In fact, as I said, inflation has now exceeded not only the 2% target of the Bank of Canada, but the 1% to 3% acceptable range for inflation. We are well out of the woods of any concern that we are going to plunge this year or anytime in the immediate future into a deflationary spiral. Therefore, that cannot be the justification.
Finally, the Bank of Canada has claimed that it is continuing to print money because unemployment remains high. It is true that unemployment is high, we are the second-highest unemployment region in the G7, but there is absolutely no evidence, historical or present, that printing money will do anything about that at all. Money printing has never created jobs and in fact, if the Bank of Canada were to look upon its own history in the 1970s when it began a similar program of money creation, the result was higher unemployment, unemployment that reached 12% and inflation that also reached 12% and then later interest rates to quell that inflation reaching 20%.
That was the stagnation crisis of the early 1980s that, I might add, left us with not just the worst economic situation since the Depression, but also the highest suicide rate among Canadians. In other words, fighting unemployment cannot be the justification for printing money. Quite the contrary, it makes no sense. Therefore, that leaves one explanation for the ongoing money printing, and that is that it is intended to fund government operations.
It is standard and customary for a member making a claim of a breach of privilege of this type to rely on expert witness evidence, that is to say, to rely on the scientists and others who know the facts, the way that they would testify as expert witnesses in a court of law. I will bring to your attention the views on this specific matter of the inflation tax of the most renowned economic scientists in the history of the world. I will start with a 1978 lecture from Nobel laureate economic scientist—
View Pierre Poilievre Profile
CPC (ON)
View Pierre Poilievre Profile
2021-06-18 13:26 [p.8790]
Mr. Speaker, I then address the third and final characteristic of a tax, which is that it is compulsory. This inflation tax is obviously compulsory. If people do not pay the inflation tax, they cannot buy food, which has gone up in price. They cannot buy housing, which has gone up in price. They cannot buy clothing, which has gone up in price. They cannot buy any of the essentials. The only way to avoid paying this inflation tax is to freeze, starve and go without the fuel to power one's life. In other words, other than to die, they have to pay the costs that are applied.
The only alternative to that would be to violate a federal statute in the Criminal Code that bans people from stealing because that is, again, the only way to get around paying the inflated prices the government has imposed upon people.
This inflation has all the three of the defining characteristics of a tax as provided in the Oxford English Dictionary: one, it raises money and is a levy for the government; two, it is paid by the people; and three, it is compulsory. It is all three of those things.
The tradition of requiring every tax increase that is imposed on the population to come before Parliament is one that dates back 800 years to the Magna Carta. It is probably the reason we have Parliament. The number one point of tension between the commoner and the king has always been the king's insatiable appetite for tax revenue and the commoners' desire to resist that appetite and protect the fruits of their labour.
If you were to rule that governments are allowed to do indirectly what they cannot do directly, that is to, for example, print money to fund their spending and pass on that cost through higher inflation to the population, you would effectively be setting a staggering precedent whereby governments can violate the principle of no taxation without representation by simply going around the parliamentary legislation process and raising taxes through the creation of cash.
I finally point out that the reason for this rule is not just to stop the government from taking too much, but to stop it from taking from the wrong places. This is a tax we would never approve because it falls heaviest on those with the least, and in a roundabout way by inflating their assets, improves the fortunes of those with the most.
In conclusion, if you were to put before the House a proposition to raise taxes on the poorest people in the land in order to increase the wealth of the most affluent people in the land and provide government with unlimited ability to spend, that would be voted down nearly unanimously because there is not a person in this chamber who would have the guts to go back to their constituents and defend such a voting decision.
That is precisely why we have this precedent. It is why we have the privilege and the duty to vote on every single tax increase. I ask you to uphold these ancient English liberties that make Parliament relevant and that make this country a place of the commoners, not of the Crown.
View Bruce Stanton Profile
CPC (ON)
View Bruce Stanton Profile
2021-06-18 13:30 [p.8791]
I thank the hon. member for Carleton for his comments on this matter. We will take it under advisement and get back to the House in due course.
It now being 1:30 p.m., the House will proceed to the consideration of Private Members' Business as listed on today's Order Paper.
Results: 1 - 15 of 129 | Page: 1 of 9

1
2
3
4
5
6
7
8
9
>
>|
Export As: XML CSV RSS

For more data options, please see Open Data