Mr. Speaker, as always, it is an honour to rise in this House on behalf of my constituents of Edmonton Mill Woods.
In the lead-up to this budget, the longest lead-up ever, as we went over two years without a budget, there were dozens of news stories and trial balloons talking about how innovative this budget was going to be. We heard time and again about how this budget would be a stepping stone for the Liberal government to build back better, whatever that means. Instead, at 739 pages and nearly a quarter of a million words, the longest budget in the history of our great country is also the greatest disappointment.
There is no plan to deal with inflation. There is no plan to make the dream of home ownership more attainable for Canadians. There is no plan to create new jobs and economic opportunities for families and young people across this country. Instead, we are left with a budget that says so much, proposes so little, and leaves Canadian jobs, productivity, and economic growth behind.
Let me start by looking at the full picture. In my riding of Edmonton Mill Woods and right across Canada, there are countless families and businesses on the brink of losing everything. The jobs numbers that came out earlier this month revealed that another 207,000 people across Canada had to come home and tell their family and loved ones one of the most difficult things to hear, that they had lost their job.
To be clear, Alberta’s economic problems didn’t just start because of this pandemic. The Liberals' Bill C-69, which many people called the “no more pipelines” bill; Bill C-48, the tanker ban; and general disregard for the energy sector have driven away billions of dollars of investment and, with it, thousands of Canadian jobs. The government has failed to produce a plan for one of Canada’s largest economic sectors, the energy sector.
There are some things in this budget that we and our Conservative team are in favour of. For so many Canadians who continue to struggle throughout this pandemic, the budget does have the extension of emergency programs that our Conservative team supports, measures like the wage subsidy, rent subsidy and other recovery benefits, but there are still issues that remain with some of these programs. My office has heard from so many Canadians. It has heard repeatedly from small businesses that opened just before the pandemic or during the pandemic, which have been left behind by these wage subsidy and rent subsidy programs. When asked about it, the Liberals continue to repeat what everybody already knows, that small businesses are the backbone of our community, yet they continue to do nothing to rectify this issue, leaving many small businesses, and the Canadians employed by them, behind.
One thing that I know would bring jobs to Alberta and to Canadians from coast to coast is pipelines. Our natural resources sector accounts for nearly two million jobs and nearly one-fifth of Canada’s GDP. There are mentions of pipelines in this budget. They talk about a vaccine pipeline, a talent pipeline, an innovation pipeline and a PPE pipeline, but no mention of a pipeline to carry our natural resources. Once again, the Liberal government continues to ignore our energy sector, which will be instrumental in our economic recovery coming out of this pandemic. Instead, we continue to import oil from the likes of Saudi Arabia and Venezuela, where there are much lower environmental standards and horrific human rights records. Talk about a failure.
Perhaps the biggest failure, and the focus of my speech today, is the government’s failure to take inflation seriously. Canada’s inflation rate in April was 0.6%, or roughly 7% on an annualized basis. For the average family in my riding of Edmonton Mill Woods, that means the inflation tax is going to take nearly $6,500 out of their pocket this year. This has been seen right across the board, as Canadian consumer prices are climbing at the fastest pace in a decade. The average family will pay nearly $700 more in groceries this year because of inflation. Everything from meat and vegetables to cereals and bread has increased by about 5%. Gas prices are continuing to increase dramatically. As Bloomberg reported last week, they have increased more than 60% in a year.
Perhaps the most explicit case I can make here is with lumber prices, which have increased by 300% over the last year. As Kevin Lee, the CEO of the Canadian Home Builders' Association, points out, this drastic rise in lumber costs will add tens of thousands of dollars to the average price of a home.
This leads me to another area of failure in this budget, which is the lack of any semblance of a plan to address overwhelming housing affordability issues in Canada, which has pushed the dream of home ownership further out of reach for far too many Canadians. Prices across Canada are skyrocketing, with young families who were saving for their first home at the beginning of this pandemic even further behind than when they started.
This has led to feelings of hopelessness. A poll from the Royal Bank of Canada released last month revealed that 36% of non-homeowners under the age of 40 have given up on ever buying a home and 62% of respondents said they expect the majority of people will be priced out of the market over the next decade.
What is the government doing to address this concern of people being left out of the market? The hallmark of this budget’s efforts on housing affordability is a 1% tax on foreign owners of vacant housing, which will simply be seen as a very minor inconvenience for wealthy foreign investors who have seen their investments appreciate by 42% this past year. This will not solve the problem at all. Instead, the current government should be focused on the root of the problem, which is the shortage of supply right across Canada.
As a recent Scotiabank report points out, Canada has the lowest number of housing units per capita of any G7 country. If Canada set the modest goal of simply catching up to the United States, Canadian builders would have to complete an extra 100,000 homes. To catch up to the U.K., it would require an extra 250,000 homes. To put these gaps in perspective, we have had an average of 188,000 home completions in the last 10 years.
I believe this serves as a perfect microcosm of the government’s philosophy. When it identifies a problem, it does not address the root cause. Instead, it takes a small reactive step, creates a new government agency or program for it, and then dumps millions, if not billions, into it.
The budget introduces another $101 billion in new spending, pushing our debt-to-GDP ratio to over 50% over the next few years. What are we getting out of this increased spending and debt? The budget predicts that the growth rate will slow steadily starting in 2022, all the way down to 1.7% growth in 2025.
As Robert Asselin, the former policy and budget director to Bill Morneau and policy advisor to the Prime Minister, said of this budget, “it is hard to find a coherent growth plan.... [S]pending close to a trillion dollars [and] not moving the needle on…growth would be the worst possible legacy of this budget.” While the budget is entitled, “A Recovery Plan for Jobs, Growth, and Resilience”, there seems to be much concern about whether or not it will deliver on jobs or growth.
The budget has no investments to address the structural problems that have plagued productivity and our ability to compete on the global stage. There is no plan to address the unprecedented level of investment that is fleeing Canada. There is no plan for regulatory and tax reform to help us win on the global stage. There is no comprehensive innovation strategy to ensure Canadian tech start-ups keep their job-creating investments here at home.
This budget is not meant for the growth of the economy. I believe Canadians are looking for hope that things will soon get better and they will still have a bright future to look forward to. They want their jobs and small businesses back. They want their lives and communities back. They want the hope of being able to afford a house. Simply put, they want to return to normal and live the Canadian dream.
This budget fails to deliver. There is no growth plan. It is not meant for the people of Edmonton Mill Woods, Alberta or our future generations. It is a failure. That is why we will not be supporting it.