Mr. Chair, what is the debt?
An Act to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy)
This bill was last introduced in the 43rd Parliament, 2nd Session, which ended in August 2021.
This bill was last introduced in the 43rd Parliament, 2nd Session, which ended in August 2021.
Chrystia Freeland Liberal
This bill has received Royal Assent and is now law.
This is from the published bill.
This enactment amends the Income Tax Act to revise the eligibility criteria, as well as the level of subsidization, under the Canada Emergency Wage Subsidy (CEWS) as part of the response to the coronavirus disease 2019. It also extends the CEWS to June 30, 2021. The enactment further amends the Income Tax Act to introduce the Canada Emergency Rent Subsidy (CERS) in order to support those hardest hit by the coronavirus disease 2019. This subsidy provides relief in respect of rent and interest on debt obligations incurred to acquire real property used by businesses, charities and not-for-profit organizations in the course of their businesses or other activities. The rent subsidy is effective as of September 27, 2020.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, it was $343.2 billion as of the fiscal snapshot. There are no new numbers tonight.
Pierre Poilievre Conservative Carleton, ON
Mr. Chair, I want to clarify for the finance minister that there is a difference between debt and deficits. I asked for the debt. Is she sure the debt is just $300 and some-odd billion?
Chrystia Freeland Liberal University—Rosedale, ON
Yes, Mr. Chair, and I want to be clear with members. I am going to refer to numbers from the snapshot, not new numbers tonight. I will tell the member more with the next question.
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, I sure do. It was projected in the fiscal snapshot to be $1.060 trillion.
Pierre Poilievre Conservative Carleton, ON
Mr. Chair, I think that number is hard for any of us to say, in fairness, so I will be charitable on that point.
Regarding all the new debt the government is adding, will it be repaid before interest rates rise?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, as I said in my speech last week, we are extending the maturities of our debt to lock in current interest rates, which are at a 100-year low, our debt service charges.
Pierre Poilievre Conservative Carleton, ON
That is perfect, Mr. Chair.
What percentage of the new debt the government has added since March has been locked in for more than five years?
Chrystia Freeland Liberal University—Rosedale, ON
As I said, Mr. Chair, I am going to be offering detailed projections and numbers in my economic update later on this fall, not tonight, but I will cite the—
Chrystia Freeland Liberal University—Rosedale, ON
As I said, Mr. Chair, the finance minister's numbers on these issues are very sensitive and I am not going to—
Pierre Poilievre Conservative Carleton, ON
Mr. Chair, it is actually not sensitive at all. It is published by the Bank of Canada. If the minister had just gone to the Bank of Canada's website, she would know that less than 10% of the new debt the government has borrowed is locked in for more than five years. The other 91% is locked in for shorter terms.
Why did the minister tell people that she was locking in low rates when, in fact, 91% of the debt is on short-term maturities?
