Bill C-234

An Act to amend the Greenhouse Gas Pollution Pricing Act

This enactment amends the Greenhouse Gas Pollution Pricing Act to expand the definition of eligible farming machinery and extend the exemption for qualifying farming fuel to marketable natural gas and propane.

Opposition Motion—Government's Economic Analysis on Carbon Pricing

[Michael Kram, Conservative, Regina—Wascana, SK]

Madam Speaker, I will start by saying that I will be sharing my time today with the hon. member for Portage—Lisgar.

I am pleased to have the opportunity to speak in favour today of a very reasonable motion that I believe members of Parliament from all parties should support, moved today by the leader of the official opposition.

When making any major decision, it is important to weigh the costs and the benefits. That is true in the private sector, true in life in general and especially true for politicians when we are deciding on government policy. That includes environmental policy, and the Liberals' carbon tax, their hallmark policy meant to address global warming and climate change, should be no exception.

When the Liberals introduced their carbon tax in 2019, it was set at $20 per tonne of CO2 equivalents, a little over 4¢ on a litre of gas. Since then, the Liberals have increased the carbon tax every year so that it now stands at $80 per tonne, about 18¢ per litre. The Liberals say that they will continue to increase the carbon tax every year for the rest of the decade until it reaches $170 per tonne, about 40¢ on a litre of gas.

To look at it another way, if the gas tank of a typical car holds about 50 litres of gas, that means that in 2030, the average Canadian will pay an extra $20 on a tank of gas each and every time he or she fills up the car at the gas station.

However, the carbon tax applies to so much more than just filling up one's tank with gas. It applies to home heating. It applies to heating of commercial businesses. It applies to heating of schools, hospitals and municipal buildings. It applies to farmers who have to heat their barns and dry their grain, which is why the Conservatives have been advocating for the passage of Bill C-234 to exempt farmers' grain drying and barn heating from the carbon tax so that these costs would not be passed on to consumers.

In fact last winter, Environment and Climate Change Canada was even going so far as to contact pizzeria and bagel shop owners about their wood-burning ovens, to see whether they should be subject to the carbon tax. Fortunately, it did not go through with the measure, but it shows just how wide-ranging and sweeping the Liberals' carbon tax has been on every aspect of Canadians' lives.

It seemed perfectly reasonable that, last April, the Parliamentary Budget Officer requested from Environment and Climate Change Canada its internal analysis of the economic impacts of the carbon tax. When Environment and Climate Change Canada responded last month, there was one sentence in the reply letter that was very troubling. It read, “The data the Department is providing contains unpublished information. As such, I request you to ensure that this information is used for your office’s internal purposes only and is not published or further distributed”.

I see no good reason for the government's analysis of the economic impacts of the carbon tax to be withheld from members of Parliament or from Canadians at large. If we as elected officials are responsible for making the best decisions possible for Canadians, if we are responsible for weighing the costs and the benefits of the policy, then it makes no sense for the costing analysis to be withheld.

This morning, because of today's motion, the Liberal government released at least part of the information. We now know, according to the government, that the carbon tax is costing the Canadian economy $20 billion per year, roughly $1,200 per household. I have to say that it is extremely frustrating that a government that once claimed to be transparent by default is still playing games and blocking access to important information.

Now that I have outlined some of the costs of the carbon tax, I think that it is fair for Canadians to ask, “What are the benefits?” The stated objective of the carbon tax is to prevent global warming and climate change, so this question has to be asked: “By how many degrees Celsius has global warming decreased as a result of Canada's carbon tax?” That question is fundamental to the whole issue. Is it half a degree Celsius? Is it 0.1°C? Is it 0.01°C? Canadians deserve to know what we are getting for that extra $20 on a tank of gas.

I would like to read a quote from the government's report entitled “How Pollution Pricing Reduces Emissions”, which was referred to in the department's response to the Parliamentary Budget Officer. The first line of the report reads, “Every day, we see the increasing impacts of climate change and they’re costing Canadians more and more.”

The Economy

[Eric Duncan, Conservative, Stormont—Dundas—South Glengarry, ON]

Mr. Speaker, I want to follow up tonight on my previous question to the government about the skyrocketing use of food banks in this country. It is going in the wrong direction. We have seen the national statistics, but tonight I want to provide an update on the local scene, which is not much better.

Let us remember what Food Banks Canada said in its recent report: Two million Canadians are using a food bank per month. That was last year. Looking ahead, it is expecting one million more visits to food banks in 2024. There are numerous food banks in every part of this country that are not only sharing heartbreaking stories of Canadians, many for the first time going to food banks for help, but are also talking about the increased pressure and demand on their staff, volunteers and suppliers to provide such a basic necessity to Canadians in their time of need. We know that this year alone, with inflation continuing to be a problem, numbers building on even worse numbers from previous years, the average Canadian family will be paying $700 more on their grocery bill.

I am grateful every single day for the not-for-profits that are working in my community of Stormont—Dundas—South Glengarry, the city of Cornwall and Akwesasne helping those people who need some support. There was a local group that supplemented many of the national reports that paint the picture of how food insecurity is not just an issue in big cities but is also hurting our part of eastern Ontario. The “Voices United II” report by Food Banks United used data created by the Agapè Centre in Cornwall; the Community Food Share in Winchester, Morrisburg and Finch; the House of Lazarus in Mountain and Ingleside; and the St. Vincent de Paul Society in Alexandria.

Here are the statistics from that report: Forty per cent of survey respondents in the area are personally hungry and do not have enough food, and 38% are missing meals in order to pay their hydro, heat or rent instead. Thirty-three per cent of food bank clients in our area are going whole days every month without eating, and 34% of food bank clients in eastern Ontario are children.

The scary part is the growing number of people who are employed, working hard to make a living and make ends meet; there is a 37% increase over just the last year in the number of people who are employed and still cannot make ends meet. Their rent or mortgage, food bill, or whatever it may be, is becoming too much to bear.

We are seeing a correlation revolving around the carbon tax. The more that the government increases the carbon tax, the farther it is putting people behind, and the more people are using food banks. According to the Parliamentary Budget Officer, if Bill C-234 passes, the common-sense conservative bill, it would save Canadian farmers $1 billion in carbon taxes in the coming years, with zero rebates.

No one believes the Liberal and NDP math saying we could put $1 billion on the agricultural industry and not have that passed along to consumers. Putting more carbon tax on truckers, grocery stores and small businesses, without the rebate, cannot help but drive up costs.

When will the government get with the program and understand that the carbon tax is hurting families and driving them to food banks? It should axe the tax, provide some relief and finally bring down food bank use and food prices in this country.

Carbon Pricing

[Richard Lehoux, Conservative, Beauce, QC]

Mr. Speaker, after nine years, the “Liberal Bloc” continues to make life more expensive for Canadian farmers and families. By allowing the Senate to gut Bill C‑234, it is contributing to the demise of a generation of farmers. The Bloc Québécois and the Prime Minister are not worth the cost. Food prices are at an all-time high, and food bank use in Beauce has increased by 25% in the past six months.

Will the government commit today to voting for what Canadians want and passing Bill C‑234 in its original form?

[Steven MacKinnon, Liberal, Leader of the Government in the House of Commons]

Mr. Speaker, Canadian farmers know, but the member apparently does not, that 95% of all farm fuels are already exempt from the price on pollution.

As for Bill C-234 and the very tortuous parliamentary process that party has submitted that bill to, I am glad that my counterpart, the Conservative House leader, has finally relented and allowed the bill to be debated today. However, we will see how the opposition determines to go forward on that bill, which it presented and is responsible for.

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, that is another fairy tale from a Liberal who clearly does not understand food production.

The government cannot deny that paying $25,000 in a single month in carbon tax is punishing this farmer. The NDP-Liberals live in la-la land if they do not think that these costs get passed on to Canadian families.

When will the government leave fantasy land, stop hurting our farmers and pass Bill C-234 in its original form?

[Lianne Rood, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, after nine years, the Prime Minister is not worth the cost. Canadians are struggling to afford food and the NDP-Liberal government does not care.

From its carbon tax to red tape to its ban on plastics for produce, every single bad policy the government announces hurts our farmers and makes food more expensive. One farmer paid over $25,000 in a single month in carbon tax alone. Farmers cannot absorb these costs, and, no, they do not get a rebate cheque.

When will the NDP-Liberals get out of the way and pass Bill C-234 in its original form?

Greenhouse Gas Pollution Pricing Act

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Mr. Speaker, in Canada, we have been blessed with incredible natural resources and abundance. From sea to sea to sea, we have been so richly endowed with our land, which produces food and feeds not only Canadians, but the entire world. Our agricultural sector is world-class in sustainability and efficient farming practices, and it is the envy of the entire world.

Our farmers and agricultural sector are essential to our national prosperity. However, examining the government's policies over the last nine years, so many farmers have written to me and have asked me a simple question: “Is the government trying to put us out of business as farmers?” With escalating carbon taxes, restrictive punitive regulations, onerous red tape and constantly shifting fertilizer rules, many farmers are asking if the Liberal government's objective is to destroy their farming business to advance its ideological goals.

It is clear that farmers are paying the price of the punitive carbon tax, and Canadians are also seeing skyrocketing increases in their grocery bills. What this government has failed to understand is that when we tax the farmer who grows the food and we tax the trucker who ships the food, we are essentially taxing the Canadians who buy the food. That is just basic economics. That is why Bill C-234 is back in the House and presented again. It would provide a needed carve-out for farmers from the Liberal carbon tax. This carve-out would ensure that farmers are not punished for drying grain, heating barns and essential farm operations.

The Parliamentary Budget Officer has reported that carbon tax on propane and natural gas used for greenhouses, heating and cooling livestock barns, and drying grain will cost farmers nearly $1 billion by 2030. In Ontario alone, with the April 1 carbon tax increase, farmers will pay $53 million in carbon taxes over the next year. By 2030, they will have paid $566 million in increased carbon taxes. This is just not affordable, nor is it sustainable.

Bill C-234, in its original form, would ensure that $1-billion worth of tax savings would go back into the agricultural sector so that farmers could continue to produce the food that feeds Canadians. Let us be clear, the amendments made by the Senate essentially gutted the original bill, and there is no point to this bill if these amendments are allowed to stand.

There is no evidence put forth on an environmental basis that would support not giving a carve-out to farmers. The Liberals have always defended this ideological tax by saying that, without it, carbon tax emissions will continue to go up, global temperatures will rise and Canada will burn without the carbon tax. Yet, they fail to mention that the Canadian agricultural sector already leads the world in sustainable farming practices. If this government believes that its carbon tax is working, why does it not have measures? Why does it not have a means to measure the impact of this tax on greenhouse gas reductions? Let us not forget that the whole point of this carbon tax is to reduce carbon. How can farmers and Canadians trust this government when the Liberals do not even believe in the efficacy of their own carbon tax policies? They have no means of measuring how efficient the carbon tax is at actually reducing carbon.

The reality is that the Liberal policies have directly contributed to food insecurity in Canada. Across our nation, even though we should have some of the lowest food prices, we are seeing outrageous costs for food, and it is because of the carbon tax on the farmers. Today, in Canada, we are witnessing one in four Canadians skipping meals just to get by. We are seeing families paying $700 more for food this year than they did in 2023. The unfortunate situation is that two million Canadians are actually accessing food banks every single month. This is atrocious.

In Haldimand—Norfolk, the community where I reside, the health unit came out with a report earlier this year to warn that a growing number of residents do not have enough money to buy healthy food for a healthy diet. I will quote the report. It said, “incomes are not enough to cover even basic expenses”.

Despite the suffering of Canadians, the government continues to hike the carbon tax every single year. There is no common sense in that, and there is certainly no compassion. If the Liberal government refuses to axe the carbon tax, at the very least, it must consider supporting the proposal to reject the Senate amendments to Bill C-234. The government must pass the important legislation, in its original form, so that we can get back to supporting farmers and families. Then, farmers can once again feed Canadians. That is what the bill is about.

We know that the Liberals could do this tomorrow if they had the political will. They have done it already. A few short months ago, the Liberals announced a carve-out for home heating oil. They know that most people who heat their homes with oil have no viable alternatives, so to tax them would be burdensome and completely wrong. Farmers face the same situation, and they are in desperate need of this carve-out.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Mr. Speaker, it is actually a bit of a trip down nostalgia lane for me when we start talking about Bill C-234 because one of the first things I did when I became elected in 2019 was bring forward private member's bill, Bill C-206. Bill C-206 was in many ways a precursor to Bill C-234. I remember initially coming here after being elected and I really did not understand the process of the private member's bill. A little bit of a humorous story is that my staffer came to me and told me that I had won the lottery. I wondered, “What lottery?” It was the private members' bills lottery. For those who do not know, the private members' bills are drawn and I think we were number 16.

We went through a significant significant consultation process because we wanted to make sure we made the most of this opportunity. We talked to stakeholders and constituents, to people far and wide, about what we could possibly bring forward that would have the most beneficial impact for the people of Northumberland—Peterborough South as well as Canada.

We were really taken by a conversation we had with a number of stakeholder organizations and a farmer and a great man, Mr. Sid Atkinson, who has since, unfortunately, passed away. He told us of the challenges that farmers were having with respect to the cost of grain drying and other expenses of the carbon tax. He made a very strong case and I will attempt to repeat it, though probably not as eloquently as Mr. Atkinson did. He told the story of the struggles that farmers were often having. Farmers are, after all, price takers; in many cases, they do not get to set their own prices. Prices are set either by exchanges in far-off lands or by large grocery stores here in Canada, so whatever price farmers have, they have to make it work. One of the new expenses they were facing was, of course, the carbon tax. Mr. Atkinson then went on to say, “I've lived on this farm and we've been on this farm for generations, so of course we care about the land, we care about climate change, but we also have to be fiscally responsible as well.” Bill C-234 would not do either because the way it is written right now, dirtier fuels, gasoline and diesel, would be exempted, but cleaner ones such as natural gas and propane would not.

Back then, in 2019, I had the naïveté to believe that this was a mistake; that I would bring this to the Liberal government and the members would say, “Of course, we have made an error here” and ask, “Why would we exempt dirtier fuels like diesel and gasoline and instead tax those cleaner fuels, natural gas and propane?” Particularly natural gas has been pointed to by many, including environmental activists, as an excellent option as a transitional fuel because it is much cleaner than fuels such as coal and other fuels.

Therefore, we brought this Bill C-206 to the House and I was very pleased at the time that my colleagues from both the Bloc Québécois and the New Democratic Party supported that. At the time, we even had the support of the Green Party, so that was fantastic, because they saw this as not necessarily a fight over the carbon tax, though Conservatives are pleased to have that argument, particularly in an election, but those members saw it as just a common-sense provision that was just trying to give farmers equal access.

Along the trail, we have actually had a couple of Liberal supporters. At the time, the member for Glengarry—Prescott—Russell was a supporter of the bill and actually voted against his party and supported this. We had a consensus of support and we actually were moving along. We got it through second reading, made it through committee and got all the way to the Senate. Unfortunately, it was the summer when the Prime Minister called the unnecessary $600-million adventure, which he called an “election”, to leave us in exactly the same spot we were in terms of the number of representatives. I should say, though, that I am pleased that we were able to be joined by the great member for Peterborough—Kawartha as well as the member for Bay of Quinte, which is tremendous. That $600-million cost unfortunately ended our debate and ended Bill C-206.

However, I was so pleased to see the member for Huron—Bruce take up the mantle and actually improve Bill C-206 with Bill C-234. Bill C-234, once again, received support from the majority of the members of the House, made it all the way from second reading to third reading to the Senate, where, unfortunately, and at least not to my recent recollection, there was an unprecedented all-out push by the Prime Minister and the Minister of Environment to get this bill amended. Let us call a spade a spade here. The bill was not amended in an effort to improve it, but so that it would not pass through the Senate and receive royal assent. When a bill is amended at the Senate, it has to come back to this place. At that point, the government has the ability to push it back and, ultimately, defeat it through the use of time, if not time alone. Despite the fact this bill, at least initially, had the support of enough senators, with the all-out pressure of the Minister of Environment and the Prime Minister, it was amended in a very unfortunate way, because it removed barn heating as well as greenhouses.

Of course, in Northumberland—Peterborough South, we have some of the best farmers, the best farms and the best farmland in all the country. I can tell members that, from numerous discussions with farmers in our riding, it is costing them thousands of dollars in barn heating and carbon tax. The thing is, as was mentioned here, there is no rebate for farmers on this tens of thousands of dollars. The reality is that, oftentimes, it is either money that these farmers have to directly give up or it gets pushed on down to the consumer. Ultimately, if the price of eggs, milk or cereal goes up, the millionaires, billionaires and wealthy individuals of this world will be okay, but it is the most vulnerable who will hurt.

I might add that our rural communities are really challenged out here in Northumberland—Peterborough South. I know the member for York—Simcoe has talked numerous times about the economic challenges that his community is facing. What is wild is the way the Liberals have even done the calculations for the rebate, because those folks who are the most vulnerable are paying these tremendously high costs and often do not even get the benefit of the rural top-up. I have been to the member's riding. It is a beautiful place. It may not be quite as beautiful as Northumberland—Peterborough South, but it is a beautiful place. It is the soup and salad capital of Canada and it is facing these costs without the benefit of the rural top-up. I encourage anyone to drive down there. If they do not think that certainly parts of it, if not the majority of it, are rural, they certainly have not been to the beautiful riding of York—Simcoe.

To bring this to a conclusion, the facts are in and the judgment is in. When we take into account the economic and fiscal impacts, the Parliamentary Budget Officer has said unequivocally, and it is right in his report, that the majority of Canadians will face a net loss. That is the reality. Those are the numbers. If anyone had any doubt about that, that doubt dissipated at the finance committee last week when the member for Whitby asked the PBO how he knew that his measure of the economic impact of the carbon tax was correct. He said that, because he had seen the homework and the federal government's analysis, it was correct based on that.

Therefore, we are calling for the end of the carbon tax cover-up. If the Liberals truly believe their own misinformation that the carbon tax is not creating a net loss and making life more unaffordable for Canadians, then they should just release the report.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, I would just like to point out the disrespect shown by the Finance Minister, who could have tabled her notice in the period between two speeches. I think that is the least she could have done. I myself did so in the past, when I asked the member of Winnipeg-North if he would mind if I interrupted him during his speech. He consented. I think what the Finance Minister just did, which is to interrupt a member right in the middle of his remarks, is insulting, especially when every 10 minutes there is an opportunity to speak without interrupting anyone. I just wanted to point this out. I hope ministers will take this into account during future interventions and will refrain from such flagrantly disrespectful behaviour. There is no need whatsoever for this.

This government's lack of respect toward Canadians, however, is by no means surprising. We saw it with Bill C‑234, where amendments were brought by the Senate to amend legislation that had been duly voted on and adopted here in the House. We are talking about independent senators who were appointed by the Prime Minister and who do the work of the Prime Minister when he is unable to do things properly in this chamber. That is what happened.

At the very start of my speech, I was saying that time is of the essence for producers, because their situation is extremely difficult. After nine years under this Prime Minister, they cannot take it anymore. This Prime Minister is simply not worth the cost of taxes. Canadians do not have to take my word for it. They can read it in an article published in Le journal de Montréal about a survey of the Union des producteurs agricoles, entitled “One in five farms unable to pay their debts: a heartfelt plea from farmers”. The article says that farmers are at the end of their rope. They can no longer deal with the vagaries of weather, the interest rate explosion and the high cost of transportation—because the carbon tax does indeed add a bit to the high cost of transportation—that are preventing them from competing on a level playing field with Mexican vegetables being sold at a lower price in stores.

Think about it. It costs less to buy vegetables grown in Mexico, with all the gas and diesel it takes to get them here, than to buy vegetables produced here in Canada. It makes no sense, and the Liberals, and unfortunately the Bloc Québécois, encourage and support it. We do not understand why the Bloc Québécois did a 180 on the important issue of protecting Quebec's agricultural producers.

I will quote one agricultural producer. Philippe Leguerrier, a carrot producer in Blainville, said that he has not paid himself a salary since December. That is serious. When the people who produce food and feed Canadians can no longer pay themselves for their work, that is a sign that something is wrong with the system. Because of that, Canadians are having a harder and harder time feeding themselves. We saw that in the food banks, with 30%, 40% or 50% increases in recent years and long lines outside. Some 900,000 Quebeckers visit a food bank every month because they can no longer pay for their groceries, a direct consequence of this Liberal Bloc government's decisions, of its desire and its ideological determination to impose a carbon tax on pretty much everything.

Of course, the Bloc Québécois will say that the carbon tax does not apply to Quebec. The government still wants to drastically increase it, and not in Quebec. Everywhere else the carbon tax applies, everywhere else truckers who produce these vegetables have to export them to Quebec, they will have to pay more. Who, in the end, will be footing the bill? Obviously Quebeckers, families and workers who can no longer make ends meet at the end of the month. Clearly, with the sort of coalition it has formed with the Bloc Québécois the Liberal government has simply stopped supporting farmers.

As I mentioned, this bill is supported by every stakeholder in the agriculture sector. In committee, my colleague from Beauce had the opportunity to talk to groups from every region of the country and Quebec, and he was forced to admit that most if not all the people he spoke to are against the Senate's amendments to Bill C‑234. In fact, this morning we received a statement from the Canadian Federation of Independent Business begging members to reject the Senate amendments to Bill C‑234.

Why? It is because farmers are against the amendments proposed by the Senate. These amendments were imposed by unelected senators against the will of elected members of the House of Commons. A total of 81% of farmers say that they are against the amendments and 80% of them believe that these amendments will make the bill less effective for their business. They believe that this bill is essential to lower costs for farmers.

The agricultural industry needs a break on the carbon tax: 88% of farmers said that the carbon tax exemption on natural gas and propane used for drying grain and heating and cooling barns would be useful for their business.

That would enable them to do more and to save their farm and their business. We are talking about more than just businesses. We are talking about a way of life. Farming is a way of life in the regions of Quebec. It is a way of life in small towns. It is a way of life in communities in Plessisville, Laurierville, Thetford Mines and Beauce. Entire communities are currently wondering how they will be able to continue their primary activity, which is farming the land to feed Quebeckers and Canadians. That is where things stand right now.

Just so people understand, let us recall that this bill was sent to the Senate. It was totally gutted. Building heating was completely removed. The time allocated to the exemption for grain drying was slashed to three years. It was just pushed back. They think we will be able to replace propane and natural gas within the next three years. No expert says this will be possible.

I am about to tell the Bloc Québécois and Liberal members something that may be a secret to them. I do not think they know this, but winters in Canada and Quebec are cold—very cold, even. Although energy is needed to heat barns and dry grain, the Bloc Québécois members and the Liberals think it is a good idea to continually hike taxes. Remember, the Bloc Québécois has said repeatedly it wants to radically increase taxes. This applies to farmers too. We do not understand why, on the one hand, the Bloc Québécois claims to defend farmers, but, on the other, acts to undermine them by supporting tax hikes and these Senate amendments. It is unacceptable and incomprehensible.

My colleague's committee heard from several farmers and numerous technology specialists who were very clear. There are no viable alternatives to propane and natural gas for drying grain now, and there will not be any within the next three years, period.

A comment we too often hear from the Liberals and Bloc Québécois members, as I said, is that the tax does not apply to Quebec. This is false. We import most of our propane from Sarnia, Ontario. If we buy it in Ontario, where the carbon tax applies, we pay the carbon tax when it is imported. It is a fact, that is the math. Already, something is not quite right in the Bloc Québécois's discourse. We also pay the carbon tax indirectly when we pay for imported products delivered to grocery stories.

Let me quote again from the article in Le Journal de Montréal to illustrate how, when the government taxes the farmers who produce the food, the truckers who transport it and the grocers who sell it, prices become unaffordable:

Today, the price of fuel and rising wages are hurting farmers like Philippe Leguerrier more and more. Without his wife's salary to fall back on, it would be hard to make ends meet.

In closing, I will quote my colleague from Beauce:

Canadian farmers are stewards of the land. They are very concerned about their animals and the environment. They work so hard to feed our families and support our economy.

These farmers need support from members of the House of Commons and they need us to stand against the Senate amendments and pass Bill C‑234 in its original form as quickly as possible.

The House resumed consideration of the motion in relation to the amendments made by the Senate to Bill C‑234, An Act to amend the Greenhouse Gas Pollution Pricing Act.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Mr. Speaker, I implore members of the House to reject the Senate amendments to Bill C‑234.

The subject is simple. It is imperative that we block these amendments and get back to Bill C‑234 in its original form as quickly as possible. This is an emergency. The situation facing producers, farmers—

[Larry Maguire, Conservative, Brandon—Souris, MB]

Mr. Speaker, it is an honour to rise in the House today to address the critical issue affecting not just farmers in Westman, but every farmer across our great nation, which is the impact of the Liberal carbon tax.

The carbon tax is not just an environment plan, like the Liberals tried to sell it for many years. It is a tax grab that punishes our livelihoods, our food security and our economy. Today we debate our Conservative bill, Bill C-234, an act to amend the Greenhouse Gas Pollution Pricing Act.

The bill was intended to axe the carbon tax on fuels used in certain farm settings where there are no current, imminent viable alternatives, areas where the Liberal carbon tax not only makes zero sense, but straightforwardly penalizes farmers for doing their job. Let me be very clear about this. The Liberal government is punishing farmers with this carbon tax, yet it is not even measuring the impact of the tax on emissions.

The NDP-Liberal coalition members love to repeat their talking points that their tax grab is designed to change behaviour, but when there are no alternatives to power, heat or cool farm activities, equipment and buildings, it just takes away the very capital farmers would be able to invest in their own operations to adapt to the various challenges nature brings to their farming operations.

That is why Canadian farm organizations from coast to coat to coast stand united in their support for our legislation proposal, recognizing its importance for the economic and environmental sustainability of Canadian farms. Rarely has a single piece of legislation garnered such unanimous support. Moreover, Bill C-234 was duly passed by the House of Commons and sent to the Senate in March 2023, reflecting a non-partisan effort with backing from all opposition parties and even several Liberals at second and third readings.

According to the polls, the majority of Canadians want the carbon tax on farms scrapped. They recognize the burden this tax places on our agricultural sector. The Parliamentary Budget Officer himself reported that the carbon tax on propane and natural gas used for greenhouses, heating and cooling livestock barns and drying grain will cost farmers nearly $1 billion by 2030. This is a staggering figure that highlights the need for immediate action.

The PBO also reported that Canadians will pay $486 million in GST on the carbon tax this year alone, and this figure is projected to exceed $1 billion by the year 2030. The administration cost of the carbon tax is another area of concern. In 2022, it cost nearly $83 million to administer the tax. Since 2019, it has cost taxpayers nearly $200 million just to manage this tax.

According to the 2023 food price report, the carbon tax will cost a typical 5,000-acre farm $150,000 by 2030. This is an unsustainable financial burden for farmers. The Canadian Federation of Agriculture stated in 2022 that growth in expenses such as the carbon tax outpaced the rise in farm income.

Total farm operating expenses increased by almost 20%, the largest gain since 1979. Fertilizer prices for Canadian farmers increased by over 50%; commercial feed expenses for livestock producers increased by 20%; and machinery fuel expenses increased by more than 50%. The reality on the ground is even more dire. We have heard that 44% of fresh fruit and vegetable growers are already selling at a loss, and 77% cannot offset production cost increases.

Even with an 80% exemption on carbon tax from natural gas, one Canadian pepper farmer still pays $150,000 a year in carbon taxes. Meanwhile, mushroom farms do not get this exemption, but greenhouses growing cannabis do. This makes no sense. The carbon tax currently costs greenhouse operators $22 million a year, and they will pay between $82 million and $100 million by 2030 when the carbon tax quadruples.

The numbers speak for themselves. There are 145,000 farms in Canada, and 15,000 of those are in Manitoba. According to the PBO, Manitoba farmers paid $3 million last year in carbon taxes on natural gas and propane to dry grain, heat and cool livestock barns and grow food. On April 1, the carbon tax increased by 23%, and Manitoba farmers will pay another $3 million in carbon taxes over the next year. Cumulatively, by 2030 they will have paid $37 million in Manitoba in carbon taxes on natural gas and propane.

Long story short, our Conservative bill, Bill C-234, will help our farmers, growers and ranchers, and widespread support is clear. Despite the decision by the majority of elected MPs, the Senate introduced amendments to Bill C-234 that severely undermine its effectiveness. These amendments, passed after prolonged procedural hurdles and frequent adjournments, removed relief for heating and cooling livestock barns, greenhouses and other growing structures. Furthermore, the amendments impose a sunset clause of just three years, which does not provide adequate time for viable alternative fuel sources to emerge.

The PBO estimates that the Senate's amendments to Bill C-234 will cut carbon tax relief to farmers by $910 million, with dozens of millions of those in Manitoba, which would help consumers immensely. The actions by senators appointed by the Prime Minister effectively pick winners and losers within the agriculture community, exacerbating the challenges faced by our farmers.

Farmers, growers and ranchers demand that Bill C-234 be passed in its original form, with no changes proposed by the Prime Minister and his radical environment minister, who used the Senate in a very ugly campaign that cost Canadians in their everyday cost of living.

Let us do a quick recap of what happened in the Senate. The Senate agriculture committee held an unprecedented seven meetings to study the bill, which had been passed by the elected House. Liberal senators introduced amendments identical to those that the Liberal MPs failed to pass on our side of the Parliament. Knowing their flaws, the Prime Minister then announced that the carbon tax on home-heating oil would be paused for three years for Atlantic provinces, targeting 3% of Canadians whose support the Liberals were desperate for at that time.

Right after that, the committee report was presented in the Senate, but a majority of senators voted against the proposed amendments, marking a tactical victory of common sense. Then, in came the environment minister, who threatened to resign over Bill C-234 and asked the Prime Minister's Office to call senators in an effort to defeat the bill.

We Conservatives launched a massive campaign, including an opposition day motion, to force the Liberals to let senators work independently. Conveniently enough, at this point in time, the Prime Minister decided to appoint four new senators. Days later, the Liberal senators reintroduced defeated amendments. This time, they had just enough votes to pass them. It is unbelievable.

A majority of farmers, elected MPs and all Canadians support this bill, but one radical environment minister and a few senators decided that they know better. That is why we Conservatives will keep fighting for Bill C-234 to be passed without any amendments.

Manitobans are among the 97% of Canadians already left out in the cold by the Liberal government, which voted down our Conservative motion that would have removed the carbon tax on all forms of home heating. Now Liberals want to continue their plan to quadruple the carbon tax on farmers, a tax that will continue to increase the cost of food, making the cost of living crisis tougher every year.

The Parliamentary Budget Officer has made clear that this bill will save farmers $1 billion by 2030, reducing the food prices for Canadian families currently struggling to afford groceries. When the government taxes the farmer who grows the food and the trucker who transports the food, it taxes the single moms, seniors and all others who buy the food. All we are seeking with this bill is to get a carbon tax carve-out for farmers, like the one the Liberals have already given for a smaller number of Canadians on home heating.

Recently, during testimony at committee, the Parliamentary Budget Officer stated that the government had provided him with a copy of its own estimates of the impact of the carbon tax but had put him under a gag order not to talk about it. Even in the few instances where Liberals claim to have some data, they will not share it. We Conservatives will keep fighting to axe the tax on everything for everyone for good.

In conclusion, our farmers deserve better. They deserve a government that understands the critical role they play in feeding our nation and supports them in their endeavours. The current carbon tax policy is a burden that our farmers cannot bear, and it is time for us to take decisive action to relieve them of this undue pressure.

The Liberal government has already shown that it is willing to make exceptions for its carbon tax when it serves its political interests. It is now time for it to demonstrate that it will accept a carve-out when it is in the best interests of everyday Canadians. Let us work together to ensure that our farmers can continue to thrive and provide for all Canadians.

[Eric Duncan, Conservative, Stormont—Dundas—South Glengarry, ON]

Mr. Speaker, there are not too many bills that go through Ottawa where their number becomes synonymous with an issue. Over the course of the last couple of years, Bill C-234 is known in every farm in every part of our country. I get asked very often, when I am out in my tours not just in my part of eastern Ontario but across the country, what the status is of the Conservative bill that was passed in the House of Commons quite a long time ago. When will the Liberal-NDP government listen to what farmers have been saying, listen to the Conservatives and listen to what a majority of members in the House have said, and pass this bill in its original form?

We are here still debating this because of deliberate attempts by the Liberal government, thePrime Minister, Liberal cabinet ministers, trying to gut the bill and minimize the positive impact this could have on the pocketbooks of Canadian farmers. Once the bill was passed here by opposition parties, despite the opposition from the Liberal government itself, as only a handful of Liberal MPs joined our cause, it went over to the independent Senate.

All of a sudden we found out, as things started to percolate and go on, that the environment minister, who is quite well known and not very well received by Canadian farmers, I would argue, was lobbying independent Senators to oppose and gut the bill. It got stuck in the Senate. It just dragged on and on and, sadly, it was amended to gut the bill that we had in place to try to minimize its impact. They took the exemption of having to pay the carbon tax off of buildings and greenhouses. If we accept these amendments, this is going to cost farmers hundreds of millions of dollars. That is wrong. It is going to drive up the cost for barns on our farms and the cost for greenhouses in the country.

It is so important that Canadians hear these numbers, not just from me or Conservative MPs, but from the independent Parliamentary Budget Officer, who is not on too friendly terms with the Liberal government these days. It has a carbon tax cover-up on the report he wants to release about the broad impact, the full impact, the carbon tax is having on all Canadians.

I want to highlight the report that the PBO was able to publish. It shows that if we do not pass this bill, Bill C-234, in its original form, which has passed the House, and have these amendments from the independent Senate rejected, it will mean that Canadian farmers between now and 2030 will be paying one billion dollars in carbon taxes, zero rebate, by the way. Farmers do not get any rebate on what they will be paying. There is nobody in the country who says that we can add a billion dollars in cost to Canadian farms over the course of the next few years and not have that increase the price of food and farming.

If that does not trigger Canadians enough, they should always remember that the government does not just charge the carbon tax. Here is the proof that it has a tax-and-spend problem in Ottawa under the Liberals and NDP. The government taxes the tax. It puts GST and HST on the carbon tax as well, further driving up the cost, with zero rebates.

If there is an irony about how out of touch and just tired the Liberal-NDP government is after nine years, it is its approach and inability to reason with science and fact when it comes to greenhouses. The leader of our party has raised this several times, because it is in his own riding of Carleton, SunTech Greenhouses in Manotick, as well as Carleton Mushroom Farms in Carleton county in the south part of Ottawa as well.

Greenhouses pay carbon tax. The CO2 that comes from the greenhouses that are paying and getting nailed for the carbon tax goes into the plants to grow them and sell them close to home. It is shown that if we do not get this passed in its original form and stop the amendments that the Liberals were driving the independent Senate to try to remove, it is going to be $250 million that greenhouses are going to pay in carbon taxes by 2030. No one can tell me that is not going to drive up the price of tomatoes and mushrooms in Canada. It has been those businesses that have shared their stories of frustration.

SunTech Greenhouses is now saying that it is cheaper for grocery stores in Ottawa to buy tomatoes from Mexico than it is from Manotick, and it is only going to get worse. The carbon tax is going to quadruple on the price of gas. It is going to nearly triple on natural gas and propane in the coming years.

Carleton Mushroom Farms, south of Ottawa, last year paid $150,000 in carbon taxes alone. That is not its entire bill. That is the carbon tax portion of its bill. It expects the carbon tax amounts for 2024 to be about $175,000. When all is said and done, in the Liberals' current plan, if we do not give this exemption that Canadian farmers are desperately calling for to help with food prices, Carleton Mushroom Farms, one business south of Ottawa, is going to be paying $450,000 in carbon taxes alone. The government is out of touch. If it is already cheaper for a grocery store in Ottawa to buy Mexican tomatoes and have them shipped up here, just imagine what is going to happen when the carbon tax bills triple for greenhouses in this country.

There is an irony to it, is there not? In the name of the environment, we have to charge a carbon tax. First of all, the Minister of Agriculture, through the agriculture committee, and Agriculture Canada do not even quantify and explain how these carbon taxes are going to lower emissions and help Canadians. They cannot even quantify it, and refuse to, but worst of all is the irony of taking a tomato from Mexico and shipping it all the way up here by truck or ship, whatever it may be, in the name of the environment because the carbon taxes are too high to be competitive right in our own backyard in eastern Ontario. Do members not find that the height of irony?

The local food movement means having as much food as possible grown here in Canada and consumed by Canadians, and maybe shipped around the world, which would be a great thing too. We are now hearing stories, right here in the backyard of Parliament, of companies saying they are going to have to shrink their production and footprint because they cannot compete with food coming in from around the world, when we have some of the best lands for agriculture in all of the country right here in eastern Ontario.

Why is it so hard for the Liberal government to accept common sense? It should give the exemption to Canadian farmers that they deserve, and take the carbon tax off buildings, dairy farms, all farms across the country, greenhouses and the drying that happens in this country. There is so much frustration right now, and it is not just the carbon tax. The Liberals are increasing other taxes and making it more difficult for farmers to do the important work that they do. It is just common sense.

The House of Commons has voted on this. I would tell any Liberal or NDP member of Parliament, because the NDP is waffling big time on whether it is going to accept the amendments as part of its coalition deal, that we want assurances, and I think we could get them. If Liberal MPs spoke to greenhouses in their regions or ridings and spoke to farmers in their yards as they are drying grain to get a true understanding of the costs and how punitive this carbon tax is, they would agree to keep Bill C-234 in its original format and stop the radical environment minister from calling up independent senators and lobbying them to gut this bill. Instead, let us provide Canadians some relief on food prices, which are already at record highs and going up this year. This is a tangible way the federal government can provide relief to lower the costs.

It is very clear that we are ready for a carbon tax election right now. We have been very clear with Canadians that we would axe the tax entirely. We would not need to do these carve-outs on home heating. We would not need to do these carve-outs for farmers. We are ready for the election right now, and Canadians are, too. They have had enough. I am ready to get my running shoes on and go door knocking, not just in Stormont—Dundas—South Glengarry but, I can assure members, in rural ridings across this country. I will be speaking to farmers to make sure they know that after years of effort and after the bill passed in the House of Commons, it was gutted in the Senate and is being delayed by the government. Liberals are refusing to provide relief at a time when they know Canadians are hurting because of food prices and farmers are frustrated.

It is common sense. We need to reject these amendments and pass the bill in its original form. Let us give farmers the true relief they need after nine years of the NDP-Liberal government.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Mr. Speaker, it is an honour and a privilege again to rise in this place on behalf of the people of Chatham-Kent—Leamington to speak to the gutting of Bill C-234, arguably one of the most contentious amendments introduced into the House this session. Why is it so contentious?

I opened my remarks as I usually do. It truly is an honour and a privilege to bring the voices of our constituents to this place. In fact, the bringing of those voices of Canadians to this place is the role that all 338 of us are supposed to do, through the process of debate, committee and voting in this chamber. Therefore, it is not a throwaway comment that I make when I begin my interventions.

I am speaking with the weight of the vast majority of my constituents and of Canadians when I speak to the amendment that would restore the intent of the original Bill C-234 to exempt on-farm propane and natural gas for grain drying and for barn heating.

This amendment would remove the most contentious part of the amended bill that came to us from the other place, and it reflects what Canadians want.

This was a billion-dollar bill, a billion dollars worth of carbon tax cost that was to be avoided with the passage of C-234, and this cost would be borne by our farmers and, ultimately, by consumers by 2030. The amendment brought back to this chamber by the other place, which guts the bill, would cut this relief to farmers and ultimately to consumers by $910 million, or 91% of that, according to the Parliamentary Budget Officer. That is gutting.

A recent Leger poll confirms that the vast majority, seven out of 10 Canadians, support this exemption for farmers using natural gas and propane, because there simply are not viable alternatives for the farmers. Let us put this in perspective. Canada contributes 1.6% of the world's greenhouse gas emissions, and agriculture only contributes 8% of that 1.6%, so this carbon tax is only a virtue-signalling exercise that drives up the cost of food.

The carbon tax is a tax plan and not an environmental plan. Therefore, I do hope that the other place, the place of sober second thought, takes note of what the will of the people is and ignores the browbeating they received from the Prime Minister when they considered this bill a sober second time.

Before going on to the significance of the bill to my constituents, I want to take note of a few observations made by the independent PBO, and that is a gagged PBO, by the way. The PBO reports that Canadians will pay, in addition to the carbon tax, another $486 million, so another half a billion dollars, in GST on top of the carbon tax by 2030. This is a tax on a tax. In 2022, the carbon tax also cost $82.6 million just to administer. That cost was for 465 federal employees. Since 2019, this cost taxpayers nearly $200 million, or a fifth of a billion dollars, just to administer.

I am going to focus the remaining of my time on two industry groups that do not immediately come to mind when we are thinking about the removal of barn heating from the carbon tax exemption. I am sure my colleagues who will follow with their interventions will speak to the more traditional aspects of barn heating.

The bill is of particular significance to my riding, as Chatham-Kent—Leamington is home to 60% of Ontario's greenhouses, 2,730 of Ontario's 4,000 acres. In fact, the greenhouse acreage in CKL is larger than the entire U.S. greenhouse industry combined, making it the largest concentration of greenhouses in North America. Total farm gate represents $1.2 billion. Therefore, naturally my constituents are gravely concerned with the consequences of the Senate amendments.

Greenhouse farmers did receive an 80% carbon tax exemption in the original 2016 Greenhouse Gas Pollution Pricing Act. Why? Because they grow food and because they recycle much of the CO2 back into the greenhouses, because, as we learned in high school science, plants grow better with CO2, tax or no tax applied. However, even with that exemption, Ontario greenhouse farmers will pay over $18 million in carbon tax this year, and that will rise to $40 million a year by 2030. Cumulatively, Ontario greenhouses alone will pay almost a quarter billion dollars in carbon tax by 2030, and this is with the 80% exemption, but as I said earlier, it is ultimately the consumer who pays. These are big numbers.

At a time of high food insecurity across Canada and the world, the gutting of Bill C-234 is just another example of the Liberals' virtue-signalling ideology that will inflict more financial hardship on farmers and, in turn, subsequently on Canadian consumers.

However, as difficult as it is for greenhouse farmers, it is that much worse for our mushroom farmers. They did not receive any consideration in 2016, so they are paying the full carbon tax plus HST. Let us think about this for a moment. A greenhouse cannabis producer gets an 80% carbon tax exemption, but a mushroom farmer gets no consideration. Is that virtue signalling?

Carleton Mushroom Farms co-owner Mike Medeiros summed it up best when he said, “Instead of it being a staple, it's going to be a luxury item and it's going to affect sales. By affecting sales, I may have to cut back my farm, make it smaller.” Mr. Medeiros paid $150,000 last year in carbon tax and is on track to be out of pocket another $173,000 this year. By 2030, he estimates it will reach $450,000. This is on top of his heating bills.

This mushroom farmer is an example of Canadian farm families setting the gold standard in efficiency, innovation and sustainability. He uses heavily insulated boilers that are powered by natural gas. Mushroom farmers in Canada will pay $7.4 million this year because of the tax, and by 2030 that bill rises to $16 million.

Another mushroom producer, one that I am even more familiar with, is Highline Mushrooms. It operates 10 farms across Canada and is headquartered in my hometown. Almost all the farms are near the U.S. border, so they compete with U.S. producers for retailers both in Canada and the U.S. Of course, U.S. producers do not pay a carbon tax and so, logically, industry expansion in this industry could very well go to the U.S.

Similarly, back to the greenhouse, its industry representatives recently testified at an agriculture committee hearing. They said that the U.S. industry was becoming a much more attractive alternative for expansion; this by our very own Canadian producers.

This Canadian carbon tax is also directly contributing to food insecurity. Under pressure from high food prices, a 2023 Agri-Food Analytics Lab survey showed that almost half of Canadians were prioritizing the cost of groceries versus the nutrition of their groceries.

Food Banks Canada backs up these figures with some startling figures of its own. Last year, food banks had to handle a record two million visits, and they expect another million new users this year. One in 10 people in Toronto is having to rely on food banks to survive.

This past weekend, I, together with the Leader of the Opposition, visited the Waterloo regional food bank. It has experienced a 50% increase in usage over the past year, and a fivefold increase in the past decade. That should not happen in Canada.

The Conservatives have introduced an amendment to reject the Senate amendments and demand that the bill be passed in its original form, which would support our farmers and our families. When we tax the farmer that grows the food and we tax the trucker that delivers the food, we ultimately tax the Canadian consumer who consumes and buys the food.

I call on our NDP and Bloc Québécois members to hold to their original vote on this bill and reject the Senate amendments. It is high time that the government puts aside its ideological agenda and does what is best for Canadians, as Canadians are calling for. Better yet, it should step aside and let the Conservatives restore hope and sanity to our country, uniting our country and our home; my home, our home, let us bring it home.

The House resumed from February 14 consideration of the motion in relation to the amendments made by the Senate to C-234, An Act to amend the Greenhouse Gas Pollution Pricing Act.