The hon. member for Cariboo—Prince George had an opportunity to ask a question. If he wants to ask another question, he should wait until the appropriate time.
The hon. member for Victoria.
Chrystia Freeland Liberal
This bill has received Royal Assent and is, or will soon become, law.
This is from the published bill.
This enactment amends the Income Tax Act in order to double the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit for six months, effectively increasing the maximum annual GST/HST credit amounts by 50% for the 2022-2023 benefit year.
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.
Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-30s:
Cost of Living Relief Act, No. 1Government Orders
The Assistant Deputy Speaker Carol Hughes
The hon. member for Cariboo—Prince George had an opportunity to ask a question. If he wants to ask another question, he should wait until the appropriate time.
The hon. member for Victoria.
Laurel Collins NDP Victoria, BC
Madam Speaker, I can understand why my Conservative colleagues are feeling defensive, as they are voting against dental care and at the same time receiving publicly funded dental care right now.
Andréanne Larouche Bloc Shefford, QC
Madam Speaker, I thank my colleague from Victoria for her speech. However, I have a few concerns. First, when it comes to Bill C‑31, there is nothing about taking care of seniors' oral health. We are nowhere near that point.
In Quebec, children under the age of 10 are already covered by a plan. In fact, there is an election campaign under way in Quebec right now. Unions and community groups have shared their demands in the context of this election campaign that will determine the next government in the National Assembly. The elephant in the room for them is the lack of health transfers, which would allow Quebec and the provinces to implement and improve their dental care plans. We are not talking about national dental insurance, but about health transfers of up to 35%.
Laurel Collins NDP Victoria, BC
Madam Speaker, we should be fighting for dental care and increased health transfers to the provinces. This is critically important, as we are in a health care crisis in emergency rooms. Staff are drowning. Of course we need to increase health transfers to the provinces now.
Mario Simard Bloc Jonquière, QC
Madam Speaker, I would like to inform you that I will be splitting my time with the member for Rivière-des-Mille-Îles.
For my first speech after the summer break, I would have liked to talk about something a bit more divisive, but, unfortunately, Bill C-30 is fairly uncontroversial. It goes without saying that the Bloc Québécois will vote in favour, since it is a suggestion that was set out in all of our budget expectations. I hope that by saying this, I can avoid getting questions from the member for Winnipeg North in 10 minutes' time, since, at the end of the day, most of us agree on it.
The one small criticism I have for the Liberal Party is that the government was slow to act. As members will recall, the Deputy Prime Minister stood in front of the Empire Club in Toronto and simply repeated measures that were in the budget. The government could have taken inflation seriously long before now and taken quicker action. That was a little digression for the member for Winnipeg North. Now he will perhaps have something to say later.
I would like to quickly come back to inflation. In July, prices for goods and services in Canada rose by 7.6%. August brought a slight decrease, with inflation down to 7%. I am bringing this up again because I want to point out that this dip in inflation was primarily the result of a sharp drop in gasoline prices. That is why inflation slowed down.
Some of you may have seen, as I did, short videos of the Conservative leader constantly talking about people who are trying to buy groceries and their experiences. I understand where they are coming from, and I agree with the Conservative leader. Consumer prices have skyrocketed. Prices at bakeries have risen 15% in the last month. That is a substantial increase. It is the same for fresh fruit, with prices having risen by 13.2% compared to a year ago.
This is a developing phenomenon and we need to analyze it. Inflation is a complex economic situation. It will soon be clear where I am going with this. I have found a divisive element in something that is usually undisputed.
It is a complex economic situation. I think we need to be careful how we respond to inflation. We have to be careful because the type of inflation we are seeing right now is not necessarily one we have seen before. In the past, it was a demand-side issue. What we are seeing now is an issue on the supply side as pressures from labour costs and energy costs are creating a supply crisis that is causing this inflation.
Members will agree that there is no easy solution, especially when we take into consideration other causes that are completely out of our control, such as the war in Ukraine and global energy problems. It goes without saying that there is no easy solution. Why do I say that?
I am not an economist and I do not know much about the mechanics of macroeconomics and microeconomics, but I am very familiar with political dynamics. As such, I can talk about what we should not do to fight inflation. In my opinion, what we should not do to fight inflation is use the inflationary tensions we are currently seeing to advance a political agenda; to me that comes back to playing partisan politics on the backs of the most vulnerable. I do not believe that populist speeches that use the catchphrase “have more in their pockets” are appropriate for fighting inflation. Such speeches might unite the discontented, but they do little to offer solutions to those on the losing side of our economic system.
All this kind of populism does is distort things by offering piecemeal solutions, such as reducing the gas tax. In my opinion, over the past few months, we have been seeing a Conservative brand of populism stand up for the most vulnerable members of our society. I am not trying to pick a fight, but the Conservative Party does not exactly have a history of standing up for people disadvantaged by the economic system. Let me explain why I interpret the new Conservative leader's messaging as a kind of populism.
Here is a brief definition of populism.
The first thing to understand about populism is that many describe it as a divisive political strategy used to frame issues in black and white and pit people against one another. I have been listening to my Conservative colleagues for a while, and that seems to be their approach. How do they drive people apart? My Conservative colleagues say the only way to rein in inflation is to get rid of the carbon tax. That is an overly simplistic solution. I can see that others agree.
The second thing to understand about populism is that some individuals have been giving speeches and displaying behaviour employing a certain rhetoric that combines utopianism and demagoguery, pandering to the people and pitting them against the ruling elite. I am thinking of the member for Carleton's rhetoric and a few clips I saw online in which he talks about a mother having to water down milk because she can no longer afford to feed her family. The member for Carleton said that the central bank is to blame for this situation. The Conservatives want someone to blame for inflation, so they have chosen the head of the central bank and the Prime Minister. The Prime Minister may have caused some harm, but the Conservatives are making the complex economic problem of inflation into a wedge issue.
The third thing to understand about populism is that it condemns institutions that, in the populist view, do not pay enough attention to people's aspirations. It portrays political opponents as elites with little regard for the ideas of the people and popular common sense. We also heard this sort of rhetoric from the leader of the official opposition when he talked about the Prime Minister being out of touch and about the head of the central bank.
I personally do not believe that this Conservative populism offers any proposals or solutions to fight inflation. Rather, I believe that it allows the Conservative Party to rally malcontents, those people on the losing end of our current economic system, to their banner without offering them any solutions. I will explain why I believe that the Conservative Party is not offering solutions.
What does the Conservatives' traditional economic rhetoric sound like? I have always seen it as being similar to the Washington consensus, which emerged from the liberal ideology espoused by the Chicago school of economics. What is this rhetoric? I have been here since 2019 and have frequently seen the member for Carleton champion the laissez-faire approach. He has done so on many occasions. What is the Chicago school's Washington consensus all about? It advocates the systematic liberalization of markets and interest rates. That is strangely similar to the proposals frequently put forward by the Conservative member for the full privatization of businesses and the deregulation of markets. It sounds a lot like the Conservatives' rhetoric. In particular, there is an emphasis on heavy budget cuts, especially by reducing public spending. We heard this often, even during the pandemic.
That is the Conservative Party's rhetoric. Does it structure government action in such a way as to help the most disadvantaged? I seriously doubt it.
Two very interesting books by Joseph Stiglitz tell us the complete opposite. By implementing such measures, in line with free-market liberalism—
Cost of Living Relief Act, No. 1Government Orders
The Assistant Deputy Speaker Carol Hughes
I am sorry to interrupt the member. I was listening closely to his speech but I see that his time has expired.
We will now go to questions and comments.
The hon. member for Kings—Hants.
Kody Blois Liberal Kings—Hants, NS
Madam Speaker, normally I try to engage in French, but I want to make sure my point is very clear.
I was interested in the member's conversation around supply-side economics. Of course the inflationary period we are seeing right now is somewhat unique. The Bank of Canada is increasing its benchmark borrowing rate to try to bring down demand.
Does he have certain concerns on the monetary policy side such that if this is a supply-side economic issue that is driving inflation, and notwithstanding the Bank of Canada is trying to do its job to bring down demand, it may prove difficult to actually quell inflation because this is a supply-side economic issue?
Mario Simard Bloc Jonquière, QC
Madam Speaker, I will try to respond to my colleague while I finish my speech, talk about what needs to be done and suggest some solutions.
I never thought I would have to say this, but I think that we need to protect the independence of the central bank. I never thought a politician would have to say this, but in light of the attacks by the member for Carleton, I have to say that we must indeed protect the independence of the central bank.
There is one thing I think is fundamental, however. We must reduce our dependence on oil, and the government should therefore probably stop giving such astronomical subsidies to this industry. My colleagues and I know that the oil and gas sector is an bottomless pit for public funds. In Canada alone, through Export Development Canada, or EDC, we are talking about an average of $14 billion a year.
If that money were reallocated in a better system with stronger social policies, we would have a much easier time tackling inflation.
Dave Epp Conservative Chatham-Kent—Leamington, ON
Madam Speaker, with reference to my hon. colleague across the way who was questioning as to whether this inflation was being driven more by supply-side economics, I wonder if the member could comment as to whether it is the supply side from economic goods or the supply of cash, in his opinion, that is driving this inflation.
Mario Simard Bloc Jonquière, QC
Madam Speaker, I am not an economist. However, what I am hearing from economic experts is that we are in a supply crisis, not a demand crisis. Very high fuel prices and labour shortages are what got us into this supply crisis, which is driving inflation.
How can we address labour shortages?
The Bloc Québécois has made a number of proposals. Allowing seniors to return to work and providing incentives to do so is one way to address labour shortages and reduce the effects of population aging. Transferring certain powers to Quebec could help as well. Immigration is a total mess. Every riding is having issues with temporary foreign workers. We could alleviate labour shortages by making it easier for foreign workers to get here. We can take some of that off Ottawa's plate.
I think there are helpful measures that could be put in place. They would be more useful than simply saying that the head of the central bank should be fired.
Lori Idlout NDP Nunavut, NU
Uqaqtittiji, the cost of living does not seem to be factored for my constituents in Nunavut in this bill. I wonder if the member could respond to the passing of this bill being absolutely necessary, especially with increases factored for remote and isolated communities. This is actually very necessary to make improvements for those more vulnerable communities.
Mario Simard Bloc Jonquière, QC
Madam Speaker, I completely agree with my colleague. The government could do more. I would reiterate the solutions I mentioned earlier. If we stop dumping money down the bottomless fossil fuel well, maybe we will have more money to support our communities.
Luc Desilets Bloc Rivière-des-Mille-Îles, QC
Madam Speaker, we are here today to debate Bill C‑30, an act to amend the Income Tax Act regarding the temporary enhancement to the goods and services tax, or GST, credit.
Bill C‑30 is sponsored by the member for University—Rosedale, our Deputy Prime Minister and Minister of Finance. This bill, which is at second reading in the House, would create a new refundable tax credit of $229 for a single person and $459 for a couple, with an extra $114 per dependent child. To be eligible for the full amount, however, people's income must be less than $39,826 in 2021.
If Bill C‑30 goes through quickly, eligible Quebeckers and Canadians may receive that tax credit in October. If not, it will not be available until November or December, which is very late. This measure, which will cost an estimated $2.5 billion, should help 11 million people. It is one tactic in the fight against inflation and the declining purchasing power of families in Quebec and Canada.
We in the Bloc Québécois have no problem supporting Bill C-30, but we wonder if the $39,826 threshold to receive the full benefits is not a bit low. Even with a slightly higher salary, home ownership is not possible in Quebec or anywhere else in Canada.
In the Laurentians, where my riding is located, the average rent for a three-bedroom apartment was $1,834 last spring. That is more than the cost of rent for the same type of apartment on the island of Montreal, and that is the number from six months ago.
Given that the cost of housing has risen twice as fast as the consumer price index, that number has already increased by $250 in only six months. When you do the math, it gets truly frightening. The bottom line is that an income threshold of $39,826 could almost be qualified as stingy.
There is more, however. The rebate decreases by 15 cents for every dollar earned above this threshold. This means that someone who earns $41,357 will not get a penny, even if the difference between the two amounts is quite small. I do understand, however, that 11 million people will benefit. We can assume that a lot of people will fall through the cracks, and that is what concerns me.
The Bloc Québécois will support Bill C‑30, but doubling the GST credit for six months will not magically allow Quebec seniors to get their heads above water.
Even before the surge of inflation, Canada was one of the industrialized countries where retirement income was the lowest compared to employment income for the same person. That number is 50.7% in Canada, compared to 57.6% in the OECD and 63% in Europe. Once we retire, we get half of what we earned when we were working. That is not a lot. It means that our seniors get poorer faster than those in other countries when they leave the workforce. Seniors need more than that to live in dignity. They need more than the $40 a month for six months that the government is currently offering them.
We in the Bloc Québécois have said it before, and we will say it again: We need keystone measures that are well thought out and properly targeted.
The first order of business would be to stop cutting the guaranteed income supplement payments of low-income seniors who received the Canada emergency response benefit or the Canada recovery benefit last year.
The second order of business would be to increase old age security by $110 a month, as soon as people reach 65 years of age. This is a measure the Bloc Québécois has been defending tooth and nail for the last two years.
Again, the Bloc Québécois will support Bill C‑30, but I remind members that our party already asked for this measure six months ago in its budget expectations. It is nothing new and it did not just pop out of the heads of the Liberals. We helped inspire it. Six months is a long time when you do not know how you will make it to the end of the month or even the end of the week. Six months is a long time for the most vulnerable people and those who are in a financially precarious position. It is even worse if the refund is paid in December or October, as I said before.
Back home, singer-songwriter Dédé Fortin, who passed away unfortunately, summed it up best in his song The Answering Machine:Yesterday, I met a poor man
He lives on the street, doesn't own a thing
He told me something that I thought was really funny
Life is short, but it can be long at times
Let us think about that.
My colleagues opposite will say that inflation is dropping, that it was 8% in July and 7% in August. That is true, but the drop is due entirely to the price of gas, which fell 18.8% after reaching an all-time high in June. Everyone knows that Ottawa does not have a say in world oil prices, which are essentially set by the London and New York exchanges.
If we exclude gas, all other indices are rising, period. Baked goods have increased by 15.6%; fresh fruit, 13.2%; children's school supplies, 20%; housing, 15%; and the list goes on. These figures are from Statistics Canada, not me. In short, the Liberals can hardly be proud of and boast about this situation.
Increasing the GST credit is a good measure, but it is largely insufficient to make up for all the cost increases caused by the current surge in inflation. Right now, 41% of Quebeckers cannot make ends meet. I think it is urgent that the government step in in other areas to support them.
I would be remiss if I did not make the connection between the current relief measures and the situation of workers across the country. By country, I mean Quebec. Sadly, yesterday saw a return to the prepandemic EI system. Ottawa could have extended the measures it put in place during the pandemic. Ottawa could have delivered on its 2015 promise to reform EI. Ottawa did neither of those things. Now, six out of 10 workers are ineligible for benefits as of yesterday.
This is a government that gives with one hand and takes back with the other. How shameful. As Bloc Québécois members have said repeatedly, Ottawa has to deliver on its promise and completely overhaul the EI system. That would be, in my view, a truly meaningful measure, the kind we in the Bloc Québécois like to see. It would counter the negative impacts of the increased cost of living that is putting untenable pressure on Quebec workers. It would be far more effective than a $225 cheque. We in the Bloc Québécois hope that the government can understand that.
Lloyd Longfield Liberal Guelph, ON
Mr. Speaker, being a senior myself, I was very interested in the comments of the hon. member across the way on supporting seniors. However, I am an employed senior, whereas we have many, many more seniors in our communities who are living on fixed incomes.
The Conservatives are saying we should not be looking at increasing CPP deductions and giving more support for seniors in the future through that means. Could the hon. member comment on the need for support for seniors on things like long-term care and areas that are normally under provincial jurisdiction?
Luc Desilets Bloc Rivière-des-Mille-Îles, QC
Mr. Speaker, the member just opened a huge door for me.
Indeed, I do not support the measures proposed by the Conservative side, should they have any. However, I would remind the House that seniors deserve much more than they are getting right now.
The Bloc believes it is simple. We think seniors' pensions should be increased by $110 a month, not at 75, but at 65. That is one thing.
I touched on the second thing during my speech. Honestly, this is something I learned while doing some reading to prepare for this debate. It is the difference between the amount seniors receive while working and the amount they receive after retirement. I was astounded to learn that there is such a large gap in Canada and in Quebec. Seniors become much poorer when they retire. I think we should reflect on that.