Bill C-59

Fall Economic Statement Implementation Act, 2023

An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023

Part 1 implements certain measures in respect of the Income Tax Act and the Income Tax Regulations by
(a) limiting the deductibility of net interest and financing expenses by certain corporations and trusts, consistent with certain Organisation for Economic Co-operation and Development and the Group of Twenty Base Erosion and Profit Shifting project recommendations;
(b) implementing hybrid mismatch rules consistent with the Organisation for Economic Co-operation and Development and the Group of Twenty Base Erosion and Profit Shifting project recommendations regarding cross-border tax avoidance structures that exploit differences in the income tax laws of two or more countries to produce “deduction/non-inclusion mismatches”;
(c) allowing expenditures incurred in the exploration and development of all lithium to qualify as Canadian exploration expenses and Canadian development expenses;
(d) ensuring that only genuine intergenerational business transfers are excluded from the anti-surplus stripping rule in section 84.1 of the Income Tax Act ;
(e) denying the dividend received deduction for dividends received by Canadian financial institutions on certain shares that are held as mark-to-market property;
(f) increasing the rate of the rural supplement for Climate Action Incentive payments (CAIP) from 10% to 20% for the 2023 and subsequent taxation years as well as referencing the 2016 census data for the purposes of the CAIP rural supplement eligibility for the 2023 and 2024 taxation years;
(g) providing a refundable investment tax credit to qualifying businesses for eligible carbon capture, utilization and storage equipment;
(h) providing a refundable investment tax credit to qualifying businesses for eligible clean technology equipment;
(i) introducing, under certain circumstances, labour requirements in relation to the new refundable investment tax credits for eligible carbon capture, utilization and storage equipment as well as eligible clean technology equipment;
(j) removing the requirement that credit unions derive no more than 10% of their revenue from sources other than certain specified sources;
(k) permitting a qualifying family member to acquire rights as successor of a holder of a Registered Disability Savings Plan following the death of that plan’s last remaining holder who was also a qualifying family member;
(l) implementing consequential changes of a technical nature to facilitate the operation of the existing rules for First Home Savings Accounts;
(m) introducing a tax of 2% on the net value of equity repurchases by certain Canadian corporations, trusts and partnerships whose equity is listed on a designated stock exchange;
(n) exempting certain fees from the refundable tax applicable to contributions under retirement compensation arrangements;
(o) introducing a technical amendment to the provision that authorizes the sharing of taxpayer information for the purposes of the Canadian Dental Care Plan;
(p) implementing a number of amendments to the general anti-avoidance rule (GAAR) as well as introducing a new penalty applicable to transactions subject to the GAAR and extending the normal reassessment period for the GAAR by three years in certain circumstances;
(q) facilitating the creation of employee ownership trusts;
(r) introducing specific anti-avoidance rules in relation to corporations referred to as substantive CCPCs; and
(s) extending the phase-out by three years, and expanding the eligible activities, in relation to the reduced tax rates for certain zero-emission technology manufacturers.
It also makes related and consequential amendments to the Excise Tax Act and the Excise Act, 2001 .
Part 2 enacts the Digital Services Tax Act and its regulations. That Act provides for the implementation of an annual tax of 3% on certain types of digital services revenue earned by businesses that meet certain revenue thresholds. It sets out rules for the purposes of establishing liability for the tax and also sets out applicable reporting and filing requirements. To promote compliance with its provisions, that Act includes modern administration and enforcement provisions generally aligned with those found in other taxation statutes. Finally, this Part also makes related and consequential amendments to other texts to ensure proper implementation of the tax and cohesive and efficient administration by the Canada Revenue Agency.
Part 3 implements certain Goods and Services Tax/Harmonized Sales Tax (GST/HST) measures by
(a) ensuring that an interest in a corporation that does not have its capital divided into shares is treated as a financial instrument for GST/HST purposes;
(b) ensuring that interest and dividend income from a closely related partnership is not included in the determination of whether a person is a de minimis financial institution for GST/HST purposes;
(c) ensuring that an election related to supplies made within a closely related group of persons that includes a financial institution may not be revoked on a retroactive basis without the permission of the Minister of National Revenue;
(d) making technical amendments to an election that allows electing members of a closely related group to treat certain supplies made between them as having been made for nil consideration;
(e) ensuring that certain supplies between the members of a closely related group are not inadvertently taxed under the imported taxable supply rules that apply to financial institutions;
(f) raising the income threshold for the requirement to file an information return by certain financial institutions;
(g) allowing up to seven years to assess the net tax adjustments owing by certain financial institutions in respect of the imported taxable supply rules;
(h) expanding the GST/HST exemption for services rendered to individuals by certain health care practitioners to include professional services rendered by psychotherapists and counselling therapists;
(i) providing relief in relation to the GST/HST treatment of payment card clearing services;
(j) allowing the joint venture election to be made in respect of the operation of a pipeline, rail terminal or truck terminal that is used for the transportation of oil, natural gas or related products;
(k) raising the input tax credit (ITC) documentation thresholds from $30 to $100 and from $150 to $500 and allowing billing agents to be treated as intermediaries for the purposes of the ITC information rules; and
(l) extending the 100% GST rebate in respect of new purpose-built rental housing to certain cooperative housing corporations.
It also implements an excise tax measure by creating a joint election mechanism to specify who is eligible to claim a rebate of excise tax for goods purchased by provinces for their own use.
Part 4 implements certain excise measures by
(a) allowing vaping product licensees to import packaged vaping products for stamping by the licensee and entry into the Canadian duty-paid market as of January 1, 2024;
(b) permitting all cannabis licensees to elect to remit excise duties on a quarterly rather than a monthly basis, starting from the quarter that began on April 1, 2023;
(c) amending the marking requirements for vaping products to ensure that the volume of the vaping substance is marked on the package;
(d) requiring that a person importing vaping products must be at least 18 years old; and
(e) introducing administrative penalties for certain infractions related to the vaping taxation framework.
Part 5 enacts and amends several Acts in order to implement various measures.
Subdivision A of Division 1 of Part 5 amends Subdivision A of Division 16 of Part 6 of the Budget Implementation Act, 2018, No. 1 to clarify the scope of certain non-financial activities in which federal ‚financial institutions may engage and to remove certain discrepancies between the English and French versions of that Act.
Subdivision B of Division 1 of Part 5 amends the Trust and Loan Companies Act , the Bank Act and the Insurance Companies Act to, among other things, permit federal financial institutions governed by those Acts to hold certain meetings by virtual means without having to obtain a court order and to permit voting during those meetings by virtual means.
Division 2 of Part 5 amends the Canada Labour Code to, among other things, provide a leave of absence of three days in the event of a pregnancy loss and modify certain provisions related to bereavement leave.
Division 3 of Part 5 enacts the Canada Water Agency Act . That Act establishes the Canada Water Agency, whose role is to assist the Minister of the Environment in exercising or performing that Minister’s powers, duties and functions in relation to fresh water. The Division also makes consequential amendments to other Acts.
Division 4 of Part 5 amends the Tobacco and Vaping Products Act to, among other things,
(a) authorize the making of regulations respecting fees or charges to be paid by tobacco and vaping product manufacturers for the purpose of recovering the costs incurred by His Majesty in right of Canada in relation to the carrying out of the purpose of that Act;
(b) provide for related administration and enforcement measures; and
(c) require information relating to the fees or charges to be made available to the public.
Division 5 of Part 5 amends the Canadian Payments Act to, among other things, provide that additional persons are entitled to be members of the Canadian Payments Association and clarify the composition of that Association’s Stakeholder Advisory Council.
Division 6 of Part 5 amends the Competition Act to, among other things,
(a) modernize the merger review regime, including by modifying certain notification rules, clarifying that Act’s application to labour markets, allowing the Competition Tribunal to consider the effect of changes in market share and the likelihood of coordination between competitors following a merger, extending the limitation period for mergers that were not the subject of a notification to the Commissioner of Competition and placing a temporary restraint on the completion of certain mergers until the Tribunal has disposed of any application for an interim order;
(b) improve the effectiveness of the provisions that address anti-competitive conduct, including by allowing the Commissioner to review the effects of past agreements and arrangements, ensuring that an order related to a refusal to deal may address a refusal to supply a means of diagnosis or repair and ensuring that representations of a product’s benefits for protecting or restoring the environment must be supported by adequate and proper tests and that representations of a business or business activity for protecting or restoring the environment must be supported by adequate and proper substantiation;
(c) strengthen the enforcement framework, including by creating new remedial orders, such as administrative monetary penalties, with respect to those collaborations that harm competition, by creating a civilly enforceable procedure to address non-compliance with certain provisions of that Act and by broadening the classes of persons who may bring private cases before the Tribunal and providing for the availability of monetary payments as a remedy in those cases; and
(d) provide for new procedures, such as the certification of agreements or arrangements related to protecting the environment and a remedial process for reprisal actions.
The Division also amends the Competition Tribunal Act to prevent the Competition Tribunal from awarding costs against His Majesty in right of Canada, except in specified circumstances.
Finally, the Division makes a consequential amendment to one other Act.
Division 7 of Part 5 amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to exclude from their application prescribed public post-secondary educational institutions.
Subdivision A of Division 8 of Part 5 amends the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to, among other things,
(a) provide that, if a person or entity referred to in section 5 of that Act has reasonable grounds to suspect possible sanctions evasion, the relevant information is reported to the Financial Transactions and Reports Analysis Centre of Canada;
(b) add reporting requirements for persons and entities providing certain services in respect of private automatic banking machines;
(c) require declarations respecting money laundering, the financing of terrorist activities and sanctions evasion to be made in relation to the importation and exportation of goods; and
(d) authorize the Financial Transactions and Reports Analysis Centre of Canada to disclose designated information to the Department of the Environment and the Department of Fisheries and Oceans, subject to certain conditions.
It also amends the Budget Implementation Act, 2023, No. 1 in relation to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and makes consequential amendments to other Acts and a regulation.
Subdivision B of Division 8 of Part 5 amends the Criminal Code to, among other things,
(a) in certain circumstances, provide that a court may infer the knowledge or belief or recklessness required in relation to the offence of laundering proceeds of crime and specify that it is not necessary for the prosecutor to prove that the accused knew, believed they knew or was reckless as to the specific nature of the designated offence;
(b) remove, in the context of the special warrants and restraint order in relation to proceeds of crime, the requirement for the Attorney General to give an undertaking, as well as permit a judge to attach conditions to a special warrant for search and seizure of property that is proceeds of crime; and
(c) modify certain provisions relating to the production order for financial data to include elements specific to accounts associated with digital assets.
It also makes consequential amendments to the Seized Property Management Act and the Forfeited Property Sharing Regulations .
Division 9 of Part 5 retroactively amends section 42 of the Federal-Provincial Fiscal Arrangements Act to specify the payments about which information must be published on a Government of Canada website, as well as the information that must be published.
Division 10 of Part 5 amends the Public Sector Pension Investment Board Act to increase the number of directors in the Public Sector Pension Investment Board, as well as to provide for consultation with the portion of the National Joint Council of the Public Service of Canada that represents employees when certain candidates are included on the list for proposed appointment as directors.
Division 11 of Part 5 enacts the Department of Housing, Infrastructure and Communities Act , which establishes the Department of Housing, Infrastructure and Communities, confers on the Minister of Infrastructure and Communities various responsibilities relating to public infrastructure and confers on the Minister of Housing various responsibilities relating to housing and the reduction and prevention of homelessness. The Division also makes consequential amendments to other Acts and repeals the Canada Strategic Infrastructure Fund Act .
Division 12 of Part 5 amends the Employment Insurance Act to, among other things, create a benefit of 15 weeks for claimants who are carrying out responsibilities related to
(a) the placement with the claimant of one or more children for the purpose of adoption; or
(b) the arrival of one or more new-born children of the claimant into the claimant’s care, in the case where the person who will be giving or gave birth to the child or children is not, or is not intended to be, a parent of the child or children.
The Division also amends the Canada Labour Code to create a leave of absence of up to 16 weeks for an employee to carry out such responsibilities.

Fall Economic Statement Implementation Act, 2023

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, she was not successful, because she gave one and then she had to look down. She could learn a lot from the member for Sherwood Park—Fort Saskatchewan, because his delivery was really good.

I go back to exactly what I said before, which is that what matters the most is how the economy is performing in relation to the deficit that is projected. That is what matters the most. Conservative prime ministers have known that. Conservative premiers know that. Everybody has always operated in that manner.

If what the member is saying was true, then one would think that these fiscally responsible Conservative prime ministers all throughout Brian Mulroney's time and all throughout Stephen Harper's time would have just done exactly what the Conservatives are saying, but they did not.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Madam Speaker, I understand consent was sought and given for me to split my time. Therefore, I would ask to split my time with the hon. member from Saskatoon—Grasswood.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

Is it agreed?

[Some hon. members]

Agreed.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Madam Speaker, while we are discussing what we renamed the SES, the summer economic statement, Canadians are experiencing the worst cost of living crisis in 40 years, due to a lack of affordable housing, the carbon tax, and record-smashing food bank use and grocery prices. Canadians have always had common sense. When Canadians look at their own expenses, they budget. They stretch dollars. They choose whether they go on vacation or whether the kids go to after-school activities. They go to a grocery store and have to budget what they are buying. They have to look at practical solutions to everyday challenges with resilience and resourcefulness.

However, common sense is like deodorant; the ones who need it the most never use it. With respect to this level of government, Canadians are shaking their heads in disbelief because of the lack of common sense on the opposite side of the aisle. This is the greatest country in the world. We have great people, innovative minds, great institutions and hard workers. We have resilience. Canadians invented peanut butter, the zipper, the Ski-Doo and the Sea-Doo, but common-sense approaches have become rare commodities.

In 2015, among the Liberal campaign promises was the promise to help the middle class and those looking to join it, as well as tax cuts for the middle class. What do we see now? We see more people who are out of the middle class. We see tax increases. The carbon tax alone went up 23% on April 1. More people are finding themselves out of the middle class, and more people are finding themselves taxed, as we have a government that lacks common sense.

Look at what the government could do if it looked at the basics. Let us say a dozen people went into the woods to try to start a community. What would be the first things they would do? They would build shelter. They would hunt and find food. The community would make sure it had a place to look after the children and one another, that everyone would be well looked after.

After nine years under the government, more Canadians than ever before are finding that rent has doubled, mortgage payments have doubled and the amount needed for a down payment has doubled. They are finding that grocery prices are $700 more this year alone. Groceries have gone up 24% over the last four years. Look at the cost of heating one's home. All prices for farmers growing their crops have gone up. The government's common sense has just disappeared. Let us look at some examples of its lack of common sense.

The government borrowed $400 billion back in the day when the Prime Minister said that interest rates were at historic lows. When we borrowed $400 billion, the government borrowed it over the short term. The government did not look ahead 20 or 25 years as a family would when looking at a mortgage. The government looked at the short term.

Now the debt is coming up for renewal. Do members know how much the renewal is going to cost us just in 2025? It is going to cost $12 billion, because the government did not have the common sense to look at long-term loans to look after Canadians' money. I wonder how many water bombers we could have bought and had fully crewed to be operating in B.C. right now to look after forest fighters.

Look at NATO and NORAD. They are our trusted allies. NATO and NORAD have asked us for years to contribute our 2%. We even passed a resolution in the House to do so, but we have not contributed. Because of that, we do not have a seat at the table. What happens to international security if we are not at the table? We will also not be at the table when it comes to international trade because our trading partners will work only with partners who work with them for security.

What is happening up north right now? The fact is that we do not have a base. We cannot even land an F-35 fighter in the north right now in Canada? We have jets being purchased, but it has taken 10 years. Remember when we said that the F-35 was too much? The Prime Minister said we were not going to buy it, and nine years later, of course, we are buying it for how many billions more? However, we cannot even land the thing in the north. Finland is buying half as many F-35s as we are, and it has already built a runway to land in the north to defend the northern border.

We talk about icebreakers in the north. We have one barely functioning icebreaker. Do members know how many icebreakers Russia has in the north right now? It has sixteen. Do members know how many China has? It has forty. We did not have the common sense to put any money toward our security or the north, which we really need in order to play our part in NORAD and NATO, on behalf of our allies in the U.S. and, of course, just for our security.

We have talked about drugs in hospitals. We are saying that smoking crack at a hospital or bringing in a weapon should be outlawed. More importantly, I visited Millhaven maximum security prison in Kingston only two weeks ago; three inmates there were high on drugs.

After nine years, we have mergers and more mergers under the government. We talk about competition. Part of the bill is about competition. However, under the government's watch, the merger of HSBC and RBC was approved. Because of that, mortgage rates have gone up. HSBC used to have a mortgage rate that was 1% lower than RBC's offering. Right now, that is costing the average taxpayer, who has a $500,000 mortgage, $300 more a month because that merger was approved.

We had WestJet buy Sunwing. Only a couple of months later, it was announced that Sunwing was going to shut down. There is only one competitor in the west. Sometimes it is Air Canada; most of the time it is WestJet. We had Rogers buy Shaw. What happened two months ago? It was announced that cellphone prices were to go up nine dollars a month. When we look for competition, it is not there.

The bill would bring in some aspects of competition. Thanks to the Competition Bureau, and dare I say, some amendments by the NDP, we are going to look at ensuring that we have no mergers approved that have a market share of over 30%. At the end of the day, the government has approved more mergers.

Open banking is probably the closest thing we can have to actual competition coming to one of our oligopolies right now. Open banking in Canada would open up the doors for Canadians to bring them financial freedom. One example is this: If Canadians have a Wealthsimple account, they have to screen scrape and find different ways to get through it. The government makes it really difficult for people to try to use a new banking app. This app right now pays Canadians 5% on their cash balance daily. What is the average bank interest rate right now? It is 0.2%. I think if someone had $10,000, over 10 years, they could make $100. Competition is freedom for Canadians. Open banking was not in the fall economic statement or in the new budget, to make that a reality for Canadians.

We are talking about no common sense. The government has hired 100,000 employees, a 40% increase since 2015. However, it takes 58 days to get an email back from CRA, compared with 43 days in 2015. Someone should try getting a passport. There has been no efficiency. There is more government and less efficiency.

On housing, the $4.4-billion housing accelerator has not built one home. We have a lack of skilled trades. Here is my favourite stat from last year, as we are talking about no common sense. We brought 1.3 million immigrants to Canada, new Canadians, permanent residents and TR. Do members know many home builders we brought last year? It was 4,300, and we wonder why we have a housing shortage.

We need immigration. Our birth rates are extremely low. We need people to come in, but when we are looking at immigration, let us make sure we are also looking at building homes first, so we have a place for people to go and house prices do not go sky-high. We even had the member for Winnipeg North say that MAID has saved lives. That was a statement used. There is no common sense.

Another one of my favourite examples is that the government has cut the budget to the Information Commissioner at a time when access to information is at an all-time low. The Ethics Commissioner had their salary cut when the workload has never been higher. Common sense is not common. Canadians have common sense, but the government does not.

It will only be in electing a common-sense Conservative government that we once again restore common sense to Canada and to Canadians. Of course, we will axe the tax, build the homes, fix the budget and stop the crime. We are also going to create competition for a change, for my home, for everyone's home, for our home. Let us bring common sense home.

[Jenica Atwin, Liberal, Parliamentary Secretary to the Minister of Indigenous Services]

Madam Speaker, I greatly thank my colleague for his rousing speech this evening.

I am sure this is on the minds of all members in this chamber: When will the member treat us to another homemade rap video? I would really love to see that.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Madam Speaker, we cannot always flaunt our skills. We say it is thanks to the speNDP helping the government “jiggle jiggle”.

We have so much more we can do in the government, and I think, slogans or not, the main thing we want to do here is work on behalf of Canadians. Canadians are screaming for change. They are screaming for a government that is going to look after them to ensure that they have housing and a good standard of living. No matter what our skill sets are, we will work on behalf of Canadians.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Madam Speaker, I would like to compliment my colleague on his speech. I certainly did not agree with some of the content, but the volume was there.

Over and over again, he talked about common sense, finding solutions and what we need to do to make Canada better, and I think all of us in this place have that goal. We are all trying to find ways to make Canada better for Canadians. Obviously, we do not always see that in the same way, but that is the goal that we are all here trying to achieve.

From my perspective, I think that my constituents want me to work collaboratively and find ways for solutions. That is why the NDP will often work with the government to bring things such as dental care or pharmacare forward. One of the things that really upset me last week was that I was on the health committee that travelled around the country to look at solutions to the toxic drug crisis we are facing in Canada, and shockingly, when we were in Calgary meeting with people who use drugs and people who help folks who are trying to get off drugs and trying to rehabilitate, no Conservatives came. Not a single Conservative showed up to learn from experts, to learn from medical experts or to learn from people who work in this field. It is shocking, and I wonder how he finds that to be a common-sense solution.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Madam Speaker, I come from Belleville, Ontario, and we are at the centre of an opiate crisis right now. We have a major overdose epidemic. In the last three months, we had 240 overdoses. We had 13 in two hours. We had 23 in two days. As an MP, I have been working with the former Liberal member, the mayor of Belleville, Ontario. I have been working with and talking to community groups and those who are addicted and struggling, as well as police, paramedics and our hospitals.

The problem we have is twofold. We talk about how the NDP has supported the government with bail reform, and the police are saying it does not work. The NDP has supported, especially in B.C., decriminalization, and these community groups are saying that does not work. One of the first things we can do is ensure we give the tools to the police and the community groups that make sure that the criminals who are dealing drugs go to jail and stay in jail, and that those who need help in treatment of addiction get the treatment of addiction so we can bring our loved ones home drug-free.

However, most importantly, the NDP can defeat the government and call an election so we can have these issues come to the open, and we could bring a government back to Canadians that would fix these issues once and for all.

[Louise Chabot, Bloc, Thérèse-De Blainville, QC]

Madam Speaker, that was a very passionate speech. I think the Conservatives have made their stance on the carbon tax abundantly clear. It sank in a few months ago that they do not want it. They want to abolish it. Fortunately, it does not apply in Quebec.

This tax is meant to fight climate change. If the carbon tax goes away, how exactly will the Conservatives fight climate change?

[Ryan Williams, Conservative, Bay of Quinte, ON]

Madam Speaker, we believe in having Canadians create technology that would solve some of these issues.

The big example we have is Ontario, where 20 years ago we had coal-fired gas plants firing up all our electricity, and the provincial government at the time decided to change all of those plants to natural gas plants. I remember when I was a kid growing up, we had smog and poor weather advisories, and those do not exist anymore because the plants were eliminated. We talk about what we can do to replace them. A lot of Canadians do not know that we burn coal in the east coast to fire 80% of our electricity. That is still coal use. Our biggest export to China is coal, so if we just replaced coal with LNG and then gave it to the world, which is screaming for it, as it is burning coal, that would do way more than the government's doing, which is really nothing, for the environment.

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Madam Speaker, before I get into my speech, I just want to say this. Last week, we lost Darren Dutchyshen. He was only 57 years old. He anchored TSN SportsCentre for decades. Darren was bigger than life. As a former broadcaster, I competed against him in Saskatoon. Darren was the pride and joy of Porcupine Plain, Saskatchewan. To see an individual come from a very small community in this country and make it to the top, the voice of SportsCentre, speaks a lot about Darren Dutchyshen.

I just wanted to say to all the TSN family that it has been a rough week for all the broadcasters in this country. It has been a tough week for us because Darren was, as I said, bigger than life and gone at 57 years of age, which is way too young. We are with him and his family and all of those here tonight. I just wanted to say that, being a former sportscaster. Darren actually came through STV. He competed against me and did very well. He went on to Edmonton, and then made his career for good in the city of Toronto.

It seems funny tonight that I am standing here on the fall economic statement, nine months later in the House, yet the Liberals are blaming the Conservatives for the nine months. They are in charge of the agenda. They could have moved this long before May 21. It is ridiculous. Here we are tonight, May 21, talking about the fall economic statement, which happened eight to nine months ago.

We all know that we are facing a crisis across this country. It is an affordability crisis. It is an inflation crisis and a housing crisis. By the way, tonight was the first time I have heard, in over two years, the Liberals admit that they are at fault for the housing crisis in this country. That is the first step. They have known they have blown the housing industry in the last three years. They have only been in government nine years, but tonight was the first time I listened to a number of MPs who said that they are at fault for the country's dismal housing situation. That is the first time we have heard it. They know it. That is why they are reeling in this country, being 20 points behind in the polls. They have finally listened. They have not done the job for the last nine years, and the public knows it.

We know the root of the crisis. It is the Prime Minister. We heard from the Deputy Prime Minister and their Liberal-NDP government. It is the reckless spending, the red tape, the carbon tax. I heard today that inflation is down to 2.7. The Bank of Canada is still at a big rate, if one goes and borrows money. It is 5%, 6% and 7%. In fact, if one wants a used car, it is 9% and 10%. These rates should have been down long before now. They were going to come down in December or February. They were going to come down in April. We are now hearing that they might not come down. Maybe it will be September. It could be at the end of the year, 2024. These guys across the aisle are flushing money out as fast as they can. They did not need to have a deficit of $39.5 billion this year. There was no need for that.

The families, the small business owners, the single parents, the young graduates who are going to graduate in May and June, and so many others, are struggling today to get by. Do we know what this budget is going to do? To make it worse, this year, $414 billion of Canada's $1.4 trillion in debt will all be refinanced. What did I say about when these guys were spending money at 1.5% and maybe 2%? The interest rates are now at 5%, 6% and 7%, so they go refinance this. The costs are ballooning for all Canadians after nine years of the Prime Minister and nine years of the Liberal-NDP government.

Rent and mortgage payments have doubled across the country. Interest payments, like I mentioned, are sky-high and are not coming down. The cost of living everywhere continues to rise, coast to coast. For two years, Canadians have been suffering from the highest levels of inflation we have seen in decades. We have talked all night long about groceries. Someone goes into the grocery store and gets a bag of groceries. If they are lucky, it is well over $100, and that does not include meat.

The cost of gas is so high. We have encouraged the government to take the taxes off starting now and through to August, to give families a chance to go on a summer trip. However, the government has raised the tax all over this country, and gas is expensive. I think it is going to go to $2 this summer. Right now in Ottawa, it is $1.65. In B.C., it is $1.90 and going up.

The damage that the Prime Minister has done is being felt across the country. I am going to read what some people who have contacted our office through mailers have said. A number of constituents have responded to us. I am going to name them, though I will not name their last names for confidentiality.

Amanda tells me that she is 25 years old. She cannot afford a house today. She and her boyfriend are both professionals but cannot afford a down payment. That is the story. Canadians need a lot of money down now if they going to buy a home in Saskatchewan worth $300,000 plus. Tim and Tanya say that the cost of living is a crisis. They are moving into their 70s and are deeply concerned. Emma says that the current government is a real embarrassment and that our country has a terrible debt issue right now. Elaine has noticed people are starting to lose their homes due to the high interest rates. Luke says that we have big problems with housing, rental prices, rising interest rates and mortgage rates.

However, the one that got me came from Samantha, who wrote to me saying that she is a student, and the rent in Saskatoon has gone up $500 this year. Where is she going to get the extra money? That is a problem we are seeing: students faced with a big increase in rent.

There is another thing that really disturbs me in my province right now because we provide the food for the world. We in Saskatchewan are so proud of our producers who are putting in the crops right now. We have had some rain, which has been good. We are proud of our farmers in Saskatchewan.

What I am not proud of, because of nine years of Liberal neglect, is needing food banks in every community. Small towns are running out of food on their shelves. In Saskatoon alone, there are the head office of Nutrien potash, K+S Potash, and BHP potash, the biggest producers in the world, and 23,000 people a month are visiting our food bank. Let us think of that: 23,000 people a month in a population of less than 300,000. It is disturbing.

I blame the Liberal government for it. It has not done its job in the last nine years. Now it is panicking with about 12 to 18 months left in the mandate that it has. It is even worse with all the long-term consequences, all of the deficit spending and all of the debt we have. I really also worry about the social programs. We are paying more today on debt than we are for health transfers to each of our provinces and our territories.

The federal government will spend over $54 billion servicing the federal debt. That is more than the federal government spends on health care with its transfers. The number is only going to go up. The Prime Minister spends more and more. In saying that, I am disappointed that we are talking about the fall economic plan, as I mentioned, nine months later. It is up to the government to move fast.

I was proud tonight to talk about Darren Dutchyshen.

I was also proud to represent Saskatoon—Grasswood, which will soon be called “Saskatoon South”, as we will not vote for the disastrous Liberal-NDP government.

[Alexis Brunelle-Duceppe, Bloc, Lac-Saint-Jean, QC]

Madam Speaker, I really enjoyed my colleague's speech.

There were a lot of numbers in his speech, which is great. He shared one number that I liked. He talked about the polls and said that the Liberal Party was 20 points behind the Conservative Party in the polls. What he may have forgotten to mention is that there is a place in Canada called Quebec, where the Conservative Party is not first or second, but third in the polls.

My question is quite simple. Is that because the Conservatives see Quebec as a province like the others, or do the Conservatives see Quebec as a distinct society, a nation? Do the Conservatives have anything to offer Quebec that is different from what they have to offer the other provinces?

[Kevin Waugh, Conservative, Saskatoon—Grasswood, SK]

Madam Speaker, yes, as Conservatives, we have a lot of work to do to get votes in Quebec. We know that. We have a good section in Quebec City. We have about 10 Conservatives from that province. We have a great base, but more needs to happen. We understand that. We have some great MPs here. We want more in 2025, if we go to the polls, and I think we can get more. Right now, the polls are very good in Quebec. However, as we know, when we flip the switch, anything can happen during an election time. We have not forgotten about Quebec, and we will be there in 2025.

[Taylor Bachrach, NDP, Skeena—Bulkley Valley, BC]

Madam Speaker, through you to my colleague from Saskatoon—Grasswood, he mentioned the fact that gas prices are going up dramatically this summer, yet that dramatic increase will be totally independent and unaffected by government taxation. What is happening is that the oil and gas companies are once again going to gouge consumers. Every time they unilaterally raise the price of gas by tens of cents on long weekends and over the summer months, Conservatives are absolutely silent, even though the impact of that price gouging far outweighs the impact of any government taxes.

Why do Conservatives give a free ride to the oil and gas companies that are gouging consumers? Interestingly, under a Conservative government, the U.K. put in place an excess profits tax and then took those revenues from the oil and gas companies and drove them into affordability measures to help average folks. However, these Conservatives continually give the oil and gas giants a totally free ride. Why is that?