Mr. Speaker, I am so happy that our ridings share a border.
Today we are debating Bill C‑8, which contains a series of legislative measures that the Minister of Finance presented during the economic update in December.
I will use my time today to talk about the economic update as a whole, including what the government did to prevent the worst economic impacts of the pandemic, the legislative measures in the bill, and the important role of economic growth in ensuring the financial viability of our country and its ability to provide major social programs in the future, especially in certain areas that I think would be beneficial for the government.
When we are discussing this bill, it is important to take a step back to look at March of 2020. We were faced with one of the biggest economic challenges of our time. Indeed, it was the worst economic crisis since the Great Depression. At the time, as we were learning more and more about this novel virus COVID-19, the government really had two options. The government could intervene and help support the economic stability of the country by supporting individuals, businesses, provinces and territories, or it could take a bit more of a laissez-faire approach and say that there would be some economic harm, but the government would hold back some of its spending. It would be what it would be.
I compare those two strategies because, although the economic crisis of 2008-09 was different, the approaches that those two governments took, the Harper government then and our government now, are completely different. I say that because we saw the economic scarring at that time. The Harper government did not intervene with the necessary liquidity at the time, and it took years to return to our economic prosperity, to where we had been prior to the challenge.
Let us compare and contrast that to this government. Yes, it is a different crisis, and we intervened hard and put money on the table to make sure that people were taken care of.
As we will see here today, as we go through the different measures the government introduced, we have now returned to our prepandemic GDP and we have returned to having more jobs than were lost at the height of the pandemic. I want Canadians and parliamentarians to think about that as we discuss this bill here today and reflect on where we are now and where we have come from.
I remember it. I remember being at home in my riding of Kings—Hants as a new member of Parliament, recently elected in 2019. Actually, you and I both were, Mr. Speaker. I remember wishing and wanting to be here, but being privileged to have the opportunity to represent my constituents in a virtual manner. I remember how quickly the government moved to put measures in place, whether it was the Canada emergency response benefit, which made sure that individuals who were losing their jobs as a result of the pandemic could take advantage, or the wage subsidy, which was provided to businesses as their economic situation changed.
It was a very uncertain time, as we can all appreciate as parliamentarians. I have countless stories, whether about the CERB benefit helping a family get through that difficult period or the wage subsidy. Businesses owners have said their businesses would not be here today if it were not for that government intervention.
I was in Windsor last week to see Mermaid Theatre. For Canadians watching who may not know, Mermaid Theatre does tremendous work. It is a puppet show. It goes around the world plying its trade right out of little Windsor, Nova Scotia. If we had not been there with those wage subsidies, Mermaid Theatre company would not exist today.
Instead, it has been supported through the pandemic. It is now pivoting to online learning and the ability to put their puppet shows in a digital format because of the support our government gave to get it through that period. It is using innovative technologies to provide their work around the world because it is limited in its ability to go to theatres and have 3,000 people in the audience. That is just one example.
I want to talk about the Canada emergency business account. Again, it is another tool to help provide that liquidity for businesses. Members will recall that 25% of it is a grant contribution if businesses are able to pay back that amount. We have now extended that deadline to December 31, 2023.
I like to call it as I see it in the House. The government is not perfect. The government on this side is not perfect, but we headed programs that were by and large meeting the needs of Canadians. There were some businesses that did not meet the criteria of what we put out. That is why we focused on the regional relief and recovery fund. This was administered through the regional development agencies. In our area of Atlantic Canada, that was done through the CBDC, the Community Business Development Corporation.
The CBDCs worked with businesses. Perhaps a business did not need $40,000 worth of loan and it only needed $10,000 to see it through. The CBDCs could work with businesses that were not otherwise meeting the criteria in the programs. It is an extremely beneficial program.
I want to credit our former minister of economic development, who now serves as the Minister of Foreign Affairs. There was a provision that allowed for the equity the CBDCs were earning to actually stay with them. Those monies would be returned and will be available for small initiatives for businesses across the country.
We have had a lot of conversation about seniors here in the House. It is a very important topic. In my riding of Kings—Hants, we have a large proportion of seniors. I want to highlight that during the pandemic, notwithstanding that there remain challenges, we were there for them.
We gave a $300 top-up to those recipients under old age security. We gave a $200 addition for those who were under the guaranteed income supplement. We have increased the old age security by 10% for those who are 75 and up, and we are pledging to increase the guaranteed income supplement by $500. It is part of the platform commitment of the government. Of course, as was highlighted in the economic update, there was also an important measure to reduce and eliminate the clawbacks for those seniors who were being impacted because of the pandemic benefits.
We were also there for essential workers with some of the benefits that we were putting on the table. There is a lot in it. Parliamentarians in this House collectively passed these measures. I know with some members of the Conservative Party, I found something frustrating. I will go on the record and perhaps some members who are in the House today can have a back and forth with me when we get to questions on this.
In one breath, the Conservative Party of Canada would say that Liberals were doing too much and putting too much water on the fire, saying we were helping Canadians too much. Then we would hear, literally the next question in question period, that our government was not doing enough. It was that inconsistency that members on this side of the House have asked members of her Majesty's loyal opposition to pick a lane and decide what they stand for as it relates to economics. Perhaps we can engage in that later.
I want to talk about what the government's efforts have resulted in for Canadians who are listening at home. I mentioned before that 108% of the jobs lost at the height of the pandemic have been returned. We have actually created more jobs than were lost during the pandemic. We can compare that to the United States, for example, our cousin to the south, and they stand at 84% right now. We are doing well in terms of the returns of jobs. In fact, as I will get to in my remarks, we have to do more to bring Canadians here to fill our job vacancies because of the economic success we are having right now.
The economic update has projected a return to prepandemic levels of GDP. I believe the Minister of Finance answered a question yesterday stating that is the case. Notwithstanding, we know there are challenges with omicron. We have maintained the best net-to-GDP ratio in the G7. Of course, the Department of Finance is projecting a declining debt-to-GDP ratio over the next five years. Importantly, Canada has maintained a strong credit rating throughout this entire pandemic.
The Minister of Finance has said to this House, and I believe publicly, that the best economic policy is a strong health response. We will talk about the measures in the bill, but I could not agree more with that. Members will remember the government and its work on procuring vaccines and boosters, and we will remember the rush that was happening globally to make sure those were available.
I want to give a tip of the cap to the former Minister of Public Services and Procurement, and of course I could give a tip of the cap to our current Minister of Public Services and Procurement, with regard to the tests and good work that she continues. To my colleague for Oakville who has ties to the riding of Kings—Hants and grew up in Kentville, she did tremendous work. Our government was there to make sure that those vaccines and boosters were available.
On rapid tests, the work continues. This legislation lays out $1.72 billion that can go from the consolidated revenue fund to help support the acquisition of rapid tests for the provinces that are distributing those in their respective jurisdictions.
There have been billions for personal protective equipment. Again, perhaps it is a lesson learned and a conversation for all parliamentarians about the need to improve domestic supply chains. This government worked hard to make sure that we utilized the assets and tools in Canada to make sure that PPE was available for health care workers, but also leveraged relationships internationally as well.
There are other elements around billions of dollars in health-care-related direct support during the pandemic. The COVID-19 resiliency fund was really an opportunity for provinces and territories to look at the infrastructure bilaterals that exist, pull up to 10% out of that and put it exclusively toward health-related COVID resiliency projects. I know that there have been some in my own riding. For example, Port Williams Elementary School received about $1 million for ventilation programs. There were other initiatives across the country. These are the work of our government.
I want to make sure that I also talk about the legislative measures of the bill. There are seven of them. I am going to go through them quickly, because I think they are extremely important.
First is the small business tax credit for businesses that are making investments in ventilation. We know that this is important. We are working with the provinces. That tax credit is available at up to $10,000 per location, or $50,000 for a series of organizations that might be owned by one beneficial owner. These are important investments that we are making. This pairs with some of the tax credits that were in budget 2021 around digitization that small businesses can use, particularly vis-à-vis the changing consumer behaviour of not necessarily going to the business itself but shopping online. I think that is extremely important.
We have a new refundable tax credit for farmers in the backstop jurisdictions of Ontario, Saskatchewan, Alberta and New Brunswick. This is extremely important for the competitiveness of Canadian agriculture. It is a $100-million commitment that was in budget 2021, and I am very pleased to see it come forward.
We have expanded the travel component for northern residents' travel exemptions. We know that this is extremely important in terms of their ability to get a refundable tax credit on their tax returns, and these are good measures. Especially as a rural member on the governing caucus, I can appreciate what this measure will mean.
Let us talk about the underused housing act. We know that housing is a top issue in this country. We have moved the yardstick on this particular piece of legislation to introduce a 1% tax on the actual overall valuation of property. This is not for Canadians. It is for non-residents: non-Canadians who own property that is not being used for the purpose of housing someone. It could perhaps be speculative property. This is but one of the measures the government intends to introduce in the days ahead, but I certainly give it a tip of the cap because I applaud what it could mean. Is it going to solve the issue? It absolutely will not, alone. I really think that some of this lies in the municipal jurisdiction, and in ways we can work with municipalities to expedite their development processes to give more certainty so that developers who are building houses perhaps are not delayed for a number of years. That adds costs that end up going onto the housing that, of course, all Canadians are seeking to buy.
I mentioned the CEBA extension, and I certainly mentioned some of the other elements in the bill.
I want to talk about where we are going. As a member of Parliament, I think it is extremely important that we focus on economic growth. We have taken on a lot of money during the pandemic, no doubt. The spending was there to prevent the worst economic scarring. If we are going to maintain a fiscal balance in the days ahead that has to be a key element, and I know that it will be.
There are a couple of perhaps stormy clouds on the horizon that we all need to be mindful of as parliamentarians. One is omicron. When this was tabled before the House, omicron was not something that was necessarily prevalent at the time, and it is going to have an impact on of course the economic forecast into 2022. It is also going to have a cost, and the government will be focused on the amount of money.
We have heard about additional health care funding. The government promised it in its electoral platform, and premiers are calling for it. We have to be mindful of how we make sure that spending remains sustainable over time.
We are in a protectionist global economy. We saw this before the pandemic with the Unites States and China and the tariff wars being undertaken at the time. Brexit was certainly more than an economic decision, but had the economic consequences of splitting up the European bloc vis-à-vis the U.K. and Europe. Also, with respect to the Appellate Body being able to handle appeals under the WTO, it has been been sitting and unable to move forward for a significant period of time.
We now have a government in the United States that is very consumed with its own domestic affairs. We have seen elements of the Buy America Act, EV vehicles and some of the proposed Senate legislation with COOL, the country of origin labelling, which would have impact on and perhaps concern, if it ever moved forward, our producers and ranchers in the west. We need to be mindful of that. It could have economic consequences. Our government has been there to work with challenging governments in the United States. We share strong economic ties. We will continue to do so, but we need to be mindful.
I will quickly move through the areas I think this government needs to focus on as part of what I believe to be a comprehensive economic growth strategy. The Minister of Finance's mandate letter includes words around that. I really think now is the time to pull together to perhaps work with, most importantly, the private sector, as well as different levels of government, non-profits and indeed indigenous leaders to see how we can create a growth strategy that will support the prosperity of this country in the days ahead.
We need to be focused globally with respect to our competitiveness and providing what Canada can provide to the world. That includes, as I have heard other colleagues say, agriculture, forestry, the Canadian oil and gas sector, and mining. Those are going to be major areas that we need to continue to focus on. We need to focus on allowing small and medium enterprises to think globally and leverage the trade agreements we already have.
We also need to be focused on internal trade and harmonizing barriers to increase economic efficiency. We have a Senate report that was prepared by a series of senators known as the prosperity action group. They suggest there is about 2% to 4% of GDP that sits on the table because of interprovincial trade barriers.
This is a well-trodden subject. We have been down this road before. If we look at measures in my own riding, we have a world-class wine industry and my producers say it is easier to get a bottle of wine to France or the U.K. than it is to New Brunswick. In today's society we need to be able to move that forward.
We have had tremendous co-operation with the provinces as it relates to the health response. Let us use that to also drive economic barriers that can create success as well.
Let us also talk about the regulation of professions in a way that we can harmonize them. Whether it be health care, labour, trades or mobility, those are really key areas where the government needs to go.
My predecessor Mr. Brison introduced regulatory reform in the 2018 budget. We have a good start, but we need to continue. With respect to innovating the Canadian economy, there is important work being done on the superclusters. There is more that can be done.
I will finish with SMR technology. There is more that I could say, but unfortunately 20 minutes, although I am very privileged to have it, is not enough. Canada's oil and gas sector will play an important role in the economy in the days ahead, perhaps not to the extent that it has in the past, but we need to work at leveraging SMR technology, small modular reactors, to bring down emissions in Canadian oil and gas. This is so we can continue to provide that product, which the world will need in the decades ahead. Working with the industry and innovation, is a key synergy that we should be focused on as a government.
