Bill C-19

Canada Groceries and Essentials Benefit Act

An Act to amend the Income Tax Act

This enactment amends the Income Tax Act in order to increase the maximum annual Goods and Services Tax/Harmonized Sales Tax credit (GSTC) amounts by 50% for the 2025-2026 benefit year. It also amends that Act to increase the maximum annual GSTC amounts by 25% as of the 2026-2027 benefit year for a period of five years.

Canada Groceries and Essentials Benefit Act

[Ruby Sahota, Liberal, Brampton North—Caledon, ON]

moved that Bill C-19, An Act to amend the Income Tax Act, be read the third time and passed.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Mr. Speaker, I seek unanimous consent to split my time with the member for Coquitlam—Port Coquitlam.

[The Deputy Speaker, Tom Kmiec]

Is it agreed?

[Some hon. members]

Agreed.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Mr. Speaker, today we are debating an issue that directly affects the daily lives of millions of Canadians, specifically, the ability to feed one's family, pay for groceries and meet basic needs with dignity. Behind the numbers, the budget tables and the partisan debates, there is a very real human reality. There are parents who count every dollar at the checkout, seniors who worry about seeing their savings dwindle and workers who, despite their efforts, feel as though the cost of living is rising faster than their wages.

My speech today will be divided into two parts.

I would first like to take a few minutes to talk about my riding, Beauport—Limoilou, because the decisions we make here must be based on the practical realities of the communities we represent. Beauport—Limoilou is a rich and diverse riding. It is home to families, workers, seniors, young people and a large proportion of people living alone. This riding brings together two distinct living environments that exemplify urban diversity.

There is Beauport, a predominantly residential area that is home to many families. In several neighbourhoods in Beauport, nearly one in three households is made up of families with children, which explains the importance placed on schools, local services and quality of life.

Then there is Limoilou, a vibrant, dense urban area with deep roots in community life. One fact worth noting is that Limoilou is the part of Quebec City with the largest number of seniors living alone. In some neighbourhoods, more than half of all households are single-person households. This has real-world impacts. Living alone often means living on one income and spending a greater share of the budget on housing and everyday expenses. Most Limoilou residents are renters, so housing is a particularly important issue.

Despite their differences, Beauport and Limoilou share common concerns. Overall, the riding has a significant share of households that spend more than 30% of their income on housing. Beauport—Limoilou is also a riding with a strong community spirit. Local organizations play a vital role in supporting citizens and maintaining social bonds, particularly in dense urban areas.

This snapshot of Beauport—Limoilou reflects the reality of millions of Canadians. Last Friday, I visited the organization Entraide Agapè, which is located 400 metres or so from my constituency office. It is a food bank that needs our help. This organization provides support to more than 100 people a week, with the assistance of over 100 volunteers.

Over the holidays, I visited almost every private seniors' residence in my riding. What did they tell me? They told me to think of them. They told me not to forget them. Today, I want them to know that we are thinking of them. We are thinking of everyone.

We cannot forget the fact that, even within a single riding, needs vary and must be taken into account in our collective thought process. The government has already found ways to support citizens, particularly in terms of housing, income support and services. Other supports can and must continue to be discussed here in the House, in light of the reality on the ground. With that in mind, I will continue to reflect on the measures we have put in place and those we can still improve for Beauport—Limoilou and the country as a whole.

The global economy is volatile. Supply chains have been weakened by the pandemic, extreme weather events are becoming more frequent and widespread, and geopolitical tensions continue to affect food prices. On top of that, hard-working people who contribute to our society are feeling less able to afford the necessities of life. Bill C-19 was designed with them and millions of others across the country in mind. While overall inflation is moderating, food inflation remains high. Low- and moderate-income households are still the hardest hit. In light of this reality, our government has made a clear choice to take targeted, responsible and effective action.

Bill C-19 amends the Income Tax Act to create the Canada groceries and essentials benefit. This new benefit builds on an existing and well-known mechanism, the GST credit, to quickly provide financial support to those who need it most. This is a meaningful solution that will really help people. It is the best vehicle to reach Canadians quickly.

In practical terms, this measure will provide a one-time top-up payment equal to a 50% increase in the annual 2025-26 value of the GST credit in the spring of 2026. It will provide immediate, tangible support to millions of families. Starting in July 2026, the value of the benefit will be increased by 25% for five years.

In total, $11.7 billion will be invested over six years to support more than 12 million Canadians. This will provide up to an additional $402 to a single individual without children, $527 to a couple and $805 to a couple with two children. These amounts are not theoretical. In Beauport—Limoilou, they mean more balanced meals, less financial stress and more flexibility to deal with unforeseen circumstances.

A key aspect of this bill is that it is simple and efficient. Recipients will not have to fill out complex forms or take additional steps. All Canadians need to do is file their taxes. This support will be issued automatically, on a quarterly basis, which helps ensure predictability and stability for households.

This benefit does not replace our other support measures. It is the newest addition to a coherent suite of public policies aimed at improving affordability. These policies include the Canada child benefit, the guaranteed income supplement for seniors, the Canada disability benefit and Canada's national school food program. I should also mention the Canadian dental care plan, since 27,055 Canadians in my riding are already enrolled.

In the riding of Beauport—Limoilou, where the median household income is about $60,000 a year, that number is very telling. It shows two things: first, that these programs meet a real need on the ground, and second, that we must step up our efforts to reach out to the many other Canadians who are eligible for these programs.

Some will say that these measures do not go far enough, but we cannot forget that food banks, community organizations and frontline experts have clearly called for direct support for food and essentials. Bill C-19 answers that call. These measures, combined with the Canada groceries and essentials benefit, form a strong safety net for households. These are conscious policy choices made in response to what we have heard and practical needs on the ground.

Bill C-19 is not just a short-term response. It is part of a broader vision of economic resilience. In addition to providing direct support to households, our government is investing in Canadian food processing, strengthening our supply chains and supporting our agricultural producers. These investments are a critical part of stabilizing prices in the long term and making us less vulnerable to global shocks. Bill C-19 is one more tool to give them the support they deserve.

This bill asks the House a simple question. Are we prepared to provide meaningful support to Canadians in need? Are we prepared to take tangible action to improve accessibility?

Personally, I think the answer is clear. Yes, we must act. Yes, we must support families, seniors, workers and vulnerable people. I urge all MPs to support Bill C-19, not for partisan reasons, but out of a sense of responsibility, solidarity and social justice, because, ultimately, making life more affordable—

[The Deputy Speaker, Tom Kmiec]

The hon. member for Swift Current—Grasslands—Kindersley.

[Jeremy Patzer, Conservative, Swift Current—Grasslands—Kindersley, SK]

Mr. Speaker, the cost of groceries continues to rise quite rapidly. When we go to the grocery store, it is quite alarming how expensive just one bag of groceries is. Conservatives certainly support the concept of helping people be able to buy those groceries, but the bill would not actually lower the cost of groceries.

The Liberals would be borrowing money to give to Canadians to help them buy groceries. With the way the benefit works, it would basically work out to an additional $10 a week for Canadians. We know that $10 does not buy much of anything at the grocery stores these days. Would the member not agree that trying to lower the cost and the price of groceries would be a better idea than borrowing money to give to Canadians?

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Mr. Speaker, in life, we only control what we can control. What we can control is putting money back in the pockets of our constituents. That is what we are doing now in the easiest and fastest way. We trust Canadians to use that money where it is needed.

The other night, at a committee, I was listening to economists discussing and questioning certain things. There were calls for the payments to be monthly instead of quarterly. My reply was that Canadians do not care about whether they are going to get the money every month or every quarter. What they want to know is if they are going to get it at all, because they need it. That is what people are telling me on social media. They need that money.

This money is on top of the programs we have already established, like the food programs, the dental care programs and the programs to help seniors. We are making sure Canadians have more power.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Mr. Speaker, obviously, the Bloc Québécois strongly supports this measure. It will help those who need it. I have two questions for my colleague.

First, this measure will cost nearly $12 billion over six years, and the first payment will cost $3.1 billion. Why did the government not think to include this in the budget it tabled just three months ago? We want to have a clear picture of public finances so we know where we are headed. We already have a $78-billion deficit. Why was this not taken into consideration?

My second question relates to the answer my colleague just gave. Yes, people welcome the fact that they are receiving more money, but if they received this money every month, it would be even more helpful. Why? Those who need it use it to pay for groceries. When the benefit is paid out every three months, people max out their credit cards and accumulate interest. If it were paid out every month, they would have to pay far less interest. Why not make it a monthly payment?

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Mr. Speaker, I am very pleased to hear that there is no partisanship here. This measure will be adopted for the people, for Canadians. As for the second question concerning quarterly or monthly payments, that is exactly what I was talking about earlier.

Unfortunately, some people or members are out of touch with reality at times. I had children, and government benefits were paid quarterly. No one ever heard me or my spouse ask why they were paid quarterly and not monthly. What we got out of it was predictability. We could budget for those benefits. We could include them in our budget. It made no difference whether they arrived every three months or every month.

The important thing here, in this debate, is to make sure that Bill C-19 passes so that the money gets into people's pockets. That is what they asked me to do. That is what is important, not whether the money is paid out monthly rather than quarterly.

[Pauline Rochefort, Liberal, Parliamentary Secretary to the Secretary of State (Rural Development)]

Mr. Speaker, I am very impressed by the way my colleague is defending the interests of his riding of Beauport—Limoilou.

I was wondering if he could elaborate on the main recommendation of Food Banks Canada.

[Steeve Lavoie, Liberal, Beauport—Limoilou, QC]

Mr. Speaker, the recommendation was to help Canadians. I see this in my riding. I checked recently and I found that 27,000 people in my riding are enrolled in the dental care plan. We know that just as many still need to register. That is a real need.

As for food banks, I visited Entraide Agapé, which is just a few steps from my office. The people who were there need assistance. The centre itself needs staff and volunteers; it needs funding and help from us.

We will be helping them with Bill C-19. We will be able to provide direct assistance to food banks so that they can help people put food on the table.

[Ron McKinnon, Liberal, Coquitlam—Port Coquitlam, BC]

Mr. Speaker, I would like to thank the member for Beauport—Limoilou for sharing his time with me.

It is my pleasure to take part in this debate today on Bill C-19, the Canada groceries and essentials benefits act. As we all know, advanced economies around the world are facing complex economic challenges, and Canada is no different. Rising protectionism in the form of tariffs, supply chain disruptions and climate change are all posing significant challenges to the Canadian economy, and Canadians are feeling the impact in their daily lives.

In response, our new government is moving Canada's economy from reliance to resilience, but we understand that some of the biggest long-term payoffs in this transformation will take time to be felt. To ensure Canadians have the support they need right now, we have introduced a series of new measures to limit pressures on costs, including making groceries and other essentials more affordable.

The bill I am here to talk about today will help more than 12 million low- and modest-income Canadians afford day-to-day essentials. The support will be indexed to inflation and builds on the goods and services tax credit to provide $11.7 billion in additional financial assistance over six years. To help address affordability challenges, the benefit will provide a one-time top-up payment equal to a 50% increase in the annual 2025-26 value of the GST credit. This support will be paid out as early as possible this spring. It will deliver $3.1 billion in immediate assistance to individuals and families who are already getting the GST credit.

There is more. In addition, the value of the Canada groceries and essentials benefit will increase by 25% for five years starting in July 2026. This expansion will deliver another $8.6 billion in support over the 2026-27 to 2030-31 period and will ensure the benefit goes to 500,000 new individuals and families. Taken together, these measures will provide up to an additional $402 to a single individual without children, $527 to a couple and $805 to a couple with two children. At these levels, our government will be offsetting grocery cost increases beyond the overall inflation rate since the pandemic.

Let me provide a couple of examples of what this assistance would look like. A single senior with $25,000 in net income would receive a one-time top-up of $267 plus a longer-term increase of $136 for the 2026-27 benefit year, for a total increase of $402. In total, this senior would receive $950 for the 2026-27 benefit year, including the top-up. A couple with two children with $40,000 in net income would receive a one-time top-up of $533 plus an increase of $272 for the 2026-27 benefit year, for a total increase of $805. In total, they would receive $1,890 for the 2026-27 benefit year, including the top-up.

After the one-time payment is made in the spring of 2026, eligible families and individuals will receive the enriched regular payments under the Canada groceries and essentials benefit as of July 2026. The benefit payments will arrive quarterly to ensure families can use the funds to help with their day-to-day expenses. To simplify this benefit for Canadians, recipients will not need to apply for the additional payments, but will be required to file their 2024 tax return to be able to receive the top-up. Recipients will need to file their 2025 tax return to receive the increased Canada groceries and essentials benefit payments as of July 2026.

As we know, this benefit is one example of the many ways we are supporting Canadians during these unprecedented times. It will be in addition to existing benefits, such as the Canada child benefit, the Canada disability benefit and the guaranteed income supplement, which are already providing relief to millions of Canadians.

The government is committed to limiting pressure on everyday costs for Canadians. Budget 2025 outlined how we will spend less on government operations and cut waste so we can invest more in growing our economy and protecting essential programs and initiatives that make life more affordable. There are programs and initiatives like the national school food program, which we are making permanent so that it can continue providing meals for up to 400,000 children every year. We are renewing the Canada Strong pass to help families and young people travel and explore Canada for less, and we are launching automated federal benefits that will reach up to 5.5 million low-income Canadians for the 2028 tax year.

Bill C-19 also builds on measures we have introduced to lower costs for Canadians and protect essential programs like cutting taxes for 22 million middle-class Canadians, eliminating the GST for first-time homebuyers on new homes under $1 million, lowering the GST for first-time homebuyers on new homes between $1 million and $1.5 million, and cancelling the federal consumer carbon tax.

Affordability measures, especially those related to food, require immediate support for Canadians. As previously mentioned, it is estimated that 12.6 million individuals and families would benefit from the new Canada groceries and essentials benefit, representing a material support to Canadians who need it the most while the government's plan to build the strongest economy in the G7 takes effect.

The government is focused on building a stronger economy to create more career opportunities and higher wages. In parallel, we are limiting cost pressures to make life more affordable. That is how we will empower more Canadians with greater certainty, security and prosperity, now and into the future.

I urge all hon. members to pass Bill C-19 without delay, so that we can ensure Canadians get this much-needed relief as soon as possible.

[Ted Falk, Conservative, Provencher, MB]

Mr. Speaker, the Liberals say they are trying to help Canadians who need assistance because of the crisis that they have created in this country with affordability. We know that the cost of food and groceries has increased exponentially and that it is creating a real hardship for many Canadian families.

Does the member not realize that there is a much simpler way to address the problem than just another social program, and that the problem really could be resolved quite easily if the Liberals would be committed to eliminating the industrial carbon tax, the fuel standard tax and the front-of-package labelling tax, which are costing manufacturers a lot of money and being passed on to the consumer?

[Ron McKinnon, Liberal, Coquitlam—Port Coquitlam, BC]

Mr. Speaker, I would not agree with the causes of the high price for food that the hon. member mentioned. It is more realistic to understand that the high prices for food at this time are due more to tariffs, climate change and things like that. This program is not intended to be a magic bullet that will solve all the problems. This is a program that will help people to weather the storm while our other major undertakings take root and prosper.