Madam Speaker, today we are discussing an important bill that will roll out the Canada groceries and essentials benefit. This benefit is based on the existing GST credit. It will put more money in the pockets of Canadians who need it most. People with low or modest incomes will see an increase in the amount of money they receive. We are doing this because we recognize that there is a real need to help people.
When I travel around my constituency, people talk to me about the cost of living. It is a top issue for Canadians. As a government, we have a duty to listen and take action to meet people's needs. That is why the objective of this measure is to provide immediate assistance to those who need it most. It is part of another package of measures we have put in place, in the 2025 budget and over the past few years, to help Canadians cope with the rising cost of living.
If we really want to have a long-term impact, we need to address the root causes that are making groceries more expensive today. I am very pleased that our government has announced it intends to develop a food security strategy. The goal is to increase domestic food production and ensure that more of the food on our plates comes from Canada. I would love to see more chicken from Upper Madawaska, more potatoes from Grand Falls and more vegetables from growers like Légumier du Madawaska or Jardins de Georges in Saint‑Quentin on my plate. To do that, we need to create incentives to help our food businesses.
Why is it important to reduce our dependence on international imports? When we look at the causes of food inflation, we see that there are a number of factors that go beyond Canada's borders. I am thinking in particular of disruptions to supply chains around the world that may be caused by the post-pandemic context, but also by global conflicts happening around the world. I am also thinking of the tariff disputes that are affecting supply chains and the cost of food. Also, when we import a lot of our food, like most of our produce, which comes from abroad in the winter because of our climate, fluctuations in exchange rates will have a significant impact on the price of groceries. In short, if we really want to address the root causes of rising grocery prices, we need to improve food security and help Canadian businesses increase their production.
Given the tariff war, we have earmarked $500 million in the strategic response fund to help food sector businesses cope with tariff shocks. The aim is to help these businesses avoid passing on the financial impact of tariffs to consumers at grocery store checkouts. Similarly, we have earmarked $150 million in the regional tariff response initiative to support the food sector.
As we develop our strategy, we will also review the rules surrounding unit product labelling in grocery stores. Our goal is to help Canadians make informed grocery choices and give them a good idea of the price they will pay at the checkout. We will also review competition rules. In particular, we will ensure that the Competition Bureau has more oversight over the activities of food sector businesses. Why are we doing this? It is because fair competition ultimately benefits consumers by creating downward pressure on prices.
We will also introduce tax incentives to encourage the construction of more greenhouses in Canada. As I mentioned earlier, we face a challenge here in Canada in that, with the winter, we cannot produce as many fruits and vegetables as we would like throughout the year. We want more greenhouses so that we can produce food all 12 months of the year here at home. More specifically, we will be rolling out immediate expensing for greenhouses acquired on or after November 4, 2025, and that become available for use before 2030.
This is a whole suite of measures. More measures are coming that will ensure that Canada has a proper food security strategy to address rising food costs. This is a top priority for Canadians, and it is also a priority for our government to respond to the challenges caused by soaring prices.
If we want to strengthen Canadians' purchasing power in the long term, it is important to strengthen the Canadian economy. Last spring, we were elected with a mandate to make the Canadian economy stronger, more resilient and unified.
From day one, we got down to work. We eliminated the federal barriers to interprovincial trade. Our Prime Minister travelled around the world to forge new trade partnerships with different countries and to attract foreign investment to Canada. We also included tax incentives in budget 2025 to encourage investment. For example, entrepreneurs who want to buy equipment to boost their productivity will be able to deduct more pieces of equipment on their tax returns. We also included various measures in budget 2025 to encourage innovation, such as the enhancement of the scientific research and experimental development tax incentive program. These are practical measures that increase our Canadian businesses' productivity and thus strengthen our economy.
We also announced our buy Canadian policy because we believe that the federal government must be its own best customer. We have a lot of purchasing power, and we want to use that power to benefit Canadian businesses. In practical terms, that means government investments in infrastructure. We announced a whole series of historic investments in infrastructure and housing in budget 2025, and we want to prioritize Canadian materials, such as our softwood lumber and steel. Softwood lumber is an important industry in my riding of Madawaska—Restigouche because it is at the heart of our local economy. As a government, we feel it is important to be there for the industry when it is struggling. That is why we implemented a strategic response fund to help softwood lumber companies deal with the current tariff crisis.
Why am I talking today about the need to strengthen the Canadian economy and build a stronger economy? The idea is that a stronger economy benefits everyone. With a stronger economy, all Canadians will have a shot at better career and employment opportunities, higher wages and therefore increased purchasing power. All the work we are doing to transform and strengthen the Canadian economy is for the benefit of all Canadians so that, in the medium and long term, everyone can increase their purchasing power.
Today, we are discussing the Canada groceries and essentials benefit, which is a measure based on income. I would like to mention an initiative that we put in place in budget 2025 that will help ensure that the money we are offering truly makes it into the pockets of Canadians who need it most.
We have a problem right now, which is that millions of low-income Canadians do not file an income tax return, often because of a lack of resources or support or out of the mistaken belief that they do not need to file if they have a low income. As a result, millions of Canadians are missing out on essential federal benefits that they are entitled to. I am thinking here of the new Canada groceries and essentials benefit in particular, but also of the Canada child benefit, the Canada workers' benefit and all of the other income-related federal benefits.
The solution we came up with was to introduce automatic federal benefits starting in the 2026 tax year. This program will be phased in and fully implemented by 2028. This will help an estimated 5.5 million Canadians. We are talking about people who often have very low incomes; these benefits will significantly improve their lives. The people affected will first have the opportunity to review a pre-filled income tax return and confirm whether the information is correct. Then, the Canada Revenue Agency will be able to automatically submit a tax return on their behalf. Of course, if they want to file their own tax return, they can do so. This measure is really targeted to help people who are not currently filing a tax return and therefore losing access to essential benefits that can help meet their needs.
Lastly, I want to mention that the benefit that will be implemented by Bill C‑19 is part of a whole suite of measures to help Canadians deal with the cost of living. I am thinking in particular of the middle-class tax cut that we announced at the beginning of our mandate last spring. I am also thinking of the national school food program, which we are making permanent in budget 2025, the Canada child benefit, the affordable child care program, the Canadian dental care plan and all the other social measures we have put in place over the past few years.