Bill C-38

Canadian Fuel Affordability Act

An Act to amend the Excise Tax Act (extension of the federal fuel excise tax relief)

This enactment amends the Excise Tax Act to extend the temporary suspension of the federal fuel excise tax until January 31, 2027 and to temporarily set the excise tax rates on fuels to 50% of the regular rates for the period beginning on February 1, 2027 and ending on March 31, 2027.

Canadian Fuel Affordability Act

[Warren Steinley, Conservative, Regina—Lewvan, SK]

Madam Speaker, they say that imitation is the finest form of flattery. We are flattered that the government is finally taking some of our policies to save Canadians money. That is why Conservatives came here: to make sure that Canadians have more money in their pockets.

This is my question, and the previous Liberal speaker did not answer it: I am wondering why the member voted against our motion to remove the tax on gas four or five times last session. Canadians could have been saving money for almost a year, rather than bringing this forward now.

Why did he vote against his constituents' having more money in their pockets when we brought this exact motion forward last session?

[Sukh Dhaliwal, Liberal, Surrey Newton, BC]

Madam Speaker, in fact, here is the question that I should be asking the hon. member: Why did he and his leader vote time and time again against all those measures we brought to the House, whether it was cutting the gas tax, cutting the cost for 22 million Canadians with tax relief or providing food support to schools. I can go through the list, but I know I have only five minutes. The member and his leader voted against all those measures, but Canadians were helped and they feel helped. I can tell the member about the positive response that I get on the ground on those issues.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, we know that Norway, where they created a sovereign wealth fund, has $2 trillion U.S. In fact, in royalties alone, the Norwegians generated over $300 billion last year because they took resources from a finite resource, from oil and gas, and they invested them. They have taken those royalties to do exactly the kinds of things that the government is talking about today, taking pressure off citizens when times are difficult.

Instead, what did the current government do? It created a sovereign wealth fund that took the big oil and gas companies and let them off the hook. Right now, we have record profits with big oil and gas. Does my colleague not agree that when big oil and gas are profiting with record profits because of a war, the generational wealth should be invested in a sovereign wealth fund that can be invested in programs that can help take the pressure off Canadians and pivot to investing in renewable energy? This is a generational opportunity that is being lost right now.

[Sukh Dhaliwal, Liberal, Surrey Newton, BC]

Madam Speaker, one thing that I personally know and in fact all my constituents know is that the Prime Minister knows investments. When it comes to creating this sovereign fund, he knows exactly where he is going and he is going to invest for Canadians. Canadians are the ones who will make money, and that money will be invested into the programs that the NDP cares for and always asks for. We will continue to invest in those benefits.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I have known the member for Surrey Newton for many years, and I have always found him to be a very strong and powerful advocate for issues such as tax breaks. This is one of those issues for which we are going to see a 10¢–a–litre drop ongoing until the end of January, and then five cents a litre until the end of March of next year. I know the member has also been a strong advocate for the tax break for all Canadians, some 20 million people.

I wonder if he can provide his thoughts in regard to why it is so important at a time of unaffordability that we be there for Canadians.

[Sukh Dhaliwal, Liberal, Surrey Newton, BC]

Madam Speaker, the hon. member for Winnipeg North has been a great friend and a great ally, and is always passionate when it comes to helping Canadians, including with 10¢ a litre on gasoline.

I am a small business person. My business has vehicles because it is a land surveying company, and they use gasoline. I know hundreds and hundreds of paid people in my riding who use vehicles. Because my community is a bedroom community, they commute to work. They drop off their kids at day care. They need this help. This help is badly needed. It is going to help people, whether a small business person, a plumber, an electrician, a roofer or generally a Canadian who is looking for an affordable price for gas.

On the other hand, there is the cutting of taxes for 22 million people. If we cut the tax by 1%, that is going to help them. They do appreciate and believe in the Prime Minister, and they believe in—

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

We have to resume debate.

The hon member for Vaughan—Woodbridge.

[Michael Guglielmin, Conservative, Vaughan—Woodbridge, ON]

Madam Speaker, it is always a pleasure to rise on behalf of the great people of the riding of Vaughan—Woodbridge.

Canadians are struggling with the cost of living, and every single dollar matters, whether it be the parent filling up the family car before taking the kids to school, the tradesperson driving from job site to job site or the truck driver delivering food that ends up in our grocery stores. It certainly matters to the families in my riding of Vaughan—Woodbridge who are trying to make their paycheques stretch a little further each month.

When I am at the east or west Woodbridge seniors clubs, the topic on everyone's mind is how expensive life has gotten. For seniors, OAS and CPP do not go far enough. As for their grandkids, they feel that life is unaffordable and they will never be able to get ahead.

It has been a year and a half since the Liberals were elected, and many are wondering how life has changed, how their lives have been made better. Yes, there are many global challenges that further complicate the problem, including the unjustified tariffs on our country, but many of the affordability concerns that Canadians are talking about predate this, and many of them are self-inflicted after almost 11 years now of bad government policy.

There have been many announcements from the government, but we have seen very little progress. We see a government that is great at marketing its announcements but very little action. I would submit that things have actually gotten worse. The Liberals in the last year and a half have doubled the deficit and added hundreds of billions of dollars of new spending above the reckless levels inherited from the previous disastrous Trudeau Liberal government. One need look no further than the fact that we are now at the highest levels of government spending as a share of the economy since 1996 and have the biggest deficit outside of COVID in Canadian history.

As a member of His Majesty's loyal opposition, it is my job to hold the government accountable, question its expenditures and, yes, agree where there is room to agree. Just yesterday, when I asked a question in the House on the cost of retaliatory tariffs for Canadians, the government House leader proceeded to act as if such a question was part of a “‘blame Canada’ pattern”. I mean, how dare the Conservative opposition ask a simple question of basic economics to the Liberal government? We know transparency is not the Liberals' strong suit.

Following months of Conservative calls to extend gas tax relief for Canadians, the federal government decided to suspend the excise tax on gasoline and diesel in April, providing relief of 10¢ per litre on gasoline and four cents per litre on diesel. This suspension was originally scheduled to expire after Labour Day, but the government has now introduced legislation to extend it to January 2027. For Canadians who depend on their vehicles, and for businesses that depend on affordable transportation, the extension provides additional relief. It also raises an important question about what happens when that relief expires.

Conservatives have constantly called for greater relief, and we believe the government should go even further by removing all federal taxes on gasoline and diesel until at least Canada Day 2027, which would save Canadians 25¢ per litre and provide an annual savings of $1,200 per family. I will also note that when Conservatives proposed to remove the federal excise tax on fuel for a longer time, Liberals downplayed it as having little to no impact on affordability for Canadians.

I would also like to say that I will be splitting my time with the member for Mégantic—L'Érable—Lotbinière.

How much could that wasted time and delay have saved Canadians? Let us think about it. We had a motion in this very House on this exact issue that the Liberals voted against several months prior. We have seen this before. The Liberals backtracked on their previous narrative regarding their tax policy. Exhibit A is the consumer carbon tax. As the hon. member for Saanich—Gulf Islands suggested earlier today, the Liberals are plagiarizing parts of our platform for their own, and it is no surprise that they are because that is exactly what Canadians need to address issues of affordability and the cost of living.

Fuel taxes drive up costs for Canadians, and the impact extends well beyond the gas station. When fuel costs rise, the consequences are felt throughout the economy, and ultimately, those costs find their ways into the wallets of every single Canadian.

Let us consider what happens before a family even walks into a grocery store. A farmer needs fuel to operate equipment and produce food. A trucking company needs diesel to transport that food. A distributor needs to move it to a warehouse, and another truck delivers it to a grocery store. Every stage involves transportation, and every single stage has costs.

When fuel becomes more expensive, businesses face pressure to absorb these costs, reduce spending elsewhere or pass some of those expenditures along to the customers. That is why Conservatives have been calling for the government to go further. Lower fuel costs can help families at the pump while easing some of the pressures facing the businesses that produce and deliver the goods Canadians rely on.

As someone who spent 20 years in industry, I understand the importance of getting materials from a supplier to a factory and the finished product from a factory to a customer. The manufacturing transportation costs are part of the price of doing business. It is a top-three line item on most financial statements. A company might be doing everything it can to improve productivity, control expenses and remain competitive, but it still needs to purchase fuel to move its products. When those costs rise, it can put additional pressure on the company's margins and ability to compete.

This is particularly relevant today when Canadian manufacturers are already navigating significant uncertainty in their trade relationship with the largest market, the United States. For businesses in Vaughan—Woodbridge and across Ontario, transportation costs are one of several factors that determine whether they can offer competitive prices, attract orders and maintain employment. Fuel tax relief can help with one of those pressures.

The Canadian Federation of Independent Business has also reported significant financial pressure among small businesses. Among those who considered it a bad time to start a business, 88% cited high costs, 65% pointed at taxes and 53% identified government red tape. These are Canadians who invest their savings, take risks and employ people in our communities. When their costs rise, it can become harder to expand, invest in new equipment, hire workers or offer competitive pricing.

Conservatives also called for reforms to federal permitting, taxation and regulation to address Canada's broader competitive challenges. For example, we have learned that there are over 100,000 different regulations on the manufacturing sector alone. The decisions Parliament makes on fuel taxes are a part of that discussion.

I want to turn to the experience of younger Canadians. The finance minister claimed his government is fighting every day for young people and their generation, yet a recent RBC report highlights that more than half of Canadian parents are financially supporting their adult children, giving an average of $6,100 just last year. Young Canadians should not need the bank of mom and dad to afford groceries and rent.

A significant portion of Canada's brain drain is because of the cost of living for our young people. Conservatives have raised concerns about the scale of federal spending, the deficit and the long-term costs of servicing public debt. Those concerns deserve careful consideration when the government is asking Canadians to accept that further fuel tax relief cannot be sustained beyond next spring.

Bill C-38 also presents an opportunity to consider the broader fuel tax proposal. Conservatives have called for removing all federal taxes on gasoline and diesel until at least Canada Day 2027, including the GST on fuel, while also proposing changes to the clean fuel regulations and the permanent elimination of the industrial carbon tax.

The government has estimated that extending the existing tax suspension will provide an additional $2.9 billion in tax relief. That makes the scheduled return of the tax particularly important to examine. If the government recognizes that fuel tax relief can help Canadians and Canadian businesses manage rising costs, Parliament should understand why the relief is scheduled to end on April 1.

The families I represent in Vaughan—Woodbridge are looking for greater financial security. They want to know that their children have opportunities to purchase a home, that their businesses can remain competitive and that their paycheques will cover the costs of everyday life.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, it has been a fairly good and healthy debate today on an important piece of legislation. The government recognizes the importance of collaboration. We have had collaboration to the degree that we are going to pass this bill today.

I want to recognize that in the hope that the Senate of Canada recognizes that the House of Commons has a desire to get this bill passed. Ultimately, it is all about Canadians and providing the type of support they need in dealing with the issue of affordability. I know it would make a huge difference for Canadians, and that is why I am glad to see the Conservative Party join with us in getting the legislation through today.

Can the member comment on why it is important that we see the bill ultimately pass, both here and in the Senate?

[Michael Guglielmin, Conservative, Vaughan—Woodbridge, ON]

Madam Speaker, we are facing a major affordability crisis, and in that same spirit of collaboration, we would like to see the government extend this fuel tax break even further. We would also like to see it take some of our other ideas on affordability. We have a serious problem with regulations that have a stranglehold on the Canadian economy. We need serious tax reform.

I believe it was a Liberal prime minister, Sir Wilfrid Laurier, who once said that if Canada wants to be competitive with the United States, the largest market, it is not going to be a market competition. We have to have a more competitive regulatory system and a much more competitive tax system. I would like to see the Liberals collaborate with us on those things to increase affordability for Canadians.

[Anna Roberts, Conservative, King—Vaughan, ON]

Madam Speaker, the hon. member for Vaughan—Woodbridge is doing a fantastic job. I want to ask him how he would explain to the 22 seniors clubs in our jurisdiction that 8.3% of food bank clients are seniors and that number is growing. We hear those concerns every single time we attend seniors events. They are struggling with taxes, rent and buying groceries.

We know the affordability crisis is real in this country, and yet the Liberals claim they have solved the affordability crisis. How will the member explain to the seniors we represent in our community that the Liberals did not take them into consideration?

[Michael Guglielmin, Conservative, Vaughan—Woodbridge, ON]

Madam Speaker, we see a theme here. The Liberal government spends 11 years recklessly destroying the Canadian economy and then wants to take credit for programs that it institutes to apparently help subsidize the people in the economy that it destroyed.

To answer the member's question, we need to see the spirit of collaboration on serious things like tax reform, on things that will help us build up our leverage in trade negotiations and that will help promote competitiveness. We would like to see the Liberals actually start building energy infrastructure so we can take advantage of this unique opportunity to capitalize on our natural resources, so we can lower business and personal tax for people and really target key industries and see them thrive. We have everything we need in this country. We just need the Liberals onside to promote these ideas.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Madam Speaker, again, we all agree in this House that we need to take pressure off everyday Canadians. People are struggling to make ends meet. This bill, in its intention, is a good idea, which is to remove taxes so people pay less at a time when they need help. Where I have a problem, and I am surprised the Conservatives do not join me, is that all we are doing is taking this debt of over $5 billion and punting it down the road for future generations to pick up the tab. They are the ones who are going to end up paying this, because this is going on our debt. Meanwhile, big oil and gas are posting obscene profits. We have never seen profits like this. This war is creating extreme wealth for big oil and gas and investors.

I would like to know if my colleague has talked to his constituents. He should ask them if they believe that big oil and gas companies should chip in a bit more while they have these winning profits. I know from my experience in talking to my constituents that every single one of them I talk to, every one of them, thinks that the big oil and gas companies should pay an excess profit tax.

[Michael Guglielmin, Conservative, Vaughan—Woodbridge, ON]

Madam Speaker, the constituents from Vaughan—Woodbridge and, frankly, Canadians right across this entire country recognize the unique position that Canada is in with our large natural resources that we sit upon. What they would like to see the government do is move at speeds not seen before, like it promised in the last election, so we can develop the infrastructure, export our natural resources and build up this country for everybody.

[Luc Berthold, Conservative, Mégantic—L’Érable—Lotbinière, QC]

Madam Speaker, I commend my colleague for his excellent speech. I want to address those watching this debate closely at home, because people all across Canada are feeling the strain of the cost of living. Families are working, paying their bills and doing what they have always done, but unfortunately, many of them are finding that they have less and less money left in their pockets at the end of the month. A recent study showed that people have less than $100 left in their pockets at the end of the month to make ends meet. One hundred dollars is not a lot. Quebeckers are also facing this challenge. They see it at the grocery store, in the cost of housing and insurance and even every time they have to stop at the gas station to fill up.

Behind the numbers we are discussing here in Ottawa, the statistics and examples from overseas, lies a very different challenge for families. Families have to make choices, put off purchases because they cannot afford them or cut back just to be able to pay for essentials, such as heating, groceries or school supplies. In short, they have to make tough choices. That is why it is time to get back to basics in Canada. It is time to save Canadians money by cutting the taxes and government spending that are making absolutely everything more expensive, as I mentioned earlier. It is time to protect Canadians' jobs and to keep Canadians safe. It is not right that people in Canada have to think twice before going out at night because they do not feel safe. Why is that? It is because, over the past few years, the government has implemented reforms that make it easier to put criminals back on the streets than in prison. What I just said is no joke. It is the truth. It is also time to fix our immigration system and put Canada first.

We, the Conservatives, have identified nearly $150 billion in potential savings in government spending. That is $10,000 in savings per family in taxes. When we talk about saving Canadians money, we need to look at the expenses they have to cover every week. Gas and fuel are part of that. For millions of Canadians, especially Quebeckers who live in rural areas, filling up is not an expense they can simply decide to put off until later.

In my riding of Mégantic—L'Érable—Lotbinière, a car is a necessity, not a luxury. People need a car to get to work, drive the kids to school and activities, go grocery shopping and get to medical appointments. In short, they need a car to get everywhere they need to go. There are no subway stops every block or buses that come by every 10 minutes in our municipalities. When we look at the Régie de l'énergie du Québec's data on the price of gas, that has a direct effect on our communities. If we use the published gas prices to calculate how much it will cost to fill up a 60-litre tank, it quickly adds up to over a hundred dollars per fill-up. That is a recurring weekly expense for many workers in Mégantic—L'Érable—Lotbinière and all regions of Quebec.

Drivers in Estrie called into the radio station 107.7 to say that they are now cutting back on their trips to save on gas so they can get around when it is truly essential. When people start changing their travel habits just to save on gas they cannot afford, it shows just how much the price at the pump is eating into their budgets. As I said, this is not limited to the Estrie region. On September 17, the price of gas was $2.80 per litre at some gas stations in Montreal. The provincial average was $1.96 per litre. In some regions, the situation is even worse. In Radisson, in northern Quebec, the price of gas recently reached $2.37 per litre. This shows how much of a burden fuel costs can be for families who have no choice but to travel by car.

When we talk about affordability, we are talking about the ability of Quebec and Canadian families to pay for essential expenses. Right now, Canadians are benefiting from a pause on the federal fuel excise tax. Bill C‑38, which we are discussing today, will extend the full suspension until January 31, 2027. A rate equal to 50% of the regular excise tax rate will be in effect during February and March, before the regular rate resumes in the spring. What does that mean in practical terms? It means that the federal tax on gas and diesel will be suspended, but that as of February 1, it will go back up to 50% of the regular rate.

Then, on April 1, according to today's announcement, the price of gas will not decrease but rather will go back up again. The regular rates will be reinstated. The relief that Canadians are receiving now is already supposed to decrease in February and March of next year. For a family that needs to gas up regularly, sometimes for two vehicles, these costs add up.

We must not forget that the extension was announced after months of Conservative calls for the government to keep the fuel tax relief going. We introduced two opposition motions in the House asking for all fuel taxes to be suspended, meaning the clean fuel tax, the GST and the excise tax, not just until Labour Day, but until July 1 next year. Both times, the Conservatives were the only ones to vote in favour of these motions. The Liberals voted no, the Bloc Québécois voted no and the NDP voted no.

Under pressure, the government came to realize that it would be foolish to kick off the parliamentary session by raising the price of gas by 10¢ per litre for everyone. People would associate the price hike with the Liberals, so the Liberals decided to pick a quieter time, over the winter, when people will not be paying much attention to what is going on.

However, winter is when people need their vehicles the most. Riding a bike is not an option; there are no other options. People need their vehicles even more. Today, the Liberals are saying that on February 1, when it will be -40°C out, gas prices are going to rise by five cents a litre.

That is the proposal before us today. In our opinion, we need to go further. If lowering fuel taxes lets families and workers keep more of their own money, that is the direction we should take. Families will still be paying their bills in February. They will still be going places. Workers in Thetford Mines will still be going to work. Families in Lac‑Mégantic will still have to drive their kids to their activities. Farmers in Lotbinière will still have to keep farming. Truckers will still have to keep transporting goods. Expenses never take a holiday.

As the Conservatives see it, an extension of a few months is good, but not good enough. Bill C-38 offers some relief, but it is only a half measure. What we need is to pause all gas taxes until July 1, 2027, and then see how the economy is doing and whether enough time has passed for the market to normalize.

If the Liberals' projects were actually moving as quickly as they claim they are, we could be producing more oil here in Canada. That would help lower gas prices for everyone, but unfortunately, we hear a lot of talk from that side of the House, but we see very little action when it comes to actually delivering anything.

Our proposal would result in savings of 25¢ per litre, or more than $1,000 a year for a Canadian family. On a 60-litre fill-up, as I said earlier, that means $15 in savings. That is right, $15 on a single fill-up. Multiply that by the 52 weeks in a year, since drivers usually fill up at least once a week, and we get savings of over $1,000 a year, which could make a real difference in a family's budget.

As we know, Bill C‑38 deals only with the federal government. When we say we need to go a little further, it is because we can take action on the things in our control. We do control the three taxes I mentioned, and if the Liberal government wanted to, it could provide relief to families for a little longer.

Rising gas prices also have a very negative impact. Every time the price of gas and diesel goes up, the price of our food goes up. Marc Cadieux, president of the Association du camionnage du Québec, was very clear on this, saying that fuel is the second-highest cost for carriers and that this increase is ultimately passed on to consumers.

There is a dual impact. The government is going to raise taxes for everyone, and then that tax increase will once again be passed on to everyone. At the end of the day, who pays? It is always the consumer who pays.

In closing, I want to add one more thing. We need to cut taxes even further to ease the pressure on Canadians' wallets. In Quebec's regions, filling up a gas tank is not optional, and neither is paying taxes. However, when we can control that and help people, we must do so. That is the decision that needs to be made.

I hope that the government will realize that some day.