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

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I just have to say that this side of the House is not bad for good neighbours.

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

Mr. Speaker, that was a really nice comment, I must say.

I would look to the leader of the Green Party. I can appreciate some sensitivity on the issue that is up for debate today from the Green Party's perspective. I am wondering if the member could provide some of her thoughts on how indirectly government can support people on the issue.

I have talked a great deal about, for example, the dental program, the pharmacare program and the grocery benefit program. Does she have any further thoughts on the issue of affordability and ways, whether direct or indirect, that the government can look at them?

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I think we have to really be bold. We need a guaranteed livable income to eradicate poverty in the country. Poverty costs our whole society. It is not a matter of charity. A wealthy, industrialized country like Canada should not have one in 10 Canadians living below the poverty line. We should not have people setting up tent cities. We should be able to ensure that every Canadian has what it takes to live, and that allows people to not fear clawbacks if they start making money somewhere else. If we are really serious about it, end the class warfare and declare that Canada wins by bringing in a guaranteed livable income.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, just as a follow-up on that particular wish that the leader would like to see, could she cite another country, in the G7 or G20, that has what it is that she would like to see here in Canada?

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, we have a very active anti-poverty caucus that is all-party. It includes members of Parliament and senators. We have had lots of expert witnesses. We would be the first.

Honestly, there is tons of research that shows that it would save our health care system. Poverty is the number one social determinant of health. It would save our criminal justice system and make our society fair. It would reduce costs everywhere. With the advent of AI coming for people's jobs, putting in place a guaranteed livable income is the best way we can protect ourselves for the future. We would be the first.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Mr. Speaker, Conservatives want to do something about gas and diesel taxes. We want to see all of those taxes scrapped until Canada Day 2027 because Canadians are struggling. That is what I am going to talk about today. I am also splitting my time with the member for Edmonton Griesbach who is going to continue the argument.

Why do we want to scrap all gas and diesel taxes? They are costing Canadians money that they do not have right now. Anyone who has gone to the grocery store recently can see it is grim. I was looking to buy some chicken thighs and a small pack of chicken thighs at a not-so-fancy grocery chain was $43. When I was looking at it, somebody said, “I think that's a deal.” That is insane.

We want to see the gas tax scrapped until Canada Day next year because when that tax is in place, not only does it affect consumers at the pump who are spending money they do not have, but it also affects the cost of everything. It affects the producers who are harvesting, who need diesel for their combines. That cost is then passed along to the consumer. It takes gas and diesel to transport the goods that consumers need to buy. When those taxes are on top of that fuel, who pays for it? It is the people who are listening to this speech today. That is why the Conservatives' core focus for the fall is to save Canadians money. This is why we are calling for the government to scrap all gas and diesel taxes until Canada Day 2027.

The bill that we are debating today that the Liberals put forward does not do that. They had an opportunity to work collaboratively in the House with the opposition, which is fiscally responsible, and take our recommendations, but they are not doing that. To me, this underscores the fact that the Liberals and the Prime Minister go out and talk to people using a lot of buzzwords and a lot of aggrandizing on the international stage. However, I am not seeing a lot of results when it comes to saving Canadians money.

Make no mistake; what I am hearing about in the good riding of Calgary Nose Hill, and I am always pleased to stand up and fight on behalf of my constituents, is that they need to have money saved. They cannot afford to live. They are worried about their jobs, particularly with trade uncertainty. They want to be safe and they want to see immigration fixed. All of these points can come together in some of the policies that Conservatives have been pushing, but we are just not seeing them come forward in this particular bill.

I want to show members how imperative the Conservative proposal is to have the gas and diesel tax scrapped well into next year, which is not in this bill. Money Mentors reported that 49% of working Canadians feel less financially secure than they did a year ago. That is half of Canadians. This is not some esoteric guessing game. Half of Canadians are saying they do not feel as secure as they used to feel. This is particularly true for young Canadians. I know there are a lot of Canadians of secondary school age who cannot find jobs, and they are also asking what their future holds. It is imperative that we fight on behalf of those people.

People are paying more for goods because of a decade of Liberal inflationary deficits. Those deficits have actually ballooned under the Prime Minister. I thought the Prime Minister was supposed to get our fiscal house in order. In fact, he has done the opposite.

People ask me why they should care about deficits. Deficits matter because they add to our debt. When we add to the nation's debt, we have to pay debt servicing costs. It is like the interest on one's credit card. When we are paying for that, we cannot invest in other things. I heard that the Government of Canada is now paying more for the interest on its credit card than it is on health care. That is not great. We need to ensure that, if the government is spending money on things, it is spending money on things or making fiscal decisions that are going to save Canadians money.

That is why Conservatives are calling for the gas and diesel tax to be scrapped well into next year, which this bill would not do. It does not go far enough. That is a key objective.

The other thing is that we have to talk about how we save Canadian jobs. Eliminating the gas and diesel tax well into next year would also provide some investment certainty for certain types of businesses that are trying to figure out their operating costs in an environment where there is a lot of uncertainty, which is what is happening in the country right now. This is why we as Conservatives are so dead set on putting forward measures that would save Canadians money, and their jobs as well.

I serve as the Conservative Party's immigration shadow minister. I also serve as the vice-chair of the Standing Committee on Citizenship and Immigration. The reality is that the Liberals brought too many people in too fast for housing, health care and jobs to keep up. That is not fair to anyone. It is not fair to the immigrants who came to Canada to build a better life. It is not fair to the Canadians who are here. In fact, that tension of bringing in too many people too fast has eroded Canada's consensus on immigration. Now we have a lot of people competing for jobs that are rapidly disappearing.

That is why Conservatives, including me and our broader team, are arguing for far lower immigration levels. We are arguing for the government to take measures to deal with this.

CBC reported that there will be two million people in Canada by the end of this year who are on expired or expiring visas. We know that there are 500,000 undocumented persons and people who do not have a legal reason to be in the country. They need to leave. The government needs to have a plan to deport these people. It is not something that is comfortable for Canadians to talk about, but if people do not have a legal reason to be in the country, particularly because the Liberal government brought too many people in too fast, that problem has to be addressed. We are also going to continue to push those issues.

When I hear the Liberals come forward and make all these announcements, they never seem to reach the people in my community. I think about the multitude of announcements they have made, and all I hear in my community is that people are waking up feeling like they can buy less groceries. They are less convinced that they can make their rent payments. Many of the people in my community would love to be making a mortgage payment, but they cannot afford to buy a house.

Again, we are talking about saving Canadians money. That is why Conservatives are putting forward proposals like scrapping the GST on new home builds up to $1.3 million. That would save Canadians who are buying homes up to $65,000 on a new house. Those are common-sense measures that we do not see reflected in this bill that would directly impact the Canadians who are struggling to get ahead and pay their bills. This affects all Canadians. It is not just young Canadian, but seniors on fixed incomes. Inflation is in a lot of ways unique to Canada because of the policies and procedures the Liberals have put in place over the last several years. People cannot afford that.

What I would like to see, and what I know everybody in the Conservative Party would like to see, is for the government, instead of bringing in this bill or even amending it, to take our suggestion to scrap the tax on gas and diesel well into next year. We propose Canada Day. The bill would not do that. I would like to see from the government not just announcements to spend government money, but announcements that would directly impact affordability, directly drive down grocery costs and directly make the lives of the constituents in my riding more affordable and more stable. This is so important. It is why we are here.

We are in an economic crisis. The government put us in a weak position before this happened, but now we have to deal with it. Having bills that are just half measures is not going to cut it for the people in Calgary Nose Hill or across Canada. I implore the government to take the Conservative proposal to change this bill so that the gas tax is cut on diesel and gas up to Canada Day 2027.

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

Mr. Speaker, I want to pick up on what I see as a bit of irony coming from the member opposite. She was part of the Stephen Harper government when it made the decision to increase the number of temporary students coming to Canada. It was hoping to achieve over 300,000. That is a well-documented policy approach by the Conservative Party at the time. The combination of achieving that particular goal and the pandemic played a huge role in where we were a year ago.

The Prime Minister made a commitment to stabilize immigration and is doing just that. Does the member see any issue with a newly elected Prime Minister, along with 70-plus newly elected Liberal members of Parliament, doing what he committed to doing in the last election?

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Mr. Speaker, the member opposite vigorously defended Justin Trudeau opening the border at Roxham Road. He vigorously defended bringing in hundreds and hundreds of thousands of temporary students in about three years. I think it was close to a million.

The member is one of the most vigorous defenders of Justin Trudeau in Canadian history for his constituents. Their MP defended Justin Trudeau. That is what he did for a living. Instead of being in his community, he defended Justin Trudeau. He also defended the changes Justin Trudeau made under our previous government, which were to lower the number of temporary foreign workers. We are now calling for the elimination of that and a special program for agriculture workers. However, mark my words: The member defends Justin Trudeau. He is a rabid Justin Trudeau defender, and his record in Hansard shows that.

[Rachael Thomas, Conservative, Lethbridge, AB]

Mr. Speaker, my hon. colleague gave a compelling speech with regard to Canada's economic state, the inflationary measures the government has put in place and how they are a net detriment to the Canadian people. One of the statements she made is that the level of inflation we are experiencing in Canada is in fact unique; it is problematic to us.

The current Liberal government would like Canadians to believe that it is being experienced globally. However, that is not the case. Canada is in fact a stand-alone nation in the way that inflation is impacting its people and driving up the cost of everything. I wonder if my colleague would care to expand on that further.

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Mr. Speaker, that is such a great point, and I agree with everything my colleague just said.

I want to emphasize something. I just ragged on Justin Trudeau. He is actually more fiscally responsible than the current Prime Minister is. Can members believe that? Justin Trudeau developed a more fiscally responsible budget than the current Prime Minister did. How is that possible? I thought the Prime Minister was supposed to be super awesome on the economy, yet, to my colleague's point, the Prime Minister is raising the deficit to historic banana levels.

Anybody who is watching this is not going to say that they see the results of that. They do see the results of that. They see increased costs. They see their rents increasing. They see less housing. They see less groceries and less protein in their baskets at the grocery store. This is because of what my colleague said. When the government puts forward inflationary deficits, which Canada has done and is unique in doing in the G7 right now, costs go up for average Canadians. Conservatives are going to save Canadians money.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I like it when I can agree with my friend from Calgary Nose Hill. It does not happen all the time, but I always like it when we agree.

One of the things I found maddening was when I discovered that the target for immigration of half a million people a year adopted by the previous government was a recommendation that came out of the blue from McKinsey. We are hiring management consultants. We never had a debate in this place about it. Canadians might think that if a target was set of half a million people a year, we must have had a committee study and it must have been in Parliament.

Does my friend from Calgary Nose Hill have any updates on how we are doing in getting rid of consultants?

[Michelle Rempel, Conservative, Calgary Nose Hill, AB]

Mr. Speaker, I am sorry to report to my colleague that those consultants have now been further embedded in the government. I am thinking specifically about Dominic Barton and Mark Wiseman. They were advocates for allowing 100 million people into Canada in a very short period of time. This was called the Century Initiative. Those policies were embedded within the Trudeau government, which the government's deputy House leader just defended vigorously. Of course, that is fair to nobody. Too many people too fast is the Liberal legacy, and it eroded Canada's consensus on immigration.

[Kerry Diotte, Conservative, Edmonton Griesbach, AB]

Mr. Speaker, I rise today to speak to this act to amend the Excise Tax Act and extend the federal fuel excise tax relief. At its core, the legislation would do something very simple. It would extend the suspension of the federal excise tax on gasoline, diesel and aviation fuel until January 31, 2027. Then the tax would come back. On February 1, the government would bring it back at half the regular rate, and on April 1, the regular excise tax rates would return.

Canadians need relief at the pumps, and Conservatives have been pushing for exactly that. The Liberals originally planned to bring this tax back after Labour Day, and Conservatives pushed for the relief to continue. Canadians made clear that they are struggling with the cost of living, and the government changed its timeline. Now we are asking the Prime Minister to listen again. Conservatives are proposing to extend broader federal fuel tax relief until at least Canada Day 2027, because families in Edmonton Griesbach and right across the country are still struggling to afford their lives. They need to fill their cars, buy groceries, heat their homes and get to work without wondering what new cost is coming next.

Under the bill, the current suspension would continue through January, and beginning February 1 the federal excise tax on gasoline would come back at five cents per litre. Diesel and aviation fuel would come back at two cents per litre. By April, the regular rates would be back. Conservatives believe that Canadians should get that relief for longer.

If the Prime Minister recognizes that lowering fuel taxes helps Canadians today, why not extend that relief until at least Canada Day, and why stop with the excise tax? Why not look at other federal costs on fuel? Why not look at the GST? Conservatives under Prime Minister Harper cut the GST from 7% to 5%, and that relief stayed.

Conservatives are calling for all federal taxes on gas and diesel to be removed until at least Canada Day 2027. That includes the GST and the cost associated with the clean fuel regulations, because every dollar matters to a family trying to make its budget work.

Take a family filling up a 60-litre tank. At 10¢ a litre, that is six dollars in federal excise tax relief every time they fill up. That six dollars becomes $12, then $18 and then $24. For a family with two vehicles, it adds up even faster. That matters when they are buying groceries, when the mortgage payment is due, when the kids need new shoes or when the hydro bill comes in.

The impact goes well beyond the family filling up at the local gas station. I think about the farmer, the trucker, the contractor or the small business owner. Fuel is not optional for these Canadians. It is the cost of doing business. A trucker cannot deliver food without diesel. A farmer cannot operate equipment without fuel. A contractor cannot carry lumber and tools to a job site on the bus. For millions of Canadians, driving is not a luxury; it is how they earn a living, and fuel is built into the cost of almost everything. Somebody grew the food, somebody processed it, somebody put it on a truck and somebody drove that truck to the store. Every step costs money, and fuel is part of that cost. When we lower the cost of moving goods, we help lower the cost of doing business right across this country.

The same goes for construction. Liberals keep talking in the House about building more homes, but talk is cheap. It does not build homes. Canadians do not need another list of projects sitting on paper. They need shovels in the ground. They need homes built. They need mines opened. They need roads, pipelines and infrastructure moving. They need Canadian resources getting to market, and most importantly they need the jobs that come with all of it.

A project does not employ a worker because Ottawa announced it. It creates opportunity when somebody actually builds it. That is how we grow this economy. That is how we raise paycheques, and that is ultimately what affordability is all about.

It is not just what Canadians pay; it is also what Canadians earn. Canadians need jobs. They need investment. They need businesses expanding and hiring. They need projects moving from an announcement to a construction site. That is how Canadians get ahead. People should keep more of what they earn. Small businesses should have room to grow. Workers should receive bigger paycheques.

That brings me to another major economic challenge facing Canadian workers and businesses, the trade war with the United States. Tariffs raise costs. There is no question about that. Trading tariffs back and forth does not make groceries cheaper or businesses more competitive.

The Prime Minister has spent considerable time pursuing new economic relationships in Europe, but Europe is not going to simply replace the United States. Look at our auto sector. Statistics Canada reported that more than 93% of our motor vehicle exports go south of the border. That is the reality that Canadian auto workers are facing. We can pursue opportunities in Europe. We can diversify our trade somewhat. We can sell more Canadian products around the world, but European customers are not going to replace the 1.5 million Canadian vehicles sold annually to the U.S.A. Our auto industry was built around an integrated North American market. Right now, that market is being disrupted by tariffs.

The Prime Minister has to get to work. He has to get the trade war resolved. He has to get the tariffs off Canadian workers and Canadian businesses. Canadian auto workers cannot afford to wait while their largest export market becomes more expensive to access. Canadian manufacturers cannot plan investments when they do not know what the rules will be six months from now, and Canadian businesses cannot simply be told to find another market and move on.

The United States is our largest trading partner. That relationship matters. The Prime Minister needs to get back to work here at home, get back to the table with the United States and get this trade war resolved. That is what he promised in the last election. Canadian workers need results.

The government claims it is serious about affordability, so it should be looking at every opportunity to lower costs and strengthen the Canadian economy. Lower the cost of fuel. Get our products to market. Remove the barriers to building homes. Cut unnecessary red tape. Create the conditions for businesses to invest, expand and hire. Protect Canada's access to its largest trading partner.

The Liberal government cannot tax Canadians into prosperity, try as it might, and it cannot replace economic results with announcements. International meetings have their place, and new trade relationships have their place, but Canadians should be able to look at what their government is doing and see those efforts producing results here at home: more jobs, more investment, more homes, more projects getting built and paycheques that actually go further.

Canadians are doing their part: the single mother driving to work every morning, the tradesman loading his truck before sunrise, the farmer putting fuel in his equipment, the trucker moving Canadian goods across this enormous country, and the small business owner trying to make payroll. Those are the people we should be thinking about when we debate the bill. They benefit from paying less tax on fuel.

The question is straightforward. If extending the relief through January helps Canadians, why not give them a few more months? Why not extend broader fuel tax relief until at least Canada Day 2027? Give Canadian families more time with lower fuel costs. Give farmers and truckers more breathing room. Give small businesses more time with lower operating costs.

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

Mr. Speaker, the member talked about the automotive sector in Canada being built on the concept of integration between Canada and the United States. I do not think there is anybody in the House who would disagree with that, but what I want to hear from the member is what his proposed solution is to this. Integration depends on both countries being interested in trade. What we have seen since the new administration has come along is that the United States is moving away from that. It is no longer interested in the integration the member talks about.

He can stand here and say until he is blue in the face that the Prime Minister needs to get back to work, but the reality of the situation is that if one side is no longer interested in that integration, there is really not much one can do other than to provide supports for workers and look for new opportunities. Can the member explain what he means by “get back to work”, when the objective is clear?

[Kerry Diotte, Conservative, Edmonton Griesbach, AB]

Mr. Speaker, clearly the United States is our biggest trading partner. The Prime Minister ran a whole campaign saying he was the person who would get a deal with the United States. Where is it? Why not get back to the table with our largest trading partner?

Tariffs upon tariffs do not benefit Canadians. We have to get back to the table. We have to get a tariff-free deal with the United States of America, our biggest trading partner. We just cannot sit back and say we are going to replace that market with the European market. It does not work that way.