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.

Opposition Motion—Affordability Crisis

[Jaime Battiste, Liberal, Parliamentary Secretary to the Minister of Crown-Indigenous Relations]

Mr. Speaker, it is a pleasure to take part in today's debate and to discuss our government's plan to ease financial pressures on households and help Canadians build a better future for their families and our country. Our government knows that Canada is strongest when we look after one another and ensure everyone has a fair chance to succeed. That is why we are taking action to make everyday life more affordable.

In January, the government announced the new Canada groceries and essentials benefit to put more money back in Canadians' pockets. The benefit is helping more than 12 million low- and modest-income Canadians afford everyday essentials. It replaces the existing GST credit while providing more generous support. We increased it by 25% for five years, starting in July, and added a one-time payment this year. Together, these enhancements will provide substantial support to those most affected by rising food prices.

For example, a person living alone who is eligible for the GST credit could previously only receive a maximum of $543 for 2026-27. With the one-time payment and the 2026-27 benefit combined, that person will receive approximately $950 in total. For a couple with two children, total support will increase from approximately $1,086 to $1,890. These increases will make meaningful differences for households facing higher food costs. The benefit is also indexed to inflation to ensure payments rise each year with the cost of living. We are taking these steps because helping Canadians afford everyday essentials is the right thing to do.

The Canada groceries and essentials benefit is part of a broader package of measures to ease grocery cost pressures across Canada. Canada's first-ever national food security strategy will address food insecurity, support producers and strengthen supply chains to help lower prices for Canadians. The strategy is backed by more than $3 billion in investments over 10 years. It includes a $1-billion investment in food infrastructure, including food terminals, to help independent grocers buy and move completely produced products. The strategy also includes a $1-billion investment through Farm Credit Canada and a $150-million food security fund to help Canadian businesses grow, produce and process more food in Canada. A further $750 million will go to expanding year-round Canadian fruit and vegetable production. These measures will address the root causes of food insecurity by strengthening domestic food production and improving access to affordable, nutritious food.

We are not only putting more money in the pockets of those who need it the most. We are also helping Canadians keep more of what they earn through a middle-class tax cut. We have reduced the tax rate from 15% to 14%. As a result, nearly 22 million Canadians are receiving tax relief of up to $420 per person, while two-income families can save up to $840 this year. In 2026, the lower rate applies to taxable income of up to $58,523, providing meaningful relief during a period of economic uncertainty. Most of the tax relief will go to Canadians in the two lowest tax brackets, with nearly half directed to those in the first bracket. In other words, the measure is targeted to those who need support the most.

Above all, we must consider our children, and that is why we made the national school food program permanent. It will provide healthy school meals to as many as 400,000 children and save families with two children about $800 a year on groceries. Working with provinces, territories and indigenous partners, we will continue to expand the program to more schools across Canada, ensuring that hunger is never a deterrent to getting one's education.

Our government also recognizes that recent global developments have made life more difficult for Canadians. Tariffs imposed by our largest trading partner have had a significant impact on Canadian workers and businesses from coast to coast to coast. Conflict and instability in the Middle East have also driven up fuel prices worldwide. In these circumstances, Canadians need relief, and our government has delivered it. Through carefully targeted measures, we are helping Canadians meet these challenges while strengthening Canada's sovereignty and economic resilience.

For example, last spring we acted to ease the impact of high fuel costs on Canadians. In April, after disruptions to crude oil shipments through the Strait of Hormuz pushed fuel prices higher, our government temporarily suspended the federal fuel excise tax. The measure has saved Canadians and Canadian businesses up to 10¢ per litre on gasoline and unleaded aviation gasoline, up to 11¢ per litre on leaded aviation gasoline and up to four cents a litre on diesel and aviation fuel. The savings were immediate. On the first day the temporary suspensions took effect, gasoline prices fell by 11¢ per litre, providing direct relief to consumers.

Through Bill C-38, we propose to continue providing relief at the pump by extending the temporary suspension of the federal fuel excise tax through January 31, 2027, and then from February 1 to March 31, 2027, the tax would apply at 50% of its regular rate. The extension would lower everyday costs for Canadians, including truckers and businesses in the food, agriculture, housing, construction and delivery sectors. In short, it would provide timely, meaningful relief when Canadians need it the most. By easing pressure on gasoline and diesel prices at the pump, we are lowering costs for Canadians today while building a stronger, more resilient and more independent economy for the future.

To conclude, Canadians should feel the benefits of economic growth not only in the economic reports but also in their wallets and around the kitchen table. That starts with ensuring that everyone can afford to put good food on the table. We are building a stronger Canada, one where economic growth improves everyday life and gives every Canadian a fair opportunity to succeed. That is how we will build a more prosperous and inclusive future.

Business of the House

[Steven MacKinnon, Liberal, Minister of Transport and Leader of the Government in the House of Commons]

Mr. Speaker, first of all, we certainly want to acknowledge the very high ratings for this part of the week with the Thursday question.

I also want to celebrate the fact that, while every week is a good week to help Canadians with affordability, this week was a particularly good week, because the groceries and essentials benefit, which is up to $1,800 or $1,900 a year, went into the bank accounts of Canadians. The quarterly deposit was made. The Prime Minister announced today measures that will help tens of thousands of Canadians convert their homes to heat pumps, saving them money while helping with the cost of installation. The Parliamentary Budget Officer confirmed that our measures to reduce the gas tax and prolong the reduction will save the average family about $275 a year. It is a good week for affordability.

Finally, the bill that is so obviously and patently good in terms of moving Canada's strong economy forward that even Conservatives realized it was worthy of their support, Bill C-39, has now passed through second reading and is off to a special legislative committee.

It has indeed been a good week for Canadians.

Tomorrow we will proceed with second reading of Bill C-37, the first nations clean water act. When we return from constituency week, priority will be given to Bill C-40, which aims to strengthen Canada's defence sector; Bill C-38, the Canadian fuel affordability act; and Bill C-34, the safe social media act.

Note that Thursday, October 22, shall be an allotted day.

Finally, seconded by the member forRegina—Qu'Appelle, I would like to seek unanimous consent for the following motion:

That, notwithstanding any standing order or usual practice of the House, on Monday, October 19, 2026, the House shall continue to sit until midnight, provided that:

(a) at 6:30 p.m., the Speaker shall interrupt any proceedings then before the House and such proceedings shall be deemed adjourned, and the House shall proceed forthwith to the consideration of Bill C-38, An Act to amend the Excise Tax Act (extension of the federal fuel excise tax relief);

(b) after 6:30 p.m., no quorum calls, dilatory motions or requests for unanimous consent shall be received by the Chair, except for a unanimous consent motion to see the clock.

Taxation

[Daniel Gobeil, Liberal, Parliamentary Secretary to the Minister of Agriculture and Agri-Food]

Mr. Speaker, I thank my colleague for his question. Our government has always been there to protect workers, farmers and employees across all sectors of the economy.

That is precisely why we have introduced Bill C‑38, which would suspend the tax on diesel and oil. I invite our colleagues opposite to support this legislation, which represents a first step toward making life more affordable for Canadians.

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Speaker, Canadians watching at home know that the Leader of the Opposition likes to talk, talk, talk, but I have an idea for him.

Today, instead of talking, he can take action. He can take action to help farmers across the country. He can take action to help families across the country. He can take action to help truckers across the country. I have a great idea for him. Today, he even has a chance to show it to Canadians by voting in favour of Bill C-38 to extend the suspension of the federal gas legislation.

Will he vote in favour of Canadians for once?

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Speaker, Canadians know that the Leader of the Opposition likes to talk, but now he will have a test. Will he walk the talk? Instead of presenting a motion to oppose, I have a suggestion for him and his entire bench. Why do they not vote for farmers? Why do they not vote for truckers? Why do they not vote for families? Why do they not vote for Canada one day? They could vote for Bill C-38 and extend the suspension of the fuel tax. That is an immediate measure that would help all of Canada.

Will they vote for Canada once and for all?

[Tim Hodgson, Liberal, Minister of Energy and Natural Resources]

Mr. Speaker, I have some good news. Canadian diesel production is up 16% this year. More good news is that diesel prices have gone down three cents in the last several days. I have even more good news. If the member wants to actually help, he can vote for Bill C-38 and extend the excise tax exemption.

Opposition Motion—Diesel Prices

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

Madam Speaker, the Prime Minister is definitely not new, because he was the economic adviser to Justin Trudeau, who started the downfall of the economy in the first place.

For the Liberals to say that they are taking good ideas, that would be a novel idea. I would like them to steal more of our ideas. I would like the Liberal government to steal more good Conservative policies and just implement them properly. They always do half measures. The GST rebate is on new houses, but why not on all houses? On the rebate on diesel that they are talking about with Bill C-38, why not do it for longer and save people more money?

There is nothing new about the Prime Minister. He is following the terrible policies of Justin Trudeau that he helped implement, and he is making life less affordable for all Canadians each and every day.

[Juanita Nathan, Liberal, Pickering—Brooklin, ON]

Madam Speaker, it is an honour to rise and speak about this subject today, which is of crucial importance to all Canadians.

We are all aware that recent changes on the global stage have made life more unpredictable, more complex and, for too many people, more costly. Our largest trading partner has imposed tariffs on our imports, significantly impacting Canadian workers and businesses from coast to coast to coast. Conservatives may not want to call these tariffs what they are, but on this side of the House, we understand the impacts they are having on Canadian families, businesses, exports and workers.

Conflict and instability in the Middle East have led to an increase in fuel prices around the globe. Conservatives may want to blame Canada and Canadians for the challenges we face, but on this side of the House, we are positioning Canada to thrive within a rapidly changing world.

Facing these circumstances, Canadians do not need slogans, and they do not need social media influences. They need relief, and relief is what our government has delivered. Through carefully considered measures, we are strengthening our country's sovereignty and economic resilience while supporting Canadians through these challenges.

Since day one in March 2025, we have worked to save Canadians hard-earned money. On July 1 of last year, 22 million Canadians, more than half the country, had their income taxes lowered when we cut the first income tax bracket from 15% to 14%. This represents an annual tax savings of $420 for individuals or up to $840 for two-income families. To help support Canada's most vulnerable people, we introduced automatic federal benefits filings, starting with the 2026 tax year. This change will automatically give up to 5.5 million low-income Canadians the benefits they qualify for by the 2028 tax year.

We also removed the goods and services tax on new homes costing up to $1 million for first-time homebuyers, and we lowered it on new homes priced between $1 million and $1.5 million. This move gives more Canadians, especially young families, the chance to live the Canadian dream of owning a home. Speaking of young families, they know the importance of good food during school days. We made permanent the national school food program, a program derided by Conservatives as “garbage”, to provide meals for up to 400,000 children across Canada. This program saves participating families with two school-age children approximately $800 annually on groceries.

Food is essential, but it has grown more costly. To help more than 12 million Canadians manage their grocery budget, we introduced the new Canada groceries and essentials benefit, which provides a family of four with up to $1,890 this year and about $1,400 annually for the next four years. Single Canadians will have a benefit of up to $950 this year and about $700 for the next four years.

Food is fuel for learning minds and working bodies, but groceries do not make their way into stores on their own. Canada is a vast nation, and moving people and products is a necessity that requires fuel of a different kind. We know that consumers are facing higher gas and diesel prices at the pump, and businesses have their profitability impacted by the increased cost of getting goods to market. I know that in my riding of Pickering—Brooklin, this is true.

Although the factors that led to these high fuel prices are not within Canada's control, Canadians expect a strong response. We are focused on what we can control. That is why we introduced Bill C-38, the Canadian fuel affordability act, which is currently being studied. Bill C-39 is being debated in the House and will be debated later on today as well.

Bill C-38 would build on the temporary suspension of the federal fuel excise tax that we introduced earlier this year, bringing the tax on gasoline, aviation gasoline, diesel and aviation fuel to zero cents per litre. For Canadians filling up their cars, it means a tax cut of 10¢ per litre on gasoline, a savings of about five dollars on a typical 50-litre fill-up, and four cents per litre on diesel fuel. While this cut was originally set to expire last month, Bill C-38, if passed, would extend that suspension of the federal fuel excise tax until January 31, 2027, after the holiday season. Regular rates would then be reduced by 50% through March 31, 2027, inclusive.

Higher energy prices are a concern not just here at home but in every part of the planet. We are fortunate to be rich in many natural resources and to be the fourth-largest exporter of crude oil in the world. This is why the Prime Minister has said, “Canada has what the world wants.”

This summer, the executive director of the International Energy Agency said that Canada has a once-in-a-lifetime opportunity to become a global energy exporting superpower. The leaders of our G7 peer nations are asking us to step up and supply the world with the sustainable, reliable energy they need to power their economies. This is an opportunity we are leaning into and seizing with intention.

That is why we recently announced that Pacific link, an oil pipeline that will bring Albertan oil to ports in British Columbia, will be listed as a project of national interest under the Building Canada Act. Designating the Pacific link pipeline as a project of national interest means it will get built faster, reducing Canada's dependency on U.S. markets as buyers for our oil by giving us a new ability to export to Asian customers. Once completed, the Pacific link will allow us to ship an additional one million barrels of oil each day across the Pacific.

While we are prioritizing measures to help Canadians during this difficult time and working to create the right climate to grow the economy and foster investment, we have never wavered in our focus on fiscal responsibility. The International Monetary Fund forecasts that our country will be the second-fastest growing economy in the G7 groups of nations this year and in 2027. Canada's sovereign debt continues to command the highest rating, a AAA credit rating, from Fitch, from Standard & Poor's and from Moody's, the three main debt rating agencies. As we know, this exemplary credit rating allows Canada to issue debt to investors on the best possible terms.

As well, as noted in April's spring economic update, Canada is on track to reduce its deficit in 2025-26 by $11 billion more than originally forecasted in the last federal budget. This gives us an advantage when it comes to investing in the supports and services that matter to Canadians.

Canadians are strong and resourceful, and in times of adversity, they expect a strong, resourceful response from their government. The measures I have mentioned are just some of the actions we have taken to protect and promote Canadian interests while positioning the country for future growth and prosperity.

[Ryan Turnbull, Liberal, Parliamentary Secretary to the Minister of Finance and National Revenue and to the Secretary of State (Canada Revenue Agency and Financial Institutions)]

Madam Speaker, it is great to be here to participate in the debate this afternoon. I will be sharing my time with the member for Pickering—Brooklin, my wonderful colleague.

I am honoured to participate in today's debate. The world is changing rapidly. The United States is imposing new tariffs on Canada. At the same time, conflicts in Europe and the Middle East are driving up prices around the world.

Conservatives may want to blame Canada and Canadians for these global trends, as they tend to do in this House regularly, every single day. They seem to blame the government for factors out of our control or blame Canadians and try to use their hardships for political gain. However, the fact is that these higher costs are felt right here at home and all around the world, from Canadians driving to work and running errands to businesses transporting food, building materials and other essential goods across the country.

In response, our government is focused on what we can control: strengthening our economic resilience, building a stronger and more independent country and making life more affordable for Canadians. Economic uncertainty and rising costs have made affordability a top concern for families and businesses across our country. That is why one of our government's priorities is to help Canadians keep more of their hard-earned money.

As we strengthen Canada for the long term, we are also providing immediate support to help Canadians bridge the gap to a brighter future. Our government is taking action by diversifying Canada's trade relationships. We have signed over 20 new trade and security agreements in under a year. We are maintaining responsible fiscal management. We have found $60 billion in savings from government operational improvements, and we are supporting Canadians facing pressure from everyday expenses.

I want to begin by highlighting how Bill C-38, the Canadian fuel affordability act, is a key part of that effort. First, allow me to recall the support our government delivered last spring to help Canadians cope with elevated fuel costs. In the spring of this year, we introduced a temporary suspension of the federal fuel excise tax on gasoline, aviation gasoline, both leaded and unleaded, diesel fuel and aviation fuel in general. This pause reduced federal fuel excise tax rates to zero cents per litre. The measure quickly translated into lower fuel prices for Canadians, with tax savings of 10¢ per litre on gasoline and four cents per litre on diesel. The positive effects of that measure were felt immediately. The morning after the suspension took effect, gasoline prices fell by 11¢ per litre on the very first day, demonstrating that the savings were quickly passed on to consumers.

The suspension had been set to end after September 7 on Labour Day; however, this program was kept flexible by design. Like many of my colleagues, I spent the summer hearing from families and businesses in my riding of Whitby that were thankful for the relief that the spring announcement provided, but curious if it would remain in place amid stubbornly high prices. That is why, before the September 7 deadline, our government chose to announce its intention to extend the suspension of the federal fuel excise tax until January 31, 2027. That was for an additional five months, and then it would be stepped back by 50% through the next two months, to March 31, when it would go back to the full rate.

This measure has already brought down everyday costs for Canadians, including those in the trucking, food, agriculture, housing, construction and delivery sectors. The support provided to Canadians is substantial. The estimated additional fiscal impact of extending the suspension of the federal fuel excise tax is approximately $2.9 billion. As a result, Canadians are expected to receive an estimated $5.3 billion in total tax relief in 2026-27.

By extending the federal fuel excise tax suspension, Canadians will save approximately five dollars on a typical 50-litre tank fill-up at the gas pump. As members can see, this measure would make a noticeable difference for Canadians and has done so. We are grateful that we have the fiscal capacity to extend it further. By lowering costs at the pump and across Canadian supply chains, the government is actually helping Canadians keep more of their hard-earned money while protecting the economy from the pressures that mount beyond our borders. We must not listen to those who tell us that Canada is broken. The fact is that Canada's economy has remained incredibly resilient in the face of global challenges.

In fact, the International Monetary Fund projects that Canada will have the second-fastest economic growth in the G7 this year and next. This strong fiscal performance has reinforced our position. As noted earlier this year in the spring economic update, Canada's projected deficit is now more than $11 billion lower than forecasted in budget 2025, giving us greater capacity to build a stronger and fairer country for all.

Over the past year, we have used part of the increase in revenues to fund measures that make life more affordable and support Canadians. These investments are delivering meaningful results for Canadians in a time of need. At the same time, we are lowering costs today, while investing in a stronger, more resilient and more independent economy for the future. For example, we will work with provinces and territories to double Canada's electricity supply by 2050 to deliver clean, reliable and affordable energy produced at home. Over the last year, we have also signed more than 20 new trade and security deals across five continents.

Our government has already taken significant action to lower costs for Canadians. As of July 1, 2025, we cut income tax for 22 million Canadians by lowering their first personal income tax rate from 15% to 14%. This measure provides up to $420 in annual tax relief per person, or up to $840 for a dual-income family. We also eliminated the goods and services tax on new homes priced up to $1 million for first-time homebuyers, and reduced it on new homes priced between $1 million and $1.5 million.

In Ontario, our government signed an agreement to waive the full 13% GST on new home purchases under $1 million, which will save the average family $130,000 on a $1-million home in Ontario. This is really good news for Canadians who want to enter the housing market. This relief has brought home ownership within reach for more Canadians, especially young families who have struggled or been locked out of the housing market.

Effective April 1, 2025, we eliminated the federal consumer carbon price, delivering direct savings at the pump. That same day, we removed the requirement for provinces and territories to impose the consumer carbon price and delivered additional support for more than 12 million Canadians. We also launched the new Canada groceries and essentials benefit. It provides a family of four up to $1,890 this year and about $1,400 a year for the next four years, and provides a single person up to $950 this year and about $700 each year for the following four years.

Let us just remember that cheques for the third instalment of that groceries and essentials benefit went out yesterday to approximately 12 million Canadians who benefit from this measure, this enhancement to the GST rebate, which is now called the groceries and essentials benefit, with an average of $340 for a family of four. This is significant support right before Thanksgiving to make life just a little easier for families who are struggling with the elevated costs of many goods and essentials.

We also introduced automated federal benefits starting in the 2026 tax year to ensure up to 5.5 million low-income Canadians automatically receive the benefits they qualify for by the 2028 tax year. We also made the national school food program permanent. While Conservative MPs might like to call that program garbage or make absurd claims in the House regularly that there is no food in a food program, on this side of the House, we believe that 400,000 more kids getting fed at school is a good thing, and we would not deprive them and their families of the approximate $800 of savings on groceries. We feel like that is worth fighting for.

In conclusion, I could go on and on, but the fact is that Canada is well positioned to withstand the external pressures arising from an increasingly fragmented and uncertain world. We certainly cannot control global forces. The Strait of Hormuz is not within our control to reopen, but we can control how we respond here at home. This is why we are lowering costs for Canadians. We are supporting families and workers. We are strengthening Canada's economic resilience and independence. We will continue to build the strongest economy in the G7, one that creates prosperity and opportunities for future generations.

I look forward to the questions that I know are coming from the opposition members.

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

Madam Speaker, I will be sharing my speaking time with the member for York—South Simcoe.

The price of diesel is still extremely high in Quebec this week. For farmers, truck drivers and all the businesses that depend on fuel to survive, this means having to pay hundreds, even thousands of dollars more every day just to be able to keep on working.

Where does every price hike at the pump end up? It ends up as part of their expenses. It ends up making transportation and production costs higher. Eventually, it ends up taking money from families' pockets. We know that diesel, which is what we are talking about today, powers the tractors used to grow our food. It powers the trucks used to transport our purchases far and wide because we do not live next door to the factories. It is also essential for manufacturing. In short, diesel is everywhere in our lives, even if we do not put a single drop into our own vehicles.

When farmers and truck drivers pay more, who ends up footing the bill? It is always Canadians. That is precisely why we, the Conservatives, decided to take action. With the motion we are moving today, we want to introduce and offer an emergency relief plan to bring prices down at the pump for Canadians and Quebeckers right now. We want to produce more fuel here in Canada. We want to better protect our country from future energy crises.

Our plan is simple and has two parts. First, we will save Canadians money by reducing the taxes that are driving up diesel costs. Second, we will increase supply at home by accelerating refining, storage and transportation, while encouraging investment in those areas.

The truth is that the current situation makes no sense. Not many people know this, but Canada has the fourth-biggest oil reserves in the world. We have the resources, we have the workers and we have the know-how.

Unfortunately, after 11 years of Liberal government, Canadians and Quebeckers continue to pay far more for their fuel than they should. A country with such abundant oil resources should be better shielded from energy shocks. We should be increasing production when markets are under pressure, refining more of our own oil, and helping to boost supply so that we can become a true energy power.

However, the opposite has been happening over the past 11 years. Liberal taxes have multiplied, Liberal delays have multiplied, and Liberal bureaucracy has multiplied. As a result, refining, storage and transportation projects still take years to obtain the necessary approvals. Neither Bill C‑5, nor Bill C‑38, nor Bill C‑39, nor any other bill the government may introduce will change the speed at which projects are actually delivered, because these are Liberal bills. Unfortunately, it is all hot air and political theatre, while nothing is really happening.

The Liberals will point to wars, geopolitical tensions and market volatility to explain increases in diesel prices, and they are not wrong. Yes, it is true that these events have an impact on prices, but there is one thing they do not explain: Why are Canadians paying more than Americans? Why are Canadians paying more than the global average price of oil? As far as I know, Americans, along with everyone else in the world, are facing the same wars and the same price volatility. That is the question we should be asking ourselves. Why do we continue to pay more here in Canada, when we have the fourth-biggest oil reserve in the world? Meanwhile, other countries are looking at us and saying that they will not invest in our country.

I agree that the Liberals cannot control what happens abroad. They are having a hard enough time controlling what is going on at home. However, there is something they can do. They can control the taxes they impose on Canadians. They can also remove the barriers, the bureaucracy and the red tape they created here. They had 11 years to strengthen our refining capacity, improve our infrastructure and make Canada less vulnerable. They did not do so.

Who pays for all those wasted years? It is Quebeckers, Canadians, families, the unemployed, people waiting in line at food banks, and young people who have lost hope of ever owning their own home because housing prices have become unaffordable. That is the reality.

Our plan aims to improve the lives of Canadians, young Canadians, and Canadian families. The first part of the plan is to help Canadians save money, as I mentioned.

We propose eliminating all taxes on diesel sales, at least until July 1, 2027. That means extending the excise tax reduction until that date and eliminating the GST on fuel purchases. When Canadians are already paying so much for gas, the government should not keep taking even more from them every time they fill up. It should leave more money in their pockets.

As we saw, it was pressure from the Conservatives that forced the Liberals to suspend the federal fuel excise tax. We asked for this many times, and the Liberals laughed at us. Suddenly, they decide to adopt a Conservative idea. There were even two motions in the House, but they voted against them. In the end, they did it anyway. Recently, they announced that they would keep this measure in place a little longer, but they also officially announced that fuel prices will go up in February and will go up even more in March.

They had already anticipated both increases, and they decided against a 10¢ hike in favour of two five-cent hikes. They figured that it would be less obvious and that Canadians would not notice. However, Canadians are not fooled, especially when they get to the grocery store checkout and see the total.

Today, we are asking the Liberals to go further. We want them to get rid of the taxes that increase the cost of producing diesel, including the industrial carbon tax and the clean fuel regulations. They say they want to make life more affordable. The Prime Minister even said that affordability in Canada is the best it has been in a decade. I have not heard that from anyone in my riding.

I asked my constituents if they felt that life was cheaper than it had been in a decade. I asked them if they felt that they had saved money across the board this year. Everyone said no and that it was the opposite.

The Prime Minister is literally out of touch. I assume he is going to tell his people not to vote in favour of our motion this week, because he does not know just how much families are struggling to make ends meet. That is the reality of an out-of-touch Prime Minister who spends more time flying around burning gas than down here seeing how every family is living and is struggling to pay their bills at the end of the month.

Canadians do not need another explanation or another theatrical announcement. They want their bills reduced, period. We want the price gap with the United States to shrink, and we want to get that done in the next five years. Canada is going to have to increase its diesel production. Its production of other refined fuels is going to have to be ramped up to about a million barrels a day. That is a lot, but we can do it. In fact, we have the capacity to do it: We have the oil, the workers and the know-how. There is no reason to put up with the United States buying our oil at a discount and then selling us diesel at a higher price.

The second part of our plan is to source more domestically. Projects take a long time, and the government slept through the past 11 years. Now it is time to get projects into production faster, cut red tape and avoid supporting bills that stand in the way of these projects.

We were presented with Bill C‑5, which was supposed to fast-track projects at a speed never seen before. However, there has been an 18-month delay, because the Liberals have had to bring in a second bill to do the same thing. They changed one word in the title, but that does not produce more results.

We want to fast-track projects and establish Canada as an energy powerhouse. We want Canadians to be able to save money and have more money in their pockets. That is why we are calling on the House to support our emergency plan to reduce prices at the pump, lower costs for Canadians and Quebeckers, accelerate investments and strengthen our energy security. It is simple: We want to save families money, develop our resources, produce more energy and better protect our country from the next crisis. That is the emergency plan, and we urge the Liberals to support it. I challenge them to do this for Canadians.

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

Madam Speaker, I want to pick up on the point of short-term and long-term relief. The short-term relief is in Bill C-38, providing the tax break. In the long term, looking at the major projects and recent announcements about Pacific link and LNG phase two, we see that there are projects that can help us into the future.

I am wondering if my colleague can provide his thoughts on why it is important for us to have a balance of both short-term and long-term thinking when it comes to the issue of our natural resources.

[Abdelhaq Sari, Liberal, Bourassa, QC]

Madam Speaker, I thank my colleague for his eloquence, but I would like to stay on topic.

So as not to mislead anyone, it is very important to note that Bill C-38 does not affect Quebec's jurisdictions or its carbon market. It does not affect any portfolio. It is also important to point out that our government is not reneging on its environmental commitments; far from it.

[Abdelhaq Sari, Liberal, Bourassa, QC]

Mr. Speaker, before I begin, I would like to say that I will be sharing my time with the member for Mississauga—Lakeshore.

I am grateful for this opportunity to talk about the official opposition's motion, which addresses the reality of the cost of living. High prices are a daily reality in my riding of Bourassa and in many Montreal neighbourhoods.

In Montreal North, families are counting every dollar at the grocery store every day. Workers are wondering whether they will be able to fill up their tank before their next paycheque. Retailers are absorbing price increases they never chose. These people do not want slogans like the ones we are hearing from the opposition. They want initiatives and results.

We live in an unstable world. Wars on the other side of the world, trade tensions and weakened supply chains have impacts that trickle down to our kitchens and gas pumps. Canada did not trigger these crises, but it has a duty to respond, and our government is responding. We chose to act here and now. We chose to take action with Bill C‑38.

Bill C-38, the Canadian fuel affordability act, extends the suspension of the federal excise tax on gasoline, diesel and aviation fuel until January 31, 2027. Zero, not a penny, as we say back home in Quebec. This suspension has been in effect since April 20. Members opposite surely remember that. From day one, the price at the pump fell by an average of 11¢ a litre. In practical terms, that means savings of about $5 on a 50-litre fill-up.

We are doing this responsibly. We are doing it, of course, because we are thinking about Canadian families. The tax will be gradually reintroduced in February and March 2027 at half the regular rate: five cents per litre for gasoline and two cents for diesel. There will be no shock and no surprises.

The impact goes far beyond the family vehicle. From truck drivers and farmers to delivery companies and grocery stores, the entire supply chain that feeds the country will benefit.

Yes, diesel prices have risen around the world, but let us set the record straight and correct a few points that have been raised by the other side of the House. Diesel costs less in Canada than in most G7 countries. Since the end of February, prices have increased less here than in the United States, and the provincial diesel taxes, which range from roughly nine cents to more than 20¢ per litre, are not necessarily up to Ottawa.

Let us talk about affordability. That has to do with more than just the price per litre. The opposition wants to talk about fuel, so let us talk about it, but affordability is not just about fuel. It does not come down to just the price per litre. It is measured in a number of ways. I will quickly list them off and go through them in more detail afterward. Affordability also comes down to groceries, home ownership, pay and our children's lunch boxes. It is also measured in equity.

Let us talk about groceries. The new Canada groceries and essentials benefit provides 25% more than the old GST credit. It is tax-free, and it benefits more than 12 million low- and modest-income Canadians. A payment is coming up this week. With this summer's supplement, a family of four will receive up to $1,890 this year and about $1,400 a year for the next four years. The amount for a single person is $950 this year and about $700 for the next four years.

Affordability is measured in home ownership. For first-time homebuyers, there is no GST on homes up to $1 million, and it is reduced for homes between $1 million and $1.5 million. That means up to $50,000 in the pockets of our young dreamers who really want to make their dream of owning a home and getting on the property ladder a reality.

It is also measured in terms of pay, as I said earlier. We cut the tax rate for the first bracket of personal income from 15% to 14%. This has benefited 22 million Canadians. It puts $420 per year per person in their pockets, or $840 for a dual-income household.

It is reflected in a child's lunch box. Allow me to make a quick aside: It is a shame to hear people on the other side of the House say that this measure, which helps many young people and schoolchildren, is garbage. Canada's national school food program, which is now permanent, provides meals for approximately 400,000 children each year. It saves a family with two children nearly $800 a year on groceries.

It is also measured by our work and actions in the area of equity. Thanks to the automation of federal benefits, 5.5 million low-income Canadians will automatically receive the support to which they are entitled, such as the Canada groceries and essentials benefit and the Canada child benefit. A benefit that is not claimed because of a lack of information is, unfortunately, a benefit that is lost.

In closing, we have no control over the global forces driving up prices, but we do have control over the measures we must put in place here and now and over our government's initiatives, which must be just, fair, sincere, and, above all, responsible. This responsibility aspect is exactly I am so uncomfortable with the motion that has been introduced by the party across the way.

Our response is to take meaningful, measured action and, as I just said, to act responsibly. The opposition is proposing long-term solutions to a problem we are facing today. We are delivering results today while building a stronger economy for tomorrow. Making life affordable and strengthening our economy is not a choice between two goals. It is a single, unified commitment to families in Bourassa and across the country.

Taxation

[Tim Hodgson, Liberal, Minister of Energy and Natural Resources]

Mr. Speaker, I would invite the member opposite to join us in voting for Bill C-38 to extend the excise tax reduction.

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Speaker, the Liberals will vote for action.

All we see from the opposition are motions. They have an opportunity to do something for regular folks for once. They can vote for Bill C‑38. I invite all farmers watching us today to call their Conservative MPs and ask them to vote in favour of Bill C‑38. It will provide immediate, instant relief to farmers across the country. I hope the Conservatives will do the right thing for once.

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Speaker, I want to thank my colleague for his question. I have been watching him for years. Why does he not do something for once? Instead of asking a question, he could convince his colleagues to vote in favour of Bill C‑38. The best way to provide immediate relief is to extend the suspension.

The Conservatives have a chance to do something to help people for once. They can vote in favour of Bill C‑38. Will they do that?

[Joanne Thompson, Liberal, Minister of Fisheries]

Mr. Speaker, off the top I will say to the member to support Bill C-38. I will remind her that I speak with residents in her riding and across Newfoundland and Labrador on a regular basis, and they support the $1 million for small craft harbours. They support the $81 million for wild Atlantic salmon, which is going to see real benefits in our province. They support Churchill Falls and what it is going to mean for our economy. They support 5 Wing Goose Bay and the millions of dollars that are going to move into that community and the province.

These are tangible results. She needs to speak to more of her residents.

[Joanne Thompson, Liberal, St. John's East, NL]

Mr. Speaker, if the member opposite wants to do something tangible for the residents of her riding, the first thing she can do is speak to them about how important it was to receive the food and essentials benefit yesterday. Second to that, she could support Bill C-38, which will see the extension of the excise tax relief on diesel. These are tangible benefits for Canadians, not rhetoric.

[Tim Hodgson, Liberal, Minister of Energy and Natural Resources]

Mr. Speaker, this is how the member opposite can help his concerned member: vote for Bill C-38 and extend the exemption on the diesel tax. Why do they not do something that will actually make a difference?

Opposition Motion—Diesel Prices

[Marilyn Gladu, Liberal, Sarnia—Lambton—Bkejwanong, ON]

Mr. Speaker, I want to thank the parliamentary secretary to the government House leader for his passion for Canadian farmers and Canadian agriculture, and then I want to add to that.

He has reiterated that our government is clearly willing to bring affordability measures to help Canadians at this crisis time. Twice, we have exempted the fuel tax, with Bill C-30 and Bill C-38. However, let us not forget that some of those fuel taxes actually go back to municipalities to help with critical infrastructure.

We cannot predict what the situation is going to be in the Strait of Hormuz and whether that is going to be resolved soon. It would be irresponsible to extend past the time frame that we can predict, what the revenues would be and what the benefits for Canadians would be. Would the member agree?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it was our current Prime Minister who actually got rid of it.

The member opposite wants to challenge me and ask whose idea it was. Let me tell him something. At one time, the Conservatives were against it. They then became in favour of it and then they were against it. That is the Conservatives' track record on it.

The current Liberal leader, today's Prime Minister, who was elected in the last federal election, made a commitment to Canadians on the issue of affordability and he is delivering on the issue of affordability in many different ways. He is not just dealing with the tax on gas, whether it is the carbon tax or the levy that has been applied.

We constantly hear from members opposite, and even from my colleagues, about the importance of affordability. It has not stopped there. When we talk about affordability, this is affordability that benefits farmers. The tax break that was given, shifting from 15% to 14%, helped 22 million Canadians. To my Conservative friends, many of those people are farmers.

Understanding that there are ways in which we can directly help Canadians with the price of food, we not only converted the GST rebate but, significantly, put up front literally hundreds of millions of dollars and converted it into the Canada groceries and essentials benefit. Again, we are dealing with the issue of affordability. Once again, our farmers will benefit from that program.

I put it in that form because I want members to recognize that one does not have to be in the opposition to value and appreciate what our farmers do for our nation. They are the ones who provide the food on our table.

I have travelled on the highway in the Prairies, where we see four, five and more combines forming a row and harvesting wheat from the fields. It is an impressive sight. In the province of Manitoba, when I think of farmers and producers, it goes beyond just the crops. I have talked about how important the pork industry is to my home province of Manitoba, from those who process it to those who have the barns and get the pork ready to be put in places like HyLife, Maple Leaf Foods and Winkler Meats. These are important people who play a critical role in food security.

Food security is important to every member of the government caucus. For this reason, we often talk about why it is so important to support expanding the year-round production of things like vegetables and fruits so that we are less dependent on countries like the United States in dealing with food security. These are some of the measures the government has put in place to support our farmers and Canadians as a whole.

Today, we have the Conservatives saying, “Here is our idea”, because they want to one-up, in the best way they can, what the current government is proposing, even though when they had a chance to do things like this when they were in government, they did not. Now they are in opposition and they see a government actually taking some of these initiatives, they want to say they can one-up them.

No one can accurately predict what the price of fuel is going to be six months from now. We might like to think we can. This is a measure that was put in place on April 20, I believe, as part of the spring budget update. It was meant to provide temporary support, with a suspension until the Labour Day weekend. That was in Bill C-30, if members want to look it up. We are grateful that the Conservatives supported that legislation. That was great.

Over the summer, going into August, a decision was made that we needed to be able to extend that tax break, which is somewhat similar to what the Province of Manitoba did when it brought in its initial price reduction on gasoline. That is exactly what Bill C-38 would do. It would allow for that extension, which incorporates diesel and gasoline. I can say it makes a very tangible difference for consumers.

I am very much aware of the Bloc's concern with respect to the issue. How can we ensure that the tax break, whether it is given by the Province of Manitoba or the federal government, is being passed on to consumers? I believe we have some of the best civil servants and independent officers of Parliament, along with different stakeholders, who can ensure that those oil companies have a sense of accountability so that, in fact, that tax break goes directly into the pockets of the consumer. That is something we take very seriously. It is the reason why we are doing it in the first place.

This is a government that is not only focused on short-term relief. It is trying to resolve the problem and secure our future so that Canada can be more independent in issues of this nature. It is the reason why we had the Pacific link announcement. It is the reason why we had the LNG Canada phase two announcement. These are multi-billion-dollar announcements that are going to increase Canada's capacity.

The leader of the Green Party talked about refineries. If we want more refineries in Canada, we have to continue to do what the government is doing, which is working collaboratively with other jurisdictions. We have to create the climate that will allow for the expansion of our refineries. I think we have 16 now. Maybe it is 17. I am not 100% sure. I know Manitoba is one of the only provinces that does not have one. I would like to see private businesses, private enterprises and the provincial governments, in particular, working with the federal government on ways we can do that. This government, headed by this Prime Minister, has made it very clear that we are a government that will work collaboratively with other jurisdictions, the private sector and, in particular, investors to build a stronger and healthier Canada for all and an economy that is there for all Canadians. That is what we are all about.

[Marilyn Gladu, Liberal, Sarnia—Lambton—Bkejwanong, ON]

Mr. Speaker, of course, our government is committed to reducing taxes for Canadians. We brought forward Bill C-38 to take the tax off all fuel. I think, and hope, the member opposite would agree that it is very difficult to predict the situation globally in terms of the Strait of Hormuz and the various wars that are coming.

Would he not agree that the prudent thing is to continue to monitor the situation and introduce responsive affordability measures as we know more about the global situation?

[Jean-Yves Duclos, Liberal, Québec Centre, QC]

Mr. Speaker, I will be sharing my time with the member for Prince George—Peace River—Northern Rockies.

I am fortunate to rise today to speak to an important concern for the good and well-being of my constituents. I am obviously talking about the high cost of living.

However, before I do that, I would like to highlight the election of three important MLAs who will play a major role for my constituents in the coming years: Patrick Paquet, Étienne Grandmont and Julie White. These are three members from different provincial parties with whom I very much look forward to working to invest in our community and support middle-class families and those who need it most.

I would also like to express my great esteem for two members who have left office, either because they retired from politics or because they were defeated last night: Mario Asselin and Pascal Paradis. Mr. Asselin and Mr. Paradis did a tremendous amount of work for the well-being of their constituents, and I wanted to acknowledge that. Of course, I would also like to acknowledge the work of the volunteers on all the election campaign teams and mention how much is going to change for the riding teams of former members of Parliament. I wish those members and all the teams that supported them all the best, good health, happiness and success in the future.

Let us come back to the cost of living. We recognize that many Canadians, including many in my riding, are struggling to make ends meet. Many are struggling to pay for groceries, gas, rent, which is also very expensive, and other expenses. We also understand that the very high price of diesel is causing problems for many Quebeckers and Canadians. This is something that is happening around the world, and we need to understand, as everyone does already, that many factors are beyond the control of Canada and the Canadian government. That said, I want to point out that diesel prices here in Canada remain lower than in most of the other G7 countries.

The cost of living remains a significant concern for the Government of Canada. We have already introduced many measures to help Canadians in these hard times, and we will continue to do so. For example, we cut taxes for 22 million middle-class Canadians, and we eliminated the federal consumer carbon tax. The Government of Canada also removed or reduced the GST on eligible new homes for first-time home buyers. Just a few months ago, we introduced the Canada groceries and essentials benefit to provide direct support to households that need it most. I will come back to that in a moment.

We also introduced Bill C-38, the Canadian fuel affordability act, to help with the cost of living. Bill C-38 will extend the temporary suspension of the federal fuel excise tax until January 31, 2027. In practical terms, that means that Canadians will continue to save about $5 every time they fill up their gas tank.

As members have surely noticed, when this measure was implemented in April, it had an immediate effect. The price at the pump immediately dropped by an average of approximately 11¢ a litre across Canada. By extending this rebate through to January, we will be able to continue to support Canadians and businesses that are suffering because of high fuel prices in general. The excise tax will be gradually reinstated. Following the current temporary suspension, the excise tax will be applied at only 50% of the regular rate for two months, which means savings of approximately five cents a litre on gas and two cents a litre on diesel in February and March 2027.

The motion we are debating today focuses mainly on energy prices, but we obviously need to analyze all of this in a broader context, namely, affordability for Canadians. We have already introduced many measures to help Canadians make ends meet. A good example, as mentioned earlier, is the new Canada groceries and essentials benefit. It is a significantly enhanced version of what was previously known as the GST credit.

The big difference is that, with this enhancement, Canadians will receive 25% more money this year and over the next four years of benefits. These tax-free payments are helping more than 12 million low- and modest-income Canadians, including tens of thousands of people in my own riding. If we look at the one-time top-up to the benefit that was paid this summer, a family of four will receive up to $1,900 this year and about $1,400 in each of the next four years. Eligible Canadian families received a payment just yesterday, on October 5, and the next payment will be made in three months.

I will end with a very quick summary of four very significant affordability measures for people in my riding.

First, there is the Canada child benefit, which reduces poverty by 50%, especially in neighbourhoods in my riding where families are struggling to make ends meet. Nine out of 10 families receive this benefit.

Second, there is the Canadian dental care plan, where 88% of participants, including tens of thousands of people in my riding, say they are very satisfied. Six million people are enrolled in the Canadian dental care plan, including a very large number in Quebec. It also reduces pressure on Quebec's health care system, which really needs it, and it improves not only oral health, but overall health. Third, there is Canada's national school food program, which helps 100,000 children in Quebec alone go to school on a full stomach. Le Pignon Bleu, in my riding, is doing incredible work partnering with this important program. It is not just any food; it is healthy, locally produced and consumed, and contributes to children's overall development. Fourth is the national child care program. Some 900,000 children in Canada benefit from it. Eight provinces have reduced child care costs to $10 a day across the country, and the remaining provinces and territories have reduced child care costs by more than 50%. In Quebec, that amounts to $2 billion in federal transfers to the provincial government, which is equivalent to funding 150,000 child care spaces in Quebec alone.

In closing, I know that there is still much work to be done, but we will always be there to help Canadians, particularly those who need it most.

[David Bexte, Conservative, Bow River, AB]

Mr. Speaker, I thank my colleague, the member for Long Range Mountains, for sharing her time with me. I truly appreciated the words she had to share with the House. They were fantastic.

It is always an honour to rise on behalf of the people of Bow River. During the debate on Bill C-38, I invited the Prime Minister to Bow River. I asked him to stand in a field in southern Alberta at 10 o'clock at night, beside a farmer and his son facing the rain. That invitation still stands, even though the harvest is wrapping up in southern Alberta. It is probably the most expensive harvest these farmers have faced in their entire lifetime.

At this time of year, the work on our farms does not end when the sun goes down. The crop still has to come off, trucks still have to run and the livestock still has to be fed. The harvest is when a family finds out what a year of work will bring. The seed has been paid for, the fertilizer has gone on the ground and the machinery payments keep coming, and now the family has to bring the crop home. They cannot leave the crop standing until diesel gets cheaper. They cannot ask the weather to wait while Ottawa makes up its mind. It is the harvest.

A modern combine burns 60 to 80 litres of diesel an hour. Harvest days run 12 hours or more. That is 800 litres a day for one machine on one farm in one day. Diesel in this country now averages about $2.60 a litre, and it has hit record highs for weeks. It should not cost this much to fuel the country with the fourth-largest oil reserves on earth. Canada should have the most affordable diesel in the world. The government will point overseas, at the geopolitical and the Strait of Hormuz. Oh my. Wars and global turmoil affect fuel prices everywhere, but they do not explain the extra costs Canadians have to bear.

Canadian diesel is now 24¢ a litre more than the American average and 31¢ a litre more than the global average. A wheat farmer in Montana, just a short drive south of Taber, Alberta, sells into the same world market as my neighbours, but an Alberta farmer is paying 24¢ a litre more for diesel. Before any seed is in the ground, our farmers are already starting the season at a competitive disadvantage. Canadian farmers are paying more for fuel than their competitors in the United States and other markets for three main reasons. These are high taxes, a weak Canadian dollar and an overreliance on American refineries. That is why I support this motion and our emergency fuel relief action plan.

At the end of September, the national diesel price was around $2.60 a litre. For a farmer, this is a bill that grows with every hour the combine runs. The Grain Growers of Canada has put that cost into terms this House should understand. One large combine burning 70 litres an hour and working eight hours a day for 30 days, with bulk diesel rising from $1.10 to $2 a litre, has added to the harvest a bill of more than $15,000. This is the increase for one machine. It is not the increase for the tractor pulling the grain cart, it is not for the trucks hauling to the elevator and it is not for the truck delivering fuel.

That money could pay down the operating loan. It could replace worn tires. It could help carry the farm through the winter. Instead, it goes into the fuel tank. From the fuel tank, it goes into government coffers. A farmer can work longer hours, but a farmer cannot bargain with an empty tank.

This motion is not just for our farmers. It is for every Canadian family that sits down at the dinner table each night. Think about a loaf of bread. Before it reaches the shelf, someone has to grow the wheat, someone has to harvest it, someone has to haul it to be milled, the flour must reach the bakery and the bread must reach the store. Each of those trips requires fuel. The same is true of potatoes, corn, vegetables, meat and the feed that keeps livestock growing. Every step carries tax. The last stop is the family at the till. By the time that food reaches the checkout, the family buying it is paying the compounded cost of every tax along the way.

The government cannot claim to care about food affordability and grocery prices by sending Canadians a few hundred dollars each year and ignoring what is driving those prices higher. It is the fuel for the farmers, truckers and businesses that produce and deliver our food. Parents feel it every week. They put groceries back at the till. They buy less meat. They skip fresh fruit.

The Conservatives are not asking for anything complicated. Our emergency fuel relief plan has two parts.

The first part would save Canadians money today. We would take every federal tax off diesel sales until at least Canada Day. That means extending the full excise tax cut until July 1, 2027, and taking off the GST.

The government announced plans to keep the excise tax off only until January 31, 2027, and half the tax would return in February. The full tax would return on April 1, April Fool's Day, just as farmers are preparing for another growing season. Why bring the tax back just as the seeding bills start to arrive? It only goes to show that the government does not keep farmers in mind when it drafts policy and, by extension, it does not keep Canadians in mind.

Farmers plan their year in the winter. They sit down with their families and then with their bank and work through the numbers before a single seed goes into the ground. They need to know what fuel will cost, because uncertainty at the pump becomes uncertainty on the entire farm.

We would also take the tax out of making diesel, permanently scrap the federal industrial carbon tax and permanently scrap the clean fuel regulations. According to Environment and Climate Change Canada's projections, and as reported by the Parliamentary Budget Officer, the clean fuel regulations are projected to add up to 16¢ per litre to diesel and 17¢ per litre to gasoline by 2030. That is not small. Natural Resources Canada's agriculture sector energy use analysis indicates that 2023 fuel use on Canadian farms was roughly 3.8 billion litres of diesel and 1.5 billion litres of gasoline. That consumption would mean $613 million in additional diesel costs and another $254 million in gasoline costs for the agriculture sector alone. Altogether, that is nearly $870 million added in annual fuel costs. These are costs that farmers cannot simply absorb and that ultimately work their way through the entire food supply chain. That alone more than wipes out the $600-million benefit seen by increased canola sales.

The second part of our motion today is about fuelling our country at home. Canadian workers should be turning Canadian oil into Canadian fuel. Instead, we rely too much on American refineries. We pay for that diesel in American dollars, and with a low Canadian dollar, every one of those litres costs more. We need to create shovel-ready zones and prepermit land for refineries, pipelines, rail and storage. A company that follows every safety and environmental rule should know it can build before even applying. We should let companies deduct 100% of their investment in the first year in new refineries, refinery expansions, pipelines, rail, diesel and crude storage and the equipment to run the oil through those plants.

The Conservatives call on the government to build a strategic reserve for refined fuel. Today, Canada keeps no national emergency reserve. That is a problem, especially in a global crisis. The goal is clear. Boost Canadian diesel production to one million barrels a day, give every Canadian business and every Canadian family access to affordable Canadian diesel and close the price gap with the United States within five years.

This comes back to two kitchen tables. At one table, a farm family is working through the bills. The farmers have had a long day in the field and the numbers are bigger than they have ever been before. At the other table, a family is working through a grocery receipt. That family is deciding what needs to be left off next week's list because the bills are higher than they have ever been before. The families might live hundreds of kilometres apart, but the relationship between the two cannot be ignored. The cost of fuel hits both of them. We should not ask either family to accept another speech about affordability without action to follow it. The Liberal government's actions have fallen short. They have made matters worse for Canadian families.

Today, members have a choice. They can call on the government to extend tax relief. They can support making fuel easier to produce, store and move. They can stand with the people who grow our food and the people trying to afford it. The crop will not wait and the bills will not wait, and neither should this House.

I urge all members to support this motion.

[Marilyn Gladu, Liberal, Sarnia—Lambton—Bkejwanong, ON]

Mr. Speaker, I would like to thank the member opposite for her advocacy for the citizens of Long Range Mountains.

As she may know, I worked in the refining business for decades. Although there have been some supply chain increases, on the whole, the price of fuel is, as she said, greatly impacted by global situations, which we do not have a lot of control over and are sometimes hard to predict. Our government has introduced measures recognizing the affordability issues that Canadians are facing, and Bill C-38 would take the tax off fuels until next year. Can the member comment on whether the Conservatives will support these measures?

Finance

[Karina Gould, Liberal, Burlington, ON]

Mr. Speaker, I have the honour to present, in both official languages, the fifth report of the Standing Committee on Finance in relation to Bill C-38, an act to amend the Excise Tax Act on the extension of the federal fuel excise tax relief.

The committee has studied the bill and has decided to report the bill back to the House without amendment.

Taxation

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

Mr. Speaker, I would like to take this opportunity to wish my colleague a happy Franco-Ontarian Day. In answer to his question, I would also like to make two points.

This week, our government introduced two very important bills that go hand in hand. We introduced Bill C-38, which comprehensively addresses affordability issues, and I could name others, considering the numerous initiatives introduced over the past few months. We also introduced Bill C-39, which is going to create good jobs and strengthen our economy. That is what Canadians in our ridings want.

The Economy

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

Mr. Speaker, I appreciate some of the member's responses. He and I will debate another day how many times he voted in favour of the consumer carbon tax and how he was one of the main cheerleaders for the consumer carbon tax until he found it not to be beneficial to his election options. He realized that it was very unpopular, so then instead of being for it, he was against it.

I also agree with the cutting of the gas tax. We talked about that for years and years, but last session, the member voted four or five times against cutting the gas tax, when the Conservatives brought a motion forward that resembles Bill C-38, which the Liberals just brought forward, so he also voted against that not so long ago.

The member is the Parliamentary Secretary to the Minister of Finance. I do like to have this debate back and forth because he did talk about a whole suite of programs. How much would it cost the Liberals to cut taxes so people had more money in their pockets and not have some of those programs?

Business of the House

[Andrew Scheer, Conservative, Regina—Qu'Appelle, SK]

Mr. Speaker, the long summertime drought of Thursday questions finally comes to an end. I know much relief is felt not just in the parliamentary precinct but across the land.

I would like to take this opportunity to welcome the government House leader back after what I am sure was a very busy summer for us all as we were out in our constituencies meeting with Canadians, hearing directly about their concerns and now bringing their issues back here to Parliament.

I would like to ask the government House leader if during his travels this summer, he heard from Canadians who want to move past the rhetoric to results and who want the government to actually save them money. We know the government has conceded that gas taxes take a big bite out of the economy and hurt affordability.

In order to save Canadians money, will he finally agree to the Conservative plan and not just have a temporary reprieve of the gas tax until January, as we saw with Bill C-38? Are there any plans for the government to make that last longer, all the way to Canada Day? Now that the government has conceded the principle that gas taxes hurt the economy, will it abandon the fuel standard tax and bring in legislation to repeal it?

Finally, after all the photo ops, rhetoric and bluster, will there be a single new project that has gone through the Major Projects Office or benefited from the unprecedented powers of Bill C-5? Will we finally get to see things built, or was this summer of press conferences and MOUs just a bunch of political theatre?

Taxation

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Speaker, the Conservatives are still enthusiastic about Bill C-38, which is a good thing, because in fact, farmers know that we stand with them. The government, under the Prime Minister, has suspended the fuel excise tax, which will reduce the tax on diesel. These are facts. This is not a parallel reality. This is going to help our farmers. This is going to help logistics across the country. This is going to reduce the pressure on food prices across the nation.

I am happy to see the Conservatives so enthusiastic to support Bill C-38.

[Mark Carney, Liberal, Prime Minister]

Mr. Speaker, this House will have an opportunity to pass Bill C-38, which will lower the tax on diesel. This House will have an opportunity to vote on the building Canada strong act, which will move this country forward.

Let me make sure Hansard is correct. The government passed the act last year, and Contrecoeur, the Mackenzie Valley pipeline, Darlington, the north coast transmission line and the Matawinie mine are all major projects now being built thanks to this government.

The Economy

[Madeleine Chenette, Liberal, Parliamentary Secretary to the Minister of Canadian Identity and Culture and Minister responsible for Official Languages and to the Secretary of State (Sport)]

Mr. Speaker, the global economy is undergoing a rupture. Geopolitical threats are mounting, and countries around the world are grappling with severe trade disruptions and significant economic risks. This includes the ongoing conflict in the Middle East, which continues to disrupt global energy supplies, drive up energy prices and increase uncertainty worldwide. Canada, as we all know, is not immune to this turbulence. That is why we tabled Bill C-38 to extend the temporary suspension of the federal fuel excise tax.

As members of the House will remember, last spring our government temporarily reduced federal fuel excise tax rates to zero cents per litre. While that measure was set to expire on Labour Day, Bill C-38 proposes to extend it until January 31, 2027. Fifty per cent of the regular excise tax rate would then apply from February 1 to March 31, 2027. This means that Canadians would continue to benefit from lower taxes, saving 10¢ per litre on gasoline and four cents per litre on diesel, helping households and businesses manage transportation and operating costs.

For many small businesses, transportation and fuel costs remain a significant expense. Extending this relief measure will help businesses manage their costs while continuing to invest and create jobs.

However, supporting Canadians through the current challenges is not just about providing immediate relief. It is also about ensuring that our economy remains strong, competitive and resilient in an uncertain world. While new U.S. tariffs add uncertainty for Canadian businesses and workers, Canada is starting from a position of strength.

With a robust economy and a clear growth strategy focused on driving investment, increasing productivity, strengthening domestic industries and expanding access to global markets, Canada is well placed to respond to external pressures.

Domestic activity has remained strong and our continental supply chains have been more resilient than expected, thanks to the adaptability of Canadian businesses and the fact that CUSMA protections shielded approximately 85% of Canadian merchandise exports from recent U.S. actions.

The business climate in Canada has recovered, and companies are diversifying both their suppliers and their markets. The figures show that Canada has what the world is looking for. Canada leads the G7 in terms of per capita foreign direct investment inflows. Overall, real GDP grew by 1.9% in 2025, despite persistent global uncertainty.

The outlook for the future remains encouraging. A Statistics Canada survey shows that businesses plan to increase their capital expenditures this year, while the International Monetary Fund forecasts that Canada will post the second-fastest growth in the G7 in 2026 and 2027.

Since the start of 2025, Canada has created more than twice as many jobs per capita as the United States, with the majority of these jobs in the private sector. Things have really taken off since the start of 2025. At the same time, inflation averaged 2.1% in 2025, while wages have risen faster than prices over the last five years.

Overall, these results show that the Canadian economy continues to grow, attract investment and create jobs despite a highly uncertain global environment. These results are no accident. They are truly the result of work that enables us to strengthen the economy and prioritize affordability—

[Brad Vis, Conservative, Mission—Matsqui—Abbotsford, BC]

Mr. Speaker, it is a pleasure to rise in the evening.

Before I begin my comments, I will note that we have had a debate throughout the entire day on Bill C-38. Many of the things I want to say that relate to my question from June were said during the debate on Bill C-38 as well. The point I would like to make, and I hope the government side can hear it, is that even though the Prime Minister has commenced a process to erase the legacy of Justin Trudeau, to move away from his most disastrous policies, structural reforms are still needed to ensure that small businesses, the businesses that pay the majority of taxes in Canada, are made whole.

We are going to see that through taxation and regulatory reform on a major scale, but we have not seen that yet. I encourage the government to heed the words that small businesses, the ones with eight to 10 employees, still need market access to the United States. These are 50-year-old relationships that are in jeopardy right now.

Today, business leaders from across western Canada came to Parliament. I will acknowledge that they are happy with Bill C-39, the Liberals' big, beautiful bill. They are happy about the attack the Liberals are going to make on organized labour, even though the Conservatives are still debating it and trying to figure it out. However, they have stressed the need for regulatory reform and measures that are going to help small businesses in western Canada. In Manitoba, for example, 50% of exports go to the United States. It is higher in a lot of other provinces. We have to take that relationship seriously.

In my question back in June, I highlighted that Canada has lost 100,000 entrepreneurs over the last two decades, and there has been a 19% increase in business exits since 2019. That is not acceptable. Right now, we are facing major challenges, but the government can do a couple of things better. It can look at the RTRI. Very few businesses understood what that program was, and the Minister responsible for Pacific Economic Development Canada was around nine months late in delivering it based on the timelines he stated when the program was announced.

If the Liberals say we are at economic war, why would they make businesses wait nine months for a program they said they would deliver in three months? That is simply not acceptable. We need confidence that the public service, the ministers and the parliamentary secretaries are going to step up, hold their public servants to a higher standard, do things in their power and actually move at the speeds they said they would in the last election. So far, we have not seen that. It has to change. We have to stand up for Canada. The government needs to stand up for Canada, and it is not doing that in a responsible way.

The final statistic I will mention is that according to a TD Economics report, graduates in mathematics, computer science and engineering are less likely to remain in Canada than non-STEM graduates. The University of Waterloo shows that the highest performing students are the most likely to leave Canada after graduation. Those are the entrepreneurs starting businesses. They are going to the United States to do that. We need to bring in the structural reforms to support small businesses and—

Employment

[Madeleine Chenette, Liberal, Parliamentary Secretary to the Minister of Canadian Identity and Culture and Minister responsible for Official Languages and to the Secretary of State (Sport)]

Mr. Speaker, one of the things that I really like about adjournment proceedings is that it does allow us the chance to publicly correct the record.

Conservatives were very quick to say that Canada was in a technical recession. We now know that is not the case. In August, Statistics Canada confirmed that the Canadian economy grew at an annualized rate of 3.3% in the second quarter, and also revised its Q1 figures to show that the economy grew in those months as well.

It would be nice if the Conservative Party were as quick to celebrate these achievements as they are to tell us that Canada is broken. However, sticking to the facts does not make for good social media clips or help with fundraising emails.

The world is changing rapidly. The U.S. is imposing new tariffs on Canada that are designed to hurt and divide us. At the same time, conflicts in Europe and the Middle East are driving up prices the world over. Despite these challenges, however, Canada continues to show resilience. While the new U.S. tariffs are creating headwinds, the Canadian economy is holding to a position of relative strength.

We certainly recognize that some workers, families and small businesses continue to be under pressure. That is why it is important to look at the facts, as well as the Canadian economy's overall performance. Canada's economic strength is recognized internationally. The International Monetary Fund predicts that Canada will be one of the fastest-growing economies in the G7 this year and next. Economic growth rebounded strongly in the second quarter, with real gross domestic product up 3.3%, as I mentioned. Canada had the strongest quarterly growth in the G7 and posted a second consecutive increase in real gross domestic product per capita. In addition, our net debt-to-GDP ratio sits at just 10.2%, far below the G7 average of 101.8%. In fact, Canada's net debt burden is far lower than any other G7 nation.

These facts show that Canada's economy is built to withstand global uncertainty and to continue to grow. This resilience is a direct result of the targeted measures our government has taken to support Canadians, such as making fuel more affordable for Canadians. That is why the government introduced Bill C-38, which extends the temporary suspension of the federal excise tax on gasoline, diesel and aviation fuel until January 31, 2027, after which 50% of the usual excise tax rate will apply from February 1 to March 31, 2027.

By reducing fuel and transportation costs, this measure will provide targeted relief to workers, families, farmers and businesses across the country, including in sectors that rely heavily on transportation and construction.

The government is also taking broader steps to make life more affordable, including through the Canada groceries and essentials benefit, income tax cuts for 22 million Canadians, the cancellation of the consumer carbon tax, and the GST relief for first-time homebuyers of new homes. Taken together, these measures will allow Canadians to keep more of their hard-earned money. Each one reflects a consistent principle that our government upholds, specifically that federal support must be timely, targeted and fiscally sustainable.

The Economy

[François-Philippe Champagne, Liberal, Minister of Finance and National Revenue]

Mr. Speaker, I have the right answer for the Conservatives, and it is called “C-38”.

Today, they have a chance to show Canadians they know that the number one issue is affordability, the cost of gas, the cost of food and the cost of housing.

The good news is that we have taken action on all three. Today, I had the pleasure of introducing Bill C‑38, which extends the temporary suspension of the federal excise tax on gasoline.

People at home are watching. Will the Conservatives do the right thing to help Canadians?