Finance Committee on Dec. 8th, 2020

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, as you know, we have announced some additional taxes to level the playing field, such as the introduction of GST/HST on all Internet providers. I think that's fair for Canadians companies. It's the right thing to do.

[The Chair, Liberal, Wayne Easter]

I have to go back to Mr. Poilievre.

[Pierre Poilievre, Conservative, Carleton, ON]

Will the minister, yes or no, freeze the carbon tax, the payroll tax and the liquor tax, rather than fleecing Canadians?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, I think it is quite wrong to use the term “fleecing Canadians” when it comes to the taxes we pay to contribute to our society and to our communities. As the member knows, we announced the introduction of GST/HST—

[The Chair, Liberal, Wayne Easter]

Mr. Poilievre, there is a point of order.

Go ahead, Ms. Jansen.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Mr. Chair, on a point of order, I'm concerned that the answers are getting longer and longer. You've done a great job setting the precedent. I wonder if the minister could continue to match the time.

[The Chair, Liberal, Wayne Easter]

I don't believe that's a.... Well, I guess it's a point of order.

I'm trying to keep them relatively the same. We're going back to Mr. Poilievre.

[Pierre Poilievre, Conservative, Carleton, ON]

Very directly, will the minister raise carbon taxes, payroll taxes and liquor taxes right in the middle of a pandemic, yes or no?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, we said what we had to say about tax policy. In the fall economic statement, we committed to introducing taxes on vacant property owned by foreign residents—

[Pierre Poilievre, Conservative, Carleton, ON]

Then there's no answer to that question after five attempts. Maybe we'll have better luck here.

How much is the minister proposing to raise the borrowing limit?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, we have outlined very carefully, and I believe very prudently, our plans on the borrowing limit. We believe the prudent level is $1.8 trillion.

[Pierre Poilievre, Conservative, Carleton, ON]

That would bring us how close, in debt-to-GDP numbers, to the level we reached in the 1990s when Canada almost defaulted on its debt? I'm just looking for the number.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Actually, Mr. Chair, it's an inexact question, because we are not proposing to borrow that amount of money. We are simply proposing to raise the limit. because that's the prudent thing to do.

[Pierre Poilievre, Conservative, Carleton, ON]

If you're not proposing to borrow that amount, you don't need the authority to do so.

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, actually, that's not the case at all. A prudent government always creates buffers and creates fiscal space, but as the member knows, there is a very clear difference between borrowing authority and the amount the government has actually borrowed.

[Pierre Poilievre, Conservative, Carleton, ON]

This is the biggest increase in borrowing authority ever sought by any government in Canadian history. It's a monstrous increase to $1.8 trillion.

Why should Parliament give the government that authority if the government claims it doesn't even need it?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, I did not say that the government didn't need the borrowing authority. What I said quite clearly is that there is a clear difference between borrowing authority and the amount the government actually borrows.

As for supporting this legislation or not, it's up to each member of the House to vote as they choose. I believe this is a prudent path that will support Canadians.

[The Chair, Liberal, Wayne Easter]

Mr. Poilievre, this is your last question.

[Pierre Poilievre, Conservative, Carleton, ON]

Mr. Chair, will the minister tell us if there is anyone to whom the Bank of Canada is accountable for all the money it's printing? Is there anyone—any officer, any minister, any human being—to which the Bank of Canada is accountable, yes or no?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, the Bank of Canada is an independent institution. Its independence is one of the key reasons for the strength of the Canadian economy. I think the Bank of Canada is accountable to the people of Canada.

[The Chair, Liberal, Wayne Easter]

Thank you both.

We will go to Ms. Koutrakis, who is splitting time with Mr. McLeod.

Go ahead, Ms. Koutrakis.

[Annie Koutrakis, Liberal, Vimy, QC]

Thank you, Mr. Chair.

Minister, thank you for your opening statement.

I want to begin by congratulating the Prime Minister for putting together such an outstanding team at the Department of Finance to lead us through the remainder of the pandemic and into the economic recovery.

Minister Freeland, Minister Fortier, our colleague Sean Fraser and deputy minister Michael Sabia bring the experience, skills and leadership our country needs right now. I have no doubt that Canadians are in good hands.

Minister, would you give us an idea of the principles behind the $70 billion to $100 billion the government plans to put forward to support the recovery?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Thank you for your question.

I would like to first thank my fellow member for her hard work.

We all know the government and Canadians are doing a lot to build a resilient economy and get back on their feet, even as we deal with the pandemic. We also know, however, that, despite all that we are accomplishing, the pandemic has created a recession.

Earlier I said that 80% of the jobs lost have already been recovered. While that is a good thing, 640,000 people who lost their jobs because of the pandemic are still out of work. That is why we need a growth plan. The government must invest in the economy to ensure a robust and strong recovery. Let me reassure all the members: our primary target is jobs.

It is the government's responsibility to reassure Canadians and make sure they know we will continue to work for them, so that every Canadian who had a job before the pandemic has one after the pandemic. For that reason, we announced a growth plan that will invest $70 billion to $100 billion, as the member said.

I would be pleased to work with the committee on the plan.

[The Chair, Liberal, Wayne Easter]

I will have to go to Mr. McLeod. Sorry, Annie.

Go ahead, Mr. McLeod.

[Michael McLeod, Liberal, Northwest Territories, NT]

Thank you, Mr. Chair.

Thank you to the minister for appearing before us.

I have a couple of quick questions. The first one is around housing.

One of the greatest areas of concern in the Northwest Territories—one that has been made even clearer during the pandemic—is access to safe and affordable housing. Is the government prepared to take further steps in budget 2021 to properly address the housing needs of northerners?

The second question is around an issue I've heard from territorial, indigenous and community governments. They're struggling to meet the cost-sharing requirements of existing federal programs, and COVID has made it even harder. Is the Government of Canada open to providing greater flexibility to ensure that very important projects for our regions are able to move forward?