Finance Committee on March 21st, 2024

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Minister, I'm sorry. I'll have to correct you, because I only have a limited amount of time. An Ontario family will pay $1,600 into this carbon tax. They get a $1,000 rebate, so on average they'll pay $600 into this carbon tax scam. I wanted to clear that up. That's according to the PBO.

I want to move on.

Do you not agree with the 70% of Canadians and premiers, including a Liberal premier and other Liberal parties, that your carbon tax increase on April 1 should be paused, that there should be a spike on the hike?

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

We're at the finance committee. Precision in numbers in important, and let me just be precise that Ontario families this year will be getting $1,120 in an absolutely real rebate that is making a difference to them. The other—

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

That's not according to the PBO.

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

—thing that is making a difference to Ontario families is the fact that, thanks to Canada's climate action policies, we are able to attract inward investment. The investments in EV plants by Volkswagen and Stellantis are generational.

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

Minister, I'm sorry—

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

They're transformational.

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

As I have only a limited amount of time, I will remind you that—

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

They create tens of thousands of jobs, and those jobs are only possible because Canada has clean energy and an environmental plan.

[Jasraj Singh Hallan, Conservative, Calgary Forest Lawn, AB]

—your government was lambasted by the OECD. The ranking of your climate action plan fell from 58 to 62 out of 67 countries on the climate change performance index. We actually got worse. It's another embarrassing stat for Canada under your government.

You want to continue to hit hard-suffering families that right now are going more to food banks with an increase on April 1 of your carbon tax. Why are you more obsessed with this carbon tax than listening to the 70% of Canadians who are finding it hard to feed themselves and their kids and heat their homes? Why will you not listen to them and just stop the tax on April 1 and call a carbon tax election so Canadians can decide whether they want a carbon tax or not?

[The Chair, Liberal, Peter Fonseca]

Minister, I'm going to need a really short answer. We are well over time. Then we have to get to our next member.

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

Well, let me just say that the $1,800 Alberta families will be getting this year will make a real difference, and not having a climate plan means saying no to investment in our economy and to jobs for the future.

[The Chair, Liberal, Peter Fonseca]

Thank you, Minister.

Now we are going to MP Dzerowicz, please.

[Julie Dzerowicz, Liberal, Davenport, ON]

Thank you so much, Mr. Chair.

I want to say thank you, Deputy Prime Minister and Minister of Finance, for being here.

Thank you, Deputy Minister Chris Forbes, for being here as well.

As we all do, I'm constantly going out to the residents in my riding of Davenport. I always ask them, “What are your top priorities?” One of the postcards that came back to my office said, “Housing, housing, housing, and did I say housing?”

I know you mentioned in your opening remarks a few things about how housing is a core part of the fall economic statement, and I know that the fall economic statement includes significant funding to help get more homes built faster. However, for the average person in my riding of Davenport, can you walk us through how the measures we have in Bill C-59 will speed up the construction of new homes, not only in Davenport but across the country?

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

Thank you, Julie.

Daniel's children asked me where I live. I can tell them I live in Toronto. Julie—who just asked a question—has a riding right next door to mine.

I absolutely agree with your judgment about the priorities of your constituents. My constituents would say the same thing. It is housing, housing, housing. That's one of the reasons that anyone around this table who purports to care about Canadians needs to act with alacrity to pass this legislation. In addition to the essential two clean tax credits—which are actually of particular value to Alberta, as I heard in Calgary six days ago—the fall economic statement included significant measures, and Bill C-59 will pass them into law to get more homes built faster.

Here are some of the things we're doing.

The housing accelerator fund has $4 billion, which is money to do deals with municipalities across the country. It's going to help build 100,000 homes. As you know very well, Toronto has a deal under that fund.

We are removing the GST from new rental housing, including, in this bill, for co-operative housing corporations. It's so important. It's going to get more homes built faster. I think all of us can support co-ops for what important permanently affordable housing they create and what wonderful communities they create as well.

We have investments in low-cost financing for rental construction. That is going to help build 30,000 more homes per year. The apartment construction loan program, to which the fall economic statement added $15 billion, will help build another 30,000 homes.

[Julie Dzerowicz, Liberal, Davenport, ON]

Coming out of a global pandemic and the subsequent inflation, lots of Canadians are going to be renewing their mortgages. Rightly so, they're worried about interest rates and whether they're going to be able to afford to pay their mortgage at higher interest rates when they renew.

I know that we've introduced a mortgage charter in the fall economic statement. Can you explain in plain language to a person in my riding of Davenport who might be about to renew their mortgage how this charter is going to help Canadians ensure that they can renew them in an affordable way?

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

Absolutely.

I want to start where you started, Julie. Canadians are really concerned about inflation and interest rates. That's why I started with good news: For two months in a row, in January and February, inflation has been within the Bank of Canada's target range. That is so important, because interest rates are really high. As inflation stabilizes in the Bank of Canada's target range, that can create conditions that make it possible for rates to come down. That's why I emphasized that. I know so many people are anxious.

The mortgage charter is in place to give people some certainty, some relief, in knowing what they can count on when they talk to their financial institution about renewing their mortgage. One of the things people need to know is that they can talk to their financial institution about a commitment that they do not need to requalify if they are an insured mortgage holder under the insured minimum qualifying rate. They can switch lenders. That gives them more options and more opportunities. Mortgage providers also have to waive fees and costs that would otherwise be charged for relief measures.

I really urge Canadians to have those conversations with their financial institutions. The mortgage charter requires them to be supportive of the needs of people who have their mortgages and who are challenged in this high interest rate environment.

[Julie Dzerowicz, Liberal, Davenport, ON]

Thank you so much. I think that's my time.

[The Chair, Liberal, Peter Fonseca]

Thank you, MP Dzerowicz.

We'll go to MP Ste-Marie, please.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you, Mr. Chair.

Good morning Minister and Mr. Forbes. Thank you for being here.

I'm going to begin with a request, Minister, and then ask two questions.

Firstly, your department provided the committee with a table of program by program estimates for the $83 billion towards the green economy. Can your department provide these estimates broken down by sector, so that we can know to whom these funds will be distributed? That's my request.

I will now ask my two questions. The first concerns cities, municipalities and their various organizations, which have been asking us to do something about the renewal of the gas tax. They'd like to see numbers and they'd like it to be unconditional, because it slows down the process and makes it more burdensome. What can you tell us about that?

My second question concerns the cultural sector, which is very worried. The Canada Council for the Arts seems to be turning down nearly all project applications. Artists, industry, festivals, music, museums and other organizations are on the edge of an abyss. They don't know whether the programs are going to be renewed or whether they will be adjusted for inflation. Do you have anything to say to them today?

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

Thank you very much, Mr. Ste‑Marie, for your questions. I'll try to answer them.

For a start, we'd be happy to follow up with more information about our investments in the green economy. Thank you for mentioning those we are making now. It's precisely because these investments are so important that it's essential to have a climate plan. Without a sound plan, it would be impossible for Canada and Quebec to attract investment, and we are currently doing just that. So thank you very much. Bill C-59 is important, because it creates two investment tax credits.

As for the municipalities, my colleague the Hon. Sean Fraser has been monitoring this file carefully, as has Minister Rodriguez, the Prime Minister's Quebec lieutenant. We know that March 31 is rapidly approaching, but we are convinced that we will reach an understanding with Quebec.

Thank you for the question about the cultural milieu, because it gives me an opportunity to congratulate Quebec creators. I'm thinking specifically of Monia Chokri, whose film Simple comme Sylvain, as I am sure you are well aware, won France's César award for best foreign film. This excellent and remarkable film received support under Telefilm Canada's contribution to Quebec's outstanding cultural industry.

My colleague Pascale St‑Onge recently announced the renewal of funds for Telefilm Canada, which amounts to $100 million over two years, with further announcements forthcoming. We understand the importance of culture in Canada and Quebec, and to be perfectly honest, I am very proud of Quebec's creative artists and performers.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you for your answer. We are keenly looking forward to these forthcoming announcements. The entire sector is extremely worried.

What I'd like to know now is whether you are going to announce employment insurance reform in your next budget. It's been promised since 2015.

In the meantime, what have you got to say about the foresters who were unable to do their work last summer because of the many forest fires, and who were as a result unable to accumulate the required number of hours?

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

Thank you for your question.

Logging is one of Quebec's and Canada's major industries. We will always be there to support this industry, particularly for its workers.

I trust that you understand why I can't make any announcements today about the budget.

Before concluding, I would also like to thank you for wearing yellow and blue, as I am today. Thank you for your support for everything that we are doing together to help the courageous people of Ukraine.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

The Ukrainian people have our wholehearted support.

In the Quebec National Assembly, there is consensus on the right to withdrawal with full compensation for dental insurance programs and for the future prescription drug insurance program. In the Quebec government's most recent budget, it's in appendix G.

Are you going to acquiesce to the National Assembly's request?

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

My relations and conversations with Quebec's Finance Minister, Éric Girard, are very good. I hope that he will be in agreement with me. He is a highly effective counterpart with whom we speak frequently.

My colleague Mark Holland has been working on health care issues. We're going to continue to work with the province of Quebec.

For example, we found a solution for child care services. It was good for Quebec and good for Canada. I'm hopeful about coming up with a solution to these problems as well.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you very much.

Thank you, Mr. Chair.