Finance Committee on May 2nd, 2022

[Julie Dzerowicz, Liberal, Davenport, ON]

Thank you so much, Mr. Chair.

Thank you, Deputy Prime Minister Freeland, for being with us today and answering our questions.

We have been spending a lot of time talking about the spend within federal budget 2022, but I believe that the vast majority of the budget, at least 60% of the budget, is allocated towards growing the economy in Canada.

Can you speak to what you think the key elements are for economic growth and why you think the focus on economic growth is so important?

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

Thank you very much, Ms. Dzerowicz. I am glad you are posing this question, because I know that this is an area you have worked on very, very hard, including in the development of the measures in the budget.

We were very clear, in putting together this budget and in presenting it to Canadians, that one thing Canada needs right now is a growth strategy.

I pointed out in my initial remarks that the IMF sees Canada as having the strongest growth in the G7 this year and next year. However, we also need to be candid with each other, as Canadians, that our country, medium and long term, needs to move to a higher gear when it comes to growth, productivity and investment.

Therefore, this budget proposes some key pillars that will help us do that. One is the Canada growth fund that we discussed earlier with Mr. Blaikie. This will crowd in private investment to the green transition. A second one is a new innovation and investment agency to help tackle this very Canadian challenge of translating our high degree of education, of excellent world-leading research, into commercialization and productivity for our businesses.

Then, finally, a really important element is the $3.8 billion that we're investing in our critical minerals strategy, which is more important now than ever with Russia's war in Ukraine. The world needs critical minerals. Canada is an important supplier. This is important in the green transition, and we're investing to really drive that sector.

[Julie Dzerowicz, Liberal, Davenport, ON]

Thank you so much, and I know that also our investment in our national child care program is going to help with economic growth moving forward.

The next thing I want to ask about is around inflation. If I go to the average Davenport resident, they would say to me that what they're worried about every single day is just rising costs, and also just the unpredictability about what's going to be happening as we move forward.

Given that it's top of mind not only for Davenport residents but also all Canadians, how do you think that key elements in budget 2022 are going to help Canadians with the current rising costs of many key staple items in Canada?

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

I will say that economic growth and having a job are key elements to affordability for every Canadian family, and the historically low unemployment rate is good news for us all.

There are also a number of specific measures in the budget to help with affordability: dental care; doubling the support provided through the first-time homebuyers' tax credit; the new multi-generational home renovation tax credit; the $500 payment, one-off, for people facing particular housing affordability challenges; and, of course, you mentioned early learning and child care.

We now have deals with every province and territory in Canada. Fees are going to go down by 50% this year. You and I have campaigned together in your riding, and we talked to people standing outside on their lawns with their children and talking about how child care is like a second mortgage. For those young families, this is a real answer to the question of affordability.

[Julie Dzerowicz, Liberal, Davenport, ON]

Thank you, and—

[The Chair, Liberal, Peter Fonseca]

Minister, thank you.

MP Dzerowicz, that is the time, and we are all looking to go to a vote.

We do want to thank the minister—

[Adam Chambers, Conservative, Simcoe North, ON]

On a point of order, Mr. Chair, it's always nice to be joined by ministers at committees, but I just want to put out there for my colleagues that there is the inflation study before this committee, which had the minister appearing for three hours. I would welcome her back for that, but if we are hoping to get quick passage of this bill, I think we need to acknowledge that we do have this outstanding request. I would look forward to that. I would hate to see.... I want to see continued accountability with our executive branch.

[The Chair, Liberal, Peter Fonseca]

Thank you, MP Chambers.

We want to thank the minister.

We're sorry that there was a fog in Toronto and you were not able to make it in here in person, but luckily we are doing things virtually, and we've had you for this hour answering many questions.

Thank you very much, Minister, for coming before our committee, and thank you to all of your officials for the many questions they have answered. We really appreciate that at our finance committee.

Thank you, and have a great day.

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

I would briefly like to thank all the members of the committee as well as the officials from the Department of Finance. I want to thank them for their work and their questions. Lastly, thanks to the members of the committee for conducting this study.

[The Chair, Liberal, Peter Fonseca]

Thank you very much.

The meeting is adjourned.