Finance Committee on May 2nd, 2023

[The Chair, Liberal, Peter Fonseca]

Thank you, Mr. Ste‑Marie.

We now go to our final questioner, MP Blaikie.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Thank you very much, Minister, for choosing to stay a little longer. I look forward to being able to plan for longer appearances in the future.

I have a few questions I'd like to ask.

One has to do with the excise tax.

One thing the budget implementation act does, as you know, is limit the increase in the excise tax to 2%. I think there were many critics of the notion, when it was first introduced, that increases in the excise tax would be tied automatically to inflation.

I'm wondering whether this year's exception has been cause for reflection on the part of the government, in terms of the idea of maintaining an automatic escalator going forward.

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

First of all, let me again commend you, Mr. Blaikie, for your peacemaking role. I say that with a smile because we're coming to the end, but, seriously, thanks a lot. I think Canadians sent us all here to work together and to be, for sure, clear about the areas where we disagree, but also, in those areas where we do agree, to actually advance the work of Canada.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Indeed.

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

On the excise tax, inflation is coming down. The Bank of Canada targets inflation between 1% and 3%. Inflation has been coming down from its peak of 8.1% to 4.4%, and the CPI, which the Bank of Canada looks at, has continued to come down. The bank is forecasting inflation will be 3% in the summer and below 3% by the end of the year.

I think that will make your question purely theoretical and not relevant to the steady low-inflation reality of Canada going forward, once we get past this extraordinary pandemic economy moment—and we are getting past it. That's very good news for Canadians.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Time will tell and—

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

I have great confidence in the Bank of Canada.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

I certainly hope those forecasts are right, but I think there will remain a philosophical question about the prudence of automatic escalators with respect to the excise tax.

I want to ask you this: There are some changes proposed for the air passenger bill of rights. This would be at least the second iteration, I think—certainly with respect to the government, although even more so with respect to bills presented by members of Parliament around air passenger rights. There has been a fair bit of criticism already of the proposed changes in this act. I know my colleague Taylor Bachrach has done some good work on this file. I think part of what's at issue is that some of the terminology in the proposed changes is vague and leaves a lot to government regulation, as opposed to legislation, in a context where folks felt the government's first shot at an air passenger bill of rights was inadequate.

I'm wondering about openness to considering changes to what's proposed in the act, specifically on the question of being a little more clear in the legislation itself regarding how this is meant to be implemented and what some of the criteria are that Canadians can expect to be laid out transparently, in terms of what their rights are.

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

Thank you for the question.

All of us, in addition to our work on issues at finance committee, are also constituency MPs. Even if we're not directly responsible for transport, we are constituency MPs. As constituency MPs, every single one of us, I am sure, has many constituents who have raised passenger issues. I think this is a truth universally acknowledged in Canada. It's absolutely right for us as MPs to be focused on this and to support the rights of Canadians who travel.

Canada is a very big country. You have to fly to do your job as an MP. I have to fly to visit my family in Alberta. I could drive, but it would take a very long time. We all have to do it. I think there is a meaningful role for Parliament and the government in protecting the rights of all of us as passengers. As you mentioned, we're working on it. I think that, in the BIA, we're making meaningful improvements. That's why I referred to those measures in my opening remarks. It's a reason to get on with it. The Prime Minister likes to say, “Better is always possible”. That's true too, and I'm always happy to continue the conversation.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Right on.

[The Chair, Liberal, Peter Fonseca]

Thank you.

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

I'm happy to continue, Mr. Chair.

[The Chair, Liberal, Peter Fonseca]

That's the time, but thank you, MP Blaikie. I should thank you for opening the door to the many extra questions.

I also thank you, Minister, for providing us with that extra time to answer many of the questions that are very important to all those Canadians watching. This impacts their lives daily, hopefully in a very positive way. We want to thank you for coming before committee, as well as all of your officials, and for informing us about the BIA.

Thank you very much.

Members, we are suspended at this time. We'll be back after question period and votes.

Thanks.

[The Chair, Liberal, Peter Fonseca]

I call the meeting back to order.

We're back and—

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

I have a point of order, Mr. Chair.

[The Chair, Liberal, Peter Fonseca]

There's a point of order.

Hey, listen, MP Lawrence—

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

I've got my socks on, and I'm on the government side here. We're getting ready. These chairs are getting refitted for us, but could we just suspend for a few minutes? I think we might have an end to the impasse here.

[The Chair, Liberal, Peter Fonseca]

I would be happy to suspend for that reason.

[The Chair, Liberal, Peter Fonseca]

We're back.

When we suspended last, I was about to go to PS Beech, because he was next on our list.

[Terry Beech, Liberal, Burnaby North—Seymour, BC]

Thank you, Mr. Chair, and thank you to all members who worked vigorously during the break and over question period. I would like to seek unanimous consent for the following motion.

I move "That the committee consider both the sub-amendment from Mr. Morantz and the amendment from Mr. Blaikie withdrawn."

And, "That the motion be amended by adding after clause (b)(ii), a new clause, which would read: iii. if the Committee has not completed the clause-by-clause consideration of the Bill by 4:30 p.m. on Monday May 29, 2023, all remaining amendments submitted to the Committee shall be deemed moved, the Chair shall put the question, forthwith and successively, without further debate on all remaining clauses and proposed amendments, as well as each and every question necessary to dispose of clause-by-clause consideration of the Bill, as well as all questions necessary to report the Bill to the House and to order the Chair to report the Bill to the House as soon as possible, and that clause (e), (f) and (g) be removed from the motion, and that the motion be adopted as amended on division, and assuming that we have unanimous consent for that, that the committee adjourn."

Just for everybody's awareness, this removes the letters that would be sent out to other committees.

[The Chair, Liberal, Peter Fonseca]

I heard a “no”.

[Adam Chambers, Conservative, Simcoe North, ON]

Mr. Chair, I believe there's a speaking list, right?

[The Chair, Liberal, Peter Fonseca]

There is.

[Adam Chambers, Conservative, Simcoe North, ON]

I may reconsider my position, but I believe there's a speaking list, correct?

[The Chair, Liberal, Peter Fonseca]

There is. I have PS Beech on the speaking list.