Finance Committee on May 2nd, 2023

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

That's true.

[The Chair, Liberal, Peter Fonseca]

It's the subamendment to the amendment by MP Blaikie and then it was MP Morantz's subamendment to PS Beech's motion.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

Can I ask for a quick clarification, MP Beech?

Is there a time amount that the minister has suggested in that, which she will appear for?

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

The motion states that she'll be here at 12:00 p.m.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

That's fine.

[The Chair, Liberal, Peter Fonseca]

Do we have UC, members?

[Some hon. members]

Agreed.

[The Chair, Liberal, Peter Fonseca]

(Motion agreed to [See Minutes of Proceedings])

We have unanimous consent for that.

We are suspended until the minister arrives.

[The Chair, Liberal, Peter Fonseca]

Members, we're back.

The Deputy Prime Minister and Minister of Finance, the Hon. Chrystia Freeland, is with us, along with some officials.

Minister, I know that members are eager to hear what you have to say, so you're going to have an opportunity for some opening remarks, and then we will move to questions by members.

Minister, the floor is yours.

[Chrystia Freeland, Liberal, Deputy Prime Minister and Minister of Finance]

Thank you very much, Chair.

It's a pleasure to appear before you and the committee members to discuss the budget implementation bill.

I'd like to talk first about the state of Canada's economy. Last year, Canada posted the strongest growth of any G7 nation. In the first quarter of this year, Canada had stronger than expected economic growth. Some 900,000 more Canadians are working today than when the pandemic began, and at just 5%, the unemployment rate has remained near its record low for five straight months. We have recovered 129% of the jobs lost during the pandemic, compared with only 115% in the United States.

Inflation is now down to 4.4% after peaking at 8.1% last June. The Bank of Canada projects that inflation will drop to 3% this year and just 2.5% by the end of the year. Our deficit is projected to be lower than it was last year, down to just 1.4% of GDP. Our deficit and our debt‑to‑GDP ratio are the lowest in the G7 and lower than those of other large AAA‑rated economies, such as Australia and the Netherlands.

This strong economic foundation underpinned the budget I delivered in March. Bill C‑47 implements many of the key measures outlined in our budget, which I think the committee members could get behind.

I'd like to talk about why it's so important that we work together to pass this legislation as quickly as possible. In our budget, we're cracking down on house flipping by fully taxing assignment sales, because homes should be for Canadians to live in, not a speculative financial asset class.

To protect Canadians, we're also cracking down on predatory lending by lowering the criminal rate of interest from 47% to 35%, and we're imposing a cap on the cost of total borrowing for payday loans of no more than $14 per $100 borrowed.

We're protecting air passengers' rights by making airlines more accountable for delays, cancellations and lost baggage, and ensuring that they compensate Canadians fairly for delays that are within the airlines' control.

We're modernizing the oversight of Canada's financial sector to ensure that our financial institutions act with integrity and that they're protected from threats of foreign interference.

To help make the cost of education more affordable for students across Canada, we're increasing withdrawal limits for RESPs from $5,000 to $8,000 for full-time students, and from $2,500 to $4,000 for part-time students.

To support the skilled tradespeople who are building our clean economy and working to double the number of new homes that Canada will build by 2032, we're doubling the tradespeople's tool deduction from $500 to $1,000, which will help them invest in the tools they need to do their important jobs.

We're expanding the Canada workers benefit to reach 4.2 million of our lowest and often most essential workers, and introducing quarterly payments that will put more of their hard-earned money back in their pockets sooner.

We're supporting the implementation of the new Canadian dental care plan, which will cover up to nine million Canadians by 2025. It will mean that in Canada you will no longer be able to tell how much money someone makes, or how much money their parents make, by their smile.

These are just some of the essential measures in the budget implementation act that are delivering on our plan to support Canadians from coast to coast to coast. I'm confident that members of this committee do support, and will support, these measures.

I'm looking forward to discussing it with all of you today.

[The Chair, Liberal, Peter Fonseca]

Thank you, Minister Freeland, for those opening remarks.

We are going to move into the rounds of questions now. In the first round, each party will have up to six minutes to ask questions. We are starting with the Conservatives and MP Hallan, for six minutes, please.

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

Thank you, Chair.

I'll acknowledge that the minister is here after multiple requests that she's ignored and refused to show up for, even though the Governor of the Bank of Canada has come regularly at the committee's request.

Minister, you said, “What Canadians want right now is for inflation to come down and for interest rates to fall. And that is one of our primary goals in this year's budget: not to pour fuel on the fire of inflation. So, in our budget, we will exercise fiscal restraint.”

What we see, again, is that your government spending is causing inflation to go up, like it did again today. Your fall economic statement said that you would balance the budget in 2027-28, but after your $43 billion budget bonanza, you say you won't balance the budget.

Why did you mislead Canadians?

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

Mr. Chair and MP Hallan, the only people who are trying, I think unsuccessfully, because Canadians are smarter than that, to mislead Canadians are the Conservatives on this committee and in the House.

The reality—

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

What was the change? How come your budget didn't balance?

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

I'm sorry...?

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

That was a question.

[The Chair, Liberal, Peter Fonseca]

Member, MP Hallan, we don't want the crosstalk for many different reasons. First is just for the sake of decorum and respect here at this committee. The other is that the interpreters have often spoken to me and the clerk, etc., and said that they get affected by that crosstalk. We don't want their health and safety to be impacted.

Minister.

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

Thank you, Mr. Chair.

I'd like to address the two substantive points that were raised in the question. They are fiscal responsibility and inflation.

When it comes to fiscal responsibility, let me emphasize a few points. Canada has the lowest deficit in the G7. Canada's fiscal position has been judged by the people who count the most, our ratings agencies, as—

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

Respectfully, Minister, I want to know what changed between—

[The Chair, Liberal, Peter Fonseca]

MP Hallan, allow the minister to finish her—

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

I only have limited time.

[The Chair, Liberal, Peter Fonseca]

We've stopped your time, but allow the minister—

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

She's not answering.

[The Chair, Liberal, Peter Fonseca]

Again, there's the crosstalk. We don't want any crosstalk.

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

The floor is mine.