Evidence of meeting #79 for Government Operations and Estimates in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was services.
A recording is available from Parliament.
Bloc
Julie Vignola Bloc Beauport—Limoilou, QC
Does this have anything to do with the colour of the government?
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
Government policies may or may not have an impact on GDP growth, depending on the policies implemented. For example, a very protectionist government policy could have the effect of reducing GDP. That said, unless the policies are particularly different, a government's impact, while significant, is not fundamental. In the long term, it's possible, but it's not the most important determinant. GDP is.
Conservative
NDP
Gord Johns NDP Courtenay—Alberni, BC
Thank you.
I'm going to go back to the carbon tax.
I've heard from my Conservative colleague, who said that removing the carbon tax would mean a 0.4% difference in inflation. Right now it's 0.15%, so it's 15¢ on a $100 bag of groceries. I outlined that corporate greed is about $3.90, and the profits from oil and gas are much higher than the carbon tax.
Can you help my Conservative colleagues understand, if they remove the carbon tax, what that would look like in terms of the overall cost to the Canadian economy if we had a border carbon adjustment or if everybody shouldered the cost of the carbon tax? I understand that eight in 10 Canadian families get it back. For the two in 10 who don't, we know those are who they are actually fighting for.
Perhaps you can explain it to them so that they understand it.
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
You're asking a difficult question of me.
If we were to take the numbers you're quoting and if we were to take that carbon tax away, it would result in a 0.15% reduction in inflation. That would mean inflation would go from 3.8% to 3.65%. That's the impact it would have, using your numbers versus 0.4%, which would mean inflation would go from 3.8% to 3.4%. That would be the impact, again using the numbers that you quoted.
Conservative
The Chair Conservative Kelly McCauley
I'm afraid that's your time.
Mr. Giroux, we are going to allow you to leave relatively unscathed.
Before you run, Mr. Giroux, I'm going to exercise the chair's prerogative and ask a couple of quick questions.
Do you agree that OGGO is the only committee that matters, and in the future will you place us ahead of INDU when there's an invitation?
Parliamentary Budget Officer, Office of the Parliamentary Budget Officer
I agree. It's also the best leadership.
Conservative
The Chair Conservative Kelly McCauley
Mr. Giroux, thanks very much. As always, it is a pleasure.
Colleagues, we're suspended for a moment and we're resuming in camera.
[Proceedings continue in camera]