Mr. Speaker, I am thankful for the opportunity today to give some of my thoughts on this budget.
I really believe this budget is a lot of bafflegab and bluster. I believe it is short on substance and that it saddles future generations of Canadians with massive debt. One of the biggest challenges is that we will be putting the burden on our young people, on our kids and our kids' kids, to pay off the massive debt that we will incur over the next few years.
The Prime Minister campaigned on the promise to run a modest $10-billion deficit, but it was not long after the election that he broke his promise. He pledged to return to a balanced budget, and that pledge has been completely abandoned. To top things off, our national debt is spiralling out of control.
Before I continue, I want to mention that I will be sharing my time with the member for Lethbridge, if I may.
This budget is simply nickel-and-diming the middle class. It is making the cost of living more expensive for middle-class Canadian families. It is becoming obvious to us in this place and to Canadians across the country that the Liberal economic plan is not working. Budget 2016 failed to create jobs and failed to grow our economy; budget 2017 is just more of the same.
The Financial Post reports that in 2016, the economy had one of its most difficult years, with a growth of merely 1.3%. It goes on to say that it does not get much better looking forward and that the federal government's own Department of Finance predicts economic growth will average just 1.6% out to 2030. Further, the report notes that growth expectations from private sector economists have consistently declined since the Liberal government came into power. Even more troubling is that the Liberal economic update forecasts have consistently decreased, and have now been downgraded to 1.6% in budget 2017.
Our party leader correctly noted that the government's own numbers show that the economy is growing no faster than before its spending binge began. She also correctly noted that Canadians are working fewer hours and that their wages are not keeping up with the cost of living.
The Prime Minister should not be surprised by all of this. He cannot expect different results by using the same old Liberal tax-and-spend methods.
As was the case with the 2016 budget, this year the Liberals have once again abandoned small businesses. Small businesses are the largest employers of Canadians across the country. Almost every business needs a tax break, but when it comes to spirits, wine, and beer, the Liberals have decided to increase taxes by 2%. This tax hike will have a very negative impact on wineries, craft breweries, and small distilleries in the riding of Niagara West, and consumers will once again have to pay more at the cash register because of more new Liberal taxes.
I have received numerous letters from stakeholders in the wine industry who are pleading with the Prime Minister and Minister of Finance to reconsider this ill-conceived tax hike. Wine is among the highest value-added agricultural products in Ontario, and many of our grape growers may face economic hardship in the face of this tax increase. Wine, as one of Ontario's signature industries, should be supported and promoted by our federal government, not selectively targeted.
The long-term impacts on wineries across Canada will be immense, as will they be on others in the value chain, including restaurant workers, bartenders, delivery truck drivers, and others. For the sake of the long-term survival of the Canadian wine industry, the Prime Minister and the Minister of Finance should pay attention and consider reversing this tax hike immediately.
The wine industry is not the only victim of Liberal overtaxing. Others will feel the Liberal pinch as well. With respect to public transit users, for example, roughly 1.8 million Canadians will see higher taxes and higher prices for bus passes because the Liberals have decided to get rid of the public transit tax credit. A Toronto Transit Commission analysis showed that the elimination of this credit will mean 2.5 million fewer people will ride the TTC in 2017. Uber and ride-sharing services will become more expensive because the Liberals have decided to slap a tax on them.
Others include donated medicines; child care; small business owners, including farmers, fishers, doctors, lawyers, and accountants; oil and gas companies; and the tourism industry.
These are all in addition to the Liberal tax hikes last year on gas and home heating and Canadians' savings accounts, the implementation of more payroll taxes for businesses, and the ending of tax breaks for children's soccer and piano lessons. It seems that no matter what the Liberals do, they always somehow end up raising taxes on average Canadians and plunging our country into more debt and deficit.
It also seems strange that the Liberals are calling budget 2017 their innovation budget. There is really nothing new or innovative in this budget. Many of the programs are recycled and repackaged. What is becoming clearer is that they have no plan, no commitment, and no ideas on how to create jobs and grow our economy.
However, here is the kicker. They are spending billions on buzzwords and catchphrases. Mr. Speaker, unless you are a venture capital catalyst or a supercluster, this budget is simply not for you.
Innovation thrives when businesses and entrepreneurs are free from excessive taxes, regulation, and interference, but this budget takes the opposite approach. It picks the winners and just does not really care about anyone else.
Here is what really worries me. The Prime Minister promised to run modest deficits for a couple of years. What this has turned into is borrowing $143 billion over six years. If that is a modest deficit, then I do not want to see or hear what he considers a large one.
What Canadians must keep in mind is that the national credit card that the Prime Minister keeps swiping works in a very similar way to their own credit cards—namely, the money needs to be paid back, and paid back with interest. Incredible amounts of money have already been borrowed. What this means is that not only this generation but generations to come will need to pay the principal and interest on the debt being racked up now. Canadians turning 18 years old today will not see a balanced budget until they are in their fifties. Essentially, our children and even our grandchildren will be on the hook for paying off debt that the Prime Minister is needlessly racking up now.
This is in addition to making all Canadians pay more taxes for virtually everything, and it explains only half the vicious cycle the Prime Minister has been inflicting upon us. What happens when the debt cannot be paid back? Will he raise taxes even more? Round and round we will go again.
With all this spending of billions of dollars on our national credit card, the Prime Minister could not seem to find a sufficient amount of money for our men and women in uniform. For the second year in a row, the budget contains very little for them. Budget 2017 makes major cuts to defence, despite demands from the U.S. that NATO members commit to spend at least 2% of their GDP.
The government is deferring $8.5 billion in equipment purchases, having already deferred $3.7 billion in the past budget. The Department of National Defence now faces a $12-billion shortfall. It certainly does not look like national defence is a priority for this Liberal government. In an era of so much Liberal spending, it is of great concern that the largest cuts are consistently at the expense of the Canadian Armed Forces, raising the question of whether the Liberals believe that Canada needs the ability to defend itself and our allies from clear threats such as Russia, North Korea, Iran, and ISIS.
Recent examples, including the Liberals' decision to pull our CF-18s out of the fight against ISIS, their preference for fourth-generation fighter jets, their lack of increased support for our Ukrainian allies, and their failure to advance important procurement projects, all suggest that the Prime Minister is of the view that other countries should be relied upon to do the heavy lifting.
With growing United States pressure for increased budgets, Canada's allies have committed to modernizing their military capabilities and spending 2% of their GDP on defence. Our Prime Minister has not followed suit, putting us in a very precarious position. Considering the clear global threats to our security, we need the appropriate investments in Canada's national defence and we need them now. The finance minister does not seem to agree, stating that the government believes the military is appropriately provisioned.
We are living in dangerous times, when our security as a nation should be regarded as a matter of the utmost importance. By not allocating the necessary funds to our armed forces, we are playing a dangerous game and putting our country at constant risk. lt is simple: the Liberals are asking Canada's military to do more with less. This cannot stand. On this side of the aisle, we will continue to fight for the resources that our Canadian Armed Forces deserve.
If the Liberals will not listen to us here in this place, then I hope they will listen to the hard-working Canadians that this budget will directly affect. According to a Nanos poll reported by The Globe and Mail, most Canadians are giving the Liberal government's second budget a thumbs down. What this poll found is that Canadians are expressing a strong desire for the Liberals to lay out a plan for eliminating the deficit after the budget, there is no mention of when the federal books will be balanced. It is no surprise that only 5% of Canadians had a positive view of the budget.
Nik Nanos himself said:
I think the fact that only one out of every 20 Canadians had an outright positive view of the federal budget should give the Liberals pause because it suggests that the budget, at least for a number of Canadians, was a disappointment.
When Canadians were asked if it is important to them that the federal government have a plan in place to eliminate the deficit, four in five Canadians agreed that a plan should be in place. The reality is that the Liberals have no plan.
We, as the official opposition and as Conservatives, are the voice of the taxpayers and will hold the Liberals to account. We will not and cannot stay silent while the Prime Minister nickel-and-dimes Canadians with no plan whatsoever to create jobs and grow our economy. Too much is at stake, and we hope he listens and understands that so far his ideas are not working.