Mr. Speaker, I rise today to speak to Bill C-74, the budget implementation act.
The Prime Minister has introduced this omnibus budget bill that spends money we do not have on things we do not need and piles debt upon debt and taxes us to pay for it. The Liberal government continues to spend and spend while Canadian taxpayers foot the bill and Canadian businesses flee to the United States.
The government has increased spending by 20%, or $60 billion, in its first three years, and there is no evidence that it created any growth in the Canadian economy. Despite this record spending, Canada is headed for a slowdown. Private sector forecasts show growth of 2% in 2018 and 1.6% in 2019.
Budget 2016 promised that spending would raise the level of GDP by 0.5% in 2016-17 and by 1.0% in 2017-18. However, the Parliamentary Budget Officer has estimated that infrastructure spending actually contributed a tiny 0.1% to GDP growth in both years.
At a time when the government has to buy a pipeline no one wanted to sell and no one wanted to buy in order to cover its own failed energy policy; at a time when we cannot seem to get agreements with our largest trading partner on softwood lumber, steel, and aluminum on the North American Free Trade Agreement; at a time when investor confidence in Canada has hit rock bottom; at a time when our country has one trillion dollars of market debt, a debt upon which the Government of Canada pays interest—the Liberal government plans on installing a job-killing carbon tax. Nearly 200 pages of Bill C-74 are dedicated to this complicated and costly new carbon tax. If Canadians have not had enough already, this new tax will raise the cost of heat, groceries, and pretty much everything.
Finance officials have said that the Liberals' carbon tax will raise the price of gasoline by 11¢ per litre, or about $8 on an average fill-up. It will cost Canadians families an extra $264 in natural gas home heating per year. Oil heating costs will rise even more.
We know this carbon tax is going to cost Canadians much more and we know the Liberals know it, but they refuse to come clean, and that is the issue we have on this side of the House. They refuse to tell us exactly how much the carbon tax will cost the average Canadian family.
Mr. Trevor Tombe, at the University of Calgary, estimates $1,100 for a family per year. The Canadian Taxpayers Federation estimates that the carbon tax will cost as much as $2,500 per family per year.
Environment Canada has told the minister that a price on carbon would have to go as high as $100 per tonne in 2020 and $300 per tonne in 2050 to meet its 2030 GHG targets. Carbon taxes are not effective in reducing greenhouse gas emissions. According to the Conference Board and the Canadian Academy of Engineering, even if carbon taxes were to reach $200 per tonne by 2025, it would only result in a 1.5% reduction in greenhouse gas emissions.
After direct questioning by the member for Dauphin—Swan River—Neepawa, the environment minister at committee refused to give a number when asked. The government knows if and how much the carbon tax will reduce greenhouse gas emissions; however, it just will not make that number public. Perhaps the government has learned its lesson after so many failed promises in its 2015 platform: I am guessing it is better to say nothing than to continue to break promises. Unfortunately, we cannot run a government that way, and Canadians are demanding answers.
The government, through Natural Resources Canada, wants to spend $280,000 to try to find out why investor confidence in Canada is so low. Before Canadians from coast to coast to coast pick up the phone to call the minister in hopes of landing that $280,000 contract, the closing date was April 19.
It does not really take many people to figure out why Canadian competitiveness is so weak, why investor confidence is so low, and why Canadian businesses are fleeing south. Canadian competitiveness is weak because of rising costs as Canadian businesses face these increases. We are seeing new carbon taxes and increased CPP and EI premiums. Personal income taxes for entrepreneurs are now over 53% at the top marginal rate. Thousands of local businesses will no longer qualify for the small business tax rate or will see it reduced. Tough new rules will raise taxes on compensation paid in the family business.
According to Jack Mintz, Canadian businesses are facing a competitive tsunami that could wallop jobs and investment, as U.S. tax reform and the reduction in the corporate rate from 35% to 21% will make Canada less competitive and increase the appeal of moving to the United States.
Budget 2018 offered nothing to Canadian businesses. The U.K., the U.S, and France have all embarked on major tax reforms, simplifying the tax code and lowering overall tax rates. Canada is moving in the complete opposite direction, with more taxes and more regulation. Investor confidence has fallen by 5%, or $12.7 billion, since 2015.
During the same period, business investments in the United States increased by 9%, amounting to an additional $198 billion of investment spending. Foreign direct investment into Canada plummeted by 42% in 2016 and then a further 27% in 2017. The natural resources sector is being hit particularly hard, as regulation is discouraging investment. The pipeline shortage means that Canada's oil and gas companies receive lower prices for oil, approximately $24 less per barrel, because they are forced to ship to a part of the United States glutted with oil and gas. This is costing the Canadian economy approximately $50 million per day. In the last two years, $84 billion of investment in the energy sector has been cancelled.
Economist Germain Belzile, a senior researcher at the Montreal Economic Institute, stated:
People are giving up on Canada as a safe place to invest in natural resources.
It's seen as a very hostile environment now.
Doug Porter, chief economist and managing director of BMO Financial Group, stated:
I think Canada has a very weak competitive position. I think we're going to get crushed in the next recession....
The Canadian Association of Petroleum Producers, a leading industry association in the oil and gas sector, advises that the sector is seeing companies, including Canadian firms, looking at allocating more capital dollars in the U.S., while investment in Canada is decreasing.
RBC president and CEO Dave McKay, the head of one of Canada's largest banks, is urging the federal government to stem the flow of investment capital from this country to the United States because, he warns, it is already leaving in real time. Canadian businesses are fleeing south because the entrepreneurial climate in Canada has soured.
Canadians have lost faith in their government. In his first three years in power, the Prime Minister added $60 billion to the national debt. Last year, Canada's national debt reached an all-time high of $670 billion, or $47,612 per Canadian family, and the budget will not return to balance until 2045, when my son will be 33 years of age and quite possibly raising my grandchildren.
The finance minister's attack on small business last fall demonstrated just how out of touch the government is with what is going on in the economy, although the finance minister did climb down significantly on taxing passive investment income. Instead of the proposed 73% tax rate, the government will gradually withdraw eligibility for the small business tax rate for those companies with investment income greater than $50,000.
I could go on and on and I am sure members would enjoy that a lot, but I understand my time is running out, so I will wrap it up before I am cut off. I look forward to questions and to speaking more about how this Liberal budget is failing Canadian families.