Debates of Oct. 5th, 2020

Taxation

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Madam Speaker, Canadian billionaires hold nearly four and a half thousand times the wealth of the average Canadian family. By 10 a.m. on January 2 this year, top CEOs in Canada made as much money as the average Canadian worker would earn in the entire year. Unlike those average workers who pay their taxes and contribute to all the infrastructure and services we depend on, Canada's wealthiest citizens are not paying their fair share.

What is wrong with this picture? Why are some people hoarding obscene amounts of wealth, while so many are struggling to make ends meet in the country?

During the COVID-19 lockdown this past spring, Canadians across the country stood on their balconies and doorsteps and banged pots and pans to show their appreciation for front-line workers. Health care workers and first responders worked through the lockdown, separated from their families and risking their own health and safety for our communities.

We also banged pots and pans for the essential service workers who were keeping grocery stores open and shelves stocked during a difficult and frightening time. Most of these service workers earn a modest income at best and many earn minimum wage. They had to travel to and from work during the pandemic, often on public transit, and then serve the public all day long, with the stress of the pandemic hanging over their heads. After seniors in long-term care facilities, low-wage workers, who live in crowded housing and rely on public transit to get to their service jobs, were most affected by COVID-19.

While these essential workers in our service economy continued to work and while millions of Canadians lost their jobs and felt the economic stress of the pandemic, the rich got much richer. According to Forbes' annual billionaires list, Canada's 20 richest billionaires increased their wealth by $37 billion during the first six months of this pandemic. Let us think about that. Twenty Canadian billionaires increased their wealth by $37 billion during the most economically catastrophic six months in Canadian history.

Two of those billionaires own Canada's largest grocery store chains. Galen Weston's fortune grew by $1.6 billion and Jim Pattison increased his wealth by $1.7 billion. During the pandemic, many low-wage workers, including workers in the grocery stores owned by Mr. Weston and Mr. Pattison, received a short-lived $2 an hour top-up as danger pay. When that $2 an hour wage increase was terminated by those grocery chains, the stock value of those companies shot up and Mr. Weston and Mr. Pattison reaped the benefits.

Tax dollars pay for the public infrastructure and services on which these billionaires rely. Their companies use our roads, bridges, water and sewer systems. They benefit from an educated workforce paid for by tax dollars. The public transit system that carries their workers to and from the job is built and subsidized by tax dollars. They benefit from our public health care system because they do not have to pay for private health insurance for their workers.

When successive Liberal and Conservative governments have cut taxes, it has predominantly benefited the ultra-wealthy. It is time to reverse that trend and introduce a wealth tax. Keep taxes reasonable for working people, but increase taxes on the ultra-wealthy and institute inheritance tax on the transfer of large fortunes. If we had greater income equality in the country, we could easily afford the social safety net that Canadians deserve: universal pharmacare, universal dental care, universal child care, free post-secondary tuition and a guaranteed livable income so we could eliminate poverty.

Canadians deserve better.

[Sean Fraser, Liberal, Parliamentary Secretary to the Minister of Finance and to the Minister of Middle Class Prosperity and Associate Minister of Finance]

Madam Speaker, I appreciate the opportunity to take part in this evening's debate. I thank my colleague from Nanaimo—Ladysmith for raising the question, which ultimately touches on the subject of fairness within the Canadian economy.

I will agree notionally, and I expect most members of the House of Commons would as well, that it should be a priority for the Government of Canada to support our nation's most vulnerable. If that means we have to ask the wealthiest members of our society to pay their fair share, then that should be a consequence we readily accept for the benefits that will accrue to our society by supporting our nation's most vulnerable.

I will note, in particular, in the recent Speech from the Throne on the subject of taxing extreme wealth, the government has committed to limiting the stock option deduction for some of the wealthiest members of Canadian society and has decided to move forward on the issue of avoidance of taxes by digital giants. However, this is not a party that we have arrived to recently. Members will recall, having been in the previous Parliament, that the very first thing our government did when we were elected to office in 2015 was to raise taxes on the wealthiest 1% of Canadian income earners so that we could provide an income tax cut to nine million middle-class families.

We also moved forward with a plan with respect to the Canada child benefit. We stopped sending child care cheques to millionaires and put more money into the pockets of nine out of 10 Canadian families. This is a theme that has been a golden thread throughout the various policies we have adopted over the past five years. However, the inequities that exist within the economy have been made more readily apparent by the ongoing pandemic. That is why we made the decision, at the onset of this public health emergency, that we would be there for Canadians.

The Canada emergency response benefit has supported nearly nine million vulnerable Canadians in their time of need. The Canada emergency wage subsidy has supported millions more in maintaining a connection to their employer so that they can keep their job on the back end of this pandemic. There are countless examples of policies that have used Canadian taxpayer dollars to support our nation's most vulnerable during a time of unprecedented uncertainty.

Going forward, we need to recognize that the best thing that we can do to support our economy and prevent the need for this extraordinary amount of revenue to support the programs on the back end is to launch a world-class public health response so that we can limit the cost of the coronavirus to our society. That is why we have made major investments in personal protective equipment for front-line staff. That is why we are investing in the research and development of vaccines. That is why we ordered 7.9 million rapid testing kits as soon as Health Canada approved them, and that is why we are continuing to support the provinces in the delivery and administration of health care during this pandemic.

We do not need to just double down on a public health strategy. We also need to be investing in measures that will prevent households and businesses from bearing the enormous costs of this pandemic. By moving forward with some of the policies that I mentioned, whether it is the CERB, the wage subsidy or the emergency business account, we are going to be able to make an investment up front that will prevent us from suffering the worst consequences of inaction, leading to millions of additional dollars that we do not need to spend if we make smart investments now.

On a forward-looking basis, there will come a time when we need to examine how we are going to finance many of the polices that we have put in place now or we plan to going forward. By targeting policies that will promote growth and support Canada's most vulnerable, we will be able to save the system billions of dollars and support Canada's most vulnerable. If it means we have to ask the wealthiest to pay a bit more, then so be it.

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Madam Speaker, as a society, we can no longer afford the growing inequality in Canada. Extreme wealth inequality has proven to have a corrosive effect on our society, as well as on democracy. Inequality harms our economy, damages health and well-being, decreases disposable income and entices middle-class individuals to incur debts they cannot pay. Extreme inequality also plays a factor in increased crime.

We need to crack down on wealthy tax cheats. We must stop the tax avoidance schemes that allow people and corporations to offshore their wealth and avoid paying taxes in Canada. We need an inheritance tax on massive fortunes, and we need a wealth tax. Northern European countries tax the wealthy and ensure their citizens are taken care of from cradle to grave. We should do the same in Canada. We can do better.

[Sean Fraser, Liberal, Central Nova, NS]

Madam Speaker, I agree entirely with the hon. member, insofar as his argument suggests that wealth inequality is a priority the government must tackle and that we should continue to focus our efforts on supporting the vulnerable. Throughout this pandemic, it has become apparent that the inequalities that have long plagued Canada's economy continue to exist and need serious investment by the government. That is why, when we saw the emergency rear its head and create costs for society, we decided the government was in a better position to bear those costs than households and businesses. Vulnerable Canadians can rest assured we will be there in their time of need to reduce income inequality and support them with their most basic needs in our communities. If that requires us to ask the wealthy to contribute a bit more, we will not be afraid to make that demand.

Health

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Madam Speaker, I am pleased to have this opportunity to follow up on a question that I asked last week of the Minister of Transport concerning Transport Canada's rescission of the order that allowed BC Ferries to keep passengers on the lower car decks. I want to start by saying it is not debatable that minimizing public contact is the best way of preventing the unnecessary spread of COVID-19. This is an accepted fact among public health officials and indeed our own federal government.

I want to also recognize the leadership that has been shown by the B.C. NDP government, Premier John Horgan, Health Minister Adrian Dix and of course Dr. Bonnie Henry, the chief medical officer for the Province of B.C. They have been instrumental in shepherding B.C. through the crisis. What we are now seeing, however, is an expected uptick of cases as that second wave starts to hit our province. That is why the recent decision by Transport Canada does not seem to make any sense.

Last Thursday, the minister stated he had legitimate concerns over marine safety. I agree: There is always the potential for fire when one is on a large ferry. We have seen ships sink in the past. These are legitimate concerns. However, if we look at the safety record of BC Ferries over the last number of years, there have been no recorded incidents of fires, and there was only one major incident reported. I think we can recognize that BC Ferries has an excellent safety record. A large part of that is due to the amazing crew, who form part of the BC Ferry and Marine Workers' Union, so I really want to thank them for their efforts in keeping passengers safe and for the professionalism with which they do their jobs each and every day.

What is important to highlight here, in this adjournment proceedings debate, is not only the track record of BC Ferries and the professionalism of its crew in keeping passengers safe, but contrasting that with the expected second wave that is about to hit our province and the knowledge that maintaining physical distancing is important in stopping the spread of COVID-19.

I am a proud Vancouver Islander. Everyone else who lives on Vancouver Island and in the Gulf Islands understands how important and vital BC Ferries is as a transportation link. It is an accepted fact that, if one of the larger ferries is at full capacity, it is impossible to maintain the kind of physical distancing required to stop the spread of COVID-19 on the passenger decks. When Transport Canada allowed people to stay on the lower car decks, it was an important measure that in large part helped stop the spread of COVID-19, especially on our ferries. I do not think there is any way the Minister of Transport can tell passengers who have used BC Ferries that this kind of physical distancing can be maintained when their own government accepts the science behind physical distancing, and that we want to keep the minimum number of people from going above deck.

All I ask of the Parliamentary Secretary to the Minister of Transport is that I hope he reconsiders the decision, in light of the expected second wave, and that Transport Canada saw that this policy was good enough for the previous number of months. To have it rescind that order, right on the doorstep of an expected second wave, is a real head-scratcher. I implore him to listen to the asks of the B.C. government, and that Transport Canada gives BC Ferries the freedom to do so again.

[Chris Bittle, Liberal, Parliamentary Secretary to the Minister of Transport]

Madam Speaker, I would like thank the hon. member for bringing forward this important issue, which I am sure he is hearing from his constituents.

I know he understands that passenger safety is one of Transport Canada's highest priorities. The minister is taking advice from the maritime experts at Transport Canada to provide the best safety for those who are sailing. It is not to question the safety record of BC Ferries. Transport Canada is aware of the marine safety risk and the protection of passengers and workers' safety on any mode of transportation is at the core of our mandate.

Staying on enclosed decks is very dangerous and banned both internationally and in Canada following high profile accidents. The effects of a fire, explosion or collision could be catastrophic. These decks are designed to contain smoke, heat and fire. In the event of an accident, passengers on this deck would be at great risk of serious injury or fatality. While these incidents may be rare, the consequences are severe.

In response to the unprecedented COVID-19 pandemic, in March, the Government of Canada temporarily relaxed enforcement of regulations requiring passengers to leave their vehicles on enclosed car decks. Since March, we have learned a lot about COVID-19 and how to protect ourselves. Operators have implemented practices recommended by public health officials, including physical distancing, enhanced cleaning and health practices, and requiring masks. By taking these precautions, it has been demonstrated that the risk of COVID-19 transmission can be mitigated on ferries.

Consequently, as of September 30, that is why ferry passengers no longer have the flexibility to remain in their vehicles on enclosed decks during the voyage. Although records from last summer show that less than 10% of ferry passengers took advantage of this temporary flexibility, Transport Canada recognizes the concerns raised by residents and officials in British Columbia. Throughout September, Transport Canada officials have worked very closely with BC Ferries and recently with British Columbia health officials to prepare reactivation of this safety prohibition.

Passengers are still allowed on open vehicle deck and with additional measures now in place, the designated passenger areas have sufficient space to accommodate these additional passengers while respecting public health guidelines.

Our government recognizes the vital link that BC Ferries plays. Through our collaborative work with BC Ferries and provincial officials, we are ensuring that even in the face of COVID-19 that link will remain secure.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Madam Speaker, I appreciate the parliamentary secretary's response, but I am trying to contrast that with the fact that Transport Canada saw fit to allow this exemption over the last six months. The dangers on board a ferry with fire and possible flooding were always there, but we are in a unique public health emergency and we would not be requesting this exemption unless we were facing something significant.

All the experts agree that the second wave of COVID-19 coming this fall could be worse than what we saw in March or April, yet we will not have the ability on BC Ferries to maintain that physical distancing. This is not only about the passengers; it is also about the people whose livelihoods depend on the ferries and have to be there every day.

I ask again for the parliamentary secretary to consider those safety measures and ask him to reconsider Transport Canada's decision so we can keep people safe.

[Chris Bittle, Liberal, St. Catharines, ON]

Madam Speaker, I would like to point out that BC Ferries and their crew do exceptional work and they are doing excellent work on safety related to COVID-19. To limit the spread of COVID, the government banned large cruise ships from Canadian waters, pleasure crafts in Arctic waters and took measures to temporarily relax enforcement of regulations requiring passengers to leave vehicles on the decks.

Now, like other countries in the world that depend on ferries, it is time to transition back to normal operations and accepted safety practices. Incorporating well-accepted physical distancing, cleaning and mask wearing practices into existing maritime requirements will ensure the safety of the Canadian public. That is the core of this decision to ensure the safety of passengers in the event of a catastrophic incident.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Alexandra Mendes]

The motion to adjourn the House is now deemed to have been adopted.

Accordingly the House stands adjourned until tomorrow at 10 a.m. pursuant to Standing Order 24(1).

(The House adjourned at 6:48 p.m.)