Madam Speaker, before I address directly the motion before us today, I will first relay a story.
Back in 2017, the Prime Minister had an idea. His idea was to use an omnibus budget bill to create a new excise tax escalator on alcohol sold in Canada. This meant that the tax on most wine, beer and spirits sold in Canada would, by default, be increased every year without having to come to the House for debate. As opposition, we opposed this.
I warned the Liberal government what would happen if Canadian wines produced with 100% Canadian-grown grapes received an excise exemption. According to Wine Growers Canada, this excise exemption “resulted in more than 400 new wineries and 40 million litres of new wine sales....The annual economic impact of this growth is $4.4 billion annually.”
As I warned the Liberal government, the problem with the excise tax escalator was that it would make wine produced elsewhere but sold in Canada more expensive against Canadian wines that used 100% Canadian-grown grapes and that there would be a trade challenge on this. To make a long story short, there was. The same Liberal government capitulated and agreed to remove the excise exemption previously enjoyed by Canadian grape growers. In turn, the Liberal government promised a plan to offset the economic damage it created in this industry, but here we are in 2021 and there is still no plan.
I do not share this story today to say “I told you so”. I share this story with everyone as a reminder that when governments do not think ahead of their actions, they can make mistakes with serious consequences. Now more than ever, we need to be vigilant and plan; we need to plan for our future today.
Canada has fallen massively behind other countries in how we have dealt with this pandemic. We were slow to close the borders, we were behind on things like PPE and rapid tests and now we are behind on vaccines. We have spent the most for a country of our size, but we all know we have not gotten the results we desperately need. I do not say that as a finger-pointing exercise. No prime minister would want to willingly be in this situation. COVID-19 is certainly not his fault, but, as the highest office in the country with the most resources to do something, he is responsible.
How has the Prime Minister responded? Indeed, as many released documents under production orders are illustrating, the Prime Minister's Office has often tried to manipulate, hide, deceive or distract from these ongoing failures. Now, here we are. We as parliamentarians must do our jobs to do everything we can do to help with this recovery. If members are in doubt of that, I will share a few thoughts and observations that, if some members have not been thinking about, we need to start thinking about collectively.
Let us will start with employment insurance. We know that with the phase-out of the CERB, many have transitioned to EI. People who would not normally be eligible are now receiving record amounts from EI. The challenge is that EI, by law, is required to be a sustainable program. While the Liberal government refuses to disclose the current status of the EI account, we know that the parliamentary budget officer has forecast that the EI operating account is on track for a cumulative deficit of $52 billion by the end of 2024, and that is just an estimate. For every day of delay that we cannot deliver a plan to get our own economy back on track, the EI expenses will continue to exceed revenue.
This is not partisan politics. That is not some isolated situation. This is occurring in every region of our country today. Again, EI must be sustainable. The EI account will not balance itself; it will require a serious plan. If employers are not hiring or are continuing to bleed staff, that will result in more weight on our EI system. That means higher EI premiums to make up the shortfall on those employers and fewer and fewer employees, yet the Prime Minister and his ministers continue to ignore this reality. I believe we all know, collectively, that Canada ignores problems like this at our peril. That is just one example of a need for an economic recovery plan.
I will give another from my riding.
The Okanagan, like other regions of Canada, relies heavily on tourism. We now have situations where American citizens who have been fully inoculated, 200 million-plus more every day, are calling to make reservations for upcoming summer and winter vacations. If we do not start signalling by what science-based metrics we will abide by as well as who and under what conditions these tourists can come, they simply will go to other places and spend their dollars somewhere else, not here in Canada, where our small-scale accommodation providers and those small businesses that have been absolutely decimated by this pandemic are in a situation where many are living off credit. They are having tens of thousands of dollars of bookings being thrown at them and they have no idea what to do. Why? Because the Prime Minister has been totally silent in announcing any kind of recovery plan.
While a lot of tourism is road traffic, let us not forget that many travel to my home province of B.C. by airplane. For those in the aviation sector, it has been just devastating. Here we are, one year into the pandemic and there is no plan, not even an assistance package for this critical industry. What will be the long-term impacts for Canadians be if our aviation sector cannot survive? What of our tourism sector?
Here is something I thought I would never see in my region. Kelowna International Airport is a major artery for economic development of the Okanagan, yet due to its ownership under the City of Kelowna, it has not received a dime in support from the federal government's wage subsidy.
In 2019, YLW was booming and had large and ambitious expansion plans. Major parts of that plan have had to be put on hold because of the pandemic. Without any strong COVID recovery plan, like the Leader of the Opposition has called for, the failure of the Prime Minister to act means less opportunity for jobs and investments both at the airport and around our region that rely on YLW.
The director of Kelowna International Airport, Sam Samaddar, has said that without immediate changes, our country could see Canadians driving to the U.S. to catch cheaper flights from American airports when things return to normal in the future, because of Ottawa's low level of assistance now.
In the Kelowna Daily Courier last week, Sam Samaddar said:
The Canadian government’s investment in the aviation industry, it’s been appalling to be honest with you....And here we are a year into the pandemic and I can’t believe we still do not have automatic contact tracing.
We are behind on contact tracing and on stockpiling PPE, rapid testing and vaccines. Speaking of vaccines, the Prime Minister has suggested that everyone who wants to be vaccinated will be so by the end of September. The problem is that losing another summer for tourism is a price that many can no longer afford.
I am certain I am not alone in seeing a growing number of “For lease” signs going up in many downtowns throughout my riding. Many of these small businesses that are closing have been around for many years. Most that I have heard from are either closing because they can no longer afford to keep the doors open or, in some cases, they do not see any clarity, they do not see any point and would rather cut their losses now.
Again, there is no plan from the Prime Minister. What we have heard is things like “build back better”. What does that even mean? People cannot build anything without a budget. The Prime Minister has refused to table a budget for over two years. To build back better without a plan, nothing can be built. Essentially “build back better” is just another series of buzzwords.
When we look around our communities, nothing is being built by the government right now. A revised mandate letter was sent out earlier this year, in which the Prime Minister instructed his finance minister not to commit to any new permanent spending. Only months later, the same Prime Minister promised to permanently increase transit spending, most of it five years down the road. That is the problem.
The Prime Minister literally makes it up day by day. First, we are not increasing permanent spending, until we are. Most of it is five years down the road. We have no budget to show how that promise will actually get paid for. What could go wrong here? I think we all know that is not good governance.
In the absence of a plan, that is what we get: made-up promises as we go along. Five years from today, that massive EI deficit in the billions is going to need to somehow be paid for. How? By who? Will workers premiums be further increased? If so, that leaves less net take-home pay at a time when inflation may be undermining our dollar. Is that what building back better looks like? If so, many would dispute that this is a better outcome.
One thing we do know is that these problems will not solve themselves. We all know that this current level of spending is not sustainable. I expect that when the Prime Minister first told his finance minister not to create any new permanent spending announcements, he did so with good reason. We also know that an election is coming at some point on the horizon and that the Prime Minister will only announce more spending. It is what he does.
The challenge is that we need a plan today, one that is scrutinized in this minority Parliament, one that is data-driven, that gives people hope and certainty. We need a plan that will help serve as our road map for how we deal with other countries that are ahead of us in dealing with the pandemic. We critically need to help small business. Let us not forget—