House of Commons Hansard #130 of the 44th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was inflation.

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The House resumed from November 17 consideration of the motion that Bill C-32, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 3, 2022 and certain provisions of the budget tabled in Parliament on April 7, 2022, be read the second time and referred to a committee, and of the amendment.

Fall Economic Statement Implementation Act, 2022Government Orders

10:05 a.m.

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Madam Speaker, it is a pleasure this morning to continue to put some thoughts on the record regarding the fall economic statement implementation act.

Seven years ago, the current government inherited a balanced budget and a robust economy, but instead of maintaining balance or even paying down some debt, let us consider that for a moment, perhaps to prepare for the unknown, such as a pandemic or an unexpected war, it immediately began to add more spending, took the government finances back into a deficit and again started to add to the debt.

Then came the COVID–19 pandemic, which required additional spending. We supported those early programs. However, of the half a trillion dollars, yes, $500 billion, of added debt by the current government, $200 billion was not pandemic-related.

Program spending by the current government is now 30% above prepandemic levels. We now have structural deficits presently embedded in our finances, and of course the more that the government spends, the more things cost.

When the current government came to power seven years ago, it promised transparency. Do members remember “sunny ways”? This is what its own Parliamentary Budget Officer had to say on the transparency of the fall economic statement:

In this year’s FES, the Government identified $14.2 billion in new measures without providing specific details on this spending....

This lack of transparency presents challenges for parliamentarians and the public in scrutinizing the Government’s spending plans, particularly given the magnitude of measures, $14.2 billion—the largest amount announced without specific details since the 2016 [FES].

On top of all the other spending already outlined, the $20 billion, the current government is now asking the House for a $14.2 billion blank cheque. Are these sunny ways? Hardly. We will not be supporting this.

In my remaining time, I want to spend some time on one issue that is not addressed in the fall economic statement.

Last week, I had a series of eight meetings with my own constituents. The primary issue I heard from them was the rising cost of living, particularly the costs of food, fuel and housing. Those are the main things I heard, and in particular, food. Last month, as we are all now aware, there were 1.5 million visits to food banks, that in the country of Canada, a country that is considered a breadbasket.

The FES missed an opportunity to address an issue that has the potential to lower food costs, namely the status of the implementation of a grocery code of conduct.

First, we have heard much in statements in the media today about two seemingly contradictory statements, record grocery retailer profits and the counter-argument from industry that retailer margins have not changed in percentage terms through the pandemic. Both statements can be true, as retail volumes have increased during the pandemic as consumers have shopped more retail versus the food service that supplies the restaurant trade and institutional trade.

Second, the carbon tax, along with other issues, that is applied to the delivery of farm inputs and outputs, and to transportation all up and down the food chain, has increased costs for suppliers. Retailers maintaining their margins in percentage terms are applying this margin to a higher cost of goods from suppliers and to higher volumes generated by the change in market from consumers.

However, there is an opportunity for us to accomplish many goals if we get it right. What do I mean by getting it right? We can increase profits for food manufacturers and processors because of fair trading practices, and we can reduce the administration costs in attempting to comply with the many “rules” applied by retailers in an updated code of conduct. We can reduce administration costs for retailers in all these programs that are allegedly used as profit centres, but most importantly we can reduce consumer food costs.

Right now, shelf listing fees, fines for short or late deliveries and a host of other administrative exercises are adding costs that eventually the consumer pays. The U.K., Ireland and Australia have all gone down this road of a grocery code of conduct. Retailers were afraid that imposing a code would lead to a reduction in the number of retailers with gross sales meeting the threshold for application of the code. The U.K., since fixing its original voluntary attempts, has seen more retailers. It started with 10 and now has 14 retailers meeting the threshold dollar value, so the code has not driven consolidation there.

In conclusion, an appropriately structured code results in lower consumer prices and fairer trading practices within the value chain. In addition, it allows 10,000 independent grocers, who are so crucial for rural parts of our country, to be treated on par with the big five that control 85% of the grocery retailer trade.

The fall economic statement missed an opportunity to advance this issue for Canadians. Instead, the statement adds more government spending, which would only lead to higher inflation over time and the hurting of our most vulnerable citizens. With that I will conclude, and I look forward to questions.

Fall Economic Statement Implementation Act, 2022Government Orders

10:05 a.m.

Liberal

Wayne Long Liberal Saint John—Rothesay, NB

Madam Speaker, only in an alternative reality would the Conservatives think that they are fiscal stewards. They ran nine straight deficits. They tried to balance the budget by throwing in the sale of stock and an EI rainy day fund in 2015. We all know, and Canadians know, that is not true.

In the fall economic statement, there are three things my constituents love: first, the doubling of the GST rebate for six months; second, the top-up for rent; and third, the waiving of interest on student loans. Which one of those programs will he actually tell his constituents he does not support?

Fall Economic Statement Implementation Act, 2022Government Orders

10:05 a.m.

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Madam Speaker, as the member knows, this side of the House did support the returning of tax to constituents.

However, when I opened my speech yesterday, I said that the fall economic statement presented an opportunity for the government to make hard decisions. It did not. Now consumers and Canadians have to make those hard decisions.

In the end, the more the government spends, the more things cost. It is as simple as that.

Fall Economic Statement Implementation Act, 2022Government Orders

10:10 a.m.

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Madam Speaker, I thank and congratulate my colleague for his speech.

In the fall economic statement, the Minister of Finance reneges on a commitment she made in last spring's budget, which was to limit credit card fees for merchants. In the spring budget, she told us that she would introduce legislation and the issue would be dealt with this fall. However, now it has turned into a commitment to talk to the credit card companies, and if they do not self-regulate, she will introduce legislation later to force them to act.

In my hon. colleague's opinion, is that enough?

Fall Economic Statement Implementation Act, 2022Government Orders

10:10 a.m.

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Madam Speaker, the member points to a series of behaviours that occur in so many other issues.

There is talk. There are promises. There are announcements. So often there is not follow-through. I can think of another announcement in the spring budget, the funding for the Great Lakes Fishery Commission, which is seemingly not being honoured. There is a whole host of things that are talked about where there is not the follow-through by the government for real results for Canadians, particularly now given the cost-of-living increases that Canadians are seeing and the 1.5 million trips to the food bank. The government is not taking the opportunities it has to lower real costs for Canadians.

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10:10 a.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Madam Speaker, one of the things that has really hit Canadians across this country is the high price of gas. It has gone up almost a dollar in my part of the country.

The Conservatives seem obsessed with stopping the increase in the carbon tax that comes into effect in April, which would amount to about two cents a litre. They are ignoring the fact that oil and gas companies have had immense windfall profits, billions of dollars, record profits this year because of the high price of world oil. The U.K. has instituted a 35% windfall tax on oil and gas companies. The CEO of Shell has asked the federal government here to tax them more.

I am wondering why the Conservatives are so silent on this way of really bringing help to Canadians.

Fall Economic Statement Implementation Act, 2022Government Orders

10:10 a.m.

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Madam Speaker, on the surface, that would seem like a plausible argument. What I did not hear was the books of our oil and gas companies being brought to the fore in the six years previous due to the policies of the Liberal government.

Record profits are not only being incurred in different parts of the country; that is how a market works.

Is there a role for the government to step in there? That is what the House is to decide.

Fall Economic Statement Implementation Act, 2022Government Orders

10:10 a.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Other countries are doing it.

Fall Economic Statement Implementation Act, 2022Government Orders

10:10 a.m.

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Some are; some are not.

Fall Economic Statement Implementation Act, 2022Government Orders

10:10 a.m.

Liberal

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Liberal Alexandra Mendes

This is not a discussion.

Fall Economic Statement Implementation Act, 2022Government Orders

10:10 a.m.

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Madam Speaker, the reality is that the government needs to look at the impact of all of its policies on consumers, who are facing 10%-plus food inflation and 6% to 7% on a monthly basis on all other costs of living. The impact of that on our most vulnerable is what concerns the members on this side of the House.

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10:10 a.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Madam Speaker, it is an honour, as always, to rise in this place, and especially so when it comes to important decisions around helping Canadians get through these times of inflationary pressure, with a housing crisis and a health care system in chaos. Today we are debating the implementation of items included in the fall economic statement, which the Minister of Finance produced a couple of weeks ago.

The NDP is always focused on helping Canadians. That is why we were happy to see NDP initiatives that are clearly designed to do just that, help Canadians who need the support the most, included in that fall economic statement. There are initiatives like providing dental care for kids who do not have access to a dental plan now, like doubling the GST rebate for low-income Canadians to help them deal with the rising costs of food and gas, and like providing a $500 boost for low-income renters so they can afford to keep a roof over their heads. I would like to point out that the dental care provisions in the fall statement are not in Bill C-32, which we are discussing today, but were in Bill C-31, which received royal assent yesterday, so that was a great day for Canadians.

I am also happy to find a couple of paragraphs in the statement about credit card transaction fees, an issue that the NDP has been raising for decades. Jack Layton brought this up time and again. Canadian small business owners pay some of the highest credit card transaction fees in the world, and in this world of online shopping, the fees make it even more difficult for them to compete for Canadians' shopping dollars.

As the NDP critic for small business, I have talked with executives from Visa, Mastercard, Moneris and other companies involved in these transactions. I know it is a complex issue and that these fees vary with the business volume and the credit card type, but the fact remains that small business owners pay the highest rates, and these are the highest rates in the world. These are the business owners who can least afford those high fees. Now consumers are concerned because business owners have been given the okay to pass these fees on to consumers.

I was happy to see a pledge in the fall economic statement that the government will move forward on regulating credit card transaction fees if negotiations with the industry do not bear fruit. The NDP will be watching this issue with great interest because we want to make sure this actually happens. We want to make sure that real, concrete action is taken to ease the pressure on Canadian businesses and consumers.

I want to spend the rest of my time discussing some items that were not included in the fall economic statement and therefore are not in Bill C-32. They are items that I was hoping would be there as they would have helped Canadians this winter before we get another update in the spring budget.

There was something in the fall economic statement about eliminating the interest on federal student loans, which is something again that the NDP has been calling for. However, there was nothing for one of the most blatant aspects of student underfunding in Canada. That is the scholarships given to graduate students who are working full time on their research. These federal scholarship amounts provided by the three funding councils have remained unchanged since 2003. That is almost 20 years ago, when housing costs were a fraction of what they are now. Master's students now work full time on their research for the princely annual salary of $17,500. Ph.D. students work full time for $21,000. Regular Canadians would have a very difficult time surviving on those wages, but these students have to pay thousands of dollars in tuition on top of that as well. This is below minimum wage. We are forcing our best and brightest to live in poverty.

The House of Commons Standing Committee on Science and Research recommended in a recent report that the government increase these scholarship levels to rectify the situation. I also sponsored an e-petition, e-4098, organized by scientists across the country and signed by thousands of Canadians, that asked for a 48% increase in the value of those scholarships to match inflation over the past 20 years. The petition also asked that the number of scholarships be increased by 50% to match the demand for graduate students across the country.

Once students get their Ph.D.s, they must compete to get post-doctoral fellowships. It is an essential part of the career track of young scientists. Last year, 840 master's students received scholarships, and 750 received Ph.D. scholarships, but only 150 post-doctoral fellowships were provided. The petition mentioned above asked that the number of post-doctoral fellowships be doubled so that we can keep these students in Canada.

We are forcing young researchers to leave the country to continue their education. These are students we have educated here in Canada since they were in kindergarten. The numbers tell the story: 38% of graduates leave Canada to do their postgraduate work. They go to the United States, Germany, the United Kingdom and Australia. They go to a host of other countries that know the future of their economies relies on innovation and well-educated workers.

The negative impact of this neglect of young researchers on the Canadian economy is incalculable, but even the lost cost of that training is estimated to be about $640 million every year. I was disappointed that this issue was not dealt with in the fall economic statement, but I can assure the House that I will keep up the pressure on the government to ensure that it is fixed in next year's budget.

Another issue that was not dealt with in the statement was the automatically escalating alcohol excise tax. This tax will increase by over 6% in the coming months because of the high inflation rate. Distilleries, breweries and wineries, which are already facing the rising costs of packaging and production, will have to swallow that increase in their costs to consumers. These are costs that are not faced by their foreign competition.

My riding makes the best wine in the country. My hometown is the epicentre of craft brewing in Canada, and there are more craft distilleries in my riding every year. However, these small businesses, which are an important and growing part of the economy in my riding, now face this increase of costs that was never part of their business plans.

I have talked to representatives from these distilleries, breweries and wineries, and they have practical solutions for this problem. They have no objection to paying the excise tax, but they want to make sure it is fair compared to what their international competitors pay.

The United States has a system whereby smaller producers pay a smaller rate of tax for distillers and breweries. Other wine-producing countries support their industries in ways that are trade legal. Canada came up with a similar support for our wine industry, but it is set to expire next year after only 18 months. This program needs to be extended to 2030, at least, to make sure our industry, especially the smaller producers, can continue to thrive.

Most Canadians are struggling to get by these days, but wealthy Canadians and many big corporations are making record amounts of money. Oil and gas companies are making record profits based on the windfall of world oil prices caused by international events. Big grocery stores are making record profits, even as many Canadians are forced to cut back on their food purchases.

The Liberal government could have instituted a windfall tax on these excess profits, which could have generated billions of dollars in revenue to really support the Canadians who need it most. Even the Conservative government in the United Kingdom is taxing these windfall profits. In fact, it just raised that windfall tax from 25% to 35% yesterday. The CEO of Shell Canada literally told the federal government that their company should be taxed more.

Why is the CEO of Shell more progressive than the Liberal government, to say nothing of the Conservatives?

The fall economic statement included a modest increase in the tax rate for banks and other financial institutions, but totally ignored the big corporations that made the biggest profits in this difficult time for Canadians. I hope that, by the time the spring budget rolls around, the Liberal government will have found the courage to bring in windfall taxes to make sure that companies that are making record profits on the backs of Canadians pay their fair share.

In conclusion, I will be voting in favour of this bill. It brings several supports to Canadians that will truly help those who need it most, and it takes some hesitant steps toward a more sustainable future.

Fall Economic Statement Implementation Act, 2022Government Orders

10:20 a.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, the member recognized some valid points that the government is seriously considering, and some issues we can address. I want to also highlight and get the member's perspective on a couple of progressive measures that we have seen.

Within this legislation, we now provide support through getting rid of the interest on student loans. Prior to that, we had the children's dental program, where we are providing dental supports for children under the age of 12. Both issues are very much on the progressive side. They are going to have a wonderful impact in communities throughout the country.

Could he provide his thoughts on the importance of progressive policies, such as the two I cited?

Fall Economic Statement Implementation Act, 2022Government Orders

10:20 a.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Madam Speaker, if the member had listened to my speech, he would have heard that I mentioned both of those items. They are things that we support as the NDP, because they were literally our ideas, especially the dental care proposal that the Liberals voted against a year ago. However, we were very happy to see that being carried forward. We look forward to next year when it will be expanded to include seniors and people with disabilities, and in the third year to all Canadians who need dental care who do not have that coverage now.

I am very much in favour of getting rid of the interest on student loans. It is something we have been calling on for a long time, because students are our future. That is why I care so much about the graduate student situation, where we are forcing our best and brightest to live in poverty. We should fix that right now.

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10:25 a.m.

Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Madam Speaker, I appreciate hearing from my fellow Okanagan member of Parliament. It is always good that we can talk about issues that we agree on. I really do hope he will support any future legislation that the Conservatives would bring to eliminate the excise tax on our small and medium-sized wineries, distillers and breweries.

The member mentioned student loans and the charging of interest. The government actually increased the interest rate this year and it is now only pledging to go to zero. The pledges of the government seem to go back and forth, most importantly, on credit card fees. I agree that credit card interchange fees are high in Canada, but the government has promised to change that not only in this economic statement, but also in the previous budget that was tabled in the spring and in the last budget.

Why do NDP members continue to allow the government to have an infinite amount of time and options, and not use their supply agreement with the government to force it on these issues?

Fall Economic Statement Implementation Act, 2022Government Orders

10:25 a.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Madam Speaker, I thank the member for Central Okanagan—Similkameen—Nicola for those comments, and I agree with him right up to the very end of them.

I do not know if the member knows how supply agreements work, but we do not get everything we ask for from the government when we enter into those agreements. The Liberals agreed to bring in dental care, and that is something that will change the lives of millions of Canadians. I know that the Conservatives are against providing dental care for poor kids across this country, but the NDP is proud to bring that forward.

However, we are very suspicious of the government when it says that, yes, it is going to fix the credit card interchange fees. As the member mentioned, the government has not done it before, and this is all about talking to industry. Therefore, we are going to be watching those pieces very carefully.

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10:25 a.m.

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Madam Speaker, I thank my colleague for his speech.

In his speech and during questions and comments, the student loan measure was mentioned. The Bloc Québécois supports this measure because we see that it will help students in the rest of Canada.

However, I would like to remind my colleague that Quebec is not part of that program because it already has its own loans and bursaries program that works well. An agreement with Ottawa gives Quebec the right to automatically withdraw with full compensation, which we are pleased about.

With regard to the dental insurance set out in Bill C-31, however, it is important to note that Quebec already has its own dental insurance program for children aged 10 and under. We thought that the programs would be harmonized with, for example, funding to extend coverage to children up to the age of 12, especially since Quebec's program is a real program that works well.

However, there is absolutely nothing about that or about a right to withdraw with compensation. To make matters worse, the government has imposed a super gag order to prevent the bill from being examined in committee. That means no amendments can be proposed.

What does my colleague think about that?

Fall Economic Statement Implementation Act, 2022Government Orders

10:25 a.m.

NDP

Richard Cannings NDP South Okanagan—West Kootenay, BC

Madam Speaker, as for the dental care provisions that received royal assent yesterday, this is a temporary interim measure. Since the government did not act quickly enough, we could not bring in the real dental care program that we would have liked to see. People in Quebec can apply for that funding if their children are not eligible for the funding under the provincial program, and we have heard a lot—

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10:25 a.m.

Liberal

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Liberal Alexandra Mendes

Resuming debate, the hon. Parliamentary Secretary to the Minister of International Trade, Export Promotion, Small Business and Economic Development.

Fall Economic Statement Implementation Act, 2022Government Orders

10:25 a.m.

Parkdale—High Park Ontario

Liberal

Arif Virani LiberalParliamentary Secretary to the Minister of International Trade

Madam Speaker, I am thankful for the opportunity to contribute to this debate on Bill C-32, the fall economic statement and its implementation. It is critical to address this kind of issue. It is critical to the constituents I represent in Parkdale—High Park in terms of the cost of living crisis that so many Canadians are facing and in terms of addressing affordability.

I am happy to highlight, in the context of this intervention, what we are doing and what we are proposing to do as a government. Let me start with students. I feel that I am not that far removed from my student years, although it has been almost 30 years. I remember those days fondly. What I did not have to deal with then that students have to deal with now is really crippling debt with skyrocketing tuition rates and the debt loads that young people are taking on.

We want people to be considering post-secondary education. We want them to be advancing themselves and their careers through higher education. During COVID we implemented a new relaxation on the interest being charged on federal student loans. With the fall economic statement, we are entrenching permanently the position that we took during COVID on a go-forward basis to eliminate interest on the federal portion of student loans.

The caveat here is that not every province is following suit with their provincial counterparts. As a proud representative from Toronto, I urge the provincial government in Ontario to follow suit as six other provinces have. This would ensure that the provincial portion in my native province also eliminates interest so that we can render more fairness for these young people.

The next subject area I will to turn to is housing. Housing is something we hear about all the time and rightfully so. Housing has become difficult in terms of attaining housing on a purchase model for people who would like to own property. It has become difficult for people who want to rent in this country. It is difficult on a number of fronts.

Colleagues know the actions we have taken as a government, but more needs to be done. The national housing strategy was an important initial step in 2017. We have supplemented that with continuing contributions to the housing portfolio.

What we are doing in this fall economic statement is fourfold. The first thing we are doing is ensuring that a new tax-free first homes savings account is permitted to be opened. This will operate much like a TFSA. This would allow a young person or a young couple to save as much as $40,000 in savings, tax free, to contribute to the purchase of that first home. That is an important step.

A few years ago, we also implemented something called the first-time homebuyers' tax credit. The fall economic statement proposes to double that amount to reflect the fact that housing prices have gone up. We appreciate that people need more of a credit to take that initial step to purchase their first home.

On a third front, what we are doing with respect to house flipping is really critical. We have heard about the commodification of the housing industry. We have heard about people using it as a speculative sort of exercise. The proposal contained in the fall economic statement is to tax the profits as business income for those who would sell a property within 12 months of having purchased it, preventing them from taking the capital gains exemption that is otherwise available to them. That is really critical because we want to ease that speculation in the housing market, not encourage it.

The last piece is also critical for those who want multi-generational housing. This is common in some parts of the country and some parts of the Canadian mosaic. We are trying to facilitate seniors to age at home. For example, for people who might want to have elderly parents live in their homes, possibly having three generations within the same dwelling, the renovation tax credit is being expanded through the multi-generational home renovation tax credit.

It does not stop with those who own homes. What we are doing for renters is very significant. Recently we topped up the Canada housing benefit, which was implemented through a proposal that I believe received royal assent yesterday. That was a $500 top-up. It is unfortunate that not all parties were onside in terms of supporting Bill C-31, which implemented this increase of $500 to the Canada housing benefit. It targets low-income Canadians who are renting in this current financial environment. Approximately 1.8 million people renting in this country will be affected by this one change, which is direct assistance during difficult economic times to help with the cost of housing.

On the broader piece of affordability, I want to highlight two other key facets. The first is the GST rebate, which I believe is in Bill C-30, if memory serves. Thankfully, there was a lot of consent in the chamber for doubling it for the next six months. That affects 11 million Canadians. That is a very significant form of assistance in difficult economic times.

The second is the dental benefit, which will be up to $1,300, in Bill C-31, which I believe received royal assent just yesterday. That will enable children under the age of 12 in low-income families to get much-needed dental care. I will salute the approach that has been mooted in the chamber by various parties about expanding the concept of health care to include dental care. That is a step in the right direction. That is a step we need to take and are taking as a government. This is really critical.

Another point I want to add, if I can open a parenthesis, is that it is critical for people to understand, including Canadians watching right now, in dealing with the rising impacts of inflation, they should note how many government benefits that are currently part of our social safety net are indexed to inflation. They are multiple. The Canada child benefit, the GST credit, CPP benefits, old age security, the guaranteed income supplement and even the federal minimum wage are all tied to and indexed to inflation. We do not want to see inflation rise any further, but if it does, the benefits will also have a concomitant increase. That is very important to give people peace of mind about what their benefits will be assisting them with as we deal with difficult issues about the cost of living.

I want to touch on what we are doing for workers. We are working hard to assist workers directly. The fall economic statement would enhance the Canada workers benefit, which we have implemented. For those who are not familiar with it, there used to be disincentives for people coming off of assistance and taking low-paying work. We did not want to disincentivize people from leaving government assistance and entering the workforce.

The Canada workers benefit creates a top-up for those people who are in that particular situation, so they are encouraged to enter the workforce rather than discouraged. With this change, we are not providing that benefit annually, but on a quarterly basis, so those benefits will be in people's bank accounts more frequently, which helps them deal with the cost of living on a more direct and frequent basis. This one change has the potential to affect as many as 4.2 million workers.

We are also talking about a sustainable jobs training centre. This dovetails exactly with something we have heard a lot about over the past four to five years in the chamber, which is the notion of a just transition. How do we transition good, unionized work from different sectors into good, unionized, high-paying jobs in new, sustainable clean tech sectors? We do that through harnessing the power of unions and also through harnessing the powers of a sustainable economy. The sustainable jobs training centre would do just that. That is part of the fall economic statement.

We are also addressing fairness for workers directly by taxing share buybacks. This is important because, as the Minister of Finance outlined when she announced the fall economic statement, what we want to do is encourage businesses to not hold on to their wealth, to not pay for dividends to shareholders, but rather to reinvest in their businesses, including through R and D, which would empower the workers themselves. That is a critical feature, and that is what we are doing in this fall economic statement.

Another component is addressing fairness for small and medium enterprises. I am proud to serve as the parliamentary secretary to the Minister of Small Business. Insofar as we addressed the small businesses stakeholders around the country, we heard repeatedly from entities about the prohibitive costs of credit card transactions, which only escalated during the pandemic as people turned to cashless methods of payment.

The charges that are part of the credit interchange fee structures are proving to be more and more prohibitive on small business owners. What we have committed quite openly in the fall economic statement is that we will doggedly pursue a negotiated agreement with financial institutions to reduce those fees. If those negotiations prove futile or unsuccessful, we have made a public statement in the chamber and through the fall economic statement that we will actually legislate in this area to bring down those fees. That would have a direct impact on small and medium businesses.

On this point, I want to read some of the reaction we have heard. The Convenience Industry Council of Canada has said, “CICC is pleased that the government has responded to our calls for action and has acknowledged the impact that credit card fees are having on convenience stores across the country.” They also said that Canadian convenience stores “have reached a tipping point & we need the feds to act NOW.”

That is exactly what we are doing. We are responding to this. When one responds to the needs of small business owners, one also responds to the people who use small businesses, the consumers who are facing escalating costs because credit card transaction fees are passed on to them.

That is part of what we are doing in the fall economic statement. It is critical to address the cost of living needs of Canadians, my constituents of Parkdale—High Park, the constituents of every member in this chamber. That is why I will be voting in support of the fall economic statement, Bill C-32, and I encourage every member of this chamber to do the same.

Fall Economic Statement Implementation Act, 2022Government Orders

10:35 a.m.

Conservative

Tako Van Popta Conservative Langley—Aldergrove, BC

Madam Speaker, my hon. colleague talked about programs to assist university students getting into their careers. University students I speak to in my riding are very concerned about the evaporating dream of home ownership. I know the member will probably mention the first home savings account, which would allow them to save up to $40,000. I will point out that, at the rate of inflation, this is about one year's worth of inflation on housing.

What will the government do to tackle inflation, which is the real problem students are facing?

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10:40 a.m.

Liberal

Arif Virani Liberal Parkdale—High Park, ON

Madam Speaker, I appreciate that housing is a critical feature. It is a critical feature in the province of British Columbia, as it is in my province of Ontario. What we are doing, as I mentioned, are things such as the first-time home buyers' tax credit and the tax-free first home savings account. We have already initiated a national housing strategy. We campaigned in the 2020 election on more housing starts, and we are working co-operatively with many provinces, including my own, to build more housing. I also point to the rapid housing initiative, which has been very targeted in building more housing faster.

In terms of inflation, I hope every member of the chamber appreciates the inflationary pressures Canada is facing are not unique to Canada alone. They are being faced by all of our G7 allies, indeed by all of our allies around the planet. In fact, comparatively, Canada's rate of inflation is lower than the United States and all of our G7 allies, which is an important feature for this debate.

Fall Economic Statement Implementation Act, 2022Government Orders

10:40 a.m.

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Madam Speaker, I thank the parliamentary secretary for his speech. He just went over the whole inflation problem.

The word “inflation” appears in the fall economic update 108 times. We know that in contrast to the previous budget, there are no new measures. It is just a rehash. It uses different rhetoric to justify the same measures.

The government is rightly concerned that a recession could hit this winter. As far as the recession is concerned, the Bloc Québécois is asking for employment insurance to be reformed as soon as possible so it is ready to go. The government was supposed to have it in place for last summer, but the system still has not been reformed. We would not want to have to create a CERB 2.0 to limit the damage and make up for a failing EI system.

Why was this reform not included in Bill C‑32?

Fall Economic Statement Implementation Act, 2022Government Orders

10:40 a.m.

Liberal

Arif Virani Liberal Parkdale—High Park, ON

Madam Speaker, I thank the member for Joliette for his question and his interest in this very important issue.

Regarding inflation, I mentioned in my speech that all the programs, roughly six of them, are indexed to inflation. In other words, if inflation goes up, the government benefits will also go up.

As far as EI is concerned, that is a very specific issue. Members can see from the mandate letter that the Prime Minister wrote to the minister responsible for this file that we are here to resolve the situation in consultation with all the provinces. We will always be there for employers and workers.