Debates of March 21st, 2022

Opposition Motion—Cost of Living

[Rachel Bendayan, Liberal, Outremont, QC]

Madam Speaker, of course I agree. For me and for many of my constituents, raising taxes on the largest and most profitable banks was an essential part of our election platform.

However, that is not the only thing included in the motion we are debating today, and that is why we are discussing it.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, I have a simple question for my hon. friend with respect to affordability. Gas prices are top of mind for many Canadians. Does the government wish to see gas prices higher, lower or where they are right now?

[Rachel Bendayan, Liberal, Outremont, QC]

Madam Speaker, I was very interested by my colleague's earlier question on this same topic. I would like to remind the member, as well as all members in the House, that the price on pollution that he likes to refer to as a gas tax, which I am fine with, is actually completely compensated, for Canadians and all members of the middle class, through our climate action incentive.

Canadians do not pay a higher rate at the pumps because of our price on pollution. They are paying a higher rate at the pump at the moment because of several factors related to the pandemic, which I detailed in my speech, and because of the unjustified and illegal war that Russia has begun against Ukraine.

I would be happy to engage with my colleague further on the topic, if he likes.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, I really am in favour of this motion, and one of the things I want to highlight in it is the last point: a publicly accessible beneficial ownership registry. Just within the last few days, an important report was released called “Snow-washing, Inc: How Canada is marketed abroad as a secrecy jurisdiction”. This is not just federal. I want to emphasize that this happens provincially too. However, non-Canadian corporations can register and take housing out of our markets for speculators.

Does the hon. member have a comment on that?

[Rachel Bendayan, Liberal, Outremont, QC]

Madam Speaker, one of the measures that I am very much in favour of is to increase taxes on those who are speculating in our markets here in Canada. We have proposed a tax on foreign buyers who wish to scoop up Canadian homes for the purpose of either flipping them or leaving them vacant in order to have a property sold at a later date. I think we absolutely need to attack speculation, and I thank my colleague for her question.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Madam Speaker, as I listen to my Conservative colleagues, something is bugging me.

They are saying that their constituents like low gas prices, but the oil companies like high gas prices, because the cost structure of these companies means that they are only profitable when the price of oil goes up.

Could my colleague please clarify the following: Do Albertans like expensive oil or cheap oil?

[Rachel Bendayan, Liberal, Outremont, QC]

Madam Speaker, as a proud Quebecker, I would not dare speak for Albertans, and I think that my colleague would agree with me.

[Ken Hardie, Liberal, Fleetwood—Port Kells, BC]

Madam Speaker, to what degree do we need to count on action by the provinces in order to get meaningful measures to deal with the high cost of things and particularly housing?

[Rachel Bendayan, Liberal, Outremont, QC]

Madam Speaker, it is important for us to continue to work with the entire private sector and particularly with our banks. As I mentioned in my speech, it was an important platform commitment to raise the income tax for the most profitable and largest banks in the country.

[Ryan Turnbull, Liberal, Whitby, ON]

Madam Speaker, it gives me great pleasure to rise today and speak to the opposition motion before the House.

We are acutely aware that many Canadians are being squeezed by higher prices for groceries and gasoline. Our government knows that elevated inflation, a global phenomenon, is driven by the unprecedented challenge of restarting the world's economy and the instability of global markets as a result of Russia's attack on Ukraine. These factors are leading Canadians to worry, and rightly so, about the cost of living.

The pandemic also continues to be a threat to global supply chains and inflation, with a surge in cases in China and another wave beginning in Europe. As global economies have unwound COVID-19-related restrictions and re-opened their economies, the price of goods has gone up around the world.

This is a result of several factors. One is that during the pandemic, millions upon millions of people redirected the money they usually spent on in-person services towards durable physical goods. This has put an extraordinary strain on global supply chains, leading to shortages and bottlenecks. This has been a significant driver of inflation around the world. Furthermore, the droughts in key food-producing regions, including our prairies, have caused grocery bills to go up, and energy prices have increased at rates not seen in decades.

Indeed, the Bank of Canada and private sector economists anticipate that inflation may stay higher for longer than initially expected, but they expect it to ease back towards the 2% target over the next two years as pandemic-related forces start to fade and as market conditions begin to rebalance and equalize and hopefully return somewhat to normal.

As we have always said, restarting the economy is a complex process, and the Canadian and global economies are still feeling the impact of the COVID-19 pandemic. Now, along with higher prices for a broad range of commodities, the Russian invasion threatens renewed supply disruptions, all of which are expected to add upward pressure on prices.

Our government has been swift and decisive in its actions, along with Europe, the United States and the United Kingdom, to put in place the toughest sanctions ever imposed on a major economy. We remain steadfast in our support for Ukraine and we will do whatever is needed to continue to put pressure on Russia and choke President Putin's ability to fund his illegal and unprovoked war of aggression on Ukraine.

However, in order to really be effective, in order to really have an impact, we are going to have to be prepared for some adverse consequences for our own economy, which could also temporarily affect Canadians' cost of living. That said, Canadians should rest assured that when it comes to government benefits and concerns over inflation, the government indexes the Canada child benefit to inflation, as well as old age security, the guaranteed income supplement, the goods and services tax credit, and other benefits for the most vulnerable people.

Our government has also cut taxes for the middle class while raising them on the top 1%, and we are working to address the housing affordability issues that we see across our country as well. In fact, we have put in place Canada's first-ever national housing strategy, a $72-billion investment over 10 years that has created hundreds of thousands of affordable housing units, and we have now added a large package of new measures in addition to the national housing strategy, which should help to control the affordable housing problem.

We are also working with provinces and territories to implement a Canada-wide $10-a-day community-based early learning and child care system that would make life more affordable for families, create new jobs, get parents back into the workforce and grow the middle class while giving every child a real and fair chance at success. Ontario is the only province that has not signed on to these agreements, and we are looking forward to getting that done. It would save families in my riding of Whitby up to $600 per month in just the first year through a 50% reduction in fees. That is a pretty significant amount of savings for the average family. We could think about that in terms of per-child savings, so if a family has two or three children, there would be even more savings.

I also want to mention renewing Canada's monetary policy framework. Additionally, a strong monetary policy framework is the best weapon in our arsenal to keep prices stable and keep inflationary pressures in check.

Our government and the Bank of Canada believe that monetary policy can best serve Canadians by continuing to focus on price stability. That is why, last December, our government and the Bank of Canada announced the renewal of the 2% inflation target for another five-year period. This renewed framework will keep the bank focused on delivering low, stable and predictable inflation in Canada.

Since Canada adopted an inflation targeting framework 30 years ago, inflation has averaged close to 2%, which has contributed to our country's strong labour market performance, to our economic growth and to our prosperity. Maintaining a stable environment for the prices that Canadians pay is a paramount objective for Canada's monetary policy. That has been the case for 30 years and it will remain the case for the next five. Doing so supports a strong and inclusive labour market that provides every Canadian with opportunities for a good, high-quality way of life. That is why the review and renewal of Canada's monetary policy framework every five years is such an important moment for our country. This renewal of Canada's monetary policy framework is fundamental to Canada's economic success. It is about continuity and about continuing to do what we know works.

As members can see, our government is already working hard to address the cost of living and to make life more affordable for Canadians. Thankfully, by delivering significant fiscal policy support to Canadians during the pandemic and avoiding harmful austerity policies, we have seen a rapid and resilient recovery so far. The vast majority of the government's recovery plan is targeted towards growth-enhancing and job-creating initiatives, such as investments to support child care and the adoption of new technologies that will help boost supply and increase space for the economy to grow without the risk of higher inflation. Our government has moved from very broad-based financial supports to more targeted measures that will provide help where it is needed and when it is needed.

I am pleased to say that our plan is working. Canada has exceeded its goal of creating a million jobs, well ahead of expectations. It has the strongest job recovery rate in the G7. In fact, as of February, despite the temporary effects of the omicron variant on Canada's labour market, 112% of the jobs lost since the peak of the pandemic have been recouped in Canada. That is significantly outpacing the U.S., which is at just about 90% of jobs recovered.

Canada's GDP has now returned to prepandemic levels. It was reported in the fourth quarter of 2021 that the annualized growth rate of GDP in Canada was 6.7%, which is a pretty incredible economic recovery. We are well on track, and we focus now on shifting to sustaining and enhancing Canada's growth potential. That is going to be important as we move forward.

However, we know that more can be done, especially as we emerge from COVID-19. Despite impressive economic performance in certain parts of the economy, as I stated, our government is mindful of the global phenomenon of elevated inflation and its impact on the cost of living, and mindful that housing continues to be top of mind for many Canadians. As we look to the years ahead, the government's focus will continue to be on jobs and growth and making life more affordable, priorities that will form the foundation of the upcoming budget. The cost of living crisis and making life more affordable have been priorities for our government, and I have given many examples in my speech today. There is much more work to be done, of course, and this is an ongoing concern for Canadians.

To wrap up, there are many factors due to the current geopolitical context. Our country and Canadians have gone through many crises over the last two years, and our government is doing its very best to remain responsive to the needs of Canadians and address the affordability challenges that every Canadian experiences. By no means have we solved it all, but at the same time we have made a lot of progress, and we will continue to work hard to alleviate the stresses and strains that many Canadians face with the cost of living challenges.

[Laurel Collins, NDP, Victoria, BC]

Madam Speaker, I thank the member for his speech.

In the most recent mandate letters for the Minister of Finance and the Minister of Innovation, Science and Industry, the commitment to make a beneficial ownership registry public was curiously absent. I would ask the member if he knows if his government is still committed to making this registry public.

Currently, the government only collects limited data on ownership, and money laundering is wreaking havoc on our housing market. Will the member across the way commit today to push his government to make this important registry public?

[Ryan Turnbull, Liberal, Whitby, ON]

Madam Speaker, I appreciate the member's push in this direction. It is an important discussion to have. Strengthening the transparency needed for corporate beneficial ownership is a topic that our government is very concerned with and, in fact, has done a pretty substantive public consultation and engagement on.

I note a document posted on the Government of Canada's website from April 6, 2021, provides quite a lot of information about some very detailed and in-depth consultation work that was done. I will read the conclusion, which states:

...stakeholders across the spectrum supported the idea of a central registry (or registries) of beneficial ownership information as an effective tool in making sure that law enforcement, tax and other authorities obtain the information they need to identify the natural persons who own and control Canadian corporations. While there were more mixed views on the value and merits of public access, [this]...remains a priority of the Government of Canada.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, the member mentioned child care in his speech as part of this debate on affordability. He is keen that his province sign on. I will share a big challenge that I am hearing of from child care providers in my province, a province that has signed a deal with the federal government, and that is that the federal plan effectively involves deregulation and limited increases to fees, which are actually below the current rate of inflation.

Child care providers are very concerned. They are being told that they cannot charge more than a certain amount, that they cannot raise their fees beyond a certain amount, and that is severely limiting their ability to expand to offer more child care services and do what this plan is theoretically supposed to do, which is to increase the availability of child care.

In the short term, it sounds great to say the fees are being regulated, but in the long term, if child care providers cannot expand, cannot afford to offer services and are being forced to close as a result of the cost squeeze on them from inflation and other factors, there is a serious problem. It is a real sort of ticking time bomb in the availability of child care services.

[Ryan Turnbull, Liberal, Whitby, ON]

Madam Speaker, I appreciate the member's concern and interest in seeing child care agreements signed across the country and the substantive reduction in fees that families, which are ultimately the consumers and beneficiaries of these services, would experience as a result of the very substantive federal government investments across Canada.

In terms of regulating and capping fees, this is an issue that our government would take seriously. The formula, as I understand it, as it applies to the provinces and territories, seems quite fair from my perspective. Ontario has $10.3 billion on the table that it can take advantage of to offer children and families across Ontario access to affordable child care. That is an opportunity not to be missed.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Madam Speaker, the last two government members who spoke talked to us about the monetary policy framework and tried to reassure us by telling us that there are still two years of higher inflation ahead before it goes back down to 2%.

Let me do the math for my colleague. If we include energy and food, inflation was 6% last year. If that percentage stays the same this year and the next before going back down to 2%, that translates to a 20% increase in prices over four years, or the equivalent of 10 years of inflation in 48 months.

That is why we are asking that old age security be increased by $110 a month for our seniors. I would like to know if the Liberals do not know how to count or if they have simply forgotten about our seniors.

[Ryan Turnbull, Liberal, Whitby, ON]

Madam Speaker, I appreciate the member's lesson in mathematics. Our government has not forgotten how to count.

As I said in my speech, old age security and the guaranteed income supplement are indexed to inflation. The Bank of Canada has set 2% as a target, and over the course of the next five years, it will be putting a monetary policy in place, including the recent increase in the base interest rate, that will help to control inflation.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Speaker, I will be sharing my time today with the amazing member for Cowichan—Malahat—Langford.

We are here today to talk about an NDP motion that really addresses the key issue of where the bar of dignity is in this country we all belong to. What we are seeing across this country is more and more people falling below it. Members may ask what I mean by the bar of dignity. To me, it means that one has the ability to look after themselves, to have a roof over their head, to be able to feed themselves, to be able to afford the medication they need and to be able to access those basic things that we all deserve to be a part of because we are all Canadians and because we live in a wealthy country that should be looking after all the people who live in it. Right now, we are in another government, another federal government, which passes hands between the Liberals and Conservatives, that continues to take that bar of dignity and lower it and lower it.

We have heard from some of our Liberal friends here today that there are some great economic outcomes. There are more jobs and there are more opportunities. However, when we talk to everyday people who are living through that experience right now, what we see very clearly is that a lot of those folks are working three or four of those jobs trying to make ends meet. We are talking about families who do not get to spend time together as a family because both working parents have to juggle all of those factors. We need to look at this in what we are seeing people do and see where their needs are.

I cannot help but touch on housing. In my riding of North Island—Powell River, we have seen a huge increase in the cost of living. That is largely based around a housing market that has exploded. Parts of my riding, some of the most rural and remote communities, have seen the cost of housing go up between 60% and 80%. That means that people who are living within those communities cannot afford to purchase within their own community.

It has also had a huge impact on people who were renting homes. With the market exploding this way, we are seeing a lot of people who own houses that they usually rent out are selling those houses because they are making a lot of money in doing so. This means more and more people are unhoused.

Just the other day, we had a gentleman walk into our office. My staff were quick to tell me when I came back. It was a gentleman who lives on disability. He has been living in his apartment for many, many years and has just been told that he has to leave because a new person bought the home that has the rental unit he lives in. His reality, and it is the truth because I have heard it from so many people across my riding, is there is nowhere else for him to go. There is no affordable unit for him.

When I hear that the government is giving money to private corporations that are charging rents that are 30% to 120% higher than the market rate, it just tells us this is not a project or program that the government is taking seriously. It is not about making sure the people who are unhoused, who are struggling, who do not know how they are going to live from day to day are going to be able to have an affordable home to live in. It is about priorities, and that is what this motion is about in this House. It is about saying that the people who work hard every day deserve to be treated with dignity.

I think about these challenges. I have talked to a lot of professionals who have lost their rental units simply because they have been sold from underneath them. They are now living in trailers hoping that trailer parks will not just stay open during the normal summer, spring and fall months, but that they will stay open the whole year, just so they have somewhere safe to live.

I also think about the many seniors who had the GIS clawed back. They were contacting our office. They are very grateful they are seeing those dollars come back to them, but in a lot of cases, they have already lost their home and have already lost where they live. Now, because the cost of living is going up so much and because the cost of rentals are going up so much, they have nowhere to live.

Just the other day I was at Kwesa Place, which is a place in Campbell River that provides showers and laundry facilities for those who are unhoused. When I was there, I met a lot of folks who are just struggling to get by, who are really challenged for multiple reasons.

One of the things that was most startling to me was that inside that space they have a project they are working on. They are building wooden structures that people would be able to pull, either on their own or with a bike, that they can live in, because there is nowhere else for them to live.

I really respect solutions. I really respect when communities come together, look at some of these issues and create solutions, but this tells me we are still not seeing a federal government that sees the right to housing as a basic human right. The government is saying that it is okay for people to scrounge around to make a few thousand dollars and build a wooden box to live in, so they do not get cold in a rainstorm.

As such, I appreciate what Kwesa Place is doing. I really appreciate the warmth it brings and how it helps people be able to wash their laundry, but I want the bar of dignity in this country to be higher. That is what this motion is about.

I have also had some conversation with food banks in my riding. We have talked about the huge numbers of people who are coming through and continue to come through. They are people who have never had to use the food bank before. People who are working hard every day and making a decent income are having to come to the food banks because they cannot afford not to. Why is the government continuing to allow the bar of dignity for Canadians to go so far down?

What I find the most frustrating is that often in these big moments of discussion about how to make the world a better place, I see people fighting one another and people mad because one group of people has one right and another group of people has another right. I think it is important for all of us, as Canadians, to come together and ask what the real issue is here. The real issue here is that wealth is being held by very few in this country, and every year we are seeing their piece of the pie grow larger and everybody else's grow smaller, so I really encourage Canadians to stop fighting about their small piece of the pie and other people's small pieces of the pie.

Let us start talking about what really needs to happen, which is leadership from the federal government to say that, if someone is going to make enormous profits, they need to step up and pay their fair share. I can tell members that the people in my riding, whether they work in the fishing industry, the logging industry, or in education or tourism, are paying their fair share every single day. They care about their communities every single day, but there are those in this country who are not paying their fair share.

I just want to let my constituents know that in 2021, Scotiabank had a net profit of over $10 billion. It paid $4.3 billion of those billions of dollars in dividends to the shareholders, and at the same time it increased its customers' banking fees. Then we saw that BMO made a net profit of $7.7 billion and paid out over $2.7 billion in dividends, while increasing the fees for its customers' bank accounts.

We can look at Loblaws, owned by the very wealthy Weston family, which made a net profit of $1.9 billion. They paid $484 million in dividends to their shareholders. However, they refused to increase the wages of their workers. They refused to supplement those frontline workers who have been working on the front line during this pandemic and who continue to work on the front line. They are at higher risk of contracting COVID-19.

Really, today we are here to talk about fairness, to take up that space and make this country a little fairer. Let us look at this motion. It would direct the Liberals to fulfill their campaign promise. This is perhaps a bit of a new thing for them, but something I am really hopeful they will follow through with. They said they would implement a 3% surtax on banks and insurance companies with net profits over $1 billion.

We also want to see it extended to oil companies and large grocery chains with net profits over $1 billion because it is time for a government in this country to finally stand up, stop protecting excess corporate profits and start saying the bar of dignity in this country needs to be higher.

We should not have seniors at the bottom grovelling for the things they need, when they built this country. We should not be asking families to put groceries back on the shelves because they cannot afford them. Hopefully we will see some action on this.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I would not want to see false impressions being given when we have seen over the last number of years a progressive government that has focused special taxes on some of the wealthiest in Canada, right from the first budget up to legislation that we just passed.

Recognizing that the member made reference to the cost of housing, we now have an annual tax for individuals who are purchasing condos and so forth, in places such as Vancouver and our other big cities, and using them purely as an investment as opposed to a residence. That is a special annual tax that will be applied to very wealthy people. There are different ways we can approach this.

I would suggest to the member that what she said has been noted, and I appreciate the comments, but I would ask her if she could provide her thoughts on this: When you make reference to banks, we need to be fair. Many of the shareholders of the banks are pension funds and so forth, so it is not only individuals per se.

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

I would remind the hon. parliamentary secretary that I do not participate.

The hon. member for North Island—Powell River.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Speaker, as always, I appreciate that the member rises almost every time, after almost every single speech in this House, to ask yet another question.

I want to remind the member that it is not the opposition's job to make the government feel better about the inaction of its steps. What I really would like to see is fairness and a bar of dignity. As the great Shania Twain says, “That don't impress me much”.

[Nathalie Sinclair-Desgagné, Bloc, Terrebonne, QC]

Madam Speaker, I want to thank my hon. colleague for her very refreshing speech. It is good to hear people propose progressive, tangible ideas.

The Liberal Party had already promised a 3% surtax during the election campaign. The NDP's motion today expands the application of that surtax to oil companies and big box stores. Could my colleague explain this decision to expand the surtax to those two sectors?

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Speaker, I want to thank the member for that thoughtful question. I really appreciate it because one of the things I think is really important in this conversation is that the federal government has the tools in place to measure where wealth is extreme and where profits are coming in at high amounts.

The reality is we know that people living in Canada, everyday people, are seeing poverty grow. They are making decisions that I think Canada does not want them making. This is why we brought forward these additions. These are for folks who have been making a profit in excess of $1 billion. It is only fair that when one is making an excess of profit that we open up those doors and make sure that no one is left behind.

Unfortunately, we have systems that continuously leave some people behind. They think that crumbs, a little extra here and there, will make a difference. We need to see that bar of dignity rise. That is why we proposed this motion.

[Laurel Collins, NDP, Victoria, BC]

Madam Speaker, while big box stores, big banks and big oil companies are making record profits, over half of Canadians are struggling to keep up with the cost of living. I have heard Conservatives in this House imply that extreme wealth inequality is inevitable, but consecutive Liberal and Conservative governments have made choices that got us here. Can the member speak to the responsibility of the current government to own up to what it has done, what got us here, and to take action now?

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Speaker, the member's question is really perceptive and thoughtful, because that is the reality. What we are seeing is consecutive Conservative and Liberal governments continue to make decisions, make laws and not fight the laws that grow the wealth of the wealthiest people in this country, and that leaves everybody else behind.

As we go through these hard times, as we face challenges of inflation, and I am from B.C. so know how high the cost of gas is, we see that everyday workers, everyday people, and those who cannot work because they have health issues, cannot get ahead or even reach dignity. Therefore, the government has to take action.

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

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Spadina—Fort York, Foreign Affairs; the hon. member for Yorkton—Melville, Royal Canadian Mounted Police; the hon. member for Stormont—Dundas—South Glengarry, Housing.

Resuming debate, the hon. member for Cowichan—Malahat—Langford.