House of Commons Hansard #53 of the 44th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was nato.

Topics

Encouraging Growth of the Cryptoasset Sector ActPrivate Members' Business

5:55 p.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, my thanks go to the member for Calgary Nose Hill for bringing this bill forward. As others have mentioned, I think this is a really important discussion. Whether we would like it or not, whether people want to be boosters of the industry or critics of it, there is no doubt that this industry is growing, that it is significant and that it is beginning to play a significant role in a number of different financial affairs in a number of different ways. I do think it makes sense to begin having conversations about how we can regulate that space in the public interest.

I appreciate some of the points that have been made about what I might call the aesthetic of the bill, the language that was chosen and the way that it speaks about the industry, but I am going to present a little bit of a different view, I think, in saying that I do not think we should let that get in the way of trying to continue the conversation that was started by this bill just today.

I think we have heard some really important concerns. They are not new. We have heard these concerns out and about, so to speak, about cryptocurrency. We have heard concerns about the way in which it can be used to launder money and the way in which criminal organizations appear to be using cryptocurrency to advance their own illegal agendas. We have also heard concerns elsewhere, outside the debate tonight, about the speculative nature of cryptocurrency and the way it acts for some, apparently, in the way that a gambling addiction does: People get addicted to trying to make quick money off cryptocurrency and exhibit a lot of patterns that are similar to folks who have gambling addictions.

I also want to raise an emerging area of concern in respect to cryptocurrency that has to do with the environment: the amount of real-world energy and real-world costs to the cryptocurrency industry for something that may prove to be fundamentally speculative in value. We are hearing of coal plants and gas plants, for instance, in the United States, that had been heading toward decommissioning but have been given new life and are producing new emissions in order to satisfy the needs of these industries. That is all the more reason that it is imperative for legislators to take on this task sooner rather than later. It is not as though this bill is the gateway to launching the cryptocurrency industry. It is here; it is already active; it is growing exponentially; and it is having real effects.

Oftentimes in this place, we are stuck talking about industries that have been carrying on without any form of regulation, as is the case with this particular industry right now. It is operating, and there are no rules. It is the Wild West. We often talk about things that have been around for a long time that have no regulation. It becomes, as time goes on, even more difficult to regulate in the public interest once the die is cast for industries like this. I think of some of the problems we are experiencing now with social media and some of the attempts that have been made even just recently to try to bring some order to the social media universe and to try to mitigate some of the harms that an unregulated social media space can have for democracy, among other things.

All of that is to say that I welcome this bill, even though I may not like all of the language. Certainly I have been reassured by the debate tonight that if this bill were to go to committee, there would be a lot of people around the table who would have the right concerns and would be interested in figuring out how we can regulate this space in the public interest so that Canadians who wish to do so can avail themselves of whatever benefit there is to this industry. It is reassuring even to have a table where we can talk about what the real benefits are, versus just a kind of participation in a game of speculation in which there are winners and there are losers. I think I am not wrong in saying that predominantly a lot of young men in particular seem to like to invest in cryptocurrency. Some of them have done very well for themselves; some of them lost the shirt off their back, and it will be a long time before they recover from their foray into the world of cryptocurrency.

I think it behooves us as legislators to talk about this. Whether the language of the bill is a little more boosterish than I might like is beside the point. I do not think it is fatal to the project. I would welcome the opportunity to get into this more at committee to ask these very questions, to invoke some of the real expertise from outside this chamber and to help us all learn more about it as legislators. It would also create a forum for the Canadian public, who have a lot of questions about cryptocurrency and what exactly it means, and maybe whether they should invest in it or just ignore it because it is a Ponzi scheme.

I think a lot of Canadians are looking for a credible source of information. A committee would provide an opportunity not only for legislators but for Canadians to follow along to hear from not just industry experts, I hope. I would want to hear from people whose business is consumer protection. They could talk about the impacts I was referring to earlier. They might include addictions specialists who are looking at the gambling aspect of cryptocurrency as experienced by some people. I would also want to hear from people who are watching the environmental impacts of the industry and have something to say about how it ought to proceed. That is not all. I see some heads shaking in the Conservative benches, but that is not about saying no to the industry. I know there is a movement afoot that had suggested how changes to coding language could significantly reduce the environmental impact of cryptocurrency.

For me the real point is that these are things we should be talking about, and we should not be talking about them 20 years from now, as is so often the case with legislatures when it comes to new industries and new technologies. This is usually because it is really hard to find agreement in these kinds of places and we tend to be hypersensitive to the connotation of using this kind of language to describe it as opposed to that. I understand that. I am guilty of it myself. I say “guilty”, but I do not think it is a bad thing in certain contexts. In this case, I really do welcome the opportunity to dive further into this. It is why I am prepared to support the bill at second reading, and I believe my colleagues in the NDP are prepared to support the bill at second reading, in order to try to create a forum to get into these matters more.

There is a real public interest in continuing these conversations, and I am quite reassured by the debate tonight. There are a lot of members of Parliament from all sides of the House who are live to the real concerns and real risks of this industry and also appreciate that there may be some positive potential. We may want to get straight on what that positive potential really is. If we find that this is just a speculative enterprise and it does not add any real value, then perhaps we should be skeptical of it. I do not pretend to know that answer at this point. As a member of the finance committee, I would appreciate the opportunity to delve more deeply into it, and supporting the bill for me and for my NDP colleagues is an opportunity to advance that discussion in a forum where we might hope to make some progress on regulating this industry.

I note that the bill calls for the minister to table a framework. We do not have a regulatory framework in the bill and it does not really authorize anyone to make a regulatory framework. It just calls for a minister in the government, whatever the government of the day may happen to be, to table a document that, as is the wont of this place, will lead to more conversation. There will be more opportunities to criticize. If it is too boosterish, there will be opportunities to criticize that. If it is too heavy-handed from a regulatory point of view and certain people feel that this shuts down the positive opportunity of the industry, whatever that may be, there will be an opportunity to provide feedback on that. Doubtless there will be a government bill at some point before the industry is actually regulated in Canada.

I see this as an important first step in establishing the conversation and taking it seriously here on Parliament Hill. That is why I am pleased to provide my support to the bill today, notwithstanding some of the legitimate criticism that we have heard here tonight.

Encouraging Growth of the Cryptoasset Sector ActPrivate Members' Business

6 p.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Madam Speaker, I want to thank the member for Calgary Nose Hill for the bill that she brought forward to attempt to make Canada a leader in the crypto space, which we kind of already are.

I heard a couple of comments today from speakers about growth. We have to have certainty before we can continue to grow. This is trying to provide certainty to the industry so that people know the rules as they go forward. A couple of years ago, there was a framework specifically around cryptoasset trading platforms. The Canadian securities administrators, with all of their provincial trading commissions, put this together and it set a framework. It is a very public document worked on in collaboration. It established, for exchanges that wanted to be exchanges in this country, a path to that goal. In Ontario, my home province, we have had a number of spot exchange-traded funds in this province, which is significant. The United States does not even have that yet. It only has future exchange-traded funds.

In addition to that, Bitbuy, just in the last quarter of 2021, worked with the OSC IIROC to be a market maker: to be an exchange and a marketplace for cryptoassets to be traded, because this framework was done three years ago. Just as the member for Calgary Nose Hill provides, let us get the experts and the industry to come together so we can get this moving forward. In the United States, people only wish that they had a spot ETF. Let us not get mixed up on the growth. What the member for Calgary Nose Hill is trying to say is let us not get in the way of growth. Let us make sure that industry has certainty so companies will want to come here and invest their billions of dollars.

The market cap of the cryptoassets is $2 trillion. That is in 13 years. The market cap of gold is $10 trillion. Therefore, it is $2 trillion for crypto and it is $10 trillion for gold. How long has gold been around? It has been around since the earth was established. There is $100 trillion in real estate, so there are huge opportunities here. We have to continue to push forward. That is what they want.

I will give an example. Let us look at all the different entities that businesses have to deal with. I made a list. They have to deal with the securities administrations and their provincial administrations, including the OSC and all the ones in all the provinces. IIROC is one they have to deal with. CRA is on the list, for how they are going to be taxed. The entities include the Department of Finance, potentially, the Bank of Canada, potentially, and on and on. When we say that it is the wild west and it is not regulated, that really is not the case, in my opinion. Obviously, people are transferring money into investment accounts, and it is monitored in many different ways including how it is backed, how it is secured and where the assets are held. It is not really the wild west, I would say, and I am sure the chair of the OSC, the executive director and the president would all love to have a comment on that. There is regulation, but we need more certainty because of the investment.

One example is Bitcoin mining, or miners in general, and how they are taxed by the CRA. Where is GST applied? Where is HST applied? When is the actual tax triggered? There is a dispute right now with the CRA as to where and when that occurs. This is what the member for Calgary Nose Hill is talking about. Let us have the framework of industry experts get around the table and say, “Hey, what the heck, are we charging HST every time we mine a Bitcoin?” That does not make any sense. This is not a service business. This is a mining company, just like Kinross Gold or somebody else. That is what we are talking about.

In regard to illicit activity, I am going to say right now that this is the last $20 bill I have. There is more crime done with twenties than will ever be done with cryptocurrency. What I will say is that the amount of crypto crime is decreasing. From 2020 to 2021, it decreased by almost 60%. Why is that? Only a stupid criminal would do a crime with crypto, because it is a public ledger and that wallet has an address.

There was a case where a couple defrauded billions. It was thousands of Bitcoin, and they held onto it for five years. The minute they tried to transfer that money in the fall of 2021, the FBI picked them both up and charged them. Only an idiot criminal, and there are some out there, would do it with this. They are going to go with cash or something else. They are not going to do it with that.

My colleague from Quebec made a comment. We are always getting to know each other, which is great. In Quebec, for example, there are a number of Shakepays. There are Shakepays in Montreal. I am sure some of my colleagues have heard of Shakepay before. Also, there is a Bitcoin mining company. There is about five or six. It is called Bitfarms. There is more than just Bitfarms, but Bitfarms is a $1-billion company traded on a public stock exchange. It went through all the regulatory burden to become publicly traded in la belle province.

I think it would be great if Bitfarms, Shakepay and a number of these Quebec-based companies reached out, did a little government relations, and explained to the government, not in an embarrassing way, but in an informative way, that this is a new industry of 13, 14 years, and explained that CRA income tax issue. That would be great.

To my good colleague from the NDP, who I had the honour of serving with on the industry committee, Bitfarms is 100% renewable energy from Hydro-Québec. It is green. By the way, there is a North American mining council whose mandate is to be a leader in renewable energy. There are great initiatives coming out of this. There are solar initiatives in the southern states, and wind initiatives. Some of the greatest innovation in green energy is actually going to come out of crypto. It is hard to believe, but it is true.

The best and brightest minds. When I was going to university, and that was quite a long time ago, people were learning how to chisel rocks. Now, the best and brightest minds are going into the crypto space. We want the best and brightest to graduate from these great universities and work in Canada. We do not want them to go to Silicon Valley.

In fact, the crypto space is not even in Silicon Valley, it is in Miami and Toronto. That is where we want people to be. The U.S., the UK and the European Union are all working through this process we are proposing here because they see the value in this one-time opportunity to be the world leader in this space. That is what we are trying to do here with this bill.

There is much to talk about. We are having executives from Bitbuy and WonderFi come to speak to us in a couple of weeks. They are going to explain the process they went through to be market-makers in Ontario. They would love to talk to all members of Parliament to explain how the process works and how the regulation works. We are not trying to slow things down.

Business wants certainty. This is how we are going to do it. As well, there is FINTRAC and know your client rules. These are money services businesses. They know what they are doing. They have to go through all these things to do it.

The last thing I will talk about quickly is remittances, as well as Bitcoin, the lightning network and Strike. Twenty-four percent of the GDP in El Salvador is in remittances. That is where somebody in Canada or the U.S. transfers money to a relative. Honduras, Haiti, Jamaica, there are all sorts of them, and they are all over 20%. They go to a money market and they get hosed. I am not against money markets, but I am just saying they get hosed. They can do this with Bitcoin, lightning and on the Strike network. It is that quick, and it costs nothing. That is making a difference.

Two million people in this country are unbanked. This industry is giving people a leg up. We have to make sure that all the technology is in Canada and the innovation is in Canada, so we not only make the lives of Canadians better, but subsequently, give opportunities and livelihoods to people who have never even had a bank account. It has been a real thrill to speak on this.

Encouraging Growth of the Cryptoasset Sector ActPrivate Members' Business

6:10 p.m.

Winnipeg North Manitoba

Liberal

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

Madam Speaker, as I stood up, someone heckled, “Explain Bitcoin.” I can tell members that as much as I would like to think that I have a fairly decent understanding of money supply and how that works, when it comes to cryptocurrency, there is a learning curve that is still required on my part to be able to articulate it in the fashion in which members opposite would like to hear.

However, I can tell members that it is something that is of great concern for all Canadians. The impact it is having in society, not only here in Canada but worldwide, is quite significant, and I think there is a keen interest from a number of stakeholders, whether governments, financial institutions, consumers or producers, in regard to what cryptocurrency is, how it continues to evolve and what impact it is going to have on modern-day society.

As has been pointed out by members on all sides of the House, there are probably more questions regarding the whole concept, which I understand has now been around for over a decade in one form or another, than there are actual answers, so I do believe that we need to see more work done on this particular file.

When I went to university, I had a very basic study of some economic policies, which I enjoyed, and one does get an appreciation of what money supply is. When the member opposite was waving a twenty-dollar bill from his seat as a prop or whatever one might want to call it, the cash that we see in our society is a fraction of the money supply. I think that what we have witnessed over the last many years is different forms of currency coming through in order to facilitate the purchasing and selling of product, whether it is a service or a widget. However, we all know, for example, that at one point in time it would have been through the barter system and, quite frankly, there is, to a certain degree, some people who participate in the barter system. I say that, because at the end of the day, much like currency, whether it is the Canadian or U.S. dollar, it is always going to be there in some form or another, and I feel fairly confident of that.

When we hear about cryptocurrency and the manner in which it is expanding, it is quite significant, and I will expand on that point when the debate comes up next.

Encouraging Growth of the Cryptoasset Sector ActPrivate Members' Business

6:15 p.m.

Liberal

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

The hon. member will have seven minutes to complete his speech.

The time provided for the consideration of Private Members' Business has now expired and the order is dropped to the bottom of the order of precedence on the Order Paper.

A motion to adjourn the House under Standing Order 38 deemed to have been moved.

Foreign AffairsAdjournment Proceedings

6:15 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Madam Speaker, I appreciate the opportunity to speak today about some of the challenges we have seen with donation matching programs launched by governments in response to crises around the world.

When there is some singular event causing massive destruction elsewhere in the world, one way that governments have provided assistance is through matching programs that match private donations up to a certain amount. I believe that, in general, matching programs are a very positive vehicle. They are a mechanism for encouraging private participation in humanitarian work and promoting the habit of private giving in general. Because matching programs are often time-limited, they can encourage individuals to make their donations in a timely way. These programs also reflect the important idea that governments and private actors can and should work together to advance international humanitarian objectives.

However, there is one significant problem with matching programs. The risk is that, by offering matching opportunities to some organizations and not others, the government uses its financial and rhetorical power to direct private donations in a particular direction. People naturally want to give to organizations that are beneficiaries of a matching program, so that their contributions will be effectively doubled. Promoting donations to these organizations in particular is part of the point of matching programs.

However, if people who might otherwise give to unmatched organizations instead choose to direct their donations to organizations that are the recipients of matching programs, these organizations who do not benefit from matching programs end up receiving less private money than they would otherwise.

The government is picking winners and losers among humanitarian and development organizations when they construct matching programs that apply to a certain narrow set of organizations and not to others. This perverse outcome is something that should be avoided. I believe that when it comes to matching programs, the government should always cast a very wide net. The government could, for instance, establish a policy of matching donations to all charitable organizations that are responding to a particular crisis.

In particular, it has seemed to be the tendency of government to launch matching programs with big, established multilateral humanitarian organizations with which the government has long-established relationships. This is the easy thing for government to do and it may also entail less of certain kinds of risks. As the saying goes, nobody ever got fired for buying IBM.

The problem is that there may be other good reasons to prefer matching programs with organizations other than big, well-known multilaterals. In many cases, smaller, local charities will have particular competencies and connections on the ground. The organizations best positioned to provide humanitarian relief in Lebanon may not be the same as the organizations best positioned to provide humanitarian relief in Ukraine.

The easy way out for government is simply to work with big organizations that have some capacity to operate everywhere, but matching donations to smaller, local outfits may actually have a greater, real impact. These organizations may also be leaner and more efficient.

A focus on large, multilaterals ignores the potential of uniquely Canadian-based and affiliated organizations, in some cases led by diaspora community members with particular connections abroad and in other cases simply Canadian organizations that are leveraging Canadian innovation and involvement. Imagine the experience of someone who starts a local Canadian not-for-profit organization, has a strong base of support here and suddenly finds that they are losing donations at a critical time because Canadians are instead choosing to donate to multilaterals that are benefiting from a matching program from their own government. This is not right and it is not fair.

Now I have also seen how government matching programs often miss Christian and other faith-based organizations that are doing good development work in the service of all. A secular government should be neutral on questions of religion, which means providing matching opportunities for faith-based and non-faith-based organizations alike. This would be a neutral position, but by avoiding faith-based organizations in the matching program, the government is not taking a neutral position.

My initial question was about matching in the case of Ukraine. Notably, in the case of Ukraine, Canadians have been extremely generous, donating far above the allotment for the matching program, and the level of generosity in this case means that the perverse outcomes of only matching donations to one organization may likely be less of a factor, but this is a larger policy issue that needs to be addressed by government and I hope it will be.

Foreign AffairsAdjournment Proceedings

6:20 p.m.

Ottawa West—Nepean Ontario

Liberal

Anita Vandenbeld LiberalParliamentary Secretary to the Minister of International Development

Madam Speaker, Canada is deeply concerned about the worsening humanitarian impact of Russia's unjustifiable invasion of Ukraine. We stand strong in our unwavering commitment to provide life-saving humanitarian assistance to those affected by the conflict.

Canada responds to complex humanitarian crises through an established international humanitarian response system, comprised of United Nations agencies, the Red Cross and Red Crescent Movement and experienced non-governmental organizations. This mainly involves providing financial assistance to help meet the urgent needs on the ground. The flexibility provided by monetary assistance is essential in complex, fluid operational environments like the one that we see in Ukraine, allowing humanitarian organizations to procure relief items and deploy key equipment and trained personnel quickly and efficiently through established and coordinated humanitarian networks.

To date, in 2022, Canada has committed $145 million to support the humanitarian response, which has been allocated to experienced UN, Red Cross and NGO humanitarian partners, many of which are working with local NGOs. This includes $100 million in response to the UN humanitarian flash appeal and the regional refugee response plan for Ukraine.

To really make the most of Canadians' generosity and these strong interpersonal connections between Ukraine and Canada, we launched a $10‑million matching fund in partnership with the Canadian Red Cross in February.

In recognition of the success of the matching fund, an additional $20 million was announced in March, increasing the total amount matched to $30 million. When humanitarian crises occur, such as the one we are witnessing in Ukraine, Canada's immediate priority is to get life-saving relief to the most vulnerable quickly, safely and securely in a manner responsive to the complex environment.

Canada is partnering with the CRC because the Red Cross movement had the earliest and best access to affected populations, as well as a proven ability to address the multisectoral needs of those affected by the conflict. As a global network of humanitarian organizations, the strength of the movement is its ability to quickly mobilize personnel, equipment and critical supplies directly through local societies to help people affected by emergencies all over the world. The Red Cross was on the ground in Ukraine prior to the escalation of this conflict and continues to work in close coordination with global and local actors to address critical needs.

The generosity of Canadians has been remarkable. We recognize and value the immense contribution of organizations such as the Ukrainian Canadian Congress and the Catholic Near East Welfare Association, which are working hard to support the humanitarian response in Ukraine and surrounding regions.

As the crisis unfolds, our government will continue to re-evaluate the best approaches and the best partners to meet evolving humanitarian needs.

Foreign AffairsAdjournment Proceedings

6:25 p.m.

Conservative

Garnett Genuis Conservative Sherwood Park—Fort Saskatchewan, AB

Madam Speaker, I thank the parliamentary secretary for her response. She did confirm the policy that I identified, and it is one that I think should be revisited. That is the policy of emphasizing partnerships with large multilaterals.

It is not that working with these organizations is unimportant, but including small Canadian diaspora-led organizations as well as larger Canadian diaspora-led organizations can be very effective as well. When we have matching programs, we should be careful that we are not directing away from those organizations toward a small set of chosen partners.

I would quibble a bit. The parliamentary secretary talked about how the benefits of these large multilaterals are that they move quickly and that they can work with organizations that are local on the ground. I would say that working directly with organizations that have already established local partnerships can often allow for a quicker response, and fewer resources are lost in the process of transferring them to the multilaterals and then to those small organizations.

I know this is not something that can be changed on the fly, but I would encourage the government to look at this issue.

Foreign AffairsAdjournment Proceedings

6:25 p.m.

Liberal

Anita Vandenbeld Liberal Ottawa West—Nepean, ON

Madam Speaker, I would say to my hon. colleague that it is not either/or, and certainly we are constantly re-evaluating.

Since the onset of the crisis in 2014, Canada has supported the humanitarian response in Ukraine with over $194 million in humanitarian assistance through experienced humanitarian partners. Their unparalleled access to affected populations and their ability to provide neutral, impartial emergency assistance quickly and efficiently are paramount at this time.

The matching fund was established to support the generosity of Canadians. With the urgency to respond efficiently, we are working with experienced humanitarian partners and using supply pipelines that are already established.

As long as the Ukrainian people are grappling with the challenges of this emergency situation, we are committed to ensuring those humanitarian needs are met.

The EconomyAdjournment Proceedings

6:25 p.m.

Conservative

Michael Barrett Conservative Leeds—Grenville—Thousand Islands and Rideau Lakes, ON

Madam Speaker, it is a pleasure to rise this evening as we are nearing budget day.

Canadians who have been recently asked have listed their priorities for the government, and I hope all government members here this evening are listening very attentively as we prepare for this budget.

Ipsos did some polling of Canadians and listed the top three priorities of Canadians. In this poll, 53% of Canadians ranked “help with the soaring cost of everyday needs due to inflation” as a priority, so this is obviously a huge issue. We have seen it in all parts of our economy. Housing inflation is a very big one, with the price of homes in Canada having doubled in recent years under the government's time in office. The average Canadian home clocking in at over $800,000 puts it well out of reach, and even those below the average are out of reach for people looking to enter the market for the first time.

We also know that Canadian households will face an average of an increase of $1,000 more in groceries this year, which is going to put an incredible stress on families when an absolute majority of Canadians, more than 50%, are already within $200 of not being able to meet their financial commitments. They are within $200 of insolvency. As well, a third of Canadians are currently meeting the definition of being insolvent right now.

The second priority, listed by 45% of respondents, is “lowering taxes”. This would ease some of the pressures Canadians are facing. We know that the price at the pumps has gone up, which is making things incredibly difficult for Canadians, particularly those in rural areas. We saw the price at the pumps go up again on April 1. Global instability doing what it does is very much outside the control of our government here domestically, but the tax increase it implemented on April 1 was directly under its control. People cannot afford to get to work, get to medical appointments or take their children to recreational activities. This is within the government's purview, and it could do something that would be very responsive to the needs of Canadians.

Next, 40% of Canadians ranked “greater investments in health care” as a top priority. Over the course of the pandemic, which put incredible stress on our health care system, we saw the government refuse to meet with the provinces to give them stability and predictability with respect to health care funding, which is of course incumbent on the government.

What Canadians are looking for and what this boils down to is that Canadians want a government that is going to be prudent. It is time to respect the tax dollar. It is time to respect Canadians, give them a break, give us a break from inflation, give us a break from housing inflation and help Canadians keep a little more money in their pockets so they can afford to heat their homes, feed their families, save for the future and maybe one day buy a home of their own.

The EconomyAdjournment Proceedings

6:30 p.m.

Burnaby North—Seymour B.C.

Liberal

Terry Beech LiberalParliamentary Secretary to the Deputy Prime Minister and Minister of Finance

Madam Speaker, I am very happy to have this opportunity to address our government's fiscal position, as well as the many ways that we are improving affordability for Canadians.

In 2015, we promised to invest in the future of Canada by incurring small deficits while targeting investments in economic growth. In our first four years we made significant investments in housing, transportation and indigenous reconciliation. We grew the economy while reducing poverty and unemployment to all-time historic lows. We lifted 1.3 million Canadians out of poverty and began to tackle climate change in a serious and meaningful way. We grew the size of the economy while reducing our debt-to-GDP ratio every single year.

This was an enviable financial position and was built on fiscal prudence. This position would allow us to invest further in the growth of our nation or prepare us for economic shocks that may come in the future. While we could not foresee a global pandemic or a war in Europe, when it comes to the finances of the country Canadians can rest assured that our net debt-to-GDP is the lowest in the G7 and we have improved our relative position over the course of the pandemic. We have seen strong economic growth and have recovered 112% of the jobs lost during this health crisis.

Canada remains committed to our strong fiscal anchors that were first articulated when we formed government and reiterated in the 2021 budget. This means we expect to continue to reduce our debt-to-GDP ratio while unwinding the COVID‑19-related deficits. While it is true that the cost of the pandemic was significant, it was more than reasonable that the federal government use our strong fiscal position to take on this burden. We did this so small businesses, Canadian workers and family household budgets did not have to. While Conservatives may see these investments as frivolous or unnecessary, I would expect the nine million Canadians who were able to feed their families, or the 450,000 employers who were able to employ 5.3 million Canadians, would disagree with that position.

Our government is also focused on targeted measures here at home to help Canadians make ends meet. This includes lowering taxes for the middle class, $10-a-day child care and a more generous OAS and GIS for seniors. All of these programs were not supported by the Conservatives, including increased investments in health care.

I am pleased to say this plan is working. Canada has exceeded its goal of creating a million jobs, well ahead of expectations, and we have seen the strongest job recovery in the G7 alongside the lowest net debt.

Our government's focus will continue to be on jobs and growth and making life more affordable. These are priorities that will form the foundation of our upcoming budget, as well as our commitment to continue to be a responsible and careful fiscal manager.

The EconomyAdjournment Proceedings

6:35 p.m.

Conservative

Michael Barrett Conservative Leeds—Grenville—Thousand Islands and Rideau Lakes, ON

Madam Speaker, when Canadians hear the government say things like they should not worry because the net debt-to-GDP ratio is great in response to the concerns they have, such as having to choose between heating their home because the price of natural gas has gone up so high or feeding their family because the price of groceries have gone up so quickly and so much, it is really tough for them to feed their family on that word salad. Those global comparators do not do anything to address the individual concerns and the harsh realities those Canadian families are facing.

When the government says that it took on debt so Canadians did not need to, who is responsible for paying that money back? That money does not belong to members in this place or the government. It is collected from Canadians and borrowed in the name of future generations of Canadians who are going to have to service the debt and some day that bill will come due. That is the government's job.

The EconomyAdjournment Proceedings

6:35 p.m.

Liberal

Terry Beech Liberal Burnaby North—Seymour, BC

Madam Speaker, we understand all too well that Canadians are being impacted by high inflation. However, these price increases are global and Canada's rate is still lower than the United States or the average of the OECD, the G7 or even the G20. Understanding this fact, our government will continue to move forward with measures to help Canadians make ends meet while also remaining fiscally responsible. I hope the Conservatives will start to support some of those measures that help make life more affordable for Canadians.

I would like to conclude by making something very clear. The federal budget that will be tabled later this week will demonstrate how our government intends to continue building a stronger and more resilient economy, one that generates shared prosperity for all Canadians while maintaining our country's low debt advantage, long-term fiscal sustainability and strong credit rating, all while making life more affordable for Canadians.

Disaster AssistanceAdjournment Proceedings

6:35 p.m.

Conservative

Brad Vis Conservative Mission—Matsqui—Fraser Canyon, BC

Madam Speaker, time and time again I have risen in the House to bring to the government's attention the flooding and wildfire disasters in my riding and the horrific impacts they have had on my communities. I would be remiss if I did not mention that this is budget week and the window of opportunity to receive funds to help repair many of the damages that British Columbians have suffered is quickly closing.

In October 2021, I met with the City of Abbotsford along with other members of Parliament to discuss the city's request to the provincial and federal governments for dike infrastructure upgrades. During that meeting, we talked about the record of the City of Abbotsford, which has been making these requests for many years, and even the fact that the member for Langley—Aldergrove, the member for Abbotsford and I were in a meeting with the mayor just a few weeks prior, before the floods happened, talking about the need for the federal government to work with the province and the municipality to address these major infrastructure gaps.

When the first request was put in about a decade ago, at the time, estimated upgrades for the dikes would cost approximately $500 million. Fast-forward to a few months ago, and the cost to upgrade flood mitigation infrastructure has skyrocketed. The City of Abbotsford put forward four options to mitigate the threat of the Nooksack River overflowing its banks again. The options ranged in cost from $209 million, which would restore us to the previous standard and offers little protection, to a whopping $2.8 billion, which would provide protection for Matsqui, Sumas and Clayburn Village well into the future.

Clearly, what happened in my riding and across B.C. was a costly lesson to learn. Hesitation on the part of both provincial and federal governments of Liberal and Conservative stripes to get funding out the door cost our communities a heavy price, and the bill to build back continues to grow. We cannot afford any further delays in building flood mitigation infrastructure moving forward.

We know there is going to be another flood. We know that we are going to face another disaster. It might be in 10, 15 or even 30 years, but right now the mind of Canada, as we have the government's attention, is on British Columbia. We have an opportunity to do something that is going to keep people safe for many decades to come.

In the last number of weeks, I have probably stood more often on this issue than on any other I have spoken about. The Emergency Planning Secretariat, a local organization for 31 first nations, is calling for some of this work to be done. The Letse'mot community forum that I am part of, which means “one heart” in the Halq'eméylem language, has put forward many requests. I have also met with numerous indigenous bands in my riding: Sq'éwlets, Siska, Spuzzum, Shackan and Lytton First Nation. They are all calling on the federal government to improve emergency responses on indigenous lands.

Now is the time to act. Now is the time to protect British Columbia. Now is the time for the government, in the budget on Thursday, to put forward the taxpayer funds to protect British Columbia. I am pleading with the government to give more than $5 billion. Just Abbotsford alone will cover half of that, and we have not even talked about Merritt and other small communities in the Fraser Canyon that cannot afford to pay for the infrastructure upgrades that are required. Taxpayer dollars are needed. I plead with the government to put them in the budget in the next couple of days.

Disaster AssistanceAdjournment Proceedings

6:40 p.m.

Winnipeg North Manitoba

Liberal

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

Madam Speaker, the Government of Canada has been there from the very beginning, and we will continue to be there to support the people of British Columbia. While I am sure the member will understand that I am not able to discuss what is in the budget before it is actually presented, our government has been there for the people of British Columbia since day one to help them through the response and into what is now the recovery.

The impact of November's flooding and landslides on British Columbians was enormous. Residents across the Lower Mainland saw their homes, farms and businesses devastated. Thousands were displaced from their communities. When the province turned to us for help at the height of the emergency, our government responded. At its peak, just over 750 Canadian Armed Forces personnel were on the ground supporting evacuations, assisting with logistics and protecting critical infrastructure. Nine aircraft supported the evacuation of 330 people.

The same month, the Prime Minister and the Minister of Emergency Preparedness travelled to B.C. While there, the Prime Minister announced the creation of a new joint committee between the federal and provincial governments to guide immediate and ongoing support. Through this committee, our government continues to work together with our B.C. counterparts and with indigenous leadership to ensure a coordinated recovery and a build-back effort.

Our government also matched every dollar Canadians donated to the Red Cross response. With the province doing the same, every dollar Canadians gave turned into three for British Columbians. Over $90 million in total was raised and, as of February, more than $18 million had gone to over 7,400 families. We do not have the final estimates of the costs from this event yet, but we know it will be significant. The Insurance Bureau of Canada has estimated that the insurance damage alone was in the range of $515 million.

Public Safety Canada officials are currently working closely with their provincial counterparts, on the request from the province. Through the Disaster Financial Assistance Arrangements, provinces access federal cost-sharing for the response to and recovery from exactly these types of events.

As we move forward on this request, our government has already set aside $5 billion in the 2021 fall economic statement for its share, as well as to assist with other costs related to the recent extreme weather events in British Columbia, such as the Lytton wildfire. This allocation is a historic contribution that reflects the extreme nature of this particular disaster.

Unfortunately, we also know that, thanks to the impacts of climate change, the kind of extreme weather events we saw last year are only going to become more frequent and severe. That is why building resilience to weather-related disasters continues to be a priority for our government. We are already engaged in the work that demonstrates our commitment. For example, under the national disaster mitigation program, the Government of Canada has contributed almost $28.5 million for 117 projects across British Columbia. We are working to increase forest resilience to wildfires, including by training 1,000 new community-based firefighters, investing in equipment and in other measures to reduce risks from wildfires, and supporting fire management by indigenous communities.

We are also working to create a new low-cost national flood insurance program to protect homeowners at high risk of flooding and without adequate insurance protection, as well as to develop a national action plan to assist homeowners with potential relocation for those at highest risk of repeat flooding.

We know there is much more work to do, not just for British Columbians, but to protect all Canadians from the increasing risks of climate-related disasters. I can reassure my colleague that our government is committed to the undertaking of—

Disaster AssistanceAdjournment Proceedings

6:45 p.m.

Liberal

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

The hon. member for Mission—Matsqui—Fraser Canyon.

Disaster AssistanceAdjournment Proceedings

6:45 p.m.

Conservative

Brad Vis Conservative Mission—Matsqui—Fraser Canyon, BC

Madam Speaker, I thank my colleague from Winnipeg for that summation and congratulate the public servant who wrote that. It was a job well done. It was a good summary.

I have a couple of other points to quickly raise. The Duffy Lake Road was on the national news a lot when the disasters were taking place. Four people died on the Duffy Lake Road, largely due to mudslides. Much of that highway, which is very popular for tourists and British Columbians alike going into the back country, does not have cellphone reception even though it is a major arterial road and was the main conduit from the Okanagan into the Lower Mainland when many other roads such as Highway No. 1 were washed out.

I am pleading with the government to consider putting cellphone towers up as an immediate measure to keep people safe on the Duffy and to have adequate cellphone coverage. Equally, this remains an issue in other areas of my riding, such as parts of Highway 12 and other sections of—

Disaster AssistanceAdjournment Proceedings

6:45 p.m.

Liberal

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

The hon. parliamentary secretary.

Disaster AssistanceAdjournment Proceedings

6:45 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Madam Speaker, as I previously mentioned, officials are fully engaged on a request for financial support under the disaster financial assistance arrangements from the province. I would like to inform the hon. member that through the DFAA, British Columbia has received over $860 million in federal contributions for 42 separate events that have occurred in the province since 1970. Our thoughts continue to be with those affected by the tragic events in British Columbia and with everyone involved in the recovery and reconstruction.

Yes, the bureaucrats and public servants do a fantastic job, whether it is on the ground in British Columbia or here in Ottawa, ensuring we provide, as much as possible, the type of information Canadians would like to hear.

Disaster AssistanceAdjournment Proceedings

6:45 p.m.

Liberal

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

The motion to adjourn the House is now to deemed to have been adopted. Accordingly, the House stands adjourned until tomorrow at 2 p.m., pursuant to Standing Order 24(1).

(The House adjourned at 6:47 p.m.)