Madam Speaker, let me start by saying I will share my time this afternoon with my hon. colleague from Kingston and the Islands.
I think questions about affordability are good questions. I think most MPs here understand the reality of this problem in Canada and around the world. I am delighted to have the opportunity to engage in a debate about policies that can help Canadians. I will talk about this problem in general terms while also addressing the specific points in the opposition motion.
First, I think it is important to recognize that there are several reasons for the inflation we are seeing in Canada and around the world, because inflation is a global problem. According to Statistics Canada, the country's inflation rate was 6.8% in April. I just want to point out that many other countries are in the same situation as us or even worse off. For example, in Germany, inflation is at 7.9%. In the eurozone in general, it is 8.1%. In the United States, it is 8.3%. In Spain, it is 8.7%. In the United Kingdom, it is 9%.
I absolutely understand that inflation is a problem in Canada. My point is not to minimize its impact on Canadians, since all Canadians and all parliamentarians understand that it is a problem for everyone in the world. What is causing this phenomenon? There is no single reason for the situation we are in right now. There are several causes.
The primary reason for inflation is of course the supply chain. That is a fact. During the pandemic, there were a lot of problems with the workforce and with the supply chain because of obstacles created by the health restrictions put in place to protect our collective health.
Another reason for inflation is the labour shortage. According to Statistics Canada, during the last quarter of 2021, there were roughly one million job vacancies. This is a reality in every western country because of the demographic situation resulting from the current or imminent retirement of baby boomers.
A third reason is the war in Ukraine, about which I asked my hon. colleague from Beauce a question just before my speech. The situation on the ground is terrible. The Russians are targeting infrastructure that is crucial for both the Ukrainians and the world. Yesterday we listened to testimony from Yulia Klymenko, a Ukrainian member of parliament, on how Russian soldiers are targeting bridges, factories and grain storage facilities. This is also part of the problem.
I objectively recognize that another partial reason for inflation is of course the money spent by governments around the world at the height of the pandemic, along with certain restrictions imposed for the sake of protecting our collective health.
I could go on at great length about the initiatives that this government has taken on since 2015 in relation to affordability. I am proud of that record. I am happy to quickly highlight some of them, but I do want to get to the text of the motion so that we can debate what is before us today.
The first thing this government did, I was not a part of. My honourable predecessor Scott Brison was in the House when the first thing the government did was lower income taxes for lower- and middle-income Canadians and raise them for higher-income Canadians.
On child care, we were the government that has and will continue to deliver national child care. This is something that has been talked about at great length. We have already seen a 25% reduction, on average, of fees in my home province of Nova Scotia. Those are concrete measures that we have taken forward.
I am a rural member of Parliament. We know the importance of supporting seniors. That is exactly why our government brought the old age security age for when someone will be eligible down from 67, to which the Conservatives proposed to raise it. We brought it back down to 65. We have also increased old age security by 10% for those who are 75 and older, and we have strengthened the guaranteed income supplement. The results have been telling. Nearly a million seniors were lifted out of poverty. That is under our watch, and they are affordability measures that matter.
We have heard a lot about the Canada child benefit. We reformed a program that had previously targeted higher-income earners. I have heard, on the doorsteps, the difference that makes in the lives of vulnerable families and single mothers, and I think it is something that should be celebrated.
I want to highlight a couple solutions I think would be important as a member of Parliament. I know the government is seized with the question, as many governments around the world are, on inflation.
I want to talk about the GST on gasoline and diesel. I asked the member for Thornhill about this. I do not mind the measure. I just do not think it is targeted enough. When I go to fill up at the pumps, I am noticing it. It is up over $100 right now. That is largely tied to the global market, but I am very privileged and fortunate. Every member of Parliament has a basic indemnity here that is higher than the average Canadian salary. I personally do not think that those types of measures, which could help support affordability, should be targeted to high-income Canadians.
I think we also have to be mindful of the fiscal framework. I love to see some of my Conservative colleagues talk about the government having to do something and that it has to be there to support vulnerable Canadians, but we cannot throw the fiscal framework out with the bath water. That is something I believe in and we have to be measured and responsible in terms of how we use public funds in the days ahead, not just give benefits to Canadians who really do not need them, objectively.
Looking at considering removing or expanding the programs that exist right now that reduce or eliminate GST on home heating fuels for low-income Canadians is also a really good idea. At the end of the day, as a rural member of Parliament, rural Canadians are more vulnerable to some of the costs around home heating. Many rural Canadians have not been able to make the same transition to the types of home heating systems where fossil fuel is not used. As an example, in Nova Scotia, nearly 50% of residents still use home heating oil. That is going to be a challenge as we head back to the winter of 2023, and I think something targeted in this domain would be beneficial.
Last would be the grocery code of conduct. This is something that is extremely beneficial to be looking at for food affordability.
I have already touched on (a) of the Conservative motion.
On carbon pricing, this is in place to try to help incentivize to reduce emissions. It is inherently a Conservative principle. I have chatted with some of my Conservative colleagues about why they do not like a market-based system that actually allows consumers to be able to make choices. I take notice that in certain provinces, because they have not stepped up with their own program, the federal backstop is sometimes clunky, but I do think this is something that needs to stay.
On fertilizer, I asked my hon. colleague from Beauce about this. I think the tariff should stay. The government should be looking at ways to indemnify farmers and certainly that tariff has to stay to dissuade the importation of Russian fertilizer.
On the mandates, I think, certainly, in a domestic sense, the government should continue to be looking at making adjustments for domestic travel.
I will finish on that and take questions.