House of Commons Hansard #83 of the 44th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was inflation.

Topics

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:35 p.m.

Conservative

John Barlow Conservative Foothills, AB

Madam Speaker, they were going to find those new resources only because of the tariff put on Russian fertilizer by the Liberal government. Again, we are not arguing that there should not be sanctions on Russia, but they should be sanctions that actually impact Russia and its economy. This tariff is only punishing Canadian farmers. If we have realized anything through COVID, it is that we must diversify our trade agreements and be much more self-sufficient.

The tariff that the Liberals put on Russian fertilizer is the only reason farmers are paying higher costs. I might add too that the Deputy Prime Minister and Minister of Finance did not even realize that Canada purchased fertilizer from Russia before putting on that tariff.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:35 p.m.

Bloc

Andréanne Larouche Bloc Shefford, QC

Madam Speaker, I thank my colleague, who spoke at length about agriculture, which is near and dear to my heart because there are a lot of farmers in my riding of Shefford.

The Bloc agrees with the Conservatives on the fertilizer issue. However, I would like to talk to my colleague about drought, which is causing problems for a lot of farmers. Climate change is a crucial issue. My colleague talked about the importance of eating properly. If we are to achieve true food sovereignty, we need to work on farming here. To protect that, we also need to tackle climate change.

Farmers are also asking for support as they try to go green. It is important to encourage that for a lot of our farmers. The tax is not what matters to them. They want us to work on climate change and reward good green practices.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:35 p.m.

Conservative

John Barlow Conservative Foothills, AB

Madam Speaker, I agree, but I think the part that we are missing here is that there is an assumption that Canadian producers are not doing everything they can to protect their land, their water, their soil and their livestock. They want to be as efficient as possible, because that is how they remain environmentally sustainable and socially sustainable, but the one critical point is to remain economically sustainable.

Yes, our farmers are always concerned about being stewards of their land. They are the ones who are on the ground. I appreciate that this is an important message as well.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:35 p.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Madam Speaker, one thing we do agree on is that we need to provide relief to Canadians from skyrocketing inflation. We agree on that, but how we get there has been challenging. We have seen skyrocketing oil prices and we have seen bank fees go up and we have seen grocery costs go up. We have seen record profits for big corporations , including oil companies, grocery companies and banks. Conservatives do not believe that they should be paying their fair share of taxes, more taxes, and giving that back to Canadians through doubling the GST or the child tax benefit.

My concern is that my colleague's proposal could still lead to skyrocketing oil prices. That does not preclude the oil companies from raising their prices. Does he believe that they should be paying more taxes and contributing more to Canadians, given the fact that they are making record profits right now?

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:35 p.m.

Conservative

John Barlow Conservative Foothills, AB

Madam Speaker, I really do appreciate the NDP dance on this issue. With their proposals to increase the carbon tax because it is not doing enough and needs to be higher, they should be celebrating really high gas prices, but now they are trying to dance around it because now the politics are against them. Canadians have to pay more than $2 a litre, likely in his riding, and they have to figure it out. Maybe they do not really support really high gas prices, the climate change and the carbon tax and whatnot.

They have to make a decision here: Either they want to tax Canadians to the point of unaffordability in a crisis or they do not. Our position is to give Canadians a break as quickly as possible, get rid of the middleman, which is big government, and give Canadians a break in their pocketbooks.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:40 p.m.

Conservative

Adam Chambers Conservative Simcoe North, ON

Madam Speaker, it is a pleasure to rise in this chamber to talk about the Conservative opposition day motion on a very important issue affecting Canadians: affordability and the cost of living.

Before I talk about the motion, I would just like to set some context for individuals who are here. Food prices have increased 9.7%; in many cases fuel is up, depending on what time it is measured, almost 65% to 70%; in some cases diesel has doubled in about 12 months; and retail prices, the prices paid for clothing and other goods, are also significantly higher.

It is also important to recognize that we were on an incredibly high trajectory of inflation before the war in Ukraine started. Inflation was at a 25-year high of 5.5% in February, before the Russian Federation's invasion in Ukraine. To suggest that it is all explained by the war misses the point that we were on a quite high inflation trajectory before that war started.

For full disclosure, I will concede to the members across the way that there are multiple reasons for inflation. Of course there are supply chain issues and of course there is the war. However, there are also serious structural issues that are leading to inflation. By its definition, a consumption tax is inflationary. The Bank of Canada even says this. At least half a percentage point of inflation can be attributed to the carbon tax, according to the Bank of Canada.

The challenge that I have, or perhaps some of the members on this side of the House have, is that every time questions about inflation or costs of living or affordability have been raised, they are waved away and explained away by referring to these external factors that are out of the government's control. I do not believe that to be true. Yes, there are things that are outside of the government's control, and I just mentioned a few of them, but there are simple things that the government could do to provide immediate relief to Canadians.

The challenge is about not acknowledging that inflation is perhaps not transitory. If we take a long enough view, everything is transitory. Even life is transitory, if we take a long enough view. The challenge is that the facts are changing on the ground. The government is now out of step with the rest of the world because it has yet to acknowledge the challenge of inflation and the tools that it has to deal with it.

In fact, just last week President Biden wrote an op-ed to the American people. In it he vowed to take action on inflation immediately and provided a three-point plan on how the federal government in the United States was going to deal with it, acknowledging that of course the central banks have a role to play.

Secretary Yellen said last week in an interview that she was wrong about inflation, that inflation was persisting longer than they had thought. We have also heard this from the Federal Reserve chair in the U.S. We have also heard it from Bank of Canada officials, who admitted that they had all underestimated inflation, but we have not heard it from the Liberal government. The government refuses to even acknowledge that it might be behind the curve.

I think Canadians would appreciate a little bit of humility in hearing, “Look, we were a little slow on the inflation front, but we have tools that we can use to combat inflation.” The question I have every day is this: How long does inflation need to persist or how high does inflation need to get before the government realizes that it must act?

We have put forward an opposition day motion, which I think some would even call an omnibus motion, with some interesting ideas. In the interest of constructive discussion in this House, there may be some ideas that individuals feel strongly opposed to, but they are ideas. The government could feel free to take any of these ideas it might like and act on them. We do not need to pass this entire motion. It does not sound as if we will have support from some other parties, but certainly there are some reasonable ideas. I would like to highlight a couple that speak to me.

With respect to suspending the GST on fuel, both regular gasoline and diesel, the price for diesel has doubled in 12 to 16 months. That also means that the HST the government receives on diesel has doubled. The revenue the government is making has doubled because the price has doubled, and it is applied right before people pay the final price. In fact, the government has never made as much money as it is making right now. That is why I have significant concerns about the idea that the answer to inflation is for the government to tax companies more so it can take that money and do something with it. The government does not need that money. It has never made as much money as it is making right now.

If we consider the budget of 2021 and what we believe the government will be making in revenues over the next five years and compare it to budget 2022 and the revenue it is going to be receiving now, it has found an extra $170 billion. The question is this: What is it doing with it? Why is it not returning that money to Canadians? It is coming from Canadians in the first place.

I think we have to be a little more realistic and pragmatic, because increasing taxes on companies is not going to all of a sudden solve our inflation problem. We have a bunch of extra revenue now and we still have inflation, so making the government bigger is not the answer to our worries.

The hon. colleague from Foothills talked about fertilizer, and because of the significant farming community in Simcoe North, I will mention it just for a moment.

I have phone calls every day, and I visit farms to talk to farmers in my riding. They are all saying they want to help Ukraine and do their part and that they do not mind paying a fertilizer tariff on fertilizer that is purchased after March 2. However, they prepaid for fertilizer in December and are still being hit with this tariff. The government did not even understand the impacts of that tariff before it brought it in, nor did it have very clear and defined rules, which shows a lack of understanding or an unwillingness to understand the farming community.

There is an element of this motion that talks about money laundering. Some members will wonder why we are talking about money laundering and will think it is incredible to be talking about money laundering when it is such a long-term problem. Well, the best time to plant a tree, if not yesterday, is today. The Cullen commission is coming out with an 1,800-page report, which I hope becomes public very soon, about the challenges of money laundering in British Columbia, but it is going to expose a significant challenge nationally that we must take head-on. We have to understand the impact of money laundering, especially on our real estate sector, because it distorts our real estate markets.

In Orillia, which is in Simcoe North, we have seen a 300% increase in the price of housing in six years. That is unsustainable. I believe some of that is due to the distorting effects of money laundering in our big cities, because people are now moving out and looking at other places.

It is in this context that I think most of the ideas in our motion are quite reasonable. We may not expect the motion to pass, but I hope we have a great debate and I would welcome the government to take any of these ideas as its own.

In closing, I will make a brief comment about leadership. True leadership is recognizing that perhaps one's original plan needs to change when the facts on the ground change. True leadership is showing a level of humility by acknowledging that humans can sometimes get things wrong. There are some interesting examples from the previous government, but I will only mention three: It decided to change its mind and tax income trusts in the face of different facts changing on the ground; it reversed its decision on interest income deductibility; and when the global financial crisis hit, it reversed its ideological position on running deficits and saved Canada from significant financial ruin.

I am thankful to have been afforded this opportunity today.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

Kingston and the Islands Ontario

Liberal

Mark Gerretsen LiberalParliamentary Secretary to the Leader of the Government in the House of Commons (Senate)

Madam Speaker, I thank the member for his intervention today, although I am not exactly sure where he was getting his information from. The government has certainly pointed towards the war in Ukraine as something to explain the global increase in the price of oil, and of gas more specifically.

However, as it relates to inflation, I think it is fair to say, and I would certainly say, that there have been a whole host of things over the last two years that have played into that. I am willing to accept that, and I am willing to state that. Would the member also be willing to state the fact that inflation is not a problem that is unique to Canada? As a matter of fact, in looking at all the developed countries, we see that Canada is among those at the bottom end in terms of the rate of inflation that we have seen over the last year or so.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

Conservative

Adam Chambers Conservative Simcoe North, ON

Madam Speaker, I welcome the question from the member across the aisle. I will make two quick points. One is that inflation is measured differently in all of these different countries, so it is very hard to compare them. Yes, inflation is a challenge in all of these other countries, but—

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

There are side conversations going on across the way, and I do not think that is very respectful. The hon. parliamentary secretary had time to ask a question, and he should not be engaging with other members as well while someone is trying to answer the question.

The hon. member for Simcoe North.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

Conservative

Adam Chambers Conservative Simcoe North, ON

Madam Speaker, yes, inflation is a global problem, but guess what? All of the countries where inflation is a problem are countries that did the exact same economic, monetary and fiscal policy expansion that we have seen, and that is why there is an inflation problem.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

Some hon. members

Oh, oh!

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

Order. Again, it is not time to respond until I actually acknowledge individuals.

Questions and comments, the hon. member for Berthier—Maskinongé.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

Bloc

Yves Perron Bloc Berthier—Maskinongé, QC

Madam Speaker, I would like to thank the member for his intervention. My question will be a very simple one.

Do you not think that you would have been more successful had you presented something more specific instead of lumping everything all together?

There are a lot of things on which we agree, but we cannot vote in favour of all aspects of the motion.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

I would like to remind the hon. member to address his comments through the Chair, and not directly to the member.

The hon. member for Simcoe North.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

Conservative

Adam Chambers Conservative Simcoe North, ON

Madam Speaker, I thank my friend for his question.

I appreciate the suggestion. I think we would welcome the hon. member's suggestion on the items that the Bloc Québécois and this member do support. Maybe we could find some common ground to advance some initiatives for the next opposition day motion. Let us call this a good first step on putting some ideas forward that we can all perhaps get behind.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

NDP

Lori Idlout NDP Nunavut, NU

Uqaqtittiji, Suncor reported net profits of over $4 billion. It distributed $3.9 billion to its shareholders. The motion before us seems to indicate that the Conservative Party is acting as a gatekeeper for such corporations.

I would like to ask the member why his party thinks that cutting taxes at the pumps will stop big oil and gas from simply raising gas prices.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:50 p.m.

Conservative

Adam Chambers Conservative Simcoe North, ON

Madam Speaker, perhaps this will expose a slight difference in approach between the Conservatives and the NDP on this issue. We believe that cutting taxes at the pump by the government will reduce prices for consumers, as evidenced by some actions by provincial governments, including the Government of Alberta and the soon-to-be Government of Ontario.

I do not believe that increasing taxes on companies and giving the federal government more money is going to solve our inflation crisis. I would just point out that when companies pay dividends, most of those dividends go to Canadians, pensioners and elderly individuals who are living on a fixed income, so companies that are making money and paying dividends happen to be a very good thing for Canadians.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:55 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

Resuming debate, the hon. Parliamentary Secretary to the Minister of Agriculture and Agri-Food.

However, I would like to inform him that I will have to interrupt him and that he will be able to continue his speech later this afternoon.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:55 p.m.

Glengarry—Prescott—Russell Ontario

Liberal

Francis Drouin LiberalParliamentary Secretary to the Minister of Agriculture and Agri-Food

Madam Speaker, I will be sharing my time with the member for Scarborough—Guildwood.

We are speaking today on the opposition motion, and the first point of the motion is that “high inflation rates are driving the cost of living up for all Canadians”. Well, of course, that is what inflation is. However, I would argue that it is driving up the cost for everyone living across the world, and I want to put this into context. Let us look at the Czech Republic. What is its rate of inflation? It is 14.2%. Let us see what Poland's rate of inflation is—

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:55 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

I am sorry. There are more cross-discussions happening. I would ask those members to maybe step out to have those conversations, in order to be respectful. There are individuals in the galleries who would like to hear what is going on and individuals at home as well.

The hon. parliamentary secretary.

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

1:55 p.m.

Liberal

Francis Drouin Liberal Glengarry—Prescott—Russell, ON

Madam Speaker, I am glad to reiterate what the rates of inflation are for different countries across the world.

The Czech Republic is dealing with a rate of inflation of 14.2%. Poland is dealing with a rate of inflation of 13.9%. Romania is dealing with a rate of inflation of 13.8%. Greece is dealing with a rate of inflation of 10.2%. The Netherlands is dealing with a rate of inflation of 9.6%. Hungary is dealing with a rate of inflation of 9.5%. The United Kingdom is dealing with a rate of inflation of 9%.

Belgium has an inflation rate of 9% as well. Germany has an inflation rate of 8.7%. The United States has an inflation rate of 8.3%. Portugal has an inflation rate of 8%.

Austria is dealing with a rate of inflation of 7.9%. Italy is dealing with a rate of inflation of 6.9%. Finally, Canada is dealing with a rate of inflation of 6.8%.

This is a world problem. Obviously, we are all suffering the consequences of the illegal war of Vladimir Putin in Ukraine, but that particular motion does not offer many solutions.

Let us talk about the fertilizer prices: “eliminating tariffs on fertilizer”. The hon. members offer that as a simple solution that will cause a great relief for all farmers. Do they not realize that fertilizer went up by 70% to 100% before the Ukraine war? Yes, now there is a 35% tariff on fertilizer, but do they not realize that there are Canadian companies that realigned their supply chains to ensure that they are not going to be penalized by that 35% tariff? Yes, they are paying higher prices, but I believe we should be advocating for a solution that offers all farmers a reduction on prices, not just those who have paid that 35%.

Obviously, for next year, the point of a tariff is for Canadian companies to stop dealing with the Russian government and Russian companies. We heard loud and clear from a Ukrainian MP yesterday that Canada should be doing everything to stop doing business with Russia. I believe that question was asked by the member for Beauce, who heard it loud and clear from that Ukrainian MP, and I thank her for her testimony at the agriculture committee.

The motion talks about the solution to address housing affordability being, let me get this straight, to launch a public inquiry. I just do not understand how that is going to provide immediate relief to Canadians. I am surprised that this actually came from the Conservatives, because the Conservatives are usually about smaller government. Now they are proposing a bureaucracy to look into how we could make sure that housing affordability is available through a public inquiry. Come on—

Opposition Motion—Measures for Immediate Financial ReliefBusiness of SupplyGovernment Orders

2 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

Unfortunately, we have to go to Statements by Members. The hon. member will have six minutes when he continues his speech in the House.

I would ask members who are coming in to please keep it down a bit, because parliamentarians are going to be making their statements.

IslamophobiaStatements by Members

2 p.m.

Green

Mike Morrice Green Kitchener Centre, ON

Madam Speaker, they were going for a walk: Salman, Madiha, Talat, Yumna and Fayez. A year ago, three generations of the Afzaal family were victims of an Islamophobic terror attack in London, Ontario, just down the road from us in Waterloo region. Four were murdered simply for being Muslims, while Fayez was left orphaned and injured.

Yesterday, the Coalition of Muslim Women of Kitchener-Waterloo held a vigil to mark this difficult anniversary as our community continues to stand in solidarity with our neighbours in London.

We must all recognize that white supremacy kills. Islamophobia kills. We must denounce all forms of racism, Islamophobia and xenophobia, but words are not enough. All levels of government must act more quickly to eradicate Islamophobia and ensure that this never happens again.

IslamophobiaStatements by Members

2 p.m.

Liberal

Arielle Kayabaga Liberal London West, ON

Mr. Speaker, it has been a year since the Afzaal family was tragically murdered while walking in Hyde Park. Salman loved gardening. Yumna loved art. Madiha loved caring for others. Talat simply loved her grandchildren. The void they left on this earth is immeasurable. It was felt during the many events honouring their lives that I attended over the weekend.

In the nine months after this tragedy, Yumna’s friend founded YCCI, a youth-led organization to combat Islamophobia in Canada by offering key educational material to teach us how to see the human behind the hijab. Members of the Youth Coalition Combating Islamophobia made it very clear that they will not stop until this country is safe for Muslim families and all families. They made it clear that their love for Yumna is what drives their work, but that is not all they said.

They asked that I remind this place of how much they have accomplished in the last few months, and that we, as a collective, look among ourselves to reflect on how we can continue to build on what they have started. They also asked that I let all members in this place know that they never want to plan another vigil.

The EconomyStatements by Members

2 p.m.

Conservative

Ted Falk Conservative Provencher, MB

Mr. Speaker, the goal of the Liberal government is the redistribution of wealth. It is not just me saying that. That is directly from former Liberal finance minister Bill Morneau, who said he was forced to spend way too much energy finding ways to redistribute wealth.

The redistribution of wealth is the goal of the Prime Minister and his Liberal cronies. Now it all makes sense. That is why he wants to tax the principal residence of Canadians. That is why he wants to shut down our energy sector. That is why he keeps attacking small businesses. It is why he continues to double down on his carbon tax, the biggest wealth redistribution scheme the Liberals have concocted yet. They want to pick the winners and the losers. They want control, control, control. Why else are China, North Korea and Canada the only countries to have ridiculous vaccine mandates and restrictions?

The Prime Minister took advantage of COVID to pick winners and losers, not only in the economy, but in society. As Canadians struggle, the government is doing cartwheels because everything is going according to its redistribution plan. It is time for the nonsense to end.