House of Commons Hansard #102 of the 44th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was atlantic.

Topics

Cost of Living Relief Act, No. 1Government Orders

3:50 p.m.

Conservative

Michelle Ferreri Conservative Peterborough—Kawartha, ON

Madam Speaker, my question comes from a place of ideology, fiscal responsibility and the overall big picture of where the Liberal government sees the future of Canadians and of helping those who are suffering most and those who definitely need relief.

How does the member across the way feel about the difference between investing in relief and investing in development, and about the sustainability of giving people an opportunity or a hand-up rather than a handout?

Cost of Living Relief Act, No. 1Government Orders

3:50 p.m.

Liberal

Francesco Sorbara Liberal Vaughan—Woodbridge, ON

Madam Speaker, if we look at the record over the last seven years, in terms of job creation and the number of policies we put in place not only to have what is called inclusive growth but, most importantly, to grow our economy, the record speaks for itself.

On the productivity front, we need to put in place more measures to continue to spur investment. If we look at, for example, the auto sector here in the province of Ontario, as the member and I are both from the province of Ontario, we will see the number of record investments that have taken place. It is nearly $20 billion in investments. Today, I actually had an auto caucus meeting with representatives from that industry, which will create over 17,000 jobs by being a critical supplier within the battery supply chain as we transition to EVs.

Our government is working with industry. We are consulting and we are listening, and that is the direction we need to continue on.

Cost of Living Relief Act, No. 1Government Orders

3:55 p.m.

NDP

Leah Gazan NDP Winnipeg Centre, MB

Madam Speaker, I am glad the Liberal government has followed the NDP's lead with the GST tax credit, along with the Conservatives. I know my colleague kept going on about the Canada child benefit; however, here is the thing. His government is currently clawing back Canada child benefits from single mothers. Meanwhile, guess who they are not clawing money back from. Let us look at Galen Weston. Loblaws makes $5,100 an hour and saw record profits in the first quarter of 2022. At Loblaws, Galen Weston clawed back the pandemic pay of two dollars an hour for workers.

Since my colleague is so keen on the Canada child benefit, would his government consider going after big corporations instead of single mothers?

Cost of Living Relief Act, No. 1Government Orders

3:55 p.m.

Liberal

Francesco Sorbara Liberal Vaughan—Woodbridge, ON

Madam Speaker, we have introduced a number of measures that have lifted literally hundreds of thousands of single mothers and children, and families for that matter, out of poverty. We will still continue to introduce a number of measures.

We have also come out with a number of measures that have asked the wealthiest to pay more. There are measures here on the corporate income tax side for corporations. There was a series of PBO reports issued last week that refer to the revenues that would be collected from those tax measures. I encourage all members of the House to take a look at those PBO reports. They are quite interesting and quite detailed.

Cost of Living Relief Act, No. 1Government Orders

3:55 p.m.

Ottawa Centre Ontario

Liberal

Yasir Naqvi LiberalParliamentary Secretary to the President of the Queen’s Privy Council for Canada and Minister of Emergency Preparedness

Madam Speaker, I am thankful for the opportunity to speak to Bill C-30, which is an act to amend the Income Tax Act as it relates to the goods and services tax and harmonized sales tax credits. It is a bill that is very much focused on targeted tax relief for the most deserving in our communities. However, before I speak to the bill, I just want to quickly state that as this is the first time I am speaking in the House since the summer recess ended, I am thankful for the opportunity to speak. I hope all colleagues across the entire House had a good summer.

As we heard earlier during question period, the devastation caused by hurricane Fiona is top of mind for all of us. We have seen the kind of devastation that this particular storm has caused in Atlantic Canada and in eastern Quebec. Just like everyone, my thoughts are with everyone who has been impacted. There have been a couple of fatalities. We are thinking of the families that have been impacted.

I can assure the House, given my role as the Parliamentary Secretary to the Minister of Emergency Preparedness and in working with the minister, that the entire government, including the Prime Minister, was working hard, as soon as we knew this storm was coming our way, to make sure we were prepared. That involved working very closely with the provincial governments and local municipal governments so that all necessary steps were taken to prepare for this storm. Because of that, we are seeing all of the recovery efforts taking place at the moment.

Just this morning, very early, I was glad to join the Prime Minister and the member for Ottawa South in thanking some of the crews from Hydro Ottawa that were departing for Nova Scotia. We thanked them for what they were doing, as what Canadians always do is look after each other.

During the summer, like perhaps all members, I obviously spent a lot of time in my community. One of the things I always do is knock on doors during the summer months to talk to constituents of mine. I ask two very simple questions: “How can I help you?” and “What kinds of issues are of concern to you?”

It will not come as a surprise to any member, as I have been hearing this from members of all sides of the House, that the cost of living and the rate of inflation are big concerns for everyone. However, I also heard about the need for affordable child care. So many parents I spoke to asked me when $10-a-day child care was coming to their community, the one I represent right here in Ottawa Centre. They were very important conversations, and parents told me again and again that they could not wait for that program to be fully implemented. It is going to save them thousands of dollars, especially if they have more than one child.

This would be a tremendous savings, not to mention an opportunity for young children to socialize and take part in play-based learning. If we couple that with the full-day kindergarten that exists in Ontario for four- and five-year-olds, this is a really game-changing moment for children to thrive and for parents to be fully involved in the well-being of our economy by getting good jobs so they can grow in their professions. The savings are in the thousands of dollars for parents, and they are quite excited for the fact that this federal government, under our Prime Minister, has finally brought in a national child care and early learning system across the country.

However, that is only one measure that would help people with the cost of living. We need to make sure that inflation does not continue, although we are starting to see it abating and coming down. The inflation rate in Canada is perhaps one of the lowest compared with the rates of comparable G7 countries.

Regardless of that, we still need to take steps. We still need to take measures to find targeted reliefs for those who are the most marginalized in our society, the people who are on a low income, such as single mothers, who are working extremely hard every day, and I meet many people like that in my community of Ottawa Centre. We need to ensure that they have some targeted temporary relief, so they can live through this period.

That is why this particular legislation, Bill C-30, is so important. We know that this inflation is global in nature. There are many factors which have gone into and have caused this inflation. Canada is not immune to it.

Of course, the pandemic has had a big role to play. We have heard from other members that the unjustified, unwarranted war by Russia on Ukraine is another big reason that has caused this inflation.

We need, of course, to find a made-in-Canada solution to help people. That is why, as I said earlier, Bill C-30 and Bill C-31 are so important because they would provide those targeted reliefs for individuals.

In this case, under Bill C-30, we would double the GST tax credit for individuals and for families who have qualified for six months. That is real relief that would deliver about $2.5 billion in additional support to roughly 11 million Canadians. That is a very significant number of people who would benefit.

Just to give us an idea, if this legislation passes, and I hope all members will support this legislation, as I intend to do, from the period of July 2022 through June 2023, for the benefit year, eligible people would receive up to $467 for singles without children, $612 for married or common-law partners, $612 for single parents and $161 for each child under the age of 19. That would be quite a significant additional contribution to those individuals for them to work through this inflationary period. Of course, as we are starting to see from economic indicators, the inflation rate is starting to abate, and hopefully, that will continue to happen.

However, we are not stopping there. We would also be providing a one-time rent supplement of about $500, again to those who qualify for that kind of support, to ensure that they would be able to pay the extra costs they may be facing, and so they would not be at risk for homelessness. That is an important priority for our government, to ensure that people have access to affordable housing, and this particular support would be of significant benefit to them.

Lastly, a program initiative that is also much needed, which is very similar to our creating a national child care program, is what we are doing in creating a dental program for young people, to, again, make sure that young individuals, young Canadians, can have access to good dental care. It is essential to their health. By providing the support for those who are making, I believe, $90,000 or less, they would be able to get that dental care and be able to stay healthy.

This would only allow for them to live healthier lives, but it would also be yet more meaningful savings for individuals. We can really see a theme here of providing targeted supports that would really focus on people who need help and support the most. They also have huge benefits, whether it is getting good child care, improving one's health, or making sure that one does not become homeless.

This is going to help our economy. This is going to help all Canadians because our number one job as the government, and my focus as a member of Parliament for Ottawa Centre, is to help build an economy that works for all Canadians.

Cost of Living Relief Act, No. 1Government Orders

4:05 p.m.

Conservative

Dave Epp Conservative Chatham-Kent—Leamington, ON

Madam Speaker, I heard the hon. member say that he hopes that inflation does not continue.

What is this government's plan? It is proposing a one-off payment in response to high inflation. I am glad that the government is now acknowledging high inflation. If this continues, is the plan a continued series of one-off payments?

What is the government's plan to address core inflation? I, too, agree and hope that inflation drops, but is this a long-term plan to address inflation?

Cost of Living Relief Act, No. 1Government Orders

4:05 p.m.

Liberal

Yasir Naqvi Liberal Ottawa Centre, ON

Madam Speaker, I want to first thank my friend from across the way and his party for supporting Bill C-30. It is a very positive step for all Canadians, and hopefully all parties will be supporting this important piece of legislation.

Yes, we do hope the inflation will abate. That is why programs such as the child care and dental programs are important. It is because they are permanent in nature. They would continue to stay in place as national programs to help Canadians coast to coast to coast. That is an example of putting forward a program that is going to continue to help Canadians.

We will, of course, monitor how things are progressing. Hopefully we will get to the point where the economy stabilizes and continues to grow again, as we are seeing with one of the lowest unemployment rates ever in the history of Canada, so people can have good-paying jobs as they contribute to our economy and to society.

Cost of Living Relief Act, No. 1Government Orders

4:05 p.m.

Bloc

Luc Desilets Bloc Rivière-des-Mille-Îles, QC

Madam Speaker, I was happy to hear my colleague say that we need well-structured programs. That is what the Bloc Québécois wants. We want to have permanent, targeted, well-thought-out programs.

My concern is that, once again, it will be meted out sparingly. The funding will be scattered here and there. In my opinion, that is neither permanent nor well planned.

How does the member deal with all of that?

Cost of Living Relief Act, No. 1Government Orders

4:05 p.m.

Liberal

Yasir Naqvi Liberal Ottawa Centre, ON

Madam Speaker, I welcome my colleague's question.

If one looks at the kind of programs we are putting in place, taking child care as an example, it is not a program without a plan. It is a program that has been sought for a very long time by Canadians, especially Canadian women, who have argued that, for them to thrive economically, we need to make sure there is affordable child care available coast to coast to coast. By putting forward a well-thought-out plan, the way our government has done, we are ensuring there would be more participation, especially by women, in our society and in our economy. It would also ensure there is good early learning for our children.

Cost of Living Relief Act, No. 1Government Orders

4:05 p.m.

NDP

Laurel Collins NDP Victoria, BC

Madam Speaker, a report came out this summer showing that one in four Canadians are spending less than they need to on groceries. Many are going hungry. I want to thank him for his support for the critically important NDP initiatives, such as doubling the GST credit, ensuring we have a targeted support for people struggling to pay their rents and ensuring kids under 12 receive dental care as a first step toward a federal dental care program.

One thing I did not hear about in his speech, which is a crucial part of this equation when it comes to rising costs, is corporate greed. The Liberals, so far, have refused to put a windfall excess profits tax on corporations that are making record profits. Would the member support an excess profits tax, or are the Liberals going to keep protecting corporate profits while Canadians go hungry?

Cost of Living Relief Act, No. 1Government Orders

4:10 p.m.

Liberal

Yasir Naqvi Liberal Ottawa Centre, ON

Madam Speaker, we work our very best when we work with each other, share ideas and put them in place. I am really happy to see our government is working well with the NDP and making sure we work in a collaborative way that is in the best interest of Canadians. I am happy to see the opposition supporting this important initiative as well, because that means Canadians are going to be first.

We have done a lot of work as part of this government to make sure our tax system supports those who are marginalized. That is why we increased taxes on the top 1% of earners, took all that windfall and gave a tax break to middle-class and low-income Canadians. That is the kind of progressive policy we will continue to put in place.

Cost of Living Relief Act, No. 1Government Orders

4:10 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

The hon. parliamentary secretary to the government House leader is rising on a point of order.

Cost of Living Relief Act, No. 1Government Orders

4:10 p.m.

Winnipeg North Manitoba

Liberal

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

Madam Speaker, there have been discussions among the parties, and if you seek it, I think you will find unanimous consent to adopt the following motion. I move:

That, notwithstanding any Standing Order, special order or usual practice of the House, during the debate pursuant to Standing Order 52 later today, no quorum calls, dilatory motions or requests for unanimous consent shall be received by the Chair.

Cost of Living Relief Act, No. 1Government Orders

4:10 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

All those opposed to the hon. parliamentary secretary moving the motion will please say nay.

It is agreed.

The House has heard the terms of the motion. All those opposed to the motion will please say nay.

(Motion agreed to)

Cost of Living Relief Act, No. 1Government Orders

4:10 p.m.

Conservative

Kerry-Lynne Findlay Conservative South Surrey—White Rock, BC

Madam Speaker, I will be sharing my time with the member for Peace River—Westlock. Before I begin my remarks on Bill C-30, I do want to express my condolences and sympathies to all those suffering along the Atlantic seaboard. Even though they prepared as best they could, there have been some tragic results. I know that all Canadians are hoping for the very best, and for a very strong and quick recovery for all those affected.

Right now, Canada is facing the highest rate of inflation in 40 years. Canadians are struggling. They do not know what lies ahead or if it will get any easier. Grocery prices have risen at the fastest pace since 1981, soaring above 10% on average, with some items having risen over 30%. This means a typical family of four now spends over $1,200 more each year to put food on the table. That is if inflation does not rise further, something we have no guarantee of under the Liberal government.

Rising gas, heating and rent costs are weighing on the majority of Canadians, who are struggling to get from one paycheque to the other.

Rental increases are crippling income levels, with many having to take on second or third jobs to afford to pay their bills and travel to work. I have heard from many constituents who cannot afford the basic essentials anymore for themselves or their children.

If someone loses their rental accommodation for any reason, or needs to change location, they are hit with gouging increases. A single dad in my riding who has had full-time employment for years, and who is well regarded there, lost his basement suite because new owners wanted to take the space for themselves. He and his young son were literally priced out of other rental spaces that would be anyway similar. Friends are helping them out for now while he continues to try to find a home.

Bill C-30, which amends the goods and services tax credit, would double the amount for individuals and families with low and modest incomes. The GST credit would equal a one-time top-up for an additional $467 for singles without children with a net income of about $39,000, and up to $934 for a family of four. This one-time assistance measure, which Conservatives support as welcome tax relief for workers and families, does little to address the inflation-fuelled affordability crisis facing all Canadians. Individuals without children earning more than $49,200, or a couple with two children earning more than $58,500, would receive no benefits.

This benefit, which equates to $77 per month for a qualifying family of four, covers less than 40% of the Prime Minister's inflation at the grocery store alone, and does not begin to cover the rising costs of heat, gasoline and rent. More than 70% of families with children will not receive this support.

Housing, the cost of living crisis, homelessness and mental health concerns are top issues for B.C. residents. In 2021 alone, there were over 13 million visits to food banks across Canada. That is up 20%. Do the Liberals in the government, who often speak about the need to raise Canadian children out of poverty, realize that children represent over 30% of those food bank users in Canada?

Significantly, one in eight of those accessing food banks is employed. These services are a last resort for most, but they are becoming increasingly common for Canadians who have no other choice. Realistically, how could $77 a month address the burden of this level of desperation? It does not.

The core issue impacting every person in this country is rising inflation levels. Unlike tax-relief measures, such as the GST credit, the government is implementing inflationary proposals, such as tripling the carbon tax on April 1 and lowering every Canadians' paycheque by increasing the employment insurance and Canadian pension plan premiums on the first of January.

Under the previous Conservative government, CPP premiums remained stable and never increased. The fund was left actuarially sound for the next 75 years, and CPP benefits increased every year. Of course, working Canadians want to contribute to their retirements and will continue to do so, but this is not the time to increase those mandatory payments at source when buying power is shrinking more and more.

Tripling the carbon tax will mean that Canadians will again pay more for groceries and home heating and will add up to 37.57¢ per litre to the cost of gas. Yesterday, in the morning, in my riding of South Surrey—White Rock, regular gas prices were sitting at $2.339 a litre. The cost fell in the evening to a mere $2.289 per litre. At this rate, British Columbians will be paying close to three dollars per litre in no time at all.

My riding is a suburb of Vancouver with only one polytechnic university. White Rock is small and bordered beautifully by the water, but Surrey is growing rapidly. Infrastructure, however, has not yet fully caught up to the residential and industrial growth. In South Surrey, with no rapid transit and only bus lanes to get people in and out to Vancouver and beyond, or to get to the major universities in Burnaby and the UBC peninsula, these changes are burdensome and distressing to many who must drive to where they need to go. By the way, moving into Vancouver is not an option when a one-bedroom apartment now rents for $2,600 per month. The Liberals' one-time rent cheque would pay for about five to six days out of 365.

At a time when the national focus should be getting the country's deficit back under control, the government is clawing back at the drastically reduced disposable income of hard-working Canadians, instead of cutting unnecessary spending within the bureaucracy. This government's approach is very limited. It lacks long-term vision for economic recovery.

Many experts are raising alarm bells on the government's financial strategy. The heads of our major banks, including CIBC, the Bank of Montreal and Scotiabank are all warning that handing out cheques is inflationary and will make our economic woes worsen. Derek Holt, vice-president of Scotiabank, has stated, “Any belief that [these measures] will ease inflationary pressures must have studied different economics textbooks.”

Inflation has been described as the cruellest tax of all by economists, because it hurts everyone by making all goods and services more expensive and it impacts low-income Canadians, seniors and students the most. Despite the relief that is offered by the government, high inflation crushes the ability for low-income Canadians to afford the basic necessities of life and curbs the ability of middle-income households to afford optional activities like sports or better quality food for their kids.

According to finance professor Andrey Pavlov at SFU's Beedie school of business, “If we have high inflation and that inflation continues, that assistance isn’t going to do very much to help anyone, including the recipients of that assistance. It’s just not going to be enough.”

Conservatives are advocating to bring inflation back under control. We need to do that. We need to stop inflationary spending. Conservatives understand monetary policy. We warned that inflation would naturally result from the Liberals' spending sprees, which continue. We will fight the government's tax hikes and inflationary deficits to protect Canadian paycheques and savings. We must do this because Canadians are not enjoying a higher standard of living, as I just heard. Canadians are hurting, and it is our job to transform hurt into hope.

Cost of Living Relief Act, No. 1Government Orders

4:20 p.m.

Milton Ontario

Liberal

Adam van Koeverden LiberalParliamentary Secretary to the Minister of Health and to the Minister of Sport

Madam Speaker, I thank members on the other side for committing to support this measure.

When I was growing up, my mother received an HST refund and I know that it helped her with raising two boys with tight paycheques sometimes, and I am confident that this measure will do the same for families now.

My hon. colleague's speech wound around a bit and talked about how sending out cheques can contribute to inflation, so I would ask her specifically if she thinks that paying for things like dental care and rent for low-income Canadians will contribute to inflation.

Cost of Living Relief Act, No. 1Government Orders

4:20 p.m.

Conservative

Kerry-Lynne Findlay Conservative South Surrey—White Rock, BC

Madam Speaker, the way the Liberal government is going about it will absolutely add to inflation. One-time cheques on these measures do not a dental plan make. This is not a dental plan; this is a one-time payment. This is not a rent plan; it is a one-time payment. As I just mentioned, for someone paying $2,600 a month for a one-bedroom apartment, $500 does not go very far.

What need to happens is that inflation needs to be dealt with, which is in itself a tax because it takes away from everyone. It is a regressive tax. It hurts low-income people the most. Liberals have to get the fiscal house of Canada in order. That would help people far more than one cheque.

Cost of Living Relief Act, No. 1Government Orders

4:20 p.m.

Bloc

Andréanne Larouche Bloc Shefford, QC

Madam Speaker, I thank my hon. colleague for her speech in which she mentioned food banks. I recently spoke with representatives of SOS Dépannage, which is located in Granby but serves the wider region.

What I am hearing about is the increase in demand. From August 2021 to August 2022, the demand for food assistance more than doubled. It is not just families who need it but also seniors, who are struggling because they are on a fixed income. One-time assistance is not the solution. Support and an increase in old age security is what is needed for all seniors, not just those aged 75 and over.

I would like my colleague to comment on that.

Cost of Living Relief Act, No. 1Government Orders

4:20 p.m.

Conservative

Kerry-Lynne Findlay Conservative South Surrey—White Rock, BC

Madam Speaker, this is where vision is needed, a vision of a Canada where we can be more independent, where we can count on each other and where our economy is robust and working for everybody. That is what we need.

We do not need further cheques to people. We need better paycheques for people. We need to get inflation under control because, as I mentioned in my speech, that is referred to as the cruellest tax of all. We cannot ignore it and economic policies must reflect a realistic look at the people hurting out there. The food bank situation is really atrocious in an affluent country like Canada. One of out eight Canadians is reporting putting water in milk for their kids. Canadians are reporting going without a meal. This is not the way Canada should look and the Liberals need to take it seriously.

Cost of Living Relief Act, No. 1Government Orders

4:25 p.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Madam Speaker, here we are on the eve of another climate emergency and what are the Conservatives doing? They are asking to get rid of the carbon tax. They are also asking for the government to help fund the climate emergency response, which I think we can all agree on. I, like my colleague, come from British Columbia where a carbon tax was brought in by the B.C. Liberals, supported by all political parties, because in British Columbia we understand the importance of fighting climate change.

Does my colleague think the federal government can override B.C.'s carbon tax and reverse legislation that has been put forward by the Province of British Columbia to do the right thing?

Cost of Living Relief Act, No. 1Government Orders

4:25 p.m.

Conservative

Kerry-Lynne Findlay Conservative South Surrey—White Rock, BC

Madam Speaker, I am afraid my friend's question is very disingenuous because nobody has even been talking about going into provincial jurisdiction.

We are talking about a tripling of the federal carbon tax on April 1, at a time when it is already, at the level it is at now, hurting people right across the country and hurting farmers immeasurably. It needs to be taken into account with the overall economy. People cannot afford this lowering and lowering of their purchasing power. They have to be able to look after their families and live in dignity, and we should be helping them to do that by not tripling the carbon tax on April 1.

Cost of Living Relief Act, No. 1Government Orders

4:25 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Madam Speaker, I, too, want to add my voice to the discussion around Bill C-30.

In my lifetime, I have never experienced such inflationary times as these. We are living in immensely inflationary times, and I think this bill is an attempt to rectify that situation. We have seen a dramatic increase in the cost of living, the cost of food, the cost of fuel and the cost of housing. We have seen the average price of a house in Canada double over the last two years. Since the Prime Minister has become the Prime Minister, we have seen the price of housing double in this country. Over the last two years, we have seen butter, for example, come up 16%. Fuel has basically doubled in the last year. We are seeing how life is getting more and more expensive.

There are two ways to address this issue. First is to make more money in order to pay for the things that we need to pay for. Second is to try to lower the cost of living and the cost of everything that we have to pay for like housing and all of those things. The reality that will come into effect is that both of those things will happen. People will find ways to make more money and hopefully the government will work to reduce the cost of things or at least stem inflation.

We watched Joe Biden celebrate a little while ago. He said that inflation was flat for a particular month. He was wrong when he said that. In fact, inflation did not increase for a particular month. The percentage of inflation is how much one's money is being reduced in value every month. If the inflation rate is running at 5%, then our money is worth 5% less over that particular period of time. If that inflation rate stays at 5% and does not increase to 6%, that is not good news. It is just that, over the next same amount of time, that money will be worth 5% less instead of being worth 6% less. An inflation rate that is close to zero is what the goal of our whole system ought to be.

Cost of Living Relief Act, No. 1Government Orders

4:30 p.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

I would ask the hon. member to move his phone, especially since it is near the microphone.

Cost of Living Relief Act, No. 1Government Orders

4:30 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Madam Speaker, I was just running my timer.

Nonetheless, there is the work that needs to be done to make life more affordable in Canada and to reduce the inflation rate. What kind of tools does the government have at its disposal to reduce the inflation rate? Taxation is a big part of the tools the government has. We, as Conservatives, are calling on the government to impose no new taxes.

On January 1 we will have a brand new tax increase on CPP and EI premiums. Happy new year. They are not optional fees for people to pay. If they were optional, the government may have been able to get away with not calling them taxes, but they will come off of people's paycheques whether they like it or not. They are taxes. That will reduce the amount of money people take home. They will make people's paycheques smaller, essentially. That will not help the inflation situation. It is not necessarily driving inflation, but it is one of the things that will not help people get over the inflation hump, so to speak.

On the other side of this, on April 1 the carbon tax will go up. The carbon tax is very much an inflationary tax. The carbon tax gets built into the cost of everything. Whether it is the shoes we wear, the food we eat, driving to work, driving the kids to school, or driving anywhere, the carbon tax is making all of that exponentially more expensive.

One thing that happens is that the carbon tax gets added into every part of the economy. When the raw products are taken out of the ground or the trees are taken out of the forest, the trucks that haul the trees to the lumber mill are paying for the carbon tax on their fuel. That cost gets built into the transportation costs of bringing the raw product out of the forest to the mill. The mill has to pay the carbon tax on the energy the mill uses to process that, so there is another added cost. As well, all of the packaging materials and supplies the mill needs are being shipped to that mill and they are paying the carbon tax on the products that are coming in, which is adding an increased cost.

Most of these mills are publicly traded. Our pension funds are probably invested in these particular companies. As everybody wants to retire, they want a return on their investment. They are looking for a nominal 10% return on their investments. There is an expectation that no matter what the costs are to that particular mill, they have to turn a profit, so they are going to increase the cost. When the carbon tax on all of these different things is added to their input, it raises the cost of their input. When they sell their products, lumber for example, they are going to have to increase the price of lumber in order to get the 10% return they are offering to their shareholders and people who have invested in the stock market. There is that dramatic increase.

As that carbon tax is bumped up, it cascades through the economy making it more expensive. I never even talked about that lumber getting delivered. The carbon tax will be charged as part of the costs of the truck driver for hauling it, including the diesel fuel needed for that particular truck hauling that lumber away from the mill to the local lumber yard. The local lumber yard is paying carbon tax on the natural gas they burn to keep the building warm. They are paying it on what they deliver. By the time someone gets that lumber delivered to their yard, there may not be a line on the invoice for that lumber that says “carbon tax” but rest assured that a significant amount of the cost of that two-by-four will be for carbon tax.

The increase in the carbon tax on April 1, in particular, could be paused by the government. The government could pause that increase instead of ramping it up to three times from what it currently is. It could pause it or it could remove the carbon tax. The removal of the carbon tax would have the dramatic effect of reducing the cost of things across the country. I think that currently the carbon tax on gasoline is 12¢ a litre.

Imagine if, in much the same way as Alberta has done, the provincial fuel tax was removed. When oil went over $90 a barrel, Alberta removed the fuel tax, causing a dramatic decrease in the price of fuel, which made life more affordable. People could get to work and their paycheques could go further. I hear more frequently from people who are having to ration their funds with respect to what they are buying and how they are heating their homes just so they can buy fuel for their pickup truck to make it to wherever they work.

The Conservatives are calling for two things. One is a reduction in, the removal of, or no increase to the carbon tax on April 1. This would help to stem the tide of inflation and dramatically improve the cost of things. Two is no increase to the payroll taxes. This would allow people's paycheques to pay for all the things they need.

The Conservatives are also calling on the government to quit borrowing money, quit raising taxes and quit raising inflation. We are calling on the government to stop borrowing money. We are calling for a one-to-one ratio. When the government wants to spend new money on a new program or a new initiative, it has to go back to the budget and find where there are some savings, whether that is from a program it is not interested in using anymore or it does not need. As society progresses, we see the government spend money and then, over time, the programs are not necessarily needed any longer. We are looking for that one-to-one savings, no new taxes, and for the government to balance the budget in the coming years.

Cost of Living Relief Act, No. 1Government Orders

4:35 p.m.

Liberal

Lloyd Longfield Liberal Guelph, ON

Madam Speaker, I was listening with interest to the hon. member across the way's perspective on inflation and the price on pollution. There is one thing that was going through my mind that maybe he can help me with, and that is the government's role in investing in triple bottom-line results.

In Guelph we had six housing projects, for 243 units, with $45 million invested by the federal government to help stimulate the housing supply. A lack of housing creates inflation, which we have been facing. We have created a circular food economy in Guelph, with an investment of $15 million, to reduce food insecurity so people have access to food.

Could the hon. member comment on the role the government plays in providing social, economic and environmental support for our citizens?