Madam Speaker, I am very pleased to rise to contribute to what I think has become a really convoluted debate about the carbon tax, and I hope to offer a little clarity.
To start, I want to be very clear about what today's motion is about, which is to remove the GST from all forms of home heating, to make eco-energy retrofits and heat pumps free and easy to access for low-income and middle-class Canadians regardless of their initial home heating energy source, and to finance these changes by putting in place a tax on the excess profits of big oil and gas corporations. We have heard a lot about the carbon tax so far, and it is important to say that carbon pricing is an important tool in combatting climate change. It is something the New Democrats have long supported and continue to support.
However, serious damage was done to the majority consensus on carbon pricing in Canada when the Liberals decided to introduce regional division into the program. That is not fair, and it does not pass the smell test for Canadians across the country. For people who care about the long-term future of carbon pricing in Canada, it is important to maintain majority consensus, which we cannot do with regional schism baked right into the program. That is why New Democrats were willing to vote for the Conservative motion the other day that said the pause that applied on home heating oil should apply to all forms of home heating, including natural gas. We think it is important that we maintain a majority consensus and not introduce a sense of regional grievance. The Liberals said it was inconsistent of us to do, but that is not true. In fact, as I say, I believe it is a critical part of maintaining a majority consensus for carbon pricing.
It was wrong of the Liberals to introduce that level of regional division. How do we know? If anyone had any doubt, when a Liberal cabinet minister from Newfoundland went on CTV News and said that the reason they were doing it was to cover their own political rear in the Atlantic region, and that people who wanted a break on the carbon tax should be voting Liberal, it was very clear that this was a regional policy motivated by the partisan political interests of the Liberal Party. Did New Democrats support that? Absolutely not, and that is why we did not vote to support the Conservative motion to extend the pause to other forms of heating.
Do the Conservatives have it right? No, because they want to get rid of carbon pricing altogether, and that is the wrong response. Do they have it right when it comes to the New Democratic motion on the GST? No, because if they were concerned about getting it right from an affordability point of view, they would be supporting our proposal on the GST instead of harping on the carbon tax as they have been doing. Why is that? It is because a break on the GST for home heating would be consistent with the long-standing policy of not charging GST on essentials.
It would be better because it would apply to Canadians across the country. The federal backstop on the carbon tax applies only in provinces that do not have their own provincial price on carbon. B.C. does and Quebec does, and a number of other provinces do. They will not see any relief as far as they are concerned, but what they do pay, even if they have a provincial carbon tax, is the GST. If the Conservatives were really interested in lowering taxes for all Canadians, they would support our proposal on the GST. This is not a new proposal of the NDP on the GST; it goes back to early days of the leadership of Jack Layton, who was elected leader of the NDP almost 20 years ago.
Furthermore, Conservatives should be interested in supporting our proposal because the GST is charged on the carbon tax. Any other day of the week, Conservatives would be upset about a tax on the tax, but when New Democrats say we should remove the tax that makes sense because it would get rid of that tax for all Canadians and would no longer be a tax on the carbon tax, they say, "No, no, the NDP is flip-flopping and we will not support it”, even though it is an opportunity to do something for Canadians.
The other important reason for supporting the removal of the GST instead of the carbon tax is that it applies to all forms of home heating. We know there are cash-strapped Canadians who are already doing the right thing by using methods of heating their homes that do not burn carbon and do not contribute to emissions. There are a lot of Canadians who would like to be in that boat but do not have the resources to be. That is why we are talking about the government's expanding the program in order to make heat pumps available to low- and middle-class Canadians, but the people who have already managed to make that transition should not be punished as they would be under the Conservative proposal to simply get rid of the carbon tax. If the Conservatives would agree to eliminate the GST instead, Canadians who already have low- or no-emission heating sources in their home would likewise get a break, and they too are deserving of assistance in a time of economic hardship.
Of course, we know that we can pay for increased access to heat pumps for low- and middle-income Canadians because we can levy a tax on the excess profits of oil and gas companies. Why would we do that? Profits in the oil and gas industry in Canada, between 2019 and 2022, a simple three-year period, increased by 1,000%. That is billions of dollars that could be reinvested in lowering emissions and reducing home heating bills for Canadians by transitioning to more efficient forms of heating. Is it some kind of red-eyed socialist idea to go around taxing oil and gas companies? I do not think so. Boris Johnson and the Conservatives in the U.K. implemented a windfall tax on the oil and gas industry there. This is not about whether one is on the right wing of the spectrum or the left wing of the spectrum; it is about whether one is motivated by a fundamental sense of fairness.
I must say that the Conservative leader, who goes around the country saying he has the backs of working people, should be explaining to them why he does not support the removal of GST on home heating, because that is what it would mean to have the back of every working Canadian in this country, whether they heat their homes with electricity, natural gas or home heating oil, and whether they do it in Newfoundland, Manitoba, British Columbia or the Northwest Territories. However, he is not who he says he is. He is not the champion of working-class people in Canada. He is an oil and gas lobbyist working in the House of Commons. That is who the leader of the Conservative Party is, and it is why he will not get behind a very common-sense proposal to help Canadians with their affordability challenge to reduce emissions. The oil and gas companies have really been putting the squeeze on Canadians. They did not get a 1,000% increase in profits over a few years without unfairly gouging their customers. That is exactly what oil and gas companies have been doing.
Looking at the extent to which increases in prices for oil and gas, versus the carbon tax, are responsible for inflation, I have to say that oil and gas prices are a much higher driver of inflation than the carbon tax is, despite the Conservatives saying in here that the Bank of Canada said it contributes to inflation. Yes, it is 0.6% one time. We could get a one-time, one-year reduction of inflation by 0.6% if we were to remove the carbon tax. After that, it would continue to go up. I also had the opportunity to question the Governor of the Bank of Canada about that at committee. I think it is important to note that the one-time 0.6% reduction in the carbon tax assumes that oil and gas companies are not going to raise their prices.
Any Canadian who has been observing the oil and gas market knows full well that if it thinks there is any room to increase prices, it is going to do it. I humbly submit that although we do not know how much the oil and gas companies would raise their prices, I think we know they would. That means we know that the one-time saving on inflation is a lot less than 0.6%. We should wonder why we were concerned about it at all when there is a perfectly good, and better, proposal to eliminate the GST from home heating that would actually do more for all Canadians.
I think what members can see is that the NDP has a perfectly consistent position. We are advocating a measure that we have been advocating for a long time. Why are we? We are advocating it because it is the fairest way to do it and because it is consistent with a tradition of not charging sales tax on essential items. In the context of the carbon tax, it is the fairest way to do it because it applies to people no matter where they live in the country. We have been consistently advocating that.
I remember when the Conservatives had carbon tax motions. They named some of them as examples of our voting against their motion to axe the tax. For sure, I think there should be a carbon price, absolutely. I just think it has to be applied fairly across the country and that the Liberals screwed it up by enacting a policy that meant that it is not. Yes, I support carbon pricing. I remember when we proposed amendments to their carbon price motions and said that if they really wanted to get rid of a tax on home heating, they should work with us to get rid of the GST. Do members know what they said when we proposed that amendment? They said no. Did members know that in the House, if there is an opposition day motion, a member cannot move an amendment without the permission of the mover? That meant we never did get to have a vote on that. We did not get to have a vote because the Conservatives vetoed a vote on getting rid of the GST on home heating.
The so-called champions of tax reduction for Canadians would not know a working partner if they came up and slapped them in the face. Some of us have had the idea to do that, but we have not, because we would prefer to preserve a good working relationship to get something done for Canadians. That is why we are here. It is what we are going to do every day of the week, and it is why we have made another attempt today with this motion. I urge them to finally support it.
