Madam Speaker, it is an honour to rise again in the House.
I will be splitting my time with the member for Milton.
It is a little frustrating that again we have a motion where we are debating the carbon tax in this place. As I suggested in a speech last Thursday, when we keep talking about the carbon price in this way, it gives the false impression that it is the price on pollution that is actually leading to the large increases we are seeing on home heating fuels across the country.
Today, we are debating an opposition day motion that has been put forward by the NDP. What I do appreciate about the motion is that it actually does identify what is causing the record increases in fuels that we are seeing within Canada. By way of example, since 2020, we know that with the increase in the price of home heating oil in Atlantic Canada, only 12¢ of that is from the price on pollution and actually 63¢ is because of the massive excess profits that are being made by the fossil fuel sector.
However, it is important that we recognize why that is happening. Of course, with natural gas and oil, these are global markets, and what we are seeing right now is instability throughout the world, particularly with the illegal and unjustified Russian invasion of Ukraine, which has caused significant disruption to the global energy market. We are also seeing the actions of OPEC, which is constricting the supply of energy across the world. We are seeing massive increases in the cost of energy in Canada as a result.
Just since 2022, the oil and gas sector in Canada has made a $30-billion increase in profits, which is a 1,000% increase since 2019. At the same time we are seeing these record profits take place, we are seeing thousands of jobs being cut right across the country. I do appreciate that the motion that the NDP put forward looks at this as the problem. Unfortunately, it goes beyond this.
While I think there is a very good discussion to be had about putting in an excess profits tax on oil and gas companies and being able to use the profits from that to invest in the transition that is taking place, it is very important that as part of the motion there is discussion on ensuring that this financing goes to support things like heat pumps and other ways of reducing home heating bills for Canadians. As the parliamentary secretary said earlier, there are issues with how the motion has articulated scrapping the GST on home heating fuels, given that actually might not assist the most vulnerable in Canadian society right now.
However, what I really find frustrating is that, just yesterday, the mover of the motion, the NDP, in fact voted for scrapping the price on pollution for all home heating fuels right now. Again, I think this sends the wrong message right now. It focuses on the price on pollution as a problem when really it is such a small portion of that.
We know that having a price on pollution is the most efficient way of reducing emissions and the most cost-effective way. The province I come from, British Columbia, has had one for over 15 years. Of course, this was a price on pollution that was brought in by the right-of-centre government at the time. While the federal system does not apply in British Columbia, the federal system that we have put forward actually provides rebates that are sent out quarterly to Canadians so that eight out of 10 Canadians get more back than they pay into it. Importantly, when we are talking about cutting the price on pollution for these fuels, it is actually going to reduce the rebates that people are getting and so in many ways it actually undermines the affordability measure that is there.
It is through measures like this that Canada has been able to make significant progress in recent years on reducing emissions. In fact, from 2019 to 2021, emissions in Canada have gone down more than in any other G7 country. Obviously, we have a lot more to do, but our price on pollution is a very important part of Canada's emissions reduction plan to make sure that we get there.
It is fundamental that we do not do things that undermine the price on pollution. For this mechanism to be effective, Canadians need to know that it is going to be in place for the long term and that it will be increasing over time as well. Without it, individuals will not make the investments in measures to reduce emissions and, at the same time, save on their pocketbooks.
Similarly, it is incredibly important that we not only have certainty with the price on pollution for individual consumers, but also at the industrial level. In that regard, we are moving forward with the Canada growth fund, which among other things will be able to bring in carbon contracts for differences that will provide the certainty for industry so even if there is a change in the carbon price over time they will have that security in making those investments. It is incredibly important that we have this because we are not seeing the type of investment at the business level in abatement of emissions. Last month, at the finance committee, we heard from witnesses that over the last two years, while the oil sands have been making record profits, there has been zero new investment in mitigation of emissions. Therefore, it is critically important that the private sector and industry play their part, so we need to make sure we have the system in place to ensure they are able to do that and are pushed to do that.
Another measure that we are in the process of developing right now is a regulation that will cap emissions from the oil and gas sector. Again, this is critically important so that those companies that are making record profits right now while cutting jobs invest in measures to reduce emissions.
I am having a bit of déjà vu here with the provincial NDP. I remember back in 2009, when the provincial NDP ran its entire campaign on axing the carbon tax. Therefore, I think it is critically important that we focus at this point on reducing emissions while we are there to support affordability for Canadians.
I am heartened that we are having the type of conversation we are having about heat pumps. We know they are an incredibly good way of reducing our emissions at the household level. That is why we have announced a new program that is going to provide free heat pumps for people in the three provinces that have already signed up for it so they can move from the highest-emitting fuels, which are also up to four times more expensive than natural gas, to heat pumps. I have seen in an analysis that a family in Halifax can save over $1,400 a year by doing this. We are putting the call out to all provinces for this program so they can work with us on being able to provide heat pumps for people to transition from home heating oil.
Just yesterday, I was very proud to see my premier, David Eby, wearing an “I love heat pumps” shirt, so I know there is buy-in at the provincial level in British Columbia. We need to work together so we can save Canadians money, as well as reduce emissions at the same time.
It is not just about reducing our emissions at the household level and saving Canadians money that way; we also need to assist Canadians with solutions in decarbonizing across the board. A key measure we have been working on for several years now is ensuring that we are decarbonizing transportation in Canada. As part of this, we are now providing a $5,000 incentive for people to switch to electric vehicles. Just last week, I was very pleased to be able to take advantage of that program as well. I am part of the 18% of new vehicle purchasers in British Columbia who have moved forward with an electric vehicle.
Whether it is with respect to decarbonizing transportation or home heating, we need to do all we can to support Canadians to make greener choices while having an effective price signal in place. I think it is critically important that we do both those things at the same time. What is imperative in that is ensuring that we have a robust carbon price so Canadians know that it is going to be there in the future.