Mr. Chair, our debt-to-GDP ratio is coming down. It is at 43.5% and it is going to continue to come—
House of Commons Hansard #201 of the 44th Parliament, 1st session. (The original version is on Parliament's site.) The word of the day was chair.
House of Commons Hansard #201 of the 44th Parliament, 1st session. (The original version is on Parliament's site.) The word of the day was chair.
This summary is computer-generated. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.
Department of Public Works and Government Services Act Report stage of Bill S-222. The bill requires the Minister of Public Works and Government Services to consider environmental benefits, including reduced greenhouse gas emissions, when developing requirements for federal construction. It aims to promote the use of wood and other sustainable building materials, highlighting its carbon sequestration and potential for job creation in the forest industry. While widely supported, some desire stronger language to give preference to wood. 8000 words, 1 hour.
Strengthening Environmental Protection for a Healthier Canada Act Third reading of Bill S-5. The bill, which updates the Canadian Environmental Protection Act, 1999, aims to strengthen environmental protection by recognizing the right to a healthy environment and enhancing the management of toxic substances. Key amendments include a commitment to implement the UN Declaration on the Rights of Indigenous Peoples, a focus on vulnerable populations, and a strategy to reduce animal testing. The Conservatives oppose the bill due to an amendment on tailings ponds and hydraulic fracturing, which they view as an intrusion into provincial jurisdiction, while the NDP and Bloc Québécois support the bill, despite some reservations. 31000 words, 5 hours in 2 segments: 1 2.
Department of Finance—Main Estimates, 2023-24 Members debate the Department of Finance's main estimates for the fiscal year ending March 31, 2024, focusing on the government's economic policies. Discussions include the impact of the carbon tax on inflation and household costs, the government's fiscal responsibility and debt-to-GDP ratio, and investments in climate action and the clean economy. Members also discuss affordability measures like the grocery rebate and dental care plan, as well as housing initiatives and tax fairness. 34300 words, 4 hours.
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, our debt-to-GDP ratio is coming down. It is at 43.5% and it is going to continue to come—
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Philip Lawrence Conservative Northumberland—Peterborough South, ON
Mr. Chair, what was the debt-to-GDP ratio in 2021-22?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, the debt-to-GDP ratio went up strongly during COVID, and that was because we had to spend significantly to support Canadians. It was the right thing to do, and we are seeing the results with a very strong job market.
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Philip Lawrence Conservative Northumberland—Peterborough South, ON
Mr. Chair, during COVID, from 2021 to 2022, and then the next year, from 2022 to 2023, the debt-to-GDP ratio went up. Is that not correct?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, the debt-to-GDP ratio went up as a result of our extraordinary COVID spending. In budget 2023, we showed a debt-to-GDP ratio in 2022-23 of 42.4%—
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Philip Lawrence Conservative Northumberland—Peterborough South, ON
Mr. Chair, it went up from 42% to 43%, which is odd because, in this very House, the Minister of Finance said, “On this point, let me be very clear. We are absolutely determined that our debt-to-GDP ratio must continue to decline and our deficits must continue to be reduced. The pandemic debt we incurred to keep Canadians safe must be paid down. This is our fiscal anchor. This is a line we will not cross.”
Why did they cross the line?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, I would like to quote someone who is not partisan and who has been respected by all members of the House as a fiscal expert, Kevin Page, who is the former parliamentary budget officer. This is what he had to say about our budget. He said that the 2023 budget has a “credible fiscal strategy”, and that “the government's fiscal anchor of a declining ratio is maintained”. This is a declining ratio over the framework, and, I want to point out, tripling—
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Philip Lawrence Conservative Northumberland—Peterborough South, ON
Mr. Chair, speaking of parliamentary budget officers, our current Parliamentary Budget Officer said he was troubled by the lack of transparency, specifically with respect to $12 billion in unallocated funds.
Will the Minister of Finance agree to provide an allocation of that $12 billion?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, our current Parliamentary Budget Officer also, in testimony before the finance committee, described the conversation he had with Moody's, a credit rating agency. The current PBO said that Canada's deficit should make us, and I am quoting him, “quite happy because by European standards that's very low.”
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Philip Lawrence Conservative Northumberland—Peterborough South, ON
Mr. Chair, will she provide an allocation of the $12 billion unallocated in the budget?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, our government has been assiduous in answering all questions that are presented to us by the PBO. We have—
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Philip Lawrence Conservative Northumberland—Peterborough South, ON
Mr. Chair, what has been the growth rate per capita, the GDP growth rate?
What was been the per capita GDP debt growth rate in the last 10 years?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, I am glad to finally have a question about people, jobs and growth. Canada's GDP grew by 3.4% last year, the strongest level in the G7. In the first quarter of this year, our GDP grew by 2.5%, also the strongest in the G7.
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Philip Lawrence Conservative Northumberland—Peterborough South, ON
Mr. Chair, the key number there is per capita. The growth rate is 0.8% over the last 10 years. That is the worst since the Great Depression.
We have record-high deficits. We have record-high debt. We have a slowing economy and record-low economic growth. This is very disappointing.
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, that is simply not true. Canada's deficit is forecast, this year, to be 1.4%. That is low not only by world standards; it is low also by Canadian historical standards. Our debt service charges, even in this time of high interest rates, are lower than they were for most of the Harper era.
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Dominique Vien Conservative Bellechasse—Les Etchemins—Lévis, QC
Mr. Chair, this budget has disappointed us and has disappointed a lot of people. Everyone knows that the debt has exploded under the Liberals. The budget has not been balanced in the last eight years.
This is despite the fact that the minister made a nice promise in November that filled us with hope, announcing a return to balanced budgets in 2027-28. What we have seen in the budget documents is that, instead, there will be a deficit of around $14 billion in 2027-28, so there is no return to balanced budgets in sight.
My question is this. Who asked the minister to go back on her promise to return to a balanced budget?
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
University—Rosedale Ontario
Liberal
Chrystia Freeland LiberalDeputy Prime Minister and Minister of Finance
Mr. Chair, I know my hon. colleague is a very experienced politician, so I know she understands that budget forecasts are not made by me or by politicians, nor are they made by Finance Canada economists like Nick Leswick.
They are made by economists in the private sector. There is a big difference between the private sector economic forecasts made in the fall and those made at the beginning of this year. That is why there was a change in the basic budget figures.
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Dominique Vien Conservative Bellechasse—Les Etchemins—Lévis, QC
Mr. Chair, we are responsible before the House of Commons for the documents we table, the budgets we table. It is important, it is fundamental in our democracy.
Is the Prime Minister the one who asked the Minister of Finance to go back on her promise to return to a balanced budget?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, I am not going to explain again how the estimates are prepared, but I will quote Kevin Page, a former parliamentary budget officer. He said that we have a credible fiscal strategy.
Department of Finance—Main Estimates, 2023-24Business of SupplyGovernment Orders
Conservative
Dominique Vien Conservative Bellechasse—Les Etchemins—Lévis, QC
Mr. Chair, in November, she told us that there would be a return to a balanced budget in 2027-28. Four months later, she is flip-flopping and tabling a budget that says something completely different.
She is not planning a return to a balanced budget. Who asked her to go back on her decision?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, it is important to tell Canadians the truth. After the budget was tabled, the S&P reaffirmed Canada's AAA rating. That is the reality and it is an important reality.
