Debates of Dec. 5th, 2024

Innovation, Science and Industry

[Greg McLean, Conservative, Calgary Centre, AB]

Madam Speaker, I take some exception to how my colleague across the way just responded to my other colleague on this side of the house. We all believe there is climate change going on here, and no matter what the narrative of his party is, we actually understand what to do about it. His party has been failing at it for nine years now, quite frankly, because they are spending money and getting absolutely nothing done.

I am here tonight to ask more questions about the Sustainable Development Technologies Canada scandal that I asked a question about some weeks ago in the House.

Let us revisit the timeline. This started in early 2023, when a whistle-blower at SDTC came forth and said there were significant malfunctions happening there, conflicts of interest and money going out where it should not go out. Then in December 2023, that whistle-blower appeared before a parliamentary committee and disclosed exactly what was going on. It was evidenced for everybody.

Following that, on June 4, 2024, SDTC was disbanded as an organization and rolled into the NRC, as far as what it was doing, dispensing funds for green innovation in Canada. Not to precede anything, but suddenly, on June 6, the Auditor General came out and ruled in a report that, effectively, there were a whole bunch of conflicts of interest, that $76 million in funding was tied to conflicts of interest and another $60 million went to projects that were not even eligible under the requirements of the program. It was just a complete shemozzle of a program. That is what we are dealing with here in Parliament right now.

Subsequently, on July 24, the Ethics Commissioner ruled that the chair of SDTC, Annette Verschuren, was in violation of ethics guidelines. She had approved grants to her own firms through that SDTC funding mechanism. This is interesting because, of course, as we go all the way through this piece, it is about granting funds to an organization.

This came to the House of Commons. We are looking for these documents to see exactly where these funds have gone, the entities that have benefited from this and, of course, the connected individuals, all of whom seem to have Liberal connections. This is why we want the documents in front of the House of Commons.

The Speaker fully ruled on this, that the government defied the authority of Parliament by refusing to hand over documents relating to SDTC. This House of Parliament, the House that is supreme in our democracy, voted with a majority to get those documents in front of Parliament, to have them handed over. We are supposed to turn them over to the law clerk, who would then distribute them to the RCMP for its investigation of this matter. The government is to hand over all files, communications and financial records to Parliament's law clerk.

Beyond rare exceptions, as noted, for the sake of national security, the House of Commons has the absolute power to produce any documents pertaining to the House's business. All kinds of protestations have come from colleagues on the Liberal side that, in fact, this is something they cannot do at this point in time. The Speaker of the House rejected every argument. Still, the Liberals are not providing the documents.

To finalize, my question is this: What is in those documents that is going to lead to Canadians seeing how much money the government has wasted in its green attempts to accomplish nothing?

[Terry Duguid, Liberal, Parliamentary Secretary to the Prime Minister and Special Advisor for Water]

Madam Speaker, I thank my hon. colleague, whom I respect greatly. I am happy to respond to his comments regarding Sustainable Development Technology Canada, or SDTC.

The government remains committed to providing the documents sought in the House of Commons motion from June 10. In fact, the government has already submitted thousands of pages of records to the law clerk for onward distribution to the Royal Canadian Mounted Police, or the RCMP. I suspect the member opposite knows this, but the Conservatives would rather filibuster their own motion and hold up the important business of the House than move forward with the important work of helping Canadians. Quite simply, to say that the government is intentionally withholding documentation is a serious accusation, and it is simply false.

The government has been very forthcoming since the allegations against SDTC first came to light in early 2023. In fact, as soon as the allegations were made, the Minister of Innovation, Science and Industry took immediate action to investigate and undertake proper due diligence to understand the facts and get to the bottom of the issue at hand. As part of that process, the government worked diligently to respond to the findings of multiple independent reviews of SDTC, including third party audits, committee studies and a report from the Office of the Auditor General.

I would like to remind the member opposite that SDTC was created by Parliament as an arm's-length organization. This model allowed for oversight but emphasized that the work of identifying clean tech projects would lie with those within the independent organization with the appropriate expertise. To claim that the government was directly involved in SDTC is inaccurate; not only that, but it runs contrary to the arm's-length mandate that existed with SDTC.

That being said, at the conclusion of the various reviews and audits, it became apparent that the arm's-length nature of SDTC was no longer working and necessitated change. That is why we announced a new delivery approach for SDTC programming to enhance due diligence.

It is the prerogative of the RCMP to undertake an investigation, and no one in this room is privy to its nature. The government is prepared to offer its full co-operation with the RCMP if and when required. At the same time, we listened to the RCMP when it confirmed that handing over documents to the House to be transferred to the RCMP could jeopardize any ongoing investigations. That, I think, gives us all pause for thought.

Instead of continuing to hold this place hostage with a Conservative filibuster, we should let the RCMP investigation continue, free of political interference and involvement, while also referring this matter to committee as directed by the Speaker.

[Greg McLean, Conservative, Calgary Centre, AB]

Madam Speaker, I will dispel a few myths that the member threw at us. He said thousands of pages of records have been provided. These were thousands of pages of blacked-out documents. This is not transparency at all. This is the way the government actually operates, and it has to change.

As far as the RCMP goes, we all know that the RCMP can ignore evidence. It has not given any indication that it would find the information provided by Parliament would be out of line. Maybe the member stood for Parliament not understanding his role here, but Parliament is supreme. We voted to have these documents produced. We want the documents. However, full co-operation is something the government does not have.

We want to get to the bottom of this because we strongly believe a number of funds have gone to Liberal insiders. We would like to see where these documents lead. We want to make sure the police know that. We want to make sure they have full access to all the documents.

When will the Liberals provide all the documentation?

[Terry Duguid, Liberal, Winnipeg South, MB]

Madam Speaker, I want to be clear: The government has zero tolerance for the misappropriation of public funds. The member opposite's accusation that the government has funnelled taxpayer money and is obstructing justice is completely false.

The Auditor General was clear in her findings and highlighted several areas where SDTC's governance and rules were not followed. This and the other reviews conducted by the department signalled that there were weaknesses in SDTC governance and delivery, and the government took clear and decisive action.

The government fully supports Canada's clean technology industry and appreciates the important role these companies are playing in shaping Canada's economic future. The steps we have taken will ensure that these companies can continue to succeed while simultaneously ensuring the proper stewardship of public funds.

Taxation

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, it is always an honour to rise on behalf of the residents of Kelowna—Lake Country. I rise today to address an issue that worries most of the residents in my riding of Kelowna—Lake Country, and this is the NDP-Liberal government's continued commitment to higher taxation. On April 1, the carbon tax and the excise tax on alcoholic beverages are going to go up again, and the capital gains tax has gone up, impeding investments and retirements.

First is the Prime Minister's favourite tax on everything: the carbon tax. Despite widespread opposition against the carbon tax from the majority of Canadians, 62% according to a recent Leger poll, and a majority of premiers across all political parties, the Liberal environment minister confirmed this past week that his government will still increase its carbon tax by 19% on April 1. The NDP-Liberal plan to quadruple the carbon tax to 61¢ a litre by the end of this decade is just wrong for farmers, businesses, families and our economy.

The Fraser Institute reported that the carbon tax will result in 57,000 fewer jobs and a 6.2% reduction in Canada's GDP. The Parliamentary Budget Officer has already confirmed that Canadian families suffer a net cost from the carbon tax, paying far more in taxes than they receive back in rebates. That is fewer dollars in Canadians' pockets while doing nothing for our environment. On top of this, GST is charged on the carbon tax. This is a tax on a tax, which is absolutely wrong.

Recently, I had the privilege of attending meetings of the trade committee to ask witnesses about the damaging impacts of the Liberal capital gains tax hike. The Council of Canadian Innovators commissioned a survey of entrepreneurs, and the results showed that 90% of respondents believe the Liberals' capital gains tax hike would negatively affect the innovation economy. We heard from many entrepreneurs and investors that Canada will be less competitive for talent, investment and capital in the global market because of this capital gains tax hike.

Arlene Dickinson, the legendary Canadian venture capitalist best known for supporting small business owners on Dragons' Den, told me she did not believe the Liberal budget when it said, “Increasing the capital gains inclusion rate is not expected to hurt Canada's business competitiveness.” Instead of supporting our entrepreneurs, the NDP-Liberal government views them only as a cash cow.

Last, coming from a region with many wineries, cideries, distilleries and breweries, I must raise the Liberals' commitment to raising the alcohol escalator excise tax by 2% again next year. Speaking with residents of mine who work in this sector, I know the pressures on their bottom line. These costs will only be passed on to our local retailers, restaurant owners and other licensees, putting unnecessary economic pressure on an industry in the heart of the Okanagan.

Tax increases ultimately always get passed on to the consumer. Canadians cannot afford the squeeze anymore. The NDP-Liberal government's cost of living crisis will not end until it brings permanent, long-lasting tax relief for everyone.

[Terry Duguid, Liberal, Parliamentary Secretary to the Prime Minister and Special Advisor for Water]

Madam Speaker, I am pleased to take part in today's debate and discuss the measures the government is taking to make life more affordable in Canada, especially as the holiday season approaches.

Inflation is way down and has been back within the Bank of Canada's target rate for 10 months in a row. Wage growth has now outpaced inflation for 21 consecutive months. Earlier this summer, the Bank of Canada lowered interest rates for the first time, making Canada the first G7 country to do so. It has since lowered interest rates three more times.

Although inflation and interest rates are falling, we know that Canadians are not yet feeling the effects on their household budgets. This is particularly true during the festive season. That is why, starting December 14, the government wants to give a tax break to Canadians, which the Conservatives oppose. The temporary two-month GST/HST exemption for select expenses means Canadians would be able to buy items like prepared food, snacks, children's clothing and toys, all tax free.

This means that a family spending $2,000 on qualifying goods during the relief period between December 14, 2024, and February 15, 2025, would realize GST savings of $100. This tax break would last until February 15. This would deliver meaningful savings for Canadians by making essentially all food GST/HST free and providing real relief at the cash register.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, I am not surprised that the member opposite is raising the recent temporary, two-month, tax trick, but the key word is that it is temporary. Conservatives will favour permanent tax relief, such as axing the carbon tax. Looking at the capital gains tax or at the escalator on excise tax as well would provide relief.

The short-term Liberal tax trick on a last-minute Christmas tree will not mean much when the carbon tax on every Canadian's gas, groceries and home heating will rise 19% on April 1, 2025. Christmas tree farmers in my region are small and would not even charge GST anyway because their business is small.

Conservatives will have a tax reform. We will axe the federal tax on new homes sold under $1 million to build more homes and put more money into first-time homebuyers' pockets. Conservatives will actually lower taxes so people have more money in their pockets.

[Terry Duguid, Liberal, Winnipeg South, MB]

Madam Speaker, thanks to the measures we recently announced, Canadians will be able to concentrate more on celebrating the festive season with family and friends and to start the new year with a little more money in their pockets. Canadians can continue to count on the government to make life more affordable in this country on an ongoing basis.

As Canadians, we have so much to be thankful for. Canadians work hard and they deserve to celebrate their achievements. That is what the new holiday-season support is all about.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

The motion that the House do now adjourn is deemed to have been adopted. Accordingly, this House stands adjourned until tomorrow at 10 a.m. pursuant to Standing Order 24(1).

(The House adjourned at 7:16 p.m.)