Madam Speaker, to start, I will mention that I am sharing my time with my colleague from Renfrew—Nipissing—Pembroke.
I am pleased to rise to talk to budget 2024, which the government has labelled “Fairness for Every Generation”. We can quite easily say the government is inflicting its Liberal version of fairness on every generation. I am sure Liberals are sitting there on the other side saying, “Why let just boomers suffer through high rent, high food inflation and high crime?” Under the Liberals, the idea is to be fair and make gen X and millennials suffer as well.
Churchill commented, “The inherent vice of capitalism is the unequal sharing of blessings. The inherent virtue of socialism is the equal sharing of miseries.” That is what Canadians are suffering under the Liberal government: the equal sharing of miseries.
Now, I want to look at some of the sharing of miseries under the Liberal-NDP government. We will start with rent. We have a crisis across the country of skyrocketing rent. Rentals.ca reported, “Average asking rents for all residential property types in Canada hit an all-time high of $2,202 in May, surpassing the $2,200 level for the first time.”
That is up 9% from last year. In 2015, when the Liberal government took over, the average rent in Canada was $966. That is a 128% increase in rent. I do not think any Canadians have been receiving a 128% increase in their family income since 2015. Now, even adjusting for the out-of-control Liberal inflation, that is still 28% higher than the inflation-adjusted total compared with 2015.
I want to talk about a couple of examples across the country: In Burnaby, B.C., the average is $2,500, up 8%. In North York, it is $2,300, up 4%; that is the average rent for a one bedroom, by the way. In Ottawa, it is $1,884 for a one bedroom, up 7%; and in Kingston, it is $1,800, up 8.4% from last year for a one bedroom.
Now, luckily for the people in the prairie provinces, those provinces had been spared the high rent increases. However, this is the case no more, thanks to the Liberal government.
In Calgary, a one bedroom is up 6% from last year; Winnipeg is up 9%. Edmonton, my own hometown, is up 16% from last year; Regina is up 16.7% from last year. Saskatoon is up 13% from last year for a one bedroom. Finally, Fort McMurray is up 13%.
That is the reality and the so-called fairness under the Liberal government. Fairness of access to misery is basically what the government has delivered. Mortgage payments have doubled since the government took over. Housing prices have doubled.
I want to read a quote from Bloomberg, the business magazine: “Canada [is] likely sitting on the largest housing bubble of all time”. It is not the largest housing bubble in Canadian history, but of all time. The article argues that “inflated home prices in Canada are a result of...easy money supplied under the [government's] monetary policy.... At the present moment, [there is] risk in mortgage rates climbing”, which we are seeing, “as Canadian bond yields are dragged up, particularly at a time when debt-to-income ratios are sky high.” Canadians, as we are aware, probably have the highest consumer debt-to-income ratio in the world.
The article goes on to say, “The worst part for a housing bubble is when you have [a] credit bubble underneath it”. Again, we have such a high debt-to-income ratio right now. It continues, “The amount of Canadian leverage into the system versus incomes is pretty astronomical — and we’ve seen debt servicing going up dramatically.”
In addition, “There is definitely a risk here that if mortgage rates go higher or unemployment were to rise or we hit the next recession, then this thing does end up in a deleveraging cycle.”
What does the Canada Mortgage and Housing Corporation have to say on this topic? It says that, this year and next, 2.2 million mortgages, worth over $675 billion, will be facing interest rate shock as they come due for renewal. That 2.2 million households is 45% of all households in Canada, and they have mortgage rates coming up for renewal shortly.
CMHC continues, “Most of these borrowers contracted their...mortgages at record-low interest rates and, most likely, at or near the peak of housing prices”. In this country, 45% of mortgages are probably at about the 1.5% to 2% mark, and they are going to have to renew at 5% or 6%. Mortgage “shock”, as CMHC calls it, is hopefully not leading up to what Bloomberg is forecasting, which is a collapse in the housing bubble.
If we remember back to July 2020, the Governor of the Bank of Canada said, “Our message to Canadians is that interest rates are very low and they're going to be there for a long time”. He then said, “If you've got a mortgage or if you're considering making a major purchase, or you're a business or you're considering making an investment, you can be confident rates will be low for a long time.” Maybe Webster's dictionary needs to update its definition of a “long time” to say that it is less than four years.
Of course, we all remember the Prime Minister trotting out in front of his cottage for an interview. When asked about the risks of this massive borrowing and perhaps rising costs to service it, he said, of course condescendingly, “Interest rates are at historic lows, Glen.” Guess what? They are not at historic lows.
If one wishes to have an example of how out of control things are, how fast things can change and how poor the government is at planning and how it hurts Canadians, the supplementary (A)s, which we debated just recently, showed an added $1.9 billion of needed taxpayers' dollars to pay for interest on the debt. This is $1.9 billion more than the calculations the government did just in February when it was doing the main estimates.
The main estimates are of course the cash authorizations required for the entire year. That was done in February. Between February and May, when the supplementary (A)s came out, interest rates were up, resulting in needing $1.9 billion more than the government thought it would have to ask for in February.
We often hear the government talk about the pharmacare plan. Of the 9,000 different available drugs in Canada, it would only cover birth control and diabetes medication. That plan is $1.9 billion for five years. If we think about that, just the government's mistake in February on what interest would cost Canadians on the national debt was off equal to the value of its so-called pharmacare plan for five years.
On taxes, in this budget there is $498 billion projected to be raised in taxes. That is up $166 billion from 2019, which the government is taking from Canadian taxpayers. That is $216 billion more in taxpayers' money being taken by the government since 2015, or 76%. That is up $50 billion from just two years ago, yet somehow we have the government telling doctors, small businesses and farmers that they need to cough up a little more, less Canada slips into some dystopian hell. Again, it is $216 billion more than when the government took over. That is 76%, yet if we do not not get a bit more, Canada will fall into dystopian hell.
The Deputy Prime Minister said, “What kind of Canada do you want to live in [without this extra few billion dollars]? Do you want to live in a country where a teenage girl gets pregnant just because she doesn't have the money to buy birth control?” Apparently, over the last nine years they did have money to buy birth control, but somehow, after $216 billion more in tax hikes against Canadians, now teenage girls are facing this.
Interest on the debt is $291 billion for the next five years. That is equal to an entire tax haul when the Liberals came to power. If one thinks about that, just the interest for five years will be equal to our entire tax haul in the year 2015.
I will end with another quote from Churchill: “Socialism is the philosophy of failure, the creed of ignorance, and the gospel of envy.” I think we can very easily substitute the word “socialism” with “Liberal government” when we look at this budget.