Hold my beer.
House of Commons Hansard #37 of the 45th Parliament, 1st session. (The original version is on Parliament's site.) The word of the day was economy.
House of Commons Hansard #37 of the 45th Parliament, 1st session. (The original version is on Parliament's site.) The word of the day was economy.
This summary is computer-generated. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.
Opposition Motion—Cost of Deficits Members debate the Liberal government's economic policies, focusing on deficit spending's impact on investment, jobs, and the cost of living. Conservatives contend deficits drive down investment, citing 86,000 net job losses and "unsustainable" finances, urging spending cuts. Liberals assert Canada has the lowest net debt-to-GDP ratio in the G7, attributing inflation to global factors, and defending investments and tax cuts. The Bloc Québécois agrees with "abysmal" management, criticizing forgone revenues and oil subsidies. The NDP proposes an excess profits tax. 33100 words, 4 hours.
Opposition Motion Members debate Canada's economic state. Conservatives argue Liberal government spending fuels inflation, job losses, and declining investment, worsening the cost of living crisis. They advocate for fiscal discipline and private investment. Liberals defend their record, citing Canada's strong G7 standing, and highlight initiatives like tax cuts, housing programs, and a plan to "spend less to invest more" in the upcoming budget. They attribute inflation to global factors. 25200 words, 3 hours.
Eric Duncan Conservative Stormont—Dundas—Glengarry, ON
Mr. Speaker, hold my beer, as the expression goes, absolutely.
We have seen the independent Parliamentary Budget Officer predict the deficits of the new Prime Minister, with the same old Liberal government and same old Liberal team adapting the same old failed approach of endless deficits, never-ending deficits with no plan to balance the budget. The deficits are at least double what Justin Trudeau's deficits were going to be, according to the Parliamentary Budget Officer.
Every dollar government spends comes from the pockets of Canadians. It adds to higher taxes, higher food costs, a higher cost of living and higher costs for housing. We are not seeing a good return on investment on the tax dollars the Liberals are spending.
As we have in our opposition day motion, every dollar that leaves our country and flees in investment is fewer jobs and lower wages. On this side of the aisle, we are going to stand up for Canadian workers and for Canadian investments for a brighter Canadian future.
Arielle Kayabaga Liberal London West, ON
Mr. Speaker, it is clear that Prime Minister Trudeau is still part of their economic plan and their plan to government, even though it did not work in the last election.
Perhaps the member opposite can tell us why he thinks that the child tax benefit is a waste of money? This is a tax credit that has lifted over 400,000 children out of poverty. Why does he think that investing in child care across this nation, an economic policy, is a waste of money?
Also, what is the obsession with talking down on Canadians and Canada? Today in question period, we heard, in almost every question, the Conservatives talk down Canada. What do they have to actually offer Canadians?
Eric Duncan Conservative Stormont—Dundas—Glengarry, ON
Mr. Speaker, I am proud to be Canadian. I am proud to stand up for Canada. What I am ashamed of and what I am criticizing is the Liberal government. That is what we are talking about here. Members will notice that the Liberals are doing everything they possibly can today to talk down their own former prime minister. They do not want us talking about Justin Trudeau anymore.
The reality of the situation is that Justin Trudeau may be gone, but the new Prime Minister is making the situation even worse financially, with larger deficits and more spending. Our immigration system is in chaos, and there is no end to the housing crisis. We need to build more houses. We are actually seeing things slow down. There is example after example of these things. The Prime Minister did not just make any promise; he made the promise that he would get a deal with the United States, and he has broken that promise. He is leading us toward the same disastrous financial record Justin Trudeau had. It is not a new government; it is the same tired Liberal Party.
Alexis Deschênes Bloc Gaspésie—Les Îles-de-la-Madeleine—Listuguj, QC
Mr. Speaker, I commend my colleague for his passionate speech. One of the problems we have when we talk about public finances is that there is no transparency right now. We still do not have a budget.
I would like to discuss something with my colleague. When the votes were tabled in June, we noticed certain things. First, transfers to individuals will hardly increase at all, and federal bureaucratic operating expenses appear set to skyrocket by 16%. Spending on consulting firms would explode by 26% and equipment purchases would increase by 300%, not counting military procurement.
What does my colleague think of this preliminary overview we have of public finances?
Eric Duncan Conservative Stormont—Dundas—Glengarry, ON
Mr. Speaker, there is a major problem with transparency on the part of this Liberal government when it comes to the country's budget and finances.
There is a major problem with transparency when it comes to the Liberal government. I can speak longer than the 30 seconds I have to elaborate on that, but I will agree that we are seeing spending on consultants going up significantly. This was after the Prime Minister said that he was going to cap spending at 2%. The first bill he tabled increased spending by 8%, with billions of dollars more on consultants.
Now it is $742 million on a gun confiscation program that the Liberals' own Minister of Public Safety said will not be effective. There are many examples of waste that have come from the government; if that money were back in the pockets of Canadians, maybe they could afford food.
Anna Roberts Conservative King—Vaughan, ON
Mr. Speaker, we have a serious situation in this country, with 86,000 people out of work. Earlier today, during question period, the Minister of Foreign Affairs stated that they are going to support the Canadian population with EI. The people in my community do not want EI; they want jobs. They want to work. How would the member address that?
Eric Duncan Conservative Stormont—Dundas—Glengarry, ON
Mr. Speaker, I could not agree more on just how tone-deaf the Minister of Foreign Affairs was today when we were talking about the importance of the auto sector and supporting auto workers and mill workers right across this country. Her answer was not to worry, because the government was going to give them extra weeks of EI. This is absolutely out of touch.
I could not have said it any better than the member did. Workers want a job. They want good pay, good benefits, a good pension, a reasonable home to live in and the ability to afford food to feed their families. It is sad that after 10 years under the Liberals, continuing with the new Prime Minister, it is the same old Liberal Party, and Canadians are struggling over and over again to get basic necessities. It is shameful that this is the country the Liberals have created after 10 years.
Billy Morin Conservative Edmonton Northwest, AB
Mr. Speaker, it is an honour to rise in the House. I thank my colleague for sharing his time with me.
For 10 years now, the Liberal government has made our country weaker with overspending and deficit after deficit. Through the Liberal government, the promotion of government dependency in regard to economic development has become the staple and the identity of Canada, especially in indigenous economic development.
The current projection for the Liberal government deficit, for this year alone, is anywhere from $60 billion to $100 billion. Indigenous peoples and Canadians have questions. Why is it that the government, year after year, gets to spend recklessly and go billions and billions over budget, with little to no plan when, through the Indian Act and Indigenous Services Canada, it enforces financial and management penalties if first nations go over budget?
Why is it that first nations have default and third party management enforced on them for one challenging fiscal year, but the Liberal government gets to put Canada in debt to the tune of trillions of dollars and have billions of dollars in annual deficits? Maybe the government, led by the supposedly brilliant banker, should be subject to the same penalties it enforces upon first nations.
It seems to be rules for thee, not for me, when it comes to the government.
The deficits have cost 86,000 net job losses alone in our country. Indigenous unemployment and youth unemployment have combined to exclude an entire generation of young indigenous workers from contributing to Canada's economy. Deficits hurt community workers, frontline workers, teachers and health aides.
First nations communities see their pay stagnate while living costs soar. Just as the rest of rural Canada does, we already struggle to recruit teachers, social workers, health care workers and other frontline staff needed in our communities.
Ottawa's reckless spending does not lift up indigenous workers. It pushes them out of the workforce through affordability pressures and housing shortages.
Indigenous Canadian unemployment is exacerbated by the Liberal mismanagement of immigration and temporary foreign workers. For years, we have had workers in the indigenous communities wanting their chance to contribute to local economies in rural Canada and urban centres, but they feel left out and forgotten because of Liberal mismanagement.
It is time to put Canada first. Canadians are scared; they are scared about job losses and how they are going to put food on the table and pay the bills. Food inflation above the Bank of Canada's target is not abstract. It means $15 milk in northern community stores, families choosing between gas and groceries and higher costs for traditional foods and supplies.
People accessing rural grocery stores were hit hard with both rising food costs and the cost of fuel to get them to and from their reserve communities. Rising fuel and transportation costs erode band budgets, forcing leaders to cut community programs or delay infrastructure maintenance. Rising costs force chiefs and councils to choose between health care and social supports. This has exacerbated housing shortages and lack of access to clean drinking water, as well as increasing maintenance costs for public service vehicles and preventable costs for indigenous communities, which Canadians continue to pay for later.
Increased costs of living hit indigenous post-secondary students hard, with increased costs to study and increased costs for housing, for travel and to meet cultural and family obligations.
Indigenous students are a part of the record line-ups at food banks. The treaty right to education funding has been watered down under the Liberal government. These are our future leaders, but they are falling behind the rest of Canada.
Indigenous communities continue to struggle in the Liberal deficit environment to create and sustain their own-source revenue initiatives today. When the dollar weakens and borrowing costs rise, first nations own-source revenues and trust funds lose value. Inflation cancels out indigenous progress. Every gain from new businesses, trading programs and economic partnerships is swallowed by higher costs.
Local indigenous entrepreneurs are priced out of equipment loans and procurement opportunities. Youth training programs face cost overruns with no adjustment in funding, and $53.9 billion leaving Canada for the United States means fewer partnerships for indigenous-led projects.
Energy, food security, natural resources, mines, operations and tourism ventures struggle to attract investors.
Real reconciliation requires capital staying in Canada to grow indigenous economies, not capital fleeing and the government trying to play hero by making federal tax dollars the focus for economic development in our communities. Indigenous nations want the government to get out of the way so that we can create our own economies alongside the rest of Canadians.
Ottawa's deficits raise interest rates, which raise borrowing costs for first nations and indigenous development corporations, making self-financing more challenging or near impossible. The promise of reconciliation through economic inclusion rings hollow when inflation eats away at every grant dollar and makes indigenous infrastructure 30% to 40% more expensive to build. What indigenous prosperity needs instead is fiscal discipline that makes every dollar count; targeted investments, not blanket deficits; stable inflation, so indigenous nations can plan multi-year infrastructure builds without surprise cost escalations; true partnerships in which indigenous communities direct investment to local priorities and not to Ottawa's vote-buying announcements; and economic reconciliation grounded in accountability, stability and productivity, not recycled Liberal talking points.
The traditions of first nations people often centre on not taking more than what one needs, not wasting one part of the buffalo or the moose that we hunt to sustain us. That is sustainability. This aligns with the principle of balancing our budget and eliminating our deficits. This aligns with our values as indigenous people.
When I became chief of my nation, oil prices were down, which affected our local economy. We projected an $8-million deficit, or 10% overspending, for my first nation alone. We had overdependence on band office jobs. We had very little in terms of external investment confidence in our Enoch Cree Nation. We knew we had to make tough fiscal decisions and really do the work to restore investor confidence and our membership confidence to have good governance in our first nation and have a real plan to grow and diversify our economy.
Therefore, we created our first financial law, which holds our Enoch government accountable for how it spends. We made ourselves investable again, which resulted in hundreds of millions of dollars in economic development on and off our reserve for our members and for Albertans. We invested in our natural resource sector and partnered to build the first greenfield large-scale natural gas power plant in a generation in Alberta. We grew business and entrepreneurship; we focused less on government-dependent jobs, and we became stronger. We readily partner with other first nations and indigenous communities to make everybody else stronger as well.
The government talks about “Canada strong”, but I think the Liberals really need to reflect on the fact that deficits make Canada weaker. We think in terms of seven generations in our indigenous communities. The current government seems to be adding seven generations' worth of debt and burden to all Canadians in the future.
Bruce Fanjoy Liberal Carleton, ON
Mr. Speaker, does the member see a role in the federal government's making targeted investments to improve the economic prospects and the future of indigenous Canadians?
Billy Morin Conservative Edmonton Northwest, AB
Mr. Speaker, the member implicated the government in needing to make targeted investments in first nations and indigenous economies. I thank him for that question, but I would rephrase that. What we need is for the government to get out of the way. We have always known how to run our own economies. We have always known how to stand on our own two feet, and we need the government to get out of the way so that we can get rid of red tape, we can get rid of the Indian Act and we can get rid of these different policies that are still being upheld by the Liberal government today. Then we can actually build Canada and put Canada first so that we can have this economy back on track.
Andréanne Larouche Bloc Shefford, QC
Mr. Speaker, my colleague spoke at length about the importance of nation-to-nation relationships and supporting projects designed and led by and for indigenous peoples. Last year, I met with a group that came to talk to me about the Yänonhchia' project. I hope I am pronouncing that correctly.
This project, which needed $150 million in funding, aimed to facilitate access to affordable capital for indigenous communities to support a housing renewal model. These truly were projects that had to be designed and led by and for these communities.
I would like to hear my colleague's comments on this project and on the importance of funding this type of initiative.
Billy Morin Conservative Edmonton Northwest, AB
Mr. Speaker, government certainly has a role in investing in housing for first nations communities. Federal jurisdiction dictates that first nations in particular have to work directly with the government and not necessarily provincial government or municipalities first.
Again, I highlight that we have the resources. Many of our communities are rural, right next to the biggest forests in Canada. In B.C., we have first nations ready to invest in softwood lumber and to build homes in first nations communities.
However, in terms of the bigger picture, I am really disappointed in the government and how it is downplaying and harming these larger industries and not allowing first nations to step forward in those partnerships to build homes on reserve.
Ellis Ross Conservative Skeena—Bulkley Valley, BC
Mr. Speaker, I thank the member for an incredible speech regarding deficits. I think the Liberals missed the point of what he said.
I was in the situation of remedial management and third party management, and it was very humiliating. It was for one year of unmanageable deficits. It was very humiliating, and that is why I went after an economic base.
What is third party management, and what would happen if Canada was subject to the same rules that many first nations chiefs and councillors are subject to?
Billy Morin Conservative Edmonton Northwest, AB
Mr. Speaker, third party management is an ISC policy and stipulation. If the government cannot spend its dollars right, it needs oversight, and rightly so. It is humiliating for first nations, and sometimes humility is part of what we are as first nations.
If this applied to Canada, we would not have 10 years of deficits and would not have trillions going to other countries, externally. If Canada was held accountable to the same degree that first nations are held accountable, this country would be in a better situation. Sovereignty would not be harmed, and we would be on the path to prosperity.
Guillaume Deschênes-Thériault Liberal Madawaska—Restigouche, NB
Mr. Speaker, last month, I had an excellent meeting with representatives of the Eel River Bar indigenous community in my riding. We talked about housing.
This is a major issue in that community. Since 2023, the federal government has invested more than $10 million in the community through the rapid housing initiative. We have also invested over $375,000 through the affordable housing fund.
Would my colleague agree that this is excellent news that meets real needs in communities?
Billy Morin Conservative Edmonton Northwest, AB
Mr. Speaker, since first nations and indigenous communities are so far behind, investments in housing are always good.
Again, I would implore the government to think bigger, not just about subsidies and social housing. Those are good things that will be needed in indigenous communities and all Canadian communities for the rest of time, but there is also a market for housing, and first nations could get rid of the Indian Act stipulations that go against mortgages on reserve. That is something else we need to focus on to create the space for them to build their own housing.
Juanita Nathan Liberal Pickering—Brooklin, ON
Mr. Speaker, I am thankful for the opportunity to participate in today's opposition motion debate. I will be sharing my time with the member for London West.
The global economy has changed, and Canada must change too. We need to build more housing and infrastructure and support industries that are essential to our economic growth. This spring, Canadians called for a serious and ambitious plan, and we are working hard to prepare and implement that plan.
First, our colleague the Minister of Finance has already announced that our new government will table the 2025 budget on November 4. Second, as he outlined this week, the budget will be based on a new capital investment budgeting framework. This framework will distinguish between current operating expenditure and capital investments, which will help the government prioritize investments that will deliver long-term benefits for Canada and Canadians.
The operating expenditure will be balanced by 2028-29. The 2025 budget will rise to the occasion. It will be a budget to build the strongest economy in the G7 and a budget to build a strong and free Canada.
The 2025 budget will do something else that is very concrete. It will make life more affordable for Canadians. We understand that the cost of living remains a constant concern for Canadians. We have already announced several measures to help them.
We know that one of the challenges is the cost of housing. We are facing a housing crisis, which is why we are implementing an ambitious new approach to increase the supply of housing in Canada. For example, the Prime Minister recently launched a new federal agency responsible for building affordable housing on a large scale, which is called Build Canada Homes. With Build Canada Homes, we will combat homelessness by building supervised and transitional housing in collaboration with provinces, territories, municipalities and indigenous communities. This agency will build community-based, highly affordable housing for low-income households and will partner with private developers to build affordable housing for the country's middle class.
To help Canadians buy homes, we proposed eliminating the GST for first-time buyers of new homes valued at $1 million or less and reducing the GST for first-time buyers of new homes valued between $1 million and $1.5 million. Furthermore, as Canadians demanded, we put money back in the pockets of all Canadians by cutting taxes. Since July 1, all Canadians have benefited from a tax cut that will save a dual-income family up to $840 per year starting in 2026. I am proud to note that 22 million Canadians will benefit from this tax relief. They can now keep more of their paycheques and use them according to their priorities, as they wish.
In these times of trade tension with the United States, we understand the importance of continuing to support Canadians affected by this dispute. Since the beginning of the trade dispute, we have put in place a robust Canadian system of economic support programs to help businesses and workers directly affected by U.S. tariffs. For example, we have temporarily suspended the one-week waiting period for employment insurance benefits, and we have temporarily suspended the rules surrounding the processing of severance pay to prevent workers from having to exhaust their severance pay before receiving the employment insurance benefit. We have made it easier to access employment insurance by increasing the unemployment rate applied to regions for a period of six months. We have also made it easier for employers and workers affected by tariffs to access the work-sharing program. Employers experiencing a decline in business activity due to the threat or potential implementation of tariffs may be eligible for special measures under the work-sharing program.
Our new government has also announced a series of targeted measures to support Canada's steel, aluminum and softwood lumber industries. For example, our government will invest $70 million in labour market development agreements with provinces and territories to provide training and income support measures to nearly 10,000 affected steelworkers.
We are also implementing new measures to help the lumber industry transform and compete. We are providing up to $700 million in loan guarantees to alleviate the current pressure on the lumber sector, and we are building with a focus on using Canadian materials in construction. We have changed the federal contracting processes to require companies that contract with the federal government to source Canadian lumber. In this way, our government is ensuring that Canadian workers benefit from our investments during these challenging times.
The 2025 budget will be a generational investment in our future, and with it, we will build a Canada of the 21st century. This budget will set out a clear plan to build the strongest economy in the G7, based on generational investments in housing and infrastructure, while reducing the cost of living for Canadians. It will stimulate private investments here in Canada and strengthen our ties with trusted trading partners and allies, moving our economy from reliant to resilient. At the same time, the government will exercise new fiscal discipline in its day-to-day operations to make services more efficient and reliable, while focusing resources on long-term growth to ensure Canada's prosperity today and for decades to come.
Elizabeth May Green Saanich—Gulf Islands, BC
Mr. Speaker, I apologize to the hon. member that I am going to ask a question that was not raised in her speech, but earlier by members of her party who put things before the House that I would like to challenge a bit. The Darlington project is being touted as proof that the government is bringing economic benefit to Canada, but that project, to build an SMR, a so-called small modular reactor, if completed, will be the first one in North America. They are not operating anywhere. Well, they operate in China and Russia, but commercially, not in North America. At a $21-billion price tag, much of the consortium private sector builders are not Canadian. GE Hitachi is U.S.- and Japan-owned, and Kiewit Engineering is U.S.-owned.
Do we really want to be shipping that many billions of dollars to U.S. firms on an untested technology?
Juanita Nathan Liberal Pickering—Brooklin, ON
Mr. Speaker, as the member said, this is a new technology and it is the first time they are trying it. Anything that would give Canadians work is worth trying.
Cathay Wagantall Conservative Yorkton—Melville, SK
Mr. Speaker, I want the member to respond to something her colleague from Whitby said. He said the government will spend less so it can invest more, and he referred to the operating budget, which means it will have to lower expenditures on the operations side to have the funds to spend on more development.
Would she know what the cuts will be to the public service and programs the government will introduce so that it is spending less?
Juanita Nathan Liberal Pickering—Brooklin, ON
Mr. Speaker, the operating budget cuts will be for services or programs that are not relevant and are not maintained by the framework of the federal government. Each department is scrutinizing its budget and carefully making these cuts so that essential services and programs are not affected by them.
Patrick Bonin Bloc Repentigny, QC
Mr. Speaker, if we want to do something about high food prices, we need to tackle the real causes of rising prices. Climate change impacts are directly related to significantly higher food prices.
We need to step up the fight against climate change, accelerate greenhouse gas emissions reduction and develop well-funded strategies. We need strategies to address crop loss due to unpredictable weather, the droughts we are currently experiencing in Quebec, water shortages and flooding, which is also problematic. The government is backing down from the fight against climate change.
Does my hon. colleague agree that his government is backing down from the fight against climate change? Can she tell us when we are going to see positive action, not just backtracking?
Juanita Nathan Liberal Pickering—Brooklin, ON
Mr. Speaker, climate change is an important topic, and the Liberal government is very serious about it. Budget 2025 will seize the generational opportunity to transform our economy through ambitious investment and rigorous discipline, ensuring that every dollar goes further to help build the strongest economy in the G7.
John-Paul Danko Liberal Hamilton West—Ancaster—Dundas, ON
Mr. Speaker, the hon. member served at the municipal level, as have I. We have seen the impact that provincial governments have on affordability by downloading costs to municipalities and downloading costs to residents.
What role does the member see the provincial governments across Canada having in addressing affordability, and what more positive partnerships might be possible?