Mr. Speaker, Canada is an amazing place that builds incredible things. This is something that I have learned over the last six months I have been the shadow minister for industry and technology in Canada.
I have seen, first-hand, Winnipeggers building part of the F-35 fighter jet, the world's best, most powerful fighter jet, right here in Winnipeg. It is incredible what Winnipeggers are building. Then here in Ottawa, I have seen Mission Control, a company that is building a lunar rover. We have people in Ottawa who are building something that is going to traverse the lunar landscape and send information back to Canada.
It is incredible what Canadians are building today, what they have built in history and what they will surely build into the future. I feel very hopeful about the future, especially when we consider how many natural resources this country has, and how hard-working and how educated our people are. There is so much to be hopeful for.
Unfortunately, we are in very turbulent waters, without land in sight. Every single month we have over two million people, in a country as prosperous as Canada, going to food banks because they cannot afford to feed themselves. I have done work locally in Winnipeg, reaching out to the food banks there, and it is shocking what they are seeing. For the first time in their long histories, they are seeing full-time dual-income households having to go to food banks because they cannot afford to feed their families. These are two-parent, two-income households. That has never happened to two-income households to this degree in Canada.
We are seeing that half of my generation, the millennials, will never be able to afford a home, despite Canada being the second-largest landmass on earth, with really everything we could possibly need to build houses. We are working harder than ever, yet we will not be able to afford homes. It is quite shocking that this is happening in Canada despite all that we have, all that we are creating and everything at our disposal.
Why is this happening? Why does it feel like working people are spinning their tires? Well, there are a lot of reasons for that, but one of them is the economist-friendly word “productivity”. We are having a productivity crisis in this country. When I engage with people in my community, often their eyes will glaze over about productivity. I totally get it. We have heard, and I have heard, from business leaders, economists and the Bank of Canada that productivity is one of the number one issues when it comes to the standard of living in Canada, and it is in a crisis.
In fact, Tiff Macklem, the governor of the Bank of Canada, said last month what is most concerning is that, “unless we change some other things, our standard of living as a country, Canadians, is going to be lower than it otherwise would have been”. When he was talking at the press conference, giving this update about the Canadian economy, he said the standard of living was going to be up, but now it is going to be lower.
We are going to be poorer, and this is out of the mouth of the Bank of Canada governor. He is telling Canadians and parliamentarians that we should all be very concerned about this, and that we are going to be poorer as a country if we keep going down this trajectory.
Of course, there are world factors in that, such as the trade war, but many of these issues existed long before Trump 2.0 ever came along. We saw this a year and a half ago, in March 2024, when the senior deputy governor of the Bank of Canada, Carolyn Rogers, said about productivity that it is an emergency, and “it's time to break the glass.” It is time to sound the fire alarm. It is time to evacuate because the productivity is so bad.
How does this relate to everyday people? What most people think when we say that we have a productivity problem is, “What, do I have to work harder?” That is not what it means.
Nicolas Vincent, external deputy governor of the Bank of Canada, said, “Canada’s affordability problem is really a productivity problem. [If we want] to make things more affordable, we need to raise our income. And the way to grow our income is by increasing productivity.”
It is mission critical that we fix this productivity problem, and the results are very stark. In fact, after 10 years of Liberal government and the way that they have approached the economy, we have had very poor results when it comes to productivity. In fact, it has barely grown at all since the Liberals have been in power. We often compete with the U.S. Obviously, they are our biggest buyer for our trade, but they are also our biggest competitor when it comes to businesses selecting where they are going to build factories, hire more workers and where they are going to innovate.
The U.S. is our biggest competitor. Our productivity is 30% lower than that of the U.S., and in real U.S. manufacturing, the construction investment has been up over 300% since 2008. Canada's has been flat since that time. We are competing against a country that is investing 300% more in real manufacturing than we are. U.S. firms invest triple what Canadian firms do. A Canadian firm is investing about $4,100 per worker annually in our workforce, and the U.S. is investing over $12,800 per worker annually.
For people to understand, let us say someone works in an office and everyone works on their computers. It is as if the person beside them is working on modern computer technology, with AI, virtual calling and a smartphone. They have all of those things. This person can be just as smart as them and work just as hard as they do, but they are trying to do the same job with dial-up Internet on a 1990s computer. That is the reality when we talk about investing in our workforce and what we are up against with the behemoth that is the U.S.
We used to be more on par with investments per worker. Our productivity used to be a lot closer, but now the U.S. is leaps and bounds ahead of us, especially after the last 10 years. It is so bad that, if we were to just catch up to where the Americans are in productivity, our individual per capita GDP, or per capita output into the economy, would be $20,000 higher per worker in Canada. That is how much it would generate economic growth and productivity. As we have heard from the Bank of Canada, when we increase our productivity, we increase our incomes and the standard of living for Canadians.
Why is our productivity suffering so much? It is not from a lack of effort, innovation, enterprise or education. One of the main causes is the regulatory burden. Companies spend at least $51 billion a year meeting regulatory requirements, according to the CEO of Food, Health & Consumer Products of Canada. He said that at industry committee, where we are currently studying productivity.
The Business Council of Canada said, “Businesses across every sector, from natural resources to housing to finance, rank regulation as the single biggest barrier to new investment in Canada.” Regulation is a big factor of why we are not producing as efficiently as other countries, predominantly the United States, which is our largest competitor.
Again, why is this? We have seen the results over the last 10 years. As I have said, under Liberal governance, the country's productivity has been relatively flat. If we think of Canada as one worker, we would think that, over time, we work hard and hope our wages would go up. That is mostly the career trajectory of the average working Canadian. It is as if Canada, as a worker, has somehow not had a raise, improved their productivity, gained more experience or created more value since 2014. This country has not, in essence, had a raise since 2014, despite all of the inflation. That is one way to understand the magnitude of what we are facing under 10 years of really poor economic performance led by government policies at the federal level.
We see things like, infamously, the Liberals' Bill C-69, which I think really shows what the government is about. The Liberals have made it incredibly hard to build large projects. They have denied this for a long time. We have been banging this Bill C-69 drum, but it was really proven in large measure by the new Liberal leader, the new Prime Minister of Canada, governing the same bunch of Liberals who have been voting on these policies for over a decade. He made a new level of bureaucracy to go on top of the disaster of a mountain of bureaucracy they have created, which has made it very difficult to be successful in this country as a large creator of manufacturing or resource development, and the Liberals are going to pick what special companies get to go ahead and skip all the regulatory burdens they have created, which all the other companies are going to have to go over. That is just one example.
The Liberals also have the industrial carbon tax, which increases the price of energy on Canada's largest manufacturers. It is more expensive to make steel here because of things like the industrial carbon tax.
Again, our taxes need to be competitive. Our regulatory environment needs to be such that, when a business, such as an auto sector business, is saying that it could expand in Canada or in the U.S., it is going to go where the best bottom line for it is. Therefore, it is going to look at where to get the fastest permits, there are the fewest regulatory hurdles and it can make the most profit so it can hire more people and invest in more technology to be more efficient and have more output.
Time and time again, long before Trump 2.0 came along, businesses were upping and leaving for the U.S., or rather than expanding here, they were expanding down there. Now that Trump 2.0 has come along, it has exacerbated all of the mess the Liberals created over the last decade, which is impacting the cost of living.
Looking at this, we saw in the last election that the Prime Minister, the Liberal leader, said that he was going to be the one to change this and that he was going to bring forward a transformational budget. We have seen that that is not really the case.
The Liberals have made a few tweaks around the margins. Finally, after a decade, they said that productivity is a problem and they want to work on the economy. Thank God, but they have only made a few tweaks around the margins.
The only party that is going to make the transformation to the regulatory and taxation burden we have in this country so Canada can have a better standard of living is the one that has been saying the same thing about this for 10 years, and that is a Conservative majority government. That is what we need to transform the economy and increase the standard of living and the opportunities for Canadians.