Mr. Speaker, I am very pleased to take part in this debate to clearly demonstrate that we need to take positive action to help the Canadian industry, which is currently in a critical situation. Unfortunately, this is nothing new. It is important to take the right approach, but we know that the government has adopted an approach that, in our opinion, is not the right one for the Canadian auto industry.
I would remind members that, over the past 10 years, auto production in Canada has decreased by nearly half. In 2016, when the Liberals came to power, 2.3 million cars were being made in Canada. After 10 years of the Liberals being at the helm, there are now 1.2 million cars being made here. Since the Liberals came to power, the Canadian auto industry's output has decreased by about half. Things have not improved since the new Prime Minister took office. The auto industry has lost 5,000 jobs. That is not something to celebrate. It is very serious. Businesses have literally shut down. At Paccar on Montreal's north shore, 725 people did not get their contracts renewed. They lost their jobs.
Of course, that has had a major impact on the very powerful sector in Ontario, but also across Canada. We know that hundreds of companies in Quebec work hand in hand with the automotive industry and are directly affected by the problems the industry has been facing for more than 10 years, particularly the decline in automotive production in Canada.
Now the government has introduced a strategy to supposedly help the industry. The approach developed by the government involves subsidies: $2.3 billion in subsidies to buy EVs, most, if not the vast majority, of which are not manufactured in Canada. We believe that this is the wrong approach.
First, a subsidy is money that is taken from workers' pockets. I am tempted to say that the money is taken from taxes, particularly the GST, but I cannot say that. For those listening to us right now, every penny they pay in GST is used solely to pay the interest on the debt. Incidentally, that debt has doubled since the Liberals formed government, and it is accompanied by a deficit of about $80 billion, the likes of which we have never seen. That is since the current Prime Minister took office.
Subsidies do not fall from the sky. The money is collected from workers and distributed by the government, which chooses the winners and losers. This is not the right approach, especially since it can have serious adverse effects. I would like to point out that the idea of subsidies has been widely criticized. Auto expert Antoine Joubert wrote that there have indeed been government subsidies, but that they have had an adverse effect. According to Mr. Joubert, these are “fake rebates”, because in three months' time, we will see that the real cost of the car has not changed. He said that the problem is the message the public is getting, the implication that buyers will receive a $5,000 gift, when that money is going directly into the pockets of the automaker, not the citizens or the buyers. “Please don't try to convince us that taxpayers are getting their money back”, Antoine Joubert wrote.
Yesterday, Philippe Léger wrote in the newspaper Le Journal de Montréal that these subsidies are essentially meant for certain classes of Canadians who do not need such assistance. In addition, he said, it is well known that, with demand rising, manufacturers will be incentivized to raise their prices. In short, it is a bad idea masquerading as a good idea, but it is not the right approach to help the industry.
First, let us discuss the government's funny business regarding the subsidy. The government proudly said that it was going to help people buy EVs. It said that the subsidies would be targeted and that they would help the industry. As we all saw, it did not necessarily help consumers, and it turned into quite a boondoggle for the industry. As soon as the government decides to pick winners and losers, well, that distorts the market, which causes unfortunate effects.
Members may recall that, last year, when January started, buyers were entitled to a $5,000 subsidy. All of a sudden, on January 13, with no warning and with no mitigation measures, poof, the $5,000 subsidy was cut, just like that. People who were planning to buy a car, who had done their math and had gone to their dealership were suddenly told that the subsidy no longer existed. That is what I call the Liberals' half-baked way of doing things.
Later, on June 12, the government confirmed that the subsidies would be reinstated. The subsidies were suddenly cut on January 13, and then on June 12, two experienced ministers from this government advised people to wait, saying that it would happen, that they should not be discouraged and that the subsidies would be reinstated. We asked when this would happen and the Liberals told us that they would look into it, that it would happen. Nothing happened in June, July, August, September, October or November.
People who wanted to buy a car and who were told on June 12 to wait for the subsidies to be reinstated waited six months for nothing. Then, the budget was tabled on November 4. Everyone expected the subsidies to return. What happened? Nothing. As a result, all those who were waiting for the subsidy were left out in the cold.
Then what happened? Last week, the government changed its mind and brought back the subsidy. It is hardly surprising that EV sales are struggling. I know that those people over there are making it up as they go, meddling in things that are none of their business and picking winners and losers. They convince the supposed winners that subsidies are finally coming back, but then they do not come back, and then they finally do. That totally distorts the market, which is exactly what happened.
Going back to Antoine Joubert, he wrote that it was a surreal solution that ended up destabilizing the industry by creating a highly artificial market. This was another of the government's blunders, although it could care less about the impact on the industry or on dealers.
People do not need subsidies to choose electric cars. I am the living proof of that, or maybe I should say the driving proof. Two and a half years ago, I assessed the situation, assessed my needs and decided that an electric vehicle would work for me. Electric cars may not work for everyone, but they fit my needs. I bought a used electric car. There was no subsidy. However, it cost half the price of a new vehicle.
Incidentally, when an electric car works well, it works really well. Problems are rare once it has been properly broken in. There are some very good deals to be had right now when it comes to used electric vehicles.
As I said, I bought a used electric car, without subsidies, without obligations, and it was my personal choice. I decided it was the right thing to do. I have driven 120,000 kilometres in that car and have not had any problems. It is possible to go electric without subsidies. When the government gets involved, there are more problems.
That is why we are suggesting an approach that directly helps car buyers, workers and the industry. How would it work? Removing the GST on new cars manufactured here in Canada would kill three birds with one stone. Eliminating the GST on new Canadian vehicles would help buyers, workers and the industry. It is a win-win-win situation. What is more, it does not cost taxpayers anything. We are not going to take $2.3 billion out of workers' pockets to choose the winners. Anyone who wants to buy a car will be encouraged to buy a Canadian car to help the industry and also to help us as Canadians.
I would like to move this favourable amendment:
That the motion be amended by adding the following:
“, the GM facility in Oshawa, the Stellantis facility in Brampton, the Paccar facility in Sainte-Thérèse, and all other severance packages for Canadian workers in the auto sector.”.