Mr. Speaker, we are here today to discuss the Conservatives' opposition motion on the new so-called sovereign wealth fund, or the Canada Strong fund, which the Liberals announced in their economic update. In short, the Conservatives' motion, which is a page long, argues that this fund should not exist and that the government should abandon it to limit our debt load, rather than increasing it.
There is one thing that I have to point out right away to those who are here today. It is not every day that the Bloc Québécois agrees with the Conservatives. In fact, that is a rather rare occurrence. I think the fact that I am announcing my intention to vote in favour of the Conservative motion really says something, and I think most members of my party intend to do the same. That is bad news for the Liberals, but it does not matter because they have a majority.
That is unfortunate, because if the government did not have this much-vaunted majority, then perhaps it would avoid making mistakes like this one. The Liberals are introducing the sovereign wealth fund as though they just reinvented sliced bread. They are saying that there are plenty of other countries in the world that have sovereign wealth funds and that by setting up such a fund, Canada will be able to get rich like those countries.
If I go to the bank and borrow $200,000 because I want to buy a bigger house or do renovations at home, I am not richer the next morning, because I took on $200,000 in debt. That is exactly what the Liberals just did. They just took $25 billion and are going to issue bonds, but they are forgetting something: the interest payments.
There is something else they are forgetting. There is now a sovereign wealth fund, this $25 billion, and they are going to have to do something to pay the interest. That is the Liberals' gamble. They tell us that, since we have $25 billion, we are rich. In fact, we are not rich, we just have debt. That is on top of the already monstrous debt that Canada has accumulated over the years, particularly under the previous Liberal government, which is still in power today. This government has been around for more than 10 years. I cannot wait to see which way this is going to go over the course of the next three years, because it is starting to be alarming.
Things have reached a point where the entirety of the GST is being used to pay interest on the debt. Not only that, interest on the debt is going to exceed the amount that Ottawa spends on health transfers. Soon, no one will be able to go to the hospital anymore. Actually, people will still be able to go to the hospital, but Ottawa will be too deeply in debt to keep paying its share of hospital costs. What will the government do then? It will cut transfers to the provinces. Still, it has a sovereign wealth fund.
Generally speaking,what is the point of a sovereign wealth fund? A sovereign wealth fund is often set up by countries that want to put money aside when they have surpluses in order to avoid creating hyperinflation in their country or in case certain resources currently being developed are no longer available in the future.
As members know, certain resources such as oil are non-renewable energy sources. Once oil wells have been depleted, that is it for oil. Some countries have been smart enough to set money aside. When the day comes that there is no more oil, they will still have money, instead of having spent it all. They will be able to continue helping their citizens. For example, they will be able to embark on an energy transition, as well as an economic transition, simply by setting money aside in all sorts of ways to continue funding the public services they want to provide to their people.
In this case, we are still wondering where all the cash reserves from Canada's oil industry went. The answer is simple. Not a single penny was set aside. All of it got squandered. Now the government is finally waking up and realizing that maybe it should have set some money aside, but it is a bit late. When we compare Canada to other countries, it is pretty clear that those countries are in a better economic situation than we are.
However, this raises a question. This sovereign wealth fund will have to be paid back. At the very least, if it is not paid back, the interest on the debt will have to be paid. How will the government pay the interest on the debt? If it cannot generate enough revenue to cover the cost of the debt associated with this sovereign wealth fund, what will ultimately happen? People will continue to get even poorer. What is the government's plan for making money to enrich Canadians? What will the sovereign wealth fund be used for? It is going to be used to invest in Canada.
That is rather broad. It could mean just about anything. The government is going to invest in Canada, but now it is telling us that it is going to invest to attract private capital. I find that interesting because, usually, when one wants to attract private capital, it is because private capital will make money. Why would private capital put money into investments that it does not currently want to invest in? That is the idea behind the sovereign wealth fund: take risky projects that the private sector is avoiding and ensure that investments are made and that the projects go forward. That is the exact same mandate as the Canada Infrastructure Bank, or CIB. Now, the government has conveniently decided to duplicate that structure with an additional $25 billion, with another bureaucratic pyramid and with more people being paid big salaries to manage it, rather than just giving the CIB the mandate to manage those additional funds. There is a lot I could say about the CIB in general, but that is not the subject of today's debate. What is the idea behind all this? What does it all boil down to? It is a charade. The idea is to put on a show, to announce the creation of a sovereign wealth fund similar to funds that other countries with money set aside have, when we do not have a penny to spare here. That is what is happening. The government is pretending to have something that it does not have.
I was saying that this debt will have to be paid back, or at least the interest will have to be paid. How will we pay the interest on projects that the private sector did not want to invest in in the first place because they were too risky and because the private sector thought it could not make money on them? What classic device is being used? Public funds are used to reduce the riskiness of projects and thus absorb the risks and losses if the projects do not work out, or at least ensure that the project is profitable for the private sector. If there is no profitability to begin with, the public would absorb the loss. How are we supposed to make money on something the private sector said it would not turn a profit and, on top of that, pay off the interest on the $25‑billion debt we just incurred? I am having a hard time understanding how the government is going to do that. I am going to need some serious explanations from the people on the other side of the House. For now, it is not very impressive. It is especially worrisome when the government gambles with taxpayers' money.
All this government is doing is using marketing tactics to sell us all sorts of pipe dreams. That worries me because, on top of everything else, the decisions around which projects will receive investment will not be made independently. The government is saying there will be an independent board of directors. How is it actually going to work? The projects to be funded by this much-touted sovereign wealth fund will be referred by the Major Projects Office. Which projects will be referred by the Major Projects Office? The Prime Minister will decide which projects get referred. What we are being told, then, is that the Prime Minister will select the projects to be referred to the Major Projects Office, which will then refer them to the sovereign wealth fund. This is surprising, because that is exactly what is happening right now with the Canada Infrastructure Bank. Someone will have to explain to me who is doing what, but that is another story.
How are they going to make decisions independently if the selection process is politicized right from the start? What does a politicized process mean? It means that the Prime Minister will choose projects based on what he considers to be good projects. A project that is considered good and promising is not always one that will turn a profit right away. What is even more concerning is that ordinary people are being invited to invest in this sovereign wealth fund, with the assurance that there is nothing to worry about and that their investment will potentially be guaranteed. Generally speaking, an investment is guaranteed when the return is lower. How does the government plan to attract private capital when it is guaranteeing individuals' investments and has to pay interest on a $25‑billion debt? The reality is that it could end up using accounting practices designed to ensure the public does not fully understand what is going on.
I am fascinated by this sovereign wealth fund where all the projects are chosen by the Prime Minister. The government is calling it a sovereign wealth fund, but I think it should be called “the sovereign's wealth fund”. We know we have a Prime Minister who draws a lot of inspiration from the monarchy, and I get the impression that is the direction we are heading in, a situation where the Prime Minister, all alone in his office, has complete control over what the future will look like and what will happen with people's money, and that is particularly worrying.