Mr. Speaker, I am pleased to rise and set the record straight. We have heard a lot of things this morning, but I believe that folks listening at home want the facts. They know we are facing the biggest energy crisis in decades, according to the director general of the International Atomic Energy Agency.
I am therefore very pleased to take part in today's debate on an issue that affects all Canadians. We are well aware that affordability is the number one concern of Canadians. We are talking about the cost of housing, the cost of groceries and, of course, the cost of gas. I also want to say that Canada is not immune to the global situation. In fact, we discussed this very issue with our G7 colleagues when we met last week.
Canada is proving itself to be a leader in affordability. Canada has taken targeted measures that will help families and Canadians across the country. I would even go so far as to say that, in international discussions, people often view Canada as a country that has used its fiscal capacity wisely to help families and households in their time of need.
The rapidly changing global environment is creating uncertainty for businesses, workers and families. People are saying that there is a fog of uncertainty shrouding the planet right now, and I would say that Canada, in such a context, is in a position to take concrete action to help people and certainly to help businesses, workers and households.
Faced with this situation, the government is focusing on what it can control, which is to build a stronger economy to lower the cost of living for Canadians and to build the strongest and most resilient economy in the G7. We are particularly mindful of the pressures caused by rising gas prices in a global environment marked by significant geopolitical tensions. As I said, Canadians fully understand the geopolitical situation facing countries around the world.
That is exactly why we acted. There have been a lot of speeches this morning, but what Canadians want to see is action, and that is what our government has been delivering.
The International Energy Agency has called this the most severe energy crisis in history. That is the backdrop that we are all facing. It is the largest energy crisis in history. In fact, that is why the measures we have taken in affordable housing, groceries and suspending the federal excise tax on fuel are making a difference in the lives of Canadians.
Last month, I joined the Prime Minister here in Ottawa to introduce a temporary suspension of the federal fuel excise tax on gasoline, diesel and aviation fuels. Since April 20 and until Labour Day, we are ensuring Canadians will not have to pay the fuel excise tax at the pumps. For us, this was a priority to help Canadians and businesses manage these global pressures. This is expected to reduce Canadians' bill at the gas station by 10¢ per litre on regular gasoline and 4¢ on diesel. This represents almost $6 when filling a typical 50-litre tank of fuel. That is meaningful support for Canadians and consumers.
This measure will also help reduce operating costs for businesses in the food, agriculture, housing, construction and trucking sectors, because we know that, with lower costs and greater financial strength, businesses can hire more workers and confidently build and export more products to global markets. It would also help Canadian families save on their transportation costs as they set out to explore our beautiful country this summer. The suspension is estimated to provide relief of over $2.4 billion in 2026 and 2027.
I just want to remind my colleague who was talking about additional revenues that, as I outlined in the spring economic update, two-thirds of the additional revenues that we have received have been used to support Canadian families at a time of need. This is just one of several measures we have put forward to alleviate the pressure of the higher cost of fuel on Canadian households and budgets.
I expect that my Conservative colleagues who are here this morning will support Bill C-30 because it is a bill that would actually put in motion what we have just discussed this morning. It is good to ask questions, and it is good to make speeches, but it is even better to vote in favour of a bill that would make a difference in the lives of Canadians. I can see in their eyes and in their smiles that they intend to vote, and we are going to look for that. Their constituents are going to be watching to see if they vote for support that would reduce fuel costs.
Right after taking office, the Prime Minister cancelled the federal consumer fuel charge, effective April 1, 2025, in a move that directly helped Canadians save money at the pump. We have taken a suite of measures to reduce the price of fuel across the country. Our government also removed the requirement for provinces and territories to have a consumer-facing carbon price as of that date. These actions helped reduce gas prices in most provinces and territories by about 18¢ per litre in comparison to 2024‑25. Our measures have been targeted and are effective. If we compare the measures that Canada has been taking among the G7, we will see that they are very targeted. They have been very effective, and a number of countries are looking for the leadership of Canada, in terms of the measures that will help Canadians.
For many Canadians, the cost of groceries and basic necessities remains a constant concern. We know that, because that is what we are hearing right across the country. That is why we decided to take action. We did not wait; we decided to take action to support families.
We are all aware that the pandemic caused a global spike in inflation that drove up the cost of food and essentials. People watching at home understand that Canada is not immune to global pressures such as climate change, tariffs, supply chain disruptions and fuel costs. People understand that Canada is not immune to all this, but we are able to act on what we control. That is exactly what we have done.
Food prices have gone up faster than inflation due to shocks caused by global supply chain disruptions, new tariffs, climate-related weather events and, as I already mentioned, geopolitical tensions.
In the face of this reality, our government has taken concrete steps to make life more affordable in the short term, while strengthening food security and supporting innovation in the agriculture and agri-food sector.
I spoke with our colleagues at the Union des producteurs agricoles, or UPA, to better understand how we can become more resilient, produce more here at home and be less dependent on foreign imports.
To support those most affected by rising food prices, in January, our government announced the new Canada groceries and essentials benefit, a very targeted and important benefit that will help over 12 million Canadians.
Every member of the House here today has constituents in their ridings who will benefit from this measure because it will help people cover the basics of everyday life. This measure is based on the GST credit. The benefit will provide an additional $11.7 billion in support over six years. That is close to $12 billion that will go into Canadians' pockets. First, we are talking about a one-time payment that will be issued starting on June 5.
I am counting on all members of the House to tell their constituents that many people will receive this assistance on June 5. The payment will be 50% of the total annual GST credit amount for 2025‑26 and will provide immediate assistance of $3.1 billion to eligible individuals and families.
In addition, the GST credit will be increased by 25% for five years starting in July. There is a one-time payment, but we have also included support for the coming years to help families cope with the cost of groceries.
The increase will provide an additional $8.6 billion in support and will also enable approximately 500,000 new individuals and families to benefit from this new program. This is substantial support.
Just yesterday, I was talking to people in a grocery store. I was also talking to the managers and telling them that putting money like this directly into people's pockets will help many families cope with the rising food prices we have been seeing. In practical terms, a family of four could receive up to $1,890 this year and about $1,400 a year for the next four years. A single person could receive up to $950 this year and about $700 a year thereafter. These are significant sums for nearly 12 million Canadians.
Our government is also delivering major tax cuts to give Canadians a break because we have heard how we can help Canadians. Since July 1, 2025, Canadians have been paying less tax after the government lowered the first marginal personal income tax rate from 15% to 14%. This was the very first thing we did as a government. The very first thing we did was to lower taxes for 22 million Canadians, and this is making a difference. This is responsible. This is a measure that has been helping everyone in this country. Thanks to this change, 22 million Canadians benefit from tax relief of up to $420 per person, saving two-income families up to $840 a year.
Our government has also eliminated the GST for first-time homebuyers on new homes up to $1 million and reduced the GST for first-time homebuyers on new homes between $1 million and $1.5 million.
In addition, and I think we should all be very proud as members of the House, we made the national school food program permanent. This is something that will be remembered for generations. It is providing school meals for up to 400,000 children each year, saving families with children in school who benefit from it an estimated $800 annually on groceries. Helping our children in making sure they have a good meal to start the day is, I am sure, something every member of the House should feel good about. I am thinking about the member who will have his grandchildren soon. This is a measure that is helping our kids and our grandkids yet to come and that is very well liked by families.
However, we do not stop there. There is more good news. We have also introduced the automatic federal benefits, starting with the 2026 tax year. We looked at what was going on in different countries, we looked at best practices, and I would say that automatic federal benefits are one of them. This will ensure that 5.5 million low-income Canadians automatically receive the benefits they qualify for by the 2028 tax year, including the Canada groceries and essentials benefit and the Canada child benefit.
We have also moved forward with ambitious pro-competition measures in the telecom and financial sectors to strengthen competition, reduce prices, offer more choice to Canadians and allow Canadians to more easily switch between providers and pay lower bank and service fees.
In conclusion, because I am eager to get questions from my colleagues so that I can say even more about what we are doing to support Canadians, our plan is moving Canada's economy from reliance to resilience. Canadians understand that we need to invest in our economy to build the strongest economy in the G7. That is why, in budget 2025, I was pleased to introduce and present generational investments in housing, infrastructure, competitiveness, innovation and our defence. It is a plan that has been applauded by international organizations like the International Monetary Fund, which says Canada has the strongest fiscal position of the G7.
In fact, we have the lowest net debt to GDP and one of the lowest deficits in the G7, and we are one of only two countries in the G7 that has a AAA credit rating. The strong fiscal position we have is allowing us to invest in our future but also to support Canadians now, at a time of need. That is why I am so pleased that, also with Bill C-30, we have put a number of measures in the spring economic update that would support Canadians, build our country and make our communities safer.
I look forward to hearing from my colleagues. I know they are keen to support Bill C-30 as well. They understand that we need to build Canada strong. They understand that we need to empower Canadians. They understand that we need to build safer communities. We will continue to work with all members of the House to make sure that we build this country strong and that we have the strongest economy in the G7.