Madam Speaker, as I mentioned, the Conservatives are pushing for a more extensive gas tax cut to make life more affordable for Canadians. Last May, in fact, we put through an opposition day motion calling for the government to offer Canadians immediate relief by ending all federal taxes on gas and diesel for the rest of the year, including the GST; and permanently scrapping the clean fuel standard. We then called for it to be completely eliminated up until Canada Day next year. Of course, we saw that the Liberals had to be dragged, kicking and screaming, to offer a partial tax break to Canadians.
The price of gas is at probably an all-time high from what I have seen in my many years. It is $1.81 a litre in Edmonton, of all places, but I understand the provincial government is offering a 13¢ cut, coming on October 1. I just heard that today. More important, the price of diesel fuel has gone through the roof, at about $2.80 to $2.90 a litre. A lot of Canadians, when they think of diesel, just think of the crazy hippie down the road still driving the Volkswagen Rabbit on diesel or perhaps someone driving a big truck on diesel. They do not understand that diesel fuel is very much the lifeline of Canadian industry, farming and trucking. Where the price of diesel goes, so goes inflation.
People who want to geek out on something should take a look at something called the crack spread. Generally simplified, that is the spread between the price of refined products and the price of oil, and it is at an all-time high right now. If they want to look into it more I suggest they follow a chap named Richard Dias on Twitter. He talks about it a lot. It is a coming problem for Canadians because they see the price of oil being one thing, but the price of gas and diesel, the refined products, is decoupling in a lot of ways from the price of oil and going even higher. Again, as go diesel prices, so go food costs and many other costs.
I am glad that the government is at least offering some partial relief at the pumps. Again, it is unfortunate that it has had to be nagged into extending it, and only partially, but even a partial cut is better than no cut at all. It helps Canadians now. Keeping fuel taxes low should remain a priority going forward. For years, we have seen the current government claiming the carbon tax was not inflationary and fighting to keep the carbon tax. Like caving on the carbon tax, I am glad the Liberals caved a bit on extending the fuel tax rebate at least a bit longer. Currently, it is suspended only to January 2027, then resumes at 50% and then the full amount returns on April 1, 2027. Basically, the Liberal government is putting an expiry date on affordability.
I mentioned at the beginning of my speech that the Conservatives put through an opposition day motion to eliminate all taxes on gas and diesel, etc., back in May, and the current Liberal government voted the motion down.
I want to quote some of the Liberal members when they were arguing against a tax rebate for Canadians or a reduction of gas taxes. I will start with my friend and colleague from Winnipeg North. He said, “Why the hypocrisy from the Conservative Party of Canada when it comes to the issue of affordability?” This is the same member whose interventions I stopped counting at 40 times. He stood in this House at least 40 times during the last couple of years, defending the carbon tax as being a boon for Canadians for affordability. In May, he was arguing against further tax cuts on gas and now he is saying it is a panacea for everything. It is funny how, when the Conservatives proposed a gas tax cut, it was bad but now it is good. I am going to continue with the hypocrisy line a bit longer. As for the finance minister who introduced the bill, I counted over the last couple of years that he stood 25 times in this House defending the carbon tax. Every time the Conservatives put through a motion to eliminate the carbon tax, the finance minister, who is all about affordability now, stood and defended the carbon tax. The finance minister also stated that a gas tax is really not that important. Because 80% of the price of fuel was because of oil, therefore a tax change did not matter.
Continuing on, a Liberal member stated that what we need to do is reduce taxes in ways that are responsible and to continue to invest in critical social programs. In May, the Liberals were arguing against a tax cut, but now a tax cut is good. A tax cut was bad before, but a tax cut is good now. Again, it is hypocrisy.
Another member, a senior member, stated basically that tax cuts to gas are bad because they only help the rich: “This idea that the impact is going to be more substantial on low-income Canadians than on Canadians who are much more well off is just absolutely ludicrous... It does not make any sense”.
Guess who actually says gas taxes are progressive and disproportionately hurt low-income Canadians. It is a bunch of far-right-wing think tanks such as the Canadian Centre for Policy Alternatives, the Canadian Labour Congress and the Smart Prosperity Institute. The government was actually stating in May that it did not want to cut taxes, because it would have only helped the super wealthy. Even though the PBO and others stated the carbon tax disproportionately hurt low-income Canadians, the government argued in May that tax cuts only help the wealthy. What are we doing today with Bill C-38? We are debating a tax cut. I guess super wealthy back then was different than super wealthy now.
He went on and said, “What the Conservatives are proposing is more of a benefit for the ultrawealthy”, so I have to ask the Liberals why a tax cut in May was for the ultra-wealthy and a tax cut now is not for the ultra-wealthy. Are they just completely misinformed or perhaps, as the member for Winnipeg North states, “hypocrites”?
The defence minister said, “[Conservatives know] that this handful of tax changes [that they had proposed in May] are not going to contend with the economic challenges we are facing in the United States. They are not going to contend with the Ukrainian war. They are not going to contend with the gulf war.”
The Minister of National Defence, in June, was attacking Conservative-proposed tax cuts. They were no good, because they were not going to do anything about the war in Ukraine nor the war in Iran, so I will invite any member of the Liberals to stand up in the questions period and tell me what has changed since the minister of defence said that tax cuts would not change what was going on in the States. Why now?
I am not arguing we should not do this tax cut. I am just saying we should do more, but I was calling out the hypocrisy of the Liberals who were fighting against Conservative proposals to cut taxes in May, and all of a sudden, under Bill C-38, the tax cuts not only are good and no longer help the “ultrawealthy”, as the Liberals say, but apparently, according to the minister of defence, they would fix the Ukrainian war, they would fix the war in Iran and the gulf and fix our issues with the U.S. It is wonderful.
Another member says it is “absolutely crazy” to make the claim that cutting gas taxes helps low-income people. Again, it was utterly crazy in May, but somehow good now. We know cutting taxes is good. Milton Friedman says he is in favour of any tax cut at any time. I would agree. I am glad the Liberals are doing this, but I just point out the hypocrisy of fighting a gas tax cut in May and all of a sudden saying it is a glorious thing to do now.
The member for Mount Royal complained that cutting gas taxes would hurt the environment. He also said that taxes have nothing to do with the price at the pump. Is that not amazing? A gas tax cut in May would have hurt the environment, and gas taxes had nothing to do with the price at the pump, but all of a sudden they do now. We also say fuel regulations do not add to the price Canadians pay at the pump, yet the PBO says it is going to be 17¢. Environment Canada says it will cost us at the pump.
I realize my time is up. I will end it here. I will open questions. I again thank the Liberals for finally listening to the Conservatives and bringing in a tax cut to help Canadians.