Mr. Speaker, I rise today in support of Bill C-38, the Canadian fuel affordability act. This legislation is a focused and practical response to very a real pressure facing Canadian families and businesses: the sharp increase in fuel costs caused by global conflict and disruptions in international energy markets.
Canadians did not create these circumstances, but they are paying the price. Bill C-38 would extend the full suspension of the federal fuel excise tax introduced earlier this year until January 31, 2027. It would then restore the tax at half its regular rate for February and March, before returning to the regular rate on April 1.
In the case of gasoline, the full suspension represents a savings of 10¢ per litre, compared to four cents per litre for diesel and aviation fuel and 10¢ per litre for unleaded aviation gasoline. These savings are significant across Canada, but they are particularly significant in rural and northern communities, including the one I represent, the riding of Nipissing—Timiskaming.
In my riding, driving is not a choice. It is often the only realistic way to get to work, attend a medical appointment or bring a child to a hockey practice. Residents from Mattawa to Englehart and throughout our many rural communities regularly travel significant distances to obtain services that residents in large urban centres may find only a few blocks away. For many of our residents, there is no subway, commuter train or bus waiting around the corner. Distances do not become shorter when fuel prices rise, and medical appointments cannot be postponed until prices fall. That is why any national affordability policy must understand the realities of rural and northern Canada, and Bill C-38 does exactly that.
Fuel costs also affect the businesses and workers sustaining our regional economy. In the little clay belt, one of northern Ontario's most productive agricultural regions, our farmers use diesel to operate tractors and other machinery to transport livestock and deliver food to market. In a region with a shorter growing season, that work must often be completed within a very narrow window. A farmer cannot simply park the tractor because diesel has become more expensive. Fuel is not a discretionary expense in agriculture. It is part of the cost of producing the food Canadians depend on.
The same is true in forestry. Harvesting equipment requires fuel. Trucks travel into the forest, carry logs to mills and move finished products to customers. At a time when northern Ontario's forestry sector is already facing tariffs, market uncertainty and difficult operating conditions, reducing diesel costs provides meaningful relief to workers and businesses. The benefit extends well beyond into manufacturing as well.
Gincor Werx is a company in Mattawa that manufactures specialty trucks. Throughout the riding of Nipissing—Timiskaming, there are manufacturing companies and mining industry suppliers shipping equipment and parts to northern Ontario, Quebec, and other parts of Canada. These products do not transport themselves. A drop in diesel prices has ripple effects well beyond gas stations. It helps the truck driver transporting food products north, the construction company hauling aggregate and building materials, the logging contractor transporting equipment, and the courier service delivering supplies to a small business. Ultimately, a drop in diesel prices helps reduce costs throughout the entire supply chain.
Bill C-38 would also extend relief for aviation fuel, and that is especially important in northern Ontario, where aviation is not simply about holidays and business travel. It connects rural and remote communities and supports medical transportation, emergency response, firefighting, search and rescue, workforce movement and the delivery of essential services.
No single measure will solve every affordability challenge. Bill C-38 is not presented as a permanent answer to global energy volatility. It provides immediate, time-limited relief in response to an extraordinary external pressure, full stop. Some will argue that this bill does not go far enough and that the excise tax should be abolished permanently. I would respond that being a responsible government means addressing the immediate pressure while preserving the fiscal capacity required to fund health care, infrastructure, national defence and other essential services that are important to all of us in this chamber.
Bill C-38 takes a measured approach, with full relief through January, followed by a two-month transition at half the regular rate. We can provide immediate affordability relief without abandoning the longer-term work of making our economy more competitive. Long-term ambition and immediate affordability are not competing objectives. A responsible government must be able to advance both at the same time, and that broader approach is reflected in our government's current legislative agenda.
Alongside Bill C-38, the government has introduced Bill C-39, the building Canada strong act. That legislation is intended to bring greater speed, certainty and predictability to federal project reviews, to strengthen trade corridors and supply chains, and to support the workers who are building our next generation of Canadian infrastructure. We saw the evidence of Canada's economic potential at last week's Canada investment summit in Toronto, which resulted in nearly $500 billion in investment commitments and financing for Canadian infrastructure, businesses and our strategic industries.
We are also seeing progress in Canada's economic performance. Today, our Minister of Finance spoke to us about results. According to the OECD, Canada's real GDP grew by 0.8% in the second quarter, and that is the strongest quarterly growth among G7 countries. That is important. By comparison, the economies of the United States and the United Kingdom grew by 0.4%, Japan's by 0.3%, and those of France, Germany and Italy by 0.2%.
I recognize, however, that these figures do not mean that every household feels economically secure. Economic growth does not erase the pressure on Canadians, including the residents in my riding of Nipissing—Timiskaming. It does not erase the pressure that they face when buying groceries, homes or fuel, but these figures demonstrate that Canada has important strengths on which to build.
Across the G7 and G20, countries are confronting higher costs arising from war, tariffs, trade disruptions and volatility in global energy markets. It is happening in other countries. What distinguishes governments is how they respond. Our response is to provide immediate relief. That is what we are doing in Canada: protecting workers and businesses, attracting investment, diversifying our trade and accelerating the projects that will make Canada more productive and resilient while creating good-paying jobs. This is something we all want in this chamber.
Bill C-38 would put money back into the pockets of Canadians. It would support the businesses that move our economy and recognizes that the transportation realities of rural and northern communities are important. For those reasons, I want to tell the citizens of Nipissing—Timiskaming watching this presentation that I will be supporting Bill C-38, as it is so important to our riding.