Francesco Sorbara

[Budget Implementation Act, 2024, No. 1, May 7th, 2024]

Madam Speaker, it is always a pleasure to rise on behalf of the constituents in my riding of Vaughan—Woodbridge. I thank the hon. member from Calgary Centre for his remarks this afternoon as we debate Bill C-69, the budget implementation act, and the measures contained therein.

We have heard a lot of chatter today in the conversation about Canada's growth profile and where our economy is going, so let us talk about that and go down that path for a minute or two. First, in terms of the IMF forecasts that were released in April, about a week or two ago, Canada will be number two in growth in 2024 with a 1.2% growth rate forecast. For 2025, the economic growth forecast for Canada in the G7 is in the top spot, ahead of the United States, ahead of Germany and ahead of the U.K., France, Italy and Japan, at roughly 2.3%.

This is very important, because it means that we have fully recovered from COVID, which we know we have, and that our economy is growing. In terms of global inflation and high rates, I anticipate in the months ahead we will see some rate cuts from the Bank of Canada. That is my personal opinion of course. However, a lot of headwinds are past us. We know we have much work to do, but we are seeing now, from the IMF, from Moody's and even from the Bank of Canada governor, currently, what our prognostications are for the Canadian economy.

When we look at Canada's fiscal position, and I spoke about it in a debate a week or two ago, our fiscal deficit in Canada is just over 1% of GDP. When I compare that to other jurisdictions, including the United States, the United States is at 7%, China is at 6% and many of the European countries are at 4%, 5% or 6%, so at this point where we are in the economic cycle and the growth cycle, a deficit-to-GDP of around 1% is very prudent. It maintains our AAA credit rating, and it allows us to undertake strategic investments in Canadians because, as we know, confident governments invest in Canadians and invest in Canada. That is what our government has been doing.

I will read very quickly the comment from the Bank of Canada governor on May 2, 2024, to the House of Commons Standing Committee on Finance, it says, “growth in the economy looks to be picking up. We expect GDP growth to be solid this year and to strengthen further in 2025.” He also noted that “Overall, we forecast GDP growth in Canada of 1.5% this year and about 2% in 2025 and 2026. The strengthening economy will gradually absorb excess supply through 2025 and into 2026.”

There are some further comments, in terms of interest rates: “I realize that what most Canadians want to know is when we are going to reduce our policy interest rate. The short answer is we are getting closer. We are seeing what we need to see. We just need to see it for longer to be confident that progress toward price stability will be sustained.”

These are very important remarks from the Bank of Canada governor. As many folks know, I did my graduate degree in economics at the University of Toronto. I worked in the financial markets for 20-plus years in Toronto and in New York City, and I understand this well. I have seen many cycles, including the 2008-09 crash, the real estate boom and the tech boom and bust when I worked in New York City, so I have gone through those experiences, understanding full well macroeconomic cycles and the microeconomic policies that underpin them. I know full well where the economy is going, and the Canadian economy is going in the right direction.

There is always work to do, but we are going in the right direction.

As many may know, for a number of years I spent some time at a rating agency. Moody's on May 2, and I printed off its release, affirmed Canada's AAA credit rating. It says, “Moody's view [is] that Canada's significant credit strengths will continue to preserve its Aaa-rated sovereign credit profile.” We are one of only three or four countries in the world that has a AAA credit rating from two agencies. The United States does not have a AAA credit rating from S&P, I believe. The report says this is “underpinned by its high economic strength and very strong institutions and governance.”

As I read further in the release, it says, “these factors provide Canada with a strong foundation for future growth and a very high degree of economic resiliency to potential shocks, supported by robust monetary, macroeconomic and fiscal policy frameworks”, which is stuff I like to read about a lot.

It further states:

In addition, Canada's credit profile has very limited susceptibility to event risks, supported by stable political institutions, a strong and well-regulated banking system, and reserve currency status which underscores the government's deep and unfettered market access.

The next part is very important, and I know the member for Calgary Centre will appreciate this. It reads, “At the same time, despite an initial sharp deterioration in the government's fiscal position from the pandemic”, and that is when when we were there for Canadians and had their backs and the backs of businesses to ensure we would come out strong and robust, “Canada's debt ratios have since materially improved and the government is pursuing a gradual path of medium-term fiscal consolidation that will mitigate the impact of higher global interest rates on debt affordability and the sovereign's overall fiscal strength.”

The individuals who write these reports and do the analysis know what they are doing. They do it on a relative basis. They know Canada's fiscal position in the world, our relative strength and our economic outlook, and it is robust. Yes, we have work to do. Yes, Canadians are and have felt the pressure of global inflation on their pocketbooks, absolutely, but we continue to make those investments that we know will make a positive impact on the standard of living and on the lives of people not only today but into the future.

Let us just talk about some of those investments.

The Canadian dental care program has over 8,000 dentists signed up from coast to coast to coast, and tens of thousands of Canadians have received benefits. If there was one program that the seniors in my riding of Vaughan—Woodbridge asked for these last eight years it was to implement a dental care program. When many Canadians retire, they do not carry benefits into their retirement years, such as dental benefits, and they are forced to pay out of pocket for private insurance. However, this program is a game-changer, and we will see the benefits of it for years to come. Dental care is health care.

We can look at the national early learning and child care strategy, a $30-billion investment over a number of years to bring down the cost child care to an average of $10 per day in province of Ontario, and I have the privilege to represent one of the ridings in that province. By September 2025, on average, we will see $10-a-day child care.

My family and I were blessed to have a child later on in our years. I have seen the savings that are being delivered to residents in the riding of Vaughan—Woodbridge and across Ontario. We are saving up to $8,500 a year in child care expenses, and these are before tax dollars. It is a real savings.

We introduced the Canada child benefit, which is lifting hundreds of thousands of children out of poverty. We are no longer sending cheques to millionaires. This benefit is monthly, tax-free to families. In my riding, it is about $80 million a year the last time I checked.

In terms of growing the economy, ensuring that we see inclusive economic growth so that Canadians from coast to coast to coast benefit from it, we lift all boats in a higher standard of living. We are seeing the investments in the auto sector, with over $46 billion of announced investments in a key sector of the economy, a key sector in manufacturing, in research and development, and in IP. It is happening.

We are partnering with the provincial government, we are getting it done. I look forward to attending more announcements, much like the Honda announcement, with $15 billion being announced in Ontario's economy for manufacturing plants. Thousands of jobs will be maintained. Thousands of jobs will be created. These are the stories we need to tell, because we know that in Canada the best years are ahead of us.

We know that Canadians need help with global inflation, but I am optimistic. We are on the right path. We are on a path to maintain our standard of living and to raise it, and to ensure that all our kids, including my three daughters, have a bright and prosperous future in this beautiful country we are blessed to call home.

[Pharmacare Act, May 6th, 2024]

Mr. Speaker, we know that almost four million Canadians have a form of diabetes, and we want to prevent their condition from deteriorating and their ending up in the hospital, which costs our hospital system even more. We want to prevent that, which is a big piece in Bill C-64.

Obviously, with contraceptives, we know that there are women out there who may not be able to afford the cost. We would be there to assist those individuals, especially the most vulnerable, in our country.

[Pharmacare Act, May 6th, 2024]

Mr. Speaker, leadership is about having the confidence to invest in Canadians and invest in Canada. We continue to work with all the provinces. We have signed all the agreements for the national early learning and child care agreements across the country with all the provinces, Conservative, New Democrats or Liberal. We have done the same on health care.

As I said in my speech, I was there with the Prime Minister and the Premier of Ontario, Doug Ford, the morning we signed the bilateral health care agreement of injecting $3.1 billion as part of the agreement with the Province of Ontario. That is real leadership. That is not hot air. That is real leadership, which is providing real solutions to individuals in the province of Ontario and across this country that we call home.

We will continue to introduce measures that I know make a real difference in the lives of everyday Canadians, including the ones who live in my riding of Vaughan—Woodbridge.

[Pharmacare Act, May 6th, 2024]

Mr. Speaker, since 2015, when I was first elected to this most honourable House, my focus has been on helping and ensuring the success of the residents of my riding of Vaughan—Woodbridge and of all Canadians, and that is what we continue to do. We continue to implement policies that strengthen our social system, including what is contained in Bill C-64, specifically for folks with diabetes and individuals in need of contraceptives.

Obviously, the rare disease strategy is something near and dear to my heart as I have a nephew who suffers from a rare genetic disease. I understand the issues that my brother and sister-in-law go through in taking care of my nephew. The issue of expanding pharmacare, expanding our national system and strengthening our social safety net is very near and dear to my heart.

[Pharmacare Act, May 6th, 2024]

Mr. Speaker, it is always a pleasure and an honour to rise in this most honourable of houses. This evening, I will be sharing my time with the hon. member for Milton.

Before beginning my formal remarks, I would say that, when I think of Bill C-64, an act respecting pharmacare, and the implementation of a piece of legislation that would obviously strengthen our health care system and the delivery of it, I would not be remiss to say that this is not only an excellent piece of legislation that would help Canadians, specifically those in need of contraceptives and the nearly 4 million Canadians dealing with diabetes, but also another sign of our government's strengthening of our social fabric and social system. It would build on other programs that we have implemented, including the Canada child benefit, which we know has lifted hundreds of thousands of children out of poverty and helps families every month. In my riding, nearly $80 million or $90 million a year arrives, tax-free and monthly. We know that the Canada workers benefit, which helps our working poor and those trying to make ends meet and get ahead, helps literally millions of Canadians. We introduced middle-income class tax cuts in 2015, raised the basic personal exemption amount and accelerated the pace. We know those are delivering $10 billion annually in tax relief to Canadians, as we speak.

More recently, the Canadian dental care program, which thousands of dentists have signed on for, is benefiting individuals in my riding of Vaughan—Woodbridge. In fact, in the heart of my riding at Weston Road and Rutherford Road, there is a big billboard, put up by one of the dentists in the community, stating that they welcome patients who are eligible and approved for the Canadian dental care program. This program is already helping thousands of residents in the riding of Vaughan—Woodbridge and in the city of Vaughan. The work that we are doing on Bill C-64 would continue to build on that work of helping Canadians to receive the services they need, which, in this case, is to improve health care.

With respect to health care, I was at the announcement with the Prime Minister and the Premier of Ontario, Doug Ford, when we announced a $3.1-billion bilateral agreement of health care funding for more nurses, more doctors and more health teams across the province of Ontario, a part of the $200 billion the federal government is committing to health care across this beautiful country.

I appreciate the opportunity to speak to the important work under way through Bill C-64 with regard to the Canadian drug agency, or CDA. The CDA is one of the key features contained in Bill C-64. On December 18, 2023, the Government of Canada announced the establishment of the CDA, which is to be built from the existing Canadian Agency for Drugs and Technologies in Health, in partnership with provinces and territories. The government committed $89.5 million over five years to establish the CDA, providing dedicated leadership and coordination to make Canada's drug system more sustainable and better prepared for the future. This investment would be in addition to the existing funding of $34 million per year to support CADTH's current work.

The CDA would build on CADTH's existing mandate and work, expanding to include new functions such as appropriate prescribing and use, data and analytics, and system coordination. Developing the CDA recognizes the organization's reputation of excellence, performance and results. It also ensures that we would be adding value to the system by building on what is already working with the CADTH.

Let me say a bit about how we got to this important milestone. Canada's pharmaceutical system evolves slowly over time, often responding to address new challenges as they developed. When medicare was first introduced in Canada in 1966, drugs used outside hospitals were primarily inexpensive medicines for common conditions. A growing number of specialized drugs are now helping to cure or manage a range of conditions, and rising rates of chronic disease have made prescription drugs a central part of our current health care system.

New pharmaceutical system organizations and functions have been created to manage the access and use of prescription drugs, but this has happened in an ad hoc and fragmented manner. Canada currently has over 100 public drug plans and 100,000 private drug plans, creating a patchwork of access and coverage for Canadians. Despite improvements in recent years, high prices and the patchwork of drug coverage leave many people in Canada facing barriers to access the prescription drugs they need when they need them.

Stakeholders in landmark reports have underscored the need for federal leadership in addressing these gaps. In recognition of concerns about the sustainability of the Canadian pharmaceutical system, budget 2019 provided $35 million over four years to establish the Canadian Drug Agency Transition Office, or CDATO, to provide dedicated capacity and leadership to work with provinces, territories and key partners on a vision, mandate and plan to establish the CDA. Since its establishment in 2021, the CDATO has conducted extensive engagement and analysis, holding over 400 meetings and round tables with a diverse range of stakeholders to understand the gaps and challenges in the pharmaceutical system and obtain advice on how to make improvements.

Extensive engagement has taken place with provinces, territories, patients, pan-Canadian health care organizations, health care professionals, industry insurers and international partners. Based on this engagement analysis, the CDA will build on CADTH's existing mandate and functions, expanding to include new work streams that better support patients and system sustainability, namely improving the appropriate prescribing and use of medications, increasing pan-Canadian data collection, expanding access to drug and treatment information, and reducing drug system duplication and lack of coordination.

Through our engagement, we learned that the appropriate prescribing and use of medications is a clear priority for many stakeholders. This is about ensuring that patients are prescribed the safest and most effective treatment for their outcomes and conditions. Each year, $419 million is spent on potentially harmful medications for seniors, and $1.4 billion is spent to treat harmful effects. However, there is no unified approach to guide and inform prescribers or patients on appropriate prescribing and use.

To date, we have launched an appropriate use of advisory committee involving patients, clinicians, experts and leading organizations in the field. The committee is advising on the development of a pan-Canadian appropriate prescribing and use strategy. Later this spring, the committee will issue its final report that will inform the work of the CDA to create and implement an appropriate prescribing and use program in collaboration with partners.

Stakeholders have also pointed to the need to improve pharmaceutical data and analytics to better understand the impact of drug treatments. However, there is limited ability to access, link or share drug data, which is siloed in different sources, such as hospitals, private drug plans, physicians' offices and jurisdictions. This fragmentation limits our ability to understand a drug or treatment's use pattern and effectiveness, including how it performs once it is being used by patients in the real world and how it compares to other available treatments.

We are working with several organizations in the health data field, such as CADTH, the Canadian Institute for Health Information, Canada Health Infoway, Health Data Research Network Canada and the pan-Canadian Pharmaceutical Alliance, to improve access to and use pharmaceutical data. Stakeholders also consistently emphasize the importance of incorporating patient equity and lived experience in the CDA's developments and operations. They noted that patient engagement in the pharmaceutical system is limited. Incorporating patient perspectives through engagement and governance were key recommendations for an organization that is transparent, accountable and meaningfully involves those who need it most, the patients.

We have also heard of significant challenges regarding system coordination. During the course of our engagements, most stakeholders highlighted at least one coordination-related issue that they face. Challenges include a lack of information sharing, confusion about roles or responsibilities or limitations to meaningful engagement. Our pharmaceutical ecosystem is managed by multiple organizations that have different purposes, priorities and areas of jurisdiction.

There is one organization mandated to convene players, focus the agenda, ensure efficiency and enhance collaboration. Because of this, there are both gaps and duplication in the system. Building from CADTH is a significant step in promoting system alignment. CADTH is a highly reputable organization with strong leadership and a shared federal, provincial, territorial governance model that works.

Through CDATO and CADTH's extensive partnerships and building on the work to date, we will build a CDA that is well positioned to convene key players and focus on promoting better outcomes for patients. We will develop an organization that has the capacity to adapt to the ever-changing pharmaceutical landscape. Our work to date reflects the significant input provided by stakeholders over the last three years. It also highlights a strong interest across the system to make meaningful improvements.

The CDA will support pharmaceutical system modernization in Canada and lay a strong foundation for future growth, including by providing the capacity to support the commitments outlined in Bill C-64, which is now before the House. The CDA will assume a leading role in the pharmaceutical system to ensure Canadians have better health outcomes and are well informed about the medications that they need now and into the future.

[Sikh Heritage Month, May 1st, 2024]

Mr. Speaker, as we bid farewell to the fifth annual Sikh Heritage Month in Canada, a celebration of resilience, diversity and the enduring spirit of Sikhism, we take a moment to reflect on the rich contributions of Sikh Canadians and the vibrant Sikh community flourishing in the city of Vaughan, including in my riding of Vaughan—Woodbridge.

April reminded us of the remarkable contributions that Sikhs have made throughout Canada's history. They were pivotal in constructing the Canadian Pacific Railway, served with distinction in both world wars and significantly advanced agricultural innovation.

Sikh Canadians are key advocates for human rights and promoting equality. Their unwavering commitment is seen through community-oriented initiatives, such as the Seva Food Bank and Khalsa Aid.

Through their leadership, including in this most honourable House, entrepreneurship and cultural contributions, they are building bridges, breaking barriers and enriching our society. Sikh heritage is carried through the spirit of inclusivity and understanding, which are shared Canadian values.

Waheguru Ji Ka Khalsa, Waheguru Ji Ki Fateh.

[The Budget, April 30th, 2024]

Madam Speaker, we all believe in achieving net zero by 2050. We all believe in decarbonizing the economy. At the same time, we must also understand there will be a need for natural resources of oil and natural gas, whether it is in situ for oil and conventional natural gas or whether it is western Canadian—

[The Budget, April 30th, 2024]

Mr. Speaker, to my colleague and friend from my old hometown of Prince Rupert in Skeena—Bulkley Valley, I will be very personal on this front. We have a little nephew, Ethan, who has a rare genetic condition. Probably one out of five or six individuals in Canada has this condition. I know full well the amount of expenses that my brother and sister-in-law incur for their son. It is not just in the thousands of dollars; it is literally, in the last couple of years, in the hundreds of thousands of dollars. I know what they face, so I do appreciate the sentiment coming from my colleague.

I will say that the Canada disability benefit does move the needle, and we will continue to work, also in conjunction with the disability tax credit, which is in place ensuring that disabled Canadians have the support they need to live a dignified life and to lead a life where they can fulfill their capacity in terms of what God has given them.

I want to give a shout-out, a prayer and a big hug to my little nephew.

[The Budget, April 30th, 2024]

Mr. Speaker, I do count the hon. member as a friend and colleague, and I always enjoy chatting with him.

I will say that the IMF statistics are there, and the member can look at gross governmental debt and the net debt bases. The standards are developed by the International Monetary Fund and the World Bank. They are commonly accepted standards. They are principles.

Canada's fiscal situation is measured by the rating agencies. I worked for a rating agency for a number of years before I went into the bond side of the business. I understand it quite well. Our AAA credit rating, which has been there since finance minister Martin's years, is there for a reason. We have a solid balance sheet, which is something we should all be proud of and something that I know Canadians hold near and dear to their hearts.

[The Budget, April 30th, 2024]

Mr. Speaker, it is always an honour and a privilege to rise in this House. I would usually call it the most honourable House, but after today's events, I am not exactly sure.

When we speak about budget 2024 and what is involved in budget 2024, it continues to build a strong economy, an inclusive economy.

One of the sectors that I would like to touch upon is here in Ontario specifically, the auto sector. It is a sector that I covered in the private sector for 15 years before coming into public service.

What we announced last week and what we did in collaboration with Honda is a game-changer for the auto sector here in Canada. It is a game-changer for Honda. It is Honda's largest-ever investment in North America, $15 billion to build an electric vehicle assembly plant, a stand-alone manufacturing plant, a cathode active material and precursor-processing plant, a separator plant and a new assembly plant operation, which in 2028 is projected to build over 240,000 electric vehicles per year.

That is a strong vote of confidence in the Canadian economy. That is a strong vote of confidence in Canadian workers. It is the right thing to do to build a competitive economy and an economy that works for all Canadians.

It did not just happen by chance. It happened because our government was laser-focused on attracting business investments here in Canada. With regard to the auto sector, almost $46 billion has been attracted across Canada, not just in the province of Ontario and British Columbia, or in the province of Quebec. The spillover in the whole EV supply chain is across Canada. Again, it is our government being laser-focused in budget 2024. An electric vehicles supply chain credit was introduced, 10% on EV assets, battery and cathode active materials.

This follows Volkswagen's $7-billion investment in St. Thomas, Northvolt's $7-billion investment in Quebec, the $5-billion investment by Stellantis and LG Energy Solutions in the beautiful city of Windsor, Ford's $1.8-billion commitment to repurpose its facility, and the list goes on. The Canadian automotive sector builds 1.5 million vehicles per year. It supports 550,000 direct and indirect jobs here in this country and contributes about $18 billion. Canada is home to Stellantis, Ford, General Motors, Toyota and Honda. We have been able to secure a commitment from Honda for generations now, and for generations to come, with over 4,000 jobs, over 1,000 new full-time jobs, and we can multiply that by five to seven, in terms of the multiplier, for literally decades, plus all the construction jobs that will come.

I will now turn to something that is near and dear to my heart. I read the IMF projections for economies around the world. The “Fiscal Monitor” came out. The world economic outlook came out. For 2025, Canada is forecast to lead economic growth in the G7 at almost 2.5%, something that we should be very proud of. We are leading the pack because we are making strategic investments in Canada. We are making strategic investments in Canadians. A confident country invests in its citizens. A confident country will always do so. That is what we will continue to do.

With regard to matters that I hear quite a bit about, I would like to reference a Financial Times article that came out about a week ago, entitled “US deficit poses ‘significant risks’ to global economy, warns IMF”. One looks at Canada's fiscal framework, its fiscal management and our AAA credit rating from all the credit rating agencies: Moody's, S&P, Morningstar DBRS.

I can hear some chirping from the other side. I understand that when it comes to being polite and when it comes to decorum, sometimes people need to take further lessons. It is unfortunate that they need to.

When we look at overall government fiscal balances, the net lending/borrowing for Canada is -1.1% of GDP; the United States, -7.1%; the U.K., -3.7%; Italy, -3.2%; Germany, -1.3%. Canada's fiscal framework is the strongest in the G7. It is the strongest in the G20. There is a reason why we have AAA rating. There is a reason why, when we look at our fiscal framework in this country, we have a solid, strong, robust balance sheet.

Those are the facts. Members on the other side can quibble as much as they want. They may not like science, and they may not like data. They may not like looking at the financial numbers, but I do. We will continue to do so. It is very important.

There is another item that I would like to raise, something that may surprise some folks on the other side and may surprise some folks on my side. I am actually very happy that the Trans Mountain pipeline is now in operation. The twinning of those two pipelines is going to boost economic growth here in Canada: this year, by about 0.5%. For a $3-trillion economy, 0.5% is actually quite important. The economic benefits of that pipeline are going to outweigh significantly the cost of building that pipeline and the debt that is carried on it currently, absolutely. It is going to lower the spread between WTI and WCS in terms of the price differential. For the time being and for many years to come, the oil that is sent from Alberta through the province of British Columbia is going to receive a higher price. Some estimates show a $9 benefit. We will earn billions of dollars in tax revenue to support hard-working Canadians across this country.

We made that investment, and I am very proud of that investment. It replaces almost 1,500 railcars that were carrying crude oil. It provides lower-cost access to markets abroad, and it raises producer prices here. It is something we need to be proud of. Again, it lowers the differential in the price we were getting for our product, so that now we are earning more on that front. Just in the second quarter of this year, the Bank of Canada estimates that it is going to boost economic growth by 0.25%. It is going to provide over $70 billion in revenues for the entities involved and tens of billions of dollars in tax revenues to pay for the services that we need.

Trevor Tombe, one of the economists I talk with quite a bit these days, put out an excellent piece today on why it is so important that we have an additional outlet for Canada's resources. As we decarbonize our economy, we need to do it in such a manner that the transition ensures good future for Canadians. The funds received will allow us to reinvest in our economy to green it and to make sure our electrical grid is fully decarbonized by 2035.

Finally, on the housing front, we are going to build in the years to come and we are building currently. Housing is very important for the residents of the 905 region, where I live. We see the activity at the Vaughan Metropolitan Centre. We see the activity across our region in terms of the housing builders getting to work. To the wonderful construction workers who are trained at the LiUNA 183 training centre or the Carpenters' Regional Council and the local 27 training centre, I visit with them and I want to give them a big shout-out because they are doing the heavy lifting to build our communities and the infrastructure in our communities.