(i) the Bank of Canada governor has admitted that the carbon tax contributes to inflation,
(ii) the Parliamentary Budget Officer says that households will pay more in carbon tax costs than they get back,
(iii) the government plans to triple the carbon tax, which will increase the price of gas, groceries, and home heating,
the House call on the government to immediately cancel the carbon tax.
He said: Mr. Speaker, after eight years in government, the is out of touch and Canadians are out of money. Nowhere is that more evident than in the words of the Prime Minister's own top minister from Newfoundland and Labrador, who said he is “sick and tired of people talking about the cold winter”. He is sick and tired of hearing the stories of seniors in his riding calling to complain that his tax is making it impossible for them to heat their homes.
If he is sick and tired of hearing about the pain and suffering that his Liberal government is causing after eight years, why do they not stop causing that pain and suffering? If he is still sick and tired, why does he not get out of the way and let another government step in and stand up for the people who are trying to heat their homes? Maybe this out-of-touch Liberal needs to hear more, not less, of the stories of his own constituents.
I have an article from the government's own propaganda arm, the CBC, entitled “Diesel, home heating fuels see significant price spike in unscheduled adjustment”. It reads, “Diesel and two types of home heating oils saw massive price increases Friday”, which was the Friday that just passed, “in an unscheduled adjustment by the Public Utilities Board.”
What is the solution the Liberal from Newfoundland and Labrador has to these skyrocketing prices? It is not to produce more affordable energy here in our country, even though his province has access to immense offshore reserves that the has discouraged. His solution instead is to triple the carbon tax on his own residents.
If he is tired of hearing about the cost of home heating now, just wait until he imposes that tax increase. This tax is particularly painful for those people who are already living in economically depressed parts of this country and who are forced to heat with oil and propane, the cost of which is already higher than it is in other places.
As we see across northern Ontario, Canadians will be paying drastically increased home heating bills, with the support of the NDP in its coalition with the Liberals. We have, for example, the member for voting to raise home heating bills on his constituents. An NDP member who was elected to serve his constituents is now serving and bowing before the Liberal by raising taxes on his own constituents.
It is not just in oil-heated communities; it is also in places like Hamilton. The suffering is now spreading. A headline from The Hamilton Spectator reads, “‘What am I going to do, go cold?’: Natural gas bill sticker shock triggers anger for inflation-weary Ontario residents”. What is the solution from the NDP member for ? He wants to triple the carbon tax on hard-working blue collar folks in Hamilton. Thankfully, even though they are temporarily stuck with an NDP coalition member as their MP, the Conservatives are fighting for the hard-working people of Hamilton and opposing this carbon tax increase.
Let me quote further from the same article:
When a nearly $250 natural gas bill arrived for November, Lily Francisci called her parents with questions. Her dad's response: “Get used to it,” the north-end Hamilton resident said, or keep your house at 20 C.
Then December’s bill arrived: $353.08.
Imagine what January's bill will look like, as it was even colder than December. The bills keep rising and the temperature keeps dropping.
Therefore, I announce on the floor of the House of Commons today that the Conservative Party has launched a nationwide campaign to get the NDP-Liberal costly coalition to wake up. This coalition is taxing our people and we have had enough, so we are launching a campaign to keep the heat on and take the tax off.
We will keep the heat on this costly coalition to take the tax off so that not just heat becomes more affordable but food does too. Remember, the carbon tax is actually a tax on the food we eat. Why? It is because when we tax our farmers who produce the food and tax the truckers who deliver the food, we tax the food itself.
Let me note the data provided to me by a major mushroom farm just south of here, about half an hour south of Parliament Hill, called the Carleton Mushroom Farms. It is an unbelievably successful farm that employs about 100 people. It supplies the nation's capital with the mushrooms we eat. Its natural gas carbon tax bill was $9,000 for the month of July. The bill expected for January is $14,275. That is for one month.
Do members think that does not get passed on to consumers? Ultimately, at the end of the day the farmer has to pay the bill somehow. Ultimately, Carleton Mushroom Farms will take a hit. It will suffer, and probably produce fewer mushrooms than it otherwise would, which of course means that we will import more mushrooms from foreign, polluting jurisdictions, driving jobs out and pollution up. The consumer will also have to pay a higher price for those mushrooms.
Why do we not take the tax off Carleton Mushroom Farms so that it can lower the cost of its produce and increase the amount of food it produces in this country? We should be more self-reliant. We have the fifth-biggest supply of farmland per capita on planet earth. It is unacceptable that we cannot feed ourselves. We should be a nation that stands on its own feet, kneels before no nation and feeds itself. That is what will happen.
The pain and suffering is spreading across the land. For example, the other day, I was in an east end Ottawa grocery store and a cook walked up to me. He said that he had to delay his retirement because, after eight years of the , inflation is at a 40-year high and he cannot afford to retire on schedule. The thing that really broke him up was that he could no longer buy the ingredients to cook at home that he uses at work.
He held up a frozen pizza and said that he was stuck eating that frozen pizza rather than making his own food. It was probably a foreign-made pizza that was produced in some faraway land that is generating a lot more pollution, with processed ingredients that are not as nutritious. This gentleman, who has worked all his life feeding other people, is not able to feed himself better than that.
That is because of the inflationary deficits and taxes that the government has imposed. These are the inflationary deficits and taxes that the hon. member for , as my finance critic, has been fighting against. That is why I am so proud to be splitting my time with him.
His story epitomizes the Canadian dream. His parents came here with modest means as immigrants. He grew up in a tough but proud neighbourhood. He went on to study finance, got a finance degree and then went off and opened his own business. He built homes to house our people and paid paycheques to other Canadians.
Do members know what I am so proud of? It has been the tradition that we have big shot Bay Streeters as ministers of finance. Our has created real jobs, worked with his hands, built businesses and helped troubled youth. He has the practical hands-on experience to know what this country should be: a country where everybody who works hard gets a fair shot at life.
When we get rid of the carbon tax, when we cancel the inflationary deficits and when we reform our tax and benefits system so that people bring home more of each dollar they earn, it is not just about mathematics. It about restoring Canada's promise: a country where hard work pays off and where everybody who gets out of bed in the morning and contributes to their country can make it better for themselves and their families.
That is the country we are going to restore. Let us keep the heat on and take the tax off. Let us bring it home.
:
Madam Speaker, after eight long years of the current Liberal government's economic mismanagement, Canadians are paying the price. The Liberals' reckless government spending, coupled with their love of taxes, has caused this inflation crisis. Their failed policies have left this country with a 40-year high inflation, interest rates not seen since the 2008 recession, and continually rising taxes that seem to end up in the hands of wealthy Liberal insiders or sent out the door in inflationary spending. Worst of all, the government is going to triple, triple, triple the destructive carbon tax and add a second one on top of it.
The reckless spending by the current government started even before the COVID–19 pandemic. The 's promise of $10 billion was broken when, even before the pandemic, he had already spent $100 billion. After telling Canadians he would have only modest deficits, he broke that promise completely. Of course, during COVID, the current government kept the money printers going, adding half a trillion dollars to the national debt, and 40% of that spending was not even pandemic-related.
Former finance minister and random Liberal Bill Morneau has admitted that the government overspent during the pandemic. Lucrative government contracts have gone to companies like SNC-Lavalin, WE Charity and the company run by former Liberal MP Frank Baylis. Of course, Canadians got nothing out of those contracts in all those cases, but the 's friends were happily paid off and it cost Canadians. The Auditor General has even reported that $32 billion went to people who should not have received COVID benefits, including prisoners, dead people and even foreign nationals. It seems the Prime Minister ranks Canadians lower than even criminals.
Who can forget the $54 million spent on the ArriveCAN app, which failed to do anything but wrongly send vaccinated Canadians into government-run quarantine centres? What is worse is that the Liberals thought they should add $15 billion a year in spending on contracts that go out to high-priced consultants who have personal connections to cabinet ministers and even the . As the Parliamentary Budget Officer once said, this is not “keeping one's powder dry”.
The Governor of the Bank of Canada, Tiff Macklem, has said that inflation is a homegrown issue. He admitted to the finance committee that the current Liberal government's out-of-control spending drove up the inflation that plagues Canadians today. He even indicated that the eight consecutive interest rate hikes were necessary because the Liberals cannot help but spend, spend, spend.
The former Bank of Canada governor and future Liberal leadership candidate Mark Carney told senators that inflation is a domestic problem. Former Liberal deputy prime minister and finance minister John Manley said that the Liberal spending is working against the efforts of the Bank of Canada to control inflation. He added that Liberal spending is fuelling inflation.
Inflation has also been fuelled by the current Liberal government's adding tax increases after tax increases. There is the triple, triple, tripling of the carbon tax, the new, second carbon tax coming this year, the payroll tax and the undemocratic escalator tax on the drinks Canadians enjoy.
When asked by Conservatives, the Bank of Canada governor admitted that the failed carbon tax is driving up inflation. It is not hard to see why. While inflation caused by Liberal spending has made everything more expensive, the Liberals' carbon tax is punishing Canadians, businesses and farmers for living their lives. Agriculture producers are dealing with higher prices for farm fuels, fertilizers needed to grow crops, and the feed they need to keep livestock alive. We know that, once tripled, the failed carbon tax will cost a typical farmer $150,000 a year, and the agriculture industry could lose upwards of $50 million on fertilizer emissions costs. The price of natural gas will jump as the tripling carbon tax adds about 30¢ per litre. Businesses are taking on the higher costs of buying goods, paying for transportation and paying for refrigeration and storage.
If farmers and businesses want to survive in the 's Canada, they have to raise their prices. At the end of the day, they still need to pay their employees, pay the rent and pay for the Liberal tax increases. When producers making the goods are forced to pay more, it costs more for businesses to buy, transport and store goods, so it is not rocket science to see that it costs Canadians more to pay for the gas, groceries and home heating they need to survive in Canada.
It is that cost of living that is the issue. One in five Canadians is out of money. They are skipping meals or accessing charity services just to meet their basic needs; 60% of Canadians are cutting back on groceries, while 41% are looking for cheaper, less nutritious options. The average rent for a two-bedroom apartment across Canada's 10 big cities is over $2,000 a month, compared to $1,171 a month in 2015. That is an almost 90% increase in rent. The average homeowner's mortgage payments have more than doubled since 2015, going from about $1,500 to more than $3,000 a month. Inflation on the interest on mortgages is up 18% year over year. It takes 60% to 70% of Canadians' paycheques to pay the mortgage, while inflation and the cost of living eat up the rest.
As we see skyrocketing home heating prices, due to the Liberal government cancelling good, clean energy projects that could have been made here in Canada, we also see that the carbon tax takes up about 18% to 20% of everyday Canadians' home heating bills. When Liberals triple, triple, triple the carbon tax, it would take anywhere from 40% to 60% of the bill alone, just on carbon tax.
Eighty per cent of variable rate mortgages have now hit the point where their mortgage payment is entirely just interest. The bank is forcing Canadians to pay more to pay down the principal part of their mortgage, and 45% of those homeowners on a variable rate mortgage will have to sell their homes in nine months. People living in one of the hot housing markets, like Ontario, could lose 30% on the sale of their house if they bought it in the last 12 months.
This carbon tax is a complete failure. It has failed to reach the Liberal emissions targets. In fact, Canada ranks 58th out of 63 countries in climate change performance. We rank lower than China and the U.S., and just barely perform better than Russia. It is clear the Liberal carbon tax is not an environmental plan; it is a tax plan. If Canada is to succeed on the environment and in our economy, government needs to get out of the way, incentivize businesses and let them thrive.
For decades, the private sector has been the innovators and developers of the technology that drives our economy forward. The right approach to addressing climate change is through technology and innovation, not tax. Liberals have crushed the entrepreneurial and innovative spirit and have even driven away investment. Since 2015, Canada has only seen a decline in investors wanting to bring their money to invest in our world-class businesses and industries, because of uncertainty caused by out-of-control Liberal spending, inflation and taxation.
We need to restore affordability and confidence to the Canadian economy. To do that, government is not, and will not be, the solution. Instead, it is time to fire the gatekeepers, cut the red tape and end the punishing tax burden on Canadians. Canadian workers and businesses are ready to get this economy back on track, restore good paycheques for our workers and reverse the damage caused by the Liberal government.
On this side, we know that the only way out of this affordability crisis is to stop the crazy government spending and instead make more of what money buys: affordable homes, affordable Canadian food and affordable, responsibly sourced Canadian energy. At a time of crisis for Canadians, Conservatives and our Conservative leader are listening and ready to act. Canadians are ready too, but they need to get the government out of the way. It is time to end the inflationary spending spree, end the cushy Liberal contracts and stop the tax increases. It is time to axe this failed carbon tax and let Canadians keep more in their pockets.
:
Madam Speaker, I will be sharing my time with the member for .
I am pleased to take part in today's debate. I would like to say that the Conservatives introduced an opposition day motion to talk about the importance of fighting climate change, but they are not quite there yet.
The Conservative Party has had a new leader for 150 days already and yet it still does not have a plan to tackle climate change. It is anybody's guess as to when its plan will be ready. Last time, it took the Conservative Party nearly a year after choosing its previous leader to come up with a plan to fight climate change.
As many members know already, Canada has committed to reducing greenhouse gas emissions by 40% to 45% below 2005 levels by 2030 and to achieving net-zero emissions by 2050.
[English]
Our 2030 emissions reduction plan tabled last March lays out how we will get there. Pollution pricing is the backbone of our climate strategy. It is foundational, because it has been proven to work all over the world, not only to drive down carbon emissions but also to raise innovation and energy efficiency, and to create jobs in the emerging green economy. It also supports and amplifies every other climate measure, and creates an incentive to invest in low-carbon solutions across the economy.
Conservatives used to know this. In fact, carbon pricing is the kind of market-based mechanism that earlier generations of fiscal Conservative thinkers used to embrace. Many in the Conservative Party, including the 's own communication director, used to support carbon pricing, or at least he did until he started working for the Conservative Party. Today's Conservatives are penny-wise and pound foolish.
They have been fighting climate action for years in Canada. Today we face literally billions of dollars in cleanup and adaptation costs from extreme weather events that are stronger and more frequent because of climate change. The fact is that carbon pricing is central to our climate plan, because it is the most efficient and lowest-cost policy to reduce greenhouse gas pollution, and the cost of doing nothing is staggering.
When we introduced carbon pricing in 2019, we were not only putting a price on pollution, but we were also putting in place the building blocks for the future we know we need for ourselves, for our kids and for our grandkids.
[Translation]
Our approach has always been based on a set of ambitious but realistic standards for carbon pricing, the federal reference that gives the provinces and territories the flexibility to implement their own carbon pricing system.
Setting the trajectory until 2030 provides certainty for Canadians and the investor community and will be transformative by creating incentives for the new technologies we need, for both our industry and society.
We have just come to an agreement with all the provinces and territories on increasing carbon pricing. I will reiterate that we negotiated a more ambitious price on pollution with each province and all the territories for the coming years.
[English]
I want to impress on the House just how foundational this price trajectory is to the success of Canadians' low-carbon economy and the jobs that will come with it.
Last fall, at COP27 in Egypt, I spoke with Brian Vaasjo of Capital Power, one of Canada's largest private sector electricity producers. Brian told me that pricing pollution and providing certainty and long-term predictability in pricing are key to unlocking investment on some very good projects, including a $2-billion carbon capture electricity project that would not go ahead without it. Susannah Pierce, president and country chair at Shell Canada, noted that Shell's big investment will not make sense without carbon pricing in Canada, and that regulatory certainty is the key to good business decisions.
The Conservatives have now abandoned the energy investors and energy companies, but they are pretending to be on the side of those facing energy poverty. Canadians have been riding the roller coaster of volatile global oil and gas prices for years, and Conservatives said nothing about skyrocketing profit margins from oil and gas producers. Instead, they make up a lot of misleading claims about the price on pollution.
Here are the facts. About two-thirds of the increase in what Canadians are paying at the pump is due to crude oil prices going up, largely because of Russia's brutal invasion of Ukraine. Another 25% of the price is the result of everything from provincial taxes to refining margins, which have increased by more than 110% in the last two years. That means, all told, 95% of the price of gas has nothing to do with the price on pollution. In fact, the price on pollution puts more money back in the pockets of Canadians, and it remains one of the best ways to fight climate change and keep our air clean.
[Translation]
Stakeholders across the country have told us that consistency and predictability are essential to promote investment in a low-carbon economy. We also know that businesses and industries are developing innovative technologies and approaches to reduce this pollution. They need incentives and clear support to commercialize and implement these technologies. Carbon pricing creates incentives without dictating a particular approach. It lets businesses decide on the best way to reduce their pollution.
[English]
What is most galling are the lies of omission and the things left unsaid, like those quarterly climate action incentive payments that go directly to Canadian households in backstop provinces every three months. For the first time, households in three Atlantic provinces will receive quarterly climate action incentive payments totalling hundreds of dollars a year. The first rebate payment will come in July, which is the same month that the fuel charge will take effect for the first time. The vast majority of households will never be out of pocket, with lower- and middle-income families benefiting the most.
Starting next July, a family of four in Nova Scotia will receive a climate action incentive payment of $248 every three months. In Prince Edward Island, it will be $240 per quarter. In Newfoundland and Labrador, it will be $328 every quarter. For an Ontario family of four, the quarterly payment will be $244 starting in April. In Manitoba, next year's quarterly payment will be $264 every quarter. In Saskatchewan, it will be $340. In Alberta, a family of four will receive $386 four times a year.
In total, 90% of the proceeds from the fuel charges are returned directly to Canadian households through the climate action incentive payments. The rest will be returned to businesses, farmers and indigenous peoples through various federal and provincial programs.
[Translation]
I want to say two things about affordability. First, I know how concerned Canadians are about household budgets in these inflationary times. I understand, and I share each and every concern that Canadians have.
[English]
That is why we are making sure that rebate payments go directly to households every three months, and eight out of 10 get more than they paid.
Equally important is the hard fact that if nothing is done about climate change, it will cost us far more. The parliamentary budget office recently estimated the cost to the Canadian economy of $25 billion per year by 2025 if we go about business as usual.
[Translation]
The status quo is not an option. Some may argue that we can simply go back in time and pretend that climate change does not exist. They would probably have better luck buying cryptocurrency.
Our goal is to keep life affordable while developing a clean economy, good jobs and safe communities. A stable, affordable and predictable price on pollution is a key component of that.
:
Madam Speaker, indeed it is a privilege to rise today to participate in this important debate on carbon pricing. Climate change is one of the most pressing issues of our time and carbon pricing is the backbone of our government's climate plan, as the has just said.
In recent years, climate change has had unprecedented effects on Canadians. Impacts from climate change are wide-ranging, affecting our homes, cost of living, infrastructure, health and safety, and economic activity in communities across Canada. The latest science warns that, to avoid severe impacts of climate change, the most severe greenhouse gas emissions must be reduced significantly and urgently to hold the global average temperature rise at 1.5°C.
We know that farming, in particular, faces these impacts. As noted in the “Canada in a Changing Climate: National Issues" report, agriculture is highly sensitive to climate and faces risks from extreme weather events. The costs of these events can be enormous, in the billions of dollars. Climate change is already increasing the likelihood and severity of droughts in Canada, and we need to act now to reduce our emissions alongside our global partners to avoid even worse impacts.
On March 29, 2022, our government released the 2030 emissions reduction plan outlining how Canada will meet our 2030 target of 40% to 45% below 2005 levels and the path to net-zero emissions by 2050. The plan builds on a strong foundation, starting with Canada's first-ever national climate plan in 2016 and then our strengthened plan released in 2020. Carbon pricing is central to these plans because it is the most efficient and lowest-cost policy to reduce greenhouse gas emissions.
Canadians and businesses understand that putting a price on carbon pollution spurs the development of new technologies and services that can help reduce their emissions cost-effectively, from how they heat their homes to what kind of energy they use to do so. Our government has established a globally recognized pricing system that is encouraging decarbonization across the economy while also putting money back in the pockets of the average Canadian household.
Our approach is flexible. Any province or territory can design its own pricing system based on local needs, or can choose the federal pollution pricing system. The federal government sets minimum national stringency standards, called the benchmark, that all systems must meet to ensure they are comparable and effective in reducing GHG emissions. If a province decides not to put a price on carbon pollution or proposes a system that does not meet these standards, the federal system applies.
On November 22, 2022, our government announced the provinces in which the federal carbon pollution pricing system will apply for the 2023 to 2030 period, as well as the funds that will be returned to households in each province that has the federal fuel charge. Again, carbon pricing systems in Canada are designed to maintain competitiveness and position Canada as a leader in the global low-carbon economy.
Businesses and industries are developing innovative technologies and approaches to reducing emissions. They need consistent, predictable policies and strong incentives and supports to put these technologies into practice. The multi-year carbon pricing regime established by our government creates those incentives without dictating any particular approach. It lets businesses decide how best to cut their emissions.
Federal and provincial carbon pricing systems for industry are designed to ensure there is a price incentive to reduce emissions, spur innovative and encourage the adoption of clean technologies while maintaining Canadian industry competitiveness vis-à-vis global competitors. The federal approach to carbon pricing is designed to maintain the consistency demanded by industry and investors while prioritizing affordability for Canadians, including farmers.
Most households and jurisdictions where the federal fuel charge applies end up with more money in their pockets than what they paid. When federal fuel charge proceeds are returned directly to these households, eight out of 10 families actually get more money back through the climate action incentive payments than they faced in increased fuel costs.
In 2023, for example, quarterly climate action incentive payments for a family of four will increase to $386 in Alberta, $264 in Manitoba and $340 in Saskatchewan. This is the prairie economy I come from, and those payments will be made quarterly. Families in rural and small communities are also eligible to receive an extra 10%.
I would like to emphasize that farmers continue to have significant relief from carbon-pollution pricing under the current federal approach. While farmers are key to reaching Canada's climate targets, Canadian farmers are not required to face the challenge on their own. Emissions from livestock, which represent the majority of greenhouse gas emissions from agriculture, are not priced. There is also no carbon price on the gasoline and diesel used in tractors and other farm machinery, just as fishers do not pay the price on fuel for their vessels.
Greenhouse operators also get 80% relief from the fuel charge on natural gas and propane used to heat their greenhouses. Recognizing that many farmers use natural gas and propane in their operations, our government has also established a refundable tax credit for farming businesses operating in provinces where the federal fuel charge system applies. There are also opportunities for farmers to earn revenue by reducing emissions, under provincial and federal GHG offset credit programs, which are being developed.
We will be reviewing carbon pricing systems in Canada by 2026 to ensure they continue to be consistent and effective across Canada. This will provide an opportunity to take stock, together with provinces, territories, indigenous organizations and governments, to make any necessary changes in a way that maintains strong incentives and minimizes disruption.
Agricultural producers are key partners in the fight against climate change and are already taking action to improve the sustainability of their operations. Our government is making other significant investments to support this. For example, we are investing $470 million in the Agricultural Climate Solutions-On-Farm Climate Action fund to help farmers adopt sustainable practices, such as cover crops, rotational grazing and fertilizer management. We are also investing $330 million to triple the funding for the agricultural clean technology program, which supports the development and purchase of more energy-efficient equipment among farmers.
Climate change is a serious challenge, but it is also an opportunity. Analysis by the Global Commission on the Economy and Climate estimates that transitioning to a low-carbon economy will generate 65 million new jobs. Canadians want to take advantage of these opportunities.
Just as we are putting a price on carbon pollution, we are also making historic investments in clean technology, innovation and green infrastructure to drive growth and reduce pollution, including $9.1 billion in new investments to cut pollution and grow the economy as part of the 2030 emissions reduction plan.
Canadians know the cost of inaction on climate change. They know it is enormous. This includes more severe floods, forest fires, heat waves and droughts here in Canada, and the potential for massively disrupting the climate worldwide.
Canadians have been clear about what they want. They want clean air, good jobs, a healthy environment and a strong economy. That is what this government is giving Canadians.
:
Madam Speaker, using institutions such as the Bank of Canada and the parliamentary budget office to lend the motion credibility in points (i) and (ii) is misleading, to say the least. I am compelled to speak out against this kind of manipulation.
At point (i), the motion states that “the Bank of Canada governor has admitted that the carbon tax contributes to inflation”. Inflation was not caused by the new tax. The tax is a necessary measure designed to change and orient the behaviours of Canadian society as a whole to achieve a net-zero future. Perhaps the official opposition needs to be reminded that Canada made a commitment to the global community to achieve net zero by 2050.
There is a global economic context that gave rise to the conditions we are experiencing now. Simplifying inflation like that is irresponsible, and I think the public deserves a much better motion than this one.
It goes without saying that taxes affect inflation, but any motion we put forward should be grounded, first and foremost, in the concatenation of factors and economic circumstances. One-dimensional motions like this are best avoided, but that is not what we are seeing here.
The official opposition appears to be unaware that there are many sectors of the global economy that have been adversely impacted by the pandemic, and that there has been an associated domino effect. I will spare the House the details of the other factors involved, including the war in Ukraine.
Point (ii) of the motion states that “the Parliamentary Budget Officer says that households will pay more in carbon tax costs than they get back”.
I am not sure how they so carelessly arrived at this conclusion, because what they are really doing is using the Parliamentary Budget Officer’s words for their own ends. They skilfully cut out all the nuances necessary to understand and appreciate the results of the analysis, namely that the Parliamentary Budget Officer is focusing on household net carbon costs for 2030, the year in which the tax should reach $170. Things will change between now and then.
The Parliamentary Budget Officer analyzes both the fiscal impact, namely the levy of the goods and services tax, and the economic impact, meaning the lower income as a result of pricing.
I forgot to say that I will be sharing my time with the hon. member for .
When the Parliamentary Budget Officer considers only the fiscal impact, the vast majority of households in backstop provinces see a net gain, as they receive rebates that exceed their carbon costs.
It is also important to note that, even considering the economic impact, net carbon costs have a progressive impact. Pricing affects households differently, depending on the composition of their spending on goods and services. According to one report, “high-income households, which have relatively high carbon-intensive consumption, bear a larger cost burden compared to lower income households”.
It is therefore absolutely false to claim that, in the current context, households will be paying out more than they receive. That would be in the 2030 fiscal year.
The Conservatives’ motion is first and foremost an attempt to eliminate the measure required in Canada, the country that, after all, still subsidizes hydrocarbons; the country where the most polluting vehicles on the planet are made and driven, according to the International Energy Agency; and the country beset, dare I say it, by a type of political schizophrenia in the fight against climate change, which results in contradictory announcements with meticulously crafted virtuous words and messages.
I will agree that, with this motion, the Conservative member is taking a direction that differs from that of the government. I just presented a few truths about the current situation in Canada and summarily described the government’s approach to climate change, because, as I would remind members, Parliament has a responsibility to be transparent to voters. I am not naive, and I do not believe in miracles, but I believe that it is important to raise the issue of transparency.
It is a well-known fact that the Conservative Party is first and foremost concerned about the oil and gas industry. That is essentially its whole vision. Its approach, which I would call demagogic and populist, is patently obvious.
The carbon tax does not even affect the largest emitters, since the government built in safe-conducts, mitigation measures to ensure that the shock to these poor companies would not be too brutal. This bodes well for a sector with record-breaking profits, a boon for shareholders. Need I remind members that ExxonMobil, or Imperial Oil, raked in $74 billion in profits?
We would not want the shock to these companies to be too brutal. This is absolutely ridiculous. The elimination of the carbon tax seeks first and foremost to help the oil and gas industry. It is the best solution to lock society into negative behaviours that hinder our fight against climate change.
Since I am a proponent of transparency, I must say that I do not believe that the Conservative Party will see the value of implementing any meaningful measures whatsoever to encourage Canadians to change their behaviours and reduce their dependency on oil. I also do not believe that they will see the value of supporting public policy focusing on energy efficiency. I certainly am not expecting the Conservative Party to support the measures proposed by the Bloc Québécois, which would have a direct impact on the very people the Conservatives seem to want to help. For example, we are proposing adjusting the increase in old age security, building social and community housing to meet current needs, improving the energy balance of hundreds of thousands of commercial buildings by fostering energy efficiency policies aimed at breaking our dependency on oil and gas, and taxing massive fortunes, even temporarily.
It is our responsibility to implement measures that will ultimately change people’s behaviours. I will give the example of cigarette companies. In 2015, the British Medical Journal analyzed 100 Canadian and American studies on tobacco taxes. Findings showed that taxation was a powerful tool to reduce smoking. Thanks to the tax, people who smoked either quit or began to smoke less, and that had a positive impact on young people. Measures like this are necessary to change our behaviours, and we need to change our behaviours if we are to take up the climate challenge.
The oil and gas sector has been aware of the impact of its pollution since the 1970s. The harmful effects of air pollution on human health have been widely documented. This is compounded by the impact of the growing levels of greenhouse gas emissions. We need to stop pretending that we are not dependent on oil and gas or that this dependency has no financial, economic or health repercussions. I am not talking about the benefits to oil companies, which, as we know, are considerable. Their senior executives, the insurance sector and the banks continue to allot a disproportionate share of their investment portfolios to the oil industry.
I am talking about the health and environmental costs. Air pollutants such as toxic gases like nitrogen dioxide and sulphur dioxide reduce people’s quality of life and increase the prevalence and incidence of acute and chronic disease. Since air pollution affects almost everyone on earth, it is a global public health priority. Moreover, as the World Health Organization put it, climate change is the greatest health threat of the 21st century.
The stubborn refusal to link pollution to extremely serious health problems and to recognize that dependency on fossil fuels adversely affects human health and the environment is irresponsible. I would even say that it is cowardly not to make the connection. Medical and scientific researchers who study the causal links between the environment and the development of human pathologies are now planning their work on the “multimorbidity” phenomenon.
We need to keep the fuel tax. We cannot give in and cancel it, which would be dangerous and get us nowhere. I never said it would be easy. It is not easy, but we have to do it. There are solutions when it comes to improving the quality of life for most people in the current environment. I would like to end my speech by saying that all we need is the political courage to implement them and find a way to strike a balance between the most pressing needs and interests. Most importantly, we have to stop repeating falsehoods in the belief they will come true, and we need to be transparent.
:
Madam Speaker, what a surprise this morning's motion is. For the umpteenth time, the Conservatives are proposing that the carbon tax be eliminated, because they believe this is the best way to help ordinary people deal with the rising cost of living.
This is the result of the brainstorming they did over the holidays five weeks ago. They racked their brains and looked for solutions. Now they have decided to propose the same thing they have proposed to Parliament four or five times already, even though the other parties said no every time.
Once again, the Conservatives are trying to solve real problems with fake solutions. People are rightly concerned about the rising cost of living, particularly at the grocery store. However, that does not mean that the price increases are a direct result of the federal carbon tax.
Eliminating the carbon tax would have a limited effect. As my colleague so ably explained, it would have a one-time effect, but no real impact in the long term. Inflation hits across the board, so eliminating the tax on one product will have no effect on the overall problem.
The Conservatives are using the skyrocketing prices of food and other goods to pursue their long-standing ideological crusade against the principle of putting a price on carbon pollution, by attempting to link it to the ongoing inflation crisis. However, the price of grain, which includes the price of meat because cattle feed on grain, is negotiated based on the Chicago Board of Trade. It is hard to see how carbon pricing in the Canadian Prairies, for example, could affect the Chicago Board of Trade.
Ironically, of all the tools available to fight global warming, which today's Conservatives claim they want to do, carbon pricing is probably the public policy approach that is most compatible with their political philosophy. It is a solution based on market forces rather than direct regulation.
As we know, since we have often discussed it, pollution pricing is a system that varies depending on the government. The provinces and territories either adopt a pricing system tailored to their needs or join the federal system, which includes a regulatory charge on fossil fuels and a performance-based system for industries. I should remind my colleagues that the federal pricing system does not even apply to Quebec.
I would be curious to hear my Conservative colleagues try to explain how eliminating the federal carbon tax will help Quebeckers save money, since I admit I do not understand. If, as the Conservatives claim, the federal carbon tax were responsible for price increases, then inflation would be higher in the provinces where carbon pricing exists than in the provinces where it does not. That is not the case, however.
The wording of the Conservatives’ motion looks serious and has the ring of truth. However, if we look a little more closely, we can see that that is not necessarily the case, as happens all too often with the Conservatives' motions.
Point (ii) of the motion states that “the Parliamentary Budget Officer says that households will pay more in carbon tax costs than they get back”. We only need to read the document in question once to realize that the Conservatives' motion distorts the Parliamentary Budget Officer's findings regarding the federal carbon pricing system.
Contrary to what the Conservatives have been saying, the tax does not end up costing 60% of households. That is a projection for 2030-31 at $170 per tonne. Moreover, the tax is progressive because of the refund: lower-income families will see a net gain. Currently, 80% of households get more back than they pay in carbon tax. That includes all low- and modest-income households, and that is as it should be. As we all know, inflation hit basic necessities hardest in 2022. Housing prices went up by 8.7%, food by 9.8% and gas by 28%. Core inflation, which excludes the food and energy costs that eat up a disproportionate amount of low-income households' budgets, was 5.3%.
The problem with the carbon tax has more to do with the rules for businesses. Small and medium-sized businesses are being penalized while major emitters take advantage of carbon tax relief programs designed to increase fossil fuel production. Oil companies pocketed the proceeds of massive oil and gas price increases attributed to international tensions and the war in Ukraine, reporting record profits in 2022.
I will repeat something my colleague said, because it is important. Imperial Oil raked in $58 billion U.S. in profits, which corresponds to $74 billion Canadian. That is unprecedented. Oddly enough, the Conservatives are not proposing to tax these excess profits and redistribute them to those who are paying the price.
Why would we not do that? It seems to me that this could help Quebeckers and Canadians cope with inflation. Why should we let the oil companies make billions of dollars on the backs of poor people who are struggling to pay their housing, grocery and electricity bills? Last August, UN Secretary General Antonio Guterres denounced the greed of the big oil and gas companies, which are making outrageous profits on the backs of the poorest people and at great cost to our climate.
In their motion today, the Conservatives are proposing instead to exempt them from the carbon tax. This is nonsense. Let me remind the House that Canada's greenhouse gas emissions have increased by more than 20% since 1990, largely due to emissions from the oil and gas sector. The real challenge is to create a sustainable and resilient economy, one that creates wealth while respecting nature's limits, and to make this transition to the new economy in a way that is fair to workers and families.
This requires reflection and searching for more far-reaching and perhaps more complex solutions than what is on offer in the usual Conservative rhetoric. We should also remember that most of the Conservative's solutions deprive the government of revenue. That does not necessarily mean that household incomes will increase. It also does not mean that big corporations will pay their fair share of taxes or that the banks and multinationals will reduce their profit margins while people are making sacrifices and seeing their purchasing power decline sharply.
As was mentioned, inflation is real and affects all sectors, including housing, food and motor vehicles. This requires measures that are far more comprehensive than those proposed by the Conservative Party's rather populist position.
I would like to see the Conservative members propose concrete solutions to fight climate change instead of spending their time trying to abolish measures that will fight the climate crisis. However, like the abolishment of the carbon tax, it will probably never happen. In any event, hopefully that will not happen as long as the Liberal government is in power. As parliamentarians, we must force the government to take further action to address the risks of the climate crisis. We do not discuss this enough.
Obviously there are many solutions for helping the public get through the unfortunate effects of inflation. The Bloc Québécois has proposed several. I will leave it to my colleagues to talk about that later, but the solution that really speaks to me is reducing our dependence on oil. The price of gas, which jumped by 33.3% between December 2020 and December 2021, is a major determinant of inflation. It drives up the price of every good whose production requires fossil fuels. Beyond the conditions around the economic recovery from lockdown, the price of oil is chronically unstable and known for its tendency to increase suddenly and drastically, so much so that inflation metrics do not factor in energy. Since the cost of oil is essentially tied to the London and New York stock exchanges, there is little that can be done to mitigate the fluctuations and price hikes.
However, it is possible to make the economy more resilient to these fluctuations by reducing our reliance on oil and by accelerating the transition to renewable energies. We need to take real action to accelerate the energy transition to shelter the economy from sudden spikes in the price of fossil fuels. This can be done in several ways. I will name a few and I invite the Conservatives to pick their favourite one.
There is the electrification of transportation, energy retrofitting and support for businesses that want to move away from fossil fuels and toward renewable energy. Financial flows could also simply be redirected toward green economic development. There are many options, and they would have a real impact on people's wallets. There is another easy solution that I think several parties in the House like, and that is making things fair and taxing the ultrarich. As I mentioned earlier, why not tax oil companies, which are generating enormous profits?
I think that the proposal that has been made several times to do away with the carbon tax is not the right solution. I invite my Conservative colleagues to propose better solutions to help citizens deal with the increased cost of living.
:
Madam Speaker, I am pleased to rise today to speak, once again, on the important topic of climate change. Unfortunately for the Conservatives, I think we have had seven motions on the carbon tax and not a single one that talks about the problem of climate change.
We know that even if we had stabilized climate change in 2015, the costs already would have taken $25 billion off of GDP growth in Canada. Therefore, the economic costs of not acting on climate change are quite large.
We can talk about economic costs all day long, but we also need to talk about other direct costs like fires and floods. We need to talk about health care costs, increased lung problems, asthma problems. We need to talk about the results of fires with respect to smoke, and drinking water quality, as toxins are released into the atmosphere and end up in our drinking water.
In all those things, we also need to talk about the actual losses suffered by families and individuals.
We had a huge heat dome in British Columbia and across western Canada in 2021. In the week from June 25 to July 1 of 2021, the B.C. coroner's office estimated that there were 619 heat-related deaths, 619 families losing loved ones as a result of an event, which the Columbia Climate School of Columbia University studied very carefully and laid squarely at the feet of climate change. It said that there were two factors that caused that heat dome. One was the disruption of the jet stream and the other was the warming of oceans and of the soil.
Instead of expecting something like a heat dome once every 100 or 200 years, the Columbia Climate School at Columbia University now says we need to expect those kinds of events once every 10 years.
During that week, the village of Lytton set a new record for a temperature in Canada, 49.6°C. The next day, after setting that record, a wildfire swept through the town, killing two people and destroying the entire town of Lytton. More than 200 homes were lost.
We can talk about large numbers in climate change, but when we actually look at what happens to individuals, to families and to communities and what will happen increasingly often as climate change proceeds, it seems misdirected to spend all our time talking about a carbon tax, misdirected for two very good reasons. One is, again, the fact that the larger impacts of climate change will cost far more than any climate-related carbon tax. I have not even talked about things like the drop in agricultural yields and the loss of fisheries that are coming up, all of these things we see on the horizon as a result of the climate change.
I forgot to say at the beginning, Madam Speaker. I will be splitting my time with the member for , so I apologize for that.
When we are talking about the Conservative motion today, the Conservatives continue to repeat and bring back their slogan, and I hesitate to repeat it myself, which has something to do with something tripling.
In fact, we know that nothing has actually tripled. In fact, we know that where families will face increasing costs directly through fires and heat-related costs, they will also face it in increased insurance premiums for their home insurance, as insurance companies attempt to recover their losses from these climate disasters.
In fact, if we look at the increase in the carbon tax, which is designed to reduce our emissions and has been proven as one of the most effective ways to do so, on April 1 of this year, the tax will increase from $50 per tonne to $65 per tonne, and I do not see any system of math where that is a tripling.
When we look at the increase of the tax on a litre of gas, it goes from 11¢ a litre to 14¢ a litre. Again, there is no tripling there. Also, that is way less than the inflated profits that the oil companies have been squeezing out of all of us during this climate crisis.
Focusing on the carbon tax seems misdirected at best, especially when over half the households in Canada are not affected by the carbon tax when it comes to things like home heating.
In British Columbia, we have a different scheme. Therefore, taking the carbon tax off home heating would nothing to relieve costs for British Columbians or Quebeckers, who also have a different scheme.
I will politely call this a sleight of hand with figures. We know right now that eight out of 10 households get more back on their rebates than they pay in carbon tax. The Conservatives like to cite a parliamentary budget office report, which talks about 2030 and about estimates of what might happen in seven to eight years from now. Again, speaking about tripling and using figures like those being used here is at best inaccurate.
What has the NDP said about things like home heating costs? At this time of inflation that is certainly a great concern. I remember that one of the times this motion came forward we asked the Conservatives to accept an amendment to their motion to support removing the GST off home heating for every household in Canada and they refused. They were so focused on the carbon tax that they refused a measure that would have helped every Canadian household meet both the costs, specifically of home heating, and the generalized squeeze that they were finding on their incomes and on their ability to make ends meet at the end of the month.
In his opening speech on this motion today, the talked about nuclear power. I have heard some other members in the House, including some on the government side, talking about nuclear power as if it somehow provides some kind of solution to climate change. The member for said that it would be a good way to combat emissions. Let us take a look at that backward-looking, rear view of the world.
Nuclear power is far too expensive and far too slow to provide any solutions to our emissions crisis at this time. We need to reduce emissions right now. The average planning time to construct a new nuclear facility is over 10 years. That is from start to finish. We know when construction delays are factored in that the actual time for a new nuclear plant to come online around the world now is about 15 years. That is way too late to address the climate crisis we are in now. Let us say we ignore that and nuclear power were to go ahead. What would it cost to build nuclear power as opposed to renewables?
If we take the all-in costs right now, the best figures I could find for solar and wind power, including the cost of storage and the cost of the networks that must be built, is about $2,000 per kilowatt hour of production for renewables. That has dropped 69% over the last decade. Technology is improving and with economies of scale, the cost of renewables continue to drop each and every year.
Over the past decade, nuclear costs in contrast increased 25% in that same period. There is no indication that those costs will drop any time in the future. If we are talking about large-scale nuclear power projects, the costs are estimated at over $10,000 per kilowatt hour. That is five times the cost of renewables. That is five times as much energy one could produce for the same investment from renewables over nuclear, and of course it could be done now instead of in 10 to 15 years.
If we are talking about what some people like to talk about, the new technology of nuclear, which is small-scale nuclear reactors, the cost for small-scale reactors is estimated at $16,000 per kilowatt hour. That is 16% more than a large-scale project and eight times mores than renewables. Therefore, by any stretch of the imagination and by any measure we want to use, it is foolish to talk about nuclear energy as a solution to our climate crisis. Instead, we need to be talking about renewables.
The other part, which I have been interested in ever since I became a member of Parliament, is that these jobs in renewable energy use many of the same skills that workers have in the current energy industry in places like Alberta, Saskatchewan and Newfoundland. We need to focus on investment in those renewables and investment in creating those well family supporting jobs in renewable energy.
We cannot really ask ordinary working families to pay the cost of this transition with their jobs and with their houses. We have to ensure that those new jobs in renewable energy, those sustainable jobs, will be in place for workers as we head into a future where hopefully we can avoid the climate disaster that is on the horizon.
:
Madam Speaker, I happy to enter this debate today.
There is no question that people are struggling to pay for the rising cost of living on groceries, housing and energy. Just name it and they are struggling, while billionaires and big corporations are getting richer than ever. Big oil companies and CEOs are getting wealthier off the backs of Canadians, who are struggling with the rising cost of living and dealing with the devastating consequences of extreme weather caused by the climate crisis.
B.C., my home province, is still trying to recover from its devastating wildfire and floods. In 2021, there were 1,600 fires in British Columbia, and together they burned down 8,700 square kilometres of land. The summer of 2021 saw the village of Lytton burn to the ground, with the cost estimated at $78 million. That is not to mention the emotional trauma and damage this has done to the community and individuals who suffered this loss.
Then came the floods in November 2021, when the communities of Merritt, Princeton and Abbotsford in southern British Columbia were flooded, with an estimated cost of $450 million in damages. Again, that is not to mention the emotional trauma that people are still struggling with.
Of course, B.C. is not alone in this experience of extreme weather. This is happening across the globe. It is happening right here in Canada from coast to coast to coast. I will not go on to list all the examples, as we all know them and have spoken about them in this House. However, what is clear is that urgent action is needed to address the climate crisis.
The Conservatives are choosing to close their eyes and turn a blind eye to this reality. To be clear, carbon pricing is revenue-neutral, so all revenues are returned to the province or territory in which they are generated. Households receive 90% of revenues raised from the fuel charge through a direct rebate, and these rebates are paid back quarterly in my home province of British Columbia. There is also an additional supplement available to people who live in small and rural communities.
The PBO has estimated that eight out of 10 households will receive more back in rebates than they pay in fuel charges. The Conservatives' claim that 60% of households incur a net loss is based on the PBO's estimates of the economic impact of federal carbon pricing in 2030. That is seven years from now, just to be clear and to put that on the record. Those estimates incorporate a projected loss in economic efficiency from carbon pricing and do not attempt to account for the economic and environmental costs of the climate crisis. I just put on the record the cost to British Columbia when it experienced the floods and wildfires. That has not been accounted for.
Looking at the direct fiscal impact only, the same PBO report found, “For the vast majority of households in the backstop provinces, their rebates exceed their carbon costs.” The net benefits of the federal carbon pricing system are broadly progressive by income group. Households with the lowest incomes receive the largest net transfers, and only the wealthiest households pay more than they get back in rebates.
Why let the facts get in the way of the rhetoric? Why let the facts get in the way of the Conservatives' attempt to fundraise for their own political gain at the expense of the climate crisis? Instead of focusing on real solutions, they choose to engage in cheap politics. That much is clear.
The Conservatives said no to the NDP's proposal to exempt the GST on home heating. That would have made a real difference in support of everyday Canadians who are struggling to pay their energy costs. However, the Conservatives said no to that and rejected it. That is the truth.
They also refuse to go after the biggest polluters and refuse to go after the ultrarich. When the New Democrats called for a tax on the excess profits of huge corporations to make life more affordable, the Conservatives and the Liberals voted no to making big oil companies pay what they owe to help families cope with the high costs of living. They refused to go after big oil, which is making record profits to the tune of $147 billion in profit last year. The Conservatives have selected to give them a free pass instead.
Under Canada's carbon pricing system, the biggest polluters pay the lowest carbon tax rate. Loopholes allow for oil and gas companies to only pay a tiny portion of the costs for their pollution. In fact, 80% to 90% of emissions are exempt. Suncor only pays one-fourteenth of the full carbon price. These loopholes need to be closed so that big oil pays what it owes for its pollution. More than that, the UN Secretary-General said, “Polluters must pay”, and called on countries to implement a windfall profit tax on fossil fuel companies.
The Conservative government in the U.K. has already put a 25% windfall tax on oil and gas profits. The EU has announced plans for a tax on windfall profits. Spain, Greece, Italy, Hungary, Romania and Bulgaria have all implemented a similar levy, yet both the Liberals and the Conservatives oppose making big oil companies and the ultrarich pay their fair share.
The NDP has a very different perspective. This corporate greed has to stop. Families are struggling, and one way to help them tackle the high cost of living is to put in a windfall tax on excess profits for the ultrawealthy. Both the Liberals and the Conservatives need to step up and support the people across this country. They have voted against the NDP's motion on an excess profit tax for the ultrarich to help struggling families. It makes no sense.
The federal carbon pricing system, by the way, only applies to provinces and territories that do not put a price on pollution or do not meet the federal standards. Across the country, Quebec, Nova Scotia, Newfoundland and Labrador, the Northwest Territories, British Columbia and New Brunswick all have their own carbon pricing solutions that they have already put in place. That means that what the Conservatives are talking about with their rhetoric would not actually help those provinces and territories.
The claims that he is there for the working people, the working class, and we heard it today in his speech. What do they want? They want the government and the Conservatives to support the fight against greedflation. They want that action. They want to see a windfall tax or an excessive profiteering tax for the ultrawealthy CEOs. They want real solutions, not just slogans. Divisive rhetoric and fearmongering will not help with the struggles people face every day.
I would be remiss if I did not point out the offensive comment that came from the . He called my riding “hell on earth”. It is despicable that he would use that language to describe any riding in this country. Of course, our community is struggling; we are struggling. However, we have people in our community who are working every single day and putting their lives on the line to support people in the community. For the leader of the Conservatives to call my riding hell on earth is despicable, and he needs to apologize.
:
Mr. Speaker, I will be splitting my time today with the member for .
I am very pleased to speak today to our Conservative motion to cancel the carbon tax. People will often say that our role as the official opposition is to question the government and hold it to account, but they also ask what we would do differently if we were in government. Today, our motion to immediately cancel the carbon tax would give Canadians an actionable item to help address the 40-year-high inflation that is hurting households, farmers, not-for-profits and small businesses right now. I hope that all members in the House will support this motion.
I look for every opportunity to bring the voices from my riding of Kelowna—Lake Country to Ottawa. With the debate today on the Liberals' failed carbon tax, I would like to quote Bob, who wrote to me recently. He wanted to inform me that his household had “just received our house gas bill, and we have a carbon tax of $32.24” even though his family had “installed a high-efficiency furnace”. Therefore, even when Bob takes action to reduce his carbon footprint, he still gets hit with a tax bill. There is a reason for that: The carbon tax is a tax plan, not an environmental plan. It is a classic high-tax Liberal move for the high-spend Liberal agenda.
The results of this policy are now on full display. For Canada's climate change goals, the Liberals have missed every target they set and left Canada 58th out of 64 countries on climate performance. This is according to the new Climate Change Performance Index presented at COP27 last year. However, it does not have to be this way. The U.S. does not have a carbon tax; therefore, Canadian people and businesses are at a disadvantage because they have to pay more taxes than Canada's closest trading partner does.
This Liberal carbon reduction plan is here to tax Canadians. I was speaking with a young woman recently who is a university student living in her parents' house. In addition to being stressed out for herself, she was also very concerned about her parents, which really touched my heart. She said her parents are middle class and she sees how hard they work. She said their household expenses are not keeping up, and she is worried about her parents' stress level and future retirement. After eight years, the Liberals' economic plan is to keep increasing the carbon tax, even though Canadian families, farmers, not-for-profits and small businesses are being squeezed by 40-year-high inflation and the largest jump in interest rates we have seen in a generation.
The Bank of Canada's governor, Tiff Macklem, addressed finance committee members in a letter. He said that the Bank of Canada's experts have calculated that the carbon tax is contributing to the inflation crisis. According to Mr. Macklem, removing the carbon tax on gasoline, natural gas and fuel oil would have reduced the level of inflation that Canadians are facing. However, instead of giving Canadians relief, recognizing the generational inflation crisis in our country and eliminating or even just pausing the carbon tax increases, the Liberals are once again planning to increase the tax on April 1.
This cruel April Fool’s Day increase is not a joke to the single parent who has to fill up their car to take their kids from school to appointments and extracurricular activities. It is not a joke to the small business owner who still holds over $100,000 in new debt because of government pandemic policies and who finds it harder to make payments and cover their bills every month because of inflationary cost increases. It is not a joke to the senior who sees their CPP and OAS pensions shrink compared with rising inflation, making them question whether they can afford their heating bill next month.
Richard from my riding wrote to me recently, saying, “We got our first OAS cheque of 2023. It went up $2 per month. That means we can buy half a grapefruit once a month. How do the Liberals and NDP figure that helps seniors? When you figure inflation in, we have lost money, so there goes our half grapefruit.”
Conservatives have brought the heartbreaking stories of many Canadians to Parliament. However, Liberal ministers shamefully brush them aside and continue to double down on the harmful policies that are squeezing our middle class.
This Conservative motion today is calling on the government to give people a break and immediately cancel the carbon tax.
The Liberals shrug off worry about the carbon tax hike and say that it is not a big deal because Canadians will be getting money back in rebates. In reality, despite what the Liberals claim, most Canadians will pay more in carbon tax than what they will receive back.
The Parliamentary Budget Officer, a non-partisan office, has calculated that in provinces where the Liberal government has forced the carbon tax directly onto residents, most households will see a net loss in their income as a result of this tax. In provinces like B.C., which collects the carbon tax and leaves it up to the provincial government to determine if it gives any back to its people, the federal government still imposes the amount that has to be charged.
By 2030, according to the Parliamentary Budget Officer, some households will be paying thousands more into the carbon tax than what they will receive in rebates.
From the Parliamentary Budget Officer to the Bank of Canada and regular Canadians, it is very clear: This carbon tax is hurting Canadians, who are already struggling with a generational cost-of-living crisis. We have a housing crisis, an economic slowdown, and now, further tax increases.
For residents in my community, an increase in the carbon tax means paying more for essentials from farm to table. I want to talk about how the carbon tax affects farmers. About 45% of the land in Kelowna—Lake Country is agricultural land. Farmers across B.C. and Canada are being hit by the carbon tax, and this is affecting our food security.
Farmers know what the carbon tax does to their products. It raises the cost of growing, packaging and shipping them. This is multiplied if an agricultural product is turned into a value-added product, where the costs are added at each stage because of the carbon tax for production and distribution.
Ultimately, these businesses make less, while some costs are passed on to consumers. This continues the cycle of ongoing inflationary increases the Liberals are creating with the carbon tax.
One of Canada's top agriculture experts, Dr. Sylvain Charlebois from Dalhousie University, told the agriculture committee that the cost chain will not just worsen if we continue with the carbon tax. Rather, it will collapse. Too many farmers across Canada are at risk of their farms falling apart altogether.
I should not have to explain the domino effect that this will cause on our grocery bills. We have already seen a surge of food bank usage. The Central Okanagan Food Bank reported a yearly increase of 30%, which is similar to numbers that have been reported across the country.
A family knows what the carbon tax means: a freezer less full, a fridge less stocked and a cupboard emptier. A restauranteur knows what the carbon tax means: higher costs for all their ingredients.
In my opinion, the Liberals have a clear choice to make today, as do all members in this House. They can continue with their activist, inflationary agenda of increasing carbon taxes, which has been proven not to work since the Liberals have not met any of the greenhouse gas emission goals.
Alternatively, they can acknowledge that after eight years of Liberal policies, they are causing inflation to be as high as it is and that they need to reverse course on their inflationary policies, which are crushing Canadians' pocketbooks and spirits.
There is hope. A Conservative government will put people first.
:
Mr. Speaker, I want to thank my colleague from for her passionate speech. I think she demonstrated that the carbon tax does not need to be increased. That is what we are calling for.
People keep saying in their speeches today that the Conservatives will not let up on this topic and that we keep repeating the same message in our opposition motions. Why would that be? It is because we in the Conservative Party want to work for Canadians.
Economically speaking, we are in a precarious position. We are on the edge of a crisis, and by all indications, things are going to get worse in the coming months.
Our Conservative conscience is prompting us to beg the government to give Canadians some breathing room. It is odd that we are being accused of hammering away at this issue. I think it is our duty as parliamentarians. Our Conservative values will always motivate us to go in that direction.
I would like to remind the House that my colleague from moved an opposition motion today. It is clear. I am not saying that out of partisan pride or sheer stubbornness. We just need to take a good look at the situation.
The first point in today's opposition motion states that “(i) the Bank of Canada governor has admitted that the carbon tax contributes to inflation”. It is not our partisan colleagues, the Bloc Québécois, the NDP or the Liberals who are saying this; it is the Governor of the Bank of Canada. It is important to understand that there is some separation. Perhaps that makes the information more serious, unequivocal and impartial.
The Governor of the Bank of Canada is not the only one backing up our discourse and our request. The second point of the motion states that “(ii) the Parliamentary Budget Officer says that households will pay more in carbon tax costs than they get back”.
The Liberals are saying that there is no problem with their tax because they are putting the money back into taxpayers' pockets. The Parliamentary Budget Officer says that, yes, there is a rebate, but it is not equal. Once again, this leaves less money available to Canadian taxpayers.
The third point of our motion states that “(iii) the government plans to triple the carbon tax, which will increase the price of gas, groceries, and home heating”. That is a fact.
Let us consider Canadian citizens. I hope that all members of the House meet with their constituents. People in Portneuf—Jacques-Cartier are telling me that everything is more expensive.
If the government were sensitive to those concerns, it would do what several other countries are doing and cancel all tax hikes. I think that is reasonable under the circumstances. That said, the Liberals and the government are not that sensitive.
The Liberals have been in power for eight years. They talk until they are blue in the face about how the carbon tax is the best way to reduce greenhouse gases and how it is the magic solution. It might be the easy solution. The government is pocketing more money while seeking to reduce greenhouse gas emissions. They are trying to pull the wool over the eyes of Canadian taxpayers because there have been no results.
Unfortunately, in eight years, there has been no reduction in greenhouse gas emissions. However, there is more revenue flowing into government coffers. In this economic context, I believe it is reasonable to give Canadians a little bit of assistance.
I would like to set the record straight on something. This morning, I listened as members of different parties described the Conservatives as climate change deniers. I want to make it clear that our leader recognizes climate change, but he is not in the habit of taking shortcuts and waving a magic wand. The past eight years have shown us what happens when one waves a magic wand.
I have a document here. It is part of my notes, so I can show it to members. It is a chart from the Conference of the Parties, or COP, on the environment. There are 63 countries on it. At the top of the chart are Denmark, Sweden, Chile and Portugal. Then, in the next section, we see Egypt, Greece and Indonesia. Even further down the list, in the orange section, we see Thailand, Belarus and Turkey. Incidentally, I want to say that my thoughts are with the people of Turkey. I can only offer them supportive thoughts because, unfortunately, I am not there, but I think that the international community needs to take action to help the people of Turkey who are dealing with this disaster.
I will keep going with the list. The United States is ranked 52nd, and Canada is ranked 58th. Ouch. Nevertheless, the government is determined to increase the carbon tax. That does not make any sense.
As I was saying, the Conservative Party cares about the issue of climate change, and we have solutions. We are being accused of criticizing the carbon tax without offering solutions. As our leader mentioned this morning, we need to provide help to the clean technology sector.
Canada is unique in that it is the second-largest country in the world behind Russia. The carbon tax may not be effective here. We should not be using the same model as a European country whose population is very concentrated when our country is very different. Let us do the smart thing and develop clean technology. Yes, it can be an economic lever. Money is the main thing, but that money needs to be raised honestly, by creating prosperity, not by taking it out of taxpayers' pockets through a carbon tax.
Why not invest in clean technology? Why not develop it here? Canada has talent and know-how. We could then export that clean technology and make Canada a leader on the environment and on clean technology. Why not?
According to an article on the Radio-Canada website this morning, the is focusing on Quebec's caribou population. He should instead be working on reducing greenhouse gases by identifying methods other than the carbon tax. He should let the provinces take action and look after their own territory. Quebec has a better record than Canada on the reduction of greenhouse gas emissions. In their eight years in power, the Liberals have never managed to reduce greenhouse gas emissions.
In closing, I would like to quote a passage from the Radio-Canada article. In response to the , Quebec's minister, Benoit Charette, said that he had the impression that the agreement reached in August with Ottawa would preclude federal intervention. He stated, “The federal government's approach in this matter is hard to follow”.
It is hard to follow on many files. We need only think of the official languages file, Bill and McKinsey. I do not know if anyone is at the controls in this government.
It is unacceptable that we are being criticized. We, the Conservatives, are working on behalf of Canadian taxpayers, and we will continue that work.
:
Mr. Speaker, it is great to be back in the chamber. I hope you had a great holiday. This marks the first time I have had the opportunity to be back in debate. I always love the opposition day motion. I will start by recognizing that I will be splitting my time with my hon. colleague from , who is no stranger to getting up and making sure he is able to share his wisdom with colleagues here in the House.
Of course, I do welcome the opportunity, and this is the seventh time I have had the opportunity to speak to carbon pricing as it relates to Conservative opposition day motions. It seems as though that is all that party wants to talk about, and I look forward to engaging today on the topic.
I have heard conversations about affordability and about climate change. What this comes down to is how we incentivize the technological and innovative solutions we need to reduce emissions. That is the key element here. Yes, there are other considerations, including affordability and how we actually tackle the existential threat before us, but it comes down how we drive that innovation to get to that solution. That is what I look forward to talking about today.
However, I will start with why we have a carbon price in the first place. The science is clear that we have a major challenge in climate change, and the predominant concern is greenhouse gas emissions. As I am one of the younger members of Parliament in the House, my wife and I think about our future and having a family. At 32 years old, I want to make sure that, when we do hopefully have that opportunity to raise children in this world, there is a good future for my kids. Indeed, I think many Canadians, as well as everyone around the world, are thinking about how we make sure we preserve a planet and preserve a society that we have been able to benefit from. Notwithstanding all of the challenges, we are extremely privileged to call Canada and our world home.
The enemy is emissions, not a particular industry. That is a point I want to raise as part of this debate, because sometimes I hear in the House that certain industries are bad, that with certain industries there are challenges and that we cannot be supporting certain industries anymore. I think the does a very good job of saying we have to be laser-focused on emissions reduction and asking how we go about accomplishing that.
My colleagues will know I am actually a pretty strong supporter of the Canadian energy sector. I remark on the technology and innovation that drove oil sands in Alberta. Is there environmental impact? Yes, there undoubtedly is. They have also been an extremely important economic driver for the country. They continue to be so. We are the fourth-largest oil producing country in the world, and I had an exchange with one of my Bloc colleagues earlier today. What I think we sometimes fail to remember is that, because of the revenues that are generated in this country and are then available through taxation purposes and shared through equalization, that industry has helped contribute to the social welfare of this country from Vancouver Island to Newfoundland and Labrador and every place in between.
While I talk about the importance of the Canadian oil and gas sector, and the energy sector in particular, I talk about it through a lens of saying it actually has to innovate as well, because this is about reducing emissions associated with that sector. I do not villainize the Canadian oil and gas sector, but I also stand here and recognize that, if we do not drive innovation in that sector, it will not be around by 2050.
How do we focus on the technology and solutions to make sure Canada can continue to be competitive in the global marketplace, while also tackling the existential threat around climate change and reducing emissions, that being the enemy? I do not see those things as mutually exclusive. Some members in the House would say I am trying to have it both ways, but is that not the Liberal approach? We are pragmatic individuals who try to find solutions to be able to get to shared mutual outcomes.
At its core, the carbon price is a market mechanism. It is about actually trying to create incentivized change by putting it as a market price, and I sometimes chastise my Conservative colleagues, because at its core, it is small-c conservative. Many of my Conservative colleagues talk about the importance of the market economy and the importance of the private sector, yet when it comes to actual solutions to tackling the challenges around reducing emissions, they seem to want big, bossy government programs or they actually do not provide any solutions whatsoever. We know from the OECD and from the International Monetary Fund that a carbon price is actually signalled as the most efficient way to reduce emissions.
There of a couple of things I want to mention. First of all, the Parliamentary Budget Officer, contrary to what is said in the motion, explicitly makes clear that eight out of 10 households are going to receive, and do receive, more money back than they pay in on a federal backstop carbon price. The PBO report also mentions that that number is not as high when broader economic costs are recognized.
However, the idea that we can tackle climate change with no cost at all is simply a fallacy. Maybe my Conservative colleagues will not believe me, but hopefully they will believe Stephen Harper. In 2007, he recognized that the government at that time was looking at an emissions-trading type of scheme to incentivize the change I am talking about now. He said, “We happen to believe we've set it up so that those costs are manageable, so that we provide incentives for firms and sectors to exploit the technology opportunities that this regime requires. But the fact of the matter is it will cost.” Mr. Harper was right. There is a cost to transition, but there are also opportunities.
The government has constructed its policy around carbon pricing to seek to drive innovation and technology where it is available, but also seeking to manage the costs associated with that transition to protect households. That goes back to the way this policy was constructed where eight out of 10 households come forward.
That brings me to this question. If not this program, what then? My candid advice to the loyal opposition across the way is that I really believe that our politics and democracy in this country would be better served if the Conservative Party would say that, while it does not believe in what the government is doing on its carbon price system, here is our solution to drive that innovation and that technology. What a better place it would be.
Furthermore, what if, while they do not necessarily agree with what the carbon price policy looks like from the government, they offered some suggested amendments that they think would better reflect them, to be able to get to that goal. That is not what we hear. Although, of course, I want it for Canadian democracy and the betterment of this country, politically I encourage them to continue to do what they are doing, because it is going to allow the parties that are actually focused on that to continue to govern and have electoral success. Canadians expect the ability to walk that nuanced line, and the Conservatives are not doing it at this point.
There are areas where I think the carbon price system could be looked at and adjusted. Mr. Speaker, you and I are both rural members of Parliament from Nova Scotia. This is a harder sell in rural than in urban Canada. There is a 10% top-up. That is really important.
I think that there is an opportunity to look at whether 10% is an adequate enough amount to make up for the difference between some of the lived realities of rural constituents and urban. That does not mean I am against carbon pricing. That means I would like to see if we could look at amendments. We never hear about any opportunity to amend and work within the system on the federal side.
I also worry about the definition of “rural”. My understanding is that the way it is calculated right now is on a census metropolitan area. The Halifax Regional Municipality, or HRM, for example, would be considered an urban municipality, but not all areas within HRM could certainly meet the definition of an urban community. Those are little areas I think we could look at and that I think can make sure this policy reflects, attracts and benefits as many people as possible.
The other element is small and medium-sized enterprises. As we move toward 2030, I think there has to be some thought given to their propensity to contribute and how we can incentivize a corporate return such that they are not disadvantaged over the long term. Again, there is a balance between industrial carbon pricing and the household level and how we tackle that as it relates to affordability.
The last thing I would like to say is that sometimes the narrative from the opposition benches is that one cannot both put in place policies to try to fight climate change, to reduce emissions, and also support affordability. I would argue that those two things are not mutually exclusive. Look at programs this government has put in place around the greening homes initiative that allow homeowners to be able to invest in their homes to increase the equity that they have in those, but also to reduce their energy bills at the same time.
In our region of Atlantic Canada, $120 million was announced by the in October. Additional funding was announced by the that is specific to individuals who are on home heating oil, so they can make that transition to bring down the cost of their energy bills, put more money back in their pockets and also be able to help reduce associated emissions. Those are examples of policies where we can have the opportunity.
The last thing I will say is that there are also really good ones on agriculture. I hope one of my colleagues will have the opportunity to ask me that question so that I can finish those remarks.
:
Mr. Speaker, over the last number of years, we have seen a government that has brought forward legislative and budgetary measures to ensure that we have a healthier middle class, that we continue to create jobs and that we have an economy that works for all of us, no matter what region of the country we are talking about.
When it comes to issues, I go to the residents of Winnipeg North and listen to what they have to say. We hear a lot about inflation, so I am glad the motion before us deals, at least in part, with inflation. We also hear a lot of concern with regard to the environment and, once again, the second part of this motion deals with the environment.
I would like to spend the next nine or 10 minutes talking about both of those issues. I would like to demonstrate the contrast between the Conservative Party of Canada and what the Government of Canada has been doing.
On the issue of inflation, we have to take into account what is happening around the world. Canada's inflation rate, compared to that of other countries, whether it is the United States, Germany, all European countries or the United Kingdom, is lower. However, we understand that we cannot just sit back and look at what is happening around the world and say that we do not need to do anything because our inflation rate is lower. Rather, we have come up with a number of programs and thoughts to help Canadians through inflation as much as possible.
I will give a few examples that are very tangible. We eliminated the interest on student loans. We doubled the goods and services tax credit for the short term, for six months. We put forward the dental program, which would help children under the age of 12. We brought in rental support and the Canada workers benefit. These are the types of programs that we are bringing in to support Canadians on inflation.
How does that contrast with the leadership of the Conservative Party of Canada? I have now heard the second real, tangible idea that the Conservatives are talking about. They want to get rid of the price on pollution. They have made that very clear. That is the second idea.
What was the first idea? It should come as no surprise that it was the cryptocurrency flash. We will remember that the leader of the Conservative Party, not that long ago, said the way to fight inflation is to invest in cryptocurrency. That was the message. That was one of the first policy stands with regard to fighting inflation. I have said before in the House that I cannot imagine those who would have followed that stupid idea. They would have lost life savings if they had invested their savings in it. That was the first economic inflation-fighting policy I heard from the Conservative Party.
We have heard the Conservatives talk about the “triple, triple, triple”. I think they should pay some sort of dividend to Tim Hortons for the double-double. At the end of the day, it is all about misinformation. Their second policy on fighting inflation is to spread false information. In fact, the leader of the Conservative Party proclaimed it today, saying they are going to get rid of carbon pricing or the price on pollution or the carbon tax. It was not that long ago that 338 Conservative candidates, including the member who made the statement that he is going to get rid of it, campaigned at the doors and said in their policy platform that they believed in a price on pollution. How things have flipped-flopped once again.
The Conservative Party, with its spreading of misinformation, is actually going to pay for advertising, which I think kicked in today, coincidental with this particular motion. What Conservatives are telling Canadians is that they are going to save them money by cutting the tax, cutting the price on pollution.
Some hon. members: Oh, oh!
Mr. Kevin Lamoureux: Mr. Speaker, I heard one member say “woo-hoo” and another say “hear, hear”. Well, I can tell members that this is the misinformation that the Conservatives are spreading.
In Winnipeg North, as in most other constituencies, the PBO, the independent Parliamentary Budget Officer, made it very clear that eight out of 10 households are going to get a net benefit. In Manitoba, a household of four would get over $800 a year in quarterly payments. If we get rid of the price on pollution, that rebate is gone too, and for 80% of my constituents, that rebate is more than they are actually paying. However, the Conservatives are going to try to mislead not only the residents of Winnipeg North but all the provinces where the price on pollution is put in as a backstop to protect our environment. They are going to try to give the impression that cancelling the price on pollution is going to put more money in their pockets. That is balderdash. That is just not true, and they know it.
It is one thing to stand in the House and spread misinformation and even go into communities and possibly town halls that they are having, but now the Conservatives are going to be paying for advertising. They have actually bought advertising spots to spread false facts.
This will depress a lot of people. I think it is 150 days of the current leadership of the Conservative Party, and it took one of the former leaders, the current , over 400 days to come up with a plan on the environment. His plan incorporated a price on pollution, and now he is the House leader. The leader who followed him actually made the commitment, which every one of them campaigned on, that there would be a price on pollution.
How many more days is it going to take for the Conservative Party to be more transparent and honest with Canadians as to what their plan is with regard to the environment? Is their only line or bumper sticker going to be “We're going to cut and get rid of the price on pollution” as other jurisdictions around the world are incorporating what Canada has put into place? Eighty per cent of Canadians are actually benefiting from it, and we are dealing with the environment at the same time. There is a huge vacuum there that needs to be filled. We are waiting, and we will continue to wait, I suspect.
How long is it going to be before the Conservatives start telling the truth as to what they are going to be doing in terms of their environmental plan? All we know is that they misled Canadians in the last federal election, all 338 of them. We are going to be reminding Canadians that at one point the Conservative Party, under different leaderships, supported the price on pollution. At the end of the day, they have flipped-flopped, which is to the disadvantage of our environment, and it is going to hurt Canadians.
:
Mr. Speaker, the Liberals in the debate, all day long, keep saying that Canadians have never had it so good. They seem exacerbated as, again, we fight against their punishing carbon tax.
We are going to keep fighting against the carbon tax so that Canadians can keep their heat on, can drive to work and can afford nutritious food. We will never apologize for that.
We have heard today some version of what they call an environmental plan, but make no mistake. The Liberals gave us an environmental plan, or they gave us a tax plan that was disguised as an environmental plan, and it was directly cited for the higher prices. In fact, their tax is working so well that we have already seen it raised three times. We are still no closer to meeting any sort of environmental goal.
In fact, Canada is the only G7 country, if we want to play the facts game, that has raised fuel taxes during a period of record-high inflation. That should tell us everything we need to know about where we are in this.
We are in the depths of winter and home heating costs are, in some cases, up 100%. Heating one's home in Canada is not a luxury. I do not know why we have to say it, but it is a necessity in this country. All one has to do is go outside for 30 minutes.
There is no denying that the government and its NDP coalition partners who vote with it every single time, although they get up in the House and scream at the government that nothing is going right and then continue to support it, are making prices higher for families. They make this necessity more expensive with a plan to triple the tax, no matter what they say outside of this place. No matter what motion they bring forward, they are the ones who support the government in making things more expensive for every single Canadian.
It is a plan that disproportionately punishes people in rural areas who have no choice but to rely on heating oil or other heat sources made more expensive by the carbon tax. It is a plan that disproportionately punishes families, including parents who are struggling to feed their kids, who are struggling to get to work and who are struggling to drive their kids to activities and school.
I know they do not like to hear it, and they certainly do not want to talk about it. We would be here for an eternity if they had to admit it. However, for more Canadians, things have never been so bad, and a little humility and an admission of responsibility would go a long way for the people across the aisle.
The Liberals laugh, and they say that the stories that we tell in the House are not real. They must not speak to the same people we speak to. They must not listen to the same people we listen to. They must not go to the places we go. If they did, they would know that these stories are very real.
They are painfully real for millions of Canadians, and they are growing in number. The most out-of-touch thing that anybody can do, while serving others in this place, is to bury their heads in the sand and pretend that everything is fine, because it is not. It is far from it.
Here in Canada, the Liberals have given us the highest inflation in 40 years, some of the highest interest rates in the G7, the highest in a generation, and the highest home prices ever. Add a carbon tax on top of that. We will continue to speak against that tax in the House until we have the opportunity, as a government, to remove it.
If the government was in touch at all with the economic reality, it would know that one cannot tax one's way to prosperity. It does not work. It never has.
With respect to our farmers, the hon. member for speaks with farmers, and I will be splitting my time with him.
On everything that we eat, on everything that we buy and on everything that we use, the Liberals have imposed a tax. It started at $30 a tonne, then it went to $40 a tonne and now it is at $50 a tonne. They promised Canadians, before the last election, that it would never go up. Never is a really long time, but it did.
We should have known better. We should have known that $30 was going to be $40, then it was going to be $50 and now it is $170. That might not mean a lot in terms of tonnage, but it makes everything that we buy, that we eat, that we use and where we go more expensive. It has an effect throughout the economy.
They will tell us that Canadians get back more than they pay. The Parliamentary Budget Officer said the opposite. Tripling the price, without even making a dent in emissions, and presenting it as if they are returning that money to Canadians is the only misinformation that we have heard in the House today.
Why, after all of this evidence, are they still saying that over and over again? All they have to do is open the report from the Parliamentary Budget Officer that the Liberals appointed. There are 20% of Canadians skipping meals just to make ends meet, because the cost of groceries has gone up 11%. They have not gone up because I have said they have gone up, but they have actually gone up. People are not angry because I said that they are angry. They are angry because they are hungry and the price of groceries has gone up 11%.
It is a direct result of the carbon tax, because it costs more to grow, more to harvest, more to transport and more to buy. The Liberals blame someone else, something else or somewhere else for that failure, but it is their fault. It is squarely their fault and they could show some humility in this House and take responsibility for it. It would go a long way.
We have the lowest projected GDP per capita growth of any advanced economy. This is not just in the G7, but of any advanced economy. The time to add taxes to the mix is not right now. It is actually never, when it comes to this tax that does not work.
Two years ago, the , when he sat here as the member for , warned that if a government had unchecked and unrestrained out-of-control spending, it would lead to higher inflation and higher interest rates. The cost of government would drive up the cost of living, and that is exactly what we have seen happen.
The Liberals told us the only way to save ourselves on the environmental front is a carbon tax, but, again, that does not match reality. It turns out, once again, that our trust was misplaced in a Liberal government that said it would not raise the carbon tax. It has now raised the carbon tax, and it is about to triple it.
All one needs to do to verify the claim is just look around. Do we not have the highest inflation in 40 years? Do we not have the highest interest rates in a generation? Is home ownership not out of reach for Canadians? Are people not paying more for the cost of energy to heat their homes, to drive their cars and to buy their food? We know the answer, and it seems the Liberals know it too.
We bring this up every single day in the House. We quote testimony from experts and testimony from the Parliamentary Budget Officer, whom the Liberals appointed. We bring stories of the people who are hurting in this country, and the Liberals laugh it off or call it fake.
The response from the government is another program, another inflationary spending measure, a plan to triple the carbon tax, more platitudes and empty words and a few Instagram posts. Then they pat themselves on the back and clap for each other.
The Liberals can talk about the billions of dollars they have spent, and they can talk about it all they want, but that comes from the taxpayer. Never has so much money been spent to bring so few results to so few people in this country. That is a fact.
More of the same ideas that got us here in the first place are just not good enough. We have a different approach. Instead of giving more power to the government, instead of the central planning that we see from them, let us give more power to Canadians and let them spend more of their own money.
Let us put that money back into their pockets and help them live with dignity and help them survive. Let us help them pay to heat their homes, to drive their cars and to buy nutritious food for their families. Instead of raising taxes, leave workers with more money in their pockets, because they know how to spend their wages.
There is only one taxpayer in this country, and the Liberals ought to recognize that. The Liberals ought to show some humility, take some responsibility for the inflation crisis they have caused and not add yet another tax. Instead of throwing more money at the problem, let us invest in solutions that work. Let us reduce greenhouse gases. Let us get housing built. Let us build more transit.
In short, instead of telling Canadians that everything is fine and that they have never had it so good, let us have the government show some humility and take responsibility for the crisis that they have created.
:
Mr. Speaker, I am proud to rise to speak to our opposition motion today because the carbon tax is asking all Canadians to pay more. It is asking seniors to pay more, young people to pay more, small business owners to pay more and certainly farmers to pay more, and I can say that farmers have paid more.
In fact, according to Statistics Canada, the 2022 crop year was the most expensive in Canadian history. On-farm expenses were more than $11 billion, 12% higher than the previous year, which is the highest increase in history in Canadian farming. According to the Agricultural Producers Association of Saskatchewan, or APAS, many of its members saw their input costs go up seven times. Much of that can be attributed to the Liberal-NDP carbon tax coalition and their carbon tax.
Mary Robinson, the chair of the Canadian Federation of Agriculture, and a potato farmer from P.E.I., was at the agriculture committee yesterday and said that this year's crop year could be even more expensive than what we saw previously.
Farm families cannot afford this. This jeopardizes their ability to remain economically viable. Farmers cannot afford fertilizer, fuel or feed, and they cannot afford to put crops in the ground. As a result of that, we are seeing many of those on family farms throw up their hands and walk away. Farmers just simply cannot be sustainable when they are selling at a loss. We are no longer competitive on the global market.
These should be red flags and alarm bells for the current Liberal government, and they should be forcing it to change course. In fact, it is not changing course, but tripling down on its failed carbon tax policy. It is going to be tripling that carbon tax when Canadians cannot afford to put food on the table.
My colleague earlier said that the Liberals will argue that the carbon tax is an environmental plan to ensure that farmers are environmentally sustainable. Ironically, they have not hit a single emissions target they have set, proving that the carbon tax is a fallacy. More importantly, farmers cannot remain environmentally sustainable if they are not economically sustainable. They will simply cease to exist.
According to the records we have seen, farmers are having a difficult time remaining sustainable. Unlike most other industries in Canada, Canadian farmers in agriculture pay the carbon tax over and over again. They pay it when they buy fertilizer, buy feed, haul cattle or move grain. They pay the carbon tax from the rail companies, the trucking companies and the gas companies, over and over again.
What makes the carbon tax attack on Canadian farmers the most frustrating is that they are being punished instead of applauded for the work they do. Canadian agriculture has reduced its carbon footprint and emissions by 50% over the last two decades. At the same time, they have increased their yields by 60%. What other industry on Planet Earth can make such a claim? Farmers have done this while, at the same time, reducing their inputs, improving soil health, reducing water input use and becoming much more efficient.
Do members know why they have done this? They have not done it because they were punished with carbon taxes or because of government regulations and interference. They have done it because it is the right thing to do. They have done this on their own, by embracing technology and new innovation, and by embracing new practices such as 4R nutrient stewardship, zero till and precision agriculture. Again, they have done these things on their own because it is the right thing to do. It has improved their efficiency and production, but it was the right thing to do to protect the water, their soil and their animals.
Instead of being applauded for that, the Liberal government is punishing them. It is taxing them to produce food in the most sustainable way anywhere in the world. Not only is this punishing Canadian farmers, it is also punishing every single Canadian, because the carbon tax trickles through the supply chain.
We are seeing it from the farm gate to grocery store shelves, where tens of thousands of Canadians are struggling to be able to put food on the table, and the impact is very real. We see the cost of fruit and vegetables is up 13%. Bread and potatoes are up 15%, and pasta is up 30%. These are the essentials that Canadian families rely on every single day, but they are unable to afford those fundamental parts of their grocery bills because of a Liberal carbon tax that is only going to go higher and higher.
Again, the Liberals will argue that there is nothing to worry about here and that most Canadian families get more back than what they paid into the carbon tax. We need to end this revenue-neutral carbon tax myth right here, because we know, from the Parliamentary Budget Officer, that it is factually not true. In fact, we had the Grain Farmers of Ontario appear at the agriculture committee and say they are getting about 13% to 15% back of what they spend on the carbon tax. That is a long way from revenue-neutral. I fact, the CFIB just ratified those numbers by saying that the average farmer, right now, is spending about $14,000 a year on the carbon tax. When it is increased on April 1, they will be paying $45,000 a year on the carbon tax.
Interestingly, when the Grain Farmers of Ontario and the CFIB came out with these numbers, which show that the carbon tax is clearly punishing Canadian farmers and rural Canadians, no one in the Liberal government disputed those numbers. No one came out to say it was revenue-neutral and that this was not true. The reason they are not coming out to question those numbers is that they know they are true. The narrative the Liberals are putting out there is a fallacy. The carbon tax is not revenue-neutral.
In fact, I have the member for saying that is not the case. I asked Finance Canada, as a matter of fact, how much, on average, a Canadian farmer gets back on the carbon tax. Its answer was $800 a year, when they are paying $45,000. Math is not my strong suit, but I am pretty sure that is a pretty wide gap, comparing what farmers are paying to what they are getting back in the carbon tax. Every single Canadian is paying for that in their grocery bills, and Canadian farmers are certainly bearing the brunt of that.
In fact, there is a farmer from the Winnipeg area, the member may be interested to know, and his name was Jochum. He was at the agriculture committee, and he said that the carbon tax is currently costing him about $40,000 a year, and when the Liberal-NDP carbon tax coalition triples that carbon tax, he will be paying $136,000 a year. A recent report came out and said that after the carbon tax is tripled, an average 5,000-acre farm will be paying $150,000 a year in carbon taxes alone. Anybody in the House can come and tell me, especially if they have a rural riding, about any of their farmers who can absorb that kind of cost. There is not one.
This is putting the economic sustainability of Canadian agriculture at risk and our food security at risk. Taxing farmers who are trying to produce food, when there is no other alternative to the fuels they use on-farm, is nonsensical. It makes no sense, especially when the Parliamentary Budget Officer has certified the numbers we are talking about here. It is by no means revenue-neutral, and our agriculture is complicit on this. She is saddling Canadian farmers with the crippling carbon tax. She voted against our bill, Bill , which would have exempted the carbon tax from on-farm fuels, such as natural gas and propane.
However, as Conservatives, we have not given up the fight. We have brought back a private member's bill, Bill , which would again exempt the carbon tax from on-farm fuels, such as propane and natural gas. That would help farmers trying to heat and cool their barns and dry their grain. These are essential for Canadian farmers to remain competitive and viable.
It is time to end the attacks on Canadian agriculture. It is time to stop the Liberals from looking at Canadian farmers as part of the problem, because indeed and in fact, Canadian farmers are part of the solution, and the carbon tax has got to go.
:
Mr. Speaker, I will be splitting my time with the member for .
It is a privilege today for me to stand to address this motion considering carbon pollution pricing. As hon. members in the House know, climate change is already having unprecedented effects on Canadians. We have seen the evidence all around us: in Quebec, extreme heat; in the west, floods and wildfires; in Atlantic Canada, extreme weather events such as hurricane Fiona. In fact, around the world, we would be hard pressed to find a time when extreme weather was not making devastating news in some part of the world.
The impacts from climate change are wide-ranging. They affect our homes, our cost of living, our health and our safety. It also impacts infrastructure and economic activity in communities across Canada. We know that the problem is carbon pollution.
The latest science warns that to avoid severe impacts of climate change, greenhouse gas emissions must be reduced significantly and urgently to limit the global average temperature increase to 1.5°C.
When we talk about taking action on climate change, the issue is not about choosing between our economy and climate change. It is well understood that the two really do go hand in hand and that the long-term health of our people, our planet and our economy depends on us taking ambitious climate action. The cost of inaction is enormous.
As emphasized in a recent report from the Intergovernmental Panel on Climate Change, the cost includes more severe floods, forest fires, heat waves and droughts that cause environmental and economic damage. Weather-related disasters are costing Canadians more each year. It is rising from tens of millions of dollars to billions of dollar annually in Canada alone.
There are the benefits of action. I encourage members to look at the exponential market growth for clean technology all around the world. In fact, last year, global clean technology activity was anticipated to exceed $2.5 trillion.
It is no secret that we have had an extremely challenging couple of years. First, we had COVID-19, then a geopolitical and humanitarian crisis and now economies are struggling to adjust to the postpandemic world. It is not an easy time, yet climate change is the crisis that will persist if we continue to not take action.
I would like to emphasize that carbon pricing has proven to be the most significant and effective tool to combat climate change.
In April 2021, the Government of Canada responded to the latest science by submitting a strengthened national emissions target of 40% to 45% below 2005 levels by 2030, in addition to its goal of achieving net-zero emissions by 2050.
In March 2022, we released the 2030 emissions reduction plan, outlining how Canada will meeting our 2030 targets. The plan builds on a strong foundation, starting with Canada's first-ever national climate change plan in 2016 and then our strengthened plan released in 2020. The plan shows that we can build a cleaner economy, while making people's daily lives better.
Carbon pricing is central to all these plans. Why? Because it is widely recognized as the most efficient means to reduce carbon emissions and drive innovation and energy efficiency. It creates demand for low-carbon technology, goods and services. As the cost of polluting activities increases, individuals and businesses seek out cleaner alternatives.
We have heard from stakeholders across the country. They have told us that consistency and predictability are key to unlocking investments in the low-carbon economy.
We have heard from businesses and industries. They have shown us they are developing innovative technologies and approaches to reduce emissions. They have asked for clear incentives and supports to put those technologies into practice, including runway time for capital investments to show returns.
Carbon pricing creates those incentives without dictating any particular approach. It lets businesses decide how to best cut their emissions.
At the same time, we know Canadians, especially the most vulnerable, are facing an affordability challenge.
When it comes to the federal approach to carbon pricing, we have not only designed it to maintain the consistency demanded by industry and investors, we have also prioritized affordability for Canadians. The bottom line is that it is not enough to create a cleaner economy. We need to ensure Canadians can afford it.
It is true that pricing carbon pollution modestly increases fuel costs, but carbon pricing has never been about raising revenues. In fact, under our plan, most households do in fact end up with more money in their pockets than what they paid. Whenever the federal fuel charge proceeds are returned directly to households, eight out of 10 families get more back through climate action incentive payments than they pay in direct carbon costs, meaning this system is helping with the cost of living for a majority of Canadian families by offsetting their costs.
It is lower-income households that will benefit the most. High-income households tend to spend a lot more on fuel and energy, so they will face a net cost. However, the lowest-income Canadians come out the most ahead. These estimates take into account direct costs, like paying for more fuel, and also indirect costs, like paying a bit more for goods and services.
Families in rural and small communities are eligible to in fact receive 10% more than families in urban centres.
Households can use these funds however they want. They can use them to absorb the extra two cents per litre on gasoline if they choose. Any households can take action to reduce their energy use to come out even further ahead by going to something like zero-emission vehicles to reduce fuel consumption or federal purchase incentives that help to reduce the cost of heating.
The federal government is also supporting home energy retrofits in Canada, through the greener homes grant, to reduce energy used at home. They save money and cut pollution at the same time.
The Government of Canada has also committed to return the proceeds collected from federal output-based pricing system, or OBPS, to the jurisdictions of origin. Provinces and territories that have voluntarily adopted the OBPS can opt for a direct transfer of proceeds collected. The proceeds that are collected in other backstop jurisdictions will be returned through the OBPS proceeds fund aimed at supporting clean industrial technology and clean electricity proceeds.
Climate change is a serious challenge, and it does not go away with the decisions we make in the chamber. However, we can mitigate the impacts of climate change and we can reduce climate change in the future.
Analysis by the Global Commission on the Economy and Climate estimates that transitioning to a low-carbon economy will deliver a direct economic gain of $26 trillion and generate 65 million new jobs.
Just as we are putting a price on pollution, we are also making historic investments in clean technology. We are investing in green infrastructure. We are driving growth, creating jobs and including $9.1 billion in new investments to cut pollution and grow the economy as part of the 2030 emissions reduction plan.
Canadians have been clear about what they want: clean air and good jobs, a healthy environment and a strong economy. Our approach assures that Canadians are well placed to benefit from the opportunities created by the global transition that is under way. I am happy to say that our climate plan is working.
Evidence confirms that putting a price on carbon pollution works. It spurs clean growth, supports jobs and cuts pollution causing climate change. Pricing carbon pollution and returning the proceeds to Canadian families and businesses is an effective and affordable way to combat climate change, while supporting the sustainability of Canadian communities.
Canada has established itself as a champion of carbon pricing and now has international recognition as a leader and an innovator on carbon pricing. Significantly driving the force behind our success is that the Government of Canada cares about the well-being of our economy, our environment and all Canadians today and for many tomorrows. We will continue to put them first.
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Mr. Speaker, the Conservatives all ran on pricing pollution. Then they got elected to the opposition once again, immediately did a 180° and have brought in seven motions within the last year about pricing pollution. They are now clapping at their own flip-flop. I cannot make this stuff up. They are flip-flopping on their position. Maybe one of them can just get up and explain to this House why they ran on it and have now changed their minds. There could be a very legitimate reason for that. Maybe there is a legitimate reason for changing their minds, but they should enlighten the rest of the country by letting us know why they decided to flip-flop in such a way.
As a matter of fact, when they introduced this in the last election, the member for said this about the price on pollution in their platform: “I think it's an evolution for parts of our party”. He admitted that the Conservative Party was finally evolving into hopefully accepting climate change as real, but also thinking that it was a good thing. That was the member for Calgary Centre, who will vote in favour of this motion and against pricing pollution, which is a complete flip-flop from what he first said.
The member for , their leader at the time, said, “We recognize that the most efficient way to reduce our emissions is to use pricing mechanisms.” Time after time, the Conservatives are coming forward in the House and completely confusing Canadians with their positions on this, given what they said during the election versus where they are now.
A lot has been said about the PBO and its recent report. I found it interesting that the member for , while asking a question of one of my colleagues, noted a follow-up report. He should know from the follow-up report, assuming he read it, that the PBO admitted that in the original report, there was no consideration of what the effects would be, economically and socially, in the event we did nothing to address climate change. The PBO therefore acknowledges that this was not a consideration in the initial report.
The member talked about cherry-picking information and using information in a certain way, but he is not even completely representing the report he is trying to use against the member who was speaking just before me. That is the irony of all this. The report the member referenced also mentioned that the PBO followed up and said that eight out of 10 Canadians would be better off under a pricing mechanism that includes a rebate. Of course, the Conservatives never want to tell Canadians about that. They never want to bother telling Canadians that they will get the money back.
When we say eight out of 10 Canadians are going to get more money back than what they put in, I am sure I do not have to explain that they will certainly be those who need it the most. It is not extremely wealthy people who will be getting more back than they put in. Again, the Conservatives want to gloss over that fact because they do not see representing the truth on that point as easy to talk about and as palatable. If they want to talk about the parliamentary budget office report, they need to start talking about it in its entirety. They need to start realizing and accepting that the Parliamentary Budget Officer said eight out of 10 Canadians will get more back than what they put in.
I am left with a conclusion, which I have said many times in this House: How is this possible from the Conservatives? The Conservative Party touts itself as the steward of the economy, of good fiscal responsibility and of understanding how an economy works. How is it possible that a party like that cannot understand the basic, fundamental principle that if we put a price on something, it will change people's decisions and will change market behaviour? That is exactly what just about every economist in the world has said will be the result of pricing pollution. This is about making sure we are encouraging people to make the right decisions.
We do not even have to look that far to see the success. I have talked in the House many times before about how Quebec and Ontario were part of the cap-and-trade deal with California that was established around 2006. Quebec, Ontario and California got together and set up a cap-and-trade model. By the way, had Doug Ford not ripped it up when he got into the government, we would still have it in place and there would not be a price on pollution in Ontario.
What actually happened? When Doug Ford ripped that up and got out of the deal, he started removing electric vehicle chargers from GO stations. What has happened between then and now with the provinces of Ontario and Quebec? Quebec is light years ahead in terms of where they are in preparing for the future of electric vehicles and the future of increasing and building their electrical grid.
Unfortunately, because of Doug Ford's choices to completely move away from very important pieces of legislation like the one on cap and trade, we have ended up in a situation where Ontario is lagging behind. We were neck and neck with Quebec when that began and years into it. Unfortunately, we can already see the devastating effects of the decisions made by Doug Ford and his government once he was elected in Ontario.
I find it unfortunate that this is like Groundhog Day. Once again, here we are with the Conservatives and the exact same motion. We are all saying the exact same thing. We all know exactly how everybody is going to vote. This is going to end up just as it did the other six times. Hopefully, at some point, the message will get through to the Conservatives that this is a piece of policy the majority of Canadians are in favour of and that we will continue to use it.