The Budget
Date: 2023_04_18
Chamber: HOUSE OF COMMONS
Mr. Doug Shipley: I am proud to rise in the House today and add the voices of the people of Barrie-Springwater-Oro-Medonte to today's debate. Residents in my riding, in places such as Midhurst, Elmvale, Minesing, Shanty Bay, and Moonstone, all beautiful little communities, know very well that Canadians are getting less and paying more. They are struggling to pay rent, feed their families and heat their homes. Before I discuss my concerns with the specifics of this budget and the concerns I am hearing from residents in my community, I want to take a moment to reflect on how we got into this cost of living crisis and how it is affecting Canadians today. During the pandemic, the Liberals used historically low interest rates to justify record spending and record deficits. The Prime Minister then stated he was not worried about the cost to service Canada's increasing debt, because rates were very low. The Governor of the Bank of Canada stated that borrowing rates "are very low and they're going to be there for a long time." He went on to assure Canadians, "If you've got a mortgage or if you're considering to make a major purchase, or you're a business and you're considering making an investment, you can be confident rates will be low for a long time." Thousands of Canadians locked in their mortgages at a variable rate, believing that when the government and the Bank of Canada said rates would be low for a long time, they meant it. Fast-forward to today, and we have seen the Bank of Canada raise its policy interest rate eight times to 4.5% in less than a year. Families that bought typical homes five years ago, with typical mortgages that are now up for renewal, will pay an additional $7,000 per year. This is thanks to the Liberal government's inflationary spending. How has this government responded to the crisis it has created? In this year's budget presentation, it responded by recklessly adding $4,300 in new spending and debt for every household in Canada. It is driving up inflation, raising taxes and harming Canadians. Last year, the finance minister stood up in the House and stated that the debt-to-GDP ratio was her government's "fiscal anchor". She promised that our debt-to-GDP ratio would decline and that our deficits would be reduced. We see plainly now that promise to Canadians has not been kept. In fact, our debt-to-GDP ratio will increase from 42.4% this fiscal year to 43.5% in 2023-24. Furthermore, the cost to service Canada's debt is up. This year, the government will spend almost $44 billion to service our debt, which is double the cost from the last fiscal year at $24.5 billion. The more this government spends to service our debt, the less money it can spend on programs that help Canadians. To put this number in perspective, the defence department's budget is currently $27 billion, and this year's budget includes just over $30 million of new defence spending over the next five years, at a time when our country is under pressure from our allies to increase spending. Leading up to the tabling of this year's budget, Conservatives had three clear demands in order to lend our support to the government's fiscal plan: lower taxes for workers, an end to the inflationary deficits that are driving up the cost of goods, and the removal of red tape that prevents homes from being built for Canadians. We were hopeful the government would listen to Canadians and move into an era of fiscal prudence. However, the Liberals have presented us with yet another irresponsible deficit and they plan to keep us there until at least 2028. The assertion from this government that it is showing any fiscal restraint is demonstrably false. I would like to take some time to point out what is missing from this document, namely that the budget fails to deliver any measures that would meaningfully address the rising costs of housing, groceries, and home heating. It fails Canadians who desperately need a break. First, one of the top concerns for residents in my community is housing affordability. Make no mistake; we are in a housing crisis. Since this government came into power, rents have skyrocketed. In 2015, the average rent for a one-bedroom apartment was $973 a month. As of last month, in my riding, a one-bedroom apartment costs almost $2,000 a month to rent, on average. Under this government, Canada has the fewest homes per capita in the G7. A recent report by RBC found that we need over 300,000 new rental units in the next three years to restore normal vacancy rates. Canadians need bold leadership in this sector. Amid sky-high housing prices and increased immigration numbers, we need to do everything we can to increase housing supply. Home ownership is completely out of reach for most Canadians. A recent survey found that nine out of 10 young Canadians who do not own a home think they never will. On average, those who do have a mortgage are spending 62% of their income on monthly payments on the average house. While the government's previously announced first home savings account offers Canadians the opportunity to save $40,000 for their first home, the Liberals have failed to acknowledge that most Canadians will be unable to put money into the account. Thanks to the government's inflationary spending and taxes, young and new Canadians are spending most of their hard-earned paycheques on rent and groceries, with nothing left over to save. The housing crisis is policy and leadership failure from the federal government. It has had eight years to address this issue. Unfortunately, this budget offers no new support for Canadians who feel that their dream of home ownership is farther and farther out of reach. I will go on to an issue that is directly affecting families in my community, which is the rising cost of groceries. The high cost of groceries is exacerbating food insecurity, and many Canadians are turning to food banks to make ends meet. It is heartbreaking to see how many families are using food banks in my riding and across Canada. In March 2022, there were nearly 1.5 million visits to food banks in Canada. That is a 35% increase from 2020 and a 15% increase from 2021. One-third of those food bank clients are children. Locally, the Barrie Food Bank is supporting close to 4,000 individuals every month, including 1,300 children. It has seen the number of families with children accessing the food bank rise by 56%. Sharon Palmer, the executive director of the Barrie Food Bank, which serves residents in my riding, told a local newspaper that she is seeing residents who have historically donated to the food bank now using it to feed their own families. Despite the government's inaction, Canadians are finding innovative ways to attempt to tackle this issue and help their neighbours who are struggling during this cost of living crisis. For example, Leah Dyck, a resident in my riding, launched a community initiative called Fresh Food Weekly to tackle rising food insecurity in our community. Fresh Food Weekly partners with local farmers and businesses to deliver fresh meal boxes to community members in need. Canadians simply cannot afford 10% yearly food inflation. To address this issue, the government has touted an increased GST credit as a grocery rebate. The grocery rebate will give a one-time $467 payment to a family of four. To put that number in perspective, it amounts to roughly $39 a month. Canada's Food Price Report 2023 predicts a family of four will spend up to $16,000 on food this year, or over $1,300 a month, which is $1,261 more than the rebate they will receive. We know that this top-up does not actually address the food insecurity Canadians are facing. The fact that this year's budget has no financial commitments to food security initiatives is unacceptable at a time when six million Canadians, including 1.4 million children, are food-insecure. I urge the government to act swiftly to address this issue. Finally, I have received countless calls, emails and letters from residents in my riding who are concerned about the inflationary pressures they are facing. One area in which families and businesses are feeling the pinch the most is the government's costly carbon tax. On April 1, the Liberal carbon tax increased to $65 a tonne, increasing the price of gasoline, home heating and other fuels. This tax disproportionately affects our agricultural sector. Canada's Food Price Report 2023 found that, by 2030, a typical 5,000-acre farm could see taxes of over $150,000 a year, which will definitely hinder an owner's ability to make a profit. The report also notes that these added costs will trickle all the way down the supply chain to consumers as producers struggle to make a profit. I am proud to represent a riding that includes a strong and vibrant agricultural sector. This year's increase and the government's plan to eventually triple the carbon tax by 2030 are simply too high a price for farmers in my riding and across Canada to pay. Conservatives have proposed a real plan to remove the carbon tax from natural gas and propane used on farms, through Bill C-234 . This legislation would save farmers tens of millions of dollars on upfront costs when it comes to the use of natural gas and propane for necessary practices. Unfortunately, when presented with a proposal to make life more affordable for our hard-working Canadian farmers, the Liberal caucus voted against it. Despite the Liberal government's claims that Canadians will be better off with a carbon tax, the Parliamentary Budget Officer has found that most households will see a net loss when the broader economic impacts of the carbon tax are considered. The Parliamentary Budget Officer found that the carbon tax will cost the average family between $402 and $847 in 2023, even after rebates. Let me be very clear: The carbon tax is not a climate plan. It is a tax plan that places an undue burden on families, small businesses and farmers. Meanwhile, the Liberal government has failed to meet a single, solitary emissions target after eight years in power. Canadians deserve better. They deserve a government that can bring home powerful paycheques, lower their taxes, and build more homes. Only a Conservative government can provide the relief that Canadians so desperately need.