Carlos Leitão

“Mr. Speaker, I rise today to speak to Bill C-38, the Canadian fuel affordability act. I will be supporting this bill because whenever there is an opportunity to make life more affordable for Canadians, especially for the people of Sudbury East—Manitoulin—Nickel Belt, I will support it. However, let me be clear: While the bill is a step in the right direction, it would not go far enough to address the affordability challenges facing northern Ontarians. Before I had the privilege of serving my constituents in Parliament, I owned and operated a small wholesale petroleum business. For more than 25 years, we supplied petroleum products to retail, commercial, industrial and residential customers throughout northern Ontario. Fuel costs were a significant expense, representing more than 30% of operating costs. Any increase in fuel pricing had an immediate impact. What affected my business then affects families and businesses across northern Ontario even more today. People in my region drive because they have to. They drive to work. They drive to school. They drive to medical appointments. They drive drive in order to buy groceries and to visit family. Unlike residents of major urban centres such as Toronto or Ottawa, northern Ontarians do not have the option of taking public transit to get around. That is why any measure that lowers the cost of fuel is something I support. However, make no mistake: This bill is before us today because Conservatives forced the government’s hand. For years, Conservatives have argued that taxes on fuel and energy are too high. We warned that rising fuel costs were driving up the price of groceries, increasing home heating costs, raising transportation expenses and making life less affordable for working Canadians. We brought forward motions. We raised these concerns in the House. We stood up for Canadians struggling with the cost of living. Eventually the government was forced to respond, but it did so only with temporary measures. First, the government suspended the excise tax on fuel. Then, after continued pressure from Conservatives, it extended that suspension until January 31, 2027, reduced the tax rate by half for February and March and scheduled the full tax to return on April 1, 2027. While this relief is welcome, it remains just that: temporary. For people in northern Ontario filling a typical 50-litre tank, the full suspension would save more than five dollars per fill-up. That is a start. Every dollar matters when families are stretching their budget. The problem is that this relief would come with an expiry date. Come April 1, 2027, the full tax would return. Canadians will not suddenly become more affluent on February 1, 2027. Northern Ontarians will still need to get to work. Students will still need to get to school. Families will still need to attend medical appointments. Truckers will still need to move goods across the country. The government’s plan would not solve the problem. It would simply postpone it. The federal excise tax currently adds 10¢ per litre to gasoline and four cents per litre to diesel. Conservatives have consistently said this is too much. The government likes to point to temporary fuel tax relief as proof that it is helping Canadians at the pumps. Any relief is welcome, and I support measures that help families keep more of their hard-earned money, but there is a reality that the government rarely talks about. It is that when fuel prices go up, governments collect more HST because that tax is charged as a percentage of the price at the pump. In Ontario, drivers pay HST not only for the fuel itself, but also on the federal and provincial fuel taxes already built into the price. In other words, Canadians are paying tax on top of taxes. The higher fuel prices climb, the more tax revenue governments collect, so while motorists may receive a few cents per litre in temporary relief, governments can be bringing in even more through increased HST revenues. For people across northern Ontario, that matters. Driving is not a luxury. It is how people get to work and keep their businesses running. Northerners do not have the option of simply driving less. That is why affordability cannot be based on temporary measures and short-term announcements. Northern Ontarians need lasting relief that recognizes a simple reality, which is that in our part of the country, transportation is not optional and every extra cent at the pump comes out of a family budget or small business trying to make ends meet. The Conservative position is straightforward. It is to remove federal taxes on gasoline and diesel until at least Canada Day 2027 and permanently eliminate the clean fuel regulations and the industrial carbon tax. Together, those measures could reduce fuel costs by approximately 25¢ per litre. That is meaningful relief. We know what happens when fuel costs rise. Transportation costs rise, the cost of moving goods rises, the price of building materials goes up, small businesses face higher operating expenses and, ultimately, those costs are passed on to consumers. At every stage of the economy, higher fuel costs make life more expensive. Meanwhile, diesel prices in the United States remain significantly lower than they are in Canada, placing Canadian producers, businesses and supply chains at a competitive disadvantage. The government cannot control global energy markets or geopolitical events, but it can control the taxes and regulations imposed on Canadians here at home. Conservatives proposed a plan that would reduce federal taxes on fuel until Canada Day 2027, permanently eliminate the industrial carbon tax and repeal the clean fuel regulations affecting diesel production. We have also called for increased domestic refining capacity and expanded fuel storage reserves so that Canada is better prepared when global disruptions cause prices to hike. Bill C-38 is better than nothing. I have always said that Conservatives will support measures that put money back into the pockets of northern Ontarians, but temporary tax relief with a sunset clause is not a long-term affordability strategy. Affordable energy should be a permanent priority, not a temporary political adjustment. Northern Ontarians are not asking for more government programs. They are asking to keep more of their own money. They are asking for lower taxes and a government that understands the realities of life in rural and northern Canada. Conservatives will support Bill C-38 and the relief it provides, but we will also continue fighting for a broader solution: the permanent removal of the industrial carbon tax, the elimination of the clean fuel regulations and an energy policy that puts affordability first. I will continue fighting for lower taxes for the people of Sudbury East—Manitoulin—Nickel Belt and Conservatives will continue fighting for lower taxes for all Canadians.”