Ted Falk

“Mr. Speaker, it is always an honour and a pleasure to rise on behalf of the wonderful people of Long Range Mountains. I rise today to speak today to Bill C-38. Conservatives will always support measures that leave more money in the pockets of Canadians, but we should also be clear about how we got here. In April Conservatives brought forward a motion calling for federal taxes on gas and diesel to be removed to provide immediate relief to Canadians, but the Liberals voted against it. In May we came back to the House again and called for all federal taxes on gas and diesel to be removed for the remainder of the year, including the GST, and for the clean fuel standard to be permanently removed. That motion was also defeated by the Liberals. After months of Conservative pressure, the government has backed away from ending the excise tax suspension as originally planned, but it is important to note that this would still be only temporary. The tax is scheduled to start coming back early next year. Canadians need lasting relief from fuel costs, and the government’s own announcement on Bill C-38 acknowledges that lower fuel taxes benefit truckers and businesses involved in food, agriculture, housing, construction and delivery, because fuel costs do not stop at the pump. Statistics Canada reported just yesterday that gas prices are up 27.8% compared with a year ago, and increasing transportation costs are up 8.4%. For families who rely on their vehicles and for businesses that depend on fuel every day, those increases had immediate impacts. In September, inflation in Newfoundland and Labrador reached 4.7%, well above the national rate of 3.1%, and higher gas prices contributed to that increase in inflation. I want to talk about the real-life impacts of these extra costs. While in my riding, I spoke with Dwight. Dwight is a small business owner from Deer Lake. His operation employs 30 people. He runs his own company that provides waste management, construction, snow removal and trucking services. His entire operation relies on diesel. I spoke with him about the impacts of rising fuel costs on his business. In 2024, Dwight’s average diesel price was $1.81 a litre. In August 2026, the price was $2.41 a litre. Dwight outlined that the contracts he receives are five to seven years long, and the increase in fuel costs cannot be sustained in those conditions, as his input costs dramatically increase with no ability to recover those costs. In that type of business, with long-term contracts, he has to mitigate those extra costs. As a result, he delays purchases and postpones investments. He runs short-staffed as he tries to absorb these increased costs, which means fewer opportunities for growth and employment in our community. It is also important to understand that our small and medium-sized businesses keep our community initiatives and charitable organizations running. They are the heartbeat of our small communities, and when they are squeezed with rising costs, it ultimately impacts the entire community. More broadly, when it costs more to operate the fishing boat that brings in the catch, more to move groceries to the store, more to run construction equipment and more to deliver goods to communities across this vast country, those costs do not disappear. They make their way all the way through the supply chain, and eventually they show up in the prices families pay. In Newfoundland and Labrador, we understand this better than most, because we are a province of rural, remote and coastal communities. Goods have to travel long distances to reach us, and many people also travel significant distances for work, groceries, medical appointments and everyday necessities. For someone living on the Great Northern Peninsula or in another rural part of my beautiful province, fuel is an essential part of the cost of everyday life. For the people who grow our food, harvest our resources and keep our communities supplied, it is a cost they cannot avoid. Ian, a farmer from Cormack, wrote to my office about the financial pressures facing his business. He is averaging $60,000 to $70,000 per month in direct diesel fuel costs. He cannot sustain those increased input costs, and he cannot pass those costs on. That does not include the indirect costs of feed, fertilizer, other supplies and the transportation of his milk. These increased costs are not sustainable, and temporary relief is not sufficient. If lower fuel taxes provide relief, it does not make any sense to start taking that relief away while families, farmers and businesses are still struggling with the cost of everyday necessities. Families are still paying far more for groceries than they were a few years ago. Statistics Canada says that grocery prices are now 33% higher than they were in September 2020. I hear from seniors in my riding who are watching grocery prices and fuel costs and are wondering how much further their fixed income can stretch. I hear from young families who work, save and do everything they are supposed to but are still finding that the cost of transportation, food, housing, and everyday necessities keeps putting home ownership further out of reach. Small businesses are under the same pressure because they cannot absorb higher operating costs forever. Eventually, those costs mean smaller margins, less money to hire and invest, and higher prices for customers. That pressure is showing up in other ways, too. Food Banks Canada recorded more than 2.1 million visits in a single month last year, nearly double the level seen in 2019. Almost one in five food bank clients reported employment as their main source of income, meaning many people using food banks are working, but they still cannot afford the basics. There is also a job and investment side. Businesses need a clear view of what their costs will be before they decide whether they are going to hire, expand or make a major investment, or as in Dwight’s case, commit to long-term contracts and then face increased input costs that undermine the profitability of his business and jeopardize the livelihoods of his employees. When fuel costs remain high and federal tax policy keeps changing, those decisions become harder to make. Lower fuel costs over a longer period would give businesses more certainty, leave more money available to invest in their operations and help to protect Canadian jobs. Our Conservative proposal would remove all federal taxes on gas and diesel until at least Canada Day 2027 to save Canadians up to 25¢ per litre and bring as much as $1,000 in savings for the average Canadian family. This includes the 7¢ per litre clean fuel regulations, the GST and removing the federal industrial carbon tax so that Canadians are not forced to pay more for food and fuel. Bill C-38 does not address the full cost that federal policies add to fuel. The GST remains, the clean fuel regulations remain and the federal industrial carbon tax continues to add costs throughout the supply chain. A temporary suspension of one tax does not address all these costs. Canadians need relief that lasts longer than a few months and lowers the overall cost of fuel. There is also a broader question here about Canadian energy security. Canada is one of the largest energy-producing countries in the world, yet parts of our country remain dependent on imported refined petroleum products. This is important, because when global supply chains are disrupted, when shipping routes are threatened or when decisions made in another country can affect the price and availability of fuel here at home, Canada should not have to wait for the next international crisis before thinking seriously about its own fuel security. We should be producing, refining, storing and transporting more of the energy we need here at home. That means attracting private investment, getting infrastructure built and making sure Canada can compete for projects and investment with other countries. For Newfoundland and Labrador, this is an enormous opportunity. Our province has major energy resources, skilled workers, strong marine infrastructure and communities with generations of experience in resource development. Yet, for generations, too many Newfoundlanders and Labradorians have had to leave home to find work elsewhere. For me, that is one of the most important parts of this debate. For a tradesperson in Newfoundland and Labrador, more investment can mean finding work close to home instead of spending weeks or months away from their family. For a young person, it can mean learning a trade or earning a degree and still being able to build a career in the community where they grew up. For local businesses, more investment and more jobs mean more customers and stronger communities. For Newfoundland and Labrador, investment certainty is very important. When companies decide where to invest, they look at their operating costs, the regulatory environment and whether a project has a reasonable chance of moving forward. If Canada is more expensive and less predictable than competing jurisdictions, investment goes elsewhere and workers are the ones who lose out on those opportunities. Temporary tax relief does not solve the bigger problem if Liberal policies continue to make it difficult to build the infrastructure needed to strengthen our own fuel supply. That means creating a more competitive environment for investment, getting projects approved faster and making it easier to build and transport in Canada. For Newfoundland and Labrador, that is where the real opportunity lies. Conservatives are calling for broader relief, and we will continue pushing for it by pushing to remove the remaining federal taxes and costs that make gas and diesel more expensive while also pushing to make Canada a better place to invest. Families in Newfoundland and Labrador do not need another announcement telling them relief is coming. They need to see the difference when they fill their vehicles, buy their groceries, heat their homes and pay their bills. That is what Conservatives will continue to fight for.”