Adjournment Proceedings

An adjournment debate on affordability, following up on a question about government spending and the cost of living. Jonathan Rowe of the Conservatives argued that government spending has driven inflation, interest rates and rents higher, and proposed a 25-cent cut to the diesel tax paid for with oil and gas revenues. Parliamentary Secretary Jennifer McKelvie responded that the government is focused on making life more affordable, citing a fuel tax pause until Labour Day, lower pension plan costs, a longer repayment period for homebuyers’ retirement savings withdrawals, and a new Canada groceries and essentials benefit providing tax credits to over 12 million Canadians. The exchange continued along these same lines for the remainder of the debate.Written by AI from the debate. Updated .

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4 statements

Jonathan Rowe, Terra Nova—The Peninsulas

Conservative
“The government is spending too much money. This spending causes high inflation, higher interest rates, and higher rents. The Liberals blame outside events instead of taking responsibility for making life less affordable.”
Official Hansard

Madam Speaker, I am thankful for the privilege to speak here today. A few weeks ago, I asked a question in the House about affordability. The premise of that question was that under Trudeau, there was a lot of spending, and inflation went up, and then a new Prime Minister came along, promised to run on affordability, had a banker’s resume and was going to fix the country and bring down inflation. Unfortunately, we actually see a budget that is spending more than Justin Trudeau. It is so disappointing to see that. I think some Canadians are starting to feel duped now that these budgets are out. Inflation is caused by printing money, essentially. The more money there is in the system, and the goods remain the same, the more cost it is per good. This is what our Conservative leader was talking about. Just before COVID, and during Trudeau’s big spending frenzy, our Conservative leader kept talking over and over about how the more we spend, the more inflation goes up and the more interest goes up. What happened? Interest went up. People’s mortgages have gone up because of it. Rents have gone up because of it. Rents have gone up in Newfoundland 10% year over year, partially because interest rates are going up, and then we have inflation going up as well. It is very disappointing because people in Canada are making relatively the same wage. They are working harder but not getting ahead. They are working more and not getting ahead, because this government is spending more, and it is so disappointing. There is a graph in the budget on page 11 that shows how the deficit-to-GDP ratio actually increased after the current Prime Minister was elected. It has been a full year from when he was elected until now, and it increased significantly. It just blows my mind, as that is the opposite of what the Prime Minister campaigned on. A third of Atlantic Canadians are saying they cannot even afford to pay their bills now. Every time we point to the Harper decade and point to how Canadians could afford food back then, they could get by and perhaps even afford a trip throughout the world for vacation at that point, the excuse is always, “Well, oil prices were high. Times were good, oil prices were high, and things were great.” They do not mention that we were in the 2008 economic crisis. No, oil prices saved Canada. Okay, maybe that is true, but what is interesting is that now when we mention inflation, the Liberals will say, “Well, inflation is because of the war in Iran. With the war in Iran, the price of oil is going up, and so things are becoming more expensive, and inflation is going up.” Which is it? I mean, it is so frustrating. Canada does better when the price of oil goes up. We get revenues. The Canadian economy should be predicted to do better because of that. It is so frustrating to see this double, two-way argument. It seems like the Liberals are trying to blame everybody and anybody they can. First they blamed Trudeau, and then they axed him. Then they blamed Trump. Now that things are, “Oh, you know, who cares? We can’t talk to Trump,” they get to blame the war with Iran. This is what I want to know. When will the Liberals stop looking out their window trying to find a scapegoat to blame this inflation on, rather than looking in a mirror, holding themselves accountable and asking who was running this country for the past decade when inflation got out of hand?

Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure

Liberal

Linked statement

“Our government is making life more affordable for Canadians. We are pausing the federal fuel tax until Labour Day to lower gas prices. We plan to lower pension plan costs for workers and businesses next year. We are also giving new homebuyers more time to pay back money taken from their retirement savings.”
  • Reply to a debate question

    Relevance 38 of 100

    None of this reply addressed the specific point raised or the topic under debate.

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  • A repeated line

    “Our government is focused on what we can control.”

    Said 9 times by 7 members since April 30.

    Every time it was said
Official Hansard

Madam Speaker, in a rapidly changing world, the government is focused on what we can control, which is building a stronger economy to make life more affordable for Canadians. Many Canadians continue to face affordability pressures as the cost of essential goods, housing and everyday expenses remain high. That is why the government has also taken action to help Canadians with daily expenses. For example, starting April 20, the federal fuel excise tax on gasoline and diesel, across Canada, will be suspended until Labour Day. This reduces gas station fill-ups by 10¢ per litre on regular gasoline and four cents on diesel. This will help Canadian drivers and reduce operating costs for truckers and businesses in the food, agriculture, housing, construction and delivery sectors. Now I would like to talk about some of the new measures announced in the April 28 spring economic update that will help make life more affordable for Canadians. For one, the update announced the government’s intention to introduce legislative amendments to the Canadian pension plan to reduce the contribution rate in the base CPP from 9.9% to 9.5%, effective next January 1. This would translate into annual savings of about $133 for an employee earning $70,000 a year, with an equivalent savings for their employer for each worker. This change was agreed to by provincial ministers of finance as co-stewards of the plan, and it would maintain a prudent financial buffer to protect the CPP against future economic and demographic risks while providing meaningful contribution relief. For new homebuyers, the update proposes to extend the grace period before starting repayments on the homebuyers’ plan withdrawals from RSPs from two years to five years for participants making a first withdrawal between January 1, 2026, and December 31, 2028. This would provide cash flow relief of up to $4,000 per individual per year for the additional three years they are no longer required to start repaying the amount into their RRSP. This follows the recent elimination of the GST for first-time homebuyers on new homes up to $1 million and the reduction of GST for first-time homebuyers on new homes between $1 million and $1.5 million, providing savings of up to $50,000. These are just some of the ways the government is helping to make life more affordable for Canadians.

Jonathan Rowe, Terra Nova—The Peninsulas

Conservative
“The government spends too much and taxes too much, which makes life more expensive. We should cut taxes on diesel by 25 cents to lower costs for Canadians. We can pay for this cut with the money Canada makes from selling oil and gas.”
Official Hansard

Madam Speaker, the government cannot tax itself into prosperity and it cannot spend its way out of inflation. That is what is very frustrating, because both of these approaches seem to be what this government keeps trying to do. It is so upside down and backwards. Four cents on diesel is almost a joke. The government is probably getting more than four cents on the GST because of the price increase. It is almost a joke. Diesel is what ships our food. It is what ships all the products in Canada. In a lot of ways, it is almost the core of the Canadian economy. The Conservatives wanted to take 25¢ off, to take it all off and reduce all those taxes to give people at home a break. We could offset those costs with all the royalties that Canada is getting from our oil and gas while supplying our allies with some of the best oil and gas in the world.

Jennifer McKelvie, Parliamentary Secretary to the Minister of Housing and Infrastructure

Liberal
“We are giving more than 12 million Canadians extra money through tax credits to help them buy food and everyday essentials. A family of four will get up to an extra $1,890 this year and $1,400 each year for the next four years. A single person will get up to $950 this year and $700 each year for the next four years.”
  • A repeated line

    “We introduced the Canada groceries and essentials benefit.”

    Said 29 times by 19 members since April 23.

    Every time it was said
Official Hansard

Madam Speaker, I should also mention another important affordability measure to support those most affected by the rising price of food. In January, the government announced the new Canada groceries and essentials benefit to help more than 12 million Canadians afford day-to-day essentials. The benefit builds on the existing GST credit and will provide additional support through a one-time top-up payment to be issued on June 5, equal to a 50% increase in the annual 2025-26 value of the GST credit. Combined with a 25% increase in the value of the GST credit for the next five years, this means that a family of four would receive up to an additional $1,890 this year and about $1,400 a year for the next four years, and a single person would receive up to $950 this year and about $700 a year for the next four years. Our government cares about affordability.

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