Adjournment Proceedings

An adjournment debate on the Canadian Fuel Affordability Act, which would extend the pause on the federal fuel excise tax and then cut the rates in half for two more months. Liberal member Madeleine Chenette said Canada is not in a recession, the economy is growing, and the bill would keep tax relief on fuel costs going from a position of strength. Conservative member Cheryl Gallant argued the economy is weak, with near-zero growth, job losses and rising debt, and said growth figures look good only because other countries are doing worse. She also criticized the Prime Minister’s travel abroad, saying it does not help Canadians with the cost of living.Written by AI from the debate. Updated .

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2 statements

Madeleine Chenette, Parliamentary Secretary to the Minister of Canadian Identity and Culture and Minister responsible for Official Languages and to the Secretary of State (Sport)

Liberal
“Canada is not in a recession, and our economy is growing. We are keeping taxes down and helping families with costs. I want the House to pass this bill to keep pausing the federal tax on fuel.”
Official Hansard

Mr. Speaker, one of the things that I really like about adjournment proceedings is that it does allow us the chance to publicly correct the record. Conservatives were very quick to say that Canada was in a technical recession. We now know that is not the case. In August, Statistics Canada confirmed that the Canadian economy grew at an annualized rate of 3.3% in the second quarter, and also revised its Q1 figures to show that the economy grew in those months as well. It would be nice if the Conservative Party were as quick to celebrate these achievements as they are to tell us that Canada is broken. However, sticking to the facts does not make for good social media clips or help with fundraising emails. The world is changing rapidly. The U.S. is imposing new tariffs on Canada that are designed to hurt and divide us. At the same time, conflicts in Europe and the Middle East are driving up prices the world over. Despite these challenges, however, Canada continues to show resilience. While the new U.S. tariffs are creating headwinds, the Canadian economy is holding to a position of relative strength. We certainly recognize that some workers, families and small businesses continue to be under pressure. That is why it is important to look at the facts, as well as the Canadian economy’s overall performance. Canada’s economic strength is recognized internationally. The International Monetary Fund predicts that Canada will be one of the fastest-growing economies in the G7 this year and next. Economic growth rebounded strongly in the second quarter, with real gross domestic product up 3.3%, as I mentioned. Canada had the strongest quarterly growth in the G7 and posted a second consecutive increase in real gross domestic product per capita. In addition, our net debt-to-GDP ratio sits at just 10.2%, far below the G7 average of 101.8%. In fact, Canada’s net debt burden is far lower than any other G7 nation. These facts show that Canada’s economy is built to withstand global uncertainty and to continue to grow. This resilience is a direct result of the targeted measures our government has taken to support Canadians, such as making fuel more affordable for Canadians. That is why the government introduced Bill C-38, which extends the temporary suspension of the federal excise tax on gasoline, diesel and aviation fuel until January 31, 2027, after which 50% of the usual excise tax rate will apply from February 1 to March 31, 2027. By reducing fuel and transportation costs, this measure will provide targeted relief to workers, families, farmers and businesses across the country, including in sectors that rely heavily on transportation and construction. The government is also taking broader steps to make life more affordable, including through the Canada groceries and essentials benefit, income tax cuts for 22 million Canadians, the cancellation of the consumer carbon tax, and the GST relief for first-time homebuyers of new homes. Taken together, these measures will allow Canadians to keep more of their hard-earned money. Each one reflects a consistent principle that our government upholds, specifically that federal support must be timely, targeted and fiscally sustainable.

Madeleine Chenette, Parliamentary Secretary to the Minister of Canadian Identity and Culture and Minister responsible for Official Languages and to the Secretary of State (Sport)

Liberal
“Our government is giving Canadians real financial help when they need it. We can afford this because our economy is strong. We are investing in big projects and helping businesses grow so our economy stays strong.”
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    Clarity 11 of 100

    Much of this statement used imprecise wording, lacked details on timing or responsibility, or made broad claims without support.

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  • A repeated line

    “The government is focused on what it can control.”

    Said 4 times by 4 members since May 26.

    Every time it was said
Official Hansard

Mr. Speaker, the bottom line is that our government is delivering timely, tangible and fiscally sustainable relief for Canadians at a time when they need it, and we are doing so from a position of economic strength, not decline. In a more uncertain world, the government is focused on what it can control, advancing nation-building projects, removing barriers to growth, unlocking private capital and making investments to build the strongest economy in the G7. That is how we will ensure that Canada not only avoids the worst-case scenarios predicted by many at the outset of the U.S. trade actions last year but also emerges stronger, with a boost today and a bridge to a better tomorrow.

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