Official Hansard
Mr. Speaker, it is an honour to rise for the first time in this fall session. I would like to talk about what it means to be an average Canadian. We all know there is a moment that has become so familiar for so many Canadians. Someone pulls up to a gas station, they get out of their car, they put the nozzle in their tank and they just stand there watching those two numbers race each other. One number shows how many litres they are getting, and the other shows how much money is disappearing out of their bank account. For a lot of families, there used to be a point where filling up was almost an afterthought. If someone needed gas, they stopped and got gas, but today, people notice every single dollar. There are two ways to measure the cost of living. The government looks at it like a speedometer, but families live with the odometer. Let me explain that. The speedometer tells us how fast prices are rising today. That is the inflation rate. The odometer tells us how far prices have travelled from where they started, and that is the number that Canadians cannot simply reset. We hear that inflation is now around 3%, and that sounds like good news. Slower inflation is certainly better than faster inflation, but Statistics Canada tells us that grocery prices are still 29% higher than they were five years ago. The speedometer has slowed down, but the odometer has in no way gone backward. That is what Canadians are feeling right now. We could put a hundred-dollar bill on someone’s kitchen table and ask what that $100 bought for that family five years ago. We can then ask what that $100 would buy for them today. Nobody buys groceries with the consumer price index. They pay with real dollars, and those dollars simply do not stretch as far as they used to. That is the context in which we are debating Bill C-38 today. The regular federal excise tax is 10¢ a litre on gasoline and four cents on diesel. Under this legislation, those rates would remain at zero until January 31. However, then something curious would happen. On February 1, half of that tax would come back, and on April 1, the whole thing would come back. We are debating tax relief today, while the date for taking that relief away is already printed on the calendar. Our Conservative caucus has indicated that we will support keeping this relief in place, but this debate did not begin just this week. In April, Conservatives brought a motion before the House calling for the federal fuel excise tax to be removed for the rest of 2026, along with broader relief from federal costs on gasoline and diesel. That motion was unfortunately defeated, 192 votes to 134 votes. The issue was again raised in May. Members can disagree about how far relief should go or how long it should last, but the record is there. I think there is something else we should understand about fuel, particularly for those of us who represent rural Canada. There is a tax that people pay that never appears on any government form. It is the cost of distance. If somebody lives in a major city, there may be days where driving is simply an optional activity. That is not the reality for folks living in rural Canada. There is no subway running past the farmyard. The specialist for medical appointments is probably an hour or more away. The hockey rink one plays at is in the next town, and the away games are even farther, in the town beyond that. The hardware store might be 30 miles down the highway, and the part needed to get a combine moving again is most likely farther than that. There may as well be a line in the family budget called “the driving tax”. It is not because the government literally charges it, but because geography does. Every appointment takes fuel. Every grocery trip takes fuel. Every trip to work takes fuel for the vast majority of the folks I represent. For many seniors, a car is not just a luxury; it is independence. It is church on Sunday. It is seeing their grandchildren on the weekend. A senior cannot move the hospital closer because gasoline got too expensive for them to go to their appointments. A farmer cannot move the field closer to their home farmyard. A trucker cannot make Winnipeg and Calgary neighbours all of a sudden. Distance does not negotiate with the household budget. We can also think about one litre of diesel put into a tractor in Manitoba, the tractor that helps produce the crop. Next, the combine is running at about $250 an hour during harvest just to get the crop off, then another litre goes into the truck to haul the crop once it is off. There is fuel used again to get it to the processor. A truck takes the finished product to the distribution centre, and then another vehicle eventually delivers it to a store. Much of that cost is actually borne and eaten by the farmers themselves, but the consumer is ultimately paying the rest of it when buying the finished product. That is what makes fuel different from so many other household expenses. The cost moves through the entirety of the economy. A contractor’s truck carries tools to a job site. A delivery van carries somebody’s order. A semi carries food right across this great nation. Fuel is buried inside the cost of moving virtually everything that we enjoy day to day. That does not mean that a 10¢ tax reduction magically cuts 10¢ off the price of bread. Of course it does not, but the cost of moving those goods adds up. Even the government’s own announcement points specifically to trucking, agriculture, food, housing, construction and delivery businesses when explaining who would benefit from this tax relief. Earlier this year, the government conducted what was almost a real-world economic experiment. For years we had to hear the Liberals argue about whether taxes at the pump really made much difference at all. Then, in April, the excise tax came off, and according to the government’s own figures, gasoline prices fell by roughly 11¢ a litre on the very first day: tax off, prices down. Nobody thinks that the Government of Canada controls the world’s price of oil. It cannot control every refinery shutdown, war, or international disruption, but government does control the taxes that it adds on top of those prices, and Canadians can tell the difference. What worries me about the larger affordability debate is that we sometimes talk as though inflation’s having slowed down has repaired the damage from the inflation that came before it. It has not. Inflation works a little bit like a ratchet. Prices can move up very quickly, and they rarely return all the way to the place where they began. We can think of an elevator as another example. Over several years, the cost of living has taken the elevator up. Now the government points out that the elevator is moving up a little bit more slowly, but the family standing several floors above where it started may be forgiven for not celebrating just yet. That is why the same things that Canadians complained about being expensive a few years ago are still expensive today: food, housing, repairs, travel, fuel and just about everything in our day-to-day lives. The crisis changes shape, but the accumulated bill remains, and that brings me back to the April 1 date day etched in the calendar by the government and feared by Canadians. There is something odd about telling people that relief is needed today, while at the same time scheduling the tax to return just a few months from now, April Fools, except it is not a joke for Canadians. That is essentially where this policy, as drafted, leaves the country. The relief does last a little bit longer, but then the meter begins running again. Meanwhile, the grocery bill does not have an expiry date, and neither does the mortgage. The farmer will not just get to suspend planting next spring until diesel becomes cheaper for them. The senior does not get to postpone a medical appointment until the price at the pump improves. Families have to live in the economy every single day. There is a broader principle here that we should all remember: When the cost of living becomes difficult, governments instinctively start looking for something new to create, such as a new program, a new benefit, a new application or a new bureaucracy to administer the new program that they dreamt up. Sometimes that may be necessary, but sometimes there is a much simpler question worth asking first: Could government not just take less? A dollar that never leaves someone’s pocket does not require an application form from the government to get it back. It does not require some administrative department in Ottawa, and it does not require somebody to qualify. It is simply still their dollar, as it should be. Bill C-38 would provide temporary relief from one federal tax. The larger affordability debate is nowhere near finished, though, because Canadians do not experience the economy through a monthly Statistics Canada release. They experience it when they open their wallet. They experience it when they know that $100 simply buys less. They experience it when the drive to town costs that much more. They experience it when a litre of diesel works its way through a farm, a truck and eventually to their grocery store shelf. The speedometer may tell us inflation has slowed down, and that is a good thing, but families are still looking at the odometer, and they know exactly how far we have travelled.
