Canadian Fuel Affordability Act

Bill C-38, Canadian Fuel Affordability Act · Second reading · now law Where it stands

What the law does

The law extends the temporary suspension of the federal fuel excise tax until January 31, 2027. Between February 1, 2027, and March 31, 2027, excise tax rates on fuels are set at 50% of their regular rates.

Official text (opens in a new tab)

182 statements

Tamara Kronis, Nanaimo—Ladysmith

Conservative
“The government should listen to our ideas and make this fuel tax cut permanent.”
Official Hansard

Mr. Speaker, it is very late, and I apologize for not speaking through you. I have the utmost respect for you, both as a person and as an institution. I would say to the members opposite that the best ideas never rise to the top without debate and without listening. The government pushed a lot of things through in the spring. I would urge it to take the time to listen and to allow us to do our job as the opposition, which is to provide constructive commentary that hopefully helps the government see that it could do more. In this case, that is extending the excise tax relief more permanently.

William Stevenson, Yellowhead

Conservative
“The government chose to run a $78-billion deficit and spend even more money after the budget. At the same time, high gas prices are bringing in extra tax money. I want my colleague to say more about how these government choices hurt Canadians.”
Official Hansard

Mr. Speaker, I listened to my colleague’s wonderful speech, and I would like her to expand a bit on something. She said that a lot of what government does is control what it can control, which has a big effect. The Liberals have a $78-billion deficit and had an extra $6-billion-plus in spending after they came out with the budget, so they have controlled a lot of what they are going to spend. Meanwhile, they are kind of ignoring the extra GST and the extra oil revenues from the high prices of gas and oil, which they are consuming. This could go a lot further if they intended. Can you expand on how the Liberals’ choices are affecting our citizens?

Tamara Kronis, Nanaimo—Ladysmith

Conservative
“I want this fuel tax cut passed and made permanent. Temporary cuts leave too much uncertainty for businesses like farms, trucking companies, and grocery distributors. Permanent tax relief will help them plan ahead and invest.”
  • Reply to a debate question

    Relevance 43 of 100

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

    See full analysis
Official Hansard

Mr. Speaker, I am glad that my colleague brought up the concept of control. One reason we want the gas tax relief extended and made permanent is so we can give businesses the chance to exercise that control themselves. We know that farmers plan around growing seasons. I have, of course, spoken to farmers who tell me over and over again that energy costs are hampering their ability to plan. Trucking companies negotiate contracts, but their margins are so slim that they are struggling to stay afloat, and certainty around the cost of fuel for the long term would make a big difference. Grocery distributors build networks, but changing buying patterns based on volatile pricing is actually messing with inventory levels and even creating extra food waste. Processors make investments that they have to pay for over years, and uncertainty is making them blink, which is stifling innovation and further impeding productivity. The government talks about wanting to control the things that we can control. Relieving the tax burden on a permanent basis would not only allow us to control the things that we need to control but would also allow businesses to plan.

Charles Sousa, Mississauga—Lakeshore

Liberal
“I want the House to pass this bill. It pauses the federal fuel tax until 2027 to lower gas prices and help Canadians with the high cost of living.”
  • 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

Mr. Speaker, I appreciate your allowing me to speak to Bill C-38, the Canadian fuel affordability act. While Canada is starting from a position of strength, the global economy is becoming increasingly uncertain. New and unjustified tariffs, trade tensions, and conflicts in the Middle East and Europe are driving up costs for households and businesses and are creating economic uncertainty here at home for all Canadians. Our government recognizes this and is taking action to help Canadians manage rising costs and navigate these global economic uncertainties. Earlier this year, we temporarily suspended the federal fuel excise tax, saving Canadians and Canadian businesses 10¢ per litre on gasoline and 11¢ per litre on leaded aviation fuel. The impact was immediate, with gasoline prices declining by 11¢ per litre on the first day of implementation. That was real relief for Canadians from coast to coast to coast. Building on our decision earlier this month, the Minister of Finance and National Revenue announced our intention to extend that temporary suspension until January 31, 2027, and apply 50% of the regular excise tax rate from February 1 through March 31, 2027. That means that Canadians in my riding of Mississauga—Lakeshore on the shores of the great Lake Ontario would benefit with extended relief and continued cost reduction per litre for gasoline and diesel. Let me be clear: This measure would help lower costs for Canadians, including truckers and businesses in the food and agriculture, housing, construction and delivery sectors. This is another example of our government’s delivering timely and meaningful relief when Canadians need it most. By reducing pressure on gasoline and diesel prices, we would be helping Canadians manage today’s challenges, while laying the foundation for longer-term growth and prosperity as we build on the strongest economy in the G7. This is just one part of a broader effort to lower costs for Canadians. It is one of the first measures our government took after assuming office. Members opposite will recall that one of the first things the Prime Minister did upon assuming office was to cancel the consumer fuel charge, helping Canadians to save money at the pump in most provinces and territories. Our government also removed the requirement for provinces and territories to have a consumer-facing carbon price as of April 1, 2025. At the same time, our government recognizes that affordability challenges extend well beyond the cost of fuel, and that is why we have taken additional steps to put money, and more money, back into Canadians’ pockets. For example, we introduced the new Canada groceries and essentials benefit. By building on the former goods and services tax credit, we are increasing the amount provided to low- and modest-income Canadians by 25% for the first five years, as of July, 2026. In addition to that, we provided a one-time payment in June, equivalent to 50% of increases in 2025-26, with an annual value of the GST credit. Our government is responding to global challenges with a responsible and pragmatic fiscal approach. It is important to note that while we may not control every global event, with respect to the ones that are impacting prices, I want to assure my hon. colleagues and all Canadians that our government is doing what is necessary to take and make a deal that helps those impacts. By lowering costs for Canadians from coast to coast to coast, the government is providing supports to their affordability challenge while creating an economy where Canadians have more control in building their own future. Above all, these government measures will empower Canadians to get ahead and minimize the impacts on their cost of living. Canadians naturally want to keep more of the money they earn. They want greater opportunities to support their families, invest in their communities and build their future with confidence. Our country is at a crossroads. Many people around the world choose Canada. New Canadians are seeking freedom and opportunity. Throughout history, Canadians have proven themselves to be resilient, to overcome adversity, and over the years, they have grown more prosperous. They will continue to build. We will persevere, more united than ever, to protect our sovereignty and strengthen its resolve. Standing together, we are navigating this crossroads. I returned recently from overseas, and I had witnessed many around the world celebrating Canada’s standing. The Prime Minister is sought after for his leadership and experience, just as much as Canada is sought after for its critical minerals and untapped potential. Canada is valued as a trusted partner that abides by the rule of law and social justice. As chair of the defence committee, I can attest that boosting Canada’s defence industrial strategy is renewing our confidence while stimulating our economy. More than that, it bolsters our national pride. Events recently, such as the major attraction at the investment summit, speak volumes. They will enable major projects and build our economy, which sustains and supports the social programs Canadians rely on and expect. Just as the EU and so many around the world welcome Canada, we welcome every effort to broaden our reach and foster relations to reduce geopolitical threats that have impacted price challenges here at home. This bill would help support Canadians, and I hope my colleagues will support this measure for the greater benefit of all Canadians.

William Stevenson, Yellowhead

Conservative
“The member just got back from overseas. I want to know if any of the countries he visited produce their own oil and still tax fuel for their citizens like Canada does.”
Official Hansard

Mr. Speaker, I have to comment on the member opposite’s speech. I felt as though I was listening to a radio. He has a great radio voice. I actually was captivated by some of his comments. In one of them, he said he has just returned from overseas. I would like to ask whether any of the countries he visited were actually oil-producing countries that were taxing their citizens on the fuel they have, compared to importing it. These other countries, I am assuming, were actually importing all their oil and not benefiting from oil they have in their own country. Does any other country you visited actually have a fuel excise tax for its citizens?

Charles Sousa, Mississauga—Lakeshore

Liberal

Linked statement

“European countries tax fuel too, and gas is much more expensive there than in Canada. Those countries also lead the world in using wind, solar, and other clean energy.”
Official Hansard

Mr. Speaker, the hon. member makes reference to excise taxes in other parts of the world. Most European countries, which is where I was, actually do have excise taxes on their fuel. In fact, fuel was much more expensive than it is here at home in Canada. More importantly than that, the countries I was in were also harnessing renewable energy. They are at the forefront of some of the most critical measures to foster wind power and solar power. They are relying so much more on other energy sources. To answer the member’s question, they in fact have very high excise taxes on their fuel.

Elizabeth May, Saanich—Gulf Islands

Green
“I want to know what the member thinks about this bill based on his past work in Ontario, when he helped cut pollution and save money by closing coal plants. I am disappointed this bill only cuts fuel taxes for a short time instead of taxing the huge extra profits of big oil and gas companies.”
  • Question or comment in debate

    Signal 36 of 100

    Much of this statement went to praise, blame, greetings, routine procedure or general stories rather than reasons, requests or specific points.

    See full analysis
Official Hansard

Mr. Speaker, I am perhaps asking the hon. member for Mississauga—Lakeshore to turn back and reflect on some of his previous background. I think he was the minister of finance in the government of the province that did the most to reduce greenhouse gases when the province of Ontario shut down its coal-fired power plants. I think he may know something about reducing pollution and saving lives, reducing greenhouse gases while also saving people money in that province. I wonder if he has any reflections. I am disappointed that all we would be doing is a temporary relief on an excise fuel tax instead of taxing major oil and gas companies on the excess profits they are receiving right now, but perhaps the former minister of finance has some thoughts.

Charles Sousa, Mississauga—Lakeshore

Liberal
“When I was in Ontario's government, we moved away from coal power. It cost a lot, but it cut emissions and helped our economy in the long run. I agree we need to do more on climate change, and our government wants to build green energy too.”
  • Reply to a debate question

    Relevance 45 of 100

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

    See full analysis
Official Hansard

Mr. Speaker, during the time I was there, provincially we did quite a bit to decarbonize Ontario’s reliance on coal. We became one of the lowest-emitting provinces as a result of those measures. We tried to do everything we could to modernize that system, which was expensive but long-term and has great benefits to the overall costs and to the climate. We were trying to make our green energy process an economic process with greater long-term benefits. I value the member’s question. I value her desire to have us do more in that regard, and I know that the Prime Minister also has a great desire for climate initiatives to harness green energy alongside the things we are doing as an energy superpower.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“Our government is working hard to make life more affordable. This bill helps by cutting the fuel tax by 10 cents a litre, and then by 5 cents a litre after January. I want my colleague to share his thoughts on this.”
Official Hansard

Mr. Speaker, I wonder if my colleague could provide his thoughts on what has been a very important issue, that of affordability, and on how the Prime Minister and the government as a whole have taken on the issue, wanting to be able to deliver on it in many different forms. This is a very important step, with Bill C-38 giving that 10¢-a-litre extension in terms of a break. Once we hit the end of January, it goes to 5¢ a litre. It is one part of a much bigger picture of the very important issue of affordability. Could the member provide his thoughts on that?

Charles Sousa, Mississauga—Lakeshore

Liberal
“This bill is just one part of our plan to lower costs for Canadians. We are also cutting taxes, dropping the tax on fuel, and helping people pay for food, child care, and dental care.”
Official Hansard

Mr. Speaker, I appreciate the parliamentary secretary’s initiative around looking at this as a wholesome package. Bill C-38 is only a portion of the work that is being done by the government to lower overall costs and improve affordability measures for Canadians, including introducing the Canada groceries and essentials benefit, cutting taxes for 22 million Canadians, providing and eliminating the goods and services tax for first-time homebuyers, cancelling the federal consumer carbon tax, making the national school food program permanent, introducing automatic federal benefits, lowering costs and strengthening competition for essential services, expanding and entrenching the Canada child benefit, lowering costs for child care and kids’ essential services, like the $10-a-day child care and interest-free student loans, for that matter, and the Canadian dental care plan—

William Stevenson, Yellowhead

Conservative
“I will vote for this bill because Canadians need a break on fuel costs. But it does not go far enough. The government should extend fuel tax relief until at least Canada Day, permanently scrap clean fuel rules, and end the industrial carbon tax.”
Official Hansard

Mr. Speaker, I am pleased to rise today to speak to Bill C-38 and to the very real issue at the heart of this legislation, which is affordability. For more than a generation, tax policy has been designed to effect social policy. Taxes have been designed to curb our citizens’ behaviour, not to benefit taxpayers. Tax policy has not been developed for what is best for the long-term future of Canadians. When taxes interfere with people’s way of life, making it cost more to buy food, get to work or go to medical appointments, there is something wrong with our tax system. For families in Alberta and right across Canada, affordability is not an abstract economic concept. It is the price at the gas pump. It is the grocery store bill, the cost of getting to work, the cost of moving a truckload of farm products. It is the cost of building a home. For many Albertans, it is simply a question of whether they can afford to drive the distances that life in a large, rural and resource-producing province requires. That is why the government’s decision to extend the federal fuel excise tax suspension matters. However, it is also why we have to look carefully at how we got here and what happens next. Conservatives have been raising this issue for months in the House. During question period back in April, actually on my birthday, I asked the question as to whether the government would extend the suspension of the excise tax until the end of the year. The Minister of Emergency Management and Community Resilience refused to commit to any relief for Canadians beyond September 7. If the Liberals had dealt with the issue back in the spring, we would not be here today having the same conversation. Are we going to have to do this again next January, when the government realizes the suspension is not enough again? I think all members would appreciate not having to repeat the same debate a third time and would ask the Liberals to consider extending this suspension until Canada Day. We pushed the Liberals to cut the tax. Then we pushed them to stop taking that relief away, but it needs to go further. Mind you, our proposal in April went beyond just the excise tax. We also called for the suspension of the GST on gasoline and diesel, the removal of costs associated with the clean fuel regulations, and the elimination of the industrial carbon tax. The government, however, chose a much narrower measure, by suspending only the federal excise tax. Its own figures estimate that this measure would provide more than $2.4 billion in relief. Now, after that temporary measure was scheduled to expire, the government is looking to extend it. Bill C-38 would keep the federal excise tax suspended through to January 2027, and in February and March the tax would return at half the regular rate. On April 1, April Fool’s Day next year, the regular federal excise tax rate would return. It is not a joke. That means about 10¢ per litre on gasoline and 4¢ on diesel. If lowering the fuel tax provides significant relief today, why should Canadians automatically face the full tax again on April 1? Why does the government continue to ignore Canadians who are in desperate need of help? As we debate Bill C-38, I want to take this opportunity to speak about the issue that touches every Canadian, every working family and every business in this country. As the only chartered professional accountant with tax experience in the House of Commons, I understand both the importance and the complexity of the different layers Canadians have to deal with in tax. Canada’s tax system has become far too complicated. For too many Canadians, understanding their tax obligation requires navigating a maze of rules, exemptions, credits, deductions and administrative requirements. That complexity comes at a cost. It consumes valuable time and resources for families and businesses. It creates uncertainty for those trying to invest in and plan for the future, and it makes it harder for Canadians to understand how much they are actually paying in tax. A reform of our tax system is not simply about changing the tax rate. It is about building a system that is simpler, more transparent and more fair, one that Canadians can understand and businesses can navigate with confidence. Canadian workers and businesses deserve a tax system that rewards hard work rather than making it harder to get ahead. Small businesses, in particular, need a system that allows them to spend less time dealing with paperwork and more time creating jobs, investing in their communities and growing their businesses. Our tax system should work for Canadians, not the other way around. What is most frustrating with the bill is that the government originally described it as temporary relief. Now it is extending that relief, and I would not be surprised if next year we are back, having to extend it again. The original suspension was supposed to end two weeks ago. Instead, the government is now rushing to extend it through the end of next January and will then phase the tax back in the following two months. That change reflects the economic circumstances Canadians are currently facing. It also reflects the fact that the affordability problem did not disappear when the temporary measure was scheduled to expire, two weeks ago. The government has recognized that, and I think Canadians will thank them for it. The question now is whether the extension is sufficient. For many Canadians, particularly those who drive long distances or operate businesses dependent on transportation, the answer will depend on what happens after March 31, because the reality of fuel costs in Canada will not suddenly disappear on April 1. We also need to recognize the role fuel plays in Canada’s competitiveness. Transportation is not an optional part of our economy. It is fundamental to it. When the costs of moving goods rise, businesses face higher operating costs. When transportation costs rise, competitiveness suffers. Regardless of the current political climate, we are still very much competing with the United States, which does not have the layers of taxes and bureaucracy that we do here at home. This is just one more chip away at our global competitiveness, and Canadian businesses are suffering as a result. Another idea we may want to consider is permanently removing the excise tax on Canadian petroleum products to benefit Canadian companies. That is why fuel tax policy is about more than what someone sees at the gas pump. It is also about the cost of moving the Canadian economy. The House should not stop asking questions simply because the government has taken one step. We should be asking what happens next. We should be asking what relief will continue. We should ask how federal tax policies affect the cost of transportation. We should ask how those costs move through the supply chains, and we should ask whether Canadians can realistically afford this tax’s return in April 2027. Conservatives have been raising these issues for months. The government has now extended a measure that it originally described as temporary, and that is why Bill C-38 matters, but this debate should not end with the passage of the temporary extension. The bill is needed. No one is doubting that. Canadians need this relief at the pumps, but there is more we can do. There is more we need to do. We need to continue pushing to remove all federal taxes on gas and diesel until at least Canada Day next year; we need to permanently scrap the clean fuel regulations, and we need to remove the industrial carbon tax, so Canadians can save approximately 25¢ per litre. On this side of the House, we are committed to continuing this fight, and we hope to continue making measurable progress. At the end of the day, the bill would be good for Canadians, and for that reason, I will be supporting it. Canadians deserve an economy where working, producing, transporting and building are affordable.

Corey Hogan, Parliamentary Secretary to the Minister of Energy and Natural Resources

Liberal
“Most countries dealing with high fuel costs have not cut their fuel taxes. Only a few, like Norway and Germany, tried it. I want the member to consider these examples and tell us what other ideas Canada should learn from.”
Official Hansard

Mr. Speaker, recently I came back from a G20 meeting held by the world’s largest crude oil producer, the United States, where there is a combined excise tax in Texas of 38¢ a gallon. Countries everywhere are struggling with the global effects of this war. They are exploring different ways to do this. Most have not eliminated excise taxes or even reduced them. The only two I am aware of in addition to Canada are Norway, which brought its tax back at the end of summer, on August 31, and Germany, which has reduced its tax until December. I am wondering if you consider those lessons and you think about them and the implication of these policies. When you look further abroad, are there other affordability policies you think we can learn from or that Canada should consider?

William Stevenson, Yellowhead

Conservative
“We will keep questioning this bill and asking where tax relief is for Canadians. We cannot compare Canada to Norway, because Norway has much higher income and corporate taxes. This debate is about our own choices on how much we spend and tax.”
  • Reply to a debate question

    Relevance 43 of 100

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

    See full analysis
Official Hansard

Mr. Speaker, I have made that mistake many a time tonight, I know, and eventually I will break that habit, I am sure. The Conservatives will continue to scrutinize measures and continue to raise the concerns we have heard from Albertans and Canadians, who continue to ask the government where their temporary reliefs are. Comparing ourselves to many of the other countries is quite difficult when we compare our tax system, especially when we look at, as the member opposite brought up, Norway. Norway may have an excise tax that it has changed, but Norway has a completely different system, in which their personal individual tax and their corporate taxes are much higher than what we have in Canada. Their system is going to be looking at quite a difference in terms of what they actually spend on. However, this goes back to our choices, which is what we are debating here in the House. It is about the choices that we are going to make, going forward, on what we are spending and how we are taxing our citizens.

Arnold Viersen, Peace River—Westlock

Conservative
“I want to ask my colleague if he thinks the Liberals copied our ideas with this bill.”
Official Hansard

Mr. Speaker, I want to ask my hon. colleague whether he thinks the Liberals have plagiarized our playbook with this bill.

William Stevenson, Yellowhead

Conservative
“This bill is a Conservative win. We pushed to pause the fuel tax from the start, and the Liberals copied our idea. We will keep fighting to make life more affordable.”
  • Reply to a debate question

    Signal 0 of 100

    Much of this statement went to praise, blame, greetings, routine procedure or general stories rather than reasons, requests or specific points.

    See full analysis
  • Reply to a debate question

    Relevance 100 of 100

    Of this reply, 100% addressed the question or point raised.

    See full analysis
Official Hansard

Mr. Speaker, as Conservatives, we are proud of the role we played in securing this win. I feel like this is a win on the Conservative side. We have never stopped fighting, and we will not stop fighting, for more affordability measures. We pushed for this at the beginning, and we actually achieved what we wanted back in April. That part of it has been very beneficial. Yes, the Liberals are plagiarizing our playbook, as the member said.

Sonia Sidhu, Brampton South

Liberal
“We cannot control global energy prices, but we can help Canadians with the cost. Extending the pause on the fuel tax through the winter helps families plan their travel costs. Does the member agree?”
  • A repeated line

    “We cannot control the global forces driving up prices.”

    Said 3 times by 3 members since September 22.

    Every time it was said
Official Hansard

Mr. Speaker, Canada cannot control the global forces driving up energy prices, but we can control how we are responding. Our plan balances support for Canadians without compromising our fiscal position. Does the member opposite agree that extending the suspension through the winter would give Canadians greater certainty in managing their household transportation costs?

William Stevenson, Yellowhead

Conservative
“I support tax cuts, but this fuel tax break ends too soon. People need more than six months of certainty to plan their lives and work. We need to extend this tax relief past April.”
Official Hansard

Mr. Speaker, on this side of the House, we are definitely in favour of any tax relief. However, because it is going to come back in April, given the way it is proposed, it does not really help with long-term certainty. Knowing what is going on for the next six months will help with some planning, but people need to plan far beyond six months for their future, whether it is for work or for what they are going to be doing for the next year. It is very important that the measures are extended past April.

Tamara Kronis, Nanaimo—Ladysmith

Conservative
“The previous speaker talked about stability. I want him to explain how long-term certainty creates stability and makes life more affordable.”
Official Hansard

Mr. Speaker, the member talked about stability. I am wondering if he could elaborate on the ways in which certainty over the long term breeds stability, which breeds affordability.

William Stevenson, Yellowhead

Conservative
“People and businesses need to know what to expect so they can plan for the future. The government could give them that certainty if it had good policies.”
Official Hansard

Mr. Speaker, certainty, predictability and clarity are very important for both businesses and individuals in planning their future affairs. We need to have that. That is one thing the government could provide to citizens if it actually had a good policy going forward.

Shelby Kramp-Neuman, Hastings—Lennox and Addington—Tyendinaga

Conservative
“I support this bill to cut the tax on fuel. Life is too expensive for Canadians right now, especially for people in rural areas who have to drive to work. We want this tax cut to be permanent, but temporary relief still helps.”
Official Hansard

Mr. Speaker, at 10 o’clock this evening, I think it is fair to recognize, as all of us can acknowledge, that it has been a long day. Nonetheless, it is certainly very much the case that this issue is important. As we return to the House, I believe it is worth reminding ourselves of something that can be lost amid the disagreements of this place. Canadians expect us to come here not simply to argue but to deliver results. They expect us to scrutinize legislation. They expect us to ask difficult questions. They expect us, as an opposition, to hold the government to account. However, they also expect us to recognize a good idea when we see one and to work together when legislation can make life a little easier for the people we were elected to serve. That is the spirit in which we approach Bill C-38. On this side of the House, we have long said that we are prepared to support sensible measures that provide meaningful financial relief to Canadians. There is nothing contradictory about challenging legislation when we believe it falls short and supporting legislation when it moves in the right direction. That is not partisanship. That is Parliament doing its job. Bill C-38 is a measure we can support because its central objective is one that I believe members across the House should be able to agree upon: Canadians need some breathing room. Families are making very difficult choices right now. Parents are looking at the grocery bill and deciding what can wait until next week. Young Canadians are wondering whether home ownership will ever be within reach. Seniors on fixed incomes are watching every single dollar, and small business owners are absorbing higher costs whenever they can. Farmers and producers are paying to fuel the equipment and vehicles they need simply to do their jobs. Governments cannot and should not solve every challenge confronting a household, but governments can make choices that leave Canadians with more of their own money and avoid unnecessarily adding to the cost of everyday life. Of course, permanent relief is better than temporary relief, but as we return to Ottawa, members on all sides should reflect on what we heard in our communities over the summer. For me, and I suspect members from every party, one subject came up again and again, and that is affordability. People in Hastings—Lennox and Addington—Tyendinaga are not speaking about affordability as an abstract economic concept. They are talking about what remains in their bank accounts after their mortgage or rent is paid. They are talking about the cost of groceries, heating their homes, getting their children to hockey practices and filling the tank so they can get to work. That last expense matters enormously, especially in rural and small-town Canada. That is not to diminish the very real affordability challenges facing people in Toronto, Vancouver, Montreal or other major urban centres, but transportation looks very different outside Canada’s largest cities. For millions of Canadians, driving is not a lifestyle choice; it is a necessity. There is no subway in many locations. There may be no commuter train. In many communities, there may be little or no public transit whatsoever. The grocery store may be kilometres away. A medical appointment may require travelling to another community. Getting to work, taking a child to school or operating a farm may mean getting behind the wheel because there simply is no other practical alternative. When fuel costs rise, those Canadians cannot simply choose not to drive. They have to find the money somewhere else in their family budget. That is why federal fuel tax relief matters. The government’s temporary suspension reduced the federal excise tax by 10¢ per litre on gasoline and four cents per litre on diesel, among other fuel categories. The government itself estimated that the temporary measure would provide more than $2.4 million in tax relief in 2026. Extending that relief is therefore a step in the right direction, and Conservatives support doing so, but it also raises a reasonable question: If removing this tax temporarily provides meaningful relief to families, workers, farmers and businesses, then why should Parliament not have a serious discussion about making that very relief permanent? That is the larger conversation we believe Canadians deserve, because every single dollar matters to a household that is stretched. Ten cents on a litre may look small when written on a spreadsheet in Ottawa, but Canadians do not buy one litre of gasoline at a time. A farmer does not operate one piece of equipment for one kilometre. A tradesman does not drive up to one job site a year, and a parent in rural Canada does not make one trip to the grocery store. Those costs accumulate. So do savings when government chooses to reduce them. We would prefer permanent relief. We have been clear about that from the get-go, but we should also remember the old principle that we ought not allow the perfect to become the enemy of the good. If this legislation means Canadians keep more of what they earn, then it deserves our support. Perhaps it represents something else as well: an acknowledgement that the concerns expressed for years by rural Canadians, small-town families, farmers, tradesmen and commuters are legitimate and deserve to be heard in this very chamber. The affordability challenge, however, extends far beyond the gas pump. Statistics Canada released new results from the 2024 Canadian housing survey showing that 23.2% of Canadian households were living in housing considered unaffordable under the conventional measure of spending 30% or more of household income on shelter costs. Among renters, that figure was 33.7%. That same survey tells another troubling story. In 2018, 11.1% of Canadian households reported being dissatisfied or very dissatisfied with housing affordability. By 2022, that had risen to 14.5%. In 2024, it reached 23.3%. In other words, dissatisfaction with housing affordability more than doubled between 2018 and 2024, including an increase of 8.8 percentage points in just two years. Behind every one of those statistics is a person. It is the young couple wondering whether they should postpone starting a family because they cannot afford a larger home. It is the renter watching another lease renewal approach with anxiety. It is the family whose mortgage payment has increased and who now has to decide what else can be cut from the monthly budget. The pressure is not confined to housing. Statistics Canada reported that in the spring of 2024, 45% of Canadians said that rising prices were greatly affecting their ability to meet day-to-day expenses. That was up 33% from just two years earlier. The burden was particularly pronounced among Canadians with lower incomes. Fifty-nine per cent of people in the lowest income quintile reported being greatly affected, as did 52% in the second and 48% in the third. More than half of Canadians between the ages of 25 and 44, or 55%, said rising prices were greatly affecting their ability to meet everyday expenses. Those numbers should command the attention of every member of this House regardless of partisanship, because affordability should not be simply a slogan we deploy when convenient. It should be a test we apply to the decisions we make right here. Does a measure make it easier or harder for a Canadian family to balance its budget? Does it leave a worker with more or less money at the end of the month? Does it recognize the realities facing a farmer, a senior, a young person or someone living in a community where driving is not optional? These are practical questions, and Canadians deserve practical answers. Bill C-38 would not solve Canada’s affordability challenges. No responsible member of the House should pretend it does, but it would provide relief. It recognizes the real pressures facing Canadian households, and it moves, however incrementally, in the direction of allowing Canadians to keep more of their own money. We will continue to argue for permanent fuel tax relief. We will continue to challenge the government where we believe Canadians deserve better. That is our responsibility as His Majesty’s loyal opposition, but our responsibility is also to support measures that help Canadians when they come before the House. Canadians are making difficult choices every day. Parliament should be looking for responsible ways to make some of those choices a little less difficult. On this measure, we have the opportunity to do precisely that, and that is why we will support it.

Discussion

No comments yet

See the full discussion

Comment rules

More from sitting 141

  1. Government Orders Canadian Fuel Affordability Act 92 statements
  2. Oral Questions The Economy 12 statements
  3. Government Orders Canadian Fuel Affordability Act 10 statements
  4. Oral Questions Government Priorities 6 statements
  5. Oral Questions The Economy 4 statements
  6. Oral Questions Forestry Industry 4 statements
  7. Oral Questions Housing 4 statements
  8. Oral Questions The Economy 2 statements
  9. Oral Questions Canadian Identity and Culture 4 statements
  10. Oral Questions Housing 4 statements
  11. Oral Questions The Economy 8 statements
  12. Oral Questions Public Safety 4 statements
  13. Oral Questions Justice 4 statements
  14. Oral Questions The Economy 8 statements
  15. Oral Questions The Economy 2 statements
  16. Oral Questions Justice 4 statements
  17. Oral Questions Taxation 2 statements
  18. Oral Questions The Economy 2 statements
  19. Oral Questions Labour 6 statements
  20. Oral Questions Immigration, Refugees and Citizenship 2 statements
  21. Government Orders Canadian Fuel Affordability Act 65 statements
  22. Oral Questions Justice 2 statements
  23. Private Members' Business Jury Duty Appreciation Week Act 6 statements
  24. Government Orders Canadian Fuel Affordability Act 182 statements
  25. Adjournment Proceedings Adjournment Proceedings 4 statements
  26. Adjournment Proceedings Adjournment Proceedings 4 statements