Business of Supply

A Conservative opposition day motion calling on the government to lower diesel costs, including removing federal taxes on diesel until July 2027 and expanding Canadian fuel production. Conservatives said record-high diesel prices, driven by federal taxes and rules that hinder energy projects, are hurting farmers, northern communities and grocery costs. Liberals said global factors are driving prices, pointed to tax relief they have already introduced, and argued the motion ignores Canada’s integrated refining ties with the United States. The Bloc Québécois members opposed cutting the gas tax, arguing funds should go to old age security instead, and raised concerns about government spending on a pipeline and the Alto train project. Green Party member Elizabeth May focused on foreign ownership of Canada’s oil sector and subsidies to foreign-owned projects, and exchanged views with Conservatives on processing raw materials in Canada.Written by AI from the debate. Updated .

Official text (opens in a new tab)

49 statements

Carol Anstey, Long Range Mountains

Conservative
“I want the government to adopt our plan to lower diesel prices. Canadians pay much more for diesel than other countries because of federal taxes and rules that hurt energy projects. We need to cut taxes on diesel and produce more fuel here in Canada to lower everyday costs.”
  • A repeated line

    “Including the industrial carbon tax and the clean fuel standard.”

    Said 10 times by 9 members since April 28.

    Every time it was said
Official Hansard

moved: That, given that, (i) Canada’s diesel prices have hit record highs over the last several weeks, (ii) Canada’s diesel prices on September 28 were approximately 24 cents per litre higher than the United States average, and 31 cents a litre higher than the world average, showing that high prices cannot be explained by global factors alone, (iii) diesel powers the tractors that farm our food, and the trucks and trains that transport it, leading to bigger grocery bills for working Canadians, (iv) Canadians pay more than other countries for diesel because of high taxes, a low dollar and too much reliance on U.S. refineries, (v) Canada should have the most affordable diesel in the world, given that we have the fourth biggest oil reserves, the House, in the interest of saving Canadians money and fuelling our country at home, call on the government to adopt the Emergency Fuel Relief Plan that: (a) provides for emergency pre-permitting and tax relief for the construction of diesel infrastructure, such as refineries, pipelines, rail and storage; (b) eliminates all taxes on diesel consumption until at least Canada Day; and (c) permanently eliminates taxes on diesel production; and call on the government to set the goal of boosting Canadian diesel production to one million barrels per day, allowing every Canadian business and consumer access to Canadian diesel. She said: Mr. Speaker, I will be splitting my time today with my colleague and friend from Bow River. I rise today to speak to our Conservative opposition motion calling for an emergency fuel relief plan to cut diesel costs, increase Canadian fuel production and strengthen our ability to fuel ourselves at home. Across Canada, diesel keeps our economy moving. It powers the trucks that deliver groceries to our stores, the equipment farmers use to bring in the harvest, the fishing vessels on our coasts, forestry and mining operations, construction equipment and essential services in rural and northern communities. When diesel costs more, everything that depends on it costs more too. Families feel it in the price of groceries, building materials, transportation and everyday essentials. Canada’s geography makes these pressures even harder. Goods must travel long distances to reach rural communities. Residents often travel long distances for work, groceries and medical appointments. Higher fuel costs follow them throughout their daily lives and make almost everything more expensive. Higher fuel costs are not just a problem for the person standing at the pump. They show up in the cost of producing food, moving freight, building homes and keeping businesses open. In rural, northern and remote communities, those costs can be even harder to absorb. Many Canadians have no practical alternative to driving long distances, and businesses have no alternative to moving goods across our sprawling, vast geography. The national Canadian average of diesel was roughly $2.63 a litre, up roughly 38% in just three months. A week prior, it reached $2.74 a litre. In my riding, diesel in Deer Lake reached $2.77 a litre. There is no question that events overseas have contributed to higher fuel prices. Conflicts involving Iran and Ukraine have disrupted energy markets and put pressure on fuel supplies around the world. Those pressures are being felt around the world, yet they do not explain why Canadians are paying approximately 24¢ more per litre for diesel than Americans and 31¢ more than the world average. For fishermen filling their boats, farmers running their equipment and truckers delivering our groceries, that premium adds up, and those higher costs are ultimately passed on to families. Canada cannot control conflicts overseas, but we can control the taxes, regulations and barriers here at home that add to the cost of producing and supplying fuel in Canada. International markets affect everyone, but Canadians should not be paying an additional premium created by taxes and barriers that the Liberals imposed on Canada. From farmers on the Prairies, forestry workers in British Columbia and northern Ontario and truckers moving goods across Quebec to fishermen in Atlantic Canada and workers supplying remote communities in the north, affordable and reliable diesel is important in every area of this beautiful country. Canada’s energy policy must reflect what it takes to live, work and do business across a country as large and diverse as Canada. Fuel costs do not stop at the pump. They move through the supply chain and into the price of food, building materials and everyday necessities. A single piece of harvesting equipment can consume more than 1,100 dollars’ worth of diesel in a day. During harvest, those costs hit farmers especially hard. The Grain Growers of Canada estimates that fuel for one large machine could cost $15,000 more this harvest than last year. That is before counting other equipment. I see the impact of those costs in my own riding of Long Range Mountains. Michelle, a farmer from Cormack, wrote to my office about what those costs look like on the ground. In 2024, her farm spent $86,543 on diesel. This year, she expects that this cost will reach approximately $135,000. That is an increase of nearly 56% in just two years. That is only what her farm spends directly on fuel to keep its tractors and equipment running. Michelle explained that diesel is needed for everyday work, like preparing feed for their cows and cleaning the barns. It is also needed to spread manure and fertilizer; mow, bale and haul hay; and clear snow during the winter. On top of that, her farm pays higher freight charges and fuel surcharges on feed, fertilizer, supplies and equipment parts, as well as the cost of transporting the milk. As Michelle explained to me, rising fuel prices at this level are simply not sustainable for farms. For farmers like Michelle, diesel is essential and not an option. If the equipment does not run, the farm cannot operate, and if the truck does not move, she cannot transport her product. These pressures extend across our economy. Diesel powers construction equipment, mining and forestry operations, and the trucks and trains that move goods across the country. Higher operating costs ultimately add to household bills. This is why Canada’s energy security matters just as much as immediate relief at the pump. Threats from Washington to restrict diesel exports to Canada further underline the urgent need to strengthen our domestic refining, transportation, storage and supply. Whether that threat materializes or not, Canada needs to prepare before a disruption reaches our communities. We should not wait for the next supply disruption before asking whether Canada has enough refining capacity or whether we can move Canadian fuel when it is needed. A country with our energy resources should have the infrastructure and capacity to better protect Canadians before a crisis happens. Canada has the world’s fourth-largest crude oil reserves, yet parts of Canada remain heavily dependent on imported refined petroleum products, much of them coming from the United States. In 2025, Canada imported approximately 485,000 barrels per day of refined petroleum products. Nearly 80% of those imports came from the United States. For a country with our resources, workers and expertise, we should be doing more to produce and refine the fuel Canadians need here at home. For 11 years, Liberal antidevelopment laws like Bill C-69 and Bill C-48 have discouraged private investment and held back energy development. Instead of making it easier to build the infrastructure needed to move Canadian energy across Canada, Liberal federal policy has too often added another layer of uncertainty. Companies considering major investments need certainty. They need to know that projects can move through the approval process within reasonable timelines and that Canada is a competitive place to build and expand operations. Canada cannot become more self-reliant on fuel while continuing to impose barriers that make energy infrastructure harder and more expensive to build. The Liberal government knows that cutting taxes saves Canadians money. It needs to stop making excuses and implement our Conservative emergency fuel plan relief to cut diesel costs, build Canadian energy and put more money back in Canadians’ pockets. The Conservative plan is straightforward: lower costs now, increase Canadian fuel production and make Canada more resilient. Our motion calls on the government to take concrete measures to provide immediate relief, while increasing Canada’s ability to produce, refine and distribute the fuel Canadians depend upon. We should eliminate all federal taxes on diesel sales until at least Canada Day 2027 to give households and businesses relief that they can count on. That means removing federal taxes on diesel consumption, including the GST, so that farmers, truckers, fishermen and businesses can reduce their input costs and continue to provide Canadians with the food and goods and services that they rely upon. We should permanently eliminate federal taxes on diesel production, including the industrial carbon tax and the clean fuel standard, so that federal policy encourages affordable Canadian fuel production. We should increase Canadian diesel and other refined fuel production to one million barrels per day within five years, with the goal of meeting demand across Canada and eliminating the diesel price gap with the United States. We should create emergency permitting for diesel refineries, storage, and transportation infrastructure so that fuel can reach the people and businesses that depend upon it. That includes the pipelines, rail infrastructure and storage facilities needed to move fuel reliably between regions and get it to market. We should allow businesses to deduct 100% of investments in diesel production and distribution in the first year to encourage private investment in the capacity that Canada needs. If Canada wants new refineries, refinery expansion, storage facilities and transportation infrastructure, our tax and regulatory environment has to make Canada a competitive place to put that capital. We should also build a strategic refined petroleum reserve to protect Canadians during supply disruptions. Our plan would provide relief today while strengthening our ability to fuel ourselves here at home. More Canadian fuel, better transportation infrastructure and emergency supplies would put us in a stronger position to meet our needs and supply our allies. These measures provide Canadians the relief they need from higher costs, but they also empower us to produce more of the fuel we consume and move it reliably wherever it is needed. Canada cannot control every event in Washington or disruption in global markets, but we can control whether we make it easier or harder to produce and refine fuel here at home. Members of this House should consider the impact that higher diesel costs are having on Canadians in every region in this country. I encourage members from all parties to support this motion and help build a stronger, more affordable and more resilient Canada.

Carol Anstey, Long Range Mountains

Conservative
“The Liberals only take half measures on our ideas. They should support our motion to give Canadians real relief from high costs.”
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Official Hansard

Mr. Speaker, oftentimes, the Liberals like to take Conservative ideas and go part of the way, but they do not want to go all the way. I would suggest that they approve of our opposition day motion so we can provide real relief for Canadians. Instead of taking half measures on Conservative ideas, I would encourage them to support our opposition day motion, if they are really serious about the affordability crisis in this country.

Rob Morrison, Columbia—Kootenay—Southern Rockies

Conservative
“Diesel fuel costs over three dollars a litre in rural British Columbia. High fuel prices are hurting our loggers and farmers. I want to know how this motion will help them today, not a month from now.”
Official Hansard

Mr. Speaker, it is interesting. I stopped at a small gas station in rural B.C., and the diesel price was over three dollars a litre. We are struggling with our logging industry and our farmers. One farmer in Grasmere cannot afford his cattle. There is another farmer in Creston who has the largest asparagus farm in B.C. Diesel prices are tormenting them. How will this motion help them get through the tough times they are going through right now, not a month from now, but as of today?

Carol Anstey, Long Range Mountains

Conservative
“We need to cut all fuel taxes right now to help farmers. Their diesel costs are up 48% over the last two years, and they cannot afford it.”
Official Hansard

Mr. Speaker, I can certainly relate to those stories because I have farmers reaching out to me consistently, all the time. It would provide immediate relief if we eliminated all those taxes right now. They desperately need it. As I talked about in my speech today, when our farmers are paying a 48% increase from just two years ago on diesel, which is so much a part of their operations’ direct and indirect costs, they cannot sustain higher input costs. They are in real trouble and facing real risks. We are fighting for our farmers and want to provide immediate relief to them because we know they are struggling right now.

Carol Anstey, Long Range Mountains

Conservative
“I fight for the people in my riding and across Canada. The Liberals only cut gas taxes because Conservatives pressured them to do it. We take credit for that, and we will keep fighting for Canadians.”
Official Hansard

Mr. Speaker, I do not think there is any misunderstanding about how much I advocate for the people in my riding and in this country. I find it a bit rich that the member opposite gets up and attacks me for fighting and advocating for Canadians. If we had not put the pressure on, absolutely the Liberals would not have cut the taxes on gas. Yes, we will take credit, and yes, we will continue to fight for Canadians.

Tamara Kronis, Nanaimo—Ladysmith

Conservative
“High fuel costs make groceries too expensive in coastal communities like mine. Cutting this fuel tax would help. I want the member to share what people in her community are saying about food costs.”
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Official Hansard

Mr. Speaker, the hon. member and I often reflect on the fact that we represent coastal ridings where it feels like we get hit with high fuel costs on the way to the grocery store, at the grocery store and on the way home from the grocery store. I wonder if the member could share a bit more about what she is hearing in her community, because if it is anything like mine, food affordability is a major issue right now, and this would really help.

Carol Anstey, Long Range Mountains

Conservative
“People in my riding live far apart in rural areas and have to drive long distances to see a doctor or buy goods. They have no other way to get around. That is why they need cheaper fuel.”
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Mr. Speaker, there are vast distances between the communities in Long Range Mountains, just as there is in the member’s riding, where places are rural and remote. In order for people to get to their medical appointments or get the goods and services they need, they have to travel long distances and have no alternatives. That is why this is especially important for the constituents we represent.

David Bexte, Bow River

Conservative
“I want the House to pass this motion to cut fuel costs. High diesel prices are hurting farmers and driving up the price of groceries. We need to remove all federal taxes on diesel until at least July 2027, cancel clean fuel rules, and make it easier to build refineries and pipelines in Canada.”
Official Hansard

Mr. Speaker, I thank my colleague, the member for Long Range Mountains, for sharing her time with me. I truly appreciated the words she had to share with the House. They were fantastic. It is always an honour to rise on behalf of the people of Bow River. During the debate on Bill C-38, I invited the Prime Minister to Bow River. I asked him to stand in a field in southern Alberta at 10 o’clock at night, beside a farmer and his son facing the rain. That invitation still stands, even though the harvest is wrapping up in southern Alberta. It is probably the most expensive harvest these farmers have faced in their entire lifetime. At this time of year, the work on our farms does not end when the sun goes down. The crop still has to come off, trucks still have to run and the livestock still has to be fed. The harvest is when a family finds out what a year of work will bring. The seed has been paid for, the fertilizer has gone on the ground and the machinery payments keep coming, and now the family has to bring the crop home. They cannot leave the crop standing until diesel gets cheaper. They cannot ask the weather to wait while Ottawa makes up its mind. It is the harvest. A modern combine burns 60 to 80 litres of diesel an hour. Harvest days run 12 hours or more. That is 800 litres a day for one machine on one farm in one day. Diesel in this country now averages about $2.60 a litre, and it has hit record highs for weeks. It should not cost this much to fuel the country with the fourth-largest oil reserves on earth. Canada should have the most affordable diesel in the world. The government will point overseas, at the geopolitical and the Strait of Hormuz. Oh my. Wars and global turmoil affect fuel prices everywhere, but they do not explain the extra costs Canadians have to bear. Canadian diesel is now 24¢ a litre more than the American average and 31¢ a litre more than the global average. A wheat farmer in Montana, just a short drive south of Taber, Alberta, sells into the same world market as my neighbours, but an Alberta farmer is paying 24¢ a litre more for diesel. Before any seed is in the ground, our farmers are already starting the season at a competitive disadvantage. Canadian farmers are paying more for fuel than their competitors in the United States and other markets for three main reasons. These are high taxes, a weak Canadian dollar and an overreliance on American refineries. That is why I support this motion and our emergency fuel relief action plan. At the end of September, the national diesel price was around $2.60 a litre. For a farmer, this is a bill that grows with every hour the combine runs. The Grain Growers of Canada has put that cost into terms this House should understand. One large combine burning 70 litres an hour and working eight hours a day for 30 days, with bulk diesel rising from $1.10 to $2 a litre, has added to the harvest a bill of more than $15,000. This is the increase for one machine. It is not the increase for the tractor pulling the grain cart, it is not for the trucks hauling to the elevator and it is not for the truck delivering fuel. That money could pay down the operating loan. It could replace worn tires. It could help carry the farm through the winter. Instead, it goes into the fuel tank. From the fuel tank, it goes into government coffers. A farmer can work longer hours, but a farmer cannot bargain with an empty tank. This motion is not just for our farmers. It is for every Canadian family that sits down at the dinner table each night. Think about a loaf of bread. Before it reaches the shelf, someone has to grow the wheat, someone has to harvest it, someone has to haul it to be milled, the flour must reach the bakery and the bread must reach the store. Each of those trips requires fuel. The same is true of potatoes, corn, vegetables, meat and the feed that keeps livestock growing. Every step carries tax. The last stop is the family at the till. By the time that food reaches the checkout, the family buying it is paying the compounded cost of every tax along the way. The government cannot claim to care about food affordability and grocery prices by sending Canadians a few hundred dollars each year and ignoring what is driving those prices higher. It is the fuel for the farmers, truckers and businesses that produce and deliver our food. Parents feel it every week. They put groceries back at the till. They buy less meat. They skip fresh fruit. The Conservatives are not asking for anything complicated. Our emergency fuel relief plan has two parts. The first part would save Canadians money today. We would take every federal tax off diesel sales until at least Canada Day. That means extending the full excise tax cut until July 1, 2027, and taking off the GST. The government announced plans to keep the excise tax off only until January 31, 2027, and half the tax would return in February. The full tax would return on April 1, April Fool’s Day, just as farmers are preparing for another growing season. Why bring the tax back just as the seeding bills start to arrive? It only goes to show that the government does not keep farmers in mind when it drafts policy and, by extension, it does not keep Canadians in mind. Farmers plan their year in the winter. They sit down with their families and then with their bank and work through the numbers before a single seed goes into the ground. They need to know what fuel will cost, because uncertainty at the pump becomes uncertainty on the entire farm. We would also take the tax out of making diesel, permanently scrap the federal industrial carbon tax and permanently scrap the clean fuel regulations. According to Environment and Climate Change Canada’s projections, and as reported by the Parliamentary Budget Officer, the clean fuel regulations are projected to add up to 16¢ per litre to diesel and 17¢ per litre to gasoline by 2030. That is not small. Natural Resources Canada’s agriculture sector energy use analysis indicates that 2023 fuel use on Canadian farms was roughly 3.8 billion litres of diesel and 1.5 billion litres of gasoline. That consumption would mean $613 million in additional diesel costs and another $254 million in gasoline costs for the agriculture sector alone. Altogether, that is nearly $870 million added in annual fuel costs. These are costs that farmers cannot simply absorb and that ultimately work their way through the entire food supply chain. That alone more than wipes out the $600-million benefit seen by increased canola sales. The second part of our motion today is about fuelling our country at home. Canadian workers should be turning Canadian oil into Canadian fuel. Instead, we rely too much on American refineries. We pay for that diesel in American dollars, and with a low Canadian dollar, every one of those litres costs more. We need to create shovel-ready zones and prepermit land for refineries, pipelines, rail and storage. A company that follows every safety and environmental rule should know it can build before even applying. We should let companies deduct 100% of their investment in the first year in new refineries, refinery expansions, pipelines, rail, diesel and crude storage and the equipment to run the oil through those plants. The Conservatives call on the government to build a strategic reserve for refined fuel. Today, Canada keeps no national emergency reserve. That is a problem, especially in a global crisis. The goal is clear. Boost Canadian diesel production to one million barrels a day, give every Canadian business and every Canadian family access to affordable Canadian diesel and close the price gap with the United States within five years. This comes back to two kitchen tables. At one table, a farm family is working through the bills. The farmers have had a long day in the field and the numbers are bigger than they have ever been before. At the other table, a family is working through a grocery receipt. That family is deciding what needs to be left off next week’s list because the bills are higher than they have ever been before. The families might live hundreds of kilometres apart, but the relationship between the two cannot be ignored. The cost of fuel hits both of them. We should not ask either family to accept another speech about affordability without action to follow it. The Liberal government’s actions have fallen short. They have made matters worse for Canadian families. Today, members have a choice. They can call on the government to extend tax relief. They can support making fuel easier to produce, store and move. They can stand with the people who grow our food and the people trying to afford it. The crop will not wait and the bills will not wait, and neither should this House. I urge all members to support this motion.

David Bexte, Bow River

Conservative
“Bad policies should be removed, not just adjusted. The Prime Minister does not understand how hard it is for normal families to pay for things right now. We need full tax cuts, not small ones.”
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Official Hansard

Mr. Speaker, I would have to say there is no such thing as a measured way with unreasonable policies. We get them out of the way. If they are bad policies, we put in good policies. Whether the Prime Minister has spent some of his life in Alberta or not, I do not think there is a direct connection between that and the understanding of what the lives of a common person and a common family on a limited budget are like today, with the costs increasing day after day. Limited tax relief is not the answer. Full tax relief is the answer.

Tamara Kronis, Nanaimo—Ladysmith

Conservative
“Conservatives want to lower diesel prices completely, while Liberals only want small changes. High fuel costs made this harvest very expensive. I want the member to explain how that raises grocery prices across Canada.”
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Official Hansard

Mr. Speaker, the last question highlighted the difference between the Conservatives’ approach to this issue and the Liberals’ approach to this issue. They are talking about “measured”, and we are talking about making a substantial difference in Canadians’ lives by removing the entirety of everything the government can control in terms of the price of diesel. The member talked about the most expensive harvest he has ever seen. I am wondering if he could talk about the impact of that on our food prices at the grocery store in the rest of Canada.

David Bexte, Bow River

Conservative
“Fuel taxes add up at every step of getting goods to market. This costs families and farmers thousands of dollars a year. These taxes hurt our economy and make life more expensive.”
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Official Hansard

Mr. Speaker, my esteemed colleague always has a great perspective on the world. The cost cannot be underestimated, and it is so easy to do, because it comes in what seems like small bits, but collectively and adding it up, it compounds into a massive impact on the budget of families and farmers. It is thousands and thousands of dollars in a year coming out of a budget and going to taxes. Thousands and thousands of dollars go into the system for compounding taxes that are seen at every step of the supply chain. That money does not contribute to a good economy. It is not additive. It is a burden on our society, it is a burden on the people and it just makes life more expensive.

David Bexte, Bow River

Conservative
“In a perfect world, there would be no taxes at all. But in the real world, we should have a much smaller government and cut taxes as low as possible.”
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Official Hansard

Mr. Speaker, that is an interesting question from the member across the way. Should there be no taxation? In an ideal world, there would be none at all. There would be no income tax, no sales tax, no excise tax and no GST. However, we do not live in a world like that. It is not ideal yet, and it may never be, but taxes should be cut to the absolute minimum possible with the smallest possible government to deliver the minimum viable product. A small government means small taxes.

Carol Anstey, Long Range Mountains

Conservative
“Can my colleague explain how the cost of diesel affects farmers and their farms?”
Official Hansard

Mr. Speaker, I wonder if my colleague could articulate the direct, but also the indirect, costs to farmers of diesel and what that means to their farms. I know he knows the space very well.

David Bexte, Bow River

Conservative
“Farmers are paying thousands of dollars more every day for things like seed, feed, and shipping. A huge part of those rising costs is taxes.”
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Mr. Speaker, it is about where I come from and what I live. The day-to-day experience of farmers is that every bill is more, and it is more by thousands of dollars, whether it is for the trucker delivering fertilizer, the fertilizer itself, the seed or the feed. It is all of it. Everything is more, and it is thousands of dollars per day, per month and per year. I cannot overestimate how much money gets consumed in taxes.

Anna Roberts, King—Vaughan

Conservative
“Farmers in my area are hurting from high diesel fuel prices. I want the member to explain how this policy will affect their growing season.”
Official Hansard

Mr. Speaker, we went from a swampland to the salad bowl of Canada. We have over 125 farmers in the Holland Marsh. They farm 7,000 acres. At Eek Farms, they are commercial third-generation farmers. They are feeling the impact of the diesel prices. Can my hon. colleague please explain to the farmers of my community how this will impact their growing season?

Tamara Kronis, Nanaimo—Ladysmith

Conservative
“This bill only gives temporary relief on fuel taxes, which keeps businesses uncertain about the future. High diesel prices will not go away soon. I want members to vote for our motion instead, which cuts all federal taxes on diesel until July 2027.”
Official Hansard

Mr. Speaker, the government says that the pressures on diesel prices are the result of global factors that will not go away quickly. The member talks about relief, but the relief he is proposing is temporary. That will only prolong the uncertainty that our supply chains and businesses are facing as they make investment decisions. Why not support our motion and give Canadians more lasting relief by eliminating all federal taxes on diesel until July 2027?

Kevin Waugh, Saskatoon South

Conservative
“I want the House to pass our motion to cut diesel taxes and produce more fuel in Canada. Diesel prices have doubled in the last year, and those higher costs will soon hit regular consumers.”
Official Hansard

Mr. Speaker, I like our opposition day motion today because our motion is pretty simple. We have to cut diesel taxes and produce more fuel in this country. I heard a farmer from Weyburn, Saskatchewan, on the radio last week who said there has been a 100% increase in diesel prices year to year, and a 25% increase in diesel prices from August to now. This will come to consumers sooner or later. Why would the government not support our motion today? It would trickle down to the consumers.

Jacques Gourde, Lévis—Lotbinière

Conservative
“The federal government should not move ahead with the Alto train project. The parties that just won the Quebec election oppose it. If the federal government takes land in Quebec for the train anyway, it will push Quebec further toward separating from Canada.”
Official Hansard

Mr. Speaker, I would also like to talk about the election, thank those who have left and congratulate the winners, but I want to start by talking about something I noticed in my colleague’s speech. He said something that struck me. We saw the former Quebec government doing the Liberal Party’s bidding when it came to Alto. Everyone who was part of that government is now gone. On the other hand, those who were against Alto, namely the Parti Québécois and the Conservative Party of Quebec, have made huge gains. One has formed the government, and the other has risen from the ashes and elected 19 members to the National Assembly. If the government still intends to push ahead with the Alto project, I think it will need support in Quebec. I do not know where it will find it, but pushing ahead and expropriating Quebec land through the Crown—what message does that send to a party hoping for sovereignty?

Jacques Gourde, Lévis—Lotbinière

Conservative
“We need to cut the fuel tax to help farmers and consumers. Diesel prices are going up, and farmers have to pay much more for fuel to bring in their crops while selling their food at regular market prices. They need relief.”
Official Hansard

Mr. Speaker, I listened carefully to my colleague’s speech. He seems to be assuming that if we lower taxes, the oil companies will pocket that money. We could discuss and debate that, but what I find unfortunate about his remarks is that he overlooked the fact that diesel prices are currently rising. Let me give an example from the agricultural sector. This fall, farmers have pay up to 25¢, 30¢, 40¢ or 60¢ more per litre to bring in the fall harvest, a harvest that will not necessarily sell for a higher price, because farmers sell their products at the prevailing world market prices. They are the ones who will have to absorb this staggering increase in energy costs. I think it would be a good idea to give them a little breathing room, but my colleague does not seem to agree that consumers should get that breathing room.

Fraser Tolmie, Moose Jaw—Lake Centre—Lanigan

Conservative
“I want the government to remove all taxes on diesel fuel until at least Canada Day. Diesel prices are way up, and farmers need cheap fuel to plant crops and haul food this spring. The government's plan to bring the fuel tax back on April 1 hurts farmers right when they use the most fuel. We also need to build more pipelines and refineries so Canada can make its own fuel instead of buying it from the United States.”
Official Hansard

Mr. Speaker, I will be splitting my time with the MP for Saanich—Gulf Islands. There is an old saying in military circles: Amateurs talk strategy; professionals talk logistics. It is as true on a farm as it is in an army. Getting a crop in the ground and off the field is a logistics exercise from start to finish to have the right equipment in the right place at the right time with fuel in the tank, and that fuel is diesel. Diesel is not a luxury fuel. It runs the tractor and the combine. It runs the grain truck and the locomotive that takes the crop to port. It runs the potash mine and the gravel hauler, and the pickup trucks that Canadian workers drive every day. Nothing in Canada’s food system moves without it. Right now, Canadians are paying more for it than they should, for reasons this government can control. Last month, diesel fuel averaged $2.74 a litre in Canada and a year ago, it was about $1.53. That is an increase of nearly 80%. On September 28, Canadians were paying about 24¢ a litre more than the American average and 31¢ more than the world average. This is a country with the fourth-largest oil reserves in the world. Global turmoil explains why prices went up everywhere. It does not explain why they are higher here. Let me talk about home. Harvest in Saskatchewan has not been kind this year. With waterlogged fields, heat, hail and delays, producers in my riding were already behind, and then diesel costs spiked at precisely the moment they needed it most. Grain Growers of Canada estimates that fuelling a single large combine would cost more than $15,000 more this harvest than it did last year. Reporting out of Saskatchewan this fall put the added cost of diesel fuel at roughly $20 an acre. The president of the Agricultural Producers Association of Saskatchewan summed it up plainly, saying that “[i]n the spring, [farmers faced] record...fertilizer prices. Now [it is] record...diesel prices, and on top of that, [trade uncertainties threaten what they will get for the crop].... [They are] looking at higher expenses and possibly lower returns.” Here is what members opposite need to understand about agriculture. Farmers are price takers. A manufacturer can raise the price of what they sell. A canola grower near Lanigan or a wheat farmer outside of Moose Jaw cannot. They sell whatever the world price is that day, less the cost of freight. Every cent added to the cost of diesel fuel comes straight out of their margin. There is nobody to pass it on to and the diesel bill does not stop at the farm gate. The grain is trucked to the elevator. It goes by rail to the coast. The fertilizer comes back the other way. Processors, packers and grocers all run on fuel. The cost compounds at every link in the chain and it lands at the checkout in Moose Jaw and in downtown Toronto alike. Tax the farmers’ fuel and that is taxing the food. Tax the truckers’ fuel and that is taxing everything they carry. I expect the government members will stand up today and say they have already acted. They suspended the federal excise tax on fuel and they have extended that suspension. I will give them that. It was the right call. Conservatives called for it and Canadians welcomed it. However, let us look at the calendar. Under the government’s own plan, the excise tax on diesel fuel comes back at half-rate on February 1 and at the full rate on April 1. Anyone who has spent time in rural Saskatchewan knows what this means. Farm fuel use is not spread evenly across the year. It comes in two surges: seeding in the spring and harvest in the fall. In between, through the winter, the machines sit in the shed and the fuel bill is at its lowest. The government’s relief arrives in the months when farmers are using the least diesel. The tax comes back on April 1, just around ground thaws and when the trucks that serve agriculture go back to work, when the farm trucks and the semis haul seed and fertilizing fuel out in the field and the grain is still moving to the elevator. There is relief through the quiet months, but the tax is back for the busy ones. It does not stop with the farmer. Spring is when the seed moves, when the fertilizer moves, when the trucks and railcars that serve agriculture are running flat out. Everyone knows those leaders will carry the tax again. Some members will say it is only 4¢ a litre. In Ottawa, 4¢ sounds small, but if we multiply it across every truckload of seed and fertilizer, every load of grain to the elevator, every delivery that keeps a farm running in the spring, it is not small at all. On a farm already absorbing record fertilizer prices and record diesel prices, there is no such thing as a cost that does not matter. Here is the question for the government: If the tax was worth suspending this fall, why is it worth bringing it back in the spring? Nobody in the House can promise diesel prices will have come down by April. If, as the government’s own news release says, this relief is meant to help the food and the agriculture sectors, we should not set the end date right in the middle of the agriculture year. This is not a plan built around how farmers work. It is a plan built around a fiscal calendar in Ottawa. Our plan is different. We would eliminate all taxes on diesel until at least Canada Day to carry farmers through seeding, not just through winter, to carry truckers through spring hauling, and give Canadians real breathing room, not a countdown. I want to be honest with the House about something. Tax relief alone does not close a 24¢ gap. Tax relief is the bridge. Supply is the destination. Canadian diesel is more expensive than American diesel because we do not make enough of our own. In southern Saskatchewan, much of our diesel comes from the co-op refinery in Regina. It is a tremendous asset, but western Canada still relies on fuel brought in from the United States. Last year, nearly 80% of the refined petroleum products Canada imported came from the United States. For decades, Canada has shipped its crude oil south and bought it back as gasoline and diesel as a profit to American companies. With a weak Canadian dollar, every one of those imported litres costs us more. This is not just an affordability problem, but a vulnerability. We have the resource. What we have lacked is the will to build. For 11 years, the Liberal government has blocked and delayed the projects that would have made us self-reliant, like pipelines to carry Canadian crude oil and diesel across our own country, expanded production and a strategic reserve to protect us during shortages. Energy east was abandoned. Approval timelines stretched into decades. Investors noticed and capital went elsewhere. The result is exactly what the motion described: fewer ways to produce, refine and transport our own fuel. Members opposite may have a new leader, but it is the same caucus and the same cabinet that built the record, and Canadians are paying for it at the pump. We have a better plan. We have shared it within my speech. We are asking the Liberal government to listen to us, to listen to the farmers within my riding and across Canada, because we are a food-producing nation. We are a breadbasket and we are starving our own people because of bad Liberal policy. There needs to be a change. We are asking for support.

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