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)

65 statements

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

Liberal
“Foreign wars and unfair tariffs are making life more expensive in Canada. We are helping people by cutting the consumer fuel tax, paying for school food, sending benefits automatically, and expanding child care.”
Official Hansard

Madam Speaker, we are definitely in difficult times, with pressures internationally that we have never seen before that are having an impact on affordability in our country. To grow our economy and get through the unjustified tariff war and the pressures we have from wars overseas, we are continuing to invest in ourselves and are taking different measures on affordability, including the ones my colleague mentioned. To make it easier, we have cancelled the consumer fuel carbon tax, we have made the national school food program permanent and we are creating automatic federal benefits to make it easier for Canadians to access the affordability measures that help their bottom line. We are also continuing to expand and entrench the child care benefit so that women in particular can be their full selves in the workforce and have the care they need to reach their full potential in their careers. These are just some of the measures we are working on, and we will continue to do that.

Sukh Dhaliwal, Surrey Newton

Liberal
“I want the House to pass this bill. It keeps the federal tax off fuel until January 2027, and cuts it in half for two months after that. This saves people up to 10 cents a litre on gas and helps families and businesses deal with high costs.”
  • A repeated line

    “Our government temporarily suspended the federal fuel excise tax.”

    Said 5 times by 4 members since June 8.

    Every time it was said
Official Hansard

Madam Speaker, I am pleased to rise today to speak to Bill C-38, the Canadian fuel affordability act. Across Canada, families, workers, farmers and businesses continue to face pressures from rising costs. Whether it is filling up a vehicle, transporting goods or managing the operating costs of a small business, affordability remains an important concern for Canadians. During the summer, I attended hundreds of events and met thousands of my constituents. One thing I learned from them is that the Prime Minister and the government are doing their best, and they are very happy with the leadership of the Prime Minister. Most importantly, our government understands the challenges these Canadians are facing. That is why we are taking steps to help Canadians manage their expenses while continuing to build a stronger and more independent Canadian economy. Bill C-38 is about providing immediate relief at the gas pump. Earlier this year, in April, we temporarily suspended the federal fuel excise tax on gas, diesel and aviation fuels. This measure provided savings of 10¢ per litre on gas and four cents per litre on diesel and aviation fuel. Bill C-38 would extend this relief. This legislation would maintain the federal fuel excise tax at zero until January 31, 2027. From February 1 to March 31, 2027, the tax would be set to 50% of the regular rate, which would help Canadians manage the transition back to the regular excise tax rates. For gasoline, the extension is expected to provide savings of up to 10¢ per litre until February 2027, followed by a savings of five cents per litre through March 2027. For diesel, the savings are expected to be up to four cents per litre until February and up to two cents per litre through March. These savings matter. When families are already managing the cost of groceries, housing, utilities and transportation, every dollar can make a difference. For a family that depends on a vehicle to get to work, take children to school or attend a doctor’s appointment, fuel is not an optional expense. It is a necessary part of everyday life. In Surrey, Newton, I hear from families and small business owners who are working hard to manage their expenses. Our community includes commuters, delivery workers, tradespeople and entrepreneurs who depend on transportation to earn a living. Reducing fuel costs can help these Canadians manage their daily expenses. The benefits would also extend beyond the gas station. Truckers and businesses in the food, agriculture, housing, construction and delivery sectors depend on fuel to operate. Lower fuel costs can help reduce operating expenses and support the movement of goods across Canada. When a truck transports food to the grocery store, a construction company moves equipment to a workplace or a small business delivers products to its customers, fuel costs play an important part. This measure would provide temporary support to businesses facing economic uncertainty. Canada is operating in a changing global environment. International conflicts and disruptions in global energy markets have placed pressures on fuel prices. At the same time, Canadian businesses and families are dealing with uncertainty related to international trade and tariffs. We cannot control every global event that affects the price of oil or gasoline. However, we can make decisions within our control to support Canadians. Our government is also taking broader action to make life more affordable. We are lowering the personal income tax from 15% to 14%, providing tax relief of up to $420 per year per person or up to $840 for a two-income family. We have also cancelled the federal consumer carbon tax, provided GST relief for eligible first-time homebuyers and taken steps to strengthen competition in essential services. These measures address different areas of household expenses. Affordability is not only about the price Canadians pay today. It is also about building an economy that creates good-paying jobs, attracts investment and supports long-term economic security. As we provide temporary relief from fuel costs, we must also continue working toward a competitive and sustainable Canadian economy. Our industrial carbon pricing system is distinct from the consumer carbon pricing. It is designed to support Canada’s position as a responsible energy supplier, encourage investment in emission-reducing technologies and strengthen access to international markets. Canada has the opportunity to grow its energy exports, create jobs and attract investment while continuing to address environmental challenges. We must approach these objectives together. I recognize that members of the House may have different views about the duration and design of fuel tax relief. There can be legitimate discussions about the fiscal costs, the duration of temporary measures and how best to support Canadians facing financial challenges and pressures. However, Bill C-38 provides a specific and time-limited measure to reduce the federal fuel excise tax. It offers continued relief until the end of January, followed by a temporary reduction in the regular rate through March 2027. Families and businesses need support today, and they also need an economy that is prepared for the future. As the MP for Surrey Newton, I will continue to support measures that address affordability concerns in our community and across Canada. Our government is focused on helping Canadians keep more of their hard-earned money while strengthening our economy. I encourage all members to support Bill C-38 so that Canadians get the relief they deserve.

Warren Steinley, Regina—Lewvan

Conservative
“The government is copying our plan to cut fuel taxes. I want the member to explain why he voted against this exact idea several times last session, when it could have saved Canadians money a year ago.”
Official Hansard

Madam Speaker, they say that imitation is the finest form of flattery. We are flattered that the government is finally taking some of our policies to save Canadians money. That is why Conservatives came here: to make sure that Canadians have more money in their pockets. This is my question, and the previous Liberal speaker did not answer it: I am wondering why the member voted against our motion to remove the tax on gas four or five times last session. Canadians could have been saving money for almost a year, rather than bringing this forward now. Why did he vote against his constituents’ having more money in their pockets when we brought this exact motion forward last session?

Sukh Dhaliwal, Surrey Newton

Liberal
“The Conservatives voted against our measures to help people. They voted against cutting the gas tax, giving tax relief to millions of Canadians, and funding school food. People tell me these programs are helping them.”
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Official Hansard

Madam Speaker, in fact, here is the question that I should be asking the hon. member: Why did he and his leader vote time and time again against all those measures we brought to the House, whether it was cutting the gas tax, cutting the cost for 22 million Canadians with tax relief or providing food support to schools. I can go through the list, but I know I have only five minutes. The member and his leader voted against all those measures, but Canadians were helped and they feel helped. I can tell the member about the positive response that I get on the ground on those issues.

Gord Johns, Courtenay—Alberni

NDP
“Norway saved money from oil and gas to help its people and now has a huge fund. In Canada, oil and gas companies are making record profits, but the government lets them off the hook. We should put those profits into a public fund to help Canadians and pay for clean energy.”
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Official Hansard

Madam Speaker, we know that Norway, where they created a sovereign wealth fund, has $2 trillion U.S. In fact, in royalties alone, the Norwegians generated over $300 billion last year because they took resources from a finite resource, from oil and gas, and they invested them. They have taken those royalties to do exactly the kinds of things that the government is talking about today, taking pressure off citizens when times are difficult. Instead, what did the current government do? It created a sovereign wealth fund that took the big oil and gas companies and let them off the hook. Right now, we have record profits with big oil and gas. Does my colleague not agree that when big oil and gas are profiting with record profits because of a war, the generational wealth should be invested in a sovereign wealth fund that can be invested in programs that can help take the pressure off Canadians and pivot to investing in renewable energy? This is a generational opportunity that is being lost right now.

Sukh Dhaliwal, Surrey Newton

Liberal
“The Prime Minister knows how to invest money. The government's new investment fund will make money for Canadians, and we will use that money to fund social programs.”
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Official Hansard

Madam Speaker, one thing that I personally know and in fact all my constituents know is that the Prime Minister knows investments. When it comes to creating this sovereign fund, he knows exactly where he is going and he is going to invest for Canadians. Canadians are the ones who will make money, and that money will be invested into the programs that the NDP cares for and always asks for. We will continue to invest in those benefits.

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

Liberal
“This bill cuts gas taxes by 10 cents a litre until the end of January, and five cents a litre until the end of March. It helps about 20 million Canadians. I want the member to explain why this tax break is so important right now.”
Official Hansard

Madam Speaker, I have known the member for Surrey Newton for many years, and I have always found him to be a very strong and powerful advocate for issues such as tax breaks. This is one of those issues for which we are going to see a 10¢–a–litre drop ongoing until the end of January, and then five cents a litre until the end of March of next year. I know the member has also been a strong advocate for the tax break for all Canadians, some 20 million people. I wonder if he can provide his thoughts in regard to why it is so important at a time of unaffordability that we be there for Canadians.

Sukh Dhaliwal, Surrey Newton

Liberal
“I want the House to pass this bill to lower gas taxes. People in my riding drive to work, drop their kids off at day care, and run small businesses. They need cheaper gas.”
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Official Hansard

Madam Speaker, the hon. member for Winnipeg North has been a great friend and a great ally, and is always passionate when it comes to helping Canadians, including with 10¢ a litre on gasoline. I am a small business person. My business has vehicles because it is a land surveying company, and they use gasoline. I know hundreds and hundreds of paid people in my riding who use vehicles. Because my community is a bedroom community, they commute to work. They drop off their kids at day care. They need this help. This help is badly needed. It is going to help people, whether a small business person, a plumber, an electrician, a roofer or generally a Canadian who is looking for an affordable price for gas. On the other hand, there is the cutting of taxes for 22 million people. If we cut the tax by 1%, that is going to help them. They do appreciate and believe in the Prime Minister, and they believe in—

Michael Guglielmin, Vaughan—Woodbridge

Conservative
“I support this bill to keep pausing the fuel tax, but it does not go far enough. Life is too expensive for families, seniors, and small businesses. The government should remove all federal taxes on gas and diesel until July 2027 to save people more money.”
Official Hansard

Madam Speaker, it is always a pleasure to rise on behalf of the great people of the riding of Vaughan—Woodbridge. Canadians are struggling with the cost of living, and every single dollar matters, whether it be the parent filling up the family car before taking the kids to school, the tradesperson driving from job site to job site or the truck driver delivering food that ends up in our grocery stores. It certainly matters to the families in my riding of Vaughan—Woodbridge who are trying to make their paycheques stretch a little further each month. When I am at the east or west Woodbridge seniors clubs, the topic on everyone’s mind is how expensive life has gotten. For seniors, OAS and CPP do not go far enough. As for their grandkids, they feel that life is unaffordable and they will never be able to get ahead. It has been a year and a half since the Liberals were elected, and many are wondering how life has changed, how their lives have been made better. Yes, there are many global challenges that further complicate the problem, including the unjustified tariffs on our country, but many of the affordability concerns that Canadians are talking about predate this, and many of them are self-inflicted after almost 11 years now of bad government policy. There have been many announcements from the government, but we have seen very little progress. We see a government that is great at marketing its announcements but very little action. I would submit that things have actually gotten worse. The Liberals in the last year and a half have doubled the deficit and added hundreds of billions of dollars of new spending above the reckless levels inherited from the previous disastrous Trudeau Liberal government. One need look no further than the fact that we are now at the highest levels of government spending as a share of the economy since 1996 and have the biggest deficit outside of COVID in Canadian history. As a member of His Majesty’s loyal opposition, it is my job to hold the government accountable, question its expenditures and, yes, agree where there is room to agree. Just yesterday, when I asked a question in the House on the cost of retaliatory tariffs for Canadians, the government House leader proceeded to act as if such a question was part of a “‘blame Canada’ pattern”. I mean, how dare the Conservative opposition ask a simple question of basic economics to the Liberal government? We know transparency is not the Liberals’ strong suit. Following months of Conservative calls to extend gas tax relief for Canadians, the federal government decided to suspend the excise tax on gasoline and diesel in April, providing relief of 10¢ per litre on gasoline and four cents per litre on diesel. This suspension was originally scheduled to expire after Labour Day, but the government has now introduced legislation to extend it to January 2027. For Canadians who depend on their vehicles, and for businesses that depend on affordable transportation, the extension provides additional relief. It also raises an important question about what happens when that relief expires. Conservatives have constantly called for greater relief, and we believe the government should go even further by removing all federal taxes on gasoline and diesel until at least Canada Day 2027, which would save Canadians 25¢ per litre and provide an annual savings of $1,200 per family. I will also note that when Conservatives proposed to remove the federal excise tax on fuel for a longer time, Liberals downplayed it as having little to no impact on affordability for Canadians. I would also like to say that I will be splitting my time with the member for Mégantic—L’Érable—Lotbinière. How much could that wasted time and delay have saved Canadians? Let us think about it. We had a motion in this very House on this exact issue that the Liberals voted against several months prior. We have seen this before. The Liberals backtracked on their previous narrative regarding their tax policy. Exhibit A is the consumer carbon tax. As the hon. member for Saanich—Gulf Islands suggested earlier today, the Liberals are plagiarizing parts of our platform for their own, and it is no surprise that they are because that is exactly what Canadians need to address issues of affordability and the cost of living. Fuel taxes drive up costs for Canadians, and the impact extends well beyond the gas station. When fuel costs rise, the consequences are felt throughout the economy, and ultimately, those costs find their ways into the wallets of every single Canadian. Let us consider what happens before a family even walks into a grocery store. A farmer needs fuel to operate equipment and produce food. A trucking company needs diesel to transport that food. A distributor needs to move it to a warehouse, and another truck delivers it to a grocery store. Every stage involves transportation, and every single stage has costs. When fuel becomes more expensive, businesses face pressure to absorb these costs, reduce spending elsewhere or pass some of those expenditures along to the customers. That is why Conservatives have been calling for the government to go further. Lower fuel costs can help families at the pump while easing some of the pressures facing the businesses that produce and deliver the goods Canadians rely on. As someone who spent 20 years in industry, I understand the importance of getting materials from a supplier to a factory and the finished product from a factory to a customer. The manufacturing transportation costs are part of the price of doing business. It is a top-three line item on most financial statements. A company might be doing everything it can to improve productivity, control expenses and remain competitive, but it still needs to purchase fuel to move its products. When those costs rise, it can put additional pressure on the company’s margins and ability to compete. This is particularly relevant today when Canadian manufacturers are already navigating significant uncertainty in their trade relationship with the largest market, the United States. For businesses in Vaughan—Woodbridge and across Ontario, transportation costs are one of several factors that determine whether they can offer competitive prices, attract orders and maintain employment. Fuel tax relief can help with one of those pressures. The Canadian Federation of Independent Business has also reported significant financial pressure among small businesses. Among those who considered it a bad time to start a business, 88% cited high costs, 65% pointed at taxes and 53% identified government red tape. These are Canadians who invest their savings, take risks and employ people in our communities. When their costs rise, it can become harder to expand, invest in new equipment, hire workers or offer competitive pricing. Conservatives also called for reforms to federal permitting, taxation and regulation to address Canada’s broader competitive challenges. For example, we have learned that there are over 100,000 different regulations on the manufacturing sector alone. The decisions Parliament makes on fuel taxes are a part of that discussion. I want to turn to the experience of younger Canadians. The finance minister claimed his government is fighting every day for young people and their generation, yet a recent RBC report highlights that more than half of Canadian parents are financially supporting their adult children, giving an average of $6,100 just last year. Young Canadians should not need the bank of mom and dad to afford groceries and rent. A significant portion of Canada’s brain drain is because of the cost of living for our young people. Conservatives have raised concerns about the scale of federal spending, the deficit and the long-term costs of servicing public debt. Those concerns deserve careful consideration when the government is asking Canadians to accept that further fuel tax relief cannot be sustained beyond next spring. Bill C-38 also presents an opportunity to consider the broader fuel tax proposal. Conservatives have called for removing all federal taxes on gasoline and diesel until at least Canada Day 2027, including the GST on fuel, while also proposing changes to the clean fuel regulations and the permanent elimination of the industrial carbon tax. The government has estimated that extending the existing tax suspension will provide an additional $2.9 billion in tax relief. That makes the scheduled return of the tax particularly important to examine. If the government recognizes that fuel tax relief can help Canadians and Canadian businesses manage rising costs, Parliament should understand why the relief is scheduled to end on April 1. The families I represent in Vaughan—Woodbridge are looking for greater financial security. They want to know that their children have opportunities to purchase a home, that their businesses can remain competitive and that their paycheques will cover the costs of everyday life.

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

Liberal

Linked statement

“I am glad the Conservatives worked with us so we can pass this bill today. It helps Canadians afford the fuel they need. I want the Senate to pass it quickly too, and I ask the member to explain why it must pass both houses.”
Official Hansard

Madam Speaker, it has been a fairly good and healthy debate today on an important piece of legislation. The government recognizes the importance of collaboration. We have had collaboration to the degree that we are going to pass this bill today. I want to recognize that in the hope that the Senate of Canada recognizes that the House of Commons has a desire to get this bill passed. Ultimately, it is all about Canadians and providing the type of support they need in dealing with the issue of affordability. I know it would make a huge difference for Canadians, and that is why I am glad to see the Conservative Party join with us in getting the legislation through today. Can the member comment on why it is important that we see the bill ultimately pass, both here and in the Senate?

Michael Guglielmin, Vaughan—Woodbridge

Conservative
“Life is too expensive for Canadians right now. I want the government to extend this fuel tax cut even longer and work with us on other ways to lower costs. We need lower taxes and fewer business rules so Canada can compete with the United States.”
Official Hansard

Madam Speaker, we are facing a major affordability crisis, and in that same spirit of collaboration, we would like to see the government extend this fuel tax break even further. We would also like to see it take some of our other ideas on affordability. We have a serious problem with regulations that have a stranglehold on the Canadian economy. We need serious tax reform. I believe it was a Liberal prime minister, Sir Wilfrid Laurier, who once said that if Canada wants to be competitive with the United States, the largest market, it is not going to be a market competition. We have to have a more competitive regulatory system and a much more competitive tax system. I would like to see the Liberals collaborate with us on those things to increase affordability for Canadians.

Anna Roberts, King—Vaughan

Conservative
“Seniors in our community are struggling to pay for rent, groceries, and taxes, and more of them are using food banks. The Liberals claim they solved this problem, but they left seniors behind. I want the member to explain how he will answer to the seniors we represent.”
Official Hansard

Madam Speaker, the hon. member for Vaughan—Woodbridge is doing a fantastic job. I want to ask him how he would explain to the 22 seniors clubs in our jurisdiction that 8.3% of food bank clients are seniors and that number is growing. We hear those concerns every single time we attend seniors events. They are struggling with taxes, rent and buying groceries. We know the affordability crisis is real in this country, and yet the Liberals claim they have solved the affordability crisis. How will the member explain to the seniors we represent in our community that the Liberals did not take them into consideration?

Michael Guglielmin, Vaughan—Woodbridge

Conservative
“The Liberals have spent 11 years hurting Canada's economy, and now they take credit for programs that try to fix the damage they caused. We need them to work with us to fix the tax system, build energy projects, and lower taxes for people and businesses.”
Official Hansard

Madam Speaker, we see a theme here. The Liberal government spends 11 years recklessly destroying the Canadian economy and then wants to take credit for programs that it institutes to apparently help subsidize the people in the economy that it destroyed. To answer the member’s question, we need to see the spirit of collaboration on serious things like tax reform, on things that will help us build up our leverage in trade negotiations and that will help promote competitiveness. We would like to see the Liberals actually start building energy infrastructure so we can take advantage of this unique opportunity to capitalize on our natural resources, so we can lower business and personal tax for people and really target key industries and see them thrive. We have everything we need in this country. We just need the Liberals onside to promote these ideas.

Gord Johns, Courtenay—Alberni

NDP
“Canadians need lower fuel costs, but this bill adds over $5 billion to our debt for future generations to pay. Oil and gas companies are making record profits right now. They should pay an extra profits tax to help cover these costs instead.”
  • A repeated line

    “People are struggling to make ends meet.”

    Said 13 times by 10 members since April 27.

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Official Hansard

Madam Speaker, again, we all agree in this House that we need to take pressure off everyday Canadians. People are struggling to make ends meet. This bill, in its intention, is a good idea, which is to remove taxes so people pay less at a time when they need help. Where I have a problem, and I am surprised the Conservatives do not join me, is that all we are doing is taking this debt of over $5 billion and punting it down the road for future generations to pick up the tab. They are the ones who are going to end up paying this, because this is going on our debt. Meanwhile, big oil and gas are posting obscene profits. We have never seen profits like this. This war is creating extreme wealth for big oil and gas and investors. I would like to know if my colleague has talked to his constituents. He should ask them if they believe that big oil and gas companies should chip in a bit more while they have these winning profits. I know from my experience in talking to my constituents that every single one of them I talk to, every one of them, thinks that the big oil and gas companies should pay an excess profit tax.

Michael Guglielmin, Vaughan—Woodbridge

Conservative
“Canada has a lot of natural resources. Canadians want the government to act fast to build infrastructure and export these resources, just as it promised.”
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Official Hansard

Madam Speaker, the constituents from Vaughan—Woodbridge and, frankly, Canadians right across this entire country recognize the unique position that Canada is in with our large natural resources that we sit upon. What they would like to see the government do is move at speeds not seen before, like it promised in the last election, so we can develop the infrastructure, export our natural resources and build up this country for everybody.

Luc Berthold, Mégantic—L'Érable—Lotbinière

Conservative
“I support this bill because it pauses the fuel tax, but it does not go far enough. High gas prices make life and food too expensive, especially in rural areas where people must drive. We should cut all federal taxes on fuel until July 2027 to save families over $1,000 a year.”
Official Hansard

Madam Speaker, I commend my colleague for his excellent speech. I want to address those watching this debate closely at home, because people all across Canada are feeling the strain of the cost of living. Families are working, paying their bills and doing what they have always done, but unfortunately, many of them are finding that they have less and less money left in their pockets at the end of the month. A recent study showed that people have less than $100 left in their pockets at the end of the month to make ends meet. One hundred dollars is not a lot. Quebeckers are also facing this challenge. They see it at the grocery store, in the cost of housing and insurance and even every time they have to stop at the gas station to fill up. Behind the numbers we are discussing here in Ottawa, the statistics and examples from overseas, lies a very different challenge for families. Families have to make choices, put off purchases because they cannot afford them or cut back just to be able to pay for essentials, such as heating, groceries or school supplies. In short, they have to make tough choices. That is why it is time to get back to basics in Canada. It is time to save Canadians money by cutting the taxes and government spending that are making absolutely everything more expensive, as I mentioned earlier. It is time to protect Canadians’ jobs and to keep Canadians safe. It is not right that people in Canada have to think twice before going out at night because they do not feel safe. Why is that? It is because, over the past few years, the government has implemented reforms that make it easier to put criminals back on the streets than in prison. What I just said is no joke. It is the truth. It is also time to fix our immigration system and put Canada first. We, the Conservatives, have identified nearly $150 billion in potential savings in government spending. That is $10,000 in savings per family in taxes. When we talk about saving Canadians money, we need to look at the expenses they have to cover every week. Gas and fuel are part of that. For millions of Canadians, especially Quebeckers who live in rural areas, filling up is not an expense they can simply decide to put off until later. In my riding of Mégantic—L’Érable—Lotbinière, a car is a necessity, not a luxury. People need a car to get to work, drive the kids to school and activities, go grocery shopping and get to medical appointments. In short, they need a car to get everywhere they need to go. There are no subway stops every block or buses that come by every 10 minutes in our municipalities. When we look at the Régie de l’énergie du Québec’s data on the price of gas, that has a direct effect on our communities. If we use the published gas prices to calculate how much it will cost to fill up a 60-litre tank, it quickly adds up to over a hundred dollars per fill-up. That is a recurring weekly expense for many workers in Mégantic—L’Érable—Lotbinière and all regions of Quebec. Drivers in Estrie called into the radio station 107.7 to say that they are now cutting back on their trips to save on gas so they can get around when it is truly essential. When people start changing their travel habits just to save on gas they cannot afford, it shows just how much the price at the pump is eating into their budgets. As I said, this is not limited to the Estrie region. On September 17, the price of gas was $2.80 per litre at some gas stations in Montreal. The provincial average was $1.96 per litre. In some regions, the situation is even worse. In Radisson, in northern Quebec, the price of gas recently reached $2.37 per litre. This shows how much of a burden fuel costs can be for families who have no choice but to travel by car. When we talk about affordability, we are talking about the ability of Quebec and Canadian families to pay for essential expenses. Right now, Canadians are benefiting from a pause on the federal fuel excise tax. Bill C‑38, which we are discussing today, will extend the full suspension until January 31, 2027. A rate equal to 50% of the regular excise tax rate will be in effect during February and March, before the regular rate resumes in the spring. What does that mean in practical terms? It means that the federal tax on gas and diesel will be suspended, but that as of February 1, it will go back up to 50% of the regular rate. Then, on April 1, according to today’s announcement, the price of gas will not decrease but rather will go back up again. The regular rates will be reinstated. The relief that Canadians are receiving now is already supposed to decrease in February and March of next year. For a family that needs to gas up regularly, sometimes for two vehicles, these costs add up. We must not forget that the extension was announced after months of Conservative calls for the government to keep the fuel tax relief going. We introduced two opposition motions in the House asking for all fuel taxes to be suspended, meaning the clean fuel tax, the GST and the excise tax, not just until Labour Day, but until July 1 next year. Both times, the Conservatives were the only ones to vote in favour of these motions. The Liberals voted no, the Bloc Québécois voted no and the NDP voted no. Under pressure, the government came to realize that it would be foolish to kick off the parliamentary session by raising the price of gas by 10¢ per litre for everyone. People would associate the price hike with the Liberals, so the Liberals decided to pick a quieter time, over the winter, when people will not be paying much attention to what is going on. However, winter is when people need their vehicles the most. Riding a bike is not an option; there are no other options. People need their vehicles even more. Today, the Liberals are saying that on February 1, when it will be -40°C out, gas prices are going to rise by five cents a litre. That is the proposal before us today. In our opinion, we need to go further. If lowering fuel taxes lets families and workers keep more of their own money, that is the direction we should take. Families will still be paying their bills in February. They will still be going places. Workers in Thetford Mines will still be going to work. Families in Lac‑Mégantic will still have to drive their kids to their activities. Farmers in Lotbinière will still have to keep farming. Truckers will still have to keep transporting goods. Expenses never take a holiday. As the Conservatives see it, an extension of a few months is good, but not good enough. Bill C-38 offers some relief, but it is only a half measure. What we need is to pause all gas taxes until July 1, 2027, and then see how the economy is doing and whether enough time has passed for the market to normalize. If the Liberals’ projects were actually moving as quickly as they claim they are, we could be producing more oil here in Canada. That would help lower gas prices for everyone, but unfortunately, we hear a lot of talk from that side of the House, but we see very little action when it comes to actually delivering anything. Our proposal would result in savings of 25¢ per litre, or more than $1,000 a year for a Canadian family. On a 60-litre fill-up, as I said earlier, that means $15 in savings. That is right, $15 on a single fill-up. Multiply that by the 52 weeks in a year, since drivers usually fill up at least once a week, and we get savings of over $1,000 a year, which could make a real difference in a family’s budget. As we know, Bill C‑38 deals only with the federal government. When we say we need to go a little further, it is because we can take action on the things in our control. We do control the three taxes I mentioned, and if the Liberal government wanted to, it could provide relief to families for a little longer. Rising gas prices also have a very negative impact. Every time the price of gas and diesel goes up, the price of our food goes up. Marc Cadieux, president of the Association du camionnage du Québec, was very clear on this, saying that fuel is the second-highest cost for carriers and that this increase is ultimately passed on to consumers. There is a dual impact. The government is going to raise taxes for everyone, and then that tax increase will once again be passed on to everyone. At the end of the day, who pays? It is always the consumer who pays. In closing, I want to add one more thing. We need to cut taxes even further to ease the pressure on Canadians’ wallets. In Quebec’s regions, filling up a gas tank is not optional, and neither is paying taxes. However, when we can control that and help people, we must do so. That is the decision that needs to be made. I hope that the government will realize that some day.

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

Liberal
“I support cutting fuel taxes to make life more affordable. All parties have had good ideas about this, including the NDP in Manitoba, the Conservatives, and our Prime Minister. This bill extends the cut on fuel taxes, and we should all share credit for it.”
Official Hansard

Madam Speaker, on the idea of having the excise tax taken off gasoline, I find it interesting that a couple of years ago, when the NDP formed government with Wab Kinew, the first initiative was to take the excise tax off gas in the province of Manitoba. Yes, the Conservatives have also talked about it, but so has Canada’s new Prime Minister, to the degree that his very first action in dealing with the issue of affordability was to get rid of the carbon tax. In Manitoba, that meant 17¢ a litre, permanently. In the economic spring budget, it was 10¢ a litre, and this legislation would extend that. These are all positive initiatives. I like to think I also had something to do with that tax break by advocating within our caucus, but I think a lot of it had to do with the Prime Minister’s determination to deal with the affordability issue. Would the member not agree that maybe we should be sharing the good idea?

Luc Berthold, Mégantic—L'Érable—Lotbinière

Conservative
“The Liberals criticized us for years for wanting to get rid of the carbon tax. Now they support ending it and cutting fuel taxes too. These were Conservative ideas first. I am glad if they adopt our plans to save Canadians money, but they should admit where the ideas came from.”
  • Reply to a debate question

    Signal 28 of 100

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

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Official Hansard

Madam Speaker, I would like to thank my colleague, who never fails to surprise us when he takes the floor. He is trying to give the credit for our ideas, the ones that were proposed and brought forward here by the Conservatives, to the new Prime Minister, who is part of the same government as the former Liberal government. We spent years saying that the federal carbon tax should be abolished. That very same MP criticized us for wanting that. He said we were going to destroy the planet. What has happened? Now there is a new leader who has suddenly become an advocate of abolishing the carbon tax. Unbelievable. Now, that party is embracing the idea of reducing the excise tax on gasoline. Frankly, the Liberals are welcome to adopt plenty more ideas like that if they save Canadians money. I have no problem with them implementing our policies, but they should let us know every now and then when they are going to take ideas from our playbook. Canadians know that there is only one party looking after their wallets, and that is the Conservative Party.

Gord Johns, Courtenay—Alberni

NDP
“Wildfires and climate change are making life more expensive, including for insurance. People need help with these costs. Oil and gas companies are making record profits. Does my colleague agree that these companies should chip in to help Canadians and invest in clean energy?”
  • Question or comment in debate

    Relevance 27 of 100

    Only 8% of this question directly addressed the speech or the topic being debated.

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Official Hansard

Madam Speaker, this summer we had another catastrophic wildfire season right across the country. Last year, it was in my riding. Three years ago, it was in my riding as well. We know the climate crisis is real. It is costing Canadians every day, not just when their communities get hit, but through their home insurance and business insurance. We are seeing costs skyrocketing. We know people need help. They need relief. Where do we go for that relief? Big oil and gas is posting record profits. It is an opportunity for them to chip in and help give relief to Canadians. That could be at the pump right now through a bill like this, but it could also be through helping to take pressure off people when they are trying to access home and business insurance. Does my colleague not agree that big oil and gas should be chipping in while it is winning, while it is posting record profits, so it can support Canadians, invest in clean energy and invest in supporting people?

Luc Berthold, Mégantic—L'Érable—Lotbinière

Conservative
“I want the government to pause all taxes on gas until July 1, 2027. I am not defending big oil companies, but cutting these taxes is the fastest way to save Canadians money.”
Official Hansard

Madam Speaker, I will not defend the big oil and gas companies. I come from a region that was a victim of the gas cartel. Companies have to reimburse a lot of people in my riding because they were fixing gas prices together. I am not here to make their court case, but I must say that, what we can control right now, immediately, is the tax on gas to provide some relief to Canadians. I am asking the government again to please suspend all taxes on gas until July, 1 2027. Let us save money for Canadians.

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