Canadian Fuel Affordability Act

Bill C-38, Canadian Fuel Affordability Act · Report stage · 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)

164 statements

Sukhman Gill, Abbotsford—South Langley

Conservative
“I agree with my colleague. Truck drivers in our area are struggling with high diesel prices. I want him to explain how a Conservative government would give Canadians immediate relief from fuel costs.”
Official Hansard

Madam Speaker, my hon. colleague from Langley Township—Fraser Heights delivered an incredible speech and touched on the main points that Canadians are facing today. I know that the hon. member has also dealt with the truck driver members in our community, who did a convoy from Abbotsford all the way down to Vancouver. They went through the member’s riding. They were struggling to deal with high diesel prices, as the motion dealt with. I would like to ask my hon. colleague how we would give immediate relief to Canadians and what we would have done differently as a Conservative government if we were given the opportunity.

Tako Van Popta, Langley Township—Fraser Heights

Conservative
“High fuel prices hurt British Columbia businesses, especially truckers. Conservatives have always said we should get rid of the carbon tax to help the economy. The Liberals are finally agreeing with us that we need to lower these costs.”
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Official Hansard

Madam Speaker, that is a great question. We have neighbouring ridings and we are way out at the other end of the country. Transportation is a very big part of what keeps British Columbia and the Vancouver area connected with the rest of Canada. Fuel prices, I think, probably touch us more than anything. I share the frustration that truckers have about high fuel prices that just seem out of control. Their businesses become very difficult to operate. It is not just truckers. It is almost every industry, but it for sure impacts them. What would we do differently? We advocated for cutting the carbon tax because we said it was not helpful for the Canadian economy. I am very happy that the Liberals have finally acknowledged that we had it right all along and that they are now supporting the concept of lowering prices for everybody through reducing or getting rid of the carbon tax.

John-Paul Danko, Hamilton West—Ancaster—Dundas

Liberal
“I agree that Canada needs to sell oil and gas to new global markets instead of selling it cheap to the United States. We expanded the Trans Mountain pipeline and are increasing our gas exports to help do that. I want the member to share his thoughts on these projects.”
Official Hansard

Madam Speaker, I appreciate the member opposite’s knowledge of the Canadian oil industry. I think he made a couple of fairly poignant good points. Right now, we are seeing record high production of oil and gas in Alberta. I think his main point about diversifying the market and not selling to the United States at a discount and working to sell to the global markets is right on. There is the Trans Mountain pipeline and the expansion that is planned to increase capacity there. Hopefully he will acknowledge that it is in the right direction. There is also the major expansion of liquefied natural gas exports that are going to the west coast to then further diversify that Canadian energy market. I would like his comment on that, please.

Tako Van Popta, Langley Township—Fraser Heights

Conservative
“We would invest in energy projects and find new markets for our fuel. Liquefied natural gas is a great idea. Prime Minister Trudeau once said there was no business case for it, but now we are building it. The Liberals are finally realizing that energy projects help our economy.”
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Official Hansard

Madam Speaker, my colleague probably anticipates the answer. Of course we would invest in energy infrastructure. Absolutely we would invest in diversifying the market. Liquefied natural gas is an excellent idea. I cannot help but reflect on what former prime minister Trudeau said when the German chancellor came to him and said they wanted to buy liquefied natural gas, and he said there was no business case to be made for liquefied natural gas. Today we are building it. I thank the Liberals for finally getting on board and understanding that energy infrastructure is important for our economy.

Rhonda Kirkland, Oshawa

Conservative
“I support this bill because it temporarily lowers fuel taxes. But it does not go far enough. Life is too expensive right now, and people in my riding are struggling to afford food and gas. The government should remove all federal taxes on gasoline and diesel until summer 2027, and it should permanently cancel the carbon tax on industry.”
  • A repeated line

    “Canada is officially in an affordability crisis.”

    Said 8 times by 7 members since October 8.

    Every time it was said
Official Hansard

Madam Speaker, it is an honour to rise this evening on behalf of Oshawa to speak to Bill C-38, which is legislation that would extend temporary relief from federal fuel taxes at a time when Canadians are struggling to afford the basic necessities of life. Earlier today, the Liberal government voted against our Conservative motion to recognize two simple things: The Liberals have been in government for 11 years, and Canada is in an affordability crisis. Every opposition party voted in favour of acknowledging what Canadians are actually experiencing every day, yet the Liberals said, “No, that’s not the case.” Everyone knows that the first step to fixing a problem is admitting that there is one, and the government cannot even bring itself to acknowledge the affordability crisis facing Canadian families. What makes today’s earlier vote particularly remarkable is that tonight we are now debating legislation introduced by the very same government to extend temporary relief from federal fuel taxes, because Canadians cannot afford higher costs. The reality is that the government knows Canadians are struggling, and after months of persistent Conservative pressure, the Liberals have finally been forced to back down from their planned increase of fuel taxes. I represent Oshawa, which I like to mention as often as I can, because we are a hard-working city built by generations of auto workers, manufacturers, small business owners and families who have contributed so much to Canada’s greater economy. These are Canadians who work hard and pay their taxes, and they expect that their paycheques will be enough to provide for themselves and their families. Yet, increasingly, they are finding that no matter how hard they work, they simply cannot afford life. When the price of gasoline rises, those families in Oshawa do not suddenly have the option of driving less. They need to get to work, pick up their children and purchase groceries, except now they are paying more to do those very same things. The impact of higher fuel costs does not stop, of course, at the gas pump. It is common sense that when it costs more to transport food, deliver goods, construct homes and operate businesses, those additional expenses are ultimately passed on to consumers. Families end up paying more at the grocery store, more for household essentials and more for services they rely on every day. Even the Liberals’ own legislation acknowledges that trucking, agriculture, housing, construction and delivery sectors benefit from fuel tax relief, which raises an important question. If the government now recognizes that lower fuel taxes help make life more affordable, why has it taken months and months of Conservative pressure to get it to act, and that is if we can even call it action? Conservatives care, yet Liberals cause inflation and an affordability crisis, then throw out breadcrumbs of half measures and gaslight Canadians by saying things like “Affordability is the best it has been in...a decade.” We remember when the Prime Minister said that. In Oshawa, we understand how important affordable fuel and transportation are to our local economy. Our community is home to General Motors Canada, automotive suppliers, skilled tradespeople and thousands of workers whose livelihoods depend on a strong manufacturing sector. Whether it is an auto worker going to the plant for his shift or a tradesperson travelling between job sites across the Durham region, a small business owner making deliveries or a truck driver transporting goods across Highway 401, these Canadians rely on affordable fuel to earn a living and support their families. For small business owners already struggling with rising operating expenses, higher fuel costs mean less money to invest in their businesses, hire employees or keep prices affordable for customers. For working families, it means even more of their hard-earned money disappearing before they have paid their rent, purchased groceries or covered their monthly bills. The figures are clear. They show that gasoline prices have increased by 25.7%, while overall energy costs have risen by 16.6%, contributing to higher transportation costs and adding further pressure to household budgets. However, Canadians do not need to see those very detailed statistics to understand the consequences of rising costs because they see them every single day in their own communities. We all can. I recently spoke about the extraordinary work being done by Simcoe Hall Settlement House in Oshawa, where Tiffany Kift shared with me the heartbreaking reality facing vulnerable families in our community. Simcoe Hall is now serving more than 3,600 people every month and has been forced to limit food bank visits to 70 households per day. Because the organization simply does not have the resources to help everyone, it is forced to turn people away every single day. Among those seeking assistance are seniors, young adults, parents and even families with two incomes who cannot afford to put food on the table. One senior, Sue, is 83 and is still working part-time to help supplement her fixed income. She told me last week that she walks down the aisle like she did in war times. It reminds her of that. She looks at the meat, checking every price, and says, “Oh, I can’t do that. No, I can’t buy that. I can’t even afford pork chops. I guess we won’t have any meat this week.” While demand for food assistance continues to grow, donations are declining at Simcoe Hall. It is down approximately 33% in financial donations, and community food drives are also bringing in only a third of what it would normally expect. When more Canadians need help while fewer Canadians can afford to give, we have a serious affordability problem, regardless of whether the Liberals are willing to acknowledge it. Honestly, I do not know how they live with themselves. This brings me back to Bill C-38. The legislation would extend the temporary suspension of federal fuel excise taxes until January 31, 2027, before restoring those taxes at half the regular rates for February and March. Conservatives obviously welcome any measure that helps Canadians keep more of their hard-earned money. That is the clear distinction. We support a measure that helps Canadians keep more of their hard-earned money, and we are proud that the persistent pressure from the Conservatives helped force the Liberal government to delay its planned fuel tax increase. However, a temporary extension is not enough. The government is effectively telling Canadians that they can have some relief today, but they should prepare to pay more again in the coming months. What exactly does the government expect to change between now and February? Will groceries suddenly become affordable? Will families in Oshawa suddenly have hundreds of extra dollars left over at the end of every month? Will small businesses no longer be struggling with the cost of keeping their doors open? Of course not, and that is precisely why Conservatives have called for more meaningful and lasting relief. Our Conservative economic action plan calls on the government to remove all federal taxes on gasoline and diesel at least until Canada Day 2027. That is not only the federal excise tax, but also the GST on fuel and the costs associated with the clean fuel regulations, all while permanently cancelling the industrial carbon tax. Together, these measures would save Canadians 25¢ per litre at the pump and provide as much as $1,000 in savings for the average family. They get to keep more money in their pockets. Obviously, we support a measure where Canadians can keep their money, not where we take it first and then give them a pittance back. Canadians should not have to depend on food banks, government rebates or temporary tax relief simply to afford the basic necessities of life. They should be able to work hard, earn a decent living and support their families. The Liberals today said that we are not in an affordability crisis. They would not admit it; there is nothing to see here. That sounds like every narcissist I have ever known gaslighting. Conservatives will continue to fight for lower taxes, more affordable fuel and food, good-paying Canadian jobs and an economy where hard-working families can get ahead. We welcome the relief contained in Bill C-38, but Canadians deserve more than another temporary Liberal half measure. They deserve meaningful, lasting relief that makes a real difference in their everyday lives. A government that refuses to admit there is an affordability crisis, as the government did today, cannot be trusted to solve it.

John-Paul Danko, Hamilton West—Ancaster—Dundas

Liberal

Linked statement

“This bill lowers fuel taxes to give people quick help. The government is also investing in public transit, rebates for electric cars, and moving cargo by rail and ship to cut travel costs. I want the member to agree that we need to keep spending money on these projects.”
Official Hansard

Mr. Speaker, I am continuously surprised that members opposite focus on daily partisan sniping and continuously miss the big picture. In this case, we are talking about excise tax relief, which is immediate affordability relief, but in the big picture, this government is taking very large steps to reduce the cost of transportation, which is what we are talking about mainly when we talk about fuel prices. For example, there are investments in transit and EV rebates. The member is from Oshawa. I represent Hamilton, and the Hamilton-Oshawa Port Authority is making major investments in getting trucks off Highway 401 and onto rail and ships. Shipping traffic is five times more cost-effective than truck. Does the member opposite agree that we should continue to invest in infrastructure beyond today’s issue?

Rhonda Kirkland, Oshawa

Conservative
“I support this bill, even though it does not go far enough. Real help means letting Canadians keep their own money, not taking it in taxes and handing back a small fraction.”
Official Hansard

Mr. Speaker, obviously I support solid investments, but the fact of the matter is this, and I will say it again. We are constantly gaslighted that Canadians are doing just fine and that there is not an affordability crisis. We are told that we do not support measures that help Canadians because we vote against the Liberals’ so-called supports and programs, when the truth of the matter is that what helps Canadians is allowing them to keep their own money in their pockets in the first place. That is why we will support this half measure. It is not enough, but it is something that would keep money in Canadians’ pockets to begin with, rather than taking their money, giving them a pittance back and saying, “Are we not wonderful?”

Sukhman Gill, Abbotsford—South Langley

Conservative
“I want to ask the member what more the government should have done to lower fuel costs. Truck drivers across the country are protesting because diesel prices are too high.”
Official Hansard

Mr. Speaker, I want to start by thanking the hon. member for Oshawa for her great protest against the Liberal government. I know she is doing a fantastic job on the public safety committee as well, making sure she fights for the safety of Canadians. As she sees the votes being cast on both sides of the House, what more could the Liberal government have done to make sure to bring more relief to Canadians at this point, especially when we see convoys happening across the country with truck drivers requesting relief at the pumps, especially for diesel prices?

Rhonda Kirkland, Oshawa

Conservative
“Conservatives have a plan to bring fast relief by permanently removing the industrial carbon tax. The Liberals only lowered the consumer carbon tax to zero because we pressured them to do it, and they take credit for it. They did not cancel it completely, and it could come back.”
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Official Hansard

Mr. Speaker, Conservatives have been very clear. We have an economic action plan that would bring relief immediately. One of the major parts of that plan is permanently removing the industrial carbon tax. It is funny to watch the Liberals jump up and down and say how excited and wonderful they are because they cancelled the consumer carbon tax. Meanwhile, the same group of people jumped up and down asking how we dared to suggest that they cancel the consumer carbon tax. They did it because our pressure was effective, and now they are asking, “Are we not wonderful?” It is a crazy world we live in right now in Canada where the Liberals take credit for things that Conservatives have said we must do. Hopefully they will do the same thing with the industrial carbon tax one day, but we should never forget that they did not actually cancel the consumer carbon tax. I will just wait. They have only reduced it to zero, as far as I know. They have not cancelled it completely. I suspect we will see a version of it, and we already have in some ways at the gas pump.

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

Liberal
“The Conservatives claim cutting fuel taxes was their idea, but the Manitoba premier did it years ago. Still, I am glad the Conservatives will vote for this bill. It will help Canadians afford what they need.”
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Official Hansard

Mr. Speaker, I find it somewhat humorous that the Conservatives try to say that this is their idea. They are jumping up and down, trying to claim that it is their idea. I made reference earlier to Wab Kinew, the Premier of Manitoba, who did it a couple of years ago. I guess he might be happy to say that it was his idea and that the Conservatives stole his idea. The bottom line is that I am grateful the Conservatives have decided to vote in favour of this legislation. It is an affordability measure that would help Canadians. I think we can agree on that much, or at least I would hope so.

Rhonda Kirkland, Oshawa

Conservative
“I want us to vote for this bill. It is only a small step, but it keeps money in Canadians' pockets. The Liberals made life unaffordable, and their other programs do not fix the problem.”
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Official Hansard

Mr. Speaker, I agree. It is an affordability measure. It is a half measure and a small measure, but it is an affordability measure. I will repeat this, because it is very important. We can vote for this small measure because it would keep money in Canadians’ pockets. It is not like the programs and fake supports that keep getting touted as the solutions, which really are just admissions of failure for the government. The Liberals have made life unaffordable. We cannot trust them to fix that. Conservatives know how to get it done. Canadians can trust us.

Sukhman Gill, Abbotsford—South Langley

Conservative
“I support this bill because any tax cut on fuel helps. But it does not go far enough. It only lowers the fuel tax for a few months and then brings it back. The government should adopt the Conservative plan instead. That plan would remove all federal taxes on gas and diesel until at least Canada Day 2027. High fuel prices hurt farmers, truckers, and families who are struggling to buy food.”
  • A repeated line

    “A recent poll found that 63% of Canadians oppose the Liberals bringing back the fuel excise tax.”

    Said 3 times by 3 members since September 22.

    Every time it was said
Official Hansard

Mr. Speaker, it is always a true honour to stand up in the House and speak on behalf of the members of Abbotsford—South Langley, who I represent dearly. I want to start by saying that I am splitting my time with the member for Long Range Mountains, who will be speaking after me. Today, I want to talk about something that is concerning for people not only in my riding of Abbotsford—South Langley but across the country: prices at the fuel pumps. As a Conservative team, we have gotten countless emails from across the nation asking for relief at the pumps. From the countless emails that I have gotten, I have seen that many residents in Abbotsford—South Langley are frustrated when filling their tanks. Earlier this year, after constant pressure from my colleagues and I, the Liberals announced half measures up to April 20, removing the excise tax on fuel. If it had been up to them, this September we would have resumed taxes to their full extent, but once again, my Conservative colleagues and I stood up in the House and pushed for relief for all Canadians. We delivered. Earlier this month, the Conservatives announced an emergency fuel relief plan aimed at removing all federal taxes on diesel until at least Canada Day 2027. Unlike the members across the aisle, my colleagues and I believe that Canadians deserve the full relief rather than a third of the relief for a third of the year. Now Bill C-38 has been introduced, and it would extend the fuel excise tax relief until January 31, 2027. The rates would then resume to 50% of the normal amount until March 31, 2027, and the full tax would resume from April 1, 2027, onwards. This bill would provide relief of up to 10¢ per litre on gasoline and four cents on diesel. Then the relief would shrink to half from February onwards, and Canadians would get no relief starting in April 2027. Let us compare that to what we were offering early this month: full tax relief on diesel, which would have provided up to 25¢ per litre in relief until July of next year. It is clear that our plan would have brought more relief to Canadians across the nation, yet the Liberals voted against our motion. The impact of high gas prices goes well beyond families filling up at local gas stations. I think about our farmers, truckers, contractors and small business owners. Fuel is not an option for these Canadians. It is the cost of doing business. A trucker cannot deliver goods without diesel. Our farmers cannot operate equipment without diesel. Contractors cannot carry lumber and tools to a job site on public transit. For millions of Canadians, driving is not a luxury. It is a necessity for how they earn a living and go about their day to day. Just recently, B.C. truck drivers protested against rising diesel prices in the Lower Mainland. The cost of high fuel prices is affecting their day-to-day lives. Many of them are essentially working for free to pay for the fuel that they put in their tanks. Simply extending the excise tax relief is not enough for those whose livelihoods depend on the cost of gas and diesel. The foundation of our society as a whole is built on those who go about their day-to-day jobs depending on gas and diesel. We have to make sure they are able to trust that the government has their backs when things become difficult for them, especially in times like right now, when they are feeling the most pressure at the tanks from province to province across the nation. The reality is that the majority of Canadians believe that the Liberals are providing half measures of relief when they could provide full measures of relief if they were to adopt our Conservative plan. That is the truth. A recent poll found that 63% of Canadians oppose the Prime Minister bringing back the fuel excise tax, including 43% who strongly oppose it. Those numbers also include 72% of seniors, 68% of women and 61% of those who are between the ages of 35 and 54. They are all opposed to a reintroduction of diesel and fuel taxes. Opposition crosses every region across the country: 71% in Manitoba and Saskatchewan; 64% in British Columbia, Alberta and Atlantic Canada; 62% in Ontario; and 60% in Quebec. Instead of listening to Canadians and their concerns, members across the aisle want them to celebrate the half-relief they would be given for only a couple of months. It is ridiculous. I want to emphasize that any relief given for any citizen is 100% good news, and we will 100% agree with any relief the opposing government gives. However, the thing is that it had an opportunity to make sure it could support measures for 100% relief, but the government opposed this. Especially when more relief could be provided, the cost of fuel directly impacts affordability across our country. High diesel costs lead to farmers’ having to pay more for growing the food, and to truckers’ having to pay more to haul that very food across the country. Then it inflates costs, which make it down to the everyday Canadian buying products at the grocery stores. I ask members across the floor a simple question: Are they able to look a single parent in the eye during this struggle and say they brought relief to them to help put meals on the dinner table? I bet that is a hard question for many members to answer, but I ask it on behalf of all Canadians. My colleagues and I acknowledge that there is an energy crisis happening and that it is out of our control. We fully agree with that. However, while these naturally increasing prices on fuel happen, we can take many measures to help Canadians at the pumps. The first step was to adopt the plan that my Conservative colleagues and I put forward two weeks ago. That is why we continue to call on the government to remove all federal taxes on gas and diesel until at least Canada Day 2027 to save Canadians 25¢ per litre at the pump, which would bring $1,000 of relief, savings, for the average Canadian and the average family. That includes seven cents per litre of clean fuel regulations, the GST and the permanent cancellation of the industrial carbon tax so Canadians are not forced to pay more for food and fuel. While the conversation is around government relief measures, I want to also highlight the developing projects around B.C. The B.C. NDP government signed an MOU with the federal government this summer, which was a clear path for the new southern route pipeline, another route alongside the existing energy corridor through the Sumas Prairie region that brought much relief to our community and our country. However, at the same time, we need to make sure that certain vulnerabilities are protected, such as with respect to the flooding that has happened year after year. Farmers have advocated about this countless times. In 2021, when we had the immense floods in the Sumas Prairie and Abbotsford communities, we wanted to make sure we could protect certain lands and bring adequate infrastructure development forward before we had certain pipelines instituted in that area. I bring this up so all Canadians know that while we provide relief and measures for the country, we have to make sure we understand what is important. First of all, that is infrastructure relief and making sure infrastructure is coordinated with the federal government to bring in new projects that benefit all Canadians across the nation but at the same time do not damage the integrity of the Lower Mainland communities. With the measures the government is bringing forward, we need to make sure we have tax relief not just for Canadians at the pumps but across the nation. These are farmers, people with jobs, members and Canadians asking for relief again and again. They want relief at the pumps. They want results from the government. Again and again, we see the failure of representation of what Canadians actually want. I hope the government takes into account what I have said today, and I hope to get some answers.

Guillaume Deschênes-Thériault, Madawaska—Restigouche

Liberal
“I am glad the member will support this bill to help people with living costs. But Conservatives have usually voted against help like this over the last ten years. He voted against making a school food program permanent. How can he look parents in the eye after voting to let children go hungry at school?”
Official Hansard

Mr. Speaker, I am pleased to hear that my colleague will be voting in favour of the bill, which is an affordability measure designed to help Canadians cope with the cost of living. However, when looking at the voting record of his colleagues in the official opposition over the last 10 years, we see that they have very rarely supported measures aimed at improving affordability. More often than not, they have voted against them. In his speech, he asked whether we are able to look parents in the eye. I would like to put the question back to him, given that we know full well that, as recently as last year, he voted against making the national school food program permanent. This program enables children to get through their school day with a full stomach. How can he look the parents in his constituency in the eye and tell them that he voted against the school food program, which ensures that no child goes hungry during the school day?

Sukhman Gill, Abbotsford—South Langley

Conservative
“This debate is simply about making gas cheaper for Canadians. Two weeks ago, the member voted against pausing fuel taxes until July 2027 and ending diesel taxes. Conservatives voted for those cuts, but the government side did not.”
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Official Hansard

Mr. Speaker, the answer, the debate, is simple. It is about bringing relief to Canadians at the gas pumps. That is what we are here debating. That is what my hon. colleague had an option of voting for two weeks ago when he decided to vote against the full relief up to Canada Day 2027 and to make sure we could eliminate full diesel taxes for all Canadians and further bring relief for Canadians. This is what we were talking about today. These are the measures our side voted for and strongly believes in. We do not see the same representation on the other side of the House. We do not want to make this about party politics, but that is unfortunately what we have here today.

Carol Anstey, Long Range Mountains

Conservative
“High diesel prices hurt small businesses in my riding. I want my colleague to talk more about how diesel costs affect businesses.”
Official Hansard

Mr. Speaker, I can certainly relate to many of the things my colleague talked about with respect to things he hears from Canadians, including people in his riding. We are talking about relief at the pumps. I also talked to a lot of small and medium-sized business owners in the beautiful riding I represent, and they are also talking about the impact that increased diesel prices have on their operations. I am wondering if this is something my colleague also experiences, and whether he would like to expand specifically on that aspect of the increased cost of diesel.

Sukhman Gill, Abbotsford—South Langley

Conservative
“People in British Columbia have the same fuel problems as people across the country. Truckers cannot afford their gas, monthly payments, or savings for their families. I want the other parties to join us in talking about this.”
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Official Hansard

Mr. Speaker, I want to thank my hon. colleague for her fantastic work and her advocacy across her area and across the nation as well. Before I answer the question, I want to let the member know that, yes, we in B.C. have the same problems they have in Ontario and across the nation. Many of our truckers are dealing with the same crisis. They are going about their day-to-day life not able to afford the simple things they should be able to afford. Their second and third fill-ups are so exhausting that they go home and are not able to have their dollar carry through the month to afford the payments they need to make, to carry some relief and to make sure they have some savings for their family and kids. This is the same issue I know the member is dealing with, and across the nation, many of the members on this side of the House are dealing with this as well. I am eager to see what the members on the opposing side have to say about this, because I know their constituents are feeling the same pain. I thank the member for her advocacy and her work. I wish the members opposing could join us as well.

Guillaume Deschênes-Thériault, Madawaska—Restigouche

Liberal
“We need many programs to help Canadians with the cost of living, like child care, school meals, and lower taxes. This fuel bill is only one part of that. I want the member to explain why his party supports this bill, but opposes our other programs to lower costs.”
Official Hansard

Mr. Speaker, my colleague talked about the importance of concrete measures to help with the cost of living. I completely agree, and I am very pleased that the official opposition is working with us, but this is just one among many measures. To help Canadians, we need a series of affordability measures. The Canada child benefit, affordable child care spaces, the school breakfast program and the tax cut for the middle tax come to mind. It is a combination of measures that sometimes put money directly back in the pockets of Canadians, or that save the public money indirectly. Tonight’s example is just one of many concrete measures. I would therefore like to know why my colleague supports this measure this evening, but does not support all the other affordability measures that we are putting in place. I sense a contradiction there. He asks us to implement concrete measures, but always opposes them.

Sukhman Gill, Abbotsford—South Langley

Conservative
“I am a farmer, so I know high fuel prices hurt farmers trying to produce and deliver food. Cutting fuel taxes will help all Canadians. I want the member to see this and support the motion.”
Official Hansard

Mr. Speaker, it is not that I am recognizing diesel prices just today. I am a farmer myself. I come from a farming background. I understand how much it is costing me and other farmers across our nation currently to fuel our farms and make sure we can deliver food across this nation. It is not just for the measures that my hon. colleague is mentioning today but for all Canadians. I wish and desire that he would see what I am talking about and that the motion we are speaking to today would be spoken about as well.

Carol Anstey, Long Range Mountains

Conservative
“This bill does not do enough to lower fuel prices. It only pauses one fuel tax for a short time, while leaving the GST, clean fuel rules, and the carbon tax in place. Gas prices, groceries, and shipping costs are way up, and small businesses and families in my province are struggling. I want the government to remove all federal taxes on gas and diesel until at least July 2027.”
Official Hansard

Mr. Speaker, it is always an honour and a pleasure to rise on behalf of the wonderful people of Long Range Mountains. I rise today to speak today to Bill C-38. Conservatives will always support measures that leave more money in the pockets of Canadians, but we should also be clear about how we got here. In April Conservatives brought forward a motion calling for federal taxes on gas and diesel to be removed to provide immediate relief to Canadians, but the Liberals voted against it. In May we came back to the House again and called for all federal taxes on gas and diesel to be removed for the remainder of the year, including the GST, and for the clean fuel standard to be permanently removed. That motion was also defeated by the Liberals. After months of Conservative pressure, the government has backed away from ending the excise tax suspension as originally planned, but it is important to note that this would still be only temporary. The tax is scheduled to start coming back early next year. Canadians need lasting relief from fuel costs, and the government’s own announcement on Bill C-38 acknowledges that lower fuel taxes benefit truckers and businesses involved in food, agriculture, housing, construction and delivery, because fuel costs do not stop at the pump. Statistics Canada reported just yesterday that gas prices are up 27.8% compared with a year ago, and increasing transportation costs are up 8.4%. For families who rely on their vehicles and for businesses that depend on fuel every day, those increases had immediate impacts. In September, inflation in Newfoundland and Labrador reached 4.7%, well above the national rate of 3.1%, and higher gas prices contributed to that increase in inflation. I want to talk about the real-life impacts of these extra costs. While in my riding, I spoke with Dwight. Dwight is a small business owner from Deer Lake. His operation employs 30 people. He runs his own company that provides waste management, construction, snow removal and trucking services. His entire operation relies on diesel. I spoke with him about the impacts of rising fuel costs on his business. In 2024, Dwight’s average diesel price was $1.81 a litre. In August 2026, the price was $2.41 a litre. Dwight outlined that the contracts he receives are five to seven years long, and the increase in fuel costs cannot be sustained in those conditions, as his input costs dramatically increase with no ability to recover those costs. In that type of business, with long-term contracts, he has to mitigate those extra costs. As a result, he delays purchases and postpones investments. He runs short-staffed as he tries to absorb these increased costs, which means fewer opportunities for growth and employment in our community. It is also important to understand that our small and medium-sized businesses keep our community initiatives and charitable organizations running. They are the heartbeat of our small communities, and when they are squeezed with rising costs, it ultimately impacts the entire community. More broadly, when it costs more to operate the fishing boat that brings in the catch, more to move groceries to the store, more to run construction equipment and more to deliver goods to communities across this vast country, those costs do not disappear. They make their way all the way through the supply chain, and eventually they show up in the prices families pay. In Newfoundland and Labrador, we understand this better than most, because we are a province of rural, remote and coastal communities. Goods have to travel long distances to reach us, and many people also travel significant distances for work, groceries, medical appointments and everyday necessities. For someone living on the Great Northern Peninsula or in another rural part of my beautiful province, fuel is an essential part of the cost of everyday life. For the people who grow our food, harvest our resources and keep our communities supplied, it is a cost they cannot avoid. Ian, a farmer from Cormack, wrote to my office about the financial pressures facing his business. He is averaging $60,000 to $70,000 per month in direct diesel fuel costs. He cannot sustain those increased input costs, and he cannot pass those costs on. That does not include the indirect costs of feed, fertilizer, other supplies and the transportation of his milk. These increased costs are not sustainable, and temporary relief is not sufficient. If lower fuel taxes provide relief, it does not make any sense to start taking that relief away while families, farmers and businesses are still struggling with the cost of everyday necessities. Families are still paying far more for groceries than they were a few years ago. Statistics Canada says that grocery prices are now 33% higher than they were in September 2020. I hear from seniors in my riding who are watching grocery prices and fuel costs and are wondering how much further their fixed income can stretch. I hear from young families who work, save and do everything they are supposed to but are still finding that the cost of transportation, food, housing, and everyday necessities keeps putting home ownership further out of reach. Small businesses are under the same pressure because they cannot absorb higher operating costs forever. Eventually, those costs mean smaller margins, less money to hire and invest, and higher prices for customers. That pressure is showing up in other ways, too. Food Banks Canada recorded more than 2.1 million visits in a single month last year, nearly double the level seen in 2019. Almost one in five food bank clients reported employment as their main source of income, meaning many people using food banks are working, but they still cannot afford the basics. There is also a job and investment side. Businesses need a clear view of what their costs will be before they decide whether they are going to hire, expand or make a major investment, or as in Dwight’s case, commit to long-term contracts and then face increased input costs that undermine the profitability of his business and jeopardize the livelihoods of his employees. When fuel costs remain high and federal tax policy keeps changing, those decisions become harder to make. Lower fuel costs over a longer period would give businesses more certainty, leave more money available to invest in their operations and help to protect Canadian jobs. Our Conservative proposal would remove all federal taxes on gas and diesel until at least Canada Day 2027 to save Canadians up to 25¢ per litre and bring as much as $1,000 in savings for the average Canadian family. This includes the 7¢ per litre clean fuel regulations, the GST and removing the federal industrial carbon tax so that Canadians are not forced to pay more for food and fuel. Bill C-38 does not address the full cost that federal policies add to fuel. The GST remains, the clean fuel regulations remain and the federal industrial carbon tax continues to add costs throughout the supply chain. A temporary suspension of one tax does not address all these costs. Canadians need relief that lasts longer than a few months and lowers the overall cost of fuel. There is also a broader question here about Canadian energy security. Canada is one of the largest energy-producing countries in the world, yet parts of our country remain dependent on imported refined petroleum products. This is important, because when global supply chains are disrupted, when shipping routes are threatened or when decisions made in another country can affect the price and availability of fuel here at home, Canada should not have to wait for the next international crisis before thinking seriously about its own fuel security. We should be producing, refining, storing and transporting more of the energy we need here at home. That means attracting private investment, getting infrastructure built and making sure Canada can compete for projects and investment with other countries. For Newfoundland and Labrador, this is an enormous opportunity. Our province has major energy resources, skilled workers, strong marine infrastructure and communities with generations of experience in resource development. Yet, for generations, too many Newfoundlanders and Labradorians have had to leave home to find work elsewhere. For me, that is one of the most important parts of this debate. For a tradesperson in Newfoundland and Labrador, more investment can mean finding work close to home instead of spending weeks or months away from their family. For a young person, it can mean learning a trade or earning a degree and still being able to build a career in the community where they grew up. For local businesses, more investment and more jobs mean more customers and stronger communities. For Newfoundland and Labrador, investment certainty is very important. When companies decide where to invest, they look at their operating costs, the regulatory environment and whether a project has a reasonable chance of moving forward. If Canada is more expensive and less predictable than competing jurisdictions, investment goes elsewhere and workers are the ones who lose out on those opportunities. Temporary tax relief does not solve the bigger problem if Liberal policies continue to make it difficult to build the infrastructure needed to strengthen our own fuel supply. That means creating a more competitive environment for investment, getting projects approved faster and making it easier to build and transport in Canada. For Newfoundland and Labrador, that is where the real opportunity lies. Conservatives are calling for broader relief, and we will continue pushing for it by pushing to remove the remaining federal taxes and costs that make gas and diesel more expensive while also pushing to make Canada a better place to invest. Families in Newfoundland and Labrador do not need another announcement telling them relief is coming. They need to see the difference when they fill their vehicles, buy their groceries, heat their homes and pay their bills. That is what Conservatives will continue to fight for.

John-Paul Danko, Hamilton West—Ancaster—Dundas

Liberal
“High fuel prices are a real problem for people in rural areas. But the Conservatives ignore the real reasons for these prices. Global conflicts, like the war in Ukraine, are driving up the cost of oil. Will the member admit that these conflicts are the real cause of high fuel prices?”
  • Question or comment in debate

    Signal 39 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

Mr. Speaker, my wife is from Corner Brook, so I had an opportunity to spend some time with family in the member opposite’s riding this summer. I also had a chance to go across the strait to Labrador. I can certainly understand that, in the vast rural landscapes of Newfoundland and Labrador, fuel prices are a real concern for her constituents. I am a little frustrated. I have an ongoing frustration that the members opposite, not just this member, continuously focus on what I would say are silly partisan gimmicks and continuously miss the big picture. In particular, we are talking about the cost of oil and gas as a global commodity, and I did not hear the member opposite reference the causes of the current increase in costs to fuel, gasoline and diesel, which are, of course, the U.S. war against Iran and the conflict of Russia’s invasion of Ukraine. Her colleagues also mentioned Venezuela and other conflicts. Will the member opposite recognize those as the root causes of the cost of fuel in Canada?

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