Debates of May 8th, 2024

Basic Income Guarantee Program

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, it is my honour to present petition e-4746 on behalf of some of the residents of my riding of Davenport. It is on guaranteed basic income.

Whereas Prince Edward Island has brought forward a guaranteed basic income proposal that is supported by the provincial government, which would serve as an ideal model for evaluating potential GBI programs and funding mechanisms, and due to the changing geopolitical landscape, today's world is highly unpredictable and unstable. The world of work is also changing with the rise of automation, artificial intelligence, and other technologies.

In order to look at how best to modernize our social safety net to better support Canadians in the 21st century, the undersigned Canadians who support a guaranteed basic income call upon the Government of Canada to implement a national framework for GBI that would test various funding and implementation models and their effects on poverty, inequality, innovation, and labour productivity.

North Atlantic Treaty Organization

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, this petition from residents of Saanich—Gulf Islands and beyond concerns Canada's engagement with the North Atlantic Treaty Organization, otherwise known more familiarly as NATO.

The petitioners point out that the Minister of National Defence's primary responsibility is to protect Canada within its borders and that the Minister of National Defence is not mandated to engage in wars in other countries or make treaties that encroach on other territories of other sovereign states. They make the point that the Canadian military does, in fact, participate in invasions in other countries by being a partner in NATO. The petitioners call on the House of Commons to immediately withdraw all connection, co-operation and material support from NATO from Canada.

Pornography

[Frank Caputo, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, it is always a pleasure to rise on behalf of the people of Kamloops—Thompson—Cariboo. In this case, It is in support of a petition that implores the House, in brief, to pass Bill S-210 from the Senate, the protecting young persons from exposure to pornography act. Those who have studied and are aware of this bill know this is in regard to age verification to access pornography.

Faith Observance

[Frank Caputo, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, it is always a pleasure to rise on behalf of the people of Kamloops—Thompson—Cariboo, and today I am doing so with respect to a petition to reverse religious discriminatory practices and allow chaplains to pray for fallen soldiers during Remembrance Day. This is obviously in relation to the Department of National Defence's recent changes that essentially make Remembrance Day ceremonies areligious.

Public Safety

[Dan Mazier, Conservative, Dauphin—Swan River—Neepawa, MB]

Mr. Speaker, it is always an honour to rise to present a petition on behalf of constituents.

I rise for the 36th time on behalf of the people of Swan River, Manitoba, to present a petition on the rising rate of crime. The community of Swan River is demanding that their voices be heard. They live in the chaos caused by the Liberal government's soft-on-crime laws, such as Bill C-5, which allows criminals to serve their sentences from home. The Manitoba West district RCMP reported that in 18 months, just 15 individuals racked up over 200 charges. The people of Swan River are calling for jail, not bail, for violent repeat offenders.

The people of Swan River demand that the Liberal government repeal its soft-on-crime policies, which directly threaten their livelihoods and their community. I support the good people of Swan River.

Questions on the Order Paper

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

Mr. Speaker, I would ask that all questions be allowed to stand at this time.

[The Deputy Speaker, Conservative, Chris d'Entremont]

Is that agreed?

[Some hon. members]

Agreed.

Motions for Papers

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

Mr. Speaker, I would ask that all notices of motions for the production of papers be allowed to stand at this time.

[The Deputy Speaker, Conservative, Chris d'Entremont]

Is that agreed?

[Some hon. members]

Agreed.

The House resumed from May 7 consideration of the motion that Bill C-69, An Act to implement certain provisions of the budget tabled in Parliament on April 16, 2024, be read the second time and referred to a committee, and of the amendment.

Budget Implementation Act, 2024, No. 1

[Tako Van Popta, Conservative, Langley—Aldergrove, BC]

Mr. Speaker, we are talking about budget 2024 and the budget implementation act. In the budget report, the Liberal government makes a claim that the GDP, the gross domestic product of our economy, is set to grow by 3.5% this year. GDP is a good measurement because it talks about the health of the economy, and admittedly, a 3.5% growth is not bad, if that is indeed what it is going to be, but members are not to forget that this is just a forecast. However, factoring in unprecedented population growth in Canada, and we are 3.5 million people more now than we were in 2019, the statistics look rather anemic.

David Williams, vice-president of policy at Business Council of British Columbia, notes that annual GDP per person in the province of British Columbia is actually shrinking. Per person GDP has been decreasing steadily under the Prime Minister. The calculations have been done by economists, and it works out to about $4,200 per person. Canadians are not getting richer, despite the optimistic spin the Liberals and the finance minister are putting on what is really an anemic economic performance.

Budget 2024 also announces once again, just as the Liberals have done in every budget since I was elected five years ago, that their economic policies will improve Canada's productivity numbers. Our poor productivity metrics is a well-known problem, which has been admitted to by our current Minister of Finance.

It works out to the following: For every $100 an American worker produces, their Canadian counterpart pumps about $72 into our economy, so only 72% is efficient. That does not mean Canadians are not working as hard as Americans. We are probably working as hard or harder than our American counterparts, but we do not have the tools, the technology or the investment to grow the economy. As America's productivity improves, Canada's is lagging due to mismanagement and bad leadership by the Prime Minister.

His former minister of finance, Bill Morneau, in a book he published shortly after he resigned from his position as the finance minister, said that he tried try to get his boss, the Prime Minister, to focus on the problems with Canada's lagging productivity, but the Prime Minister showed little interest. He said that the Prime Minister was more focused on wealth redistribution rather than on wealth growth, looking at the things that grow the economy, such as encouraging private investment in innovation and resource development, making strategic tax cuts and deregulation, getting new Canadians working sooner and developing strategies for scaling up our technology sector so that job growth happens here in Canada rather than south of the border in Silicon Valley, Boston or Texas.

I would add to this as well that a strategy for growing our productivity is freeing up interprovincial trade. Economists say that would add substantially to our productivity. What are we getting instead are tax increases on Canadian investors, which is scaring people away so their investment dollars might just go somewhere else.

I pointed out that the current Minister of Finance has also commented on this, and she has recently said that economic growth, business investments and productivity are an urgent challenge for Canada, if not the most important challenge for Canada. It sounds like the Minister of Finance understands that this is a challenge for Canada, as did the former minister of finance, but in Canada, our Prime Minister admits he does not spend a lot of time paying attention to these sorts of things, such as monetary policy or the impact his fiscal policy might have on inflation and interest rates.

Leadership sets the tone. What we have here again is lots of promises. The Liberals will say, “Sunny ways are just around the corner”, and that we should just believe them this time. As always, our Prime Minister gets an A for announcements and an F on delivery.

In talking about the budget, I just want to touch on inflation, interest rates and debt servicing. Under the misguidance of the current Prime Minister, Canada's inflation hit an all-time high. The Bank of Canada had to respond with higher interest rates, which are having a negative impact on citizens, on homeowners and on businesses, as well as on the national economy. With a debt of over a trillion dollars now, interest rate payments are over $50 billion a year, which is more money than Canada transfers to provinces for health care.

I just want to summarize with this: Struggling families cannot afford higher taxes and more inflationary spending that drives up the cost of everything and keeps interest rates high. There used to be an understanding here in Canada, an unwritten social contract saying that if one worked hard, got an education or on-the-job training, and then got a good job and a powerful paycheque, that one could save up to buy a house. One could buy the house, maybe pay the mortgage off in 25 years, or if one made a few extra payments early on, in 20 years, and then save up for one's retirement. It was simple but secure. Under the Liberal government, that dream is all but dead. To hear the Liberals speak, sunny ways are just around the corner. The Liberals have been around for nine years, promising that “this time you can believe us”, but they are not delivering.

It is time for the Conservative Party to take over the governing side of the House to get Canada's economy back on track. It is time to turn the hurt that the Liberals have caused into the hope Canadians desperately need.

Business of the House

[Steven Guilbeault, Liberal, Minister of Environment and Climate Change]

Mr. Speaker, I request that the ordinary hour of daily adjournment of the next sitting be 12 a.m., pursuant to order made Wednesday, February 28.

[The Deputy Speaker, Conservative, Chris d'Entremont]

Pursuant to order made on Wednesday, February 28, the request is deemed adopted.

The House resumed consideration of the motion that Bill C-69, An Act to implement certain provisions of the budget tabled in Parliament on April 16, 2024, be read the second time and referred to a committee, and of the amendment.

Budget Implementation Act, 2024, No. 1

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

Mr. Speaker, I would suggest to the member across the way that, in fact, Canada is not broken and that we are on the right economic track. The Conservatives are very good at spreading misinformation. That should not be a surprise to anyone who follows the debate.

For example, the member said that we are scaring away investors. Last year, Canada was number one in the G7 countries for GDP, based on the population base in terms of direct foreign investment for the first three quarters. Worldwide, we were number three on a per capita basis.

How can the member or the Conservative Party across the way try to mislead Canadians by saying we are scaring away investment when we see that kind of reality staring us in the face?

[Tako Van Popta, Conservative, Langley—Aldergrove, BC]

Mr. Speaker, I would point out that, with Canada's very high real estate costs, many of our investment dollars are going into real estate. One economist called it a “black hole” for investment. That money could otherwise be going to much more productive industrial use.

I believe this is what Canada is lacking: investment in technology and industries that are really going to grow our economy. That is one reason our productivity rate is so much below the rates of other competing nations and, in particular, the United States, our closest trading partner.

[Matthew Green, NDP, Hamilton Centre, ON]

Mr. Speaker, I appreciate the hon. member raising the cost of housing as a prime issue. He called it a “black hole”. I would say that, in some regards, the financialization of housing is parasitic, particularly when it comes to workers and working-class people.

The hon. member raised the way in which housing costs have ballooned out of control. I would put to colleagues the parable of the carpenter. Some 10 or 15 years ago, the average wage for a carpenter was about $42 an hour. The house that they would build would be about $300,000 to $350,000 for a home. If we fast-track to today, this present moment, the same carpenter, that master craftsperson, has an average salary of $49 an hour, but the homes they build are $700,000 to $800,000 for a home.

Does the hon. member agree in the economic theory stating that the surplus value of workers' wages is being redistributed to the ultrawealthy and captured by the banks, the financial class and the real estate class of this economy, which do not actually produce the wealth? It is the worker who produces the wealth in this regard.

[Tako Van Popta, Conservative, Langley—Aldergrove, BC]

Mr. Speaker, I agree that the average worker should be able to afford a home in this country. A well-paid carpenter should be able to afford an average house. It may not be the luxury house that he happens to be building or framing; however, every person in Canada who has gone to the effort of getting an education or on-the-job training, and who has a good job, should be able to fulfill the dream of owning a house.

As for the black hole, I just want to clarify that the cost of real estate is so high and there is so much money going into real estate. Sometimes the government states that our debt-to-GDP ratio is not that high, but if we factor in all the debt, private debt for mortgages, the numbers are quite astronomical, and that is a drag on our economy.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, we do not really have a lot of time in this place to dive into things like productivity. What increases Canada's productivity? Why do we lag in productivity? I have long found a line by Paul Krugman, a Nobel Prize-winning economist, pretty compelling. It is, “Productivity isn’t everything, but in the long run, it’s almost everything.”

I have heard answers to that over the years, and I know I do not have time now to get into the research of why that is. The notion that Canada and our economy is based on hewers of wood and drawers of water makes our productivity quite low. Countries with high productivity have value added in their exports. They do not ship out raw logs, raw bitumen or raw product. They have a lot of value added with worker contributions.

As our exports increasingly become low-value, unprocessed resources, productivity falls. However, I do not hear from many of my colleagues in this place, or anyone, decrying that we are shipping out raw bitumen or raw logs. That is what hurts productivity.

[Tako Van Popta, Conservative, Langley—Aldergrove, BC]

Mr. Speaker, I want to thank the member for Saanich—Gulf Islands for that very thoughtful comment. Indeed, shipping out raw materials is not as productive as actually further manufacturing products. However, I made a point in my speech about the importance of Canada developing its high-tech sector, to scale it up into international competitive standards. We are failing in that.

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, I am thankful for the wonderful opportunity to be able to speak to Bill C-69, the budget implementation act, on behalf of the residents of Davenport, who I am so privileged to be able to represent.

I voiced support for Bill C-69 right off the bat for a very simple reason. As do many of us here, I want a better future for young Canadians, who are going through adulthood in a world that is plagued by crises ranging from war and climate change to global inequality and economic instability. Our federal government wants their hard work to be rewarded, as it has been for us.

We want them to see and believe that our country can work for them and for their future children. That is why budget 2024 is so important.

Budget 2024 is our plan to build a more resilient, affordable, inclusive Canada where every Canadian can afford to buy or rent their own home; where everyday bills are not a major source of stress; where corporations no longer take advantage of hard-working, middle-class families; and where everyone has a fair chance at a good middle-class life. Passing Bill C-69 is how we will arrive at that destination.

I am going to focus on three key sections of what is a very big budget implementation act, but I will say that the theme of the overall budget this year is fairness for every generation. While I might focus a lot on gen Z and the millennial generation, there is fairness for every generation in our budget and in our budget implementation act.

The first section I am going to talk about is with regard to cheaper Internet, home phone and cellphone plans. A major part of our plan is making life cost less.

Inflation has now been back within the Bank of Canada’s target range for three months in a row. However, more work is needed to help reduce the cost of living, including the cost of essential services in day-to-day life.

Last year, we made a commitment to reduce the cost of cellphone plans by 25%, as too many Canadians still pay far too much for their cellphones and Internet. That is why budget 2024 announces our intention to amend the Telecommunications Act, to better allow Canadians to renew or switch their Internet, home phone or cellphone plans.

Through these amendments, carriers would be prevented by the CRTC from charging Canadians extra fees to switch companies. In addition, they would be required to help customers identify new plans, including lower-cost plans that exist, at the end of a contract, and they would also have to provide a self-service option for customers to switch between or end their plans.

Together, these amendments would help more Canadians save money by getting fairer prices and paying fewer fees, no matter where they live. In addition, to ensure that Canadians can keep their expensive devices working for longer, budget 2024 announces that we will launch consultations this June to develop a right-to-repair framework with the goal of increasing product durability and repairability. On top of saving consumers money, this framework would aim to facilitate a more circular economy by reducing the number of products in landfills, a win-win if I have ever seen one.

The next thing I want to talk about is more affordable and modern banking. “Fairness for every generation” also means a banking system that is more flexible. We all know that banks charge a multitude of fees, from ATM fees to monthly service fees and non-sufficient funds fees, or NSF fees, which are charged when there is not enough money in a bank account to cover a cheque or pre-authorized transaction.

Budget 2024 states our intention to support Canadians who are struggling financially by introducing regulations that will cap these punitive fees at $10. These new regulations would also require banks to alert consumers when they are about to be charged an NSF fee, provide a grace period to deposit additional funds and restrict multiple fees for the same transaction and the number of fees that may be charged in a 72-hour period.

I know that a number of banks already do some of these things already. What we want to do is make this uniform right across all financial institutions in Canada.

Because more and more transactions happen online, our government is also working to modernize the services offered by Canadian banks to keep up with the needs of Canadians.

Budget 2024 announces that the Financial Consumer Agency of Canada, or FCAC, is in negotiations with banks to secure enhanced agreements to offer modernized zero dollars per month and up to four dollars per month bank accounts that reflect today’s banking trends, including more transactions. This would especially help youth and students who are just opening their first bank accounts.

That is not all. Bill C-69 also includes legislative amendments to expand the mandate of the FCAC to supervise Canada’s consumer-driven banking framework. Budget 2024 proposes to provide $1 million to the FCAC to support preparation for its new responsibilities and to begin development of a consumer awareness campaign. It also proposes $4 million over three years to the Department of Finance to complete the policy work necessary to establish and maintain oversight over this framework, including a national security regime.

However, before we go any further, let me explain what this could mean for Canadians. Known to many as open banking, consumer-driven banking allows consumers and small businesses to safely transfer their financial data to service providers through a data-sharing channel known as an application programming interface, or API. This happens quite literally at the click of a button. Currently, an estimated nine million Canadians share their financial data by providing banks, credit unions and other providers with their confidential banking credentials. This process, known as screen scraping, is incredibly unsafe and puts both consumers and our entire financial system at risk.

A Canadian consumer-driven banking framework would empower Canadians to access and share their financial data without having to share access to their bank account. It would also provide access to new products and tools to help Canadians better manage bills, track a budget, make more informed financial decisions, secure a loan and even help young Canadians when it is time for them to buy their first home.

An era of open banking is here, and Canada deserves to be part of it. I would add that it cannot come too soon. We know that most countries around the world have already moved forward with open banking. Also, having spoken recently to the Canadian Bankers Association, I know it is very supportive of open banking and has indicated that open banking will also put a regulatory regime in place that will protect against fraud and other risks to Canadians online.

The last section I want to talk about is doing more to crack down on predatory lending. In terms of protecting Canadians, our federal government is also working to prevent more vulnerable individuals, like newcomers, low-income Canadians and youth, from being deceived and trapped by illegal lenders who try to bypass the criminal rate of interest. Last year, our federal government advanced amendments to change the definition of “criminal rate” in the Criminal Code from an effective annual rate of interest that exceeds 60% to an annual percentage rate, or APR, that exceeds 35%.

Building on these changes, federal budget 2024 proposes additional Criminal Code amendments against offering or advertising credit at a criminal rate of interest. These amendments empower law enforcement by prohibiting offering credit at a criminal rate of interest and allowing for prosecutions of illegal and predatory lenders without needing the approval of the Attorney General.

Federal budget 2024 also announces that we intend to work with provincial and territorial governments to harmonize and enhance consumer protection measures in respect of consumer lending, focusing in particular on high-cost loans and payday loans. Actions taken could include everything from capping the costs of optional insurance products for high-cost loans, including payday loans and strengthening payday loan regulations, to enhancing monitoring and data collection practices in the high-cost loan market. These proposed measures would limit the risk of harmful debt cycles and help more Canadians keep more of their hard-earned money in their pockets.

Our government is taking action to build a fairer Canada, with transformative measures that will give people back control over their personal finances and banking choices, cap banking fees and give Canadians better access to digital banking, lower-cost accounts and stronger consumer protection. We can unlock the promise of Canada so that younger generations can build a better life, as their parents and grandparents did before them, but we cannot do it alone.

I hope that my hon. colleagues will support Bill C-69 and join us in our vision of a better, brighter future.

[Philip Lawrence, Conservative, Northumberland—Peterborough South, ON]

Mr. Speaker, I enjoy working with the hon. member on the finance committee. We have both spoken about the importance of productivity in the economy, though maybe from different perspectives.

The government has been in power for nine years now and this is its latest budget. There is a gap between U.S. and Canadian incomes and GDP per capita, which is now at a record deviation, meaning that the gap between what Canadians are earning and what Americans are earning has never been greater. At what point will that gap start to be reduced?

[Julie Dzerowicz, Liberal, Davenport, ON]

Mr. Speaker, I, too, enjoy working with my hon. colleague on the finance committee.

The issue around productivity and business investment is not a new one in Canada. Actually, we have been tackling productivity for more than 30 years, and business investment for the last 20-plus years. I would say that it is not just federal budget 2024 where we have made huge investments in our economy, in our economic infrastructure and in Canadians so that we can continue to give Canadians the tools and the skills to be able to succeed and for Canada to have a prosperous economy, both now and in the future. I think a number of the measures that we have in our budget will help with the productivity issue, as well as with the business investment issue.