Taxation

Candice Bergen Portage—Lisgar

Mr. Speaker, over the weekend there were yet more reports of just how severely Canada's competitiveness is suffering. One CEO said that there is a real, genuine, honest, non-partisan concern that Canada is so completely out of touch with the real world. Stretch: There was one report April 29 — a column in the National Post. In it, an unnamed CEO says, “The level of foreign investment has never been so low and continues to fall off a cliff. There is a real, genuine, honest, non-partisan concern that Canada is so completely out of touch with the real world.” But there are no facts given by him or an economist also quoted to support Bergen’s claim that Canada’s competitiveness is severely suffering. Two companies that were speculated to be leaving Canada — Enbridge and Encana — told the Post they had no plans to move to the U.S. No mention was made of the carbon tax although that argument has been made elsewhere. While the Prime Minister ignores the facts, this is in part a direct result of the Liberal carbon tax. What about Canadian families? They too are going to suffer. What is the cost of the carbon tax on Canadian families?

Bill Morneau Minister of Finance

Mr. Speaker, I would like to address the issue of Canadian competitiveness. We know that Canada has done exceptionally well over the last two and a half years. Over the last year and a half, we have had the fastest growth among G7 countries. Canadians have created over 600,000 new jobs. We have one of the lowest rates of unemployment we have seen in 40 years. . True: OECD stats show Canada has had the strongest quarterly GDP growth in the G7 in every quarter since September 2016 (Q4). But in the fourth quarter of 2017, the country dropped 0.01% behind Germany. StatCan reports that employment in Canada rose from 17.9 million jobs in November 2015 to 18.6 million jobs by March 2018. In 1976, unemployment was 6.9 %, falling to 6.1% in 2000; 5.2% in 2007 and 6.0% in 2016. We know that Canadians are competitive because we know that Canada can compete around the world. We will continue to focus on how to improve that competitiveness, working together on issues of importance, considering how we can make sure that for the long run these positive results continue.

Candice Bergen Portage—Lisgar

Mr. Speaker, $80 billion of investment has left this country in the last two years. Nothing the Minister of Finance tries to say will change that fact, and the carbon tax is contributing to it. The Liberals would have us believe that the carbon tax is going to magically fix all. It will put an end to floods, droughts, and forest fires, apparently. They will not tell us how much it is going to cost, Stretch: Foreign financial investment in Canada dropped in 2017 to the lowest level since 2010. If financial investment (defined as transactions in financial assets and liabilities) had stayed flat from 2015 onward, there would have been $80 billion more. But that’s only a part of foreign direct investment in Canada which is actually at an all-time high. The Liberals don’t claim that carbon pricing will solve climate change. The government has said that the cost of carbon pricing depends on the system decided by the provinces. but just with a wish, a prayer, a little pixie dust, and a new tax on Canadians, all that is wrong in the world will be made right. What a joke. Nobody believes it. How much is this bad joke going to cost everyday Canadian families?

Jim Carr Minister of Natural Resources

Mr. Speaker, for decades people have been talking about taking action on climate change, but nothing has been done. Stretch: Efforts have been made although targets have been repeatedly missed. Carr’s description of the oceans protection plan as world class is subjective; an Oceana Canada environmentalist told Radio Canada that the plan was just one step toward “world-class” ocean protection. Scheer has said he will meet the Paris Accord targets without carbon pricing although he hasn’t revealed any details of his plan. We have taken action. We have put forward a world-class oceans protection plan. We have strengthened our environmental assessments, and we have put in place a price on carbon pollution to grow the economy in cleaner ways. The only idea the Conservatives have is the Harper Conservative approach of doing nothing yet claiming they will achieve our targets. It is clear the Harper Conservative approach is alive and well in the party opposite.

Candice Bergen Portage—Lisgar

Mr. Speaker, even Michael Ignatieff said the Liberals did not get it done on climate change, Stretch: According to this Globe article, Ignatieff said the Liberals didn’t get it done on climate change in 2006, referring to the Chrétien-Martin regimes. but here is what the Liberals are really good at: cover-ups. According to the Oxford dictionary, a cover-up is an “attempt to prevent people from discovering the truth about a serious mistake...”. When the Liberals literally black out the numbers around how much a carbon tax is going to cost Canadians, they are covering up this cost to Canadians who deserve to know. The Liberals know. They have the numbers. How much is the carbon tax going to cost? Will one of them answer, please?

Jim Carr Minister of Natural Resources

Mr. Speaker, Canadians asked us to plan for a better and safer future. They asked us to take concrete and thoughtful actions to tackle climate change. We listened and we heard Canadians. Our plan would cut pollution equivalent to closing 20 coal plants, while the economy and the GDP continue to grow in cleaner ways. That is the plan Canadians asked for, and we will continue to deliver. Dodge: Carr dodges the question on carbon pricing cost. Though his point about 20 coal plants is correct. Enviroment Canada’s recent analysis says the plan is equivalent to taking between 23 and 26 million cars off the road for one year, or to shutting down 20 to 23 coal-fired power plants for a year. We have taken action. We have put forward a world-class oceans protection plan. We have strengthened our environmental assessments, and we have put in place a price on carbon pollution to grow the economy in cleaner ways. The only idea the Conservatives have is the Harper Conservative approach of doing nothing yet claiming they will achieve our targets. It is clear the Harper Conservative approach is alive and well in the party opposite.

Gérard Deltell Louis-Saint-Laurent

Mr. Speaker, Canada’s energy sector is crucial to our economy. Businesses in every province and region of the country are active in this sector. In my riding, for instance, CO2 Solutions has been working on reducing greenhouse gas emissions in Alberta for about a decade, and it is working. Stretch: TCO2 Solutions is a company that specializes in technology to capture carbon emissions from industrial projects, including work in the oilsands. According to the company website, their technology uses an enzyme called carbonix anhydrase to create an “industrial lung” to capture emissions more efficiently and at lower cost. However, Deltell’s question suggests GHG emissions are being reduced in Alberta. While the C02 Solutions technology works to reduce them, overall GHG emissions in Alberta actually increased by 14 per cent from 2005 to 2016, according to the federal government’s most recent National Inventory Report on GHGs. What is this government doing to applaud and thank them? It is imposing the Liberal carbon tax, which will have a $10-billion dampening effect on our economy. True: According to Canada's Parliamentary Budget Officer, GDP growth will be $10 billion lower in 2022 because of carbon pricing. The question is, how much is this going to cost Canadians?

Jim Carr Minister of Natural Resources

Mr. Speaker, the opposition has absolutely no plan.That party had no plan for 10 years because it had absolutely no idea what it means to grow the economy while being respectful of the environment. False: The Conservatives did make some moves on the environment during their time in office. For example, the government in 2009 signed the Copenhagen Accord pledging to reduce greenhouse (GHG) emissions to 607 Megatonnes (Mt) in 2020, or 17 per cent below 2005 levels. In 2010, they joined with the U.S. to enact more stringent emission controls for cars and trucks. In 2015, they signed on to G7 commitment to stop using fossil fuels by 2100, a goal they conceded was “aspirational.” But it’s also fair to say that the Conservatives’ overall record on the file was not well-regarded by environmentalists. That party did not respect the environment and it did not grow the economy. On the question of energy, just last week the CEO of Cenovus said, “I would tell you that the support we have received from the federal government — that support would not have been evident a few years ago.”

Gérard Deltell Louis-Saint-Laurent

Mr. Speaker, for the edification of the minister and all Canadians, between 2005 and 2015, in other words, when we formed the government, greenhouse gas emissions dropped by 2.2%, while real GDP grew by 16.9%. True: Canada’s GHG emissions are tallied every year in the “National Inventory Report,” which is submitted to the United Nations as part of the global tracking of progress under global climate change agreements. Deltell’s figure is accurate according to the NIR that was submitted in 2017. According to that report, emissions in 2005 were 738 megatonnes and 722 megatonnes in 2015 – a drop of 2.2 per cent. The government’s 2018 NIR, which can be found here, has slightly different numbers and actually shows a 2.5 per cent drop in GHGs over that period (732 MTs in 2005 to 714 MTs in 2015). At times, however, Deltell claimed a 2.2 per cent drop in GHGs during the years Stephen Harper was prime minister. In those instances, his figure is incorrect; Harper was in power from 2006 to 2015, not 2005 to 2015. According to the 2017 NIR, GHGs dropped 0.96 per cent during the Harper years (729 MTs in 2006 to 722 MTs in 2005), while the 2018 NIR shows a 1.25 per cent drop (723 MTs to 714). That is the Conservative record: a prosperous economy and reduced greenhouse gas emissions. Meanwhile, this government continues to hide the truth from Canadians regarding the $10-billion dampening effect its measure will have on our economy. How much is it going to cost Canadians? Why are you continuing the cover-up?

Bill Morneau Minister of Finance