Canadian economy losing momentum, says Conservative MP Deltell
‘Our Conservative approach is basically to leave more money in the pockets of Canadians,’ says Conservative MP Gérard Deltell. / TWITTER PHOTO
Canada is in a recession. As all economists know, a country is in a recession when its gross domestic product, or GDP, is negative for two consecutive quarters. Some may seek to qualify this particular recession, but, mathematically speaking and quite clearly, it is defined as follows: If the GDP is down for two consecutive quarters, it is a recession, and that is what we are dealing with.
Some have tried to quibble over this definition of a recession. However, beyond the quibbling, there is the reality of the hardships faced by Canadians — hardships that have plagued Canada for far too long. We have the worst food inflation among G7 countries. Every month, 2.2 million Canadians turn to food banks for food. Let us not forget that we are in Canada. Of that number, one-third are children. Families, fathers and mothers, cannot afford to provide for themselves and must resort to visiting food banks.
Unfortunately, Canada also has the second-highest unemployment rate among G7 countries. That is the reality in Canada. Those are the problems Canadians are facing. This confirms the sad reality that Canada is in a recession: those 112,000 jobs that were lost since the beginning of the year. There is the reality faced by entrepreneurs who want to invest but are dealing with serious concerns about economic stability. They cannot invest in an environment that is not stable, and the Canadian economy is currently losing momentum. We can also see the impact in trade flows. Some $20 billion in investment has left Canada, on top of the $1 trillion in investment that has not been made in Canada over the past 10 years under Justin Trudeau and the current Prime Minister. That is why we feel that the Canadian economy is weakening, that it is declining and that it is in recession.
‘Living beyond our means’
We have been living beyond our means for nearly 11 years. The debt has risen by $1 trillion, which is almost twice the total debt accumulated over the previous 125 years. That is the reality of Liberal management: $1 trillion in additional debt.
That is debt we are passing on to our children, our grandchildren, and our great-grandchildren, who have not yet been born but who will have to pay for it. That is why we must be careful. That is why we need a positive, winning strategy for Canadians.
Our Conservative approach is basically to leave more money in the pockets of Canadians. Two months ago, we started a debate about transportation and gas taxes. That affects all Canadians, not just those who have a gas-powered car. We know that the goods we buy, like food, do not fall from the sky. These goods are transported, and, in many cases, gas is involved. This gas tax affects all Canadians.
Our proposal was very clear: Abolish all federal taxes for the entire year. That would leave $5 billion more in the pockets of Canadians. We believe that people are better at managing their money than the government, to whom they send their money in the form of taxes.
The government used our idea to fuel theirs, no pun intended. They decided to temporarily cut the excise tax by 10¢ for a few months. To paraphrase Neil Armstrong's words in reverse, cutting the tax may be a giant leap for the Liberals, but it is a small step for taxpayers. That is why we need to go much further.
Our approach is to abolish all federal taxes. That would leave $5 billion more in the pockets of Canadians. That is how we can help people.
Unlocking Canada’s energy potential
We also wanted to unlock the full potential of Canada's natural resources. I am an ardent fan and strongly in favour of all the natural resources we have and all energy sources. When I talk about energy, I mean green energy, renewable energy and so-called fossil fuels.
Canada has it all. Canada has every energy source that countries would go to war over. Canada has all the natural resources it needs to achieve its own and the planet's full potential. Canada is ready to go. Unfortunately, the government spent a decade holding back the development that Canada needs, that Canadians need and that the whole world needs. The whole world needs more energy. It needs the natural resources and rare materials that Canada has. The way I see it, there is no such thing as going too far with any of this.
Furthermore, we must continue to open the door to free trade with countries around the world. As I mentioned a few moments ago, that has been the case in Canada since Brian Mulroney's terms in office, since the 1988 free trade agreement and since Jean Chrétien's efforts to extend that North American agreement. I am also proud to add that, under Stephen Harper, we truly broke down barriers by concluding agreements with nearly 40 countries, and that is a good thing. I am very pleased to see that the current government is following in those footsteps.
We must continue in this direction, while recognizing that Canada is a champion of free trade. If free trade creates real wealth for Canadians, then it should go hand in hand with lower taxes and lower taxation. If we are capable of that, if we are a global model for free trade, then we should also practice free trade within our own country.
I therefore urge the government to go further. That is why, unfortunately, Canada is in a recession. Canada deserves better.
Gérard Deltell delivered this speech on June 2 during an opposition day motion. The speech was edited for length.
