The Conservatives and the New Democrats are demanding that the federal government introduce new measures to address the rising cost of living for Canadians, with different approaches to tackle the inflation crisis.
The Conservatives have put forward an omnibus motion asking that the government temporarily suspend the Goods and Services tax collected on gasoline and diesel, freeze the carbon tax, and eliminate tariffs on fertilizer, among other requests, in order to provide immediate relief to Canadians.
“People are paying over – in some provinces – $2 a litre for gas. People can’t afford groceries, they can’t afford rent, much less mortgage,” said Interim Conservative Leader Candice Bergen. “What’s very frustrating is that the Liberals won’t even give consideration to cutting taxes. As I’ve said, this isn’t a novel idea, other countries are doing it.”
Bergen said she’s hopeful the motion will gain the support of the NDP and the Bloc Quebecois.
However, in a separate press conference Tuesday to address the rising cost of living, NDP Leader Jagmeet Singh argued the way to tackle it is by imposing an excess profit tax on big companies.
“We see clearly that corporations are making these massive profits. They’re making record-setting profits and their record-setting profits are directly contributing to the cost of living going up,” Singh said.
“We believe very strongly the solution has to be redistributing wealth.”
The calls for action come the same day the Parliamentary Budget Officer (PBO) released a new report showing that the Consumer Price Index now sits at its highest level since the introduction of inflation targeting in 1991.
The PBO pointed to the COVID-19 pandemic and the recent Russian invasion of Ukraine as unexpected yet major inflationary pressures.
Innovation, Science and Industry Minister François-Philippe Champagne responded to the Conservatives’ and NDP’s demands, noting that inflation is “top of mind” for the government.
“I think everyone is seized with the issue of trying to find ways to make life more affordable for Canadians from coast to coast…Within my remit, I seized the Competition Bureau to make sure that we would be looking at any practices that could be anti-competitive,” he said, speaking to reporters on Tuesday.
The minister also pointed to the government’s child-care deals with the provinces as a mechanism to ease everyday living costs.
Thirty-eight per cent of respondents in a new FP Canada Financial Stress Index survey cited money as being the biggest source of stress for the fifth time in eight years, nearly twice as much as personal health, work or relationships.
More than two-thirds said rising grocery costs are having a direct impact on financial stress and another 56 per cent said the same about gas prices.
A separate poll published Sunday by Food Banks Canada and conducted by Mainstreet Research shows food and hunger insecurity are on the rise across the country, with almost a quarter of respondents reporting eating less than they should because they didn’t have enough money.
The number doubled for those earning under $50,000 a year.
The poll also found one-in-five Canadians reported going hungry at least once between March 2020 and March 2022.
Food Banks Canada CEO Kristin Beardsley said the majority of food banks are already stretched as insecurity levels are expected to increase through the summer months.
“Food banks in most regions of Canada are experiencing an influx of Canadians visiting food banks for the first time – a number that’s increased by up to 25 per cent in some regions,” she said in a statement.
Some provincial governments are taking steps to cool the price of gas at the pumps specifically.
Doug Ford’s government announced in April it would introduce legislation that would cut the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months beginning July 1. Jason Kenney’s government also announced it would stop collecting its fuel tax and offer a $150 electricity rebate.
Bergen accused the Liberals of displaying “political vindictiveness” by refusing to agree with the Conservatives’ proposals to tackle inflation over the last several months.
“What is so incredibly disturbing is the prime minister’s willingness to play politics with people’s lives, Conservatives on the other hand have chosen to offer positive solutions,” she said.
Carleton University economics professor Vivek Dehejia said he sees value in the Conservative’s tax relief pitch so long as there’s a sunset clause attached to it.
“If these are targeted and time-bound measures as opposed to say just that GST is lifted permanently, that would be a different matter, but if it’s time-bound while inflation is high, it makes some sense,” he told CTVNews.ca in a phone interview on Tuesday.
Dehejia said he’s not in support of the NDP proposal.
“We’ve seen other countries that have done this and what it tends to do is target innovation and productivity,” he said.
“Debate aside, that’s a very long-run process.”
Dehejia added freezing or lowering taxes is one of the few measures that the federal government can implement given the inflation rate is a product of monetary policy.
“The only tools they have are either to increase spending or to cut taxes,” he said.
MPs are expected to vote on the Conservative motion later this evening.
With files from The Canadian Press.
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