Don Davies

Mr. Speaker, I rise to speak to Bill C-38, the Canadian fuel affordability act, which would temporarily extend the government's fuel tax suspension at a further cost of $2.9 billion. No party in the House has raised greater concern about the affordability crisis facing working Canadians and their families than the New Democrat Party. We know how expensive life has become with the sky-high costs of groceries, fuel and housing, and we know that Canadians need effective relief now. Unfortunately, the policy contained in this bill, which would ultimately cost over $5 billion, has failed to deliver the lower fuel prices Canadians were promised. When this tax suspension was first implemented last April, New Democrats warned that its impact on prices at the pump would be limited because nothing in the legislation guaranteed that savings would actually reach consumers. We argued then that there was nothing to stop oil companies from absorbing some or all of the tax cuts themselves. We were right. Canadians are now paying more for gasoline today than they did in April, and substantially more than they were paying before the latest global energy crisis began. On the day the tax suspension took effect, the national average price of gasoline was $1.69 per litre. Today it stands at $1.83 per litre. It is also more than 60¢ per litre higher than it was last Christmas, before the U.S.-Israeli invasion of Iran sent oil markets into turmoil. The government has essentially given billions of taxpayer dollars directly to the oil companies, some of the most profitable corporations on the planet. While Canadians struggle with the cost of living, oil and gas giants are poised to collect $90 billion in profits this year alone, not because of innovation or increased productivity, but because they are gouging consumers. That is why New Democrats have opposed this policy from the outset, and why we continue to advocate for the future a better, more effective way to help struggling consumers, which is a windfall profits tax on oil and gas companies with the proceeds returned to Canadians who need relief. This is not a radical idea. We have done it before in times of crisis. Canada imposed excess profits taxes during both world wars. The Liberals themselves imposed an excess profits tax on banks during the pandemic. It is an approach that makes sense. A windfall profits tax avoids the pitfalls we have just seen from the flawed policy contained in this legislation. It cannot be captured as corporate profits. It allows support to be targeted to those who need it the most. It does not encourage greater fossil fuel consumption at a time when the world is facing a climate emergency. The irony of this fuel tax suspension is hard to ignore. Canadians who have chosen to reduce their emissions by purchasing electric vehicles, taking public transit, cycling or making other environmentally responsible choices are being forced to pay for another fossil fuel subsidy while receiving none of the benefits. We cannot ignore the opportunity cost of delaying our transition to the sustainable energy sources of the future. Every dollar spent propping up an industry that is already enormously profitable is a dollar not invested in the technologies that could lower energy costs, strengthen our economy and free Canadians from the endless roller coaster of oil and gas prices. The world is changing far faster than many people realize. In the early 2020s, we crossed an important threshold. For the first time, solar power became cheaper than fossil fuels and cheaper than coal, making it the lowest cost source of electricity available. Wind power followed closely behind as the second cheapest source. By 2024, over 92% of all new electricity generation added globally came from renewable sources. Solar power is now being installed at a staggering pace around the world, with more than a gigawatt of capacity being added every single day. That is equivalent to the output of a large, coal-fired power plant or a nuclear reactor. The world now possesses the manufacturing capacity to produce as many solar panels as climate scientists say we need. The old arguments that clean energy is too expensive, too unreliable or incapable of meeting our energy needs simply do not withstand scrutiny. The global energy transition is no longer a question of possibility. It is already under way. While the Liberal government spends billions subsidizing fossil fuels, other countries, from Europe to China, are investing in the industries that will create the jobs, exports, productivity gains and economic opportunities of the future. This transformation is not limited to only wealthy countries. According to the Rocky Mountain Institute, renewable energy capacity is growing twice as fast in countries of the global south as it is in developed countries. Communities that have historically lacked reliable access to energy are increasingly leapfrogging directly to clean electricity. These examples matter because they show that the transition is about far more than reducing emissions. It is about freedom, freedom from volatile energy prices, freedom from domination by oil and gas monopolies and freedom from the dangerous geopolitics that have always accompanied fossil fuels, where access to energy can be manipulated, restricted and weaponized. We can see the consequences of that reality unfolding right now in Cuba. For more than 60 years, Cuba has lived under an illegal U.S. economic blockade that has been repeatedly condemned by the overwhelming majority of countries at the United Nations. Today, that pressure is intensified into an American effort to choke off Cuba's energy supply altogether. When fuel is cut off, hospitals struggle to operate, water systems fail, food spoils and ordinary people suffer. Let us be clear, this is not an unintended consequence. Humanitarian catastrophe is the objective. Canada has a long tradition of pursuing an independent relationship with Cuba. We have maintained diplomatic relations since 1945, consistently opposed the U.S. economic blockade and built deep cultural and commercial ties between our peoples, yet, as humanitarian conditions worsen and the Trump administration cruelly and illegally blockades Cuba's fuel supplies, the Liberal government has refused to speak out. That silence is difficult to reconcile with the principles articulated by the Prime Minister in his speech in Davos. There, he argued that middle powers like Canada have a responsibility to defend sovereignty, human rights and solidarity rather than bowing to the exercise of power by stronger states. He cautioned against the temptation to “go along to get along” in the face of coercion and intimidation from superpowers. Those are admirable principles, but if they mean anything, they must apply to Canada and Cuba as well. Canada should speak out strongly and demand that Donald Trump rescind his illegal blockade. We should stand with the Cuban people by providing immediate energy support to keep essential services running while helping the country rapidly build the renewable energy capacity needed to free itself from imported fossil fuels and the threat of future energy blockades. This is ultimately the lesson before us today. Investments in clean energy are not simply climate policy. They are affordable policy. They are industrial policy. They are security policy. They are investments in a future where communities are less vulnerable to geopolitical conflict, less dependent on scarce resources and more capable of determining their own destiny. The technology exists. The costs have fallen. The solutions are available, so let us stop the destructive and senseless expansion of fossil fuel infrastructure and consumption on a planet crying out for relief. Let us stop subsidizing the oil and gas industry, which does not need the money. Canadians do. Let us start investing in the energy supplies of the future that will lower costs, create jobs, build our economy and protect our planet. Canadians can count on New Democrats to support positive and constructive policies in this place that will actually help them with the affordability crisis they are facing. We will continue to oppose corporate giveaways by the Liberal government, which are supported by the Conservative Party, that simply enrich corporations while Canadians struggle every day.

Mr. Speaker, I think what my hon. colleague and I agree on is that Canadians need immediate relief and need help with the affordability crisis. I pointed out, and quoted statistics on this, that the policy of the Liberal government to cut the excise tax on oil and gas has not resulted in that. That is not just my opinion. It is the numbers; it is the math. I quoted that the price of gas the day before the Liberals dropped the excise tax back in April was lower than it is today. The prices are much higher today at the pump, and there was no mechanism whatsoever to ensure that oil companies did not just raise prices when the excise tax came down. That was a criticism we raised at the time, and it is probably a mechanism that should be put in this legislation as well to make sure that every penny of this tax relief goes to consumers. That might actually help Canadians, but this legislation does not require it.

Mr. Speaker, it is very easy math. In fact, it is not just math. It is what has actually happened in the last five months. When the tax was cut at the pump, nothing stopped oil companies from bumping up prices, so the consumer ended up paying more anyway. That is what we are talking about, and there is no price control on the oil companies whatsoever. Here are the statistics taken from the Statistics Canada website. This is what the government says. On the day the tax suspension took effect, the national average price of gasoline was $1.69 per litre. Today, it stands at $1.83 per litre. I think it is pretty obvious that if we are paying $1.83 a litre today and were paying $1.69 a litre before this policy came in, we are paying more for gas today. The policy has failed.

Mr. Speaker, my hon. colleague is absolutely right. The intentions of this policy may have been good, but the execution has failed miserably. People are paying 14¢ per litre more today for gas than they were before the government decided to give $5 billion in a cut to the fuel excise tax. That is because oil companies pocketed the difference. Here is another piece of math, and it is a matter of public record. Oil and gas companies are on course to making $90 billion in profit this year. Where did the $5 billion go? It did not go into the pockets of people who were filling their tanks. They are paying more today. Oil companies are making more. It is clear where the money went, and that is why the NDP is pushing for a windfall profits tax to take a piece of those profits from the oil and gas industry and then direct that money to the Canadians who really need it.

Mr. Speaker, the real nature of the current government is starting to appear: Shovel money at corporations and attack the rights of workers. Today, the Liberals will introduce legislation that would undermine collective bargaining in Canada. They want to eliminate workers' constitutional right to strike. The New Democrats know that to truly build Canada strong, we need a healthy and respected working class. It is workers who build this country and keep it moving. Why are Liberals intervening for wealthy investors, instead of standing with workers, who want fair and safe workplaces?