QUESTION PERIOD — Finance
Small and Medium-Sized Businesses
December 6, 2022
My question is for the Government Leader in the Senate.
Last week, the Senate Banking Committee heard from Kevin Page, the former Parliamentary Budget Officer, who told the committee that an expected winter recession will hurt small businesses significantly. In fact, the combination of three factors will hurt small businesses, the backbone of the Canadian economy: a recession, high interest rates and inflation. Those mean higher costs for businesses and less money for consumers.
Mr. Page confirmed this, saying:
. . . That will hurt small businesses significantly because, with these higher interest rates, people will not want to use credit to go out and spend.
This recession will be caused by high interest rates, which are the direct result of the reckless spending by the Liberals. Leader, what is the government’s plan to help small businesses that will suffer in 2023?
The Government of Canada has demonstrated that it has been here for Canadians, small businesses, workers and others throughout all of the dislocations that have occurred as a result of the pandemic and the rising costs of living, which includes rising interest rates. The government will continue to be there for businesses and others as circumstances unfold.
The good news is that Canada’s economy is in a good, strong position. Our fiscal position is solid and strong. Canada will have the capacity to provide assistance where appropriate.
In addition to higher costs caused by inflation and higher interest rates, the government will hurt small businesses by increasing energy costs and payroll taxes. It seems the government is either deaf to the demands of the business community or has no interest in helping small businesses.
Leader, why won’t the government cancel its planned hikes of carbon and payroll taxes that will hurt small businesses?
Thank you for your question.
As I have repeated on several occasions in response to this question, the government is of the view that its price on pollution and the other measures that are in place to secure and sustain the sustainability of those funds and programs that Canadians depend upon for their security are correct, prudent and responsible measures. It will continue to act accordingly.
