QUESTION PERIOD — Finance
Fiscal Transparency
June 16, 2020
Honourable senators, the Trudeau government shut down the House, shut down the Senate and dismissed the notion of financial transparency. One morning last week it was reported that we could get an economic update this summer, but then the Prime Minister came out of his cottage, down the cottage steps, and shut that update down as well. He actually told Canadians an economic update would be “an exercise in invention and imagination,” similar to the budget balancing itself.
Saskatchewan brought forward its provincial budget yesterday; Ontario released an economic and fiscal update on March 25; and New Brunswick did so last month. Leader, if provinces can get a handle on their government spending during this crisis, why can’t your federal finance department do the same?
Again, thank you for the question. There are aspects, though, of the assumptions with which I respectfully disagree.
The government did not shut down the Senate. The Senate voted to suspend on March 13. His Honour, within his jurisdiction and taking into account the public health imperatives I described earlier, extended that for a period of time. The Senate was recalled, as we all know, and I’m sure those of us who can be here are pleased to be here and wish that circumstances had allowed us all to be together. The government did not shut down accountability, as I described in my earlier response.
To your question, it is true that some provinces have made attempts and offered some projections, but the situation of this government is fundamentally different from that of each and every provincial or territorial government, important though their work is and significant though those expenditures during this crisis are. The fluidity of the situation, the uncertainty with which government has to grapple in ensuring that Canadians who are struggling to make ends meet continue to have the support they need, that businesses that are struggling continue to have the support they need so they can survive this period and return and rebound healthy, and that the economy generally can be stabilized and returned to health once this period is over — and when that period will be over, we do not yet know — explains why the government has not yet provided us with an update, because it is still working on trying to get a handle on those numbers.
At the same time, the government has been completely transparent from day one in terms of what it is spending, what it is spending on, and why it is spending. It has come to this chamber and to Committees of the Whole; ministers have been here; ministers have appeared before committees here and in the other place to explain and to be grilled on the decisions they have made.
My understanding is that the government, as soon as it feels that the numbers can serve a useful purpose other than political purpose, will be providing that update to Canadians.
Honourable senators, perhaps I will build on the last comment, that an economic update will serve a useful purpose. This is taxpayer money, so at every turn it’s incumbent upon government to be absolutely transparent and clear. On that note, I have a question for you, leader.
When the Parliamentary Budget Officer appeared before our National Finance Committee three weeks ago, he repeatedly emphasized that the government’s current level of spending is not sustainable for more than a few years. The PBO also said:
. . . these measures have to be temporary, and they will have to be allowed to sunset. Otherwise we would be looking at a level of taxation that has not been seen for generations in this country.
Last week the Prime Minister said, “. . . transparency during a time of crisis is extremely important.” Those were his words.
Leader, four hours of debate are scheduled tomorrow in the other place for approximately $87 billion in spending. This hardly seems sufficient to provide real transparency and accountability for taxpayers. Do you support this chamber conducting a much more thorough review of your government spending to do our work as the chamber of sober second thought?
Thank you for your question, senator. And thank you for the bridge to your question, because it allows me to repeat that the government — despite the difficulty they have in providing the update that is being requested at this juncture, as things are moving so quickly — is firmly committed to transparency and has demonstrated that by the appearance of ministers in this place and in the other place.
To your question: We passed a motion a few moments ago to authorize our Finance Committee to conduct a study and report to this chamber on the current estimates and supplementary estimates. As is the practice, we did not put them on a short leash. They will have the time — in fact, they have many days — to dig deeply into those.
In addition to the normal practice when we deal with the estimates, we are prepared to make available, for the benefit of senators here and those who are watching, the President of the Treasury Board, Minister Duclos, for a Committee of the Whole. The fact is that the process that is being contemplated in the Senate is a fulsome and rigorous opportunity for senators to scrutinize the estimates and supplementary estimates, as is our responsibility to do.
History has shown that this government prefers tax increases to spending cuts. In 2017, a review to target wasteful spending and inefficiencies in three departments actually resulted in new expenditures.
Since this Liberal government came to office, it has imposed higher taxes on small business owners, clawed back tax credits for type 1 diabetics, increased the CPP payroll and EI premiums, and brought in a carbon tax that has been a nightmare for our agriculture sector.
Leader, has the Department of Finance begun looking at new ways to increase taxes for individuals and businesses, given the incredible spending and debt we are incurring during these extraordinary times? Has the Canada Revenue Agency, Treasury Board or any other department begun this work? Will your government be transparent with Canadians with respect to its plans for any new taxes?
It is the position of the government that it has been, and will continue to be, transparent with Canadians vis-à-vis its plans. The government, I am advised, is acting responsibly in terms of trying to manage this crisis in a way that protects the well-being of Canadians, workers and their families, as well as businesses, through the engine of our economy. Regrettably, it is simply still too early, because we all wish we could say, “We’ve turned the corner and the end is in sight,” but it is not.
Alas, it remains the case that the government remains focused on doing what it can to ensure that the virus does not spread further or accelerate in its spread, even as the constraints on aspects of our economy and social life are relaxed. The time is simply not yet opportune for the government to consider tax cuts or increases. The focus of this government remains on ensuring that Canadians, the economy and the social life that makes up our lives together can get through this crisis in an appropriate and responsible way.