Tue, September 13, 20
SAINT ANDREWS, N.B. — Liberal cabinet ministers said Tuesday the government is listening to Canadians who are struggling under the weight of inflation and entirely dismissed criticism from the new Conservative leader that they are part of a "radical woke coalition."
Prime Minister Justin Trudeau officially announced the first policies to directly respond to the cost-of-living crisis spurred by an inflation rate that has averaged almost six per cent between January and July.
Until now, the government has said it is helping through existing policies, such as child care agreements with the provinces and automatic annual increases to programs like the GST rebate and Canada Child Benefit, as well as 2021 budget promises to increase benefits for seniors and low-income workers.
Trudeau will now outline a plan to double the GST benefit, introduce a temporary dental care benefit for most families with children under 12, and provide a one-time $500 payment for low-income renters.
"We spent a lot of time listening to Canadians from coast to coast to coast this summer," Trudeau said Monday, in his opening speech to his caucus at a Liberal retreat in St. Andrews, N.B.
"We heard from parents who are worried that the high cost of groceries or eating into their savings. We heard from nurses and health-care workers, stretched, working harder than ever, feeling ground down and undervalued."
The Liberals were wary of introducing too much money into the economy to avoid driving up demand and making inflation worse. They were warned against it by several economists, including just last week by CIBC World Markets chief economist Avery Shenfeld.
He noted provinces have already begun wide-scale handouts to appease voters concerned by inflation, and warned the federal government shouldn't follow suit.
"Unless very narrowly targeted to only reach those in the most need of support to put food on the table, or even better, financed by offsetting spending cuts elsewhere, they add to the inflation pressure in the economy by increasing spending power," Shenfeld said.
Tuesday's federal announcements are targeted at lower and moderate-income Canadians.
The new inflation response plan was supposed to have been unveiled last week during a Liberal cabinet retreat in Vancouver but was delayed following the death of Queen Elizabeth II.
The Liberals have been criticized by opposition parties for months for not stepping up earlier.
NDP Leader Jagmeet Singh said in an interview that many people are going into debt to keep food on the table, and then paying higher interest rates on that debt because the Bank of Canada is raising interest rates to try and tamp down inflation.
"If you recall, as early as May we were saying to the government … those are two pressures that just make it harder for people who are already feeling squeezed. It just makes it worse," he said.
While the price of gasoline began to ease in June, the cost of basic necessities including food is up as much as 10 per cent compared to a year ago, and housing costs have also soared since the pandemic.
The new policies are all drawn from demands made by the NDP — including two that the Liberals have committed to as part of the supply and confidence agreement reached by the two parties last March.
Under that deal, the NDP agreed to support the minority government on key votes in return for the Liberals enacting some NDP priorities. Dental care and the housing benefit are explicitly included.
The NDP has also been asking the Liberals to double the GST rebate and expand the Canada Child Benefit, though those demands are not part of the deal.
"We think this is a starting point," Singh said of the announcement.
"It's something that we had fought for and we forced them to do. They would not have done this but for us, and they're not going to be able to get it passed but for us in the House. We're gonna need to have some legislation to make it happen. But we still think that (there are) other steps needed."
New Conservative Leader Pierre Poilievre is heavily critical of the supply and confidence deal, calling the Liberals and NDP a "radical woke coalition."
Liberal cabinet ministers at the retreat in New Brunswick rejected that notion.
"Frankly, I don't even know what it means to be woke," said Environment Minister Steven Guilbeault, headed into the final day of caucus meetings Tuesday.
"I'm working to serve Canadians, and Canadians have asked us for three elections in a row to do more and to do it faster when it comes to fighting climate change."
Innovation Minister François-Philippe Champagne said he is not woke, "and trust me, no one in my family believes that either."
He said the Liberal team is "fully committed to work on three things: the economy, the economy, the economy."
"That's what matters to Canadians," he said.
This report by The Canadian Press was first published Sept. 13, 2022.
Mia Rabson, The Canadian Press
Trudeau announces first steps on dental care, boosts to housing benefit, GST credit
Tue, September 13, 2022
Prime Minister Justin Trudeau has announced new measures to help Canadians struggling with the rising cost of living — part of his government's deal with the New Democrats to secure parliamentary support for the governing Liberals until 2025.
The Liberals say they will be rolling out the first stage of a dental care program, boosting the GST tax credit and providing a one-time increase to the Canada Housing Benefit.
"Our government has been hard at work on a plan that will deliver relief to millions of Canadians," Trudeau said in St. Andrews, N.B. on Tuesday, where he is attending a Liberal caucus retreat.
"Today, we're announcing additional targeted new measures that will support the middle class and people working hard to join it. These will be the very first pieces of legislation that we introduce when the House returns."
The announcement was supposed to have been made on Sept. 8 in Vancouver, during a Liberal cabinet retreat. The sudden death of Queen Elizabeth II delayed its release.
The NDP pressed the Liberals to provide financial support to Canadians struggling with inflation through a boost to the GST tax credit. The Liberals voted against a motion proposing that relief back in May.
The plan announced Tuesday will see the GST tax credit doubled for six months — a move the government says will affect 11 million Canadians and families who currently receive the tax credit.
Singles without children will get up to $234 more from the credit, couples with children will get up to $467 more and seniors can expect an average boost of $225 this year.
Fruits of the Liberal/NDP deal
The Liberals also are rolling out a one-time increase to the Canada Housing Benefit, providing up to $500 to 1.8 million Canadian renters struggling with housing needs.
The Canada Housing Benefit, developed by the federal government and the provinces, launched in 2020 with joint funding of $4 billion over eight years.
The federal government said the benefit will be available to families with an adjusted net income below $35,000 — or to singles with incomes below $20,000 — who pay at least 30 per cent of their income on rent.
Earlier this year, the Liberals and New Democrats struck a deal committing the NDP to voting with the minority Liberal government in the House of Commons on confidence votes until June of 2025. In exchange, the government agreed to meet a number of policy benchmarks along the way.
The New Democrats said that at least two of those commitments must be met before the Christmas break if the Liberals want the deal to stay intact. The first was the boost to the Canada Housing Benefit, while the second is the introduction of the first stage of a dental care program.
Trudeau announced that his government is introducing a Canada Dental Benefit for children under 12 who do not have access to dental insurance.
Low- and middle-income families with a combined income of under $90,000 can access up to $650 per year for the next two years for dental services.
Trudeau said the next step will be to extend dental care to under 18s, seniors and people with disabilities by the end of 2023, before full implementation of the program by 2025.
Singh: We made this happen
NDP Leader Jagmeet Singh welcomed the announcement and said his party has been working hard since the spring to press the governing Liberals to help Canadians with the cost of living.
"We have won," Singh said in Thunder Bay, Ont., where he is attending an NDP caucus retreat. "We have forced this government to deliver three things. Each of these items would not have happened but for the fact that we forced the government to deliver on this respect for people."
Singh said more needs to be done to help Canadians struggling with inflation and his party will continue to put pressure on the Liberal government.
"We're talking about putting money back in your pockets, helping out people and that's what we've done and we're going to continue to do even more of that," he said.
Tue, September 13, 2022
Prime Minister Justin Trudeau has announced new measures to help Canadians struggling with the rising cost of living — part of his government's deal with the New Democrats to secure parliamentary support for the governing Liberals until 2025.
The Liberals say they will be rolling out the first stage of a dental care program, boosting the GST tax credit and providing a one-time increase to the Canada Housing Benefit.
"Our government has been hard at work on a plan that will deliver relief to millions of Canadians," Trudeau said in St. Andrews, N.B. on Tuesday, where he is attending a Liberal caucus retreat.
"Today, we're announcing additional targeted new measures that will support the middle class and people working hard to join it. These will be the very first pieces of legislation that we introduce when the House returns."
The announcement was supposed to have been made on Sept. 8 in Vancouver, during a Liberal cabinet retreat. The sudden death of Queen Elizabeth II delayed its release.
The NDP pressed the Liberals to provide financial support to Canadians struggling with inflation through a boost to the GST tax credit. The Liberals voted against a motion proposing that relief back in May.
The plan announced Tuesday will see the GST tax credit doubled for six months — a move the government says will affect 11 million Canadians and families who currently receive the tax credit.
Singles without children will get up to $234 more from the credit, couples with children will get up to $467 more and seniors can expect an average boost of $225 this year.
Fruits of the Liberal/NDP deal
The Liberals also are rolling out a one-time increase to the Canada Housing Benefit, providing up to $500 to 1.8 million Canadian renters struggling with housing needs.
The Canada Housing Benefit, developed by the federal government and the provinces, launched in 2020 with joint funding of $4 billion over eight years.
The federal government said the benefit will be available to families with an adjusted net income below $35,000 — or to singles with incomes below $20,000 — who pay at least 30 per cent of their income on rent.
Earlier this year, the Liberals and New Democrats struck a deal committing the NDP to voting with the minority Liberal government in the House of Commons on confidence votes until June of 2025. In exchange, the government agreed to meet a number of policy benchmarks along the way.
The New Democrats said that at least two of those commitments must be met before the Christmas break if the Liberals want the deal to stay intact. The first was the boost to the Canada Housing Benefit, while the second is the introduction of the first stage of a dental care program.
Trudeau announced that his government is introducing a Canada Dental Benefit for children under 12 who do not have access to dental insurance.
Low- and middle-income families with a combined income of under $90,000 can access up to $650 per year for the next two years for dental services.
Trudeau said the next step will be to extend dental care to under 18s, seniors and people with disabilities by the end of 2023, before full implementation of the program by 2025.
Singh: We made this happen
NDP Leader Jagmeet Singh welcomed the announcement and said his party has been working hard since the spring to press the governing Liberals to help Canadians with the cost of living.
"We have won," Singh said in Thunder Bay, Ont., where he is attending an NDP caucus retreat. "We have forced this government to deliver three things. Each of these items would not have happened but for the fact that we forced the government to deliver on this respect for people."
Singh said more needs to be done to help Canadians struggling with inflation and his party will continue to put pressure on the Liberal government.
"We're talking about putting money back in your pockets, helping out people and that's what we've done and we're going to continue to do even more of that," he said.
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