‘Inflationary Scheme’: Opposition Parties Criticize Liberals’ Fall Economic Statement

Conservative Party Leader Pierre Poilievre rises during Question Period in the House of Commons in Ottawa on Sept. 28, 2022. The Canadian Press/Adrian Wyld

Opposition parties are criticizing the Liberal government’s fall economic statement released yesterday, with Conservative leader Pierre Poilievre calling it an “inflationary scheme.”

“We had two demands: no new taxes on workers and seniors and no new spending unless matched by equal savings,” said Poilievre in the House on Nov. 3.

“Today, this inflationary scheme, triples, triples, triples the tax on home heat, gas, and groceries, and adds $20 billion of inflationary spending that will drive up the cost of living.”

Finance Minister Chrystia Freeland delivered the federal government’s economic statement in the House of Commons on Nov. 3. Freeland announced $30 billion in more spending this year and said the government is forecasting the deficit to come down to 1.3 percent of Canada’s $2.8 trillion economy.

“As the Bank of Canada fights inflation, we will not make its job harder,” Freeland told the House.

Freeland also outlined the federal government’s new plan to permanently eliminate federal student and apprentice loan interest starting in April 2023, for both new loans and those in repayment status.

Provincial student loans, such as the Ontario Student Assistance Plan, or OSAP, will not be included in the plan.

NDP leader Jagmeet Singh also criticized the Liberals’ strategy, telling reporters on Parliament Hill on Nov. 3 that the economic statement didn’t go far enough to bring down the cost of living.

“We don’t see the government understanding Canadians’ needs,” he said.

‘Out of Money’

Poilievre further criticized the government’s economic statement, saying that past spending has put “burdens on Canadians.”

NDP Leader Jagmeet Singh rises during Question Period in the House of Commons on Parliament Hill on Feb. 25, 2021 in Ottawa. Justin Tang/The Canadian Press

“Canadians are out of money, and this prime minister is out of touch,” he told the House Thursday.

“We’re going to inherit this mess, all of us. We’re going to have to fix the problem.”

Minister of Families Karina Gould responded to Poilievre’s criticism by saying that his lack of support for the economic plan means he also doesn’t support “students across this country” or “the Canada workers benefit.”

Shortly after, Singh also told reporters that the NDP are advocating for a windfall tax, which would increase taxes for companies that see sudden spikes in their profit margins, and also said his party would support the government in voting to adopt the economic statement’s plans.

A reporter said to Singh, “You’re advocating for more spending at a time when that carries its own risks.”

“What we’re proposing is a very practical and prudent way to pay for real help to Canadians,” Singh replied, adding there’s a need to “make sure it doesn’t increase the inflation in any way.”

Rahul Vaidyanath and The Canadian Press contributed to this report.