Freeland unveils 'affordability plan' based on pre-existing commitments
Deputy Prime Minister and Finance Minister Chrystia Freeland has presented a multi-pronged "affordability plan" outlining how the government intends to address inflation, based on pre-existing commitments.
The measures, totalling $8.9 billion in spending this year, include planned boosts to certain benefit programs, as well as the federal government's child and dental care plans. Freeland also cited "respect" for the Bank of Canada, fiscal restraint, and creating "good jobs," as measures that will help steer the economy through the current turbulence.
"I'm confident that our plan is the right one, but I do not underestimate the economic difficulties and frankly, the uncertainty of the months to come," Freeland told the crowd during a noon-hour keynote address at Bay Street's Empire Club in Toronto on Thursday.
Freeland spoke about the state of the Canadian economy and about the federal government's next steps as it relates to measures rolling out to eligible Canadians soon.
Specifically, in signalling that the Liberals do not plan to roll out new government spending to address the current cost-of-living crunch, Freeland cited a series of "real and tangible steps" that she promised would "get inflation under control."
The federal plan meant to improve affordability includes:
- The anticipated enhancement of the Canada Workers Benefit that will see the eligible estimated three million full-time, minimum-wage workers receiving up to $1,200 more through their tax return.
- The expected cutting of child care fees for Canadian families, estimated at an average of 50 per cent by the end of the year.
- The enacting of the longstanding commitment to increase the Old Age Security pension for seniors 75 years and older by 10 per cent, providing more than $766 to full pensioners in the first year.
- The issuing of a one-time housing affordability payment providing a $500 payment to nearly one million low-income Canadians this year.
- The commitment to enact a dental care program that in 2022 will provide coverage for Canadians who earn less than $90,000, starting with children under the age of 12.
- And, the increase expected to a host of other benefits, because they are indexed to inflation. This includes the Guaranteed Income Supplement, Canada Pension Plan, the Canada Child Benefit, and the GST Credit.
The federal government has been under growing pressure to help reassure Canadians who are facing rising costs of living, on everything from gas to groceries.
All of the initiatives cited by Freeland on Thursday, stem from the last two federal budgets. Still, the finance minister suggested that the spending is still "new money for the Canadians receiving it this year."
"Now, given the uncertainty in the global economy, would it be wise for me to stand here and rule out the need for further support in the future? Of course it would not be. But, many of the most vulnerable Canadians are already receiving more financial support today than they did last year. And they will continue to receive new support in the weeks and months to come," Freeland said.
In the speech—the first major remarks from Freeland on the topic since the 2022 federal budget was tabled in April—the deputy prime minister painted a picture of where Canada stands compared to other countries.
"If the data is so rosy, if the rebound is so strong… Why don't we feel very good? Why are Canadians so worried? I think everyone here knows the answer: inflation," Freeland said. "Jobs are plentiful, business is booming, but it is also harder for a lot of Canadians to pay their bills at the end of the month."
While referencing the state of this country's jobs recovery, GDP growth and the low unemployment rate, she also noted the need to be fiscally responsible and not further inflame inflation rates.
She also said cited the impacts of the COVID-19 pandemic and the ongoing Russian invasion in Ukraine as key pressure points contributing to the current economic situation.
"Inflation is not a made-in-Canada challenge and it's actually less severe here than among our peers," Freeland said.
Amid heightened attention on the role of the Bank of Canada's efforts to combat inflation, Freeland made reference in her remarks to the importance of the central bank's independence.
She also called out those who may be undermining the institution—something Conservative leadership candidate Pierre Poilievre has been accused of—as being "highly irresponsible, not to mention, economically illiterate."
The opposition parties were quick to pounce on the deputy prime minister's remarks, with NDP Leader Jagmeet Singh—the Liberals’ key ally in a supply and confidence deal—said the plan shows the government doesn’t understand the reality being faced by Canadians who are struggling.
"For a lot of Canadians, the only thing that speech will outline that's going to help them is a $7 increase. For some Canadians, that's all they're getting," Singh said, citing the projected increase to the GST rebate. "Looking through these flyers, there's not a lot you can buy in a grocery store for an extra $7," Singh said.
"This is a serious concern that there's not the urgency that's required."
Conservative finance critic Dan Albas questioned why Freeland chose instead of delivering her address in the House of Commons, to give Canadians "a lecture from their finance minister at $1,000-a-table lunch in Toronto."
"Rather than coming forward with a plan to fight inflation, one that would, for example, give Canadians a break at the pumps… One that would be able to help them pay for their mortgage as it goes up… Chrystia Freeland re-announced programs that are already indexed to inflation," Albas said.
"Rather than helping people in their everyday lives today, instead, they have to wait until the next inflation update."
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca ÐÇ¿Õ´«Ã½
NEW Health data collected from Indigenous Peoples in Canada has a dark history. One Indigenous company is turning that around
Software company Mustimuhw Information, which develops medical records systems built on a foundation of Indigenous traditions and values, is allowing health providers to capture data informed by cultural practices.
Hezbollah handed out pagers hours before blasts, even after checks: Reuters
Lebanon's Hezbollah was still handing its members new Gold Apollo branded pagers hours before thousands blew up this week, two security sources said, indicating the group was confident the devices were safe despite an ongoing sweep of electronic kit to identify threats.
Cognitive decline reduced by MIND diet, especially for women and Black people, study finds
Following the MIND diet for 10 years produced a small but significant decrease in the risk of developing thinking, concentration and memory problems, a new study found.
The province's public security minister said he was "shocked" Thursday amid reports that a body believed to be that of a 14-year-old boy was found this week near a Hells Angels hideout near Quebec City.
An Ontario man says it is 'unfair' to pay a $1,500 insurance surcharge because his four-year-old SUV is at a higher risk of being stolen.
Federal firearm buyback program has cost $67M, still not collecting guns after 4 years
The federal firearm buyback program has cost taxpayers nearly $67.2 million since it was announced in 2020, but it still hasn't collected a single gun.
No, these viral purple apples don't exist in Saskatchewan
If something looks too good to be true, it might be. That's the message from Saskatchewan horticulturists after customers have come into their stores hoping to buy purple apple trees this month.
The Royal Canadian Mounted Police has lost 205 firearms since 2020, including machine-guns
The Royal Canadian Mounted Police has lost 205 firearms since 2020, including more than 120 handguns and at least five fully automatic weapons like machine-guns.
Influencer couple denies leaving kids alone on cruise
For most people, dinner on a cruise ship is a time to relax. But when influencer couple Abby and Matt Howard decided to kick back with a dinner à deux, they ended up kicking up a storm.
Local Spotlight
They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.
Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.
The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.
The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.
It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.
A Good Samaritan in New Brunswick has replaced a man's stolen bottle cart so he can continue to collect cans and bottles in his Moncton neighbourhood.
David Krumholtz, known for roles like Bernard the Elf in The Santa Clause and physicist Isidor Rabi in Oppenheimer, has spent the latter part of his summer filming horror flick Altar in Winnipeg. He says Winnipeg is the most movie-savvy town he's ever been in.
Edmontonians can count themselves lucky to ever see one tiger salamander, let alone the thousands one local woman says recently descended on her childhood home.
A daytrip to the backcountry turned into a frightening experience for a Vancouver couple this weekend.