Federal budget fueling inflation
In my May 24th MP report, I shared details from the recent Parliamentary Budget Officer (PBO) report, “A Distributional Analysis of the Clean Fuel Regulations.”
The report concluded with the statement: “In 2030, the cost of the Clean Fuel Regulations to households ranges from 0.62 percent of disposable income (or $231) for lower-income households to 0.35 percent of disposable income (or $1,008) for higher-income households.”
The carbon tax and clean fuel regulations by 2030 will increase gas prices by 61 cents/litre.
After my May 24th report, a local small business owner, who produces value-added goods sold in many local grocery stores, shared some crucial data with my office.
This producer purchases bulk food items from Quebec and Atlantic Canada. His most recent shipping bill was $2,889.92.
However, what is truly alarming about this shipping bill is that carbon tax and increased fuel surcharges added up to $933.10.
This means that over 30% of this shipping bill is increased by rising fuel costs caused by policies such as the carbon tax, fuel surcharges, and other factors. This also means that this local food producer must raise their prices to consumers to absorb these increased costs.
Remember that when the goods leave this small business, they are trucked to local grocery stores where inflated shipping charges from policies like the carbon tax surcharge are added a second time, further driving up prices.
This is part of made-in-Canada inflation that the governor of the Bank of Canada has confirmed in writing to the Finance Committee.
While government policies, such as the carbon tax increase inflation here in Canada, the Bank of Canada announced this week that it is raising its benchmark interest rate to 4.75 percent to try and lower inflation.
In essence, the Bank of Canada is trying to fight against rising inflation caused by the Trudeau Liberal Government taxes and spending.
This is why former Liberal Finance Minister John Manley has described the Trudeau Liberals’ inflationary spending as “a bit like driving your car with one foot on the gas and the other on the brake…”
If you have heard that the Official Opposition Conservatives are threatening to use all Parliamentary procedural tools to delay the passage of the federal Liberal budget in Ottawa right now — this is the reason why.
For some context, PM Trudeau is proposing $60 billion of inflationary spending, on top of increased carbon taxes and the increased clean fuel standard.
All of this will further increase inflation here in Canada.
Our Conservative Leader Pierre Poilievre has called on PM Trudeau to present a plan to balance its budget in order to bring down inflation and interest rates. This also includes the Liberals cancelling any future carbon tax increases.
Our Conservative caucus is united in that we must make the Bank of Canada’s job of fighting inflation easier.
This, in turn, would allow the Bank of Canada to cut interest rates sooner at a time when many Canadians cannot afford their current mortgage payments, let alone with this latest increase.
My question this week:
Do you agree that this Liberal Government must stop fueling made-in-Canada inflation that makes the Bank of Canada’s job more difficult?
I can be reached at Dan.Albas@parl.gc.ca or call toll-free 1-800-665-8711.