VANCOUVER -- Inflation and what the federal government can do to help Canadians weather rising costs took centre stage Wednesday as the Liberal cabinet gathered for a second day of meetings in Vancouver.
With the Bank of Canada once again raising the interest rate for the fifth time since March, to 3.25 per cent from 2.5 per cent, Deputy Prime Minister and Finance Minister Chrystia Freeland said cabinet will be talking about what the federal government could do to address cost of living concerns without exacerbating inflation.
"When it comes to our government's approach, we are going to continue to take a balanced and careful approach as we have done all of this year. We understand that the most vulnerable in our society need to be supported," said Freeland.
"We also understand right now that our government has a real responsibility to be fiscally responsible, and that was one of the guiding principles of the budget in April. And that is going to be an approach that we continue to take."
Freeland suggested that Canadians "have real confidence" in the long-term, however, pollster Nik Nanos said that based on his research, consumer confidence in the country is "underwater."
"Canadians are feeling the squeeze when it comes to interest rates and the cost of living," he said in an interview with CTV National News.
Ahead of the House of Commons resuming on Sept. 19, the cabinet has convened to talk about priorities and iron out its plans for the fall. The three-day cabinet retreat got underway Tuesday evening, with Prime Minister Justin Trudeau and ministers billing the event as one focused on affordability and "delivering for Canadians."
Ahead of the House of Commons resuming on Sept. 19, the cabinet has convened to talk about priorities and iron out their plans for the fall.
It remains to be seen whether the government will be announcing any new measures coming out of these meetings. Though, heading into a new parliamentary sitting to square off against a new Conservative leader, and with looming deadlines to make progress on elements of their deal with the NDP, the Liberals are aware they're under pressure to act.
"We understand the anxiety of Canadians, and that is the focus of our work here in Vancouver," said Intergovernmental Affairs Minister Dominic LeBlanc.
LeBlanc told reporters on Tuesday evening that the government is "very confident" they'll follow through on the dozens of commitments made to the NDP and that the Liberals aren't overly occupied with the incoming changes at the helm of the Official Opposition, who reacting to the interest rate news focused their critiques on “Trudeau and his NDP allies.”
“Despite being warned that out-of-control spending would continue to put enormous upward pressure on inflation and interest rates, Justin Trudeau and his NDP allies have refused to change course,” said Conservative MP and finance critic Dan Albas in a statement.
Speaking to reporters in Halifax, where his caucus is holding a pre-Parliament strategy session, Singh said his party is gearing up to “force” the government to follow through soon on some key pillars of their agreement which he said would help buoy some Canadians through the current cost-of-living crunch.
"New Democrats have been hearing from people across the country throughout the summer, and what has become very clear is that people are having an incredibly difficult time putting food on the table, paying their bills, things are getting very difficult,” Singh said.
Citing examples of what other countries have done in the face of high inflation, such as direct financial supports in Spain and the United States’ Inflation Reduction Act, Singh said he’s “demanding” the government put in place new measures.
"Here in Canada, Justin Trudeau and the Liberals have been too busy saying it's better in Canada and worse everywhere else. Well, that doesn't help a family that can't afford their groceries. They've been too busy saying it's not their fault. We're not claiming it's the government's fault, but it is their fault that they don't respond by helping people," Singh said.
