GST holiday and $250 check | “Who is flying the plane in Ottawa? », asks Senator Clément Gignac

(Ottawa) Senator Clément Gignac, former Minister of Economic Development of Quebec under Jean Charest, wonders who, the Liberal Party or the New Democratic Party, is responsible for the government. Although he is ready to vote for the GST holiday, he believes that the government must put its $250 checks on ice because of Donald Trump’s threats.

“First of all, it’s poorly designed, it’s wasteful and I’m not sure we need that in the absence of customs tariffs,” he said in an interview. And if we ever have a rate of 25%, we will be forced to do much more than that. »

United States President-elect Donald Trump threatened earlier this week to impose tariffs of 25% on Canadian imports as soon as he takes office in January, raising fears of a severe recession. If he carries out his threat, the government will need billions to stimulate the economy. The checks will cost the public treasury a total of 4.7 billion.

“We are going to need more than $250 per worker to offset the recessionary effect,” argues the economist who sits in the Upper House with the Canadian Senators Group.

He is pleased that this measure is not in Bill C-78 by Finance Minister Chrystia Freeland, tabled yesterday and which must be adopted quickly by the House of Commons on Wednesday evening. The minority Liberal government had to withdraw it because it did not have the support of the NDP.

The measure announced last week had aroused the anger of retirees who are excluded. It should be introduced at a later date. The New Democrats are demanding that the checks also be distributed to retirees, people with disabilities, students and other people who were unable to work in 2023, such as people on sick leave.

The Bloc Québécois also demands that retirees be entitled to these $250 checks.

Elected officials will therefore only vote on the two-month goods and services tax (GST) holiday on a host of useful products in the run-up to the holidays, which will come into force on December 14.

“Justin Trudeau announced fake, irresponsible, inflationary and electoral gifts to save his skin,” denounced Conservative leader Pierre Poilievre at a press briefing on Thursday. His party will vote against it even if it means being called “grumpy” by the Liberals.

The Bloc Québécois also indicated it would vote against it, but it is expected to pass with the support of the NDP. Once passed, the bill will be sent to the Senate where it is expected to pass through all legislative stages relatively quickly.

Senator Gignac intends to support it even if he finds this maneuver precipitous.

“Yes, inflation may be back to where it was before the pandemic, but the cost of living is 23% to 25% higher than it was four years ago years,” he explains.

Ontario plans to follow suit and in turn give a sales tax holiday. In Quebec, the Legault government will not grant QST leave unless the federal government offers it financial compensation, which Ottawa does not seem ready to do.

With Tommy Chouinard, The Press