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The “GST Holiday”… A Smokescreen For Scandal

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6 minute read

From the Frontier Centre for Public Policy

A GST holiday sounded like it might be a good thing, but it turned out to be a gimmick to distract us from more serious issues, writes Marco Navarro-Genie. Courtesy Ivanoh Demers/Radio-Canada

One more racket from a government that rules by racket

The Prime Minister’s proposed GST holiday and $250 rebate scheme, initially estimated at $6.2 billion, is yet another calculated ploy to distract Canadians from the ethical failures of his government. Though the rebate portion was abandoned in Parliament, the GST holiday remains a superficial gesture in a government-induced affordability crisis.

This tactic highlights the government’s willingness to appear generous (with our money) while burdening taxpayers with increased debt to mask corruption and maintain power.

At the heart of this deflection lies the Sustainable Development Technology Canada (SDTC) program, dubbed by critics as the “Green Slush Fund.”

The Auditor General recently revealed shocking improprieties within the program. The findings include that the federal ethics office reported at least 90 violations of ethics rules and nearly $400 million handed out to companies linked to SDTC board members. This gross misuse of public funds undermines the program’s goals of fostering green innovation, instead solidifying public skepticism about Ottawa’s ethical compass.

Efforts to hold the government accountable for its mismanagement have faced significant obstruction. Parliament has requested unredacted documents related to the scandal but has been met with resistance from the government. Trudeau’s administration has provided vague justifications for its refusal to comply, citing reasons such as protecting commercial confidentiality and national security.

The Speaker of the House, a Liberal MP, ruled that Parliament has the constitutional right to demand these documents. He ordered the government to release them unredacted. However, weeks have now passed, and the government continues its obstructionist tactics. Parliament has been stalled for weeks, effectively freezing legislative proceedings.

Under parliamentary rules, the House can halt all proceedings until the government complies with the Speaker’s ruling. However, the Speaker lacks direct enforcement power, leaving the opposition parties to hold the line. Last week, the government attempted to submit documents but presented them in a heavily redacted form, further eroding trust.

The standoff highlights the lengths the federal government will go to avoid transparency. By refusing to release the documents, the Liberals undermine Parliament’s authority and delay critical legislative work to protect themselves from scrutiny.

The two-month GST holiday passed with NDP support, removes the GST/HST from:

  • Prepared foods: Items like pre-made meals and restaurant dining.
  • Children’s essentials: Clothing, footwear, and diapers.
  • Select gift items: Categories remain vaguely defined.

However, basic groceries are already GST-exempt. According to food policy expert Sylvain Charlebois, the average Canadian household will save only a few dollars. This gesture is hardly a windfall in the context of surging inflation and housing costs — driven mainly by the government’s policies.

The fundamental aim of the GST holiday is not economic relief but political manipulation. By framing the Conservatives’ refusal to pass the broader $6.2 billion package as heartless, the government seeks to paint the Official Opposition as the Grinch who stole Christmas.

Liberal MPs have already taken to social media to attack the Conservatives for “denying Canadians a tax break.”

The government seems silent about the fact that the Bloc Quebecois also voted against the tax gimmick. Meanwhile, the NDP has shown a willingness to facilitate this naked vote-buying bid, further eroding its credibility as an opposition party.

The Conservatives have remained steadfast, demanding full transparency on the SDTC scandal before regular proceedings in the House can resume. This stance, however, has allowed the Liberals to weaponize affordability relief as a wedge issue.

The GST holiday’s costs, like most federal spending under this government, will disproportionately fall on Alberta, Saskatchewan, and British Columbia. These three provinces already bear the brunt of federal revenue extraction through resource wealth, only to see their contributions funnelled into vote-rich areas of central Canada to prop up an increasingly unpopular government. The move further stokes resentment in the West, damaging national unity.

How this standoff will resolve is anyone’s guess. The government appears content to drag its feet, betting that public fatigue will weaken opposition resolve. Yet it remains clear that Liberals are willing to misspend billions in borrowed money to hide how they’ve misused hundreds of millions on partisan rewards and cronies. This cynical strategy prioritizes the political survival of their arrangement with the NDP over fiscal responsibility and democratic accountability.

For democracy to function, Parliament must assert its supremacy, hold this minority government to account, and ensure transparency in the face of systemic corruption and mismanagement. The NDP’s collaboration with the offenders may make it impossible, however. Allowing the government to defy Parliament and the Speaker’s ruling sets a dangerous precedent, weakening the foundations of Canadian democracy.

Marco Navarro-Genie is VP Policy and Research at the Frontier Centre for Public Policy. He is co-author, with Barry Cooper, of COVID-19: The Politics of a Pandemic Moral Panic (2020).

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2025 Federal Election

As PM Poilievre would cancel summer holidays for MP’s so Ottawa can finally get back to work

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From Conservative Party Communications

In the first 100 days, a new Conservative government will pass 3 laws:

1. Affordability For a Change Act—cutting spending, income tax, sales tax off homes

2. Safety For a Change Act to lock up criminals

3. Bring Home Jobs Act—that repeals C-69, sets up 6 month permit turnarounds for new projects

No summer holiday til they pass!

Conservative Leader Pierre Poilievre announced today that as Prime Minister he will cancel the summer holiday for Ottawa politicians and introduce three pieces of legislation to make life affordable, stop crime, and unleash our economy to bring back powerful paycheques. Because change can’t wait.

A new Conservative government will kickstart the plan to undo the damage of the Lost Liberal Decade and restore the promise of Canada with a comprehensive legislative agenda to reverse the worst Trudeau laws and cut the cost of living, crack down on crime, and unleash the Canadian economy with ‘100 Days of Change.’ Parliament will not rise until all three bills are law and Canadians get the change they voted for.

“After three Liberal terms, Canadians want change now,” said Poilievre. “My plan for ‘100 Days of Change’ will deliver that change. A new Conservative government will immediately get to work, and we will not stop until we have delivered lower costs, safer streets, and bigger paycheques.”

The ’100 Days of Change’ will include three pieces of legislation:

The Affordability–For a Change Act 

Will lower food prices, build more homes, and bring back affordability for Canadians by:

We will also:

  • Identify 15% of federal buildings and lands to sell for housing in Canadian cities.

The Safe Streets–For a Change Act 

Will end the Liberal violent crime wave by:

The Bring Home Jobs–For a Change Act 

This Act will be rocket fuel for our economy. We will unleash Canada’s vast resource wealth, bring back investment, and create powerful paycheques for workers so we can stand on our own feet and stand up to Trump from a position of strength, by:

Poilievre will also:

  • Call President Trump to end the damaging and unjustified tariffs and accelerate negotiations to replace CUSMA with a new deal on trade and security. We need certainty—not chaos, but Conservatives will never compromise on our sovereignty and security. 
  • Get Phase 2 of LNG Canada built to double the project’s natural gas production.
  • Accelerate at least nine other projects currently snarled in Liberal red tape to get workers working and Canada building again.

“After the Lost Liberal Decade of rising costs and crime and a falling economy under America’s thumb, we cannot afford a fourth Liberal term,” said Poilievre. “We need real change, and that is what Conservatives will bring in the first 100 days of a new government. A new Conservative government will get to work on Day 1 and we won’t stop until we have delivered the change we promised, the change Canadians deserve, the change Canadians voted for.”

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Automotive

Canadians’ Interest in Buying an EV Falls for Third Year in a Row

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From Energy Now

Electric vehicle prices fell 7.8 per cent in the last quarter of 2024 year-over-year, according to the AutoTader price index

Fewer Canadians are considering buying an electric vehicle, marking the third year in a row interest has dropped despite lower EV prices, a survey from AutoTrader shows.

Forty-two per cent of survey respondents say they’re considering an EV as their next vehicle, down from 46 per cent last year. In 2022, 68 per cent said they would consider buying an EV.

Meanwhile, 29 per cent of respondents say they would exclusively consider buying an EV — a significant drop from 40 per cent last year.

The report, which surveyed 1,801 people on the AutoTrader website, shows drivers are concerned about reduced government incentives, a lack of infrastructure and long-term costs despite falling prices.

Electric vehicle prices fell 7.8 per cent in the last quarter of 2024 year-over-year, according to the AutoTader price index.

The survey, conducted between Feb. 13 and March 12, shows 68 per cent of non-EV owners say government incentives could influence their decision, while a little over half say incentives increase their confidence in buying an EV.

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