With Parliament resuming after the winter break, Prime Minister Mark Carney has unveiled a boost to the GST credit as part of a suite of new affordability measures.
Carney made the announcement in Ottawa on Monday, launching what’s called the “Canada Groceries and Essentials Benefit.”
“Canada’s new government is acting today to provide a boost to those Canadian families who most need one, while creating a bridge to longer-term food security and affordability,” Carney said.
Starting in July, the quarterly GST payments will see an increase of 25 per cent over the next five years, and will also include a one-time top-up of 50 per cent this year.
What you can expect
According to the federal government, a family of four will receive up to $1,890 this year with the increases, compared to $1,100 a year as the credit exists now. That same family would later see about $1,400 a year over the next four years.
A single person, meanwhile, would receive up to $950 this year compared to $540, and about $700 a year for the next four years.
The new measure, which the federal government says will impact more than 12 million Canadians, was not included in the budget last fall.
Poilievre says Conservatives will support GST rebate
Carney’s affordability announcement comes as Conservative Leader Pierre Poilievre continues to push the federal government on the issue.
In an open letter to the prime minister over the weekend, Poilievre offered his party’s help to “turn rhetoric into reality, by fast-tracking policies you have long delayed,” with affordable groceries being among the issues highlighted.
Speaking to reporters on Parliament Hill on Monday, Government House Leader Steven MacKinnon urged Poilievre to “get out of the way” and help get bills passed during this next Parliament sitting.
“Mr. Poilievre stated that he would fast track ideas that make food affordable. He has that chance with these brand-new affordability measures,” MacKinnon said.
During question period on Monday, Poilievre said his party would support the rebate, despite Opposition House Leader Andrew Scheer calling it a “recycled Trudeau-era policy” earlier in the day.
Scheer later reaffirmed the Conservatives’ support in an interview with CTV’s Power Play with Vassy Kapelos on Monday, saying the party will “allow it to pass,” as long as the Liberals “bring a clean bill to Parliament” without any add-ons.
“That doesn’t mean that we think this is the best approach. This is a temporary measure,” Scheer added.
Carney, meanwhile, told reporters on Monday that he is “focused on results for Canadians,” and is not considering a snap election when pressed multiple times.
New measures to tackle food insecurity
In addition to the GST credit, Carney announced $500 million from the government’s Strategic Response Fund will go directly to food suppliers that he says will help them “expand capacity and increase productivity.”
An additional $150 million, meanwhile, will be put towards a new Food Security Fund for small- and medium-sized businesses to help lower the cost of food production.
The federal government is also providing $20 million to the Local Food Infrastructure Fund to support organizations such as food banks, while also working to develop a National Food Security Strategy.
“This strategy will include measures to implement unit price labelling, so you can easily shop and compare in this era of ‘shrinkflation,’ as well as support for the work of the Competition Bureau in monitoring and enforcing competition in the market including across supply chains,” Carney said.
Unit price labelling shows how much a product costs per standard measurement and allows consumers to compare similar items and brands.
According to the latest Statistics Canada figures released last week, food prices rose five per cent in December year over year, with coffee up 30.8 per cent and beef up 16.8 per cent.
Inflation among top issues for Canadians
Nanos Research polling released last week highlighted jobs and the economy as the most important issue for Canadians at 18.3 per cent, followed by U.S. President Donald Trump and U.S. relations at 13.4 per cent. Inflation rounds out the top three at just under 10 per cent.
And while Carney has a strong advantage for preferred prime minister – leading with 51.3 per cent while Poilievre came in at 25.3 per cent – the Liberals (38.8 per cent) have just a four-point lead over the Conservatives (34.8 per cent).
“The Liberals are strong on Trump and tariffs. The Conservatives are strong on cost of living, groceries and stuff like that. That’s part of the Pierre Poilievre brand,” Nanos Research founder Nik Nanos said in an interview with CTV National News. “So it looks like the Liberals are trying to hone in on that in order to try to get an advantage over Pierre Poilievre.”
Nanos also said young people are “more likely to be focused on the cost of living.”
“Young people are more likely to report that they’re struggling to pay for the groceries or to pay for housing. Interestingly, young people are also more likely to vote Conservative. This is counter to 40 years of the polling trend where young people usually vote for centrist, centre-left parties,” Nanos added.
With files from CTV News’ Senior Political Correspondent Mike Le Couteur and CTV News’ Spencer Van Dyk
