LIVE: Prime Minister Mark Carney Holds Press Conference in Ottawa on Key Issues | DWS News | AC14

Thank you very much. Good morning, everyone.

Merci, Monsieur le Ministre. Thank you, François-Philippe. Thank you, colleagues, for being here. Dave, Donnie, thank you for welcoming us here to this remarkable establishment that has served the people of Nepean, of Ottawa, for over 30 years — 34 years and counting.

It is a pleasure to be here with my colleagues from the National Capital Region. Anita, again — Anita, where are you? There you are. Yep. Thank you for having us here, and Dave and team again for welcoming us. Look, we're in a situation where, and Canadians know this, the world is rapidly changing. That's leaving a cloud of uncertainty and worry hanging over all of us — Canadian businesses, Canadian workers, Canadian families. Our government's focused on what we can control, and that starts with building a stronger, more resilient Canadian economy, so Canada is less reliant on a single trading partner and we are more resilient to global shocks. What happens outside of our country...

So, we're starting to fundamentally transform our economy, building a stronger, more resilient, more independent Canada. It's already getting results. Dozens of new partnerships abroad, launching Build Canada Homes, fast-tracking major nation-building projects. Our economy — Canada's economy — has created 190,000 jobs on net since August. In absolute terms, that's more than the United States over the same period.

We have the right plan. The world is knocking at our door, and momentum is building.

But as the Minister of Finance just said, the biggest payoffs will take time. And many Canadians are feeling the pressures right now of everyday expenses.

Canadians need a boost today and a bridge to tomorrow.

And that's why Canada's new government has been relentlessly focused on making life more affordable for Canadians. On day one, we cancelled the consumer carbon tax, bringing down gas prices by 18 cents a litre. We then cut taxes for 22 million middle-class Canadians, saving a two-income family up to $840 this year. We've cut taxes for first-time home buyers, saving them up to $50,000 on their first home purchase. Out east, we've reduced tolls for vehicles on the Confederation Bridge, cutting them from over $50 to $20, and cut fares by 50% on ferries in Atlantic Canada. As the Minister just mentioned, we launched automatic federal benefits, which will help 5.5 million lower-income Canadians get the benefits to which they are entitled, like the disability tax credit, and indeed the new measures that we're announcing today.

We made the national school food program permanent, feeding 400,000 children healthy meals while saving their parents $800 per year on groceries.

We also have a series of initiatives that will improve affordability by making structural changes to our economy. That's like building lots of affordable housing through Build Canada Homes.

And last week's new strategic partnership with China will make available tens of thousands of affordable electric vehicles in Canada.

Now, bigger picture, overall inflationary pressures are easing. The consumer price inflation rate is back in the Bank of Canada's target range, and average wages in our country have consistently grown faster than the rate of inflation since this government took office.

Fees for child care across Canada have dropped by around 35% over the last three years thanks to our child care program. The average cost of cell services has fallen by more than 40% since 2020 — that is, if you're able to switch plans. Gas prices have dropped by 14% from where they were a year ago, helped by that elimination of the consumer carbon tax. That's all good news. And with our economic plan kicking into gear, there's more good news on the horizon.

But at the same time, for many Canadians, the cost of groceries and everyday essentials has been too high for too long. They need more support now.

The pandemic caused inflation to spike worldwide, pushing up those costs of groceries and essentials, including rent. Global supply chain shocks, subsequently shocks caused by tariffs, weather events from our changing climate, and geopolitical disruptions have caused food prices to rise faster than overall inflation. So, orange juice is up 12% year over year, ground beef up 19%, coffee and tea up by 24%.

So last week, just a few days ago in Quebec City, our cabinet convened and we focused on how to make life more affordable for Canadians now, and also how to tackle the root causes of food insecurity in Canada. Those deliberations included a long conversation with Kirsten Beardsley, the CEO of Food Banks Canada, to talk about these critical issues and what different levels of government can do to address them.

You know, one of the best things — and there are many great things about our country — but one of the best things about our country is that we look out for each other, that we believe our economy is strongest when it serves every Canadian.

So, we're acting today. 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.

Everyone pays the same GST on items that they buy, no matter how much money they make.

But since groceries and other essentials make up a larger share of the budget of lower-income Canadians, the GST puts a higher burden on those less well-off. The GST credit has helped to make our tax system fairer by returning a portion of the federal sales tax to Canadians with lower incomes, providing relief for people who feel the extra cost at the checkout most acutely.

The rise in food prices means that a lot of these Canadians need more support right now. So today, we're announcing that our government is launching the new Canada's Groceries and Essentials Benefit.

This will deliver hundreds of dollars more into the bank accounts of more than 12 million Canadians. Starting this year, we're taking the existing GST credit amount and raising it by 25% for five years. And in addition, we're providing a one-time payment equivalent to 50% of the GST credit this year. So, what does that mean? Well, right now, a family of four receives about $1,100 a year with the existing GST credit. With the new Canada Groceries and Essentials benefit, that same family will receive up to $1,890 this year and about $1,400 a year for each of the next four years. A single person receives about $540 a year with the existing credit. With the new benefit, that person will receive up to $950 this year and about $700 a year for the next four years.

On average, these payments make up for the higher level of food prices since the pandemic.

In parallel, we're working to address the root causes of inflation and working on longer-term solutions to bring down the cost of groceries in Canada. That starts by improving the resilience of our supply chains.

Because when issues arise in supply chains — from transportation to processing to distribution — costs rise at every step along the way. And these costs end up on grocery bills. Tariffs, for example, are part of that problem. In September, the government launched what we called a new strategic response fund to help sectors across our economy, those impacted by tariffs, to adapt, to diversify, and to grow. And today we are committing $500 million from this fund to support capital investments to help food businesses expand capacity, increase productivity, and strengthen our food supply for the future.

In addition, our regional tariff response initiative will provide $150 million for small and medium-sized enterprises to do similar things. This will mean more resilient supply chains, more greenhouses, more abattoirs that are closer to customers, and most importantly, will help mean lower food prices and better food security for Canadians.

To address the root causes of food security, we're developing a new national food security strategy that strengthens domestic food production, improves access to affordable, nutritious food. The strategy will include measures to implement unit label pricing so Canadians can compare easily in this era of shrinkflation.

We're also going to provide support for the Competition Bureau in monitoring and enforcing competition in our market across the supply chain.

And we will include new measures to strengthen food security in the north, where food insecurity and affordability challenges are felt most intensely.

To ease immediate pressures for food banks, we're providing $20 million in a top-up to the Local Food Infrastructure Fund. This will help boost community food programs and deliver more nutritious food for families in need.

Canadians are generous people. We take care of each other, particularly in times of need. We know we're stronger together.

And during this time of global turmoil, Canadians are coming together to build Canada strong, to build a more independent, secure, and prosperous country — a country that works for all.

And we know that getting there will be tough at times. We know that progress won't always move in a straight line. So we know that in times like these, we don't just have to look out for ourselves. We have to take care of each other. And that starts with everyone being able to put good food on the table. That's why the government's working relentlessly to make life more affordable for everyone. That's why we're stepping up today to help people who need it the most.

Because we can't control what other countries do, but we can control how we support each other during tough times. We can control what we build so that these times will be better in the future. We choose to build Canada strong for all Canadians. Thank you very much, and I look forward to your questions.

Well, I think the first thing is that my comments in Davos laid out how we see the world, a recognition of how the world has changed. I think a point that Canadians understood months ago. In fact, I think Canada understood the scale of the change, the change in US trade policy, what it meant for our economy. We understood that well before other countries, and we started to react — controlling what we can control, building at home, and very importantly, diversifying our trade partners abroad. That second bit is a positive thing; it's finding new partners. I mentioned in my remarks 12 new trade and security agreements in the past six months across four continents, more to come. For example, the commitment with India to work together is just one of many. And all of that builds our strength here at home, provides more opportunities, makes us less dependent on the United States.

Last point: we are entering soon a negotiation or review, formally, of CUSMA — our agreement, as you know, with the United States and Mexico. It'll be a robust review, is the expectation. The President is a strong negotiator, and I view — I think some of these comments and positioning should be viewed in the broader context of that.

So let me be absolutely clear with respect to the contribution. What everyone should recognize — Canadians recognize — and we are fundamentally grateful for the extraordinary contributions of the men and women of the Canadian Armed Forces in a variety of theaters, including very much Afghanistan.

We were the first to invoke Article 5. We were the first to send support after 9/11 to New York City. We sent 40,000 Canadian troops serving over 13 years on the front lines in Afghanistan, in Kandahar as one example. 158 of those soldiers paid the ultimate sacrifice. One of our diplomats paid the ultimate sacrifice. Thousands more were injured. 30 of our soldiers won the American Bronze Star for service in combat, for courage in combat. It's an extraordinary contribution for liberty, for freedom, for human rights, defending the United States, defending Canadian values. Everyone should recognize that all Canadians are in their debt.

Now, I think you had a second part, but I...

I thought from the start the following, which is — and this is a point, by the way, I made at the NATO summit in June — the importance of reinforcing Arctic security across the entire Arctic theater, to use that term, which very much includes Greenland, northern Arctic, the Nordic countries as well. It has been the view of this government that NATO has not put enough emphasis on that. Canada's putting emphasis — since we've come into office, we've put emphasis on that — and that the solution to the security needs of Greenland, but the entire Arctic region, is coordinated through NATO. First and foremost, Canada will take responsibility for our Arctic, but working in conjunction with others. We have close and deepening cooperation with the Nordic-Baltic 8 group of countries. I've met with the NATO Secretary General on a couple of occasions — on three occasions now — about this issue, and I think by reinforcing that security umbrella, it addresses the fundamental needs of those countries, Denmark addresses the fundamental needs of Greenland, helps support security in Canada. So that aspect is very much taken care of. Thank you.

I mean, I think in this role, you get called a lot of things a lot of time, and I'm not going to comment on every tweet or Truth Social post or comment from whoever. So, I can handle it.

But I do think this point about our troops is fundamental, and respecting our troops and the contribution that they've made.