Quebec caps the increase of several tariffs at 3% in 2023

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Qu&eacute ;bec caps the increase of several tariffs at 3% in 2023

Quebec Finance Minister Eric Girard announces the capping of certain rates for 2023.

To help Quebecers cope with inflation, the Minister of Finance, Eric Girard, announced that the government will cap the indexation of certain rates at 3%. This measure will be in place from January 1 to December 31, 2023.

The limitation of fare indexation will cover driving licenses, registration fees and the contribution at CHSLDs for private and semi-private rooms. The Council of Ministers is expected to adopt a regulation to this effect today.

As for Hydro-Quebec's rates, they will be covered by another regulation, Mr. Girard explaining that the Crown corporation has its own system of governance.

Without the intervention of Quebec, the planned rate indexation would have been 6.4%, warns Eric Girard.

The Minister of Finance notes that this measure which caps rate increases will cost 331 million dollars to the state. Further indexation caps at 3% are also planned by June 30.

Mr. Girard explains that this will help fight inflation. According to him, indexing certain tariffs to 6.4% would have pushed inflation up. The 3% limit precisely helps to limit inflation. By helping Quebecers, we are also helping the Bank [of Canada], he insists.

The cost of living is a concern for Mr. Girard. He notes that his role as Minister of Finance is to listen, analyze and recommend the best measures to help Quebecers. Some people have asked him, for example, to cap the price of alcohol or gasoline. By instead capping the rates, Mr. Girard believes he has found the best measure.

He maintains that the measures that the Government of Quebec has put in place, such as the one-time amount, the cap fares and assistance for seniors will offset some of the negative effects of inflation.

Moreover, the “vouchers” will help taxpayers compensate for the increased cost of the basic consumer basket. This one-time amount is calculated based on the average increase in the price of essential goods: housing, food, transportation, clothing.

The checks will thus make up the difference between inflation and indexation,” says Girard. According to the Minister of Finance, they should help 90% of Quebecers.

He adds that the economic slowdown will also help stabilize inflation. The peak of inflation is behind us, says Mr. Girard. We see it in the price of goods. He believes that we can anticipate that inflation will decrease in 2023.

However, he still thinks that Quebec has a 50% chance of ending up in a recession. But he says in the same breath that there is a 100% [chance] of weaker growth in 2023 than in 2022. Indeed, growth should be around 0.0%, and oscillate between a slight positive growth or negative. This should help reduce inflation.

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