:
Mr. Speaker, this morning we notice that there is yet another international report that speaks of the need for Canada to invest in children. It is very much connected with the budget that we are debating today.
The annual UNESCO report on education in developing nations finds that the majority of countries, especially Canada, need to focus their efforts on policies that address the needs of an age group that it says is often overlooked. The report urges Canada to ensure that early childhood education is a high priority.
We know that in this budget, that is proposed for April 2007, the money for early childhood education will be eliminated. This follows a report that comes from the OECD which says that Canada is in fact at the bottom of the heap. It says that Canada has a failing grade. The report said that it is Canada's dirty little secret that we have actually tumbled down all the way to the bottom in the ranking. The report said that Canada should be investing at least $10 billion, which is the OECD goal, and 1% of the GDP as the minimum government investment.
We are at this time a dismal .03%, which is a fraction of the OECD target. It is no wonder that Canadian productivity is slipping and that Canadian businesses and industries are worried about our competitiveness and the competitiveness of our workforce. The OECD has clearly made a link between the national investment in quality early childhood education and productivity and competitiveness and growth.
I want to speak a bit about some of the kids in this country. A few years I asked children in my riding of what they would do to make the world a better place. A five-year old wrote back and drew a very cute picture. She said that she wished from God that there would be money to buy groceries.
If we think about it, Canada is a really rich county. We have children in Canada that are praying to God for enough money to buy groceries. This means that obviously in her house and in the houses of some of her neighbours and friends there is no money to buy groceries. This means that oftentimes this little girl would go to bed and wake up hungry and would not be able to concentrate at school.
We see this especially in aboriginal communities. There are boil water advisories. We know of kids that have to sleep in shifts because there is not enough room in the bed in their house for them to be able to sleep at the same time. There is often only one room and there are several children.
In this kind of situation it is inexcusable that the government in this budget would not invest in aboriginal housing and early childhood education. Any money that the government has put aside in trust is last year's budget surplus. That money came from Bill . This was the NDP budget money. These are the only dollars that the government is in fact investing in aboriginal housing, foreign aid and many other critically important areas.
I particularly remember a young person from the Dene nation. She had tears in her eyes when she talked about the sense of hopelessness that she had in her area. Yet, there are so many young people with many talents and skills to offer if they were to receive the kind of support and training that they so desperately need. These are young people who want to lead their communities and set a good example. We have not given them the tools in the budget to contribute.
On the youth employment front, I have received many letters from people in Toronto who talk about the importance of investing in young people, especially in the summer time. We know that recently there was a budget cut of at least $55 million. At this time we should be investing more on youth employment rather than cutting it.
I have a letter from Jacob Blomme, a concerned student, who talks about the job he has during the summer and how essential it is for him to have the opportunity to work in his field of study, so that he can make connections and be job ready when he finishes school. He knows that he is going to graduate with a $25,000 debt, which scares him because he is going to have to pay it back himself. Without jobs and training in his field of work, it is going to be even harder for him to find a job in the future. These are the young people of our future.
I have other letters. I have one from Canadian Crossroads International, for example, that talks about hiring dozens of young interns in recent years during the busy summer months to train young people overseas as volunteers by creating and supporting networks, working with HIV Without Borders, helping to manage the international AIDS conference in 2006, and supporting fundraising and ongoing research for organizations.
There are other organizations that say they desperately need money to invest in young people. They talk about the youth employment program standing out as a bright light of hope and empowerment in their own communities.
There are youth organizations that, because of training in the arts, were able to create many jobs, like the Fringe Festival in Toronto. There is a ticketed attendance of 47,000 people and $340,000 was given back to artists in the neighbourhood. When we invest in young people and in the arts, as a country we actually get the money back in our budget.
There is really no excuse. We know there is a surplus of $13 billion and none of it is invested in people or the future of our youth. It is the same with the new surplus of $6.7 billion. There is nothing invested to help people break the cycle of poverty or to eradicate child poverty. With the surplus, somehow the government feels it can tell Canadians they are overtaxed. It slashes programs and calls for tax cuts and yet our children go to bed hungry. I do not know whether members of Parliament know what it is like to go to bed hungry, but there are certainly a lot of those kids in this country.
If we look outside this country, we know that foreign aid is desperately in need of getting a boost in terms of investment. We know that more than 800 million people go to bed hungry around the world and 50,000 people die everyday from poverty related causes. That is why we absolutely have to increase Canadian aid by 18% annually and commit to a plan to meet the internationally agreed target for aid spending of .7% of our GDP by 2015.
We must also raise the annual Canada child tax benefit to $4,900 per child and ensure that all low income kids receive the full benefit of this program because that is in fact the demand of Make Poverty History. Think of what we could do with $20 billion. There are so many lives we could touch, but I fear the government does not get it. Perhaps it is not surprising that the government has so few women in their caucus.
The government thinks that the war on poverty is really a war on the poor. It thinks poverty is a nasty little habit that should be punished, stopped and penalized. It punishes the poor and gives tax breaks to those who do not need it. It gives the biggest baby bonus allowance to the spouses of the wealthiest people and the least to single mothers. We have a war against the poor rather than a war against poverty.
When we asked the government why it continued this track, why we were here day after day, it said it was because the Liberals were just as bad in the last 13 years. Imagine that. We had 13 years of Liberal neglect of important programs and the government used that as an excuse to reward the wealthy and punish the poor. This government seems determined to behave just as badly as the Liberals and to be even meaner in the neglect of social programs.
What kind of dumb ambition is that? That is the kind of ambition that we do not need in this House of Commons. We want to compete to be the best, not compete to be the worst, which is what is happening right now. Imagine being worse than the Liberals. I cannot even imagine that, but it is happening in front of me.
This House should rise together and demand better for refugees, children, senior citizens, women, aboriginals, immigrants, and for all of us. This budget is a sham. The poverty is real and more children are going hungry during this Parliament.
:
Mr. Speaker, I would like to split my time with my colleague from Edmonton Centre.
I am very pleased to have this opportunity to rise and speak on behalf of Bill , the budget implementation act, which, as the title indicates, is designed to implement certain measures outlined in our budget 2006.
On January 23, Canadians voted for change: a change in government, a change in fiscal accountability, and a change in fiscal management. These are changes to the benefit of all Canadians.
With that change came the direct support for our new government's five priorities. These priorities were outlined in the Speech from the Throne as well as in budget 2006, delivered by the finance minister on May 2.
On June 22, Bill , the first budget implementation act, was given royal assent and many of our fiscal promises were fulfilled. These measures included reducing the GST from 7% to 6% and introducing a $1,200 per year universal child care benefit for parents of children under the age of six.
We introduced other tax cuts as well, tax cuts that Canadians have not seen before. Our first budget cut taxes by an incredible $20 billion over two years. Yes, $20 billion over two years. Our budget offered more in tax cuts than the four previous Liberal budgets combined.
Canadians are very happy with our budget, and I am happy to say that not one of the opposition parties opposed our budget when it came to a final vote, not one. They grumbled at first, but then they studied our budget and saw the great benefit of our government's budget to Canadians. In the end, they did not oppose it, so our budget has the support of Canadians and of the opposition.
I am pleased to be here today supporting the second budget implementation act, Bill . We want to keep rolling out the tax cuts for Canadians and, in doing so, show Canadians that when we make a promise, we keep it.
The action taken with Bill will cut taxes for pensioners, families, students, users of public transit, and each and every worker in Canada. These measures will make a real difference to Canadians by focusing on their priorities, priorities like lowering taxes for working families, assisting small and medium sized businesses achieve real growth, and helping tradespeople, students, families and seniors.
In short, Bill delivers on our budget and delivers real tax relief for Canadians. This government recognizes that Canadians pay too much tax. As a colleague of mine previously reported, according to the Fraser Institute, while the average family's income has gone up 1,100% since 1961, its taxes have shot up a whopping 1,600%, outstripping the growth in income.
As I mentioned, this is a new government with a new respect for our fellow Canadians. We need only look at the measures in Bill to see exactly how we are putting more money back into the pockets of hard-working taxpayers.
Working Canadians are the foundation of Canada's economic growth. However, choosing to work also means additional costs, costs for everything from uniforms and safety gear to computers and various supplies. For some, particularly low income Canadians, these additional costs can impose a barrier to joining the workforce. For others, work related employment expenses are another factor that limits the rewards of their hard work.
In recognition of this, budget 2006 introduced the Canada employment credit, a new employment expense tax credit for employees' work expenses. A credit on employment income of up to $500 will be provided effective July 1, 2006. The amount of employment income eligible for credit will rise to $1,000 effective January 1, 2007.
Budget 2006 also recognizes that creating an environment for more and better jobs and for strong economic growth depends on having a competitive tax system. The engines of our economy, our wealth creators, are businesses, both small and large, and they should not have to face the heavy burden of overtaxation. The businesses that feel this burden most are small and medium sized businesses. They create jobs and are the backbone of our country's economy.
In my riding of , small and medium sized businesses are essential. They are the economic backbone of my riding: farms, farm equipment retailers, manufacturing, industry, pharmacies, grocers, et cetera. Without their success, ridings like mine would struggle. Many of us are employed by them. Small to medium sized business is responsible for the majority of all new jobs created in Canada. Whether we live in an urban riding or a rural riding, all of us turn to small businesses for services, and our future economic growth will depend a great deal on their success.
An important way that Canada's federal income tax system supports the growth of small businesses is through a lower tax rate on the first $300,000 of qualifying income earned by a Canadian-controlled corporation. This helps these small businesses retain more of their earnings for reinvestment and expansion, thereby helping to create jobs and promote economic growth in Canada.
With the passing of Bill , and effective January 1, 2007, the threshold for small businesses will be increased from $300,000 to $400,000. In concert, the 12% rate for eligible small business income will be reduced to 11.5% in 2008 and then down to 11% in 2009. It is estimated that these changes will reduce government taxation on these businesses by $10 million in 2006-07 and $80 million in 2007-08.
There is more.
Hon. members from all ridings know that Canada is facing a serious shortage of tradespeople: carpenters, plumbers, electricians, cooks and others. Our government is taking action to encourage apprenticeships and to support apprentices in their training.
Specifically, we will help companies hire apprentices with a new apprenticeship job creation tax of up to $2,000 per apprentice. We will create a new apprenticeship incentive grant of $1,000 per year for the first two years of a red seal apprenticeship program and other programs.
Through these actions, our Conservative government will be investing more than $500 million over the next two years, which will help approximately 100,000 apprentices.
We will also help apprentices and tradespeople with the heavy burden of buying the tools they need to do their jobs. Our government will invest $155 million over the next two years for a cost of tools deduction, which will help approximately 700,000 tradespeople in Canada.
In regard to our seniors, members will no doubt agree that some seniors struggle to live on a small fixed income. As I travel throughout my riding, I often hear seniors ask, “Why does the government not do something to help seniors, those of us on a fixed income?” I am always pleased to state that this is exactly what we are doing. We are providing real tax relief to seniors.
The most important measure involves a doubling to $2,000 from $1,000 of the amount on which the pension income credit is calculated. A deduction for the first $1,000 was introduced in 1975, but since its introduction the amount has remained unchanged. That is unbelievable.
It took our new Conservative government to do something for our seniors to rectify this problem. We recognize and understand the difficulty faced by seniors on fixed pension incomes. To provide greater tax assistance to those who have saved for their retirement, budget 2006 increased to $2,000 the maximum amount of eligible pension income that can be claimed under the pension income credit, effective for 2006 and subsequent taxation years.
The measure will benefit nearly 2.7 million taxpayers receiving eligible pension income, providing up to $155 per pensioner, but not only that, it will remove approximately 85,000 pensioners from the tax rolls. This is real action to the benefit of our seniors.
In regard to Canadian families, they are the very foundation of our society and they play a vital role in the development of our communities. This is why it is important that we reduce their tax burden as much as possible.
One of the ways we are doing this is with the children's fitness tax credit. The health and fitness of our children is very important. As the government, we want to promote physical fitness among children and we want to do it by supporting families directly.
We take families seriously and we take physical fitness seriously. Budget 2006 provides a children's fitness tax credit effective January 1, 2007. The credit will be provided on up to $500 of eligible fees for programs of physical activity for each child under the age of 16.
I am the father of five children. They are involved in fitness activities such as soccer, basketball and highland and Celtic dance. I am pleased to state that finally we have a government that listens to families, that works together with families and that helps families with their real expenses. This is a great tax credit for families. It encourages and supports physical fitness and it is my sincere hope that the opposition parties will support it.
Lastly, I would like to highlight what we are doing for students. We believe that our post-secondary students need to be supported in their hard work in pursuit of academic excellence. Currently, the first $3,000 in scholarship, fellowship and bursary income received by a post-secondary student is not taxed, but any amounts above $3,000 are taxed. Students do not need this. They do not need to be paying tax on scholarships, fellowships and bursaries. They need to use that money toward their education.
I am very pleased to highlight that our new government understands the financial challenges that post-secondary students face and that we are on their side. We want them to succeed in their studies by alleviating financial pressures, which is why Bill proposes a complete exemption for scholarship income received by students.
Budget 2006--
:
Mr. Speaker, it is a great pleasure to speak to Bill . This budget is full of good news for the people of Canada and the people of Edmonton Centre. I intend to highlight the benefits that it will have in my community.
I am very proud to represent the constituency of . This is a time of great economic growth in the province of Alberta, but that growth also comes with great challenges that must be met if we are to enjoy the benefits of growth. The vibrant and diverse people of Edmonton are up to this challenge, and I am pleased to see in this budget that the government is giving them the tools that they need for this task.
First, I would like to talk a little about the constituency of . The riding includes the downtown core as well as some of the oldest residential neighbourhoods in the city. It includes part of the scenic river valley, one of the oldest municipal golf courses in Canada, and the oldest municipal airport in Canada, Blatchford Field.
A tour of the riding will show us the Alberta legislative buildings, as well as the Royal Alberta Museum, the Art Gallery of Alberta, the Citadel Theatre, the Francis Winspear Centre for Music and the historic Hotel Macdonald. There are corporate headquarters, along with a thriving small business community and the World Trade .
We have two of the busiest hospitals in the city, as well as two of the largest post-secondary institutions in the province. There are new condo developments in historic old houses. There are many shops devoted to antiques, as well as many private galleries showing off the best that western Canadian artists and artisans have to offer.
Edmonton's menu of fine restaurants rivals any city in Canada. There are industrial areas and beautiful parkland. The area is as rich and diverse as Canada itself. There are many seniors' residences alongside condos where young families are moving to bring up the next generation.
There has always been a large immigrant community in . Where once Ukrainians came to build better lives for themselves and their children, we see the same thing happening with new Canadians from China, Vietnam, Somalia, Sudan and many other places around the world.
I would like to touch upon the importance of students and the measures that the government has taken for their benefit. At schools, like Grant MacEwan Community College, I am extremely pleased to note that post-secondary students will now have their entire scholarship, fellowship and bursary incomes exempt from income tax. For many of these students, that money represents their entire income and this will free them from having to juggle a part time job while studying for exams. More than 100,000 students will be affected by this measure.
Another institution that is important to Edmonton is the Northern Alberta Institute of Technology. This school is the largest supplier of skilled trades and apprentices in the province and supplies fully 17% of apprentices for the entire country.
Several measures in the budget will apply specifically to students at NAIT. I have been to many forums at NAIT and I have been fortunate to be part of a major funding announcement for new programs and services. I have talked to the students at these events and have listened to their concerns. People accept that tuition fees are part of getting a good quality education, but one of the single biggest costs associated with getting an education and which affects the students' standard of living is the cost of textbooks. It is for that reason that budget 2006 has instituted a new textbook tax credit. This will help students where they need it most, and this credit applies to both full time as well as part time students.
Apprentices are critical to the future of the Alberta economy and, in fact, Canada's economy. There is a surge in demand now and this government is moving to ensure that that demand is sustainable. That is why we have introduced the $2,000 job creation tax credit. Eligible employers will now receive a tax credit equal to 10% of the wages paid to qualifying apprentices in the first two years of their contracts, to a maximum of $2,000 per apprentice per year. This helps maintain a supply of apprentices by ensuring that people look at this training as a stable opportunity for future jobs. It will also encourage employers to grow their businesses with a steady supply of skilled labour.
Once the students leave NAIT, they will also receive a benefit from this budget in the form of a $500 deduction for tradespeople's tool expenses, as has already been mentioned. This measure recognizes the cost of tools beyond the $1,000 that is covered by the new Canada employment credit and provides yet another helping hand exactly when and where it is needed.
Successful students are vital to our future and are represented in the budget by several measures, but I also want to highlight another segment of our population that needs a helping hand.
Our senior citizens have lived and worked through some of the darkest times as well as the brightest. They have raised families. They have fought Canada's wars in the cause of freedom. They have started and run businesses and they have paid a lot of taxes. For too many of them, however, life is a struggle, being caught between the rock and a hard place of a fixed income and a rising cost of living.
It is for this reason that the initiative to raise the maximum amount of pension income, which can be claimed as pension income credit, is so important. Since its inception 30 years ago, the credit has been $1,000. Recently we measurably increased it to $2,000, affecting 2.7 million taxpayers and taking 85,000 taxpayers off of the tax rolls altogether. Those people have worked so hard so we can enjoy our prosperity. It is critical to know that 85,000 pensioners will no longer face the burden of income tax due to this budget, and I am extremely pleased to be able to say that.
Another new credit in the budget will help seniors, but it will also help students and all of us. I am referring to the $500 public transit pass credit. One does not have to spend a lot of time in to see how important the public transit system is to that community. Whether it is students making their way to college or school, seniors shopping for groceries or businessmen heading for downtown, the Edmonton transit system covers all parts of the constituency and is relied on by a very large number of people.
This new credit will increase ridership and, thus, also increase the frequency of services. It will also reduce the amount of air pollution that is caused by the large number of cars on the road. This is a tangible measure to conserve our environment and protect the health of Canadians and its value will be felt by those who need it most.
The budget has measures to help out the thriving small business sector in Edmonton. Small and medium enterprises are the real engine of our economy and they need a clean and sustainable supply of fuel on which to run. That fuel is capital and our new government wants to keep their tanks full.
Specifically, the government is reducing the current tax rate of 12% on qualifying small business income to 11.5% in 2008 and to 11% in 2009. In addition, we are increasing the amount of income a small business can earn before it has to pay federal tax from $300,000 to $400,000 as of January 1, 2007.
I take great pride in going back to the riding to tell business owners that we are listening to them, that we understand their concerns and that we are taking steps to help them solve their business problems and develop even more jobs and prosperity. Some of these small businesses are companies that provide tax advice to people who are fighting the high cost of living and the high cost of taxes at the same time. They are the ones who have known for a long time that there is an inherent advantage to being a small business owner when the tax man comes knocking.
There are many more deductions that people can claim and a variety of options for lowering the overall tax burden. Those who receive regular employment income rather than owning a small business have always suffered in comparison, but budget 2006 recognizes that unfairness and treats the problem properly with the Canada employment credit. The new credit covers things like personal computers, stationery, uniforms, clothing and a long list of items that people sometimes are required to purchase for their work. If they were small business owners, this would all be deductible as the cost of doing business.
Now the people who earn employment income will be recognized as well. Every Canadian who receives employment income will get up to $500 for the 2006 calendar year and $1,000 for 2007. This benefit will be felt by all working Canadians, especially the low income earners who face barriers in the form of work related expenses.
This budget makes a difference. It is targeted and focused on helping those who need help while providing much needed tax relief for all Canadians.
The seniors and students in my riding will see a significant difference in their cost of living when these tax measures take effect. Working Canadians will take home more of their money at the end of the day. Small businesses will be able to grow without extra penalties and be able to increase employment. In short, this budget is good news for Canada, good news for the province of Alberta and good news for the riding of .
I am privileged and proud to be part of the government that has delivered this budget to the people of Canada and I encourage all opposition parties to help us in making the bill become law as soon as possible.
:
Mr. Speaker, it is always so interesting to participate in these debates and hear how everybody has their own terms and their own thoughts about what are successful programs and what are not. Our whole intent, as elected officials, is to help Canadians and ensure our country continues to be productive. We all have choices to make on what we consider are priorities.
I am pleased to have a chance to speak to Bill today and to tell members why I cannot and will not ever support the bill before us. Frankly, it is nothing short of being a disgraceful, selective document that panders to the very narrow electoral base of the Conservatives. As such, I believe it is bad for our country.
Yesterday marked the 13th anniversary of the 1993 election, when the Liberal Party won government from the Mulroney Conservatives. Our Liberal government eliminated that deficit of $42 billion and balanced our budget, finally, in 1997, with the help of Canadians and with the leadership shown by the government. We went on to record eight consecutive balanced budgets and restored the nation's AAA credit rating.
I would remind members that we were at a point of almost bankruptcy and were being referred to as a third world country. I also remind members of the amount of work that Canadians had to do to get us out of that debt and to put our country on a balanced footing.
We slashed the federal debt, both as a percentage of the economy and in absolute dollar terms. Canada's debt to GDP ratio dropped by 50% over our government's tenure. We achieved the best fiscal record of all the G-7 group of world-leading economies and the best of any Canadian government since Confederation in 1867. We are very proud of that.
Prior to this past spring, the federal Conservatives last balanced a budget in 1912. We wonder what the future will hold as we go forward.
However, I will go back to the present situation.
The minority Conservative government inherited the best fiscal situation in Canadian history and it is failing Canadians now by neglecting the future challenges in putting forward this visionless budget. It is a simple case of some sort term gain and long term pain for our great country, which we have all worked so very hard to build over the last 13 years.
Budget 2006 has done nothing to bolster Canada's productivity and make it more competitive on the world stage. David Crane and other senior newspaper columnists talk about how important it is to have that productivity agenda moving forward. There is nothing in the budget that relates to that or is going to be investing in those areas.
The budget neglects to make any significant improvement and investments in education and innovation. Our Liberal government had a concrete vision that would have put us at the forefront of competitiveness and innovation. This lacklustre and visionless budget contains virtually nothing in this regard.
Another example is our last fiscal budget update provided $2.5 billion for university research, which is an extremely important area for our country. The Conservative budget provides $200 million, which is less than one-tenth of our commitment. Under the Liberal government, the best and brightest were flocking to Canada, due to our sound investment in research and development.
How will Canada compete on the world stage, in the future, with a visionless budget? How can Canada continue to nation-build when it has a government and its budget that cares more about politics and how to score points than sound fiscal management?
The minority Conservative government is continuing its legacy of failing Canadians through our post-secondary education system, forcing the provinces to go it alone and abandoning our students across the country. I remind hon. members that our students are our future.
Prior to the Conservatives and the NDP forcing the last election, the Liberals had made significant commitments in the November 2005 fiscal update, including $4.1 billion toward post-secondary education.
The Conservatives offer a measly Canada textbook credit, a $500 annual credit for textbooks. One wonders what that really means in dollars. This is worth exactly $77.50 per year for students who spend $500 or more on textbooks.
The Liberal Party had proposed a fifty-fifty plan to pay half of the tuition in the first and last years of post-secondary programs, which would have been worth thousands of dollars per year to students and would have been of enormous benefit to Canada and to Canada's future. Seventy-seven dollars and fifty cents will do nothing to increase access or decrease student debt.
Simply stated, the Conservative government has failed to make post-secondary education a priority.
The Liberals know that we must invest in our students and ensure that they have the tools they need to succeed in life. I am very pleased to remind hon. members that Liberals actually care about Canada's students, and I think our past practice has shown that.
In fact, in our 2006 election platform, we had proposed to expand Canada access grants to cover all four years of study and to develop a fifty-fifty plan, which would have paid for half of the tuition of all Canadian students for both the first and the last year of study. We proposed to conduct a comprehensive review of student assistance, to provide additional funding for Canadian students who study abroad, and to make a 50% increase in funding for graduate scholarships. These were all important initiatives, as I am sure all of my colleagues would agree.
These Liberal initiatives were very popular in my riding of , especially York University, which, I am very proud to say, is in my riding. This exceptional school prides itself on the pursuit, preservation and dissemination of knowledge. It provides excellence in research and teaching in pure, applied and professional fields, testing the boundaries and structures of knowledge. This community of faculty, students and staff is committed to academic freedom, social justice, accessible education and collegial self-governance. I am very proud to represent it.
Another failure of the Conservatives is their transit credit, which is another selective tax measure designed to cut greenhouse gas emissions, which we all want to see done, by increasing public transit ridership in the cities. However, a small price decrease in public transit does nothing for ridership. Those who use transit will continue to use it because it is convenient for them. Those who do not use transit will not suddenly run out and buy a transit pass for a $12 a month tax break. I wrote the book on cities and urban transit issues, so I know that this $12 will do nothing to increase ridership.
The Canada employment tax credit is essentially a $1,000 increase in the basic personal exemption, but it applies only to employed taxpayers. I favour an increase in the basic personal exemption for all Canadians, so that seniors and stay at home moms could benefit as well.
But budget 2006, while proposing this selective tax break, decreased the basic personal exemption, effectively hiking income taxes for all Canadians. The minority Conservative government's budget actually raises income tax rates in the lowest tax bracket, which it clearly denied while this was acknowledged by others.
Despite the government's claim to be helping Canadian families, it has raised the tax rate from 15% to 15.5% for the lowest income Canadians. Clearly, the lowest income Canadians are not the priority of the new minority Conservative government. I think it is nothing short of disgraceful. Low income families need our support, yet the government is quietly raising their taxes and giving tax breaks to companies.
The budget fails to provide real tax relief for low income and middle income Canadians. Eliminating Liberal income tax cuts in favour of a 1% GST cut has been panned by every serious economist in the country as a plan that will benefit higher income Canadians at the expense of those who need it most. The Conservatives are actually increasing income taxes, which means that many people who got a refund for 2005 will end up paying in 2006.
The children's fitness credit sounds wonderful but, like the textbook tax credit, it is not actually worth $500 per year. Tax credits are multiplied by the lowest bracket rate, giving this measure a final value of $77 per year. Parents across the country know that it costs a lot more than that to enroll children in much needed sports programs.
The Liberal government's great achievements as a nation builder are also at risk with this flawed budget. Canada remains an exciting and prosperous country, but we must look forward for an agenda with a renewed national purpose. Thanks to the efforts of my previous government, this country can afford a national housing program. It can afford a universal child care program. It can afford investment in research and development to ensure our future priorities.
This budget is unfair and inequitable and increases taxes on the lowest income Canadians while the richest few would benefit. The Conservative government's first budget fails to address the real needs of Canadian families, abandons fiscal responsibility and fails to provide an economic vision for the future. If the government continues down this road, it will undo all of the good work that we did to put Canada at the head of the G-7 and, in the end, only the wealthy will benefit while those most in need will be left behind.
Many of the provisions in Bill underscore the selective and narrow governing style of the minority Conservative government. It has become frighteningly clear that the government is completely willing to sacrifice our long term economic health for potential political gain. This is clearly unacceptable to Canadians.
I cannot support this budget at this time. It would be wonderful if the government would stand back and try to make some of the changes that clearly need to be done to be more reflective of the Canada we want to see.
:
Mr. Speaker, I am pleased to take part in this debate on Bill , an act to implement certain provisions of the budget tabled in Parliament on May 2, 2006.
As hon. members know, the Bloc Québécois supported this Conservative budget, essentially because the and his government promised to correct the fiscal imbalance in the next budget, which is expected in February or March 2007 to cover 2007-08. Those were the circumstances in which the Bloc Québécois gave its support.
The budget also contained provisions that addressed issues raised historically by the Bloc Québécois, such as the tax credit for public transit. I remember that a member from the Chicoutimi area—from Jonquière, to be exact—had introduced a private member's bill along those lines. We are glad to see that Bill includes a tax credit for public transit. There is also a textbook tax credit, something the Bloc Québécois has consistently called for, to give students the easiest possible access to textbooks. In fact, we would like to go ever further. I will come back to this.
Lastly, there is the tax deduction for microbreweries. I would like to pay tribute to the extraordinary work done by my colleague and friend from —I cannot say his name, but he knows who he is—who led the charge on this issue, which I also helped to promote and which was finally addressed in the last budget. I congratulate him on this work and on this success, which is due primarily to the efforts by the Bloc Québécois to convince the other parties, especially the Conservative Party when it was in opposition, that this request was worthwhile. I will come back to this as well.
Because of these provisions, we are going to support Bill . I will describe the bill very briefly, because the people following this debate at home must sometimes be wondering what it is about. It is extremely technical—always a bad thing—but that is the way budget bills are. Nevertheless, it will affect the daily lives of a huge number of Quebeckers and Canadians.
The bill has five main provisions. The first implements a series of tax measures for individuals. For example, it implements credits for apprentices and tradespersons. I want to point out that this is something the Bloc Québécois has been seeking for a long time. Our member from the North Shore introduced—a number of times—a private bill along those lines. It also increases the non-refundable credit for persons receiving a pension, implements a public transportation credit, which I talked about earlier, and increases the refundable credit for medical fees. This is the first main provision, which affects individuals.
The second main provision is on extending benefits to businesses. For instance, it extends to fishing businesses a number of benefits that already existed for agribusinesses. There are various measures in this second section on businesses, capital gains, the transfer of a business to other members of the family and anything to do with agribusiness tax benefits. That is the second main provision, which affects businesses.
The third main provision in Bill implements various tax measures for businesses, but on other levels. Among the measures in this bill, we find the abolition of the surtax on the revenue of Canadian corporations and an increase of the amount a small business can earn if it wants to benefit from a tax credit. This last item is particularly interesting. Tax equity has not yet been achieved in the federal tax system. This is true for individuals and businesses alike, as we have realized. The purpose of this last measure in particular is to correct, but not entirely, this unfairness in the tax system for small and medium sized business, which, I would like to remind hon. members, are the lifeblood of the Quebec and Canadian economy.
The fourth main provision or series of legislative changes is on lowering the tax rate on capital property for Canadian banks. I will come back to that another time.
Finally, the fifth main provision is on a series of measures to lower excise tax on the first 75,000 hectolitres of beer brewed in Canada in order to stimulate the growth and emergence of microbreweries.
Members know that this is a very buoyant industry in the regions. This is true of Quebec, but it is also true of the rest of Canada. However, our industry is facing ferocious competition from foreign microbreweries, especially American ones, which are not so much on the micro side. They may not qualify as macrobreweries, but almost. These are breweries producing millions of hectolitres of beer each year, while ours produce less than one million. We called for a reduction in excise tax for these businesses, like the one most of our competition is benefiting from in Europe and the U.S. As I indicated, microbreweries are not the same size over there than they are in Quebec and Canada. It would therefore be important that ours have a comparative advantage.
I will not expand any further on that. I will not be able to address all the measures contained in this bill, which, as hon. members can see, is pretty thick. Nevertheless, I will focus on those measures I saw as the most worthwhile or interesting, which I mentioned at the beginning of my speech.
The first tax measure for individual taxpayers described in this bill is a deduction for tool expenses for apprentices and tradespeople. As I said, the government is allowing expenses to be deducted up to a maximum of $1,000 or the lowest of $1,000 or 5% of the apprentice's income over the year. If 5% of the income comes out to less than $1,000, the deduction will be 5%; if it comes out to more than $1,000, then the maximum deductible amount for tools will be $1,000.
Permitting the deduction of those tools is an important step because, as a rule, these people are self-employed workers who live on incomes that are extremely variable. Some apprentices and tradespeople who work for companies are required to buy their tools at their own expense. For example, in most of the garages where our cars are repaired, the tool kits belong to the tradespeople and mechanics. They have to pay for those and, even if they sometimes are on salary, that represents an extremely significant expense.
The maximum will be $1,000 for apprentices and $500 for established tradespeople. This is a measure that we have been demanding for a long time, as I mentioned. Once again, it is late in coming but at least it is there. Tradespeople will be able to benefit from it in coming years.
This tax measure also increases by $1,000 the maximum non-refundable credit to which pension recipients are entitled. The maximum non-refundable credit will now be $2,000. This is obviously a positive measure but it does nothing to correct the poverty in which many of our older people find themselves. In particular, this does not respond at all to the demand that the Bloc Québécois has made many times. Again, I pay tribute to our former member for , Marcel—
An hon. member: Gagnon.
Mr. Pierre Paquette: Marcel Gagnon. I can mention his name because he is no longer a member here. He really sounded the alarm about the fact that thousands, if not hundreds of thousands, of older people were not receiving the guaranteed income supplement and that the federal government was dragging its feet in promoting awareness of this program. Several thousands of them were able to correct the situation, but there are still tens of thousands of people who have not been informed of their rights.
For our part, we would have preferred that this measure be accompanied by a real campaign to make this program known to older people who are entitled to the benefit. At the same time, we would have liked to have seen a retroactivity rule so that those people who had not received the supplement because they did not know about it could obtain the payments of which they had been deprived. Once again, these people have had to face the bureaucratic indifference of the federal government.
Still dealing with individuals, they have created a non-refundable $1,000 tax credit for employment income. For 2006, the amount will be $250; it will be increased to $1,000 for 2007. A non-refundable public transit tax credit has also been established. I spoke about that previously, and I will refer to it again later because this is an extremely important measure in the campaign against greenhouse gases.
The Bloc Québécois would have preferred a refundable tax credit, because we know that people who use public transit—not all of them, but many—do not have their own cars, have low incomes and therefore do not pay taxes. This is a first step, but we should improve this measure in a future budget by making the tax credit refundable.
A tax credit has also been introduced for textbooks, as I mentioned. This credit will be up to $65 a month for full-time students and $20 a month for part-time students. Considering the cost of textbooks, I think everyone will agree that this is an extremely beneficial measure for students. It will also help to reduce student debt—though obviously not as much as might be liked.
All in all, this is a positive measure and in the future, other measures should be added, in order to improve the situation of students, who, particularly in the Canadian provinces, may incur a lot of debt. As we know, Quebec has a system of loans and bursaries needing improvement, because the government in place, led by Mr. Charest, skewed it by transferring to loans a whole series of items formerly covered by bursaries. Some corrections will be made in this respect, I am sure, once the Parti québécois resumes power in the coming months.
And that goes for student debt, too. Very clearly a substantial transfer for social programs and post-secondary education will be required in the next budget. The Bloc Québécois imposed this condition, prior to lending its support for the upcoming budget.
With the Standing Committee on Finance, I have been able to travel all across Canada. Yesterday we were in Quebec City. Everyone acknowledges that a transfer of $4.9 billion is needed, including $1.2 billion for Quebec and some $550 million for universities and CEGEPs in this province. This measure is aimed at individuals, but it does not deal with the whole problem of student debt.
Another measure consists of raising from $767 to $1,000 the refundable supplement tied to medical expenses; this was simply indexed. This measure, aimed at people who need special care is positive, all in all. Let us hope, though, that it is not a way of fostering development of the private sector, which already plays a large part in our health system.
As I said earlier, these are the provisions that affect individuals. We feel that the most important of these elements are the tax credits for public transit, textbooks and tools. The Bloc Québécois made all of these suggestions in the past in private members' bills that we introduced but that were never passed. I would emphasize that these are only first attempts that ought to be improved upon in coming budgets.
I mentioned the tax credit for public transit. We must also ensure that tradespeople can benefit from a $1,000 deduction for expenses related to tools. In some trades, tools must be upgraded regularly because of changing technology. Lastly, with respect to the tax credit for textbooks, we think it would be logical for the federal government to abolish the GST on books, which are a cultural product that must be as accessible as possible.
Because of the positive elements in this first area, the Bloc Québécois will support Bill .
With respect to businesses, specifically fishing businesses, as I said before, the Bloc Québécois has always supported Quebec fishers. We are keenly aware that the number of new people going to work in the fisheries sector is dwindling, just as it is in agriculture. This problem will get worse over the coming years. The fishing industry is vital to the survival of several of our regions, especially in coastal areas. The government's proposed measure encourages the intergenerational transfer of fishing businesses. We will support it. However, we will continue to demand greater tax benefits for the transfer of agricultural and fishing businesses to individuals outside the family.
Of course the emphasis should be on transfers within the family, but, as we all know, children of farmers and fishers may very well opt not to follow in their parents' footsteps.
There should also be tax credits for businesses that are transferred outside the family circle in order to keep them going. This is important for the economic vitality of our regions and the occupancy of the land, which is a consideration that deserves greater attention.
It would not make any sense to allow regions to empty out even though they have good potential for economic development if just given a little help to do what needs to be done. It would not make any sense to empty out these regions only to discover that social costs in the large urban centres are going through the roof because of the ensuing rural exodus. We should attend, therefore, to the occupancy of the land, and this is a measure that does so. As I was saying, though, it should be expanded.
Finally, food security is very important to Quebec. Quebec is virtually autonomous in regard to food. Some crops, of course, do not grow very well in Quebec, for example oranges. However, enormous progress has been made with products that can be adapted to the Quebec climate.
For example, in my riding of , we used to have a flourishing tobacco industry. The reduction in tobacco use—obviously a good thing—and the decisions made by multinational corporations to purchase more from emerging countries like Brazil and China have resulted in nothing less than the closure of this industry over the space of only a few years. Of the 56 farms that existed in 2000, only three still produce tobacco. The others had to be converted to other crops.
The federal government created a $12 million conversion assistance program for Quebec. This is a step in the right direction, but it is not enough. When farmers change to a new kind of crop—for example melons, Chinese cabbage, asparagus or cauliflower—they are not always successful because their land is not necessarily suitable or because certain crops are very difficult.
There may be a period of trial and error therefore. I want to take advantage of this opportunity to say that our tobacco producers in Quebec—although it is true of Ontario as well—need more assistance in converting their land because we do not want to lose these agricultural areas.
As for corporate taxation, I will focus mainly on small and medium sized businesses, because, as I mentioned earlier, they have become, in a sense, the victims of the fiscal imbalance and inequity. We would therefore fully support an increase in the sales figure that would allow small and medium sized businesses to have access to a lower tax rate.
Our 2000 election platform included the following demand:
Corporate taxation should be reformed to ease the tax burden of small and medium-sized companies to help them become more competitive on international markets.
That is exactly what we stated in our party platform in 2000.
Small and medium sized businesses, by their very nature, are often the starting point for new ideas. They are also better adapted to the reality of the regions. Consider the following example.
We know that businesses in the softwood lumber industry are growing larger and larger in terms of production volumes. This is true in western Canada and the United States, and in emerging countries and the Scandinavian countries. Quebec has focused on development in which the regions have their place within the chain, but the only way to guarantee their competitiveness is by ensuring that smaller sawmills have a certain specialty and orders that cannot be filled by the larger businesses. This will therefore require a great deal of work in research and development.
Furthermore, we would have liked to see the government add a surtax on oil industry profits in Bill . Yesterday, we began to see some results. Sky-high profits were taken straight from consumers' pockets because of the absence of competition in this sector.
As a final point, we also called for a reduction in the excise tax on volumes of beer brewed under 75,000 hectolitres. This would allow these businesses to remain competitive within the domestic market and to think about developing external markets.
Accordingly, for all these reasons, and despite the shortcomings I mentioned, the Bloc Québécois will support Bill .
:
Mr. Speaker, I rise today to participate in the debate on Bill . I will confine my remarks during the early minutes in my limited time on the $1 billion in cuts that were made mainly to social programming here in Canada that were all part and parcel of the budget.
Most Canadians share my view that these cuts were directed at the most vulnerable people, groups and organizations in Canada, and the most vulnerable regions in this country. The cuts were based very much on ideology. Today's editorial in the Vancouver Sun accurately describes the nature of these cuts and the direction of the minority Conservative government. In actual fact, Barbara Yaffe introduced a new term into the lexicon of this assembly. I agree with her proposition that the government is suffering from a rare disorder called “ideology restrictus”. That is the problem here and I am not sure there is a known cure for ideology restrictus.
I agree with the thesis of the article that normally, when a minority government is elected, it is elected on a certain base. Once it gets into power, it attempts to broaden that base and reach out to other groups, individuals, organizations, so that the government can be the government of all Canadians in all regions of the country. With this particular minority Conservative government, that in fact did not happen. In fact, it is becoming narrower and narrower.
The Conservatives are narrow casting to their own group. Canadians have seen that very clearly from the $1 billion in cuts to social programs that were recently announced by the minority government. I want to speak about these cuts and how they affect these groups, individuals and organizations in this country and how devastating and cruel these cuts will be and the very unpleasant effects that will result. Before I do that, I want to put the cuts into context.
I agree that sometimes a government has to reorganize its priorities. There are certain times when tough decisions have to be made. Simply because a program was funded 10 years ago does not necessarily mean that the program has to be funded in perpetuity. I agree with that. A government should on a daily basis be looking at and prioritizing its agenda, programs and initiatives. However, I want to put this into context because it is very important.
In 1993 when the Conservative government under prime minister Mulroney lost after nine years in office, this country was in devastating financial circumstances. Interest rates were close to 12%. Unemployment was in excess of 11%. The annual deficit of Canada was $43.1 billion, and I said billion, not million. The debt to GDP ratio was at 73%, its highest level ever. Unemployment was increasing. The World Bank had basically given up on this country. I believe that Canada was headed for bankruptcy.
In that case there were some tough decisions. There were cutbacks that were necessary. Through good government and with the necessary control of the fiscal monetary levers available to the government, Canada's success has been startling. We all know the results.
Canada has had eight consecutive surpluses. Interest rates are at an all time low. Three million jobs have been created over the last five or six years. Whatever context we want to use, whatever we want to compare it to, whether it is debt to GDP ratio, jobs created, interest rates, et cetera, the country, when compared to the G-8 or any other countries in the OECD, has been ranked one, two or three and it has certainly been very successful.
That was the context back in 1993. In 2006 when this Conservative minority government came it power, it inherited a surplus of $13.2 billion. That was just a little contextual background leading up to these devastating cuts that were made to certain vulnerable Canadians and announced last month.
The first one I want to talk about, in the whole scheme of our $210 billion budget, perhaps does not amount to a significant amount of money, I found very cruel and devastating. It is the $5 million cut to the budget of the Status of Women. Coupled with that was the pronouncement of the government that it would no longer consider any applications for funding to any women's groups that advocated equality. In my riding, and I believe the riding of every member from across Canada, it will have a devastating effect because that is what a lot of these groups do, and they do it successfully. Their job is not done.
I want to quote from a release from Kirstin Lund who is the chairperson of the Prince Edward Island Advisory Council on the Status of Women. She says:
If Canadian women are equal, how is that they made just 62% of men's incomes in 2003, even though they made up 47% of the workforce? If Canadian women are equal, why is it that 43% of all children living in poverty live with a single mother? If Canadian women are equal why are there over six times as many female victims of sexual assault as male victims? Why are female victims of spousal violence more than three times as likely than male victims to fear for their lives? And why do women make up 84% of all victims of spousal homicide?
This question has been asked of the Minister of Canadian Heritage in the House a number of times and people are very upset. This group is upset. Groups right across Canada in all 308 ridings are very upset. The answer I have heard over and over again from the minister was that the government considers women to be equal and it was not necessary. Again, I find that totally unsatisfactory. I do hope that as we go forward this particular cut, more important, this particular restriction, will be lifted and we can go back to the way it was funded in the past.
The second area I want to talk about goes back to my original premise that these cuts are focused. It is like a rifle. They are targeted at certain groups. They are targeted at the illiterate, women, aboriginals, youth, poor people and environmentalists, as well as certain groups within society that this particular minority government, for one reason or another, just does not like and does not feel that it represents.
The second cut that was announced by the finance minister was the $17.7 million from the budget under the literacy skills program. As everyone in the House and most Canadians are aware, this is a very serious issue. Most studies indicate that over 30% of all adults have certain literacy and numeracy deficiencies and until some form of remedial action is taken, they cannot participate in the knowledge economy. In the province I come from, Prince Edward Island, under this program the provincial government received approximately $325,000 of annual funding for a literacy program. There was another voluntary alliance, the Prince Edward Island Literacy Alliance, which received approximately $100,000.
It was not a great amount of money, but it was to be used to coordinate a lot of volunteer organizations that were working in the communities each and every day dealing with this literacy issue. They were doing very good work. That is gone now. This money was leveraged to the volunteer sector and the government's response was that the sector was not doing its job and was not successful. The government needs to tell that to the groups and volunteers who were involved and to the people who benefited from those programs.
I want to quote from the executive director of the Prince Edward Island Literacy Alliance, Catherine O'Bryan, who said:
Why isn’t our government concerned with the betterment of all Canadians? This cut comes at a great expense to the very people who struggle to participate fully in the community--the message from this federal government is clear: People with low literacy skills don’t matter.
I would like to quote a statement in the Globe and Mail of October 5 made by the in response to those people who have friends and relatives who have some degree of literacy problem and are concerned about these groups, individuals and organizations. He said:
I think if we're spending $20 million and we have one out of seven folks in the country that are functionally illiterate, we've got to fix the ground-floor problem and not be trying to do repair work after the fact.
That was a quote from the government. That was the response to those groups, individuals and organizations that are so concerned about this important problem.
Another cut was made which I do not believe has sunk in yet. It is going to affect the tourism industry which has been struggling over the last couple of years. A whole host of factors have been working against it: the price of gas has gone up, the Canadian dollar has risen significantly over the past six or seven years, security issues restrict a certain number of visitors crossing the border into Canada, and the lack of international marketing.
A whole ménage of factors have driven down the number of tourists, especially international tourists. I am talking about the $78 million cut from the visitor GST rebate program. This program allowed international visitors to get a rebate on the GST they paid on goods purchased here in Canada. This is going to make us much less competitive on an international basis.
Two particularly important segments of this industry that are going to be affected are the bus tour business and the international convention business because this rebate is built right into their budgets. If a bus tour is coming up from New York City and it is going to spend seven days touring Quebec, Atlantic Canada, and Ontario, the GST rebate is built into its budget. When it loses that rebate, that basically makes our product 6% less competitive than it was before this cutback was announced.
It is my position that this cut was not well thought out. The Canadian Tourism Commission, all the provincial industries, and all the tourism groups, are dead against this cut. I do not think this was actually thought out and it is going to make us less competitive. This is just one more nail in the industry's coffin.
I understand the finance committee has voted to review this particular cut because it is very concerned about it too. I hope that after the finance committee has done a thorough review on the issue and hears from members of our tourist industry from all provinces, the government will reconsider this particular cut.
Another cut that was made and I do not know why this was made, it was a small amount of money, but there was a cut made to the museums assistance program. It was not big bucks but this small amount of money was leveraged through the volunteer sector and a lot was accomplished with a very few dollars.
In my province seven museums received between $20,000 and $24,000. From a Government of Canada context, that is not a lot of money. However, they were able to take this money and most museums were also able to access one student under the youth employment strategy which I am going to speak about in a few minutes because that was another cut we have seen.
They were able to leverage those two programs and keep open their very small community museum. It is not a lot of money, but the effects of the cut will be devastating on these seven communities that had community museums. Hopefully, they will continue to open, but it is going to be a real struggle. We, representing all Canadians, have to ask the question and that is, why? Silence. Why would the government do it?
The court challenges program was ideologically based. This was a program that allowed certain groups and organizations to challenge a particular law, especially with the enactment of the Canadian Charter of Rights and Freedoms. We did not have any judicial interpretations, how it would be interpreted by our courts. There were certain groups and organizations that took advantage of it. It changed certain laws. It changed the way it responded.
An example from the east coast of Canada was the whole Marshall initiative dealing with native rights in the fishery. A lot of the Acadian groups made certain challenges to determine what was their right under the Canadian Charter of Rights and Freedoms to access schooling for their children, what cluster had to reached and what criteria had to be formed. This was tremendous for these groups and organizations, but again, that is gone, out the window totally.
The youth employment strategy was also cut. Again this was a small program that communities, groups, and non-governmental organizations were allowed to access and that they could lever. Every member of Parliament is fully aware of this program. Probably 70 or 80 students from each riding on average were able to access the youth employment strategy. It was a very low budget program.
If it were a non-governmental organization like a community museum, like the Canadian Cancer Society, or the heart foundation, they would be able to access students, not for the full summer but I believe the maximum was 8 weeks or 12 weeks. They were only paid a limited amount of money, around $7.50 an hour and an NGO would get 100% financing and private enterprise would get 50% financing. There has been a 60% cut in that program.
Again, I just have to shake my head. I ask why, what are we doing here? We had a $13.2 billion surplus. In most instances this was a young student's first entry into the workforce. It was so important for these young people and again, for no reason, just thrown out the door and everyone here is shaking their head.
There were other programs like the Canadian volunteer initiative. When we look at all these cuts, they were made to the most vulnerable people living in Canada. What scares me the most is that the finance minister announced there are another billion dollars of cuts coming next year. There have been accusations over the past that the has a hidden agenda. I disagree with that proposition. The agenda is clear, the agenda is obvious, and the agenda is very disturbing.
:
Mr. Speaker, I will be splitting my time with the member for .
With the fiscal capacity that the government has, the budget was an opportunity to invest. It was also a time to invest because, of course, for 13 years we experienced the rather penurious actions of the previous Liberal government toward the people of Canada. While it reduced the fiscal deficit, it increased the human deficit in Canada.
Toward the end of their time, the Liberals softened, but not completely. I know that in 2005 the New Democratic Party had to fight very hard in that budget to ensure the Liberals did not get away with another tax cut for corporations and that they invested that money in people. That was very good and that is working.
Even within this budget and within Parliament today, the two parties of the right, because that is what they really are, are living off the good avails of the New Democratic Party and the work that it did in 2005. They are dining out on it. We do not want to forsake them of a good meal but they should remember who the cooks were.
In this budget, instead of investing more in the needs of Canadians, the Conservative government decided to squander another $7 billion in corporate tax cuts and to keep the subsidies to oil and gas companies. Even with that, it is currently running a bigger budget surplus than the Liberals did.
Just into this fiscal year, it is $2 billion ahead of its estimates. What did it turn around and do? It announced a billion dollars in cuts to programs that were in place all over the country, this little bit of money that was handed out under the Liberals in a variety of very serious areas, such as literacy, women, museums and health. The Conservatives must have sat in their caucuses and decided on how many programs they could cut a few dollars from and make them work even less than the Liberals did.
I want to talk about the tobacco control program that was cut for aboriginal people. In the Northwest Territories, prior to 2000 we had a smoking rate of 45% in our population. Over the last four years we have managed to bring that down to less 35%. That is a direct and positive result of our Government of the Northwest Territories putting money into it. The federal government also put money into the program because, of course, half our population is aboriginal.
We had the very successful butthead program in the schools which discouraged every child from taking up cigarette smoking. That is gone now. There was no consultation and no recognition of the importance of these programs. I am sure the territorial government will try to do something to replace it, but that is a loss.
The sale of tobacco in Canada contributes $8.8 billion in taxes to federal, provincial and territorial governments. It is very important that we reinvest in the opportunities to reduce tobacco use. Just because we are on the dole with tobacco taxes does not mean that we should ignore our responsibility.
I now want to talk about the corporate tax cuts that the Conservatives have proposed.
Across the country, corporate taxes in provincial hands have been spiralling downward. Provinces have to compete with each other for corporations to establish offices in their jurisdictions and pay their corporate taxes in those jurisdictions. The provinces are in a race to provide the lowest corporate tax rate to attract the companies to do this. Private individuals, of course, cannot afford to relocate just simply to get a lower personal income tax rate, but corporations can manage this quite well.
The responsibility for an across the board corporate tax rate lies with the federal government. In reality the federal government is the best agency to collect corporate taxes and should be the agency to collect those taxes, but over the time of the Liberals and the Conservatives, we have seen this denigrated to such a great degree.
We see the Conservative budget as crafted to meet the needs of the oil patch, not working Canadians. There are a few crumbs for working Canadians and everyone appreciates those. However, it is only a sleight of hand to take attention away from the billions in tax giveaways to big corporations, particularly oil companies, making obscene profits on the backs of hard-working Canadians and on the backs of our grandchildren as well, who will not have the share of the non-renewable resources that we are giving up now.
In the natural resources committee meeting earlier this week, we had presentations from CERI, the Canadian Energy Research Institute, which indicated that by 2020, if the expansion of the oil sands has taken place as outlined and if the cost of oil is $40 U.S. a barrel, which is $62 today, oil companies will make approximately $1 trillion by 2020 from the oil sands, on an investment of $100 billion.
The government's share of this will be less than 15%. We will see the escape of enormous amounts of resources and dollars out of our country and out of the hands of Canadians who need them so much. We need a government and a budget that speaks to the future of our natural resources, and that is quite clearly the case.
Another study was done recently in my territory by an independent group on the Mackenzie gas project, a project that Imperial Oil has indicated is marginally economic. Its study shows, and this was verified by economists and was done by an economist at Pacific Analytics out of Victoria, B.C., that the after-tax rate of return on this project will exceed 25%, and the oil companies are calling this a marginal project in Canada.
The project will deal in the hundreds of billions of dollars, with rates of return of this magnitude, yet they will be subjected to the lowest royalties and corporate taxes. All of this comes down very favourably for them. What does it do for Canadians, for our children and our grandchildren as we move along and require dollars for infrastructure and other things? It does nothing; it is squandered. This is why it is so important that we understand how our tax system works and that we stand up for Canadians.
We did not see this in the budget here and that is a shame. It is a crying shame that we do not see a move to ensure that the resources of our country serve the people of our country.
:
Mr. Speaker, I am pleased to rise today and speak to Bill and express many of the concerns raised in the Hamilton community around the budget.
This spring's budget saw the Conservative government essentially continue the Liberal income tax cut. The government added cuts to the GST and business taxes. It simply left what I would argue would be the most important social responsibilities to the province.
On the spending side, the government has all but turned its back on the Kelowna accord with aboriginal people, with only modest funding for housing. The government's decision to go beyond the GST cut and to proceed with further personal and corporate tax cuts is troubling. This will cause a significant shrinkage in government's fiscal capacity to invest in the aspirations of ordinary Canadians. It betrays their hopes in many ways.
The has talked at length about being inclusive. He has all but ignored the call by the provinces for substantially increased federal funding for post-secondary education. Post-secondary education in Canada has been subjected to public cuts in funding for over 20 years. This has led to higher tuition fees and higher student debt.
The government has substituted tax incentives and individual credit measures and has taken away funding for direct programs. This is unconscionable when the government is sitting on a budget surplus of $13 billion. Much of that $13 billion was hijacked from the EI fund as far as I am concerned. It has chosen instead to throw away a chance to give real relief to our post-secondary students and to their parents.
On May 2 of this year, George Soule, national chairperson of the Canadian Federation of Students, responded to the spring's budget announcement and said:
Tinkering around the edges of the tax system is not going to increase access to college and university. This government should be restoring the billions of dollars that were cut from post-secondary education transfers during the past decade so that tuition fees can be reduced.
In my opinion the budget bills of 2006 very much follow the failed Liberal legacy of building on ineffectual patchworks of short term band-aid solutions, with no long term plan to enhance access to quality, lifelong training and learning opportunities. A lifelong learning strategy would finally reinvest in our colleges and universities and it would increase accessibility. I said earlier that there is a student debt crisis in our country which is unconscionable.
Tax credits are no substitute for restoring core funding to post-secondary education. Tuition has almost tripled since 1992. It is becoming increasingly out of reach for even middle class Canadian families, much less ordinary hard-working Canadians. The student debt crisis averages over $21,000 per student. In some cases it reaches $50,000. Imagine trying to enter the workforce carrying that burden. Instead of reinvesting in core funding and tackling the student debt crisis, as the NDP did in Bill in 2005, the Conservatives simply tinker with taxes.
Tax credits in budget 2006 will cost $185 million a year to help those students who already have $3,000 a year in scholarships. That money could have been used to pay the full tuition for 38,000 students, those students in greatest need. Budget 2006 will increase the amount of debt by allowing more students to borrow more money. That only helps the banks. It is absolutely terrible.
Another area of concern in the budget is housing and homelessness. Day in and day out in the House we hear question after question on SCPI and they are deflected by the minister. What is in the budget? The Conservative money in the budget was money that was already committed to be spent in the NDP budget, Bill from last spring. The Conservative money actually falls $200 million short of Bill .
Accountability? There is no mention in the budget of who will oversee the funding and ensure the money is spent by the provinces on much needed affordable housing.
Previous Liberal governments allocated a substantial amount of money to the provinces and territories, around $474 million, but this money was not spent. It was not spent because of the failure of the Liberal government to gain a consensus with the provinces on how to do that. That is one of the major failures of the last 15 years in regard to social housing in this country. There is no mention in the budget of a national housing plan that would ensure that affordable housing is available in the long term.
Speaking more to my riding, in particular the city of Hamilton, there was a study done called “On Any Given Night”. On any given night, 399 men, women and children stay in emergency shelters in Hamilton. There are over 4,200 active applications for social housing in our community. Over 2,400 women and children stayed in a violence against women shelter during 2004 and 2005. Twenty-one point nine per cent of renter households spend more than 50% of their income on housing. It is only thanks to SCPI, which we fear is in jeopardy, that the infusion of funding for shelter beds in Hamilton was meeting the needs of single men for the very first time.
I would like to refer to a report from the social services committee of the city of Hamilton. Again, speaking to the committee's concerns around SCPI, it said:
Whereas, having a safe, secure home is a basic human right; and
Whereas, children and families are the fastest growing segment of Canada's homeless population eroding efforts by municipalities and others to nurture healthy, stable communities; and
Whereas the City of Saint John's, the Federation of Canadian Municipalities (FCM) and other organizations across the nation have recognized that homelessness and the lack of affordable housing is a national concern requiring long term solutions; and
Whereas, the National Homelessness Initiative was established by the federal government in 1999, investing $1.2 billion over the past six years in local solutions that address homelessness; and
Whereas, the National Homelessness Initiative is strongly supported by local organizations and the Government of Ontario and is recognized as an international best practice by the United Nations; and
Whereas, the National Homelessness Initiative will expire on March 31, 2007 unless the new federal government acts soon to renew the program;
THEREFORE, BE IT RESOLVED THAT the City of Hamilton urges the Government of Canada to renew and expand the National Homelessness Initiative, and calls upon municipalities and provincial and territorial governments across Canada to add their voices in support of this important program.
The concern for SCPI, the concern for our homeless, our families in jeopardy is at the forefront of the concerns of municipalities and municipal governments across this country. It is the concern of representatives in this House, but it does not seem to me to be the concern of the federal government. I cannot understand for the life of my how it can turn its back on homeless Canadians.
In closing, these are concerns that have been expressed to me by the constituents of and I am pleased to put them before the House this day.
:
Mr. Speaker, it is a pleasure to be discussing this bill. It is very important, because it shows the government's budget measures and the impact they can have on the daily lives of all Canadians, from sea to sea to sea.
We can support a number of these budget measures, because some are good. I especially like the measures designed to help fishers transition from one generation to the next, take retirement and sell their fishing gear and licence.
These are good measures, even though we would have liked the government to go further. During the election campaign, we had talked about measures that would have provided slightly more money and assistance for fishers. Still, the Conservatives have put forward good measures.
[English]
On the question of the fisheries, we would have gone further. Rather than half a million dollars of capital gains exemption, we suggested that there be $750,000 and unlimited intergenerationally, but I have to admit it is a great improvement what is proposed in this budget at half a million dollars intergenerational and half a million dollars outside of the family. It must come in concert with other measures in the fisheries, in resource sectors, in all areas of the economy. When we look at this budget measure, it is not just what we see in it that we have problems with; it is what we do not see. We look at the opportunity that has been missed.
When the Conservatives came into power they inherited the best financial position of any government in the history of this country. In 1993 when the Liberals came into power, there was a $42 billion operating deficit. There was a mounting national debt that was sucking the lifeblood out of this country. Interest was being paid internationally to foreign countries and foreign investors from the taxes of Canadians in increasing amounts every year, meaning that we could provide less and less service to Canadians. Tackling the deficit was not easy. It meant some very difficult measures.
Reasonable people can argue on whether those measures that were taken were the correct ones and whether the priorities were right. We can come up with various answers. What we cannot argue, what we have to agree on if we are honest, are the results. The deficit was brought under control. Surpluses were established. The national debt was reduced. Investments were made for ordinary Canadians and communities in working with the provinces. We improved and increased the competitiveness of Canadian industry. We continue to benefit from that.
The NDP would scream because tax measures assisted industry and corporations. I am pleased with those measures because the Canadians I know work for businesses, they own businesses, or they want to develop some. In order to compete internationally, which is what Canadian businesses do, they have to be competitive.
The previous government did more than that. It reduced taxation by $100 billion. The vast majority of that $100 billion was to the benefit of lower and middle income Canadians, average Canadians, all our friends on main street saw their earning power go up.
We removed what is called bracket creep, where if a person's salary went up a little bit, he or she might be in an adverse financial position. We reached historic agreements to advance society within this country. Look at the Kelowna agreement where provincial governments, the federal government and the native communities would work hand in hand knowing they had the financial resources and knowing they could apply the solutions to the problems community by community and not with just one cookie-cutter approach. That was quite historic.
The child care agreement was very historic. We had to negotiate over a long period of time with 10 provinces and three territories to find a way to improve early childhood education and child care in the communities, while respecting provincial jurisdictions, respecting the desires of Canadians, respecting the needs of parents and respecting the potential of the children. It was only the start and there is a lot more to do. And to think that the Conservative government with the current financial situation would start by cutting that. Why did the Conservatives do it? Complete ideology. We heard over and over in this House the baseless rhetoric, the complete ideological nature behind this cut. That was very unfortunate.
I come back to the fishery. Small craft harbours was an area where funding was reduced when we made those deficit tackling measures. That was very difficult for the communities and we continue to live with some of those difficulties. But when the financial situation of the country improved, the Liberal government added $20 million a year for five years, $100 million toward small craft harbours.
The member for as fisheries minister and I as fisheries minister were able to assist the communities in upgrading their stock, but the job is not done. There is still a lot of work to do.
What do we see now with the new government, which has the best ever financial position of this country, having inherited that from the Liberal government? It eliminates that funding. It make cuts to fisheries and oceans at the time when it is the most senseless, at the time when there should be great investments within that portfolio, within that program of that department.
Also, let us look at it in terms of ideology. Why do the Conservatives do this? I do not know. Maybe their base of support does not think that fishermen should get assistance. I would like them to explain it. I have not yet heard from the minister.
Then I look at the other ideologies they have, and I look at my part of the world, where in agriculture the most stable part of agriculture in my community is the supply managed part. The producers are very nervous, because everywhere around them they see hog producers having trouble and they see vegetable producers having trouble. Then they look out west and see a sudden concerted attack on the Wheat Board, not improvements to the Wheat Board.
The fix is in on the Wheat Board. For ideological reasons, the government has decided that the Wheat Board is to disappear, and it does not ask farmers in a plebiscite, as it should under the Canadian Wheat Board Act, section 47.1, to see where farmers stand on this.
The Conservatives attacked it very strategically: create a task force and stack the task force such that only people who are opposed to the Wheat Board need apply. Only people who are opposed to the Wheat Board can make submissions to the task force.
For the first time ever, of the five federal appointees on the Wheat Board itself, the Conservatives appointed a farmer-producer who is opposed to the Wheat Board. Rather than having him challenge for one of the 10 spots that are there for producers, they put him in one of the spots reserved for expertise on the Wheat Board.
Then, because there are elections for the Wheat Board, they eliminate and disenfranchise 16,000 producers. Sixteen thousand grain producers who have historically sold grain to the Wheat Board are not allowed to vote. I believe it is something like 30%. I do not know the exact figures. It is true that some of them did not sell wheat to the Wheat Board last year or the year before because of drought, because of conditions, and in some cases because of floods. Maybe some of them are out of the market, but 16,000 certainly are not. The fix is in on the Wheat Board.
I want to come back to how that affects my community. I have supply managed farmers in my community. I have dairy. I have poultry. They are doing quite well. They are able to have a good family income. Their families can look forward to taking over their operations. But they wonder, will the , the person who in 1998 said that supply management was a “government sponsored price fixing cartel”, come back to his true beliefs, as he is doing with the Wheat Board, and accept the views next year or the year after of the people who are opposed to supply management? Will that be addressed? Sure, they are worried about that. They look at all the cuts being done and see the ideological bent within.
As for wind energy and removing the initiative for wind energy, in my community of West Pubnico local business people, with other investors, have put up 17 wind turbines. They are producing energy that is relatively equivalent to what is consumed in the businesses and residences in that community. It is expensive, so it needs assistance from the federal government, but there is no carbon problem. There is no carbon dioxide. There is no smoke coming from these turbines. It is completely green energy.
Rather than investing in that, the government comes out with eradicating Kyoto. It comes out with a false green plan, with a plan that will take away the targets and take the base year forward to an easier year when we are at all time high levels of polluting. The government says it will consult for four years and have targets that we should meet in 40 years. Canadians are concerned about that, and when they see the removal of those incentives, they should be worried.
What worries me more, and what should worry them, is that when we look at the billion dollar cuts that were made this year, a.k.a. savings, the government promises to do another billion dollars' worth of cuts. What did the Conservatives do with these savings? I will try to run through a few of them.
They went to areas where they had ideological difficulties. They said to the very basis of their base support, look at what we did quickly with a minority government, so imagine what can be expected if we get a majority. Then we will get really right-wing, they said, and we will go far to the right and there will be social program cuts and people will see what they have been asking for.
For example, there is the court challenges fund.
[Translation]
As a member of a minority language community, I have to say that the court challenges program was very important to us. This program allowed minority language communities and other communities, people of different religions and so on, to launch court challenges to determine whether the Canadian Charter of Rights and Freedoms would protect their rights in certain instances.
The communities in my riding benefited from the program when a French-language school system was put in place for the first time in the history of Canada.
My grandfather was a politician, When he was first elected in Nova Scotia, around 1907, French schooling was against the law. Whenever the school board inspector arrived, the teachers would hide the unsigned French textbook, which had been written by the parish priest, Mr. Daignault, to teach the students French.
A hundred years later, it is the law of the land. We have a provincial Acadian school board, and children throughout Nova Scotia have the right to education in both languages. However, that is not due to provincial goodwill, although I can say that Nova Scotia was proactive; it is due to the court challenges program.
[English]
I see here that there is an ideological bent, that the supporters of the do not believe in the charter of rights. They do not like what it has led to in certain instances, so the best way to do this is to take the oxygen away from the charter, to take away the possibility for citizens--or the provinces or others under the charter--to contest any laws of the nation.
Let us look at questions like that of the status of women. I mentioned this in the House in an earlier question. We have less than 50% representation of women in the House. We have less than 50% representation of women in senior positions in industry, corporations, the banking sector, the financial sector and so on. They are underrepresented. We have a way to go. We have made improvements since the persons case, but we have a way to go in this country.
One of the tools, not the solution to everything but one of the tools, is the status of women organization. What did the federal government do? It bent to the appeal of REAL Women. It cut the funding to status of women. Not only that, it said that people can no longer use that money to do research and that it cannot grant that money to anybody who does advocacy. If we cannot do advocacy and if we cannot do research, there is not much left. It is a backdoor attack.
Let us look at ACOA, the Atlantic Canada Opportunities Agency. There is a small program within ACOA, worth $6 million over three years, to work on the social economy, whereby the Atlantic Canada Opportunities Agency would be able to interact with the not for profit sector in the same way that it can with the commercial sector, the for profit sector, and where it would be able to make loans. For example, a sheltered workshop could have a loan to do an expansion or buy a new piece of machinery and go into a new commercial venture, a loan that it would repay. That has been removed. I cannot understand why.
Why reduce student employment grants and at the same time announce cuts to the museum assistance program funding, a double whammy for that sector, when the had promised increase funding for museums in this country? The student employment programs helped the volunteer sector such as the museums to operate efficiently and gave very good experience to the students. But they were reduced and they are getting reduced further.
As for job training, three months into this year, just three months, there was no more money in western Nova Scotia for adults needing retraining because they needed to change industries and get new skills. That is unacceptable. It is a rural part of the country. A lot of the areas are based on resources and, at one point or another, there are changes in industry. We have had mill closures. The softwood lumber agreement has not saved that. As well, there are changes in the fisheries. Some people have to retrain and get into new areas, but we do not assist them. Rather than the money being increased, it is reduced, and that is unacceptable.
On literacy training, how can the Government of Canada justify that reduction when it had a surplus of $13.5 billion and is looking at an equivalent if not larger surplus in this fiscal year? How can it justify that money be reduced for literacy training, whereby adults are trying to improve their literacy skills so they can seek training, seek employment, assist their children and have pride in themselves and confidence going into the job market? Under what conditions can we justify reducing that funding? I implore the government to review that situation, to yield to the will of the House, and to restore funding.
As for CAP sites, in rural Canada we do not have the broadband Internet access that people in urban communities have learned to live with. We do not have it in all households. We do not have it in all businesses. One of the very important ways in which rural residents can access the information they need is going to those community access sites. Because most of us, let us face it, need broadband in today's world.
This program has developed very well. In my riding, there are good numbers in the English language and in the French language, working with schools, community centres and libraries. These are all great partnerships, but now what do they find? Not only will they not be able to do any programming, but they probably will not be able to operate. We should restore that funding. We should continue that funding. There is no excuse for why the government would not do it.
Further, the Conservatives should steal our promise, and steal our platform to deliver broadband Internet access to all communities in the country over a very short period. It is a great investment in competitiveness in the nation, the education of our young and the continued education of adults. I would hope that would happen.
We still have communities in my riding that do not have cell phone service. We need investments in those areas. It has become a tool of safety. The ambulance drivers depend on it. The 911 system depends on those tools being available. We have communities that are shut out of that local market. The private sector cannot do it alone. There is a possibility for the federal government to participate, but we do not see it investing. We see it with large surpluses while refusing to make those investments, and it makes politically correct budget cuts, the GST. That helps the very rich but does not help the average Canadian.
Average Canadians, the lower income people in my riding, have seen their taxes increase because the level of taxation at the lower amount went up by half a point and they do not recover it on the GST. I think the government should review that.
There should be some investments within the communities to help them help themselves. We were able to do it in the last government by working with ACOA, the municipalities and infrastructure development. We were able to assist communities with water, sewers and fire halls. The town of Bridgetown in my community was ready and applied for funding to build a new fire hall. The town needs it. It is a volunteer fire department and people give of their time. The town is not asking for 100% of the money from the federal government. It is asking for a commitment, a contribution.
I ask the government to reconsider the billion dollars of cuts and the ideological bent as to how it is using Canadian taxpayers' money.
:
Mr. Speaker, it gives me pleasure to join the debate right after my Liberal colleague who has just spoken, especially since it is a question of cuts and the Liberals claim that they had left the country in good financial condition by reducing the debt.
The question that needs to be asked is the following: at whose expense was the reduction of the debt carried out?
The question of the member for dealt with the fact that big businesses in Canada and their Bay Street friends are not obliged to pay income tax. Meanwhile, who has been cut? To whom has the debt been transferred?
For my part, I would like to remind the former finance minister—now the member for , who was prime minister during a short period of time—that at the time of the cuts, he told Canadians to tighten their belts in order to pay down our debt because that debt must not be transferred to future generations. Yet, what the Liberal government of the day did, during its mandate, was to transfer the debt to future generations.
Today, the present government has not done any better since taking office. I will return to this subject later. For the moment, I want to consider Canada’s national debt. The Liberals like to tell us how hard and successfully they worked to reduce the debt, to reach a zero deficit and balance the budget.
For example, they transferred the debt to students. Today, most Canadian university students finish their studies with a debt of $40,000. I have already spoken about this matter in the House, and I even spoke about it during the election. I took part in a forum in the schools, where the students agreed on that amount. They even corrected me, calling me by name and telling me that I did not put the total high enough. In fact, a university student finishes his or her studies with a minimum personal debt of $40,000.
If a student meets his or her spouse at the university or college, and if that spouse has an equivalent debt, the debt of these two students who finish university and who have a diploma amounts to $80,000. I am talking about a debt of $40,000 for four years of study. A bachelor’s degree requires five years of study, which raises the debt to $50,000 per person and to $100,000 for two people.
Now, if the two students want to work and if they do not live in Montreal, Toronto, Vancouver or Calgary where there are public transit services that enable them get around and to go to work, and if they live in a rural community, they will have to buy a car. And if they do not both work at the same place, two cars will be necessary. Let us suppose they buy used cars valued at $10,000 each. Then, the two students will have a debt of $120,000.
Even if they do not live in Toronto, where houses cost between $250,000 and $300,000, but rather in a rural area where the cost of living is not so high, they will still have to pay $80,000 more to buy a house. The couple will therefore have accumulated a debt of $200, 000 before even having their first baby. That is what we have done to the future generation. We have transferred Canada’s debt to our next generation, and that is a disgrace. That is what we have done.
At a time when Canadians are being told to tighten their belts in order to pay down the debt, who else has been affected by such a measure? It is working people, the unemployed and people who lost their jobs who have been affected.
When the Liberals were in power, the surplus in the employment insurance fund was about $7 billion a year. The debt was therefore paid down on the backs of men and women who had lost their jobs and who had families to support. Children attending school needed money, but the grants to help them were cut.
Even that was not enough for the Liberal government. In 2001, it said in regard to employment insurance that even if a citizen only made a technical error in filling out a statement, it would be considered fraud. For the Liberal government, it was really vague but all infractions were considered fraud. If a citizen forgets to declare a week’s work on his employment insurance statement, that is fraud. The citizen has to return the amount due to employment insurance, as well as penalties and interest. Not only is this the citizen’s own money, but he has to pay interest on it.
So who is paying down the debt?
When the Conservatives arrived, they did not do any better. If we look at the Conservative government’s last budget, there is absolutely nothing for employment insurance. The Conservatives said that they had already studied a possible program for older workers. What kind of program are they considering? They say that they are going to provide training. I can understand that this would be on a voluntary basis. But with all due respect for the Conservatives, are they really going to take someone who is 60 years old with a grade eight education and give that person a chance to go to school, reach grade 12 and then do four years of university in order to be able to work? It is nonsense. What kind of a program is this?
They missed the boat. Where I come from in Baie-des-Chaleurs, we see boats going past and sometimes say that someone missed the boat. That is what the government did.
However, the NDP, in the Liberal government's last budget, used Bill to get $1.5 billion to help students pay down their debts. We had to resort to force to get this allocation. The Liberal government did not want to fall and it accepted our offer. I think this is one of the first opposition party budgets that has been voted on in the House of Commons. I think I am not mistaken. How did they come up with this money? The Liberal government at the time wanted to give major corporations $10 billion in tax cuts. Of that money, we used $1.5 billion to reduce student debt, $1.6 billion to help people who needed housing, $900 million to help municipalities with their infrastructure, $500 million for foreign countries and $100 million to help workers when a company goes bankrupt and its employees lose their pension fund. The NDP was thinking about ordinary Canadians, who do their civic duty and go out and vote.
Nevertheless, who is responsible for this country's debt? It is certainly not the workers who get up in the morning, pack a lunch and spend the day working hard for a living. They did not create the debt. But when it came time to pay down the debt and balance the budget, this was done on the backs of the workers, the citizens, and older persons.
We had to put up another fight against the government to help our veterans with the veterans independence program for veterans of the Second World War, 1939-1945. We cannot even take care of these people. We have to use a piecemeal approach.
Nonetheless, when we look at today's federal government budget, after we promoted the idea of having strong child care services in the country and help working people have a national child care system, the Conservative government refused and decided instead to give $1,200 for every child under the age of six.
What have we done? Have we helped the system? I say no. I am not the only one; our party also says no. We are not the only ones who think this. I believe that nearly all parties say the same thing. The Bloc will say that this is a matter under provincial jurisdiction, and I respect this, but it believes in child care centres. Even our party, how many times have we talked about Quebec, and not because of the Bloc? We often use Quebec as an example, because its programs are genuinely progressive. That is why we want to implement its child care program throughout Canada. The Conservatives’ system, on the other hand, is modeled on the American system. It hands out money and tells people to look after their own problems. At the end of the day, has this helped children? Has it helped working women? I say that it has not helped them at all.
Once again, I say that we are missing the boat. This Conservative government presented a budget in the spring, and on September 25 it announced that it was making cuts, cuts that will do harm. When we see the cuts made to the court challenges program, we have to wonder.
Will the cuts to the court challenges program prevent people in the community from making their cases in court?
On that point, we have to talk about official languages. Minorities in Canada have used the court challenges program on more than one occasion. I will offer an example. The food inspectors in Shippagan who were transferred to Dieppe, New Brunswick, won their case because of the Court Challenges Program. One person acting alone would never have got the case to court.
In the riding of , where I come from, people in French-speaking areas were moved to Miramichi, where 70% of the population speaks English. Even the people of Miramichi said that it was crazy to move a community somewhere else. The communities were able to get their case to court because of the court challenges program. They won their case. That was the first time in the country that a legal challenge had been brought before a judge and accepted. This is now legal precedent in Canada.
We have to think about our minority communities, whether they are English-speaking or French-speaking. I do not believe that an individual could have fought that fight alone. It is unimaginable.
Let us look at the RCMP in New Brunswick, the only officially bilingual province in Canada. Once again, communities defended themselves in court and won their case. Indeed, from now on, the federal government must make bilingual officers available to the people of New Brunswick. They won their case. Imagine what happened next. It was not the Conservatives who challenged it; it was the so-called good Liberals, who are supposed to be perfect, who challenged it in the Court of Appeal. If the court challenges program had not existed, they could not have appeared in court and the debate would not have continued.
Now, the Conservatives are in power and, in my opinion, they are the same bunch, because they are here to defend capitalism and not the social aspect of anything. Nothing has changed. The Conservatives did not withdraw the appeal. The Conservative minister responsible for the file rose in this House to say that we cannot give money to Canadians so that they can fight in court those who legislate, that this did not make sense, that the government enacts good laws, and that they must be respected.
Yet, why were some of these court cases successful against the government?
In order to strike a balance, we should stipulate that, if a citizen wins his or her court case in the lower court, the government cannot launch an appeal with taxpayers' money. The government does use public money to appeal these cases. It should not be allowed to do so, since this upsets the balance between the two parties. There is absolutely no balance.
[English]
I was very sad to see what the Conservative government did to the court challenges program. It cut the program, which allowed citizens to challenge the government on its decisions and laws. By doing that, it has removed the tools of democracy. If the government is making the law, then the court will be paying for judges and lawyers, yet citizens cannot get the same money. They cannot be equal. The government uses taxpayer money to contest court judgments. It is a sad thing if we cannot have a balance and provide the tools to allow citizens to go to court and challenge the decisions or interpretations of laws of the government.
Look what was done to the Montfort Hospital in Ottawa. The hospital used money that was in the court challenges program. If it had not, the hospital would have closed. I challenge anybody today to say what happened with the Montfort Hospital was not right.
Who are the Conservatives to say that their laws are perfect? Who are the Conservatives to say that they follow the law? The Conservatives have said that nobody should be sitting in the Senate if the individual is not elected by the citizens of Canada, yet they appointed Michael Fortier to the Senate. They said that was okay because he was a good person so he did not have to be elected. They say that they do not believe in an unelected Senate, but Michael Fortier was appointed to the Senate, not elected. Twice the Conservatives broke their promise. They broke their promise on who should be in the Senate. Who are they to say that he is a good person when in a democracy, one has to be elected by the citizens of Canada.
We are not asking much. If someone is a minister, we believe that person should be elected by the people and answer to the people. We cannot even question the minister about the budget. He refuses to go to committee meetings.
Accountability.
Mr. Yvon Godin: Yes, it is accountability. Every day the same minister gets up in the House and pounds on the Liberals about Bill , which is being stalled in the unelected other House. At the same time, the Conservatives have a minister sitting in the other House who is not elected, is not accountable and does not answer to Canadians. This is wrong. Conservative members should be in the House, accountable to Canadians, accountable to the House of Commons, the people who have been elected by Canadians. This is completely anti-democratic.
Canada is supposedly the best country in the world, yet we have 1.4 million children going hungry. There are more homeless on the streets of Montreal, Toronto, and Vancouver, than we have ever had. How could the Liberals be happy or proud about that? They said they had to pay down the debt, but they did on the backs of Canadians.
[Translation]
This is entirely unacceptable. The Liberals have absolutely nothing to be proud of from their 13 years in power. They made cuts to health care in 1994 and now more cuts are being made today. Our grandparents and our children are in hallways in hospitals across the country: in Montreal, Moncton, Toronto, Calgary and Vancouver. It is unacceptable to take money to pay down the debt at the expense of people who are sick. The Conservatives are doing no more than the Liberals did.