Bill C-50 (Historical)

Budget Implementation Act, 2008

An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget

Part 1 enacts a number of income tax measures proposed in the February 26, 2008 Budget. In particular, it
(a) introduces the new Tax-Free Savings Account, effective for the 2009 and subsequent taxation years;
(b) extends by 10 years the maximum number of years during which a Registered Education Savings Plan may be open and accept contributions and provides a six-month grace period for making educational assistance payments, generally effective for the 2008 and subsequent taxation years;
(c) increases the amount of the Northern Residents Deduction, effective for the 2008 and subsequent taxation years;
(d) extends the application of the Medical Expense Tax Credit to certain devices and expenses and better targets the requirement that eligible medications must require a prescription by an eligible medical practitioner, generally effective for the 2008 and subsequent taxation years;
(e) amends the provisions relating to Registered Disability Savings Plans so that the rule forcing the mandatory collapse of a plan be invoked only where the beneficiary’s condition has factually improved to the extent that the beneficiary no longer qualifies for the disability tax credit, effective for the 2008 and subsequent taxation years;
(f) extends by one year the Mineral Exploration Tax Credit;
(g) extends the capital gains tax exemption for certain gifts of listed securities to also apply in respect of certain exchangeable shares and partnership interests, effective for gifts made on or after February 26, 2008;
(h) adjusts the rate of the Dividend Tax Credit to reflect corporate income tax rate reductions, beginning in 2010;
(i) increases the benefits available under the Scientific Research and Experimental Development Program, generally effective for taxation years that end on or after February 26, 2008;
(j) amends the penalty for failures to remit source deductions when due in order to better reflect the degree to which the remittances are late, and excuses early remittances from the mandatory financial institution remittance rules, effective for remittances due on or after February 26, 2008;
(k) reduces the paper burden associated with dispositions by non-residents of certain treaty-protected property, effective for dispositions that occur after 2008;
(l) ensures that the enhanced tax incentive for Donations of Medicines is properly targeted, effective for gifts made after June, 2008; and
(m) modifies the provincial component of the SIFT tax to better reflect actual provincial tax rates, effective for the 2009 and subsequent taxation years.
Part 1 also implements income tax measures to preserve the fiscal plan as set out in the February 26, 2008 Budget.
Part 2 amends the Excise Act, the Excise Act, 2001 and the Customs Tariff to implement measures aimed at improving tobacco tax enforcement and compliance, adjusting excise duties on tobacco sticks and on tobacco for duty-free markets and equalizing the excise treatment of imitation spirits and other spirits.
Part 3 implements goods and services tax and harmonized sales tax (GST/HST) measures proposed or referenced in the February 26, 2008 Budget. It amends the Excise Tax Act to expand the list of zero-rated medical and assistive devices and to ensure that all supplies of drugs sold to final consumers under prescription are zero-rated. It also amends that Act to exempt all nursing services rendered within a nurse-patient relationship, prescribed health care services ordered by an authorized registered nurse and, if certain conditions are met, a service of training that is specially designed to assist individuals in coping with the effects of their disorder or disability. It further amends that Act to ensure that a variety of professional health services maintain their GST/HST exempt status if those services are rendered by a health professional through a corporation. Additional amendments to that Act clarify the GST/HST treatment of long-term residential care facilities. Those amendments are intended to ensure that the GST New Residential Rental Property Rebate is available, and the GST/HST exempt treatment for residential leases and sales of used residential rental buildings applies, to long-term residential care facilities on a prospective basis and on past transactions if certain circumstances exist. This Part also makes amendments to relieve the GST/HST on most lease payments for land on which wind or solar power equipment used to generate electricity is situated.
Part 4 dissolves the Canada Millennium Scholarship Foundation, provides for the Foundation to fulfill certain obligations and deposit its remaining assets in the Consolidated Revenue Fund, and repeals Part 1 of the Budget Implementation Act, 1998. It also makes consequential amendments to other Acts.
Part 5 amends the Canada Student Financial Assistance Act and the Canada Student Loans Act to implement measures concerning financial assistance for students, including the following:
(a) authorizing the establishment and operation, by regulation, of electronic systems to allow on-line services to be offered to students;
(b) providing for the establishment and operation, by regulation, of a program to provide for the repayment of student loans for classes of borrowers who are encountering financial difficulties;
(c) allowing part-time students to defer their student loan payments for as long as they continue to be students, and providing, by regulation, for other circumstances in which student loan payments may be deferred; and
(d) allowing the Minister of Human Resources and Skills Development to take remedial action if any error is made in the administration of the two Acts and in certain cases, to waive requirements imposed on students to avoid undue hardship to them.
Part 6 amends the Immigration and Refugee Protection Act to authorize the Minister of Citizenship and Immigration to give instructions with respect to the processing of certain applications and requests in order to support the attainment of the immigration goals established by the Government of Canada.
Part 7 enacts the Canada Employment Insurance Financing Board Act. The mandate of the Board is to set the Employment Insurance premium rate and to manage a financial reserve. That Part also amends the Employment Insurance Act and makes consequential amendments to other Acts.
Part 8 authorizes payments to be made out of the Consolidated Revenue Fund for the recruitment of front line police officers, capital investment in public transit infrastructure and carbon capture and storage. It also authorizes Canada Social Transfer transition protection payments.
Part 9 authorizes payments to be made out of the Consolidated Revenue Fund to Genome Canada, the Mental Health Commission of Canada, The Gairdner Foundation and the University of Calgary.
Part 10 amends various Acts.

Budget Implementation Act, 2008

[The Acting Speaker, Conservative, Andrew Scheer]

I am going to cut off the member there and go to the member for Yukon for a brief question and comment, and then I will try to get to the hon. member for Peterborough.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, is the member embarrassed that the parliamentary secretary is giving false information on immigration when he is the one person who should know? First the parliamentary secretary suggested that in Alberta and Saskatchewan skilled people had to wait six years and the government could not do anything about it, but as we know, there is a provincial program. Being the parliamentary secretary, he more than anyone should know that the provinces have programs through which they can accelerate those people.

Then he said that those for whom the federal government is responsible are waiting four to six years, but we know the government is going to slow it down and it will be even longer because it is fast tracking some people and that will take up more resources. As well, the Conservatives are adding a piddling amount, as the member for Willowdale just pointed out, of less than 1%, so all those other immigrants who are waiting four to six years are going to be waiting even longer. Is that not an embarrassment for the government?

[John Cannis, Liberal, Scarborough Centre, ON]

All I can add to that, Mr. Speaker, is that just the other day the member for Etobicoke—Lakeshore, the deputy leader of the Liberal Party, clearly pointed out factually how the data the government is providing is completely inaccurate and false. He provided to the House the correct numbers and of course it was embarrassing to the government, which did not respond.

The Conservatives can say all they want to say in this hon. chamber, but the facts are the facts. The data is data and nobody can dispute it. Now I will wait to hear from the member for Peterborough. I look forward to it.

[Dean Del Mastro, Conservative, Peterborough, ON]

Mr. Speaker, I left my office this morning and rode over to the House of Commons, but apparently it is actually Yuk Yuk's here today because I have heard a presentation that sounds more like stand-up comedy than a speech in the House.

I would like to address a couple of things. First of all, the member has a staunch defence of Dalton McGuinty. I suppose he would like to defend the $33 million slush fund. Perhaps he would like to defend the record tax increase by the McGuinty government in 2004 after its promise not to increase taxes. It then came back with the largest tax increase on record.

What I would really like to know from the member is this: does he really think CO₂ is an ingredient in smog? It is actually unburnt fuel. I would really like to know, because if that is his knowledge of the environment we know why the Liberals got nothing done on the environment.

[John Cannis, Liberal, Scarborough Centre, ON]

Mr. Speaker, I am not defending Dalton McGuinty. I am defending my proud province of Ontario. Unlike that member who cannot stand up and call a spade a spade, I am defending the cities in Ontario that need support and which the government has completely neglected. I am defending the children of Ontario that the member and his party are neglecting. I am defending the seniors in Ontario that the member and his party are neglecting. I am defending the veterans of Ontario. I am defending all of Canada, which the Conservatives are not.

[Ted Menzies, Conservative, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, let us hope we can bring some order to this House and quiet down the debate to some reasonable and realistic comments.

I rise to speak to the amendment put forward by the NDP to effectively and substantially delay second reading of a very important piece of government legislation.

First, I must express my dismay with the NDP for defending the enormous immigration backlog in this country. The NDP members stand in this House and say that they stand up for immigrants, but they actually are putting forward an amendment that will delay a process which will actually improve and speed up the immigration process.

The backlog, of course, is keeping families apart and is denying Canada the much needed talent and skills that we require to improve our competitiveness and ensure our long term economic prosperity. By extension, that backlog is threatening Canada's quality of life and the strength and the integrity of the social safety net that the NDP claims to champion.

The NDP members, along with their Liberal and Bloc friends, say they support a vibrant 21st century economy. They offer no solutions to address the serious labour force challenges that our country is facing. They fail to recognize that Canada is in fierce competition with other countries to attract the skilled immigrants who have the talent and the training to meet these challenges.

My hon. colleague, the Parliamentary Secretary to the Minister of Citizenship and Immigration, spoke at length on the need to proceed with these valuable and much needed reforms. I am going to speak to some of the other important measures that these political games are delaying. They are delaying benefits to Canadian families and businesses. We will make it loud and clear to all Canadians that it is the NDP members, along with their Liberal and Bloc allies, who are to blame for these delays.

Bill C-50, as with all our previous budget bills, is primarily about making a positive impact on the lives of Canadians, who for too long were overtaxed and poorly served by their federal government. We committed to changing that and we remain committed to delivering positive results for Canadians.

I know the NDP is never happy about Canadians keeping more of their hard-earned money, but I can assure members that Canadians certainly are excited about the tax-free savings account or, as we call it, TFSA. With the tax-free savings account, budget 2008 provides Canadians with the most important savings vehicle since the introduction of the RRSP. This flexible, registered, general purpose account will allow Canadians to watch their savings grow tax free. The reaction has been almost overwhelmingly positive in support of this TFSA.

I ask members to listen to the words of Finn Poschmann, director of Research at the C.D. Howe Institute. He said:

This tax policy gem is very good news for Canadians, and [the finance minister] and his government deserve credit for a novel program.

Budget 2008 also provides for an increase in the northern residents deductions of 10%, effective for the 2008 tax year, a move with broad positive support, even from the NDP.

Let us listen to the words of NDP member for Western Arctic, who said that it is a positive first step. I note for that particular NDP member the disappointment that his constituents, in the form of a recent Yellowknifer editorial, have already indicated in regard to his first vote against the budget:

Considering the NDP won't form a government at any time soon, it would have been best had [the NDP member from Western Arctic] swallowed the pill and voted with the [Conservative] government.

Let us imagine how much more disappointed they will be in him once they hear that their member is now trying to delay this positive step.

I hear on a daily basis from the NDP that the government is not paying enough attention to the challenges faced by our students. Budget 2008 is a generous budget for students and goes a long way to address the neglect they suffered under the previous Liberal government.

Through Bill C-50, the government is committing $123 million over four years, starting in 2009-10, to streamline and modernize the Canada student loans program and expand online services for students, enabling them to manage their student loan accounts online.

It would provide further support for Canadian students with a $350 million investment in 2009-10, rising to $430 million in 2012-13, in a new consolidated Canada student grant program that would reach 245,000 college and undergraduate students per year when it takes effect in 2009. That is almost 100,000 more students than the previous program that we are replacing.

One can imagine students' disappointment once they hear of today's delays.

We recognize that small and medium businesses are the backbone of our economy and our government is committed to fostering an environment that enables them to thrive.

Budget 2008 would benefit small and medium-sized businesses by improving the scientific research and experimental development tax incentive program and easing the tax compliance burden by reducing the record-keeping requirements for automobile expense deductions and taxable benefits.

We believe that Canadians share our desire to see more of our seniors maintain their independence for as long as possible. This government also recognizes that our seniors will have a valuable contribution to make to our economy, which is why we are investing $60 million per year to ensure that low income seniors who work can realize greater benefits from their earnings through an increase in the guaranteed income supplement exemption. This is one of the most innovative and promising initiatives put forward in budget 2008 and addresses, head on, a serious challenge faced by Canadian society.

Through Bill C-50, we will invest $110 million in the Mental Health Commission of Canada to support five innovative demonstration projects across the country to develop best practices to help Canadians facing mental health and homelessness challenges.

The protection of its citizens is one of the most important responsibilities of a government. We are committed to following through with the resources to show Canadians we take that responsibility very seriously.

To back up our commitment, Bill C-50 provides $400 million through a third party trust for provinces and territories to support their efforts in recruiting 2,500 new front line police officers.

This government believes we can never fully enjoy the benefits of our hard work and unique joys of being fortunate enough to live in a country like Canada if we do not protect our environment as well. Clean air, clean water and clean land are not only what Canadians deserve, they are the bedrock ingredients of our long term prosperity and success as a country. That is why our government has made, and will continue to make, substantial investments in protecting our environment.

Bill C-50 allocates $500 million in 2007-08, through a third party trust, on a provincial-territorial per capita basis, for public transit infrastructure and sets aside $250 million for a full scale, commercial demonstration carbon capture and storage in the coal-fired electrical sector.

As we can see, Bill C-50, the first budget implementation act for 2008, is filled with positive news for Canadians, news that I would have thought the NDP could support and should support. It contains targeted and timely funding to address many of the challenges that our country is facing while, at the same time, introducing the tax-free savings account, one of the most innovative and welcomed savings vehicles to come along since the RRSP.

I encourage the NDP and all opposition parties to put aside petty partisan wrangling and support Bill C-50. If they cannot see their way to doing that, they should at least get out of the way and stop delaying such important legislation.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, I thank the member for bringing the debate back to a reasonable level.

First I have a comment and then a technical question on the Bank of Canada.

The member pointed out one of the flaws in the budget related to the territories when he explained that the funding for public transport and police was on a per capita basis. As he knows, we do not have very many per capitas so that turns out to be roughly $180,000 for the territories which are somewhat bigger than every country in Europe. We get in the order of one police person and expenses, which is not significant and not sufficient.

Because the member is the Parliamentary Secretary to the Minister of Finance, my question is more of a technical question relating to the changes in Bill C-50 in relation to the Bank of Canada.

The bill provides more flexibility for the Bank of Canada in its investments or more modernization so it can use new tools. I would like the hon. member to explain to the public, which would always be worried if our finances could be invested more liberally, what protections these new changes would bring to the Bank of Canada to ensure these investments would still be safe.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I would like to thank my hon. colleague from Yukon, not only for his question but also for being one of four members of Parliament who actually showed up to a technical briefing to discuss Bill C-50. I applaud that. The member is obviously concerned for his constituents and wants to know the impact and benefits that will come from the budget implementation bill that we are presenting today.

It is actually a delight to get a technical question and if the hon. member will please forgive me, I will make sure that I am very concise on this.

It is because of the turbulence in our financial markets and in the markets of the United States that the Bank of Canada Act, we realized, needed some improvement, some flexibility. We have made sound improvements that would provide more liquidity and flexibility to the Bank of Canada to react in what may be continuing turbulent times.

We are very confident. These changes came from discussions with the Bank of Canada. They are positive and are well supported by the industry. I thank the member for raising that question.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, I take exception to a number of comments the member made with regard to New Democrats. In particular, one of the responsibilities of each member of Parliament is to consider any piece of legislation that is before the House and to weigh both the pros and cons of that piece of legislation.

The member cherry-picked, as I will, from the budget implementation bill and a proposed amendment by the member for Trinity—Spadina around the impact on our constituents and other Canadians.

Over the last several months, my riding of Nanaimo—Cowichan has reeled from the number of closures in the forestry sector, whether it is logging or supporting companies. We recently had another company that manufactures equipment for logging companies go into receivership. As a result, we are seeing rising poverty in my riding.

I want to talk about housing. The member talked about the investment with the Mental Health Commission in pilot projects. Pilot projects simply will not house all the people who are without adequate, affordable or safe housing.

Recently, the Federation of Canadian Municipalities specifically called for a national program that would look at ending chronic homelessness, rehabilitating and preserving existing social housing stocks, building new affordable housing and reducing the backlog of people needing affordable housing. I know that other organizations have called for a national housing strategy.

I wonder if the member could comment on the inadequacies of the budget implementation bill in addressing what has been called a national housing crisis in this country.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I gave a speech earlier today about the connection that this budget brings to the issue that has never been addressed in this House before. The studies have shown us a direct link between mental illness and homelessness. This budget is the first time that this government has addressed that direct link.

We have pilot projects in place to further that work, to find if in fact there is a connection, and how to address that connection. That is groundbreaking work in this House and I applaud our finance minister for recognizing that.

Now that I have the floor and we are talking about NDP support or lack of, I might remind the House, if I can bring it back to the amendment, that we have tried on many occasions to improve the immigration system without opening the act.

We found that the NDP voted against cutting the $975 immigrant head tax. When we tried to increase the number of foreign credential referral offices, the NDP voted against that. It also voted against the $1.3 billion in new settlement funding for newcomers to Canada. It then brings forward an amendment to tell its supporters, in reduced numbers, of course, that it actually does care about immigration shortfalls in this country and that it does care about a backlog.

I find the NDP's arguments ring rather hollow when we see its voting record on immigration.

[Serge Cardin, Bloc, Sherbrooke, QC]

Mr. Speaker, I have a few questions for the hon. member, whom I worked with in the past on international trade. I am familiar with his economic policies and liberal economic values.

Three points particularly drew my attention and go against the values held by Quebeckers. He talked about the tax-free savings account. He praised the government for lowering the GST and lowering taxes. He also talked about older people who work and who are effectively entitled to receive more money from the guaranteed income supplement.

Let us begin with the first point, the tax-free savings account. Can the member tell me what the real intention is behind this new tax tool? After the budget was presented, most economists and analysts really questioned its relevance. It was even noted that the budget does nothing to encourage people to save over the long term. He referred to vehicle purchases, that is, short term purchases and the like.

First of all, can he tell me if the government's intention was not actually to create a diversion? He says it is the most important invention since the RRSP. It is simply to create a diversion. There are countless unused RRSPs, which people could start using at any time, and which would plunge the government into an enormous deficit. Thus, is it not rather to create a diversion?

Second, how is it that older people have to go to work in order to be entitled to a supplement—

[The Acting Speaker, Conservative, Andrew Scheer]

There is one minute left for the hon. parliamentary secretary.

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I am sure I cannot qualify all of the answers in one minute. I might just very quickly point out that our budget did provide $90 million to extend the targeted initiative to older workers. I would remind my hon. colleague that mine are not Liberal values. Mine are Conservative values and I do value the time spent on committee with the hon. member.

If I could deviate a little bit, there was one false statement made today by the mover of this amendment, the member for Trinity—Spadina. She said that the funds would not be reimbursed to the applicants whose applications were not accepted. That is absolutely false and that needs to be put on the record. All applicants who are not accepted will be completely reimbursed, just to get that factually correct on the record.

[Jean-Yves Laforest, Bloc, Saint-Maurice—Champlain, QC]

Mr. Speaker, I am going to pick up on what I was saying the day after the budget was brought down, when we heard a number of Conservative MPs say that this budget was extraordinary and good for Canadians. Again, it may be good for Canadians, but it is not good for Quebeckers. We came to that conclusion after a rather careful analysis. There is practically nothing in the budget that corresponds to what the Bloc Québécois asked for before it was tabled by the Conservative government.

This Conservative government is showing us through its right-wing ideology that it is truly quite far removed from the interests and values of Quebec. With this budget we truly feel that the government did not meet the expectations expressed by the Bloc Québécois' with respect to its interests and values. Hon. members will recall that the day after the budget was tabled, the vast majority of the daily newspapers and media in Quebec gave their impression on this budget, and it was clearly unfavourable.

Mr. Dubuc's column in La Presse read:

This lack of vision can be explained by the conservative philosophy of the prime minister's government, which does not believe in the role of the state and avoids economic intervention like the plague. It is an outdated, dogmatic conservatism that is not found anywhere else in the west.

The Bloc Québécois made its requests a long time in advance and on many occasions. These requests focused on the manufacturing and forestry industries, which are currently dealing with an unprecedented crisis in Quebec. These requests have been completely swept aside and forgotten in this budget, as though they were not important.

This budget lacks vision. The Bloc Québécois will most certainly vote against the budget implementation bill we are currently discussing.

I come from a riding, Saint-Maurice—Champlain, where the problem in the forestry industry I was just talking about is extremely serious. Pulp and paper companies are closing one after the other. There is some doubt as to whether the ones that are still around will get through this crisis. The many sawmills in the north of the riding, in the La Tuque area, are closing one after the other, some temporarily, others permanently.

We had hoped that the Conservative government would truly hear and acknowledge the Bloc Québécois demands. It should provide much greater support to the manufacturing and forestry sectors to help them through the current crisis. But the only assistance to the manufacturing sector went to Ontario. That is truly deplorable. Quebec was quite obviously forgotten in this budget.

Earlier, I was speaking about the media. The members will recall that, the day after the budget was tabled, the Quebec Minister of Finance also said that the budget did not meet Quebec's expectations. She said:

I am disappointed because there was a $20 billion margin in the context of an economic slowdown. We were hoping the government would do more for older workers and for the manufacturing and forestry industries in Quebec.

Ms. Jérôme-Forget's comments were made the day after the budget was tabled. There was a surplus of $10.5 billion available. The government could have allocated a sizeable amount, as the Bloc Québécois has been recommending since last fall, to support businesses, plants and workers. It could have allocated $3 billion to debt repayment, which would have been reasonable in any case. But it has acted according to the Conservative ideology. The Conservatives did as they pleased and applied $10.5 billion to paying down the debt, which, in light of what is going on in Quebec, is unacceptable.

As I said earlier, considering these obvious facts and the positions taken in the budget that go against the interests of Quebec, the Bloc Québécois will certainly not vote in favour of implementing this budget. The 2008 budget does not meet any of the conditions set out by the Bloc Québécois. We stated our conditions for supporting the budget, but hardly any of them were met.

As I was saying before, this budget does not provide any direct and immediate assistance to the manufacturing and forestry industries, which are experiencing a major crisis, or to the workers and communities affected by this crisis. The biggest problem of the crisis is that individuals, the people in the cities, municipalities and regions, are the ones hardest hit by the crisis, in terms of their family, personal and community lives. They are the ones who have trouble making ends meet at the end of the month or who cannot pay back the bank drafts and loans they took out, often to purchase equipment in order to work. I am talking about self-employed forestry workers, for example, who must take on the cost of the required machinery themselves. The government has done nothing to help these people.

There is no assistance for workers and communities, except the $1 billion trust over three years, of which Quebec will see only a small part. We are talking about approximately 24%, which is not even representative of the size of the manufacturing and forestry industry relative to Canada. Quebec will have access to only a small amount, while the sectors that are not even affected by the manufacturing and forestry crisis—or barely—will receive a share of the $1 billion on a per capita basis. This is assistance they do not need because they already have an industrial structure to help them through such crises. This is not the case in Quebec.

There is another reason why the Bloc Québécois will not support this bill. It has to do with the whole issue of seniors. During the election campaign, the Conservative Party promised to give full retroactivity to people who had not received the guaranteed income supplement, which the Liberals clearly and deliberately kept quiet about. Thousands of seniors in Quebec do not receive the guaranteed income supplement. They were receiving their old age pension, but they did not know they were entitled to a supplement.

The Liberals did not tell them. The Conservatives, on the other hand, promised them full retroactivity. However, once in power, as soon as they formed the government, their memories failed them and now they forget. This situation once again penalizes our most vulnerable citizens, seniors. How could the Bloc Québécois support such a Conservative budget? We find it completely unacceptable.

There is another factor to consider and another reason why we will not support this budget: the environment. This budget continues to favour polluters in the regions that pollute the most. They are implementing systems that allow industries and businesses, particularly oil companies, to benefit from tax credits and continue to pollute even more. As we all know, since 1990, many communities and businesses in Quebec have taken steps to reduce the amount of greenhouse gases in our atmosphere. Instead of being rewarded, these efforts by Quebec businesses are being penalized and more is being given to those who pollute the most.

This is absolutely unacceptable. Once again, it is part of what we call this right-wing ideology, which favours certain areas, such as natural resources, including the oil sector.

Another important element for the Bloc Québécois is culture. This budget does not contain any measures to promote cultural development in Quebec. The film industry is penalized, and funding has been cut once again. Yet the whole cultural, literary and artistic realm in Quebec is a flourishing industry. It needs substantial support from the federal government, which would give meaning to the whole question of the Quebec nation. Developing Quebec's culture would develop its distinctiveness, but the government is not interested.

Once again, a parallel can be drawn between a budget proposal such as this one and the recognition of the Quebec nation, which the government likes to boast about. Yet when the time comes to walk the talk, the government forgets all about it and does not take any real action. It just pays lip service to the idea.

There is another especially important element. I am talking about the government's will, as expressed in this budget. The Minister of Finance has announced that he intends to create a single securities commission, even though the whole financial community in Quebec is against this idea. This is absolutely unacceptable. Moreover, this issue has already been dealt with. This is one budget measure that is a huge stumbling block for us. It is a real source of conflict for us.

I could go back to all the elements in the budget. I was talking earlier about the manufacturing and forestry industries. Even after the vote on the budget had taken place, the Conservative members on the Standing Committee on Finance agreed to hear a series of people to really understand the extent of the crisis in the manufacturing and forestry industries.

What is happening in the manufacturing sector in Quebec and elsewhere, but particularly in Ontario and Quebec? The budget does not provide anything more for this sector, but right after the budget passed, the Conservatives and the other members on the Standing Committee on Finance approved a motion introduced by my Bloc Québécois colleague, the vice-chair of the Standing Committee on Finance.

The committee agreed to hear witnesses. The motion read as follows:

That the Committee, in view of the serious challenges faced by the forestry and manufacturing sectors, engage in a study on direct assistance measures and fiscal environment consisting of no more than four consecutive meetings—

For four meetings, we heard from people who came to tell us what they thought the manufacturing and forestry sectors in Quebec, and Ontario too, needed to get through the crisis. There was consensus.

We heard from Jayson Myers, president of Canadian Manufacturers & Exporters; Claudette Carbonneau, president of the CSN; Pierre Laliberté, political advisor to the FTQ for the manufacturing sector; Avrim Lazar, president and CEO, Forest Products Association of Canada; Phil Vinet, mayor of Red Lake; Jean Laneville, an economist with the Quebec federation of chambers of commerce; Ms. Peterson, mayor of Thunder Bay; and Guy Chevrette, of the Forest Industry Council.

These people were nearly unanimous—nearly because they did not use the same words, but they all meant the same thing—in their assertion that the forestry and manufacturing sectors are going through such a serious crisis that the government must change its policy and its budget accordingly.

They also said that the government had to use part of its $10.5 billion surplus to help a dying sector. The witnesses all told us that the Conservative government is clearly taking the wrong approach with its budget and its plan, which offer no direct assistance to the industries in these sectors, and that it must change its approach.

Until now, we have not heard anything to suggest that it plans to change anything. We think that the Conservative government put forward a budget that favours oil companies because it offers corporate tax cuts. As we have said before, tax cuts for companies that are not making a profit are not really tax cuts. But when companies are making profits in the millions or billions, they do benefit from tax cuts. This brand of economic liberalism is hurting Quebec businesses that, as we know, for the most part, did not make a profit in the past year.

What to do? We could try to further analyze this budget and find some justification for it, but there is none. There is nothing in the budget, whether it is for the status of women—which garners just one paragraph, six lines, to improve the status of women—or for employment insurance, where the demands of the Bloc Québécois have been completely ignored.

With regard to aboriginal peoples, they have significant needs in terms of social housing in particular. But there is nothing for them.

That can be said about any area. However, the government has envelopes for defence. When you are in favour of increasing military action and you join forces with the American government to continue the war in Afghanistan, you will definitely put more money in those envelopes. However, what is important to Quebec citizens right now is the injection of additional dollars. More money could have been allocated to regional development so that the Government of Quebec, which is familiar with the needs of each region, could have taken much more targeted action to foster greater investment in regional development.

The budget has an impact on many areas. Unfortunately, it does not contain what the Bloc Québécois wanted, that is major investments in the manufacturing sector, as I mentioned earlier. For these reasons, it is quite understandable that the Bloc Québécois will not support the implementation of this budget.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, the Liberals had three important programs. One had to do with retrofitting houses for those who could not afford to do so. Another was the SCPI program with respect to homelessness. The other was a program to make houses more efficient in order to cut down on greenhouse gases. These were all popular programs but the Conservative government cut all of them. A couple were put back in a smaller way but they are harder to access. Unfortunately, some of these programs are expiring next year. People need these programs.

I hope the member will support us in our call to have the government increase the figures at least to where they were for retrofitting houses, for homelessness, and for more efficient housing. It is hoped that the government will extend these programs beyond 2009 so that people most in need in our country are not kept in limbo again.