Government Operations Committee on April 19th, 2007

[Garth Turner, Conservative, Halton, ON]

Yes, I understand that quite clearly. But—

[Vic Toews, Conservative, Provencher, MB]

I was getting to the point.

[Garth Turner, Conservative, Halton, ON]

That would be great.

[Vic Toews, Conservative, Provencher, MB]

The point is this. The increase in operating and capital costs reflects a commitment of the government to very significant priority areas—defence and security, agriculture, primary sectors, and families and communities—which are all areas, as I recall, you campaigned on in the last election, saying that the prior Liberal government had not met its commitments in respect of defence and security, agriculture and primary sectors, and families and communities.

This budget is very much consistent with the types of issues you raised during the last election.

[Garth Turner, Conservative, Halton, ON]

Madam Chair, we have a very limited amount of time here. If the minister is going to give four-minute answers to a question and talk about what I campaigned on—No one cares what I campaigned on. We care about what the minister thinks, and that's why we're here.

[The Chair, Liberal, Diane Marleau]

And we're here about today, yes. Go ahead.

[Garth Turner, Conservative, Halton, ON]

Thank you.

I'm interested, Minister, when we have federal spending that increases by six times the rate of inflation, if you are concerned at all about the inflationary impact of that spending. Has there been some serious consideration?

[Vic Toews, Conservative, Provencher, MB]

First of all, maybe I can refer that question to the officials, because spending did not go up six times the rate of inflation.

[Garth Turner, Conservative, Halton, ON]

We have an inflation right now of 2%, and we're talking about an overall increase in the current budget of 6% in realistic terms, and then we have 12%. But whether it's twice, three, or six times inflation, is there concern?

[Vic Toews, Conservative, Provencher, MB]

Well, I think that is significant when you say whether it's twice, three times or six times. That is significant.

[Garth Turner, Conservative, Halton, ON]

In 2006-07 the increase was 6%, which is three times the rate of inflation, so we'll deal with the budgetary estimates of 2006-07 of 5.9%, which is three times the existing inflation rate. Is there a concern that you or your colleagues have about the inflationary impact of that?

[Vic Toews, Conservative, Provencher, MB]

What I can indicate in respect to the areas of concern was defence and security—

[Garth Turner, Conservative, Halton, ON]

I asked you about inflationary impact, sir. Do you have an answer on that?

[Vic Toews, Conservative, Provencher, MB]

Yes. I'm telling you that the concern that we have is weighed against the pressures in defence and security—

[Garth Turner, Conservative, Halton, ON]

I'm asking you an economic question, about the economic impact of the budget.

[Vic Toews, Conservative, Provencher, MB]

—agriculture, primary sectors, and families and communities. We're looking at those pressures.

[Garth Turner, Conservative, Halton, ON]

Madam Chair, can the witness please answer the questions that I ask.

If you don't want to answer, just say you'd rather not answer it. But I'm asking you an economic question, sir, not a policy one. I'm asking an economic question about the economic implications of spending $230 billion, which in this instance is three times the rate of inflation.

Are you concerned about the inflation? I've asked it three times.

[Vic Toews, Conservative, Provencher, MB]

I think you have asked the question. I'm prepared to answer it.

[Garth Turner, Conservative, Halton, ON]

Answer it, please.

[Vic Toews, Conservative, Provencher, MB]

What I've indicated is that our government simply doesn't look at economic issues in and of themselves. Those economic issues have to be seen in the context of the pressures that Canadians are facing in respect of defence and security, and agriculture in the primary sectors—

[Garth Turner, Conservative, Halton, ON]

I don't think that's answering the question. So you're not concerned about that. If you're not going to answer it, let's move on.

[The Chair, Liberal, Diane Marleau]

Let him go on with his next point.

Let's go on to the next point.

[Garth Turner, Conservative, Halton, ON]

Let's move on to the next question.

[The Chair, Liberal, Diane Marleau]

You have two more minutes, if you'd like.

[Garth Turner, Conservative, Halton, ON]

Okay.

The Minister of National Defence announced the other day $650 million for new tanks. The Prime Minister announced three weeks ago $1.1 billion for new spending on agricultural programs. Where are we finding this money? Is this reallocated money? Is it contained in your estimates right now? Specifically, let's just deal with the tanks.