Debates of Feb. 18th, 2002

Chuck Strahl Fraser Valley, BC

Mr. Speaker, just what do the Liberals really believe when it comes to productivity and the state of the economy?

First the Prime Minister says that a low dollar is a good thing and if low is good, then catastrophically lower must be divine.

Next the finance minister says that all is well, please do not worry, the fundamentals are sound and one of these days we are going to flex the real Canadian economic muscle, it is just that it may not be in our lifetime.

Now the new industry minister admits that real incomes in Canada have been steadily falling since the Liberals took office and if we do not narrow the income gap with the U.S., we risk an outflow of talent and capital, a decline in our standard of living and ultimately the quality of life of Canadians. So at least the new industry minister now believes that productivity, income gaps and the brain drain are real problems and are getting worse.

Unfortunately the words were barely out of his mouth before the minister of culture waded into the fray saying that such announcements were out of line, that everything was good and Liberal in the land and that Liberal economic policies were unfolding as they should. Sadly, they have already unfolded and ordinary Canadians are paying a sad price.

Geoff Regan Halifax West, NS

Mr. Speaker, I rise to recognize the accomplishments of our Canadian Olympic medalists.

I am of course referring to Catriona LeMay Doan of Saskatoon, Saskatchewan who captured a gold medal in the 500 metre long track speed skating competition.

Jamie Salé, of Red Deer, and David Pelletier, of Sayabec, won a gold medal in pairs figure skating.

Cindy Klassen of Winnipeg won a bronze medal in the 3,000 metre long track speed skating competition.

Beckie Scott of Vegreville, Alberta won a bronze medal in the women's cross country 5 kilometre pursuit.

Mathieu Turcotte, of Sherbrooke, won a bronze medal in the 1,000 metre short track speed skating competition.

Please join me in congratulating these athletes on their great victories, as well as thanking them for the great honour they have brought Canada.

John Reynolds Leader of the Opposition

Mr. Speaker, for years the Minister of Finance has been saying that the fundamentals of the Canadian economy are sound but last week cracks began showing in cabinet solidarity and not just over Liberal membership rules.

The Minister of Industry admits “Our quality of life has been declining over the past 20 years in comparison with the United States” and that this gap is almost entirely due to our lower level of productivity.

Will the Minister of Finance finally admit that Canada's productivity has fallen behind under his watch?

Paul Martin Minister of Finance

Mr. Speaker, the government has pointed out on many occasions that throughout a good portion of the 1980s and the early part of the 1990s Canada's economy did slip. We have also pointed out that beginning with the middle 1990s there has been a dramatic turnaround, in fact a far more substantial turnaround than any other OECD country has been able to demonstrate. We are going to continue on that course.

John Reynolds Leader of the Opposition

Mr. Speaker, was that a yes or no?

In the Liberal leadership race the Minister of Finance may have stacked the deck. We in the official opposition want to give the Minister of Industry an equal opportunity.

Does the Minister of Industry stand by the findings of his innovation paper “that under this Minister of Finance and the two previous ministers of industry, Canada's productivity and standard of living has been falling behind the United States”?

Allan Rock Minister of Industry

Mr. Speaker, I had the opportunity last week when kicking off the innovation agenda to point out that now is the time to build on the extraordinary achievements of this government over the last eight years; eliminating the deficit, paying down debt, bringing down inflation, increasing employment. Now we turn to the next challenge which is to increase through innovation our productivity, our standard of living and thereby our quality of life. That is exactly what the government is going to do.

John Reynolds Leader of the Opposition

Mr. Speaker, I do not think either of the two answers would sell them any memberships in Ontario.

Not only have we fallen behind the United States in productivity, we are falling behind Mexico in investment. Industry Canada admits that when it comes to attracting foreign investment in NAFTA, and I quote out of the Industry Canada document, Canada is ranked third in a three horse race.

Will the Minister of Finance tell us, if the fundamentals are so sound, why are we falling behind Mexico in both our currency and in our foreign investment?

Allan Rock Minister of Industry

Mr. Speaker, Canada has the best quality of life in the world. We have an economy which over the last eight years has outperformed most economies in the world. Now we are inviting Canadians to join with us in a national strategy to make it even better, to build on the strengths in the Canadian economy, to increase through innovation the productivity of our economy and thereby to preserve that best quality of life in the world.

Rahim Jaffer Edmonton—Strathcona, AB

Mr. Speaker, the two scrappers continue to argue and contradict one another. The Minister of Finance tells us that the government is on a solid footing and that the economy is healthy. The Minister of Industry tells us that our situation is worsening compared to our North American partners.

Who is right? The Minister of Finance, who tells us that everything is fine, or the Minister of Industry, who says that things are going from bad to worse?

John Manley Deputy Prime Minister and Minister of Infrastructure and Crown Corporations

Mr. Speaker, we are doing a good job, and we can always do better.

Rahim Jaffer Edmonton—Strathcona, AB

Mr. Speaker, it is just like the government to celebrate mediocrity.

Another potential leadership candidate, the Minister of Canadian Heritage, seems to think that Canada is doing just fine and that our standard of living has been deemed by the United Nations to be among the best in the world. Among the best means third on the UN index, sixth in GDP per capita, far behind the United States, and eleventh in poverty levels.

Does the Minister of Industry share the heritage minister's belief that this level of performance in our standard of living is good enough?

Allan Rock Minister of Industry

Mr. Speaker, it is not at all surprising that members of the official opposition are unable to hold two thoughts in their heads at the same time. Let us take them through it pretty slowly.

Number one, Canada has the best quality of life in the world. Number two, over the last eight years we have improved that economy by bringing down the debt, paying off the deficit and cleaning up from the Tory government of the 1980s. Now is the time for us to address the next great challenge to position our economy for the 21st century and that is the business of this government.

Gilles Duceppe Laurier—Sainte-Marie, QC

Mr. Speaker, two weeks ago, the Minister of the Environment said he was confident that Canada would ratify the Kyoto protocol in 2002, but added that this deadline might change. Since then, the United States have indicated that they would not ratify the protocol, and the Canadian provinces, with the exception of Quebec, have asked Ottawa to do the same.

Is the federal government in the process of building an alliance with the United States and nine Canadian provinces to put off indefinitely the ratification of the Kyoto protocol? If not, could the minister tell us when Canada will ratify the Kyoto protocol?