Debates of May 9th, 2006

Financial Statement of Minister of Finance

[Gérard Asselin, Bloc, Manicouagan, QC]

Mr. Speaker, there are a number of irritants in the budget. It must be recognized that the economy of a number of regions in Quebec is based on tourism.

In my opinion, the Conservative Party missed the opportunity to eliminate the excise tax on gasoline. Gasoline prices for July are forecast to be $1.50 a litre. That will reduce tourist traffic in many Quebec regions.

This is the appropriate time for the Conservative Party to eliminate this tax, which the Liberals had applied. It will be remembered that Joe Clark's government fell because he wanted to impose a tax on gasoline. Mr. Trudeau incorporated it into an escalating tax. However, when the Conservatives took office, they never thought to reduce the cost of a litre of gasoline by a few cents or at least to eliminate the excise tax on gasoline. This would have helped tourist traffic, and many regions in Quebec and Canada would have benefited.

Could the member put this problem to her caucus and ask the Conservatives to abolish the excise tax on gasoline and give a boost to the tourism industry in the regions?

[Nina Grewal, Conservative, Fleetwood—Port Kells, BC]

Mr. Speaker, in our budget we are focusing on priorities that are important to hard-working Canadians. Over the next four years, we will invest a total of about $16.5 billion in new infrastructure initiatives. The budget will provide $591 million over the next eight years to the Pacific gateway project.

[Lee Richardson, Conservative, Calgary Centre, AB]

Mr. Speaker, it is a particular pleasure to rise in the House today to speak to the budget. It has been a long time since we have had the opportunity in the House to speak to a budget that addresses the concerns of all Canadians, a budget that does what this party made a commitment to do during our election campaign.

It is a budget that reduces income taxes, reduces the GST, reduces small business taxes and reduces corporate taxes. Ninety per cent of the reductions go to individuals and families in Canada, almost $20 billion over the next two years. That is more tax relief than the last four federal budgets combined.

For every dollar in new spending, Canada's new government delivers $2 in tax relief. Taxes will be reduced in every area where the federal government collects revenue such as the GST, income taxes and business taxes, including targeted measures to help Canadians with the cost of transit passes, tools, textbooks and kids' sports. I will speak more on that in a moment.

For the people where I live, as a result of these tax measures, Albertans will pay $1 billion less in taxes in 2007. Families earning between $15,000 and $30,000 per year will be better off by almost $300 in 2007. Those earning between $45,000 and $60,000 will save almost $650, and 655,000 low income Canadians will be removed from the federal tax rolls altogether.

With the Canada employment credit and the increase in the basic personal exemption, people will be able to earn almost $10,000 in 2007 without having to pay any federal income tax at all.

As promised, the budget reduces the GST from 7% to 6%, effective July 1. This is a tax cut for which Canadians voted. This is a tax cut Canadians want. This is a tax cut that Canada's new government will deliver. A reduction to the GST will benefit all Canadians, including low income Canadians. It also will make Canadian products more attractive to consumers and it will strengthen the economy.

Effective July 1, the budget creates the brand new $1,000 Canada employment credit. This new tax gives Canadians a break on what it costs to work, recognizing expenses for such things as home computers, uniforms and supplies.

On personal income taxes, effective July 1, the lowest personal income tax rate will be permanently reduced from 16% to 15.5%. The amount that all Canadians can earn without paying federal tax will be increased each and every year for 2005, 2006 and 2007.

Those who operate small businesses in Calgary have told me how welcome the new tax cuts are, allowing them to hire more people at higher wages, to better compete and to retain employees in our booming economy. Effective January 1, 2007, the threshold for small business income eligible for reduced federal tax rate will be increased from $300,000 to $400,000.

The excise tax on jewellery will be replaced effective immediately, allowing Canadian businesses to compete on a level playing field.

Our larger employers will also benefit. Effective January 1, 2008, the general corporate tax rate will be reduced to 20.5% as part of our commitment to reduce this tax to 19% by 2010. Effective January 1, 2008, the corporate tax will be eliminated also. The federal capital tax is also eliminated on January 1 of this year, two years earlier than was originally scheduled.

As has been noted, the budget includes significant assistance for families and communities. For apprentices, the budget creates a new apprentice job creation tax credit of $2,000. For students, we are creating a textbook tax credit that will benefit approximately 1.9 million Canadian students at a cost of $260 million over the next two years.

There is just so much in the budget of which all Canadians should be aware. I hope they will perhaps go to the government website to look at these initiatives and the wonderful benefits for them. It is a budget that we promised during the election campaign. We made commitments and we are delivering.

For young families the budget provides a physical fitness tax credit of $500 to cover registration fees for children's sports and seniors have not been forgotten either. To provide increased support to Canadian seniors, the budget doubles the amount of eligible pension income that can be claimed as a pension income credit from $1,000 to $2,000 starting in the 2006 tax year, the first increase in more than 30 years.

I have so much more, but I see the time is fleeting. Our government's approach to spending is based on three principles: first, government programs should focus on results and value for money; second, government programs must be consistent with federal responsibilities; and third, government programs that no longer serve the purpose for which they were created should be eliminated.

In conclusion, I would like to note that the budget has the support of Canadians, particularly in my own province of Alberta. A poll done this last weekend showed that 67% of us support the budget. When we look at these details and more, across the board tax credits, focused spending on the priorities of Canadians and a commitment to debt reduction, it is no wonder why.

[Francis Scarpaleggia, Liberal, Lac-Saint-Louis, QC]

Mr. Speaker, I would like to preface my question by reading the headline in the editorial that appeared in the Globe and Mail the day after the budget, “How to complicate the nation's tax system”. The editorial stated:

So it's a pity the Conservatives have further burdened the tax form with the new math of political necessity. This week's federal budget is a hodgepodge of new credits, something for everyone but the family dog.

There is a great discrepancy, a great disconnect between what is in the budget, the approach that the budget takes, and the rhetoric of the hon. member and his colleagues on the other side of the House.

The hon. member and his colleague speak of freedom of choice. In fact, if we want to guarantee the greatest freedom of choice for Canadian taxpayers, we would cut their income taxes and they could decide if they wanted to save the money. They could decide if they wanted to spend the money. They could decide if they wanted to buy books for their children or for themselves. They could decide if they wanted to register their children for soccer or piano lessons.

Does the hon. member not agree that what the government has done, by creating 28 or 29 different tax reductions, infinitesimally small in many cases, is adopted what some commentators have called a social engineering approach to budget making?

[Lee Richardson, Conservative, Calgary Centre, AB]

Mr. Speaker, I am amused that the members opposite are complaining about tax reductions. There are 29 specific tax reductions in the budget. I know the budget is different. I know it is hard for the party opposite to accept that a party could actually run for office, make definite commitments to Canadians and, lo and behold, bring in a budget to keep those commitments to Canadians. These are not promises. These are commitments that we made to the people of Canada which we are keeping in the budget. I hope the Liberal side of the House will support it.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, there is a cost of cutting taxes and in regard to the budget, there were some cuts. One was to totally abandon the Kelowna accord, which basically said no to aboriginal Canadians in terms of giving them a quality of life and respect.

It said no to climate change which has basically resulted in the cancellation of virtually every climate change initiative that the Government of Canada had implemented.

It said no to low income seniors. The child allowance, the $1,200, is taxable, but at the same time, as the government is giving the $1,200 allowance, it is cancelling the young child supplement of $249. Indeed, as a consequence of that, there is another clawback as well as the increase in the tax rate on the first level of taxation.

Low income Canadians will actually have to return to the government in terms of taxes or reduced benefits otherwise payable to the extent that a family making only $20,000 would get less than $200 of the $1,200, whereas a single earner family earning over $200,000, would in fact get $1,100 back.

The figures are there in the Caledon Institute report. Low income earners will be worse off than high income earners. Why is it that the member thinks it is important that we take care of high income earners before those in most need in Canada?

[Lee Richardson, Conservative, Calgary Centre, AB]

Mr. Speaker, we have heard this rhetoric before. I must remind the hon. member that it is quite clear that all Canadians will benefit from lower taxes in this budget. Every Canadian right across the board, whatever income level, will have lower taxes starting this year and continuing on increasingly in 2007 and 2008. That is simply the difference between this government and the previous government.

The hon. member mentioned promises like the Kelowna accord and what they were going to do on Kyoto and for the environment. They were all promises but nothing was delivered in 13 years. This government, in this budget, has done more in 13 weeks than the previous government did in 13 years.

We are delivering on commitments that we made. They were not just false promises that were away down the road. We call it the hockey stick approach to promises down the road for more money. This budget delivers to Canadians. It delivers on commitments that the Conservative Party made during the election campaign and we are very proud of it.

[Carole Freeman, Bloc, Châteauguay—Saint-Constant, QC]

Mr. Speaker, I will be sharing my time with the member for Chicoutimi—Le Fjord.

It is my pleasure to take part today in the debate on the budget currently before the House. Many things have been said since the Minister of Finance read his budget on May 2. There have been many comments by analysts, and reaction has been strong. It is, however, important to take a more detailed look at the full impact of this budget in order to discover its real meaning and scope for the public.

Basically, it must be admitted that this budget is a transitional budget, nothing more, nothing less. The result of the most recent general election reflects the public's desire not to give the Conservatives a blank cheque. Indeed, the government's minority position in the House indicates clearly that nearly two-thirds of the population did not support the right-leaning policies of the Conservative Party.

Fortunately, in Quebec, the people had an alternative to which they have turned in the last five elections to make their voices heard and to defend their interests. That is particularly the case in my riding, Châteauguay—Saint-Constant, which I have the signal honour of representing in this House. For since the 1993 election and in every subsequent vote, the Bloc Québécois has proven to be the political vehicle of choice for a constant majority of the population of Châteauguay—Saint-Constant. This is a clear demonstration of the deep confidence that my fellow citizens have in the Bloc Québécois and in its leader to faithfully represent their interests in Ottawa.

The first budget of the Conservative minority government marks a transition between the extremely centralizing Liberal regime, sapped by scandal and corruption, and the pursuit of a neo-conservative ideology, developed and tested south of the border. I cannot insist too much on the transitional nature of this budget for, beyond the good news for middle-class taxpayers, we must keep a cool head and remember that the Conservatives have embarked upon a broad and far-reaching campaign to seduce the electorate, and are prepared to do anything to win a majority of seats in the House.

For us in the Bloc Québécois, it is precisely this that makes our attention and our vigilance more essential than ever. To the image-mongering and extravagantly populist discourse of the Conservative Party we will oppose rigorous analysis, a trademark of the Bloc Québécois. As our leader never tires of saying, we will examine each of the issues that comes before us on a case-by-case basis. There is no question of signing the government a blank cheque; rather we will support it where support is deserved. If a measure that is proposed is beneficial to Quebec, we will support it. And conversely, we will never hesitate to vote against the government if we perceive real detriment to the interests of Quebec.

Let there be no illusions. In no way has the Bloc Québécois changed its mission. With this change of government, we are still sovereignists and we believe more strongly than ever that the modern Quebec will find its true fulfilment with its full and complete sovereignty, as a nation in fact and in law.

To come back to the budget, for us, the key aspect of the Minister of Finance's exercise last week is recognition of the infamous fiscal imbalance. The Bloc Québécois was the first party to draw attention to this reality and to defend Quebec's interests by hounding the previous government to recognize the imbalance. In the process, we brought the other opposition parties onside, including the current government. This political process and this example of influence and persuasion demonstrate the Bloc's relevance and its key role in the development of Quebec.

Honestly and objectively, anyone who has made a careful study of the federal political scene in recent years will clearly see the Bloc's influence in a series of measures in the latest budget. This accomplishment is as significant as our long and painful battle for recognition of the fiscal imbalance. The proof lies in the major gains achieved for the population thanks to the Bloc's insistence and deep convictions. For years, my colleagues waged battles in this House for more funding for the social programs Quebeckers hold so dear.

Despite the federal government's brutal cuts to transfer payments, Quebec still managed to avoid the complete erosion of our social safety net. We should be proud of this, because it is a telling example of Quebeckers' solidarity and our tenacity in the face of the major challenges that have arisen in the past and are sure to arise in the future.

Among the files of the hour specifically affecting my riding of Châteauguay—Saint-Constant, undoubtedly the sensitive subject of social housing heads the list of our concerns.

The government can pat itself on the back for the injection of some $800 million for the funding of affordable housing. Nevertheless, as we all know, if it had not been for the Bloc Québécois, the Conservative Party would never have become aware of how uncertain access to housing is.

From 1993 to 2001, the Liberal government withdrew completely from the funding of new social housing. During all those years, the Bloc never gave up the struggle and called for investment to be restored to the ambitious but achievable objective of close to $2 billion a year.

In the riding of Châteauguay—Saint-Constant, no less than 22% of the population lives in rental housing. Also, we have at least some 4,500 single-parent families in the riding. That makes the matter of funding social housing all the more important, if we take into account the often difficult economic situation that some of these families have to cope with.

So, although the $800 million allocated to social housing is a big step, the Bloc Québécois will not give up and will continue to demand that the undistributed profits of the Canada Mortgage and Housing Corporation be reinvested, instead of being capitalized as the previous government got in the habit of doing.

If the trend continues, the surpluses accumulated by the Canada Mortgage and Housing Corporation in 2008 will reach some $7 billion. This is a huge sum, which is not justified in the current context.

Similarly, credit is due to the Bloc Québécois for its insistence and the rigour of its budget analyses, which resulted in the injection of billions of dollars in funding for post-secondary education. For years now, particularly during the recent election campaigns, that is, in 2000, 2004 and 2006, the Bloc Québécois asked the federal government to use its financial leeway to gradually increase transfers for college and university education.

This announcement is all the more important since about three-quarters of the population of Châteauguay—Saint-Constant have completed post-secondary studies. Since the past is often an indication of the future, it is a safe bet that our children will thus be able to afford to pursue quality studies.

It is therefore important to note another important gain made by the Bloc, concerning tax exemptions for scholarships and bursaries. We have to realize that the federal government has taxed the scholarships and bursaries received by students for a long time. As paradoxical and absurd as that may seem, for years the federal government has collected income tax on scholarships and bursaries paid to students by the Government of Quebec, a funding area from which it nonetheless withdrew, the better to pay off its recurring deficits.

Not only did the government in Ottawa build up a phenomenal fiscal capacity for itself today by ending the transfer payments that defined the federal scheme, but then it also turned its gaze on things that never belonged to it.

The major items highlighted earlier show the important progress made by the Bloc since the Conservatives came to power. While this is an impressive track record, we have to keep in mind that the race has not yet been won.

I have said it before and I say it again, this budget is a transitional budget, the stated aim of which is to get the Conservatives a majority in the next general election. Then, with a little more elbow room, the right will finally be able to implement its real ideas to the letter. That unknown future is precisely where my greatest fear lies.

At the top of my list of concerns is the complete absence of any measures to improve employment insurance. It must be noted that the employment insurance fund is overflowing with the billions of dollars in surpluses that were amassed during the years of Liberal rule. And yet as recently as the day before the budget speech the Prime Minister was supporting the Bloc’s position on paying out those surpluses for the benefit of the unemployed and the people who have paid into it.

I would also draw your attention to the fact that the Minister of Finance has failed to take into consideration the often hard economic reality of older people. He has had nothing to say about this issue, crucial as it is for thousands of our fellow citizens. Thousands of older people have been cheated over the years by the federal government, which is still refusing to make payments to the people in question fully and completely retroactive.

Nor has any provision been made to assist older workers, whose job prospects are rather dim.

The Conservatives have let older people down and they will be jeopardizing environmental protection for generations to come. At a time when political action is based on sustainable development, the Conservative government is trying to reshuffle the deck by introducing the profit variable.

Profits, of course, for the shareholders of the big oil companies that have seen record profits for years and whose influence, spreading out from Calgary, is grounds for concern.

Time flies. I could go on about the irritants in this budget, but I will yield the floor to other speakers.

[Sukh Dhaliwal, Liberal, Newton—North Delta, BC]

Mr. Speaker, first of all I would like to congratulate the member on giving a great speech, from which it was quite evident that she has quite a few families in her riding who are earning under $36,000. How is the member going to defend the values and rights of those families when the government has brought in a tax increase in only one category, that is, the lowest income families? They will be taxed more than anyone else.

[Carole Freeman, Bloc, Châteauguay—Saint-Constant, QC]

Mr. Speaker, I wish to thank my colleague for his question.

It is true that it is very important to stand up for low-income families. If there are so many low-income families in the riding of Châteauguay—Saint-Constant, perhaps the reason is the fiscal imbalance, which has been around forever. If moneys were truly transferred equitably, there would be a better quality of life.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I listened with great interest to the hon. member's speech, but I am still somewhat confused, and I have been confused in terms of listening to the Bloc during my two terms in this place. My hon. colleague from Windsor West referred the other day to the Bloc as a dog with no legs: it barks, but it does not go anywhere.

During the last session in Parliament we worked very hard to negotiate changes to the Liberal budget. These changes included $1.6 billion for public housing, $1.5 billion for universities, $800 million for public transit and money for public infrastructure. We were denounced by that party for failing the people of Canada.

[An. hon. member]

They called us traitors.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Yes, Mr. Speaker, they called us traitors, yet a very rightist government brings in this very rightist budget and their party rolls over immediately. Then those members stand up and say they are concerned about rightist policies coming forward, when this budget has destroyed Kyoto, when this budget will destroy any plans for child care, and when it is giving complete tax breaks to corporations.

I have a question for the hon. member. Her party had an opportunity to make changes to EI. It could have done that. It could have negotiated its support, but it did nothing. Those members simply stood up and said they support this budget. Perhaps they are supporting it because the Conservatives are at 34% in Quebec right now. Why did the hon. member's party not even try to negotiate anything to change this or to bring about more progressive policies instead of just getting into bed with a rightist government?

[Carole Freeman, Bloc, Châteauguay—Saint-Constant, QC]

Mr. Speaker, I thank my distinguished colleague for his question and comments.

The Bloc Québécois decided to support the budget because it felt it was a transition budget, as I mentioned in my presentation.

That means that we are not giving the Conservative party a blank cheque and that we are not supporting absolutely everything it proposes. Several recommendations regarding this budget are points raised by the Bloc Québécois. We will see whether or not the Conservative Party, as it has stated, will resolve the fiscal imbalance—a very important issue—within a year.

The Bloc Québécois is not giving the Conservative Party a blank cheque. Quite the opposite, as I stated in my speech. If some of the provisions did not meet with our expectations, we would not hesitate to oppose them. If necessary, the Bloc Québécois may go so far as to topple the government.

[Jacques Gourde, Conservative, Parliamentary Secretary to the Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board]

Mr. Speaker, I congratulate my colleague for Châteauguay—Saint-Constant on her speech.

I would like this colleague to explain her vision for future Quebec generations, who will have to manage the new challenges of globalization of markets, technology and know-how.

What future path does the Bloc Québécois propose for my government and my children?

[Carole Freeman, Bloc, Châteauguay—Saint-Constant, QC]

Mr. Speaker, I thank my colleague for his question and his comments.

The only way for us to meet all of those expectations is to achieve Quebec's sovereignty. Quebec must have full control in all areas, economic, cultural and the rest. That is really the only way to do it. That is our vision of things. That is the only way for us, the people of Quebec, to move forward.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Mr. Speaker, before I begin, I would like to congratulate the member for Châteauguay—Saint-Constant on the speech she just gave about the Bloc's position on the budget.

I would like to emphasize something to my Conservative colleagues. For the past several days, we've been hearing a number of them rejoice in the Bloc Québécois' support for the budget. However, I want to make it clear that it was the Bloc Québécois that brought the issue of the fiscal imbalance to Ottawa, here, to the House of Commons. Moreover, without the Bloc Québécois, it is unlikely that any deadline would have been set for resolving the fiscal imbalance.

The Bloc Québécois has always been honest with the citizens of Quebec. The fiscal imbalance was one of our key issues before and during the election campaign. Now that we have a specific commitment and a deadline, the Bloc Québécois can see for the first time that finally, a government in power in Ottawa, in the House of Commons, recognizes the fiscal imbalance.

The government's firm commitment to address the issue and eliminate the fiscal imbalance is a major step forward for Quebec. That is why the Bloc Québécois will support this budget when it is put to a vote in the House of Commons.

This is a transitional budget, which deserves our support and over which this minority government should not be brought down. The government will have its real test when its next budget is tabled, which is to say the budget for the 2007-08 fiscal year.

Even though there are many irritants in this budget, the main consideration is the government’s openness and commitment to settling the question of the fiscal imbalance, which has been penalizing Quebeckers for too long.

The Bloc Québécois sees that, in addition to the fiscal imbalance, the budget reflects a number of the demands or measures advocated and discussed by the Bloc Québécois here in the House of Commons. We can point to the assistance for post-secondary education, affordable housing and farmers. As well, we are pleased with the review of the Canadian farm income stabilization program, the additional funding for infrastructure and public transit, tax-free student awards, the tax improvements for micro-breweries, the tax credits for public transit users—something that the Bloc Québécois has requested on several occasions here in the House—the elimination of the excise tax on jewellery, and the tax credits for tools.

On the other hand, there are a number of annoying features in the budget that we should look at. There is employment insurance, which was completely ignored by the Conservative government. This budget provides absolutely nothing to help the people wrestling with the consequences of the cuts to employment insurance, which were made over the course of 12 years by the Liberal government that preceded this minority government. Nor does it address the seasonal workers who are only too familiar with the gap between the end of their benefits and the beginning of their next season of work. This problem has not been fixed, and the budget is silent about it.

In my region of Saguenay—Lac-Saint-Jean, many workers are penalized by the current employment insurance system. Despite the huge accumulated surpluses, this government has done nothing. It is continuing down the same path as the Liberal Party, which is to say it is further increasing these accumulated surpluses, these astronomical amounts paid by the unemployed.

I come from a riding, Chicoutimi—Le Fjord, that is located in the Saguenay—Lac-Saint-Jean region. Some parts of this budget leave a very bitter taste in my mouth, especially the Conservative government’s lack of a firm commitment to a program to help workers, a new POWA, which is to say a program to sustain the incomes of older workers when they lose their jobs in massive lay-offs.

If this government had taken immediate action instead of conducting a feasibility study, workers in my riding laid off following the Port-Alfred plant closing in La Baie could have benefited from a worker's assistance program. The Abitibi Consolidated plant closed and workers with several years of service under their belts were suddenly unemployed.

There are currently some retraining and reintegration programs, but they do not really work and there are problems. These programs do not apply to the majority of the workers. Most of the workers over 55 are not eligible for the retraining programs or the work force reintegration measures. I will explain why.

In a region, a village or a small town where there is very little economic diversity, workers cannot be hired by more than one employer since there are not enough businesses. Furthermore, some employers do not hire these workers because they have only five or six years left before they retire. Instead, these employers invest in younger employees who will stay for many years.

There are other irritants I want to talk about. Take for example the $1,200 per child allowance. We had submitted a much fairer proposal, but the Conservative government did not use it. The assistance being given to parents is still taxable and that is unfair to families in need. If this government had a bit of humility, this problem could have been resolved quite easily and we could have truly helped families in need.

The Conservative government has nothing in its budget for implementing the Kyoto protocol, which is essential for reducing greenhouse gas emissions.

The same goes for arts and culture. The amount allocated is an additional $50 million for two years. I had the opportunity to do a pre-budget tour from Vancouver to Montreal, excluding Toronto, where I encountered arts and culture movements that were calling for more money. The Conservative government did not answer these calls in its budget.

I will talk about one last point regarding the Canadian securities commission.

Before and during the election, the Conservative government spoke of respect for jurisdictions. It said it would respect the areas of jurisdiction of Quebec and the provinces. Now that it is in office and it is time to act, what does it propose? It proposes to meddle in the jurisdictions of Quebec and the provinces.

In my books that amounts to saying one thing and doing the opposite. It is inconsistent and unacceptable.

In conclusion, I will summarize briefly by saying that a number of aspects of the Conservative budget leave me perplexed; the $1,200 taxable allowance; the dropping of the Kyoto protocol in favour of a Canadian program yet to come; the fact that there is no mention of the humungous surpluses amassed by the Canada Mortgage and Housing Corporation; the fact that there was nothing on employment insurance; the establishment of a feasibility study on an income support program for older workers.

However, we will have to wait and see. The Conservative government has promised to resolve the fiscal imbalance by next spring, and that is significant progress. On this point, we can give it a good grade for bringing solutions to the fiscal imbalance.

The Conservatives must know that, had it not been for their official and definite commitment to resolve the fiscal imbalance within a specific time frame, we would have rejected the budget.

In terms of action, a first ministers' conference will be organized to discuss the problem of the fiscal imbalance.

We therefore support this budget, even though it contains a number of irritants. I hope the differences will be debated here in the House or in committee so the Bloc positions may be made known and so the people in my riding, my region and in Quebec can see that the Bloc Québécois truly defends the interests of Quebeckers.

I would just like to say a few words to Quebeckers to let them know they can count on the Bloc to look after their interests.

[John McCallum, Liberal, Markham—Unionville, ON]

Mr. Speaker, it seems strange that the Bloc would support a budget that goes against everything it believes in. This budget offers nothing but cuts for the poor, aboriginals and low-income women with children. It offers nothing but cuts for the environment and nothing at all for the fiscal imbalance.

These days, the Minister of Finance is talking about fiscal balance, which implies that there is no problem. The budget actually took money away from the provinces, which is the opposite of what the Bloc wants. Moreover, there is no money to correct the fiscal imbalance—all of the experts are telling us that the government has spent all it has. Therefore, there will be nothing to correct the fiscal imbalance over the next few years.

The question is, why is the Bloc voting for it? There is only one possible answer. Even though the budget goes against everything they believe in, they are afraid they will lose their seats in Quebec if there is an election, as shown in yesterday's CROP poll.

Despite the fact that the budget goes squarely against everything in which the Bloc believes, like a defanged pussycat it follows meekly in support of a budget that goes against the fiscal imbalance and everything else that party stands for. The simple reason is that the Bloc knows if there is an election it will lose seats in Quebec.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Mr. Speaker, I explained why we support the Conservative budget. Clearly, it includes a measure to correct the problem of the fiscal imbalance, and the Conservative government has made a commitment to do this. That is why we support this budget.

Let us remember that the Liberals, who sat opposite us before this minority government, never recognized the fiscal imbalance. They were not even able to say the words “fiscal imbalance”. To them, it did not exist, not even in their minds. It was impossible. It was something the Bloc Québécois had imagined and introduced here in this House.

For the first time, we have a government that recognizes the fiscal imbalance. At the very least, it wants to try to correct this imbalance.

I can assure the people that we will closely monitor and watch this government. For us, the true test will be the next budget. Then we will see what changes have been made and what actions have been taken in the course of this fiscal year. When the next budget is tabled, we will really be able to see what this government is made of.

In my speech, I also referred to several irritants, including the securities commission the government wants to introduce. I mentioned that when it was in opposition, this government argued in favour of respecting the jurisdictions of the provinces and Quebec. Now, it wants to impose something different. It wants to interfere in Quebec's jurisdictions by setting up a Canadian securities commission.

[Jacques Gourde, Conservative, Parliamentary Secretary to the Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board]

Mr. Speaker, I congratulate my colleague on his speech.

How would the Bloc Québécois propose to aid development and regional economic diversity in order to help workers over 55 re-enter the labour market?

[An hon. member]

There is $45 billion in the employment insurance fund.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Mr. Speaker, when the Conservatives were on this side of the House, they, along with the Bloc Québécois, advocated a new POWA, an income support program for older workers.

In fact, surpluses from the employment insurance fund would provide the budget to create such a program. This program existed until 1997, until the Liberals cancelled it. Since the Conservatives supported the program when they were in opposition, I do not see why they would not subscribe to such a program now that they are in power.

Studies being conducted means that no action is being taken. Feasibility studies give nothing to workers, nothing at all. What we need is action. We need a real program for workers.

A factory closed in my riding and 640 people lost their jobs. Those workers could have benefited from a program such as a new POWA.

[Greg Thompson, Conservative, Minister of Veterans Affairs]

Mr. Speaker, I will be splitting my time with the member for Barrie.

This is the first opportunity I have had to stand in the House with you in the chair, Mr. Speaker, and I congratulate you on your appointment as Deputy Speaker. You have had a long history in this place, dating back to 1979, and you have the respect of the House. Your seniority in this place is well recognized. It is nice to see you in the position.

This budget is a good budget. I have to reference it by going back to the Liberals of the past. After almost 13 years of missed opportunities and empty promises from Liberal prime ministers, Canadians can finally claim to have a federal government that not only reflects their priorities but respects their voice. This is a balanced budget, a Conservative budget, and it is about restoring the faith of voters who had started to grow cynical about politics and politicians. It is a refreshing change.

The budget is also about keeping election promises, a practice that some Canadians sadly were beginning to think had gone the way of the Edsel and the eight track cassette, both of which you can remember, Mr. Speaker, although perhaps I am getting off to a bad start with you by saying that.

Our budget provides about $20 billion in personal income tax relief to Canadians, more than the last four Liberal budgets combined.

We are reducing the GST from 7% to 6% and eventually to 5%.

On top of that, there is tax relief for seniors, students, working Canadians, commuters, apprentices, and parents with active children. With that last, of course, I am referring to the tax credit that parents will get when they enroll their children in sports activities. A healthy nation is important.

The budget is balanced and still pays down the national debt. More important, for every dollar of new spending in the budget, we have $2 in tax relief.

We have $3.7 billion for real choice in child care. That translates into $1,200 a year going to parents for every child under the age of six. This is sort of about the Liberal plan versus the Conservative plan, but of course the Liberals never had a plan. They were in office for 13 years, promised it through successive elections and never delivered. On top of that, they never built one child care space. That is their sad record.

We are also investing in safer streets and communities. The Minister of Justice and the Minister of Public Safety made some of those announcements last week. All of it will be coming to the floor of the House of Commons for debate.

There is new money for reducing health care wait times.

There is $16.5 billion for infrastructure.

There is $5.3 billion for defence over five years, including the recruiting of 23,000 regular and reserve forces members.

There is $2 billion more for farmers over two years.

As well, Mr. Speaker, and being a westerner you would know this, there is an additional $500 million for farm support, a one time investment of $1 billion for disaster relief, and accelerated use of the $755 million under the grains and oilseeds payment program, which was one of the first things we announced.

As Minister of Veterans Affairs, I am also pleased to announce that we have $352 million more for veterans in the main estimates. One of the arguments we sometimes hear in this place is that we cannot put everything into the budget announcement, but we have that $352 million for our veterans. Obviously, a lot of that is going to the implementation of the new charter, which every member in the House supported and continues to support.

As we well know, we get elected in our hometowns and our home constituencies, so I think it is important that I mention how this impacts on the province of New Brunswick. New Brunswickers, under our plan, will pay $183 million less in taxes next year. Families in New Brunswick earning between $45,000 and $60,000 a year will be better off by about $650 a family under our plan.

The universal child care benefit will provide New Brunswick parents with $50.9 million next year. Under the Liberals' plan, the one they never did actually enact, for New Brunswick their agreement would have resulted in $110 million for New Brunswick over five years, so that means approximately $5 million and some change a year versus our $50.9 million next year alone.

There is $16.5 billion for infrastructure, as I mentioned, with $13.9 million this year alone in federal gas revenues for New Brunswick municipalities.

There is $23 million to modernize New Brunswick's post-secondary institutions.

We have $9.4 million available immediately to improve the province's transit systems.

There is $18.4 million for affordable housing.

All this money spread over a province of only 700,000 people is significant.

There is an extra $18.7 million in new equalization payments for New Brunswick. We are committed to solving the fiscal imbalance, which the former government could not do. The present government is committed to this. We are going to do it.

As well, there is $4 million to be put toward reducing health care wait times in New Brunswick.

Also, I want to remind the House and New Brunswickers of some of the announcements that we have had in New Brunswick over the last number of weeks.

The Prime Minister was in New Brunswick on March 24. I was with him as we travelled around the province. He announced the following: $200 million for highways; $6 million for a new stadium in Moncton to host the world junior track and field championships; and $2.8 million for the Saint John Harbour cleanup.

This last is one where we have had a bit of controversy in the province of New Brunswick, because this is obviously $2.8 million more than what the Liberals ever provided for harbour cleanup in Saint John, New Brunswick. Their argument is that it is not enough. We agree, so we have made a commitment that we are going to work with the city of Saint John and the province of New Brunswick to see a completion of this project over the next number of years.

We are not going to be as the Liberals were in terms of making announcements only to have people find out that they were not real, that they were bogus announcements. For example, the harbour cleanup situation in Saint John was simply an announcement, a sort of deathbed repentance. It is something the Liberals announced without having cabinet authority or having gone through Treasury Board.

They went into the city of Saint John and made an announcement less than a month before the election simply for the sake of announcing it, but with no firm commitment. It is a file that the present member for Saint John fell asleep on a number of years ago when he was a member of the government from 1993 to 1997. We are committed to that project and, over the course of a number of years, we will get it done.

With only one minute left, I will mention what I think is also an important one: $21 million was announced through the Atlantic innovation fund for nine research projects in the province of New Brunswick, for a total value, with all the partners, of about $52 million.

We were the ones who came up with the moneys to help out our struggling agriculture industry, with real money to get the job done, and also with $5.5 million to help with the second phase of the Fundy Trail, a world class tourist attraction.

We have invested in infrastructure in many spots around the province of New Brunswick in the last number of weeks. We are totally committed to the province of New Brunswick and to this country of Canada.

We are doing the very best we possibly can. I think that is reflected in the budget.As I said earlier, I think it is refreshing that Canadians can actually see a government doing what it promised to do.

[Gérard Asselin, Bloc, Manicouagan, QC]

Mr. Speaker, I listened attentively to the member's speech. He gave a long list of what is in the budget. He is a Conservative minister in the government in power and he extolled the virtues of his budget. However, I will speak of what is not in the budget.

Of course there are several irritants. The excise tax on gasoline could have helped develop the tourism industry. However, there is not a word about this subject, even though the tax was imposed by the Liberals. This tax is hidden in the price of gasoline. There is talk of an oil crisis with the price of gasoline increasing to $1.50 per litre. The Conservatives have done nothing to reduce the excise tax on gasoline.

Furthermore, in the Speech from the Throne and the budget there is nothing about employment insurance. Yet, when in opposition, the Conservative Party voted with the Bloc Québécois to make certain recommendations, and this in a unanimous report by the parliamentary committee.

Today, the Conservatives are in power and there is no mention of employment insurance in the Speech from the Throne or the budget. However, according to the Auditor General's figures, the employment insurance fund has accumulated a surplus of over $50 billion. This money comes from employees and employers. Not one cent is government money.

Will my colleague, who is a member of Cabinet, commit this morning to the unemployed, the seasonal workers, the Sans-chemise groups, the committees for access to employment insurance, to recommend to the Prime Minister the true reform of employment insurance and the establishment of an independent fund?

At present, it is theft by government and a hidden tax on the backs of the unemployed and seasonal workers. I believe that if the Conservatives are serious and capable of some logic, they will stop taking money from the fund at the expense of the unemployed and will give them a truly improved fund and an independent fund.

[Greg Thompson, Conservative, New Brunswick Southwest, NB]

Again, Mr. Speaker, I could step through many elements of the budget, but at the end of the day we are providing real tax relief to Canadians and we are committed to a strong and vibrant economy.

The member may want to focus on unemployment, but we want to focus on employment. We support the program, obviously, and as members know, in my career in the House I have been up on that subject many times. At the end of the day, we want to put in a tax system that supports our workers, supports industry, and supports growth in the economy, along with education and training for our young people so that we will have the best trained workforce in the world. Those are some of the commitments we have made and obviously some of them are in the budget.

I am pretty proud of how our budget has addressed some of those very issues he mentioned. Again, I think it is very good news for the province of Quebec. I do not have the exact numbers here, but I have seen them. I think he appreciates them because he supported our budget initiative, obviously because it is good for the province of Quebec.

I am very proud of what we have done for his province. I am proud of what we have done for the other areas of the country as well.