Mr. Speaker, this is a good question. This sets aside what the fundamental difference is of this government versus other parties in that we believe in choice.
We believe that Canadians are smart enough and wise enough to choose for themselves what they would invest in. We believe this offers a great option not only to those who would choose an RRSP or retirement fund which is basically just tax deferral. The taxes need to be paid at some point in time, so that just defers it until potentially the end of life, but what we find and believe can happen is this would be a new way to encourage Canadians to save.
We realize there are many things that happen along the way and for Canadians starting a new family or needing to renovate, or buy a house, sometimes cash is at a premium. Quite frankly, a tax-free savings account would provide the flexibility that the RRSP does not provide at this point in time because that money is locked in. There are huge penalties to pay in terms of taxes when that money is cashed out.
This government believes that a dollar left in the hands of our constituents is better than a dollar left in the hand of government. We believe individuals know what is best for their families. They know what is most prudent and what makes the most amount of sense.
This vehicle has been demonstrated to work around the world, so once again, it is not anything new but certainly something that will create the flexibility, will give people an opportunity to make the choices they want to make, and to save as they see fit.
Of course, because it is tax-free, over time people may choose this vehicle instead of an RRSP. Once again, it will be their choice to save as they will and this will create some options for individuals who do not have the same needs and issues as other individuals.