Debates of March 4th, 2008

Jim Flaherty Minister of Finance

Mr. Speaker, the hon. member says that the budget did nothing for manufacturing. He could not be more wrong. There are $1 billion in accelerated capital cost allowances. Add that to the $1.3 billion last year. There are $2.3 billion for manufacturers alone with respect to acquiring machinery and equipment and writing it off over a five year period, exactly what was recommended unanimously by the industry committee of the House. This is a stimulus to manufacturers and it is working. We are seeing more acquisition of—

The Speaker Peter Milliken

The hon. member for Outremont.

Thomas Mulcair Outremont, QC

Mr. Speaker, try telling that to the 130,000 people who lost their jobs last year in manufacturing.

Statistics released just yesterday show that economic output contracted 0.7% in December, a major decrease in fourth quarter exports caused by a drastic 2.7% decrease in international shipment of goods. Manufacturing activity was down 3.2%, the lowest level since 2001. Motor vehicle production shrank 27%, the largest drop since 1990. All these declines amount to one thing: ordinary Canadians losing their jobs.

Is the Minister of Finance sure that ignoring it is going to make it go away?

Jim Flaherty Minister of Finance

Mr. Speaker, Canada's economic fundamentals are very strong because we prepared for an economic slowdown in the United States. We acted early. We acted last year. We were prepared. The stimulus already entering the Canadian economy is $21 billion, which is 1.4% of GDP. We see the example already in the month of February, with record auto sales in Canada.

Navdeep Bains Mississauga—Brampton South, ON

Mr. Speaker, Canadians would not want American politicians interfering in our elections, so why is the Prime Minister's Office actively interfering in the American primaries? The Prime Minister's chief of staff, Ian Brodie, deliberately leaked false statements about Barack Obama. Trust has been breached. Damage has been done. Americans are enraged.

Things do not leak from the PMO by accident. Will the Prime Minister stand today, admit to deliberate meddling and ask his chief of staff to resign?

Maxime Bernier Minister of Foreign Affairs

Mr. Speaker, it is far from the truth. The Canadian embassy in Washington yesterday issued a statement about this.

What I can tell the House and the hon. member is that the American people will decide on their future and this government will not interfere in U.S. politics.

Bernard Patry Pierrefonds—Dollard, QC

Mr. Speaker, that is the kind of flagrant and pervasive political interference that the Prime Minister used to complain about. His chief of staff deliberately leaked the details of a confidential diplomatic conversation because he thought it would harm the Democrats and help his Republican friends.

Who will confide in any Canadian diplomat now, knowing that the information will be passed on according to the partisan political agenda of the Prime Minister and his chief of staff?

Is the American Republican cause so important that the Prime Minister is willing to sacrifice Canada's reputation internationally?

Maxime Bernier Minister of Foreign Affairs

Mr. Speaker, our embassies around the world submit reports to Ottawa on the political situation in various countries and we regret the fact that one of those reports found its way into the press. That was made clear. The Canadian ambassador to the United States issued a press release yesterday on this matter. The fact is, we have no intention of interfering in the campaign for the American presidency.

Diane Marleau Sudbury, ON

Mr. Speaker, Ontario has adopted a balanced strategy by cutting corporate taxes and investing in skills and innovation. Ontarians do not agree with the Conservatives' strategy of simply cutting taxes. The distress of families with members that are losing their jobs in the manufacturing and forestry sectors is very real. Why is the Minister of Finance continuing to play politics with the lives of Ontarians?

Jim Flaherty Minister of Finance

Mr. Speaker, the problem in Ontario, as I am sure the member opposite knows, is it has the highest taxes on new business investments in Canada. Its own competitive board, appointed by the Government of Ontario, says that not only are they the highest business taxes in Canada, but they are the highest in North America and the highest among the major economies.

Those taxes are bad. If members do not believe me, listen to this: “A low corporate tax rate is not a right-wing policy or a left-wing policy. It is a sound policy”. Who said that? It was the Leader of the Opposition.

The Speaker Peter Milliken

Order, please. The hon. member for Churchill has the floor to ask her question and I cannot hear a word.

The member for Churchill.

Tina Keeper Churchill, MB

Mr. Speaker, prominent members of Canada's film industry voiced their disgust that the government, under the influence of an ultra right-wing activist, has arbitrarily decided to censor Canadian cinema.

Why did the minister refuse to show up at the Genies? Was she too busy meeting with Charles McVety, a man who boasts he has the direct influence—