Debates of Feb. 2nd, 2011

Daniel Paillé Hochelaga, QC

Mr. Speaker, it is clear that the government lacks political will when it comes to both harmonization and tax havens.

In parliamentary committee, Brigitte Alepin, a specialist in the field, admonished the government for making it easier for the wealthy to evade taxes. She reminded us that the last budget contained new provisions that encourage tax evasion through the use of tax havens.

Why does this government encourage the use of tax havens?

Keith Ashfield Minister of National Revenue

Mr. Speaker, this government is working to address the issue of tax havens.

The following is an interesting quote from Jeffrey Owens of the OECD recently at the finance committee:

I talk to a lot of business people, financial advisers, investment banks. And the one thing that clearly has changed here is that if they get a Canadian client who comes to them and says, “Look, I want to evade taxes; perhaps I could use Barbados or somewhere else”, they'll say “Forget it. Those days are gone.” So there's been a change in attitude on the part of the business community, and that should not be underestimated.

This is thanks to the work of our government.

Daniel Paillé Hochelaga, QC

Mr. Speaker, that same individual chided Canada for having agreements with Panama, which is a tax haven.

Since the beginning of the crisis, Canadian banks have raked in an after-tax net profit of $46 billion, $6 billion of that because of their presence in tax havens. That seems to me to be quite a bit.

By putting an end to tax evasion, the government could rebalance its finances and would have the leeway to help the economic sectors that need it.

Why is the Minister of Finance helping his banking friends and saving them billions of dollars through their use of tax havens?

Jim Flaherty Minister of Finance

Once again this year, Mr. Speaker, the World Economic Forum has rated our financial system the best in the world. This has happened for several years now.

We have been through a very difficult time, a very difficult recession, but we are one of those countries, and there are only a few in the developed world, that did not have to take taxpayers' money and put it into our banks.

Our banks were able to continue. Our credit system was able to continue. That is one of the reasons jobs have been recovered, and we have about 400,000 net new jobs in Canada now than we lost during the course of the recession.

Stephen Harper Prime Minister

Mr. Speaker, the Minister of Finance and his colleagues, his provincial counterparts, are discussing ways to improve the Canada pension plan. However, we must reach an agreement with the provinces and at this time, Canadians do not want us to increase premiums and taxes to improve pensions. We are currently examining this option for improving our pension system, as we have already done through many other measures.

Jack Layton Toronto—Danforth, ON

Mr. Speaker, governing is about making choices.

The Prime Minister could choose to work with us on the New Democrat plan that would make life more affordable for our seniors or he could choose Bay Street and more corporate giveaways. Clearly, that will be the Conservatives' choice, judging by the reaction in their backbenches at the moment.

The New Democrats' CPP plan is doable. It is modest in cost and it is realistic, and it has been endorsed by the former chief actuary of the CPP.

Will the Prime Minister agree to our practical pension plan and include it in the budget?

Stephen Harper Prime Minister

Mr. Speaker, as I have indicated earlier, the government has adopted several measures to improve the pension system in this country.

The Minister of Finance and his provincial counterparts recently announced the development of the registered pooled pension plan in terms of improvements to the CPP.

That is an ongoing subject of discussion with the provinces. The provinces do have to approve. Many do not approve and at this time, at least in our view and certainly in the view of most, this is not the time for increases in CPP premiums.

Jack Layton Toronto—Danforth, ON

Mr. Speaker, it seems the Conservatives have made their choice. Their preferred option for fixing the pensions is to take the big banks' approach. It reminds me of that ad we see on TV. The Bay Street model does not work. The managers take up to 40% in fees. We call them egg management fees.

According to the polls, Canadians prefer building their retirement based on the improved Canada public pension plan. That is very clear. Why is that? It is because it is a plan that is owned by Canadians, guaranteed efficient and inflation-proof.

Will the Conservatives include improvements to the CPP in the budget?

Stephen Harper Prime Minister

Mr. Speaker, changes to the CPP require the consent of the provinces. It cannot be done by the federal government unilaterally.

While the Canada pension plan is an important part of our retirement income system, so are a range of private and individual savings options. There are many financial planners in many financial firms in this country who do an excellent job of providing services for their clients in planning for their retirement.

John McCallum Markham—Unionville, ON

Mr. Speaker, Canada has been a leader in nuclear energy for 60 years. The Conservative policies are threatening that reputation as well as tens of thousands of jobs.

When the Conservatives announced their intention to sell AECL, they put a halt to all contracts. Meanwhile, Ontario is looking to expand its nuclear generation, and AECL would be the natural choice.

Why is the government starving AECL, reducing its value and grinding Ontario's energy plan to a halt?

David Anderson Parliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board

Mr. Speaker, we are doing nothing of the sort. Our government is continuing the transaction process in order to establish a more competitive CANDU, Inc. under private ownership and to protect the interests of Canadian taxpayers. We hope to conclude this process as quickly as possible in order to provide certainty to AECL employees, to clients and to the industry.

John McCallum Markham—Unionville, ON

Mr. Speaker, policies are reducing the value of AECL and it is also all about jobs. There are tens of thousands of jobs in the GTA alone. Ontario was hit hard by the recession and many of those jobs have not returned. There is a real opportunity to create and maintain jobs, as well as ensure that Canada remains a world leader in nuclear energy.

Why do the Conservatives insist on killing jobs and selling out Canada's nuclear industry? Have they never heard of the Avro Arrow?

David Anderson Parliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board

Mr. Speaker, the hypocrisy is staggering. For 13 long years, the Liberals starved that organization of funding and support. Our government is continuing this transaction process. We are going to get it done as quickly as possible and it is going to be done for the benefit of the industry, for the clients and for the employees.