Susan Whelan

[Excise Act, February 22nd, 1994]

Mr. Speaker, as in past weeks we have learned a lot today about the smuggling issue and we will continue to discuss the matter, but discussion is not enough. To the government members of the House the bottom line remains that we have a responsibility to take action now against what has become a national epidemic of problems created by smuggling. That is why I am speaking today in support of Bill C-11.

As the hon. Minister of National Revenue pointed out earlier today, smuggling has grown into a national problem requiring a national solution. No longer is the smuggling phenomenon restricted to specific regions of the country. It has been evidenced today by many members in the House that it is wide-

spread across Canada. It has spread to all parts of Canada and it affects all Canadians.

History has shown us that if left unchecked, the problem can only get worse. History has also shown us that empty threats and promises are not effective against this phenomenon. It is time for action now.

As well, we have learned over the past few months that the costs of smuggling are staggering. Tobacco smuggling alone has cost the federal government over a billion dollars in lost revenue. The provincial governments have also lost a billion dollars to tobacco smuggling.

This is revenue that was to be used for programs such as health, social services and employment, revenue that has been taken away from government thus reducing its ability to help Canadians who need it the most, revenue that has been placed into the hands of criminals and organized crime to finance their elicit activities.

These activities are not restricted to contraband tobacco products but also drugs, alcohol and weapons. Smuggling has also cost the legitimate business operators in Canada who cannot compete with the tobacco contraband market. These businesses are losing more sales and in more areas of the country as contraband sales steadily increase.

The costs are not all monetary. Smuggling is no longer just an issue of tax avoidance by smokers. It has resulted in cheap tobacco products being easily accessible to young Canadians. I want all Canadians to know that the smuggling networks have penetrated our school yards. They are offering cheap tobacco products to young people. These same networks that used to sell drugs and other contraband are used to sell drugs and other contraband products to our youth.

Past government inaction and intolerance of tobacco smuggling has resulted in a disregard for Canadian laws, disregard not only from criminals but from Canadians who would otherwise be law abiding citizens.

Bill C-11 is an integral part of this government's four point anti-smuggling and anti-smoking initiative. The proposed amendments that Bill C-11 will make to the Excise Act, the Customs Act and the Tobacco Sales to Young Persons Act are evidence of this government's resolve to act to restore respect for our laws and to protect young Canadians.

I would like to describe again for those members present in the House the basic elements of the bill.

The first amendment would allow the government to designate provincial and municipal police forces as appropriate with authority to enforce provisions of the Excise Act, expanding the police resources to combat smuggling.

This will assist in cutting off the flow and distribution of contraband products into the marketplace. These are the same cheap products that are reaching our young Canadians and the same cheap products that undermine anti-smoking initiatives and drain revenues from legitimate public programs.

The second amendment, both to the Excise Act and Customs Act, would allow for the immediate disposal of certain seized products without hindering the successful prosecutions of the criminals involved. This measure will save taxpayers significant costs each year by reducing the cost of storage of these goods and the resources needed to protect and monitor them.

The third amendment to the Excise Act will require that each individual cigarette that is to be sold in Canada be stamped to indicate that the federal taxes have been paid. This amendment will greatly assist enforcement agencies in identifying contraband cigarettes. In addition law-abiding citizens will be able to easily identify someone smoking contraband cigarettes. We will be able to know if anyone in the room or our neighbour has bought legal cigarettes.

The last two proposed amendments to Bill C-11 are to the Tobacco Sales to Young Persons Act. The first of the two amendments would prohibit the manufacture and the sale of so-called kiddie packs of tobacco products in Canada. These kiddie packs contain fewer than 20 cigarettes per package and are targeted specifically to the young people of Canada.

The second of the two amendments will prohibit the importation of tobacco products into Canada by anyone under the age of 18. This will provide Canada Customs with the authority to prevent young persons from importing tobacco that they could otherwise not legally purchase in Canada.

As the hon. minister has outlined for everyone today, action has to be taken to address the smuggling problem in this country. Bill C-11 specifically supports two key elements of the government's anti-smuggling initiative, enforcement and the health and safety of young Canadians.

The proposed amendments to the Excise Act and Customs Act will provide additional tools to police forces to help them crack down on all facets of the smuggling trade. The proposed amendments to the Tobacco Sales to Young Persons Act will support the protection of the health and safety of young Canadians.

This bill is an essential element of the government's overall strategy. We certainly do not pretend that these proposed amendments offer a complete solution to the problem. Rather, they support the broader anti-smuggling initiatives that this government has undertaken. Without these amendments the government's efforts to combat smuggling would be significantly undermined.

The time to take action is now. As we can see from the debate today, this is a very controversial topic. But as we can also see from the debate today, there are many members on the opposite side of the House who would agree with this government's action. This action by the government reflects the responsibility of all parties that have interest in this debate.

This government can no longer afford to allow the momentum of this phenomenon to continue to accelerate. It is for this reason that we ask all members to support the passage of Bill C-11.

[Excise Act, February 22nd, 1994]

Mr. Speaker, I just wonder if the hon. member has had the opportunity to read the entire action plan which dealt with the very issue of enforcement. We have increased customs officers by 25 per cent to deal with the idea and with the problems of enforcement.

I also inform the hon. member that the problem is not unique to one part of Canada.

The busiest border crossing last year was the Windsor-Detroit bridge which is just outside my riding. This problem is not unique to Quebec. It is not unique to one particular part. It is happening all across the country. We have a total plan to deal with it, a plan that deals with enforcement, a plan that deals with health. I hope the hon. member has a chance to read clause 3 of the bill particularly.

[Excise Act, February 22nd, 1994]

Mr. Speaker, I inform the hon. member with regard to a few of her earlier comments that she was incorrect in saying the government was not concerned with law enforcement. We are very concerned with law enforcement. That is one of the main reasons behind the bill.

The RCMP commissioner has told the government that we needed to take action and that is what this plan is. It is action so that we can have law enforcement in the country.

I remind the hon. member that this problem started long ago. When we came upon the scene a short 100 days ago, this government was faced with a momentous problem. It was not a small problem and it was not something that just started. It is something that has been going on for years. We are taking action. We are addressing the problem.

Second, I also remind the hon. member that we are concerned with the deficit and that is why we are taking action. We are losing over a billion dollars because of smuggled cigarettes. There are 75 million cartons being smuggled back into Canada. That is a serious problem that needs to be addressed and that is what the government is doing.

Does the hon. member not believe that spending an additional $185 million in health is not a good idea, is not the idea behind education or is not an idea to promote the awareness of the problems with smoking? Is that not a concrete answer to some of the problems raised by the health groups? This government looked at the whole package.

We looked at the effect of lowering the tax. We looked at the concern from the health groups. We put together a whole package. I would like the hon. member's comments.

[The Environment, February 17th, 1994]

Mr. Speaker, yesterday I met with the Minister of the Environment to alert her that

Fermi II, a U.S. nuclear power plant, planned to pump 1.5 million U.S. gallons of radioactive water into Lake Erie.

Plant officials and the U.S. government nuclear regulatory commission insist that this water is only slightly radioactive and well below legal limits.

I want to assure the residents of Essex-Windsor that the Minister of the Environment instructed her Ontario regional officials to conduct on-site field testing at Fermi II before the water was released to ensure that the levels of radiation are within legal standards and no other contaminants are present. Those tests are currently under way.

I am very concerned and so are the citizens of Essex-Windsor. Lake Erie is a shared body of water and the Canadian public has a right to be informed of potential threats to our drinking water. The levels of radiation may very well be within legal and even within Canadian standards, but Canada should be given ample public warning of such releases.

[House Of Commons Standing Orders, February 7th, 1994]

Mr. Speaker, I am to respond to the question of February 1 and that is what I will do.

Research indicates that at least 38,000 die each year as a result of tobacco related diseases. These deaths reflect smoking behaviours of more than two decades ago when the risks of smoking were less understood.

Even now more than 100,000 children and teens begin smoking every year in Canada.

Enough is known about the hazards of smoking that we can predict with gruesome confidence that one in four of these young new smokers will die prematurely from conditions like emphysema, heart disease and lung cancer.

Tobacco deaths are preventable and even one preventable death let alone thousands constitutes a tragedy. This is unacceptable.

Canada's national strategy to reduce tobacco use has gone a long way toward reinforcing the idea that smoking is no longer cool for youth and a lot less socially acceptable among adults than once was the case in this country.

This strategy has proceeded on a broad front with federal legislation restricting cigarette advertising and requiring strong visible health warnings on the product package, with health promotion campaigns aimed at encouraging young people to think twice about starting to smoke and to break free from social pressures to start smoking, and with federal legislation to raise the age at which people may legally be sold tobacco products to 18.

Tobacco smuggling is a serious threat to Canada's strategy against smoking because it is making cigarettes available to young people through illicit channels.

Unless we put a stop to smuggling we will find it increasingly difficult to keep tobacco out of the hands of young teens, which is the very purpose of the sales of tobacco to young people act. With this law we expect Canada's retail sector to take a responsible approach to ensuring tobacco is not available for sale to young people but to make it work to control tobacco access by young persons.

The tobacco market has got to move above ground where we can see it, where we can manage it, and where our programming can have its full effect.

Canada leads the world in taking a comprehensive strategic approach to reducing the toll of sickness and premature death caused by tobacco smoking. We have no intention of forfeiting this lead. The government is committed to implementing innovative programs and legislation to maintain the momentum of our national strategy to continue to reduce addictions to tobacco in Canada and to continue to prevent tobacco related deaths.

I want to inform the House that it is the government that sets tax policy in this country.

[Department Of National Revenue Act, February 4th, 1994]

Mr. Speaker, I would like to inform the hon. member that this bill does not address that issue but we will certainly take that under advisement and look into it.

(Motion agreed to, bill read the second time and referred to a committee.)

[Department Of National Revenue Act, February 4th, 1994]

Mr. Speaker, I would like to recap my earlier comments in support of Bill C-2, an act to amend the Department of National Revenue Act and to amend certain other acts in consequence thereof.

This bill would enable the Minister of National Revenue to consolidate two distinct departments under his responsibility since 1926 into one and thus eliminate unnecessary duplication and overlap within government.

It is an act that will bring distinct benefits to taxpayers and will enhance the ability of the Department of National Revenue to provide more efficient and effective services and programs.

I want to assure the House that this act will not compromise the integrity of programs in the area of responsible enforcement, of Canadian sovereignty and laws at the border, revenue generation, or trade administration, the lines of business that make the department an essential national institution.

I would also like to inform the House that Revenue Canada customs is highly regarded and well respected as one of the finest services of its kind in the world. This respect has been well earned and Canadians can rest assured that this will continue to be the case within a unified Revenue Canada. Not only due to its enforcement role but also because of programs such as International Project Return, a program to find missing children, Revenue Canada customs has become internationally recognized.

I would like to assure the member who raised this concern earlier and I would like to assure all of those who work for the safe return of missing children to families that the minister has assured me that Revenue Canada customs remains committed to International Project Return.

As well, Revenue Canada is firmly committed to maintaining and strengthening all its customs functions.

As national revenue minister, the hon. minister has said that the role of customs is essential to the social and economic well being of the country.

As I mentioned earlier, Revenue Canada customs will continue to have a clear mandate to enforce Canadian law and sovereignty at the border by preventing the entry of criminals, illegal immigrants, pornographic material, prohibited goods and weapons. As well, a mandate to protect Canadian business and industry by administering international trade agreements. Further, a mandate to protect local economies by collecting taxes at the border and also a mandate to provide service to other government departments at border facilities.

I would like to assure the House that this mandate will be carried out by competent experienced managers and employees.

As well, the customs and excise union, some organizations and border communities have expressed concerns about the integration of customs within the Department of National Revenue. I again want to inform this House that their concerns are unwarranted and unsupported.

Enforcement activities at Canada's border crossings are important to this government and to Revenue Canada and will remain so. Administrative consolidation will enhance and strengthen customs programs by allowing greater accessibility

to a broader range of information, increased use of technology and redeployment of additional resources to better attack the underground economy and combat smuggling.

So far, from savings realized through the administrative consolidation of headquarters, almost $13 million has been reinvested in key customs initiatives such as enhanced technology at airports and border points to speed up the processing of travellers and goods and to facilitate the detention of contraband and high risk travellers.

In 1993 Revenue Canada customs seized a record amount of drugs worth more than $1.4 billion. I am sure that customs officers will continue their outstanding work with law enforcement agencies to keep drugs off our streets.

Enforcement does not begin only at Canada's border. That is why Revenue Canada is negotiating agreements with carriers in other countries to work together in the international fight against drugs.

The government is very concerned about the level of smuggling we are currently experiencing. Such illegal activity cannot continue to the overall detriment of society and this government is considering its strategies in this regard. We believe that a strengthened enforcement role, both at the border and in the boardroom, will help the government to tackle the issues of smuggling and non-compliance.

I want to inform the House that by combining its resources, Revenue Canada will be able to get tough with the small minority who cheat the system. Administrative consolidation will give Revenue Canada the resources, expertise and information to conduct joint GST and income tax audits of individuals and businesses to identify non-registrants and those not reporting income, to conduct special investigations and to improve its ability to identify non-compliance with all of its acts and regulations.

It is up to this government to ensure that the law-abiding majority does not suffer because of those who deliberately cheat the system either by smuggling or not paying their taxes. All Canadians should pay their fair share.

As the Minister of National Revenue has said, such illegal activities constitute a significant threat to Canadian society and to our economy. This government is determined to maintain and enhance its ability to respond to these challenges. As well, this legislation will permit the minister to organize the delivery of programs and services. With improved accessibility, Canadians will no longer have to run from one Revenue Canada office to the next to get general information, make payments or pick up publications and forms. All of this can be done at one time at Revenue Canada's expanded network of offices across Canada.

As well, there will be a consolidated collections program. Clients will eventually be able to deal with one revenue official for all their accounts. The result will be efficient service that is more responsive to individual business circumstances and combined audits.

Revenue Canada recognizes that businesses usually have to deal with customs, excise, GST and income tax auditors separately. This is cumbersome and inconvenient, particularly for small businesses. Therefore, Revenue Canada is developing a consolidated approach to audit. This will mean better service, reduced costs and less duplication. It will be less intrusive to businesses because whenever possible combined audits will be done at one time.

Finally, we will have a single business registration number. Revenue Canada is taking the lead for the federal government by developing a single business registration number; one client, one account number. This is obviously a much simpler system for businesses that sometimes have to use several different account numbers when dealing with different parts of the department.

The department plans to pilot this initiative in eight cities in May of this year. There will be a single remittance for customs, GST and income tax. The department is now examining a plan which will allow it to accept single payments. This initiative will simplify and streamline accounting for hundreds and thousands of Canadian businesses and an offset system.

Eventually businesses will be able to offset a liability in one area such as taxation with overpayments or refunds from another area such as GST. This will make it possible for the department and businesses to reconcile their accounts with one single cheque. This will also simplify account processing for businesses, improve their cash flow and reduce the cost of doing business with the government.

We will also introduce a simplified combined annual business return. Beginning in the 1993 taxation year, small businesses with gross sales under $500,000 will be able to file a combined annual return for both income tax and GST. They will be able to pay both taxes with one cheque and even use a credit from one tax account to pay an outstanding balance from another. This will bring existing GST legislation in line with the fairness policy which was recently developed for income tax filers. This policy gives Revenue Canada officials flexibility when dealing with persons who have not met their obligations due to circumstances beyond their control.

Revenue Canada is also piloting a new way of doing business with its commercial clients starting with pilots in the automotive and aerospace sectors.

The new business relationship changes the way customs interacts with its commercial clients by re-engineering processes and requirements and reducing red tape and paperwork.

This new approach will generate significant savings for clients. The big three North American automakers and the aerospace industry together estimate a $180 million saving over the next decade, something quite substantial.

This program has been well received by a cross-section of Canadian businesses. Revenue Canada is committed to building a first class revenue administration capable of adapting to new economic and fiscal policies and one in which service is a priority.

I tell the House today that Revenue Canada is an essential instrument and must be capable of meeting these challenges head on as an organization having service, voluntary compliance, and enforcement as priorities. It would make no sense to weaken our response capacity.

The proposed bill will not undermine the effectiveness of Revenue Canada customs or make it play second fiddle to revenue generation. Administrative consolidation will instead strengthen the government's capacity in this important field. It is for these reasons that I recommend the support of Bill C-2.

[Department Of National Revenue Act, February 4th, 1994]

Mr. Speaker, I rise today to speak in support of Bill C-2, an act to amend the Department of National Revenue Act and to amend certain other acts in consequence thereof.

This bill would enable the Minister of National Revenue to consolidate two distinct departments under his responsibility since 1926 into one and thus eliminate unnecessary duplication and overlap within government.

It will also bring distinct benefits to taxpayers and it will enhance the Department of National Revenue's ability to provide more efficient and effective services and programs. It will not compromise the integrity of programs in the area of responsible enforcement, Canadian sovereignty and laws at the border, revenue generation or trade administration, the lines of business that make the department an essential national institution.

My remarks will focus today on how the important enforcement and compliance roles of Revenue Canada will be recognized and reinforced, not undermined, through the administrative consolidation which Bill C-2 will permit.

I will also speak specifically about customs activities, non- compliance measures which consolidation will strengthen.

Revenue Canada customs is highly regarded and highly respected as one of the finest services of its kind in the world. This respect has been well earned and Canadians can rest assured that this will continue to be the case within a unified Revenue Canada. Not only due to its enforcement role but also because of programs such as International Project Return, a program to find missing children, Revenue Canada customs has become internationally recognized.

To all of those who work for the safe return of missing children to their families, the minister has assured me that Revenue Canada customs remains committed to International Project Return. Revenue Canada is firmly committed to maintaining and strenghthening all its customs functions.

As national revenue minister, the hon. minister has said the role of customs is essential to the social and economic well- being of the country. Canadians have a right to safe communities and safe environments and protection from unfair economic competition.

For that reason the government is committed to a strong and visible customs program and presence at the border.

Revenue Canada customs will continue also to have a clear mandate to enforce Canadian law and sovereignty at the border by preventing the entry of criminals, illegal immigrants, pornographic material, prohibited goods and weapons. As well, a mandate to protect Canadian business and industry by administering international trade agreements. Further, a mandate to protect local economies by collecting taxes at the border as well as to provide service to other government departments at border facilities. This mandate will be carried out by competent, experienced managers and employees.

As well the customs and excise unions, some organizations and border communities have expressed concerns about the integration of customs within the Department of National Revenue. Their concerns are unwarranted and unsupported. Enforcement activities at Canada's border crossings are important to this government and to Revenue Canada and will remain so.

In fact administrative consolidation will enhance and strengthen customs programs by allowing first, greater accessibility to a broader range of information, second, increased use of technology, and third, a redeployment of additional resources to better attack the underground economy and to combat smuggling.

So far, from savings realized through the administrative consolidation of headquarters, almost $13 million has been reinvested in key customs initiatives such as enhanced technology at airports and border points to speed up the processing of travellers and goods and to facilitate the detection of contraband-

[Department Of National Revenue Act, February 4th, 1994]

I have seven minutes but I will not be able to finish.

[Department Of National Revenue Act, February 4th, 1994]

Mr. Speaker, I will not have enough time to finish my comments before the start of Question Period. Should I begin anyway?