John Murphy

[Finance, December 11th, 1996]

Mr. Speaker, I am pleased to have the opportunity to speak today on the prebudget debate, following my friend from Newfoundland who did an eloquent job. He did not need to put anybody down in doing it.

I would like to congratulate the members of the finance committee for their comprehensive report and many excellent recommendations. The committee has tabled a thoughtful report and has offered many positive and tangible actions our government can take to help improve the economy and help reaffirm our commitment to the principles of social equity and fairness.

When we look at the financial record of our government the numbers speak for themselves. Let us look at the facts. When our government took office the deficit was $42 billion, 6 per cent of our gross domestic product. In three years we have reduced that number to a figure below 3 per cent of GDP. Recently the Minister of Finance confirmed that this figure will be down to 1 per cent of GDP, or $9 billion, by the year 1998-99. This is significant because it will mean that our government will no longer have to borrow from the markets to fund the deficit. This, combined with low interest rates and a strong economic growth rate, will allow us as Canadians to have greater sovereignty over our economic affairs. As a result of our tough fiscal actions we now have broader options to set our own economic agenda rather than being at the mercy of international financial institutions.

In the past, it would seem that the deficit targets were never met. Governments would table budgets offering rosy financial outlooks and would then proceed to miss their targets year after year.

Our government, however, has reversed that trend. We are restoring Canada's fiscal credibility. Our government has shown that when we make a commitment, we keep it.

There are two specific issues raised in the report that I would like to focus on, child poverty and the need for active job creation measures.

In a country as prosperous as ours, it is unacceptable that 20 per cent of our children still live in poverty. I sit as a member of the Standing Committee on Health and in recent months we have been conducting a study on the health of Canada's children. As part of our efforts we have heard from health groups and child advocacy organizations from across the country. These groups have raised many serious concerns and put forth many excellent recommendations.

I am pleased, and I think many children's organizations will be pleased to see that the committee has recommended an increase in the working income supplement in order to target the children of working poor.

The chair of the finance committee stated in his remarks in the House Monday that families among the working poor often have benefits of $3,000 a year less than those on social welfare. In many instances this creates a disincentive to work.

I would strongly urge the Minister of Finance to accept this recommendation as a means of working to alleviate child poverty. But I do not believe that we can stop there.

I want to take this further and recommend that our government target increased assistance toward federal programs that deal directly with the issue of child health and child poverty. One such program I am sure members are familiar with and which I believe is worthy of increased investment is the community action program for children, CAPC.

I noticed in the finance report that the future of CAPC was addressed during public consultations. I agree with the recommendation that government funding intentions for CAPC be made clear and that the support for CAPC continue.

In communities across Canada 450 community based groups are using CAPC dollars to provide families with parenting education and support and children with opportunities for early learning experiences. I have seen firsthand this program and how it strengthens families and helps children achieve their goals.

However, in April 1997 the CAPC program is scheduled to face a 51.9 per cent reduction in federal funding. This could in turn threaten the very viability of this program at the community level.

Recently I hosted a meeting where members of the Nova Scotia Association of Family Resource Projects briefed members of Parliament about the important role CAPC programs play in their communities. At this meeting members of the organization played a cassette recording of comments by parents who have benefited from the program. There was no question in our minds that this cassette left members with a firm understanding of how a government can positively affect the day to day lives of people.

I would like to read for my hon. colleagues one of the comments that I was particularly touched by. This message was left by a young mother of two. She said: "I was trying to do the best I could

with the resources I had, but they were limited. I felt helpless not knowing where to find the skills, but I knew they were out there".

Once she started attending the family resource centre, a CAPC funded program, she said: "I have learned so many new skills that I have been applying not only with our children but with other relationships in my life. Our family is much happier since I have been coming to the centre. I feel that the programming offered at the centre for our children is doing all that is necessary for our children to be prepared for school".

We are making a difference through programs such as CAPC. I would urge our government to commit targeted resources toward this program and other similar proactive programs aimed at assisting poor children and families. By focusing on the elimination of child poverty now, we are making a direct investment in our own future as a nation.

I would now like to turn for a moment to the issue of job creation. In my riding of Annapolis Valley-Hants, job creation continues to be one of the most important concerns I am hearing. Even the finance committee's report states that Canada is faced with a situation where employment growth remains strong but unemployment continues to persist at unacceptably high rates.

It is true that during the last three years jobs have been created. At last report there were some 670,000 new jobs created in Canada. While this is no small number, unemployment numbers across the country clearly show us that more needs to be done. I believe in the position put forward by our government that our primary responsibility is to create the right economic climate for job growth.

When I say that our government must play a greater role in job creation, I am not referring to costly short term, make work projects that have little long term benefit. Instead our government must continue to focus on creating new partnerships with the private sector, research and educational institutions and other levels of government. We need to be an active partner in those areas where we can help create new jobs.

A perfect example of this type of partnership is the national infrastructure program. The first tripartite agreement was a tremendous success. In my riding of Annapolis Valley-Hants a total of $22.3 million was invested in order to address local priorities. This program showed that when governments are working to achieve common goals, our communities reap the benefits from this co-operative spirit.

I was pleased therefore to see that in the finance committee's report there is a recommendation calling for a new infrastructure program. I was also pleased that as a part of this program the committee has recommended that we refocus our infrastructure dollars toward research and development. This is a recommendation I fully support.

I would like to also add that as well as partnering with universities and health institutions, we should focus greater attention on R and D in the agriculture and natural resources sectors. These sectors are extremely important to rural communities like those in my riding of Annapolis Valley-Hants.

As well focus must be given to our transportation and communication infrastructures. This is particularly true in Atlantic Canada. By focusing more attention to these areas we can help create sustainable jobs in our rural communities.

There is a lot more I would like to say on this issue but I see that my time is running short. I will close by once again commending the work of the finance committee and the many excellent recommendations it has put forward. This document offers a thoughtful analysis of the many serious issues still facing our government and all Canadians.

[Dr. Charles Huggins, December 6th, 1996]

Mr. Speaker, I rise today to pay tribute to an exceptional doctor and an outstanding Canadian, Dr. Charles Huggins.

During his career Dr. Huggins was a leader in the field of cancer research. His accomplishments provided a stimulus for future developments in chemotherapy. It was 30 years ago, in 1966, that Dr. Huggins received the Nobel prize for his work in cancer research. Dr. Huggins developed the first non-radioactive, non-toxic chemical treatment for cancer. Prior to receiving this award, only one other surgeon had ever received the Nobel prize.

Dr. Huggins spent most of his working life in the United States but he is a native of Nova Scotia and a graduate of Acadia University in my riding of Annapolis Valley-Hants. As well, he is past chancellor of that university.

I ask all members of the House to join me in recognizing the efforts this exceptional Canadian.

[Excise Tax Act, December 3rd, 1996]

Mr. Speaker, the technology for the changeover is already in place. There will be some changes but the technology is in place and it is not the same as introducing a whole new system.

The member talks about the prices of houses going up. I just indicated in my speech that housing prices will go down because the input costs will go back into the industry and they will bring the prices down.

The member mentioned that jobs are being lost. One of the major features of this tax is that over the long term, over the next few years, jobs will be created. There will be all kinds of input taxes being returned to the different companies in Atlantic Canada and in Nova Scotia in particular. They will have more money to work with. Consequently, they will be able to put that money back into improving and expanding their businesses and obviously creating jobs.

About 73 per cent of Nova Scotians who were surveyed prior to this system coming into place wanted a system which provided one price which included the tax in it. Businesses asked for it. That is why we made these agreements with the Atlantic provinces, with the exception of P.E.I. We wanted to create a better situation for the consumers, namely that they would be able to go to the cash register with a $15.95 price tag and pay $15.95.

I am sorry that the member opposite has been misled. Unfortunately, his comments the way he put them are incorrect.

[Excise Tax Act, December 3rd, 1996]

Mr. Speaker, I will be sharing my time with the member for Halifax.

I am pleased to have the opportunity to speak on Bill C-70 respecting the harmonized sales tax agreement. I have listened closely to the debate today and some of the criticisms that members from parties opposite have raised.

Let me take a moment and read a number of quotes from national organizations regarding the need to move on to a harmonized tax system. In June 1994 the president of the Retail Council of Canada stated in an interview: "Harmonization is abundantly desirable. The provinces cannot ignore forever the pressures that are on us as a nation to get our House in order and getting the sales tax right is an important element of that".

In the same month the president of the Canadian Chamber of Commerce said: "They," meaning businesses "could create more jobs if the PST and the GST were integrated by doing more business more efficiently and more effectively".

Even the members of the third party, and we heard that from debate here, supported harmonization in the minority report on replacement of the GST. In that report they said: "It is simply unacceptable that Canada remains the only country in the world with 10 different sales tax regimes. We commend the government on its attempt to harmonize the tax with the provinces". That is exactly what the government is working toward.

As the House is aware, on October 23 three provinces, Nova Scotia, New Brunswick and Newfoundland and Labrador, signed a harmonization deal with the federal government, In doing so, these provinces have taken a bold step forward. It is a step that will help the three Atlantic provinces to become more competitive, more self-sufficient and more attractive for businesses.

In signing this deal, the province of Nova Scotia and its two partners are leading the way to what I believe will be an eventual agreement among the provinces and territories. Let us look at the facts. Over its lifetime the GST has taken an additional $3 billion out of the Atlantic region, a bigger increase in federal sales tax payments than in any other part of Canada. In signing this agreement these three provinces will receive adjustment assistance close to $1 billion over four years.

I have heard the criticisms from members opposite on this element of the deal. I would like to remind my colleagues, however, that this decision is consistent with Canada's long standing principle of providing adjustment assistance to provinces and individuals when they need help adjusting to major policy changes initiated by the federal government.

I want to emphasize quite clearly what the agreement will mean to Nova Scotia. In Nova Scotia the harmonized sales tax agreement will improve its economy and its competitive position vis-à-vis other provinces. The agreement will ensure that $100 million more will be left in the pockets of Nova Scotians. This extra money in the economy will mean a permanent increase in Nova Scotia's gross domestic product of .8 per cent. Over the next few years that will translate into approximately 3,000 new jobs.

A central component of the sales tax reform is that the new system must be both fair and simple to use. The HST meets both of these criteria. Consumers and business people will operate in a marketplace where the rules are clear and where there is less paperwork.

For consumers, all Nova Scotians will benefit from a tax rate that is almost four points lower than the current combined rate. The new system will mean lower prices on most goods, not only because the combined rate will be lower, but also because hidden provincial sales taxes will be eliminated.

As well, businesses in Nova Scotia will experience many competitive advantages under this new system. With full input tax credits, operating costs on everything from phone bills to computers will come down. Many other business expenses will also be lower, including hotel and meeting costs. This will provide an opportunity for local businesses to expand and to grow, and that is what this is all about. It also gives businesses an excellent reason to locate in my province of Nova Scotia.

For businesses the HST will mean they will only have to administer one tax instead of two; one collector, one auditor. Businesses have campaigned for a simpler administration system for many years. As of April 1 next year, we will be able to deliver.

I would like to turn for a moment to a number of specific sectors.

Let us look at the issue of tax rebates on books. During the summer months I heard from many businesses and individuals in my constituency of Annapolis Valley-Hants. They were calling for an exemption on the taxation of books. The message I heard was that the continued taxation on books was in effect an impediment to promoting and improving literacy in Canada. This is a view that I brought forward to the Minister of Finance in early August on numerous occasions. I was pleased therefore when the minister responded positively to these concerns.

Under the HST there will be 100 per cent GST rebate on all books purchased by public libraries, schools, universities, colleges, municipalities and qualifying charities and non-profit orga-

nizations. That clearly is the way to go. This rebate will support the important role played by these front line organizations in helping individuals acquire the tools they need to learn to read or to improve their reading ability.

During this time of limited resources the best way to ensure the biggest impact for every dollar spent is to target assistance which will have the most impact on literacy. This decision will have a positive impact in supporting literacy in Nova Scotia.

I also want to speak for a moment about how this agreement will positively affect the housing industry. After all, a strong component in any economy is a strong housing industry. While provincial sales tax does not apply directly to the sales or rental of residential property, a substantial amount of provincial retail tax is still embedded in housing prices. Consumers are paying for unrecoverable tax on materials such as lumber, paint and appliances. As well, contractors pay provincial sales tax on building equipment and other capital goods.

Under the HST, builders will be entitled to input tax credits on inputs used in the building of a home. That is important. In addition to that, in Nova Scotia under the HST there will be a housing rebate for all buyers of new homes to a maximum of $2,250. Coupled with decreased building material costs this will ensure that new homes cost the same or less once the new agreement is in place.

Let us turn to the tourism industry for a moment. In Nova Scotia, as I am sure everyone is well aware, tourism is a billion dollar a year industry. In my riding of Annapolis Valley-Hants, tourism is a growing area and one in which jobs can and will be created.

Under this agreement visitors from outside Canada will get their tax back on hotels, conventions, bed and breakfasts and on the gifts they take home to their families. Even visitors from other provinces will face a lower tax rate for meals and for accommodations. Clearly this agreement will make our tourism sector even more competitive and more successful.

As any government whether federal, provincial or municipal can say, tax reform is never an easy process. Any attempt to change and improve the tax system will inevitably lead to criticism and calls to leave things as they are. But I believe the agreement our government has reached with the three Atlantic provinces will improve the economy of Nova Scotia and will free up more money for Nova Scotian families and businesses.

This package will help create jobs and it will help the economy grow over the long term. For those provinces that have taken the lead and signed on to this agreement, they will become more competitive both nationally and globally.

[Search And Rescue, November 28th, 1996]

Mr. Speaker, in recent weeks we have all heard about the valiant efforts of search and rescue teams on the Labrador Sea.

I am proud to say that the crew members of the Hercules 311 which rescued a crew member aboard a Danish fishing vessel on November 12 were dispatched from CFB Greenwood 14th Wing in my riding of Annapolis Valley-Hants. Members of this crew braved frigid temperatures and blizzard conditions in order to perform their duties.

I also want to recognize the work of the crew members aboard the Canadian forces Griffon helicopter that crashed, and their rescuers who are also from CFB Greenwood 14th Wing, for their bravery in the face of tremendous adversity.

I ask all members of this House to join me in recognizing the outstanding efforts of all those Canadians involved in search and rescue operations. They provide a service for which we should all be thankful.

[Human Reproductive And Genetic Technologies Act, October 23rd, 1996]

Mr. Speaker, I rise today to speak on behalf of those who cannot speak for themselves: the children who were born and who will be born from the use of new reproductive and genetic technologies.

Most medical treatments involve only individuals who consent to bear the benefits and burdens of the treatment. Assisted reproduction techniques such as donor insemination and in vitro fertilization are different. There are the interests of another party to consider, those of the children who will be born through their use.

As a society we sympathize with those who are infertile and wish to help them reach their goals at having a child. But we must not forget that we have to consider more people than just those suffering from infertility.

The health and well-being of children must be of paramount importance in the decisions we make about new reproductive and genetic technologies. The value of children in our society is self-evident but it is important to state firmly and unequivocally that children are not a means to an end. They are of value not because of the great gifts they possess, not because of the way in which they fulfil their parents' dreams and not even because of the joy they bring to their parents. Children are of value merely because they exist, because they are.

This government does value children. It believes that the hallmark by which our society can be judged is the priority that is placed on the interests and well-being of children. The government has established a transparent and explicit framework for its policy on new reproductive and genetic technologies.

Concern for children's interests is the vital aspect of that framework. The government also approaches the issue of children and new reproductive technologies from the perspective of a need to protect those who are vulnerable to adverse consequences of these technologies. And who indeed is more vulnerable in our society than a child?

New reproductive and genetic technologies affect children in different ways. Some practices and procedures have consequences so adverse and so easily apparent that prohibition is the only possible response. The consequences of other uses of technology, adverse or otherwise, are less obvious, or they are controllable through policy regulation. These include implications of the technologies for children's physical health, both immediately and in the long term, and the implications for children's emotional well-being. In cases where donated sperm or eggs are involved, new reproductive and genetic technologies also raise serious issues about the legal status of children.

The government by putting forward this legislation is proposing that some practices and procedures are so important for various reasons that there is no alternative than to prohibit them and to set criminal penalties for their use. Practices that turn children into commodities to be bought and sold are among them.

That is why for instance this legislation makes it a criminal offence to buy or to sell human sperm or eggs. Sperm and eggs are the building blocks of human life. To make them into commodities subject to the conditions of the market is to commodify children and to turn them into products. This is ultimately dehumanizing. It will affect in the long term the way we as a society value children and how we value human life.

Permitting payment for sperm and eggs also increases the possibility of health problems for the children who might be born as a result of these donations. Studies have shown that when a donation is made for payment, donors have less reason to be honest about the state of their health and about their genetic family history.

One study found much higher instances of HIV-positive donors among those who were paid than among those who donated on a purely voluntary basis. Men or women in financial need may be less likely to consider the welfare of others in responding to this financial incentive.

Commercial surrogacy arrangements go even further along this road to the commodification of children. Instead of sperm or eggs changing hands for money, it is a live baby. Those involved in the practice will assert that it is not the baby that is being sold but rather the reproductive services of a woman. Commercial surrogacy is simply the practice of paying a woman to give up her baby. We do not permit human beings to be bought and sold in any other context and it is an insult to children to allow this to continue.

I have heard from a significant number of constituents in my riding of Annapolis Valley-Hants regarding the issue of reproductive technology. Many constituents have written to my office or spoken with me personally on this matter. They have consistently expressed opposition to the commercial use of reproductive technologies. Our government has listened to these concerns and through this legislation it is responding.

This government is determined to remove the profit motive from pregnancy and birth. It has accordingly prohibited anyone from paying or offering to pay anyone to surrender a child or from acting as an intermediary in such an arrangement.

The prohibition on cloning is also justifiable in terms of its impact on the health of children. We simply do not know the health implications of creating large numbers of genetically identical people, either for individual children or for the population as a whole. The use of fetal eggs to create a human embryo could be harmful if they are from a miscarried fetus, since genetic disorders are one of the most frequent reasons for early miscarriage.

Practices such as commercial surrogacy arrangements, buying and selling of sperm or eggs, cloning, or using reproductive material from fetuses or dead people have no place in a society that claims to value children. The physical health of children can be severely affected in the short term by the use of new reproductive and genetic technologies for the simple reason that their use increases the likelihood of multiple births.

For example, 30 per cent of deliveries from in vitro fertilization are multiple: twins, triplets or even quadruplets. These babies are at a high risk of being born prematurely and of having a low birth weight. This can mean problems ranging from cerebral palsy and poor eyesight to short attention span and poor learning skills as these children grow up. In fact, Canadian and American studies have found that 20 to 25 per cent of low birth weight babies suffer from a form of serious disability and will continue to need attention and care in varying degrees for much of their lives.

Other health effects of new reproductive technologies just simply are not known right now. They will not become apparent until enough children are tracked through the various developmental stages until they reach adulthood. This is why the advent of new technologies has to be treated with such caution.

Children are our country's most valuable asset. Our recognition of their value is found in Canada's signature on the United Nations declaration on the rights of children. They are so vulnerable to the decisions made by adults. Concern for children's health and well-being requires that their interests be a priority in making decisions about new reproductive and genetic technologies. The legislation before the House today has taken that perspective.

The government has prohibited activities that, by commercializing reproduction and reproductive materials, make children into commodities, products for sale on the market. It has prohibited activities whose impact on the future health of children is harmful. It has in other measures proposed to set in place mechanisms to ensure that all new reproductive and genetic technologies that are offered in Canada are provided with the interests and needs of children paramount so that children are treated with the care and respect that they deserve.

[Petitions, October 23rd, 1996]

Madam Speaker, I am even more humbled because I have just 50 Canadians, but they are 50 very important Canadians.

These petitioners pray that the Parliament of Canada declare and confirm that Canada is indivisible and that the boundaries of Canada can be modified only by a free vote of all Canadian citizens as guaranteed by the Canadian Charter of Rights and Freedoms or through the amending formula as stipulated in the Constitution.

[Mental Illness Awareness Week, October 22nd, 1996]

Mr. Speaker, last week from October 13 to 19, Canadians marked National Mental Illness Awareness Week.

One out of five Canadians or six million people will suffer from a mental illness at some point in his or her life. For example, schizophrenia alone affects one in every 100 Canadians.

The cost of mental illness to society is high in terms of impact on health care requirements, loss of productivity and on the individuals it affects.

This year's theme Mental Illness, Teamwork in Service Delivery highlights the role that all of us can play in destigmatizing mental illness. Through public education and awareness we can work to achieve this goal.

I would ask that all my colleagues work to promote mental illness awareness in their constituencies.

[Bankruptcy And Insolvency Act, October 21st, 1996]

Mr. Speaker, I was a little late for the vote but I would have been voting with the government.

[Call To Remembrance Program, October 9th, 1996]

Mr. Speaker, I rise to bring to the attention of the House a new quiz program being organized by the Royal Canadian Legion.

The Call to Remembrance Program is a nationwide project aimed at helping to ensure that Canadians, particularly young

people, understand the value and the sacrifices made on their behalf during the wars of this century.

I am proud to say that this concept originated with the members of the Hants Branch 009 in the town of Windsor in my riding of Annapolis Valley-Hants.

Commencing in 1997 the Call to Remembrance quiz competition will kick off in communities across Canada. Call to Remembrance will ensure that future generations will know of the extreme sacrifices of Canadians and our national effort during the wars of this century.