House of Commons photoWon her last election, in 2019, with 60% of the vote.
Hiv-Aids December 1st, 2004
Mr. Speaker, my question is for the Minister of Health.
Globally there are as many as 42 million people infected with HIV-AIDS. Here in Canada the number of new infections has not decreased since 1996.
Can the Minister of Health tell the House what his department is doing to respond to the HIV-AIDS epidemic?
Federal-Provincial Fiscal Arrangements Act November 29th, 2004
Madam Speaker, I am here to talk about the new fiscal framework for equalization.
To ensure that all Canadians received the same level of government services in every province, the federal government introduced a system of transfers called equalization in 1957. Equalization was introduced because not all provinces enjoy the same level of wealth or tax base.
The purpose of the program is to prevent a horizontal imbalance among the provinces and to make sure that a Canadian in one end of the country has access to the same level of services as any other regardless of where he or she lives.
Equalization is highly complex. The discussions that have been going on indicate that people really do not understand the formula. Equalization is formula driven. It ensures that any member of the Canadian Confederation is entitled to a transfer from the federal government if its ability to generate revenues using its own taxation power falls below a national standard. Essentially, provincial equalization entitlements are determined by the strength of a province's tax base in comparison to other provinces.
While the concept of equalization is relatively simple, the formula has grown increasingly complex as the program has evolved in size and scope. For example, in 1957 the equalization formula took into account three sources of provincial revenues: 10% of personal income tax; 9% of corporate income tax; and 50% of provincial duties. Provinces were then equalized to the average of the two wealthiest jurisdictions at that time, Ontario and British Columbia.
At present there are now 33 sources of provincial revenue that are used in calculating equalization. All provinces, with the exception of Ontario and Alberta, are currently entitled to equalization.
Equalization is formula driven and it is being reviewed every five years. However, over the 47 year history of equalization, there have been a number of ad hoc changes that have had to take place in response to changing market conditions.
For example, the energy crisis in the 1970s created a situation where Alberta's soaring oil and gas revenues completely distorted the program. Although only 50% of the oil and gas revenues were taken into account at that time, it was enough to push the threshold so high that all other provinces, including Ontario, qualified for transfers.
In response, Alberta as the wealthiest province, and Atlantic Canada were excluded from the equalization formula, leaving us with the five province standard that we have today.
In November 2001 the Senate Standing Committee on National Finance concluded a series of public hearings as part of its study on Canada's program of fiscal equalization. The goal of the committee was to assess the effectiveness of the program and to recommend improvements to ensure that equalization would continue to meet its constitutional mandate objective, which is to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public service at reasonably comparable levels of taxation.
The constitutional commitment reflects the importance to Canadians of evening out horizontal imbalances across the country. In the Canadian context, horizontal imbalance refers to the fact that some provinces are wealthier than others and their provincial governments thus can generate more revenues at comparatively lower levels of taxation. If left unchecked, these imbalances could result in a wide gap in the quality or level of provincial government services across the country.
How is equalization calculated? Determining a province's equalization entitlement in any given year is a long process subject to numerous revisions. It is perhaps easiest to think of the calculation as a four step process.
The first step is establishing a common set of tax rates for all provinces. This is necessary in order to create an appropriate frame of reference against which to compare each province's revenue generating ability. Since provinces calculate their taxes in different ways at different intensities and do not share access to all revenue sources, no single province's tax system can be considered representative of the remaining nine.
The second step is to apply a representative tax rate, hypothetically, to each province's tax base, to see how much provincial government revenue it would generate per person.
The third step is to determine whether or not a province is entitled to receive equalization for that income category.
The fourth and final step is to repeat the process for each of the 32 remaining revenue sources.
All positive and negative entitlements are then summed up. If a province's overall entitlement is positive, that is, if its total revenue generating capacity falls below the five-province standard of the have provinces, then that province will receive equalization payments equal to the difference between the two. If a province's ability to raise revenue exceeds the FPS, however, it receives no equalization payments.
Now as I mentioned, this is due for review every four years, so on October 26 the Prime Minister met with the provincial premiers and territorial leaders to discuss the changes. But before I go there, I would like to talk about what the equalization payments mean for provinces like Alberta and Ontario.
Equalization is the Government of Canada's most important program for reducing these fiscal disparities. Since the program's inception in 1957 until 1964-65, Alberta did qualify for equalization payments totalling about $92 million. Alberta receives significant federal support through health and social transfers, which are allocated on a per capita basis. In 2004-05, Alberta will receive $4.2 billion through the Canada health transfer, the Canada social transfer and the health reform transfer.
In support of the 10 year action plan to strengthen health care, signed by the first ministers on September 16, the Government of Canada is committing an additional $41.3 billion for health. Alberta will receive some $3.7 billion in additional health transfer funding over the next 10 years, plus its share of the wait times reduction fund.
Ontario receives significant federal support through health and social transfers, which are also allocated on a per capita basis. In 2004-05, Ontario will receive $16.4 billion through the Canada health transfer, the Canada social transfer and the health reform transfer.
In addition, in support of the 10 year action plan to strengthen health care, signed by the first ministers on September 16, the Government of Canada is committing an additional $41.3 billion for health. Ontario will receive some $14.1 billion in additional health transfer funding over the next 10 years, plus its share of the wait times reduction fund.
Now, coming back to some issues that members opposite have raised, they have raised issues around the federal government and its surpluses and have said that they would like the surplus to be used for other means, but in my riding of Don Valley East my constituents have implored us to be prudent and not to go back to the deficit spending era of pre-1993.
Members opposite have talked about a fiscal imbalance, but it does not exist in Canada for the following reason. The Government of Canada and the provincial governments have access to all major sources of tax revenues: personal income tax, corporate income tax, sales tax and payroll taxes. In addition, the provinces have exclusive access to some rapidly growing tax bases, such as natural resources in their jurisdictions and gaming.
International companies' comparisons show that Canada is one of the most decentralized federations in the world. The provinces have complete autonomy in setting their tax policies to address spending pressures related to their responsibilities. In fact, total provincial revenues, that is, their own source revenue plus federal cash transfers, have substantially exceeded federal revenues for more than two decades and are expected to continue to do so.
The reality is that both orders of government face significant spending pressures and limited resources. In addition, the federal debt burden is large relative to that of the provinces, which limits federal investment in new programs. Despite these constraints, the Government of Canada recognizes the growing fiscal pressures on the provinces and is cooperating closely with them.
On September 16, the Prime Minister and all the premiers signed the 10 year plan. Furthermore, over the 10 years, the framework for equalization and territorial formula financing will provide $33 billion more to provinces and territories than the annual amount for 2004-05 estimated in the budget.
If we look at the overall picture, the provinces are getting $74.3 billion extra from the federal government. I believe that is very fair. I believe that the Prime Minister, in coming up with the framework for equalization and territorial formula financing with the premiers, met with them and discussed or put forward the federal government's strategy.
The key strategy, if we look at the changes taking place which the government has proposed for the equalization and TFF, is that it will provide predictable, stable and increased funding. The new framework will play an essential role in ensuring that all Canadians, no matter where they live, will have access to comparable public services.
The new framework for equalization will increase the support to provinces and territories over 10 years by $33 billion. This increased funding will assist Canada's less prosperous provinces and the three territories in meeting their commitment under the 10 year plan to strengthen health care as well as fund other important social and economic developments.
That we are moving ahead with these improvements underlines the spirit of cooperation shown by everyone involved. The new partnership will be essential to our success as we move forward together on other key policy issues outlined in the Speech from the Throne, such as child care, cities and communities, and the environment.
The highlights of the new framework are that over the next 10 years, and subject to review in 2009-10, the new framework will provide $33 billion more in equalization and territorial formula financing payments to provinces and territories. To achieve this rate of growth, the government will establish a legislative financial framework for equalization and TFF starting in 2005.
In 2005-06, funding levels will be set at $10.9 billion for equalization and $2 billion for TFF, the highest levels ever achieved by these programs. Both amounts will grow at 3.5% a year, starting in 2006-07. Equalization payments will increase from $8.9 billion to $12.5 billion over the first five years of the new framework, a 42% increase.
The Government of Canada will also launch a review by an independent panel of experts on how the legislated equalization and TFF levels should be allocated among provinces and territories in 2006-07 and after. Provinces and territories have been invited to appoint two members to the panel. The expert panel will report back by the end of 2005 in time to provide advice on how equalization and TFF should be apportioned among provinces and territories in 2006-07. The government is committed to having any changes in allocation for 2006-07 and future years in place by April 1, 2006.
The complete framework provides protection to every province and territory to ensure that entitlements for 2004-05 are no lower than the levels forecast in the 2004 budget. I hope that members opposite and members of the House will support the new framework.
Dystonia November 29th, 2004
Mr. Speaker, dystonia is a neurological movement disorder that causes muscles in the body to pull or spasm.
Although it is the third most common movement disorder after Parkinson's disease and tremor, very few Canadians are familiar with the condition despite the fact that nearly 300,000 people in North America suffer from dystonia.
Dystonia is often misdiagnosed as another ailment like arthritis or stress. To date there is no known cause or cure, but efforts are being made to change that.
The Dystonia Medical Research Foundation offers support to sufferers through patient advocacy, public awareness, professional education and fundraising for research.
I invite my colleagues to join with me and the many volunteers of the Dystonia Medical Research Foundation to help search for a cure for this debilitating disease.
Taxation November 4th, 2004
Mr. Speaker, in the last election the Prime Minister made a commitment to run the federal government smarter and more efficiently in cooperation with the provinces and territories. Could the Minister of National Revenue inform the House of any initiatives to cut down the duplication of services in the field of tax collection?
Privilege November 3rd, 2004
Mr. Speaker, I would suggest that the point to my question of privilege is, as a Canadian citizen who espouses Canadian values, I have a right to an opinion, and I would demand an apology from the Leader of the Opposition and the caucus members.
Privilege November 3rd, 2004
Mr. Speaker, today the leader of Her Majesty's opposition and some members of his caucus have sullied my reputation by alluding that I am anti-American. On October 30 the Ottawa Citizen printed a clarification on an error it made. I would like to read that in the House for the record:
One hopes that in a democracy such as Canada, every individual, elected representative or not, has a right to a personal view on various issues. Surely, those viewpoints do not always have to mirror those held by other individuals--or foreign governments, for that matter. Being branded anti-American because one's beliefs and values are different from say, the foreign policy of the United States or that nation's current leadership is ludicrous. My views on the Iraq war itself would probably not differ from those of the almost three-quarters of Canadians who believe Canada made the right decision not to take part in the invasion of Iraq in the first place. Would it then be correct to say that, to some, every one of those Canadians is anti-American? I do not think so. As a Muslim woman, the first ever elected to the House of Commons, I do indeed adhere to basic beliefs found in the Koran--tolerance, peace, diversity, pluralism and respect for life. That is why I joined former party leaders Stockwell Day and Alexa McDonough this week in criticizing--
Migratory Birds Convention Act, 1994 November 2nd, 2004
Mr. Speaker, I am pleased to address hon. members today on an important bill for the protection of the marine environment and marine wildlife, namely, the bill to amend the Migratory Birds Convention Act, 1994, and the Canadian Environmental Protection Act, 1999, or CEPA. The focus of my remarks will be on the amendments proposed for CEPA.
As hon. members may be aware, Canada has a long history in the development and implementation of federal laws to protect the marine environment. The number of birds dying is not acceptable and Canada needs to do more. The Canada Shipping Act has elements to promote the protection of the environment, such as provisions to control discharges at sea, but we need to do more. Hence, the amendment.
The federal Fisheries Act contains a general prohibition against the release of harmful substance into Canadian fishery waters. The Oceans Act of 1996 was the first marine related federal law to acknowledge a precautionary approach to the protection of Canada's marine environment. The Oceans Act also provides regulation-making authority to designate marine protected areas and to prohibit specific activities within those areas.
The Ocean Dumping Control Act, followed by the original Canadian Environmental Protection Act of 1988, implemented the 1972 London convention on the prevention of marine pollution.
Lastly, the Canadian Environmental Protection Act, 1999, replaced the CEPA of 1988 and implemented both the London convention and the 1996 protocol under that convention.
Over the past two or three years, CEPA, 1999, has faced the challenges of being unable to deal with the problems of discharges of oil by ships travelling in or passing through Canadian waters, discharges that bring about the death of migratory birds. As well, these releases occur in the exclusive economic zone, EEZ, and cannot be dealt with under current CEPA, 1999, because the enforcement provisions of the act do not stipulate that its provisions apply in the EEZ. Thus, the Government of Canada is finding it impossible to take action against and to rectify incidents of pollution in the exclusive economic zone.
Ships that dispose of oil at sea in a manner that is not incidental to the normal operation of a ship can escape Canada's jurisdiction. They do so by entering the exclusive economic zone or the high seas which are international waters. Given the current wording of CEPA, 1999, enforcement officers designated under the act have no authority to engage in hot pursuit of non-compliant ships.
The report entitled, “Seabirds and Atlantic Canada’s Ship-Source Oil Pollution”, published by the World Wildlife Fund in 2002, alleges that for Atlantic Canada alone there are approximately 2,500 spills or releases of oil and chemicals each year, and those are only the reported incidents. There may be more such harmful releases that are unreported and that Canada will have to track using aerial surveillance and other means. What purpose does aerial surveillance alone serve without the legislative and regulatory tools to take action in the face of environmental damages caused by spills and releases?
The amendment to CEPA, 1999, proposed in the bill would give the Government of Canada the authority to deal with polluting ships that discharge oil and other substances illegally. The bill would cut off their usual means of escape, namely to seek refuge in the exclusive economic zone or in international waters.
The amendments to the Canadian Environmental Protection Act, 1999, found in the bill are consistent with the philosophical underpinnings of the act. The amendments being proposed in the bill are consistent with the concept that the user of a disposal at sea permit must be held accountable for actions under the permit and that the polluter operating without a permit and outside the confines of CEPA, 1999, will face the consequences for violations of these provisions.
Let me now proceed to describe in more detail the amendments to CEPA found in Bill C-15.
The first amendment to CEPA focuses on the act's provisions governing the disposal of wastes and other matters at sea. Currently, under the act, there are provisions which allow disposal of specified substance by permits. It is proposed that these prohibitions be expanded to include ships to ensure that both persons and ships are prevented from disposal without a permit.
The amendments will enforce that polluting ships, as well as persons who command them, can be subject to various enforcement actions, namely detention orders, environmental protection compliance orders and/or prosecution for committing such violations.
The amendment to add ships as being subject to prohibition against disposal at sea of illegal substances is crucial to holding Canadian and foreign ships to account for their pollution.
Another amendment targets the prohibition against incineration of waste at sea. In addition, the bill also examines the definition of disposal in part 7 of CEPA, 1999, with regard to the normal operations of a ship.
To ensure clarity on what is normal operations, amendments to the regulation will provide authority to the governor in council to make regulations on the recommendation of the Minister of the Environment that would stipulate what is and what is not the normal operation of a ship. These are important clarifications because they are enabling provisions. It is not obligatory to use them, but they are available if regulations under the Canada Shipping Act do not address these points.
In keeping with the desire to hold both persons and ships accountable for their actions, the bill will also amend the section on recovery of costs incurred by the Minister of the Environment posed by ships or persons.
In December 2003 Canada ratified the United Nations Convention on the Law of the Sea. It is now incumbent on the government to implement the convention under Canadian law. This is important not only for disposals at sea provisions, but for regulations made under CEPA, 1999, that govern export and import of ozone depleting substances, chemicals and living products of biotechnology that are new to Canada and to the export and import of hazardous waste.
To ensure the proper use of these powers in relation to foreign ships, the amendments in the bill are very important, Canada requires the means to assert its sovereignty and authority in the exclusive economic zone. The bill allows the government, through CEPA, 1999, to protect Canada's marine environment, while adhering to its obligations under the United Nations Convention on the Law of the Sea.
I welcome the careful thought and attention of all members of the House in their examination of this bill and hope that they understand and support its merits.
Supply October 28th, 2004
Mr. Speaker, I think there was unparliamentary language used again. I do not think the government stole any money from the EI fund. One, it followed the instructions of the Auditor General. Two, there has been a $7 billion increase in equalization payments. Three, the government under the Prime Minister when he was minister of finance gave the largest tax cut in recent years. That is prudent management. It has not put a stranglehold on anyone.
The Quebec minister of finance wrote the report and he deemed it appropriate to make tax cuts totalling $1 billion. If a province does not have revenues to balance its expenses, I really do not know how the federal government can be blamed for it.
Supply October 28th, 2004
Mr. Speaker, I did not hear a question but I did hear a commentary on how badly the Conservative government mismanaged the finances of the country which led us into a $400 billion debt and a $42 billion deficit. It was the finance minister and the current Prime Minister who cleaned it up.
It is prudent for a person to balance their chequebook. Debits cannot overshadow credits. If that is the case, then we will not be able to provide any programs for Canadians.
Supply October 28th, 2004
Mr. Speaker, I am pleased to rise in the House today on behalf of my constituents of Don Valley East to speak to the motion proposed by the hon. members of the opposition. As proposed, the motion calls upon the federal government to recognize the existence of a so-called fiscal imbalance in Canada.
For the record, I fully reject the notion that a fiscal imbalance exists between the federal, provincial and territorial governments. It is a fact that Canada is one of the most decentralized federations in the world and while some provinces have a much greater income than others, we have a system of equalization payments to ensure an even and balanced distribution of wealth across the entire country. That is why the Prime Minister met this week with provincial and territorial counterparts to modernize the equalization and territorial financing formula.
The new equalization formula will increase support for the provinces and territories by $33 billion over the next 10 years. Only last month the Prime Minister and the provincial and territorial leaders reached a historic 10 year plan to strengthen health care.
The health care deal gives the provinces and territories exactly what they wanted and needed, a predictable long term source of revenue so that each jurisdiction can plan to spend health care dollars according to their own priorities. In total, the federal government will provide $41.3 billion over the next decade.
Furthermore, the federal government is working with the provinces on a new deal for municipalities. Canadians have made it clear that they want their communities, towns and cities to be great places to live, be safe, have affordable housing, good public transit, clean air and water, and abundant green spaces. Working with the provinces and territories to increase local revenues, the government will make available a portion of the federal gas tax over the next five years.
In 1993 the federal government faced the daunting task of eliminating a massive deficit that left little room for either the federal or provincial governments to manoeuvre in any direction. However, now that the federal government has been a responsible manager and reduced the deficit, and made it a thing of the past, we have an opportunity to work on a number of social challenges in effective partnership with the provinces and territories.
We have a good example in the national child benefit. Even when the federal government was fighting the deficit, the federal government established this program.
By 2007 the national child benefit will deliver $10 billion in yearly support to low and modest income families for their children. That is not to say that there is not much more that needs to be done to help families help their children. The time has come for a truly national system of early learning and child care, a system based on four key principles that parents and child care experts say matter.
As our society ages, Canadian families are caring not only for young children, but increasingly for elderly spouses and grandparents as well. Again, the federal government recognizes the vital role of Canadians who care for the aged or infirm relatives or those with severe disabilities.
That is why the throne speech made it clear that we intend to improve the existing tax based support to these groups. However, our action and investment agenda, reflecting real needs by people, does not end here. We have to do more to ensure that Canada's prosperity is shared by the aboriginal people, the first nations.
Yes, we have made progress but for these communities it is overshadowed by unacceptable gaps in educational attainment, in employment, and in basics like housing, clean water and in the alarming incidence of chronic diseases such as diabetes.
I have highlighted a dramatic and demanding range of obligations and opportunities for federal action and investment. There is another action agenda that we must not overlook which falls fully under the federal responsibility. In today's world we face both potential threats to security and growing demands for us to provide assistance on the international stage.
In April of this year we introduced Canada's first ever comprehensive national security policy which will ensure a more focused and integrated approach to securing our open society.
Enhancing Canada's security means that we have to invest more in our military as part of defending ourselves at home, in North America and in the world. Canada will never be the biggest military force, so it must be smart, strategic and focused.
That is why our government will be increasing the regular forces by some 5,000 troops and our reserves by 3,000, so that they may be better prepared and equipped to meet the challenges. I know that many in the House will champion further new investments in the months ahead.
It seems to me a convincing case that there are many real obligations and opportunities that have concrete claims on federal resources. There is one last core issue I want to contribute to our consideration today, our aging population.
We are rapidly reaching the point, many see it as 2011, where the baby boom generation will move from workers to retirees. This has significant implication for our future fiscal planning. It is in looking ahead to this and other challenges that our government has set out the objective of reducing the national debt to 25% over the next 10 years from the current 40% it is today. We are doing this to free up future resources, including reducing debt charges, so they will be available when they are needed for aging Canadians.
It is this type of prudent planning that Canadians expect and deserve of their federal government. That takes me to a very critical issue. We must be careful not to assume that the current surplus will remain the same. Within the ever changing economic environment, this is not possible. This is simply unwise and a false assumption.
Let us remember that while we have achieved seven consecutive federal surpluses, they follow 27 years of federal deficits which generated a huge national debt that still consumes more of the federal budget in interest payments than any other single spending item. Let us remember that by the mid-1990s about one-third of every dollar the federal government spent was borrowed money.
We face spending pressures not just today, but pressures that can grow as demographics and economies evolve. The best way to prepare for these pressures is to apply a prudent, balanced perspective on our current finances. It is this prudent, balanced perspective, based on solid evidence rather than wishful fantasy, that leads me to challenge the concept of a fiscal imbalance.
Yes, we must assist our provincial partners in areas of national concern and we are doing that. Our bottom line commitment to providing funding where and when needed has been made compellingly clear in recent weeks on health care and equalization. In planning these investments our government has made sure they can be delivered within the fiscal framework of balanced budgets. To do otherwise is foolish as we would return to unsustainable spending and destructive deficits.
Deficits are the surest way to jeopardize the long term economic health of every level of Canadian government. Canadians will not tolerate that risk. Canadians want careful considered investments in economic and social policies that will make us a more prosperous and secure country. These can be done through productive and positive debates instead of irresponsible claims of a fiscal imbalance.