Bill C-43 (Historical)

Budget Implementation Act, 2005

An Act to implement certain provisions of the budget tabled in Parliament on February 23, 2005

Part 1 amends the Income Tax Act and the Income Tax Application Rules to
(a) increase the amount that Canadians can earn tax free;
(b) increase the annual limits on contributions to tax-deferred retirement savings plans;
(c) eliminate the foreign property limitations on tax-deferred retirement savings plans;
(d) increase the Child Disability Benefit supplement to the Canada Child Tax Benefit;
(e) allow for a longer period for the existence of and contributions to a Registered Education Savings Plan in certain circumstances where the plan beneficiary is eligible for the disability tax credit;
(f) increase the maximum refundable medical expense supplement;
(g) exclude emergency medical services vehicles from the standby charge;
(h) extend to January 11, 2005 the date for charitable giving in respect of the 2004 taxation year for the tsunami relief effort;
(i) eliminate the corporate surtax; and
(j) extend the SR&ED tax incentives to SR&ED performed in Canada’s exclusive economic zone.
Part 2 amends the Air Travellers Security Charge Act to reduce the air travellers security charge for domestic air travel to $5 for one-way travel and to $10 for round-trip travel, for transborder air travel to $8.50 and for other international air travel to $17, applicable to air travel purchased on or after March 1, 2005.
Part 3 amends Part IX of the Excise Tax Act to extend the application of the 83 per cent rebate of the goods and services tax (GST) and the federal component of the harmonized sales tax (HST) to eligible charities and non-profit organizations in respect of the tax they pay on their purchases to provide exempt health care supplies similar to those traditionally provided in hospitals. It also amends that Act to provide that a director of a corporation may, under certain conditions, be held liable not only for unremitted net GST/HST amounts, but also for GST/HST net tax refund amounts to which the corporation is not entitled. Finally, it amends that Act to allow, under strict conditions, the creation of a Web-based GST/HST registry to facilitate the verification of a supplier’s registration by a registrant for the purposes of claiming input tax credits.
Part 4 amends Schedule I to the Excise Tax Act to phase out the excise tax on jewellery through a series of rate reductions over the next four years.
Part 5 amends the Federal-Provincial Fiscal Arrangements Act to authorize the Minister of Finance to pay funds to a trust established to provide the provinces with funding for the purpose of early learning and child care.
Part 6 authorizes the Minister of Finance to pay funds to a trust established to provide the Territories with funding for the purpose of assisting them to achieve the goals of the Northern Strategy.
Part 7 amends the Auditor General Act to permit the Auditor General to conduct inquiries into and report on the affairs of certain corporations that have received at least $100,000,000 in funding from Her Majesty in right of Canada. This Part also amends the Financial Administration Act to extend the application of financial management and control provisions in that Act to wholly-owned subsidiaries of parent Crown corporations and certain parent Crown corporations.
Part 8 authorizes the payment of funds to various foundations, including the Federation of Canadian Municipalities for the purpose of providing funding to the Green Municipal Fund.
Part 9 amends the Asia-Pacific Foundation of Canada Act to focus the mandate of the Foundation, to modify its governance structure, to establish qualifications for the appointment of the directors and the President, to impose a duty of care on the directors and the President and to require that the Foundation offer its services in both official languages. It also amends the Act to specify the type of funds the Foundation may receive and the appropriate use of those funds and to require that those funds be invested in accordance with policies, standards and procedures established by the board. In addition, the provisions of the Act respecting auditing, annual reports and winding-up have been expanded.
Part 10 amends Part 1 of the Budget Implementation Act, 1998 to broaden the category of persons to whom the Canada Millennium Scholarship Foundation may grant scholarships and bursaries to include not only persons who are Canadian citizens or permanent residents of Canada within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act but also persons who are protected persons within the meaning of subsection 95(2) of that Act, for example, Convention refugees.
Part 11 authorizes the Minister of State (Infrastructure and Communities), pursuant to the initiative commonly known as “A New Deal for Cities and Communities”, to make payments for the purpose of providing funding, in the fiscal year 2005-2006, to cities and communities for environmentally sustainable infrastructure initiatives, in accordance with agreements to be negotiated with provinces, territories and first nations.
Part 12 enacts the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act. The legislation will implement the arrangements of February 14, 2005 reached with Newfoundland and Labrador and Nova Scotia on offshore revenues. To do this, the legislation will
(a) authorize the payment of equalization offset payments to Newfoundland and Labrador and Nova Scotia for 2004-05 to 2011-12, set out the conditions under which payments will be extended to any of fiscal years 2012-13 to 2019-20, and authorize payments for that period should those conditions be met;
(b) set out the manner in which the offset payments are to be calculated;
(c) authorize the making of a cash pre-payment in the amount of $2 billion in respect of the agreement with Newfoundland and Labrador and a cash pre-payment in the amount of $830 million in respect of the agreement with Nova Scotia; and
(d) implement all other aspects of the agreements.
Consequential amendments to the Budget Implementation Act, 2004 respecting offset payments to Nova Scotia will also be required to ensure that 100 per cent offset is being provided for in fiscal years 2004-05 and 2005-06.
Part 13 establishes an Agency, to be called the Canada Emission Reduction Incentives Agency, to acquire greenhouse emission reduction and removal credits on behalf of the Government of Canada.
Part 14 enacts the Greenhouse Gas Technology Investment Fund Act. That Act establishes an account in the accounts of Canada called the Greenhouse Gas Technology Investment Fund to which are to be charged amounts paid by the Minister of Natural Resources for the purpose of
(a) research into, or the development or demonstration of, technologies or processes intended to reduce emissions of greenhouse gases from industrial sources or to remove greenhouse gases from the atmosphere in the course of an industrial operation; or
(b) creating elements of the infrastructure that are necessary to support research into, or the development or demonstration of, those technologies or processes.
The Act also provides for the creation of technology investment units in respect of amounts that are contributed to Her Majesty for those purposes.
Part 15 amends the Canada Deposit Insurance Corporation Act to
(a) increase the deposit insurance coverage limit for insurable deposits from $60,000 to $100,000;
(b) repeal the authority of the Corporation to make by-laws respecting standards of sound business and financial practices for member institutions; and
(c) provide that the deposits of a federal institution shall automatically be insured.
Part 16 amends the Canada Student Financial Assistance Act to provide for the termination of the obligations of certain borrowers in respect of student loans in the event of their death or if, as a result of their permanent disability, they are unable to repay their loan without exceptional hardship, taking into account their family income.
Part 17 amends the Currency Act with respect to the Exchange Fund Account and the management of Canada’s foreign exchange reserves. These amendments include authorizing the Minister of Finance to establish a policy concerning the investment of assets held in that Account and to advance funds to that Account on terms and conditions that the Minister considers appropriate.
Part 18 amends the Department of Public Works and Government Services Act to provide the Minister of Public Works and Government Services with responsibility for the procurement of goods and services for the federal government, and to authorize the Minister to negotiate and enter into contracts on behalf of the Government of Canada and to make commitments to a minimum volume of purchases on its behalf.
Part 19 amends the Employment Insurance Act and the Department of Human Resources Development Act to allow the Canada Employment Insurance Commission to set the premium rate under a new rate-setting mechanism. In setting the rate, the Commission will take into account the principle that the premium rate should generate just enough premium revenue to cover payments to be made for that year, as well as the report from the employment insurance chief actuary and any public input. On an as-needed basis, the Commission may also contract for the services of persons with specialized knowledge in rate-setting matters. If it is in the public interest to do so, the Governor in Council may substitute a different premium rate. In any given year, the rate cannot change by more than 0.15% ($0.15 per $100) from the previous year’s rate, and for the years 2006 and 2007 must not exceed 1.95% ($1.95 per $100).
Part 20 amends the Employment Insurance Act, for the purpose of the implementation of a premium reduction agreement between the Government of Canada and a province, to allow for a regulatory scheme to make the necessary adjustments and modifications to that Act as required to harmonize it with a provincial law that has the effect of reducing or eliminating the special benefits payable under that Act. A consequential change is also made to the parental benefits provisions.
Part 21 amends the Financial Administration Act to provide the authority for the President of the Treasury Board to create a shared-governance corporate entity for the purpose of administering group insurance or other benefit programs. In addition, the amendments provide the authority for the Treasury Board to establish or modify those programs not just for employees of the public service but for other persons or classes of persons as well.
Part 22 amends the Old Age Security Act to increase the guaranteed income supplement by $18 a month for single pensioners and by $14.50 a month for each pensioner in a couple, effective January 2006. Also, the amendments increase the allowance by $14.50 a month and the allowance for the survivor by $18 a month, effective January 2006. In addition, the amendments provide for identical increases to the guaranteed income supplement, the allowance and the allowance for the survivor in January 2007.
Part 23 authorizes the Minister of Finance to pay funds directly to the provinces of Quebec, British Columbia and Saskatchewan and to each of the three Territories.

Budget Implementation Act, 2005

[Benoît Sauvageau, Bloc, Repentigny, QC]

Mr. Speaker, I am pleased to speak on behalf of my party on the budget bill, Bill C-43.

With your permission, for the sake of those listening to us, and for the Liberal Party, as well as the colleague who has just spoken, I will read from a newspaper article which will serve as an introduction to my speech on the budget.

These are excerpts from an article in the May 13 La Presse , over the byline of Stéphane Paquet. It is titled “One billion a day for three weeks: the Liberal government of—I must say “the Prime Minister”, since I cannot say his name—has made announcements totalling $22.5 billion” in a matter of three weeks. I will read a few excerpts from the article:

In three weeks, the Liberal ministers' announcements have averaged out at $1 billion a day. Between April 20 and last Monday, government ministers have made no fewer than 178 announcements across Canada. That makes over 8 a day, for a total of $22.5 billion.

When a journalist requested a list of the projects announced from the PMO, he was referred to the government web site, where there were indeed 175 projects listed.

In two announcements alone, Ontario—which is, I scarcely need point out, the key battleground in the next election campaign—got close to half the $22.5 billion pointed out by the Conservatives. First of all, there was the $5.75 billion over five years announced last Saturday to reduce the Ontario “fiscal imbalance”.

Which they acknowledge exists in Ontario, but not in Quebec.

Two days later, it was the turn of the country's airports to divvy up $8 billion to be delivered over 47 years. Since Toronto's Pearson Airport is the biggest one in Canada, it gets the lion's share, five of the eight billion. As for Trudeau airport, in Montreal-Dorval, it gets $500 million.

So, $500 million compared to $5 billion.

In short, this article describes the process of buying votes at the rate of one billion dollars a day. It just so happens, moreover, by sheer chance, that the Liberals are putting the money where they want to gain seats in the imminent election, that is to say mainly in Ontario.

At the same time, they want us to debate the budget. Since this party, this minority government, does not respect the majority decisions of the House, be it one confidence vote or all votes—as in the case of the people whose property was expropriated in Mirabel—why should it now respect the vote on the budget, should it win it? Why in fact does it even need to have a vote on the budget, when, although it had not been approved, the government has spent $1 billion a day for three weeks in an effort to buy votes throughout Canada, and primarily in Ontario?

The Bloc Québécois opposed the budget from the start. What would the Bloc have liked to see in the budget for it to support it? The Liberal member was saying earlier that partisanship had to be put aside and the benefits of the budget recognized, and everyone should then vote in favour of it. That said, my colleague from Montcalm asked my why, this time, we should believe the Liberals, when they have been preparing budgets for 12 years saying, “We will pay attention to health, postsecondary education and seniors”. Every year, they fail to keep their word. For 12 years they have been in office, seven years after the annual surpluses, year after year the problem remains unchanged, except on the eve of an election or when the government is trying to buy votes in Ontario.

The Bloc, however, opposes the budget. Is it only because we are the “wicked separatists” and they want absolutely nothing for Quebec and Quebeckers?

We will try to find arguments a little more substantial than those the Liberals are using to show why the Bloc opposes the budget.

First, as we did discreetly with the throne speech, we wanted the Liberals to recognize the fiscal imbalance in the budget. They did so indirectly in the throne speech. We would have liked tax fields to be transferred rather than have them promise amounts annually conditional on our good behaviour. We will get them if the premier is Jean Charest, but if it is Bernard Landry, we will not. Perhaps it is the Liberals who are being partisan in this regard. We would therefore have liked the fiscal imbalance to be recognized and tax fields to be transferred accordingly.

We would also have liked some recognition of the problems with employment insurance. Even the agreement with the NDP does not mention this. We would have liked an independent employment insurance fund and commission recognized in the budget. My mind turns to the member for Acadie—Bathurst, who often goes on in this House about doing more for employment insurance. But our friends in the NDP forgot to include it in the deal between their party and the Liberals. For us, it was important before the budget and it is still important after the budget. It is important for people who unfortunately have to turn to employment insurance when in difficult situations. We would have liked the unanimous decisions of the Subcommittee on the Employment Insurance Funds to be included and acknowledged in the budget, but there is no sign of them. That is another reason why the Bloc Québécois cannot support this budget.

Insofar as the Kyoto protocol is concerned, money was appropriated for it in the deal between the government and the NDP. However, this money was provided to promote the polluter pays principle. There is money for encouraging the automobile industry, which has signed an agreement. That is not what we want. As the Bloc critic for the environment has often said, we want the money put aside for the implementation of the Kyoto protocol used to develop renewable energy and clean energy, such as wind.

The fourth reason has to do with agriculture. It is really strange that the budget agreement between the NDP and the Liberals does not have anything for agriculture. The Bloc Québécois would have liked some recognition of the problems faced by farmers, who unfortunately have had to pay the price for the problems between the United States and Canada. We would have liked to see more support for them, especially when there are budget surpluses.

In regard to international assistance, the Prime Minister has said—the accolades he shared with Bono were supposed to underline it or confirm it—that Canada would reach the rate of 0.7% of GDP for international assistance. Once again, with the budget surpluses that we have, the inclusion of this commitment in the budget would have been another reason for the Bloc Québécois to support it.

Let us say a few words now about respect for Quebec's jurisdictions in the areas of day care and parental leave. It is pretty strange that, here too, agreements are signed with everybody. But in Quebec on the other hand, where a system is in place and when we were told that everything was ready to go, no agreement can be reached on day care. And there are problems with parental leave. It has all been very annoying.

There you have five or six rational, non partisan, solid reasons why the Bloc Québécois cannot support this budget. To those smiling across the way I would say the fiscal imbalance, employment insurance, agriculture, international aid and the environment, although very important issues, are major oversights in the budget and reason enough for us to oppose it. The budget is imperfect and we would have liked to have improved it, but the Liberals were not interested in that.

I want to touch on another important section, part 7 of the budget, which would allow the Auditor General the right to oversee the foundations and crown corporations. This is the first time we have seen the government copy or plagiarize a private member's bill, Bill C-277, and take credit for offering the Auditor General such a right. If that is not partisanship, then what is?

In committee, I asked the President of the Treasury Board to give me another example of a private member's bill that the government had plagiarized for its own gains. He was unable to name any. I also asked him how he squared that circle since, for five years, every time the Auditor General asked, the government said it could not introduce such a bill because it would take away from the independence of the foundations.

Why now, in 2005, on the eve of an election, on the heels of the sponsorship scandal, is the government able to introduce such a bill without taking away the independence of the foundations? That is another unanswered question.

Those are the non partisan, rational, solid reasons and sound arguments why the Bloc Québécois opposes this budget and will continue to oppose it, despite the so-called agreement between the NDP and the Liberals.

Bill C-43

[Judy Wasylycia-Leis, NDP, Winnipeg North, MB]

Mr. Speaker, once again I ask for unanimous consent for the following motion:

That Bill C-43, an act to implement certain provisions of the budget tabled in Parliament on February 23, 2005, be deemed to have been read a second time, referred to committee of the whole, amended at committee of the whole so that:

clause 9 be amended by replacing lines 2 to 8 on page 7 with the following: for a taxation year is (a) if the taxable capital employed in Canada of the corporation for the taxation year is equal to or less than $50,000,000, that the proportion of 4% that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year; and

(b) if paragraph (a) does not apply, the percentage determined by the formula A + B [(C - $50,000,000)/$25,000,000]

Where

A is the proportion of 4%, that the number of days in the taxation year that are before 2008 is of the number of days in the taxation year;

B is that proportion of 4% that the number of days in the taxation year that are after 2007 is of the number of days in the taxation year; and

C is the lesser of $75,000,000 and the taxable capital employed in Canada of the corporation for the taxation year.

(3) for the purpose of subsection (2), the taxable capital employed in Canada of a corporation for a particular taxation year is

(a) if the corporation is associated with one or more corporations in the particular taxation year, the total of all amounts each of which is the taxable capital employed in Canada (within the meaning assigned by subsections 181.2(1) or 181.3(1) or 181.4, as the case may be) of the corporation, or of such an associated corporation, for its last taxation year that ended in the calendar year preceding the calendar year in which the particular taxation year ends; and

(b) if the corporation is not associated with one or more other corporations in the particular taxation year, the taxable capital employed in Canada (within the meaning assigned by subsections 181.2(1) or 181.3(1) or 181.4, as the case may be) of the corporation of the particular taxation year.

That Clause 10 be amended by deleting lines 9 to 36 on page 7 and lines 1 to 7 on page 8; and

Clause 11 be amended by deleting lines 8 to 29 on page 8.

That Bill C-43 be reported back to the House as amended, concurred in at the report stage, read a third time and passed.

An Act to Authorize the Minister of Finance to Make Certain Payments

[Guy Côté, Bloc, Portneuf, QC]

Madam Speaker, first, I want to quote the start of the budget speech by the Minister of Finance:

Let me begin by expressing my appreciation to all those who have helped in the preparation of this 2005 federal budget—from the many organizations and professional groups that presented expert briefs, to Canadians from every corner of the country who submitted individual letters and ideas.

Their contributions, their counsel and their concerns have helped shape the budget I am tabling today.

The minister was telling tales. Bill C-48 makes this clear. At the first sign of significant pressure, he introduced a bill devoid of logic that negates all the consultations that occurred in the months preceding the tabling of the budget, including those held by the Standing Committee on Finance.

The Bloc Québécois voted against this budget when it was tabled. I simply want to briefly remind the House why. First, this budget did not propose any solution to the fiscal imbalance. Also, it made no attempt to respond to the needs of Quebeckers, with regard to EI, for example. There was no specific plan to implement the Kyoto protocol. Things have even gotten worse, since a bad plan for implementing the protocol was tabled. Today, farmers protested in front of the House of Commons. This budget did not meet their needs whatsoever. The same is true of international aid. This budget, like Bill C-43, has no respect whatsoever for Quebec's areas of jurisdiction.

We voted against the budget and we will vote against the budget implementation bills, meaning Bills C-48 and C-43.

What is even more disturbing about Bill C-48 is that it is nothing but an empty shell. I may not have as many years in this House as some, but I do not believe I have ever seen such a senseless bill. It contains no minimums, only maximums, and no specific time lines. The amounts are contingent on whatever surplus there will be at the end of a fiscal year.

Mind you, I am not worried about the existence of a surplus. I am, in fact, sure that the actual surplus at the end of the fiscal year will be far more than set out in the budget. This is an old trick, one used by the previous government, and still being used by this one.

This bill does not reflect a number of realities, including the realities of Quebec. Once again, it encroaches on Quebec's jurisdiction, over education in particular.

This is, without a doubt, a hollow bill, and I find it hard to understand why the NDP got involved in this with no guarantee that its requirements would be respected. That was made clear when the NDP leader had to remind the Prime Minister that the corporate income tax reductions, which he required in exchange, were not in the bill. The Prime Minister then had to suddenly pull a rabbit out of a hat and say that this bill was going to apply only to fiscal years 2006-07 and 2007-08, and that the reductions would come the year after, anyway, so he did not need to cancel them.

This is a fine example of a fool's deal. I am sure they meant well. I have to say, however, in this House, that the NDP has been had. These are last minute add ons, the desperate efforts of a Prime Minister to try to buy another election. This time, perhaps, with dirty money—we will see—but certainly with taxpayers' money.

If Bill C-48 at least resolved the problems in the budget or in Bill C-43. But no, not even. To some extent, it is worsening things.

Once again, Bill C-48 ignores the fiscal imbalance completely. They will invest money in Kyoto, but the plan remains a bad one. I note that there is neither a minimum nor a timetable. They continue to invest in areas of jurisdiction, without a specific plan. They talk a lot about lowered tuition fees. In Quebec, we were not consulted a whole lot. Had we been, they would know that tuition fees are already very low, the lowest in Canada.

In terms of social housing, we immediately supported the requests of various groups in this regard. The latest budget made no provision at all. At the last minute, they aligned figures, but no string is attached. Nothing in this bill will require the government to spend these amounts.

After years of draconian cuts in transfer payments to the provinces, they claim to be reinvesting in postsecondary education. That represents only 11.5% of the money the federal government is investing. Is there a little money in this bill? Perhaps. Once again, no minimum amount, no timetable for the conditions attached to the payment of these amounts and no guarantee it will be done.

It is a last minute announcement. The worst of it is that this government has no qualms telling people, voters, that, if it is not re-elected, the money will never be invested. It is trying once again to frighten voters by saying the money will disappear if the government is defeated. This is the government that ignored education when it presented its 2005 budget.

In the case of the environment, as I mentioned earlier, the Kyoto plan is a bad one. I am far from convinced that an injection of money will improve the situation. In fact, it could even worsen it. The Kyoto protocol is badly suited to the situation in Quebec, specifically.

In terms of international aid, the February 23, 2005, federal budget does not provide any new money, as you will recall. The Bloc Québécois demands that the government draft a serious, long-term plan to achieve the UN target of 0.7% of GDP by 2015.

Bill C-48 authorizes the government to reach agreements with municipalities, agencies and individuals. In the case of municipalities, again, it is a clear encroachment on the jurisdiction of Quebec and the provinces.

Worse yet are the foundations. This has come up quite often in this House. The government, with no real plan and not knowing what to do with its surplus, gives money to the foundations. For the most part, this money has not yet been used. I have even raised certain cases of foundations that have more money in the bank now than when they received the payments. It is important to say that Bill C-48 seems to authorize payments to foundations.

In closing, we will vote against the budget because it is bad for Quebec. Implementation bills, including Bill C-43, just keep repeating the same mistakes. Bill C-48 is an empty shell designed to buy votes with taxpayer dollars.

[Monte Solberg, Conservative, Medicine Hat, AB]

Mr. Speaker, I think people in Ontario still have nightmares about the old NDP government in Ontario. However, my friend makes a very good point.

The finance minister said, when he brought down Bill C-43, that those were his priorities. These were the things that were right for the country. After that time, when the NDP was questioning him about some of the other things it wanted to do, he said that the government could not do them, that they were wrong for Canada and that his budget could not be cherry-picked and stripped away piece by piece.

Clearly, those were not the priorities of the Liberals but they became the priorities of convenience to simply grab the 19 votes of the NDP and avoid being defeated. It should make Canadians pretty cynical about how the Liberal government operates.

[Jeff Watson, Conservative, Essex, ON]

Mr. Speaker, the NDP budget, Bill C-48, proposes $4.6 billion in spending left out of the Liberal budget, Bill C-43.

The member for Davenport earlier said that this was money for Liberal priorities. If these are priorities, why have they been left out of the Liberal budget? Did the finance minister not get his priorities right the first time and needed a napkin passed to him to remind him of what Liberal priorities were?

We know the NDP priorities are fiscal ruin and a return to deficits. Could the member for Medicine Hat tell us what real Liberal priorities are?

[Monte Solberg, Conservative, Medicine Hat, AB]

Mr. Speaker, I would argue that I am not seething with rage right now. I want my friend across the way to know that we oppose the budget because we think it is dangerous for families, for farmers and small business people.

In response to her question about enjoying the support of the Bloc Québécois, I have to point out to the member that in the last election campaign it was her leader who said that he would support a unilateral declaration of independence. It sounds like it is the NDP that is the biggest supporter of separatism of all.

In response to her question about the issue of supporting deals that the government has struck, we have said that we oppose the NDP-Liberal budget, Bill C-48. We will not support the expenditure of $4.6 billion. In fact, even the finance minister of the government does not seem to support it.

Setting that aside, we do support a number of the deals that have been struck under Bill C-43.

As the member knows, we said, at the time Bill C-43 came down, that there were a number of things that we supported in it. Therefore, we are being completely consistent with that. We believe that some of these things need to be done. What pains me is the government has now taken some of the things out of there that were the best parts of that budget, including the tax relief on large employers that would have created 340,000 jobs.

I am disappointed that my friend, who is supposedly a friend of labour, does not support that aspect of Bill C-43.

[Monte Solberg, Conservative, Medicine Hat, AB]

Mr. Speaker, it is my pleasure to address Bill C-48. I want to start by underlining that the Conservative Party believes strongly that Bill C-48 will hurt Canadian farmers, seniors, people who are trying to create jobs in this country and families with children.

We believe strongly that Bill C-48 is taking Canada off track financially. We also believe that it is a pretty obvious attempt to cover up the allegations of corruption being levelled at the Liberal Party and the government. We believe that is a pretty important reason to oppose Bill C-48. I will expand on some of those things in just a moment.

I want to go back to a point I was making earlier about how fundamentally Bill C-48 completely contradicts the government's own finance minister. Going back to last February, I was in this place when the finance minister spoke about how important it was to follow the principles laid out in Bill C-43. One of those principles was that there had to be tax relief for large employers in Canada.

If we go to the budget documents, we can still find the page where it talks about how important that is for attracting investment to this country and accumulating capital, so that businesses can take that and invest it in training for their employees, buy new equipment and expand their operations. These are things that would put people to work.

Since that time a study came out from the C.D. Howe Institute saying that if the government followed through on those tax breaks for large employers, it would generate 340,000 jobs. I believe that. I believe what the finance minister was saying about that. I think those things are so important.

Canada is in competition with other countries around the world. When we do things that create jobs, do hon. members know what that does? It is not just creating 340,000 jobs. Those are jobs for real people, people who live in my community and the communities of all the members in this place, people who, today, do not have jobs and want nothing more in the world than to have some meaningful employment and the ability to earn a decent wage, so they can look after their families. That is a pretty reasonable thing.

That is what the finance minister argued very persuasively, persuasively enough that, although we did not support the budget, we did not bring down the government on the budget. We basically abstained from voting on that.

Later on we found out that the government added some things into the budget, like some of the Kyoto provisions that we did not agree with, but after that point, I heard the finance minister on many occasions defend his budget against the NDP. He said that we cannot cherry-pick the budget. We cannot just pick and choose what we want in the budget. He said it when he was standing right there. He said, “You can’t go on stripping away piece by piece by piece of the budget”. That is what he said. It is in Hansard. If we check the record, we will find it right there, and he defended that.

When it became apparent that the government could lose a vote on the issue of the budget on a confidence motion, the Prime Minister struck a backroom deal with the NDP while the finance minister was back in Regina. The finance minister obviously knew nothing about it. All of a sudden a deal was struck where the tax relief for large employers was cut out of the budget, so that the government could increase spending dramatically on other programs.

We should remember that we have already had the largest increase in spending back in the February budget that we have seen in 30 years. We have seen spending go up by about 50% since 1997-98 in this country. That is 50%.

We have seen the cost of bureaucracy go up by 77%. However, that was not enough. The government added more in the February budget. Now it has added even more spending again in Bill C-48. That troubles me because the reason we are doing all this spending is to allow the government to cover its tracks on this corruption scandal. It knows it is up to its ears in trouble because of that scandal, so it is trying very hard to get people's attention away from that.

However, what worries me is that by rushing to do this and by just throwing money at things, we are going to replicate exactly the same situation that led to the firearms registry. Where the government was faced with the problem of gun violence, it threw a bunch of money at it, hoped that would fix it, and created a firearms registry. It said it would cost $2 million, as my friend from Edmonton pointed out a while ago. It ended up costing $2 billion. We saw the same thing--

[Guy Côté, Bloc, Portneuf, QC]

Mr. Speaker, not so long ago, the Minister of Finance rose in this House to praise his fantastic budget which, as far as he was concerned, was perfect, the eighth wonder of the world. Today, because of Bill C-43, the Minister of Finance got the slap on the hand he deserved from his Prime Minister who, not so long ago, tried to buy the conscience of Quebeckers with dirty money, and is now trying to buy an election with taxpayers' money.

Bill C-43 is an empty shell. I heard the member opposite say that he knows the priorities of Canadians and Quebeckers. I believe that in Quebec, like in the rest of Canada, people are asking for something more specific than a bunch of figures that mean absolutely nothing.

The member had a lot to say about post-secondary education, which is currently funded by the federal government to the tune of approximately 11%. The few extra bucks provided do not make a big difference. The member also had a lot to say about lowering tuition fees. I have news for him: tuition fees in Quebec are the lowest in Canada. Is that what he calls knowing the priorities?

[James Bezan, Conservative, Selkirk—Interlake, MB]

Mr. Speaker, I would ask the hon. member across the way for some clarification.

We are discussing Bill C-48 today which is not the Liberal budget. The Liberal budget is Bill C-43, the budget I thought the government believed in and which contained its plan for the country for the next year.

The Liberals, essentially, have gone to the NDP in a move to hang on to power. Although they think that Bill C-48 is the life preserver they have been looking for, I actually think it is a noose.

Some of the things in this budget were definitely not included in the finance minister's initial budget because they were not deemed important enough back in February when he tabled the budget. What they are doing here is bringing forth a very hastily put together bill that, in their own opinion, would not accomplish the things that the NDP hopes they will.

Does the member honestly believe that the policy announcements being made in Bill C-48 will ever come to fruition? I also want to know if they will accomplish anything. I really think that what is laid out in Bill C-48 is something that will cost our children and grandchildren a pile of money without any real plan. It opens up the possibility of hastily put together programs that will not be administered properly and could lead us to more government mismanagement and corruption.

[John McKay, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, just as a point of clarification, I want to point out to the hon. member that every budget initiative always starts with the word “may”. It is discretionary spending on the part of the finance minister and the Government of Canada.

If the member reviews Bill C-43, he will find that “may” is in the legislation. That is true of pretty well any budgetary bill that appears before the House; it is not “an obligation on the part of”. I want to assure my friends in the NDP that there is no differentiation between the phrasing in Bill C-43 and the phrasing in Bill C-48.

I want to address the hon. member's issue. Bill C-48 has a number of initiatives, all of which are coincidental to the initiatives of the Government of Canada. I know the hon. member is concerned about fiscal propriety; I want him to understand and realize that the moneys to fund these initiatives are only to come out of unplanned surplus moneys.

Does the hon. member realize that the only commitment in terms of the financial impact is that the contingency money is taken down from $3 billion in 2005-06 and $3 billion in 2006-07? That is a commitment to reduce the contingency money from $3 billion to $2 billion, but beyond that, any other moneys to fund these initiatives are to come out of unplanned surpluses. Did the hon. member realize that when he was making his speech?

[Bev Oda, Conservative, Clarington—Scugog—Uxbridge, ON]

Mr. Speaker, it is my pleasure to speak to Bill C-48 today.

When I spoke to Bill C-43 in this House, I pointed out how the budget presented in February by the government would only see 3% of the announcements flow in this budget year.

Bill C-48, which is being debated today, is weaker than that. This bill has its origin in a deal made in a hotel room in Toronto. This is not how government legislation should be undertaken. This is not how budgets should be developed. This is not how Canada's economy should be planned. This is not responsible nor accountable governing.

This is deal making; a desperate deal to maintain power. It is a deal to spend $4.6 billion, maybe, of taxpayer dollars. Will these dollars flow to deliver what the NDP has been promised? There should be substantial real doubt.

Bill C-48 stipulates that payments may only be made in either 2005-06 and 2006-07 if there is a $2 billion surplus and, in fact, in this budget year there is no requirement to spend $1.00.

Before I proceed, Mr. Speaker, I will be splitting my time with the member for Edmonton—Sherwood Park.

The only stipulation in this budget is that no more than $4.6 million be spent over two years or before the end of the 2007 fiscal year. In other words, Bill C-48 gives the government the power to spend billions but does not actually require it to spend the money.

My experience in business is that surpluses are not determined until the end of any fiscal year. This means that none of the moneys in Bill C-48 would even have a chance of flowing until the 2006-07 budget begins. Is there a real deal here or not? More important, will the deal deliver and improve the lives of Canadians?

Canadians want more than words, whether just spoken or written on paper.

The citizens of my riding and all Canadians are hard-working and they are now questioning the intent of the government. If people in my riding ask what is in the NDP-Liberal deal I cannot answer that in all honesty. I have to say that this bill, a one and a half page document, has no plans and no specifics on how $4.6 billion would be spent.

My constituents are telling me that they are fed up with waste and mismanagement. They want their representatives to ensure that their tax dollars will work for Canadians, not for advertising firms and party followers.

Yes, I, along with my constituents, care about the environment. We care about infrastructure. We care about post-secondary education. We care about housing. They care about, as all Canadians, the same things as every other Canadian. They are also willing to pay their taxes so needed services can be delivered by every level of government to meet their legitimate responsibilities.

The citizens in my riding have watched the environment, our roads and infrastructure deteriorate. They have seen how our youth are struggling to find a future in Canadian society. However for the past 12 years they have seen only higher taxes and little improvement in the delivery of government services. The level of frustration is peaking. What has peaked now is the lack of trust, faith and respect for the government.

Therefore, can I say with any level of certainty that any of the matters in Bill C-48 will be delivered? The answer is no.

I believe Canadians deserve greater certainty. They should have a level of confidence that the budget presented in February which was the best budget the government could responsibly deliver. How solid was that budget when only weeks later another $4.6 billion was tacked on?

Why were the matters in Bill C-48 for housing, tuition and the environment not in the February budget? The budget making in Bill C-48 is compounded by the flurry of announcements made by the government more recently. Why were these announcements not in the February budget?

There is no plan. The only plan behind these announcements is to continue in power. Canadians want sound fiscal management. They want real programs, not just speeches and announcements. They want accountability and responsible program spending. They also want a fair deal and a balanced fiscal policy to meet the needs of both urban and rural communities.

The February budget and Bill C-48 do nothing for the farmers in my riding. Bill C-48 is spending without a plan. I cannot support the bill. It would be irresponsible to support a bill that takes $4.6 billion of taxpayer dollars without any accountability, particularly from a government and a party whose track record has created a sentiment in Canadians of mistrust and cynicism.

Canadians need to have faith that Canada will flourish and that they will have their needs met, first by themselves with the resources they have worked hard to earn and keep, then by the community as friends, families and neighbours because we are a caring people, and by a government, every level of government, which will fulfill the responsibilities given in a responsible, accountable way with full disclosure of not only how much is going to be spent but how and in what programs.

Natural Resources

[Loyola Hearn, Conservative, St. John's South, NL]

Mr. Speaker, in response to a question from me some time ago, the Prime Minister said he could not split Bill C-43 because it would be objected to by the Bloc. Every member on this side of the House gave unanimous consent to split the bill, bring forth the bill, and deal with it to give Atlantic Canadians their money right now.

The budget process will take months and the Liberals know it. Why is the government betraying Atlantic Canadians?

An Act to Authorize the Minister of Finance to Make Certain Payments

[Myron Thompson, Conservative, Wild Rose, AB]

Mr. Speaker, when I listen to the speeches from Liberal members with regard to either the NDP bill or Liberal Bill C-43, it does not matter which one we are talking about.

I have yet to hear one single word about agriculture and the destitute farmers who are standing in front of the parliamentary buildings today in the hundreds, if not thousands. There will be thousands by the weekend. These are destitute people, who have had nothing from this government or any budget except broad announcements and no cheques.

I want the member to listen to this. Just yesterday I received a photocopy of a cheque that was received by a farmer in my riding. He and his wife have been working the farm since 2003, trying to put food on the table to feed their three children, working many hours trying to maintain a farm and live off of it. They applied for the money that was announced in 2003. Yesterday, in a little brown envelope, the cheque arrived from the government. They opened it expecting thousands. It cost them a lot to even prepare this document. The sum of the cheque was $140.06.

I wonder if the member could explain to me, after all these billions of dollars in announcements, how a destitute family, which is only a small example, and if he does not believe me he can go out in front of the building today and talk to the thousands of people out there who are not--

[John Cannis, Liberal, Scarborough Centre, ON]

Mr. Speaker, the member is wrong. Let me say that name calling is the last resort of fools. We will let Canadians judge who the fools are out there.

The member talked about democracy. Solon was the founder of democracy and I know what democracy is all about. We have been trying to deliver a report on emerging markets in committee and the Conservatives deliberately, in a premeditated way, stymied that activity, therefore hurting the nation.

In answer to his question, he is wrong because this budget continues to complement what Bill C-43 did. For example, it will continue to pay down the debt. It will continue to invest in the right areas. It will continue to do the right things. It simply adds on.

It does not take away from any of the commitments that the Minister of Finance has brought forward in Bill C-43. We have simply taken it a step further by saying that we will support post-secondary education, transportation and enhance housing initiatives.

When it comes to the military, he is wrong again because it does not take away from the military. I do not think he was listening when I said that it is one thing to send troops over there and not be able to help them. These moneys have been designated under military. I believe that any individual going over to do an assignment, whether it is policing, education or peacekeeping, is part of our military, unless he wants to start dissecting and saying this military person strictly does administrative work and another military person drives a tank. No, it is all military.

I do not see where he is coming from in saying the military loses money. How can it lose money when money is being put in? That is the Conservatives' math, which Canadians have finally understood.

[John Cannis, Liberal, Scarborough Centre, ON]

Mr. Speaker, I am pleased to have this opportunity to discuss Bill C-48. At the same time, I am also sad with what has gone on. Through my presentation I will allude to that simply because we are given the opportunity once a week to go home to our ridings and gauge with our constituents, hear their views and comments, given the unusual circumstances that are unfolding here in this honourable chamber, and come back and work with our colleagues to see how we can positively move forward initiatives, efforts that the government brings forward for the betterment of our country, our people, our youth, our seniors and every other generation in between, so we can continue staying at the pinnacle where our country has been for many years.

As I said in the past, it is no coincidence that our country is recognized as one of the best countries in the world in which to live.

Today I will be speaking to Bill C-48 which proposes investments from unplanned surpluses. What this means primarily is that, as the Liberal government traditionally has done in the past, it looks to making the right kind of key investments within our Canadian society basically because Canada as a whole has been recognized and noted as a very different country, a compassionate, caring and giving country, a country that always comes to the calling and always stands up, whether it be domestically or internationally.

In past budgets the government has made significant investments in priority programs such as social programs. At the same time, this bill is simply an extension of what we traditionally have done in the past.

I will make two or three brief points of what this bill would do.

This bill, first, invests in, as I have put it in the past, the future of our country, which is our youth. In essence, it supports post-secondary education, post-secondary programs. What better investment can we make? We talk about staying competitive as a nation. We talk about creating a smart society. We talk about creating a society that is productive, peaceful, safe and secure. That is where this investment, I believe, would bear fruit.

Beyond that, what would it also do? It supports areas such as transportation, for which the cities, for example, have continuously asked us for support. We know very well that a strong city makes for a strong province and, as a result, makes for a strong country. We have that obligation.

Housing, which is important, is another element of Bill C-48. What best can families or individuals have, as we have often said, than a roof over their heads, which is the foundation of any safe society. This government, in its wisdom and in consultation with other parties, said that we must move forward on this issue and we are doing so.

Another area is our environment. If we do not look after the environment today, 10, 20, 30 years down the road we will be saying, “God, what mistakes. What did we do?” We hear how our health system is being impeded. We have an aging population. Any initiative toward protecting our environment is a great investment, and that is part of what Bill C-48 would do.

A nation is not only noted for what it does within its borders. A nation also gains respect by what it does outside its borders.

In Canada, historically speaking, Prime Minister Pearson did not receive the Nobel Peace Prize just because he was the prime minister of Canada. He received it because he stood above the rest. His initiatives then make us proud today as a nation.

We cannot just take one step forward and then take ten steps back. As difficult as it is sometimes, if we want to be international players, if I might use that word, we need to participate and there are different ways of participating. We can provide physical presence, which our proud military has done and performed so well over the years, but just being there is one aspect of it. There has to be financial support at the same time.

Bill C-48 in essence would do that as well. Our military has repeatedly said that if they are being asked to do a job and to put their lives at stake they need support and Bill C-48 would do that.

Our foreign aid contribution is toward our military. We have heard that over 300,000 people have lost their lives in Darfur. We cannot sit back and say that we do not care. We do care. Aside from caring, we talk about creating security for our nation. If we have nations that are hurting, rest assured that the hurt will be expressed in different ways, and generally it is not in a good way.

If we help these nations find peace, security, stability and economic development where their people can seek work that will give them the opportunity to provide food and shelter for their families, they then will have no need to go out and react in adverse ways which does harm to nations such as ours.

If we create a stable and secure environment in Darfur for example, or other hot spots, we would in essence create security for Canada. Those obligations are part of Bill C-48 as well.

As Bill C-48 unfolded we know the New Democratic Party was very supportive, and I believe it still is. Some very good proposals came from the New Democratic Party. It is said that in order to be a good healer one must be a good listener. The Prime Minister and this Liberal government has been listening. Maybe not all the proposes are good but surely some good can come out of listening and in this case a lot of good has come out of it, good that has been applauded by Canadians. I know because I hear about it in my riding.

Once a week, as I have said, we have the opportunity to go back to our ridings to be with our families and talk to our constituents. We receive calls, emails and letters. People in a free and democratic society, like the one we have in Canada, have the right to express their views, whether we agree or disagree is beside the point. Through Bill C-48, the message is very simple. We have listened and we have responded in the way the vast majority of Canadians want.

Another element I omitted, which is very important, is that Bill C-48 would enhance small and medium sized enterprises. When we first assumed government after the election of October 1993, we said that the engine that drives the economy is the small and medium sized enterprises. The bill contains tax reforms with respect to small and medium sized enterprises.

Larger corporations have benefits coming down the road, I believe slotted for 2008. It is not like it has just disappeared and we are only looking at one segment. Let us not forget that the vast majority of jobs have been created through the small and medium sized enterprises, and the government in Bill C-48 does that as well.

Now that I have talked a little bit about Bill C-48, I want to get into what is happening here. We have a moral obligation, if I may put it that way, to bring to this honourable chamber the views, frustrations, call it whatever, from our constituents.

In the past several weeks I have heard comments like, “God, it's like kindergarten all over again in that chamber. They are a bunch of rowdies, a bunch of grown up kids”. It makes me so sad and it hurts me to hear these comments. However I have to accept them because that is what is happening here in this honourable chamber.

One example is what happened last week when a motion was put in the House. The Leader of the Opposition, for some odd reason, did not get his way and he just got up and walked out. This reminds me of the bully on the street who comes out to play hockey and when he does not get his way he takes his ball, his net and he leaves.

That is not how we build a nation nor is it how we find compromise. When the going gets tough, the tough get going and they sit in this chamber and debate. Members stand up in the House and express their views if they want their constituents to know exactly what is going on.

Over the past several weeks people have said that Parliament is not functioning. People want Bill C-43 and Bill C-48 to move forward. There are great ideas in these bills. Bill C-43, which I will not get into, what a budget. It has been continuously applauded throughout the country. There was not one area that was not covered. Even in a small way tax relief was covered.

The reason tax relief was not covered, if I may remind my hon. colleague, is that in the 2000 budget the largest tax relief in the history of our country was put forward; a five year program of $100 billion. Today, in 2005, we are into the fifth year of that five year program. I say that it does not make sense to add another tax relief budget when this country is in the fifth year of that five year program.

This government has produced not only balanced budgets and eliminated the deficit way in advance, but we have provided seven consecutive balanced budgets. This is unheard of in the history of our country. This government has provided surpluses never heard of before. These surpluses have given us the opportunity to reinvest in the country. For example, the Romanow report, a very good report, not only did we meet that report and its request, but we exceeded that report and the expectations.

We have the cities agenda, need I say more. Supposedly $400 million was allocated in the last budget and that amount has been jacked up to $600 million. Why? It is because more money was there.

What did we do with it? We have no deficit and the debt has been reduced faster than anyone ever expected. I believe in 1993 the debt to GDP ratio was at 71% or 72% and today we are below 50%. It is projected that in the next four or five years it will be at 25% or 26%. No country out there can say that. In the G-7 we are the most advanced country in terms of job growth, surpluses and balanced budgets and we have the fastest growing economy. We have invested wisely in the new economy. We have invested in research chairs as no other country has done before.

We have these so-called clusters of excellence situated throughout the country. Universities have benefited tremendously. We have been able not only to retain the best and the brightest, but we have been able to attract the best and the brightest.

I remember visiting the Hospital for Sick Children a couple of years ago when I was the parliamentary secretary to the minister of industry in relation to an investment that we made in cancer research for youth. A highly regarded specialist from England was there and I asked him why he came to Canada. He said that it was because the best was here. He said that the government had invested, that we were on the right track and that as a professional it was here that he could do better work.

We often do not talk about these stories but the time has come to talk about these stories and really call a spade a spade.

Today we find ourselves in the very unusual situation where we come with great interest in this House to debate. Yes, we will argue with the opposition. Yes, we will debate. Yes, the temperature gets a little bit high. The nature of this environment is that we yell and scream sometimes in frustration.

I apologize for that to Canadians and to my constituents, but we only experience what we do because we are in this chamber. When we have so-called immunity, we are protected in the House and we say what we want to say and get away with it. Who are we really hurting? We are hurting the average Canadian and that is the sad part about it.

Let me give one example, if I may. The other day I was watching a news program on CBC. The member for Calgary Centre-North was on the tube and he had the audacity again to say that his constituents wanted an election. He was being intellectually dishonest by saying that because he was on the tube a week before that when the House was in recess. He went home, supposedly, to gauge his constituents and to determine if they wanted an election. The first thing that was shown on television was the hon. member unpacking and setting up his campaign office. The reporter asked him what he was doing because he was supposedly there to gauge his constituents and to get a sense of what they wanted him to do.

We have often been told by members of the opposition, the new Conservative Party, that they will represent their constituents, and say and do what their constituents want them to do. The hon. member went home and opened up a campaign office. What did he do then? He went out on the street to canvass his constituents about the election and 9 out of 10 constituents told him, on television, that they did not want an election. They did not want another $350 million wasted for an election that is not necessary. The 10th constituent did not really care because he or she was probably turned off. The hon. member then came back to the chamber and said that his constituents wanted us to have an election. That is malarkey. I dare the Conservative Party to go back and look at exactly what happened that day.

I have to get back to the bill because there is important stuff here. The transport critic made a comment. He is a good friend of mine who worked very well on committee. Look what we have done on reducing rents at airports. We see that things are different and times have changed. We are trying to accommodate, we are trying to help out, and we are trying to make things work. That is the problem.

We have been trying to get to the bill for a long time. I have been trying to get on my feet to talk about the bill for a long time. What do opposition members do? They interrupt proceedings and shut the House down.

This reminds me of a saying that the future is always affected by the past. Let us go back in history for a moment on a bill like this and what happened? We had an unholy alliance before this one. We had Mr. Mulroney, who was in cahoots with the separatists to form government. What happened? We had the birth of the Reform Party to break up the country. We have now gone full cycle and the Reform came together and kicked out the Conservatives. It is now in bed with the Bloc Québécois and all of a sudden, the country simply is not working. We have been asking for weeks to put forth Bill C-48 and we cannot do it.

The bill wants to work. The budget has so many good things in it. I have talked to students who told me they want a good education because they deserve a good education.

I ask the opposition and all members in the House to do the right thing for the good of our youth, the environment, housing, cities, and for the good of the country. These investments make sense, especially when members agreed to support the budget bill, Bill C-43.

If they support Bill C-43, there is no reason why they cannot support Bill C-48, simply because Bill C-48 has what I alluded to a couple of minutes ago. If they come back and say they do not want to support Bill C-48, they are saying they are not supporting our youth, transportation and the environment. That is what they are saying.

Therefore, I move:

That this question be now put.