Budget Implementation Act, 2005

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

This bill was last introduced in the 38th Parliament, 1st Session, which ended in November 2005.

Sponsor

Ralph Goodale  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Committees of the HouseRoutine Proceedings

May 11th, 2005 / 4:40 p.m.
See context

Conservative

Stephen Harper Conservative Calgary Southwest, AB

Madam Speaker, within a dozen years, the governments of Jean Chrétien and his second in command have managed to undo everything that Wilfrid Laurier, Louis Saint-Laurent and Pierre Elliott Trudeau tried to accomplish to serve the cause of federalism in Quebec.

They can blame the big bad separatists or the big bad Conservatives, but the federal Liberals are the ones who tried to buy the conscience of Quebeckers with their own money. They are the ones who lied to the people of Quebec. They are the ones who circumvented the laws of Quebec and Canada. They are the ones who diverted the money of Quebeckers and all Canadians.

Secondly, as a consequence, because the government has been revealed in this way, it has now pursued a wasteful and fiscally irresponsible path by engaging in reckless spending and vote buying in a desperate attempt to keep itself alive.

Finally, and as yet another consequence, this government has been revealed as autocratic and undemocratic by throwing aside some of the most basic democratic principles that are essential to our parliamentary system. Let me give examples.

At this very moment I am debating a concurrence motion moved as a filibuster by the government on its own legislation. This is the same day that the Prime Minister tried to claim he wanted to have a vote on the budget. This is the same day that the House leader of the Bloc Québécois moved a motion to have that debate and that vote and the government turned it down.

We are not fooled. We want to see this motion, but I believe the government has no intention whatsoever of having any kind of vote on anything next week.

Just to give an example, we saw what happened yesterday and today. After a trip to Holland, all the party leaders agreed to pass through the House the veterans charter. We gave four-party consent. It was passed through all stages, but no sooner was it done here than the Liberal controlled and Liberal majority Senate found yet another way to delay it and hide behind veterans.

As the official opposition, we can no longer abide supporting a government and a governing party which have been shown to be corrupt, fiscally irresponsible and blatantly undemocratic. Therefore, I will be moving a motion which is again designed to express our lack of confidence in the government.

Before I come to this, I want to outline this case in some detail as to why the government must be defeated because of its manifest corruption, its fiscal irresponsibility and its undemocratic actions.

First, on the issue of its scandals, this budget debate and the recent dramatic events in the House are not occurring in a vacuum but in the context of a government which has brought upon itself the most serious corruption scandal in modern Canadian history.

We have known for some time that there were serious irregularities in the government's sponsorship program. An internal audit was released in 2000. There is a long story behind the delayed release of that audit for the 2000 election, but that audit release in 2000 did indicate that there were serious administrative problems in the program.

This was followed up on by the Auditor General's report on government advertising, released in February of last year, which confirmed that out of the $250 million sponsorship program, much of which was spent on activities of questionable value in the first place, more than $100 million in commissions went to five Liberal friendly advertising agencies with little or no evidence of work being performed for the contracts.

We all remember the famous case where Groupaction received $550,000 to submit a photocopy of a report identical to a report it had prepared the previous year.

Public anger and outrage over this blatant waste and mismanagement of taxpayers' money was no doubt a factor in last year's election and in part responsible for reducing this government to minority status.

But at the time of that election, while we knew that tens of millions of taxpayers' dollars had been wasted, we did not know where this money had gone. To be sure, there were rumours, but there was no proof. Now, thanks to the work of Judge Gomery, work, I should add, which was not allowed to begin before the previous election was called by the Prime Minister, and work, I submit, which would never have taken place if the Prime Minister had a majority today, thanks to his work, we have proof.

Canadians are coming to know the bitter truth: that millions of their hard earned taxpayers' dollars were spent on illegal donations to the Liberal Party for Liberal Party political purposes and it was done through a sophisticated network and scheme of money laundering.

In recent days, we have been viewing the revolting spectacle of Liberal witnesses before the Gomery commission describing how thick the envelopes of money they received in secret were.

While the rest of Canada is striving to earn an honest living, support their families and meet their obligations, including paying income tax, we can see these Liberal organizers and their friends trying to remember whether they received their dirty money in $20s or $100s.

The Gomery commission has become a bad gangster movie. The money in those envelopes, those $20s and $100s, is in fact our money. That money belongs to Canadian taxpayers, not to the Liberal Party of Canada.

Over the past few weeks we have heard sworn testimony, backed by documentary evidence, that money from the sponsorship program was paid to advertising agencies which in turn used that money to make both legal and illegal donations to the Liberal Party--and no doubt some of it was pocketed--but to also illegally pay for Liberal election organizers and to pay for Liberal campaign expenses ranging from signs to party videos.

Just last week, as one of a series of confessions, not baseless allegations, not baseless accusations, not even mere admissions, but confessions from senior members of the Liberal Party under sworn evidence, the former president of the Liberal Party of Canada in Quebec admitted that he received $300,000 in cash from Jacques Corriveau, a close personal friend of Jean Chrétien, who benefited from millions of dollars of little or no work contracts from the sponsorship program.

I heard somebody over there calling “order”. We have seen the tactics of some of the members in the last few days, not wanting to have this evidence on the record of the House of Commons, but we will read every bit of it into the record of this House of Commons.

That cash was used to pay for Liberal Party workers in opposition held ridings in direct violation of the Canada Elections Act. We have also heard from many of the recipients of that money, admitting that they received illegal contributions, and we have seen cashed cheques and bank statements confirming that illegal payments were made.

I remind the House that after the release of the Auditor General's report last year, and with an election in the offing, the Prime Minister and his Quebec lieutenant, now the Minister of Transport, promised that the Liberal Party would not campaign with this dirty money. They promised that every penny that had been illegally donated or diverted from the sponsorship program would be paid back in full, but now we are hearing a different story.

When only a few weeks ago an opposition motion was put forth calling on the government to put aside the money that was stolen, to put it into a blind trust, it was voted on in this House and every one of the Liberals stood and voted against that motion.

I remind the House that the motion was nonetheless adopted and that the government is duty bound to respect the decisions made by the House of Commons.

The Liberal Party fought the 1997 and 2000 elections with dirty money. This is a fact. Since the Liberals did not return any of the money in 2004, they fought the last election with dirty money, and now it looks, in violation of an order of this House, as though they are willing to fight a fourth straight election with money that has been stolen from the Canadian taxpayers.

These past few weeks, billions of dollars have been promised throughout Canada without any discussions taking place in Parliament. The Liberal strategy is clear: they tried to buy the last referendum, and now they want to buy the next election.

The government is not listening to Parliament nor to the people of Canada; it only understands the language of money.

This is unacceptable. The government must be held accountable for this behaviour. Most disturbingly, we have heard serious allegations--well, I will correct the wording--confessions from the former executive director of the Liberal Party of Canada in Quebec, again not a rogue operator as the Prime Minister implied, but the chief staff person for the party in the province of Quebec, that Liberal sleaze and patronage extended even to the selection of judges. He has gone on record saying that a member of the judicial advisory committee responsible for selecting judges for the province of Quebec was in the habit of calling him to find out how much money lawyers who are potential judicial candidates had contributed to the party.

These are among the most serious examples of partisan interference in judicial appointments that have ever been heard in this country.

The Liberals have undermined Canadians' confidence in our political system and even manipulated our judicial system.

The Liberal Party of Canada, like the Government of Canada, is a threat to Canadian democracy.

When this was raised in the House, the Minister of Justice said that he will hear no evil, see no evil, speak no evil. He is apparently not open to any investigation into this potential corruption of our judicial selection process. In fact the minister keeps claiming, in spite of the claims of his own party officials, that appointments are made strictly on the basis of merit.

I would point out that research by journalists and citizens has revealed that 60% of lawyers appointed to the bench in Quebec since 2000 made donations to the Liberal Party. It is frankly hard to take the Minister of Justice or the Prime Minister at their word when they say that politics has nothing to do with judicial appointments.

The essential facts about Liberal corruption are not in dispute. No one is disputing that money was diverted or stolen from the sponsorship program. No one is disputing that it was done by some Liberals. No one is disputing that at least some of that money ended up in the coffers of the Liberal Party or was used for Liberal partisan purposes.

In fact I would point out that the Prime Minister of Canada went on national television to address these allegations and he never once denied them in his speech to the Canadian people. Their only comeback on this as these facts accumulate is to urge the House not to rush to judgment, but as they say, let Judge Gomery do his work so that, in the Prime Minister's words in the address to the nation on television:

There is conflicting testimony; only the judge is in a position to determine the truth.... Only he can tell us what happened and who was responsible.

The government is saying, “I am currently under investigation, I am suspected of widespread corruption, so I have no time for an election”.

The real judge of the honesty, candour and competence of the government is the public. The people of Canada are ready to judge this government.

What we know when I referred to that remark of the Prime Minister in his televised speech is that in fact it is not true. The government inserted clause k into the terms of reference of the Gomery inquiry that prohibits Justice Gomery from reaching “any conclusion or recommendation regarding the civil or criminal liability of any person or organization”. The government is telling the public to wait until Judge Gomery determines who is responsible for this theft of taxpayers' money, knowing full well that it has prohibited Judge Gomery from making any such finding.

The Liberal request to let them stay in office until the affair is investigated would be akin to the executives of Enron asking that they be allowed to continue to manage the business while they are under investigation for fraud and embezzlement. It is simply untenable to carry on with business as usual when the police are knocking on the door.

Let me say, so that the Canadian people are reassured, Justice Gomery will complete his work. His work is to hear this testimony. He will complete it and he will complete it before the voters render a judgment on the government.

Even more disturbing than any of this is the government's attempt to portray itself as a victim. These acts were not committed by some shadowy rogue group of Liberals. We have testimony from the former executive director of the Liberal Party of Canada, Quebec, and the president of the Liberal Party of Canada, Quebec, testifying that they were part of a kickback scheme. This is no rogue operation. It is the entire apparatus of the federal Liberal Party in the province of Quebec.

The victim line is when the government hears confessions from its own senior officials that it benefited from stolen money, the first act of the Prime Minister is not to apologize or to take action, but to try and claim that the Liberal Party was somehow a victim.

When these officials come forward, the first act of Liberal counsel at the Gomery inquiry is not to get all of the evidence. It is to attack the people who are coming forward, to attack the whistleblowers, to attack their reputation, to undermine their evidence to discourage them from testifying.

This is proof, and I do not think we need any more proof, that the government will never get, will never hold accountable those among its own who are responsible for this affair. That is why it has no moral authority to govern this country. That is why we need a new government to do what Judge Gomery is not allowed to do by these Liberals, and that is, hold the Liberal Party accountable for its criminal activity.

The culture of corruption within the Liberal Party is evident, but equally disturbing is the fact that the Liberals are now prepared to put the finances of the country into jeopardy for their own short term partisan purposes. In a sense this should not surprise us. The crisis was caused by the Liberal Party spending millions of dollars in an attempt to bribe voters in the province of Quebec. Now that the strategy has backfired, they are attempting to get out of the crisis by spending billions of dollars in the rest of the country to make voters forget about the scandal.

Scandalous waste and reckless spending cannot be allowed to bury scandalous theft and corruption. In February our party in good faith decided not to bring the government down on its budget, not because we thought it was a perfect budget--we were already concerned about rapidly accelerating government spending--but we thought the budget had worthwhile measures we could support.

The original budget repeated a previous agreement that had not been tabled in the House to grant the provinces of Newfoundland and Labrador and Nova Scotia control over their offshore resource revenues under the Atlantic accord. It included a transfer of gas tax revenues to cities and communities to help pay for needed infrastructure. It included modest tax cuts for individuals by raising the basic personal exemptions and tax cuts for businesses that would have helped create jobs and improve competitiveness.

The Liberals say that they are still there. I say they should have been there a long time ago. All these are long-standing policies of this party. We have stuck with these policies long before this Prime Minister flip-flopped on them. We will stick with them now and we will bring them in when we are on that side of the House.

I wonder if the government really ever wanted this budget bill to pass. We now hear its strategy is to be defeated on the budget. What it did right off the bat was it roped the measures that we supported in with other measures including measures such as the CEPA amendments, Canadian Environmental Protection Act amendments, which were not even in the budget and which it knew this party could not support.

A far more serious and reckless blow to fiscal integrity was the new budget cooked up in a hotel room by Buzz Hargrove and the Leader of the NDP. It was then announced that the tax cuts necessary to create jobs and keep our business competitive with the United States would be eliminated. In their place we had $4.6 billion in new program spending on a grab bag of programs to be paid for out of mysterious reserve funds.

We now have before us a second budget bill. This budget bill has the innocuous title, Bill C-48, an act to authorize certain payments. What it in fact conceals is an unprecedented government slush fund that again allows the government to avoid parliamentary accountability for its spending programs.

Let me quote Don Drummond, one of the Prime Minister's former assistant deputy ministers when he was minister of finance, and how he has described Bill C-48. He said:

--for years government has wanted an instrument that would allow it to allocate spending without having to say what it's for. This act will do it.

Ironically, let me point out to my NDP friends that they have less reason to be pleased with this agreement than they thought. Bill C-43 is still on the government's agenda. The government has not removed any of the tax reductions it said it would remove. Bill C-48 does not actually set aside any money to be spent on priorities they had identified, like post-secondary education, housing and foreign aid. Instead it simply authorizes the government at its discretion to set aside reserves for these general priorities, but only after it has the final surplus figures for fiscal 2005-06, which will be in August 2006.

The bottom line is this bill will not even get money into the hands of groups and programs the NDP wants to support for another 18 months. When it does so, it will happen entirely at the discretion of the Liberal cabinet. The reality is it is the worst of both worlds. We have socialist spending delivered through Liberal undemocratic tactics and financial trickery.

Here is another scene from a bad film, which we are going to have to sit through: a secret meeting between the Liberals and the NDP in a Toronto hotel room in order to consummate the marriage of corruption and socialism and divvy up our money.

Perhaps even more concerning than this fiscally reckless plan is the fact that the Liberals continue to go around the country making announcements based on a flim-flam budget, the full details of which they still have not presented to this Parliament and on which they certainly do not have any approval.

In fact, over the past few weeks, since Jean Brault testified, which I am sure is a coincidence, and since the $4.6 billion agreement with the NDP, the government has announced $22 billion in spending initiatives. It is spending hundreds of thousands of taxpayer dollars based on an incomplete and unapproved budget. I will list the $22 billion worth of spending announcements.

The Liberals clap. They can explain it to the people who used to vote for them because of fiscal responsibility.

In our British parliamentary system there is perhaps no principle--

PrivilegeOral Question Period

May 11th, 2005 / 3:20 p.m.
See context

Bloc

Michel Gauthier Bloc Roberval, QC

Mr. Speaker, I wish to draw the attention of the House to a motion. I believe you would find consent for the following order:

That the proceedings on the motion for second reading and referral to the Standing Committee on Finance of Bill C-43 conclude at 4:30 p.m. this afternoon;

That all questions necessary to dispose of second reading of this bill be deemed put;

That a recorded division be deemed requested and deferred until 5:30 p.m. today;

That the proceedings on the motion for second reading and referral to the Standing Committee on Finance of Bill C-48 conclude at 5:29 p.m. this afternoon;

That all the questions necessary to dispose of second reading of this bill be deemed put;

That a recorded division be deemed requested and deferred until 5:30 p.m. today.

I therefore seek the consent—

An Act to Authorize the Minister of Finance to Make Certain PaymentsGovernment Orders

May 10th, 2005 / 5:05 p.m.
See context

Conservative

James Rajotte Conservative Edmonton—Leduc, AB

Mr. Speaker, I found the speech by my colleague across the way very interesting. Frankly, I find it just astonishing that the government members are actually justifying this budgetary process, this ad hoc budgetary process that has been put together. We have the budget introduced on February 23, full of all of their priorities, and we have the budgetary implementation bill, Bill C-43.

I would remind members of this House, because now they are criticizing the Conservative Party for not being a responsible opposition, that on the initial budget we abstained as a caucus because we felt that we should allow the budget to go through and then review the items item by item. In fact, even on Bill C-43 we had agreed that the budget implementation bill should go to committee. We asked that the CEPA amendments be removed. Our understanding was that the government was going to remove the CEPA amendments and allow it to go to committee and we would deal with it there.

There, hopefully, we would have taken on things like the Atlantic accord and we would have been able to implement them right away. On issues or items where we disagree, we could have disagreed. That is the way a responsible opposition party works.

What happened is that then the Prime Minister got together with the leader of the NDP, and now here we have the budget bill, here we have Bill C-43 and here we have $4.6 billion in spending on two sheets of paper. That is $4.6 billion in spending, with the finance minister completely reversing his earlier position, something unprecedented in the history of this country. It is so unprecedented that I would like to quote the finance minister's warning back to him. This is from the Saskatoon StarPhoenix . The finance minister himself stated:

You can't go on stripping away piece by piece by piece of the budget....

You can't, after the fact, begin to cherry pick: “We'll throw that out and we'll put that in, we'll stir this around and mix it all up again”. That's not the way you maintain a coherent fiscal framework.

If you engage in that exercise, it is an absolute, sure formula for the creation of a deficit.

The finance minister and the Prime Minister did exactly what the finance minister said he was not going to do on this. Somehow the Liberal members are standing up and justifying this in the face of what their own finance minister said. The fact is that the finance minister, after this embarrassment of a budgetary process, should have to step down.

I would also caution the NDP members, because they signed this agreement. The leader of the NDP signed this agreement with the Prime Minister. Today our leader asked about the corporate tax cuts that are supposed to be removed. I would like to ask the members of the NDP to watch very carefully the responses from the finance minister and the Prime Minister about how “in the future” they are going to be removed.

I would also like the NDP members to be sure about any of these supposed spending increases they have asked for in this coalition. I do not think they are going to get them, because the finance minister has put in a hedge that it will not fall below a certain number before these spending increases take effect. Frankly, the NDP should talk to the members of the Liberal Party and talk to the finance minister and get it on paper, because I do not think that commitment is worth what it is written on.

Beyond the whole ad hoc process here, here is what this has done. Frankly, as finance minister, the Prime Minister, and I will even admit this, actually had somewhat of a reputation in the business community as someone who seemed to be a prudent fiscal planner. He had two year rolling projections.

An Act to Authorize the Minister of Finance to Make Certain PaymentsGovernment Orders

May 10th, 2005 / 4:15 p.m.
See context

Conservative

Bill Casey Conservative North Nova, NS

Mr. Speaker, I have great respect for the hon. minister too. However, having said that, let me note that he said this money is not to buy the NDP's votes. Why was it not in Bill C-43? Why did it only crop up in Bill C-48 when the government needed the 19 votes so it could get its budget passed? Two weeks ago, it was not there. It is there now just because the Liberals need to buy NDP votes.

As for the Conservative record, that is a good point. I wish we had had more success than we did when we were in power, but there is not an expert or an economist in the country who does not give the credit for balancing the budget to the establishment of the GST and free trade. I challenge the minister to stand up and tell us about one innovative or imaginative policy, such as the GST or free trade, that the Liberals came up with and that helped them balance the budget. They balanced the budget on the backs of Brian Mulroney's accomplishments.

An Act to Authorize the Minister of Finance to Make Certain PaymentsGovernment Orders

May 10th, 2005 / 4 p.m.
See context

Conservative

Bill Casey Conservative North Nova, NS

Mr. Speaker, I am certainly pleased to speak to Bill C-48. Since the last speaker quoted from the Globe and Mail , I think it is only fair that I quote from the National Post .

One headline reads “Spending spree continues”, and another reads, “Ottawa doling out $1.24 billion per day”. It states:

The money being doled out works out to $1.24-billion a day, including $5.75-billion the Liberals gave to Ontario.... Other provinces are now salivating over the prospects of inking their own version of the Ontario deal....

It is hard to fathom what is going on and how fast the Liberals are spending money. I love the name of the bill. Bill C-48 is an act to authorize the Minister of Finance to make certain payments. I do not know how it can be restricted to certain because it is almost any payment. They will do anything right now to buy votes. The National Post has it up to 122 different grants and programs, totalling $22 billion in three weeks to buy votes.

I want to point out to citizens that Bill C-48 is an act to put the deal on paper that the NDP made with the Liberals. The projected cost is $4.6 billion, that is $4.6 thousand million so the Liberals can buy a few months and get through the vote on the budget. The NDP votes are now worth $240 million each to get the Liberals through the budget. If that is good management, common sense and good administration I will eat my shirt.

I can just imagine how the bureaucrats in the Department of Finance must be operating. They must have whiplash. No, we do not have tax cuts. Yes, we have tax cuts. No, we do not have tax cuts. How do they keep up with what is going on? We are spending $1 billion here and $100 million there and $22 billion here. I do not know how the people in the Department of Finance can operate. It must be incredible.

The one thing for sure is that if the Liberals can open a drawer and find $4.6 billion to pay for the 19 votes that the NDP gave them, there is too much money in the drawer. That is simple evidence that we are being overtaxed. If they can, with the snap of a finger, find $4.6 billion, something is wrong with the system. The something wrong is that we are overtaxed.

We as members of Parliament have to fight for infrastructure in our ridings to save our institutions, like the Nappan experimental farm which has been in Nappan, Nova Scotia since before Confederation. At a time when farmers need all the help they can get in research and development, new products, training, all kinds of things, the government announces in the budget that it is going to close the Nappan experimental farm. It has unique soils, terrains and products. Now it is talking about closing the Nappan experimental farm because it does not have the money but then it turns around and pays $4.6 billion to buy the 19 votes of the NDP. It is absolutely incredible and makes our job of convincing people more difficult.

Even a little thing like a light bulb in a lighthouse in Wallace Harbour, a lighthouse that saves lives, we had to fight to get the light bulb changed in the lighthouse of all things. However when the Liberals need the 19 NDP votes they do not seem to have a problem finding $4.6 billion in the drawer. When we needed a few thousand dollars for a light bulb for a lighthouse to save lives, it was not available. We had to fight to get it and we did get it, I am very pleased to say.

The Atlantic accord is another issue that should be dealt with. The Atlantic accord is a very important deal for Nova Scotia and Newfoundland and Labrador. The government will not pull it out of Bill C-43 and make it a separate deal. It will do it for tax cuts but not for Atlantic Canada. It is holding Atlantic Canada hostage because it wants to force all kinds of things down the throats of Atlantic Canadians to force them to agree to these things and only then will it agree to the Atlantic accord.

Last year's budget implementation act is going through the Senate today, a year late. I believe it was tabled on March 23, 2004, and it is only going through the Senate today.

This is the same bill where the Atlantic accord is stuck now. It is on pages 57 and 58 of Bill C-43 instead of being a stand alone bill that we could pass in the House to allow Nova Scotia and Newfoundland and Labrador to move forward. We cannot do that because the Liberals want to hold us hostage and make sure they ram all these other things through without us even considering them.

We cannot do that. It is our job to hold the government accountable. It is our job to ask questions about all these other things, like the foundations that are funded under this program, student loans, employment insurance, income tax. However the government says that we are not allowed to ask questions on those issues. It says that we should just close our eyes, grit our teeth and say yes to the budget so we can have the Atlantic accord. It is not fair and we cannot do it.

The cost of the election is something that comes up from the Liberal side. The Liberals say that they cannot afford an election. They say that it might cost $230 million to $250 million to run an election. With each NDP vote costing $240 million, I do not see how they can say $230 million is too much to charge for an election. Two hundred and thirty million dollars for an election is a lot of money but every NDP vote that they bought cost $240 million, which is more than a whole federal election.

If we are a little upset about Bill C-48, those are some of the reasons.

I wish that the Liberals would bring in the things that we have asked for, and specifically on the Atlantic accord, to pull it out of the bill. The Minister of Finance says that we cannot cherry-pick Bill C-43, that we cannot pull out what we want. However they can pull it out if they need to. They can pull the tax cuts out to satisfy the NDP and then create a whole independent stand alone bill, which is exactly what we have been asking them to do for the Atlantic accord. They can do it for themselves and the NDP but they will not do it for Atlantic Canada.

I hope they will reconsider that and pull the Atlantic accord out of Bill C-43, make it a stand alone bill and we commit to passing it in one day.

The BudgetOral Question Period

May 10th, 2005 / 2:50 p.m.
See context

Conservative

Bill Casey Conservative North Nova, NS

Mr. Speaker, yes, Bill C-43 is before the House today but, as a coincidence, last year's budget implementation bill may pass through the Senate today, a year later.

If the Prime Minister can take the tax cuts out of the budget with the snap of a finger, he can do the same thing for the Atlantic accord and save a year for Nova Scotia and Newfoundland and Labrador. Will he do that and make the same agreement on that bill?

The BudgetOral Question Period

May 10th, 2005 / 2:50 p.m.
See context

Wascana Saskatchewan

Liberal

Ralph Goodale LiberalMinister of Finance

Mr. Speaker, the legislation implementing the Atlantic accords is before the House already. It is in Bill C-43.

I ask the hon. gentleman to consider, as Atlantic Canadian governments have considered, the danger of actually removing the Atlantic accords from Bill C-43 and leaving them absolute hostage to the Bloc Québécois.

The EconomyOral Question Period

May 10th, 2005 / 2:45 p.m.
See context

Wascana Saskatchewan

Liberal

Ralph Goodale LiberalMinister of Finance

No, Mr. Speaker, I most certainly will not. The fact is the budget, in the form of Bill C-43, was proceeding very nicely through the House of Commons until a certain event on April 21 when that gentleman's party reversed itself 180 degrees, flip-flopped from support to opposition and joined with the separatist party to try to defeat both the government and the budget.

We were elected in this minority Parliament to make this Parliament work. Therefore we found another configuration that would allow the budget and fiscal responsibility a decent chance to survive.

The BudgetOral Question Period

May 10th, 2005 / 2:15 p.m.
See context

Wascana Saskatchewan

Liberal

Ralph Goodale LiberalMinister of Finance

Mr. Speaker, we have indicated that we are anxious to move forward with the tax arrangements that are contained in Bill C-43. It is clear that if those measures were put to the House now the bill would not succeed. Therefore, there are two of those measures which we propose in the appropriate way to put in a separate piece of legislation.

An Act to Authorize the Minister of Finance to Make Certain PaymentsGovernment Orders

May 10th, 2005 / 1:20 p.m.
See context

NDP

Judy Wasylycia-Leis NDP Winnipeg North, MB

Absolutely, that is fantasyland.

The member should talk to the Manitoba Child Care Association, which has been leading this fight for more than 10 years, and probably for 20 years, trying to get a non-profit, publicly administered, quality child care system from one end of this country to the other.

Finally, let me calm down a bit to say that this is an important issue, just as education, housing and support for environmental projects are important to Canadians. All of this will be lost unless members over there can get their heads around supporting Bill C-48, which is the mechanism for accessing some surplus dollars to meet the priority needs of Canadians, and Bill C-43, which provides money for child care on a very sensible, reasonable basis that is clearly in tune with Canadian families.

All of that will be lost if those members decide to keep obstructing the House in the interests of their political ambition and their search for power as they turn their backs on the Canadians they claim to represent.

An Act to Authorize the Minister of Finance to Make Certain PaymentsGovernment Orders

May 10th, 2005 / 11:50 a.m.
See context

Conservative

Charlie Penson Conservative Peace River, AB

Mr. Speaker, I will be sharing my time with my colleague from Cariboo—Prince George.

This is a very dismal performance by the government. We are debating Bill C-48 but one has to wonder why. This seems to be the third Liberal budget since the February 2005 budget was introduced. Many people call it the NDP budget because, quite frankly, the two parties together do not have a majority in the House. I say that it is an illegitimate budget.

I do not think most Canadians will be amused with what the Liberals have been doing. They have been boycotting and filibustering their own legislation to not allow these bills to be debated and voted on in the House of Commons because they have become so desperate to hang on to power. They are hanging by their fingernails. This is a pathetic performance by a dying regime. We saw it in eastern Europe.

I have been in the House almost 12 years, like some of my colleagues, and this is the worst performance I have ever seen. I see desperate people making illegitimate agreements just to hang on to power. They are not respecting the parliamentary democracy we have in this country that at some time, and the Liberals do not seem to get this, maybe they will not be in power. They cannot conceive of that idea somehow so they will cut any deal and sign anything to hang on to power.

The budget was delivered on February 23 in which the Liberals announced $42 billion in new spending. They went back and brought the numbers up for the 2004-05 fiscal year. They said that the surplus would be $3 billion. Of course we snookered them by hiring our own fiscal forecasters at the finance committee who, just six weeks later, said that the Liberals were off and that the surplus was double that. It was $6 billion. For this fiscal year 2005-06 the Liberals have estimated a $4 billion surplus. The fiscal forecasters say that it will be $8 billion, only six weeks later.

The unplanned surplus that the parliamentary secretary talked about, I do not think so. We have seen this crass practice in the last seven years of lowballing surpluses to build up huge funds that they can use in election campaigns. That is really what this is.

Next came Bill C-43, the budget implementation bill. What did the Liberals do? They snuck in a couple of amendments. One was the Kyoto amendment, which all of a sudden was tagged on to the budget. Just a few weeks earlier it was not there but they snuck it in to put greenhouse gases, carbon dioxide in particular, in the noxious gas category to allow them to tax it heavily. Of course we cannot support that. We want to see it hived off and we will try to do that in committee, if we ever get there.

Then of course today there is the NDP budget, which is Bill C-48. What has happened since budget day itself? There has been an almost $8 billion turnaround. New spending plus the cuts in the taxes that were proposed under personal tax cuts and the corporate tax side has meant that essentially there is an $8 billion difference.

What do we have here? We have a desperate government trying to buy itself another election. It is in a massive spending spree. It is trying to bury Gomery by taking away people's attention from Gomery with this budget.

Let us look at what today's newspapers are saying. The headline in the Globe and Mail on page A4 states, “Liberal spending blitz hits $19.5-billion” . Steven Chase says:

--Ottawa's minority Liberal government has grown so big it now amounts to nearly half the spending unveiled in the February budget.

It goes on to say, “the 2005 budget was only two months old when the government began piling on extra spending”.

A headline in the National Post today reads,“Spending spree continues”.

Another article reads:

Federal government spending announcements have hit $22.3 [billion] since [the Prime Minister] went on television on April 21 to apologize for the Liberal sponsorship scandal.

The BudgetOral Question Period

May 9th, 2005 / 2:30 p.m.
See context

Wascana Saskatchewan

Liberal

Ralph Goodale LiberalMinister of Finance

Mr. Speaker, I would point out that Bill C-43, the budget implementation bill introduced after the budget speech on February 23, is a piece of legislation that was proceeding rather well through the House of Commons, until the Conservative opposition did a 180 degree flip-flop. The net result was that the government had to look for other configurations of support in the House of Commons.

Since that flip-flop on the part of the Conservative Party threatens to deprive Canadians of the great advantages contained in this budget, I would again ask the hon. member, when will he resign?

Bankruptcy and Insolvency ActAdjournment Proceedings

May 5th, 2005 / 6:50 p.m.
See context

Scarborough—Guildwood Ontario

Liberal

John McKay LiberalParliamentary Secretary to the Minister of Finance

Mr. Speaker, I would be happy to answer the hon. member's question. He put his question on March 7 as to when the legislation would be tabled. We answered on March 24 with the tabling of Bill C-43 the budget implementation bill. That was the complete and full answer to his question of March 7. He apparently does not like to take “yes” for a answer.

Bill C-43 contains a whole number of things. The hon. member is right. It is a omnibus bill. It contains provisions for child care. It contains provisions for the new deal for communities. It contains payments to Saskatchewan for the operation of the equalization program and for payments to support British Columbia in dealing with the mountain pine beetle infestation. The government cannot make these payments until Bill C-43 passes.

Last year's budget provided some examples of additional measures for provinces. I would argue with the hon. member. I do not know why one priority is a greater priority than any other priority. All those priorities I just mentioned are of great significance to particular people in particular areas as is his priority.

Last year's budget did the same thing. We had some example of additional measures to the provinces, which were again payments to Saskatchewan for the operation of Crown lease base in equalization, payments for the implement of the equalization renewal and payments for the $400 million made available to provinces and territories in support of the national immunization strategy and public health capacity. Again, why is one priority greater than the other priority? The way the government handles these things is through an omnibus bill.

I will briefly review what is in the offshore accords. It allows Newfoundland and Labrador and Nova Scotia to ensure that they retain 100% of their respective offshore resource revenues and equalization payments come on top of that. There were quite a number of months of discussion and on February 14, I do not think there is any significance to be attributed to that date, the Government of Canada reached agreements with those provinces.

First, the agreements provided 100% protection from equalization reduction or clawbacks for eight years as long as the provinces received equalization payments.

Second, an upfront payment of $830 million for Nova Scotia and $2 billion for Newfoundland and Labrador to provide the provinces with immediate flexibility to address their unique fiscal challenges.

Third, these agreements provide for a further eight year extension as long as the province receives equalization in 2010-11 or 2011-12, and that its per capita net debt has not become lower than that of at least four other provinces.

This is a unique window of opportunity and exceptional treatment for those two provinces. The uniqueness of this deal is because they face unique challenges. Newfoundland and Labrador and Nova Scotia have the highest net debt of all provinces as a percentage of GDP. In the case of Nova Scotia, 43%. In the case of Newfoundland and Labrador, 63%.

Newfoundland and Labrador in particular has an unemployment rate of 14.9%. Therefore, the government felt that those unique challenges required specific response and that specific response was given in Bill C-43.

The hon. member is going to complain that the bill is not moving forward. The reason the bill is not moving forward, he should look in the mirror and while he does so, he should take the mirror over to his leader.

Business of the HouseOral Question Period

May 5th, 2005 / 3 p.m.
See context

Hamilton East—Stoney Creek Ontario

Liberal

Tony Valeri LiberalLeader of the Government in the House of Commons

Mr. Speaker, for the rest of today, tomorrow and early next week the order of business will be the consideration of the Senate amendments to Bill C-12, the quarantine legislation; followed by third readings of Bill C-9 respecting economic development in Quebec; Bill C-23, the human resources bill; Bill C-22, the social development bill; and Bill C-26, the border services bill.

We would then consider second reading of Bill C-45, the veterans bill; and then Bill S-18, the census bill.

Tomorrow the government will introduce a companion bill to the budget implementation bill. We hope to debate second reading of this bill by Tuesday or Wednesday of next week.

We will then also resume consideration of Bill C-43 which is the budget implementation bill.

To assist members in their planning as well, I wish to inform the House that on the evening of May 18 the House will go into a committee of the whole on the citizenship and immigration estimates, and on the evening of May 31 on the social development estimates.

My hon. colleague across the way asked about opposition days. As the rules provide and call for, six opposition days are required before the end of June. Certainly our focus will be on moving the budget implementation bill forward. I would expect that we would do that.

As far as courage, I am not sure I see very much along the way certainly across the floor when in fact we have people on this side of the House who are prepared on behalf of Canadians to ensure that this Parliament works, but I see no evidence of that from my hon. colleagues across the way.

The BudgetOral Question Period

May 3rd, 2005 / 2:20 p.m.
See context

Liberal

Ralph Goodale Liberal Wascana, SK

Mr. Speaker, the budget on February 23 included a number of very important tax measures. Those are embodied to the large part in Bill C-43. The vast majority of those remain fully engaged in Bill C-43. There are two measures that will be put into a separate piece of legislation and voted upon separately.

The fact of the matter is we intend to proceed with the tax relief as and when this House is prepared to support it. That was moving on quite well until 10 days ago, until the Leader of the Opposition--