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.

Extension of Sitting Period

[Rahim Jaffer, Conservative, Edmonton Strathcona, AB]

Mr. Speaker, I would like to congratulate our hon. House leader of the opposition who did a magnificent job yesterday in addressing the motion to extend the hours of the House. He touched on an incredible vast amount of points that were pertinent to what is happening in the House and what has been happening over the course of the last few months, especially leading up to the fact that we have to deal with such emotion in the dying hours of Parliament. I think that was his language, as well.

We could have been dealing with these bills earlier if the government had its vision together, if it knew what it was doing. I think the House leader clarified that during his brilliant address yesterday in the House.

The government argues that we have to pass the budget, we have to pass this legislation. In the end, the calendar was not as full, it could have been dealt with a few weeks earlier, but now we are extending Parliament and are costing Canadians a lot more in the end. If in fact we were following the normal schedule, we could have been back in our ridings doing the work that my colleague so adequately pointed out we should be doing under normal operations while functioning as members of Parliament. We could be spending time in our ridings serving our constituents and being at their events. Instead, we are dealing with a motion to take us even further away from our responsibilities in our constituencies when we all know full well in this House that it is a very important part of our jobs.

I would ask my colleague, the opposition House leader, where exactly are we going in the next while? Could he elaborate on the fact that if we had the opportunity to serve our constituents in our riding, would that not be of more value to Canadians?

He touched on that yesterday. I would like to hear a little bit more and maybe he could address the fact that we have already passed Bill C-43 and we are learning today that the Liberal majority in the Senate is holding up that particular bill. The government has argued so strongly that the bill had to pass. It wants to pass Bill C-48 and that is why there is an attempt to extend this sitting. Why is there this hypocrisy now in the Senate where the Liberals are holding it up? Does it not make this whole process irrelevant? I would like to hear his opinion on that.

[Tony Valeri, Liberal, Hamilton East—Stoney Creek, ON]

Mr. Speaker, the only thing I can say is that I would hope the Conservative senators along the way would show the same cooperation with respect to Bill C-48 and Bill C-38 as they seem to be showing with respect to Bill C-43.

I am under no illusions. I would expect that once Bill C-48 and Bill C-38 leave this place, with Bill C-43 already in the Senate, the Senate will do everything possible to pass all of the legislation that has gone to the Senate in order to give Canadians what they are hoping for, what this Parliament deserves, and that is additional funding for transit, additional funding for the Atlantic provinces, more money for the environment and more money for post-secondary education.

I can only say this. I hope that while the hon. member is here with catcalls he would take the time to leave this place, pick up the phone and ask his Conservative senators to cooperate on Bill C-48 and Bill C-38 as he has indicated they are prepared to cooperate on Bill C-43.

[Dick Harris, Conservative, Cariboo—Prince George, BC]

Mr. Speaker, Bill C-43 has passed through this House and is in the Senate right now at the finance committee. The Conservative senators want to expedite the bill and get it through so the government can carry on with business. However, the Liberal senators have stalled the clause by clause on it. They are holding up the Bill C-43 royal assent passage, I suspect at the direction of the House leader or the Prime Minister.

I would ask the government House leader why he and his government are using Bill C-43 as a ransom to get Bill C-48 and Bill C-38 through. The Liberal senators have said that they will deal with Bill C-43 next week when Bills C-38 and C-48 have been passed. Why this sneaky, sleazy manoeuvring in the Senate, using their Liberal senators to hold up the 2005-06 Liberal budget just so they can get the others, and holding up the Atlantic accord as well? I would like the hon. government House leader to explain that.

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

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Speaker, I appreciate the member's question. I realize I did make a statement during my presentation which was inaccurate. It is very confusing when there are two or three budgets. One kind of forgets which is which.

The member asked how it was that voting for Bill C-43 would be voting for Bill C-38. I meant to say, and it was an error on my part, that voting for Bill C-48, which the Liberal members across the floor did at second reading, is like voting for Bill C-38. That is what I meant to say. It is not that complicated for the member to figure out.

If any one of them had voted against Bill C-48 at second reading, Bill C-38 would have been killed. We would have been in an election and we would have a Conservative government, which would mean the end of the same sex marriage bill. That is what I meant to say. If I was not clear on that or if I made an error, I appreciate the opportunity to correct it.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, I found it difficult to follow the very circular argumentation of the member and his colleague, the member for Port Moody—Westwood—Port Coquitlam who said, “Wait, it will make sense eventually”.

Unfortunately, I waited until the end and it never made sense. It never made sense that the hon. member was questioning his colleagues when he said that voting for Bill C-43 was akin to voting for Bill C-38, which means that not only was he condemning Liberal members of the House but he was also condemning his own colleagues who voted for Bill C-43. However I should say that at least that time they voted because in a previous manifestation of the very same bill, with the $4.6 billion in tax cuts, Conservative members cashed their pay cheques, did not show up for work and did not bother to vote.

Despite all those circular arguments, what I found most surprising about the member's presentation was when he talked about children. We know that 1.1 million children are living in poverty and that housing programs need to address that but he ignores that. It is in Bill C-48 and I hope he will read the bill.

We know there is a crisis in post-secondary education and training. The NDP's better balanced bill deals with that in investing more money in education and lowering tuition fees.

We have invested in the environment. It is our children in communities across the country who will benefit from the additional moneys put into the environment to make a better environment. That is the NDP's better balanced budget bill.

What about the families of workers, let alone children internationally? We know we need to put money into international development to support those children living in poverty around the world.

I guess it is not surprising because when we see the Conservative Party's past, we have seen bloated deficits. Last year it had the most expensive political platform in Canadian history, $86 billion, and that was even before they included the HMCS Mulroney, the aircraft carrier, for which we were never given a budget estimate.

Given the member's circular arguments, I would like to understand his opinion on his leader's statement this week that it is okay to bribe or to offer bribes but that it is not okay to accept them. How does that member square that circle that it is okay to offer bribes but not okay to accept them?

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Speaker, you know they are well tied together.

It is not only the member for Mississauga South who should be ashamed of himself. It is also the member for Huron—Bruce and there are many others over there who claim they want to defeat Bill C-38. There is no free vote on Bill C-38. The cabinet has been ordered to vote in favour of it. Those members know the only way to kill Bill C-38 was to vote against Bill C-43, which was a tied vote. Mr. Speaker, you yourself had to stand to break the tie to pass that bill.

If any one of them had had the strength and the gumption to stand up and really support their constituents against Bill C-38 and to throw away the same sex marriage bill, if any one of them had had the guts to do that, they could have done it. They chose not to. But they have one more chance. When we vote on another confidence bill, Bill C-48, they will have one last chance to kill Bill C-38, the same sex marriage bill. If they do not do it, their constituents will know without a doubt that they are not sincere in any way about standing up for their constituents on Bill C-38, the same sex marriage bill.

I wanted to mention that. It is important that their constituents know that. Those members are not willing to take a stand.

I will get back to Bill C-48.

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Speaker, I feel it is my duty to speak to Bill C-48, the NDP budget bill tonight. It is not something that I am happy to do or delighted to be speaking on, but I have an obligation to my constituents and to the country to do that.

Picture this scenario at the no-tell motel in Toronto. In the no-tell motel there is the Prime Minister of Canada, Buzz Hargrove, the big union leader, and the leader of the New Democratic Party together in bed. The Liberal finance minister from Regina was not allowed to be there. The Prime Minister pushed him off into a side suite, and closed the door, like a little boy who is not allowed to see what is going on in the room where the action is. These three individuals decided that they were going to cook up a secret, backroom deal and that is what they did.

Think about these three individuals. What is the Prime Minister's big agenda? The Prime Minister's main agenda is to put in place same sex marriage, legalize prostitution and legalize marijuana. This is the same Prime Minister who believes that government can spend billions of dollars to look after our kids better than we can.

Then there is Buzz Hargrove, the big union leader. We know about him and I will not say anything more about him. Then there is the leader of the New Democratic Party, apparently the new finance minister from what I can tell, who is certainly one of the main authors of Bill C-48. What is his agenda? His agenda is to put in place same sex marriage, legalize prostitution and legalize marijuana. He fully supports spending billions of dollars, so that government can look after our kids better than we can.

Picture the three of them in bed in the no-tell motel cooking up this deal. This is not a sleazy joint. I will give ten to one odds that this hotel room was paid for by the taxpayers. But this deal is not a private business deal. This is a deal that involves $4.5 billion of taxpayers' money. This is money that belongs to our children, our parents, our grandparents and young people striving to move ahead a little bit. That is $4.5 billion of hard earned tax money they are playing this game with, whatever the game is, and I do not even want to think about it. It is scary.

They brought this deal back to Ottawa, but not under the normal budget process. We all know that with Bill C-43, the real budget, there was a process. It was not perfect but there was some consultation. There was input from the opposition parties with Bill C-43, which was actually put in place by the former finance minister from Regina. They tabled the budget in the House of Commons and the members are asking how we voted on it.

In fact, we were not satisfied with Bill C-43, but the Conservative Party took a responsible position. We said that we do not like the deal, but we are not willing to bring down the government on the deal. The people elected us as the official opposition in a minority Liberal government and we were going to work together as much as we could. We abstained from voting on Bill C-43 the first time because we did not want to support that budget.

I have been in the House for almost 12 years now and whenever we support any initiative of the government, even if that support is not wholehearted but we think there is more good in there than that which is not good, the Liberals throw it back in our faces. We do not want to support a deal until we think it is something we will not be embarrassed about in the future. That is why we abstained on second reading of Bill C-43.

Then our great finance critic from Medicine Hat, Alberta, worked with his colleagues at committee and brought forward major amendments to Bill C-43, the budget bill. That is the budget bill that was put together by the former finance minister, the member for Wascana. He has been replaced now by the leader of the New Democratic Party, who apparently now is the new finance minister because he was the one who was in bed with the Prime Minister and Buzz Hargrove and cooked up this secret deal involving not their own money but $4.5 billion of taxpayers' money. That is the way it happened.

Once Bill C-43 had been amended so it was appropriate, what did we do as a responsible political party in a minority government? We supported it. We supported it at third reading and that budget bill has passed. There were things in that bill that we wholeheartedly supported like the Atlantic accord. In fact, that was our initiative from the start, so of course we supported that. It was our deal.

There are other things too. There was some talk of tax cuts, not a great deal, something like $16 per Canadian taxpayer per year. It was pretty pathetic but at least it was a move in the right direction, unlike the deal in the 2000 budget, the $100 billion tax reduction. I encourage everyone at home to take their paycheques from 1999 and look at the deductions from payroll, then take their paycheques from 2004 and look at the deductions from payroll.

I encourage all Canadians to tell me what my constituents already have, and that is that there has been no tax reduction. The deductions from their paycheques are at least as big now as they were before the Prime Minister supposedly cut $100 billion in taxes. Those kinds of tax cuts nobody needs.

On the one hand they may cut, but they take it with the other hand. In fact, through all of this, and the wonderful government that the members from the Liberal Party are talking about which is not a wonderful government but that is what they claim, we find that Canadians are no better off than they were 12 years ago. They are no better off than they were in 1993 when the government took office. The standard of living for Canadians has not improved one bit through all of these economic times.

That leads me to an issue that the Liberals talk about often. They say they are running a surplus. Are they not great? They say they are handling Canadian taxpayers' money wonderfully because they are running surpluses every year. Let us talk about those surpluses. What does that really mean?

It certainly means they are running a balanced budget, so from that point of view it is better than running deficits, but is that really a good thing? Does running surpluses every year mean things are good for Canadians? No, in fact, the standard of living has not increased in 12 years.

It is great for the federal government because it is taking so much in taxes and increasing spending at such a rapid rate that in spite of the increased tax take every year, Canadians are no better off, yet more money is coming from the pockets of Canadians taxpayers and going into the federal government than ever before, by a long shot. That is good for the federal government, and it can say it is running surpluses, but it is bad for taxpayers.

A surplus really is overtaxation. The government increased spending by more than 10% in Bill C-43, a budget bill which we did not happily support but there was enough good in it that we thought we should. That was before the leader of the NDP, along with the Prime Minister and Buzz Hargrove, cooked up this secret deal behind closed doors in a no-tell motel. They added $4.5 billion to their spending and those are hard-earned tax dollars.

I want to talk about what that really means, but before I do I want to talk about one more thing. The leader of the New Democratic Party and the leader of the Liberals support things like legalizing marijuana and prostitution, and putting in place same sex marriage. They cooked up this deal and I want to talk a bit more about that.

The government has said that it wants to pass two pieces of legislation before the summer break. One is Bill C-48, this NDP budget bill. The other is Bill C-38, the same sex marriage bill.

About 70% of Canadians do not support the same sex marriage bill. There are also many Liberal members who do not support the bill. The member for Mississauga South claims he is going to fight for his constituents and Canadians against same sex marriage. The member for Pickering--Scarborough East claims he is going to fight on behalf of his constituents and Canadians against same sex marriage. The member for Scarborough--Guildwood claims he is going to fight hard for his constituents against Bill C-38. Those members had a real opportunity, maybe two, the second being the vote on Bill C-48, the NDP budget bill. That is definitely a confidence vote.

Those members had two chances to kill Bill C-38. The first was on Bill C-43, the budget bill. Did they take a stand and vote for their constituents against same sex marriage by defeating that bill? No, they did not. Those members should be ashamed of that. They put on a big front. They claimed they were going to fight it on behalf of their constituents.

[Paul Szabo, Liberal, Mississauga South, ON]

1989 was one of the best years in a very long time.

If we have a $500 billion debt and exceptional economic performance, why would we not pay down some of the debt when times are good? If we choose not to pay down some of the national debt when times are good, what realistic opportunity do we think there would be to pay down debt when times are not good? It is unbelievable. The debt to GDP ratio was 40% some odd and peaked at 68%. It is now down to 38%.

If we get our fiscal house in order, it means a lot of things can happen. The fiscal dividends, the savings on interest because we have paid down debt, is an important annual annuity which provides the cash flow necessary to fund programs.

Let me recap. We have a budget that was introduced in Bill C-43. It passed in this place with the support of the Conservatives. They had absolutely no objections to any of the four key items. They never spoke once about why we should not agree to those four items or why they were inappropriate. They also never talked about the cost being too much. The knew the incremental cost was just 1% of spending.

What was the real issue? The real issue for the Conservatives was not the content, substance and cost in Bill C-43. They wanted the government to fall. They wanted to force an election. That is the only reason we have been doing this. It could not be any other way. Why would they vote for and pass Bill C-43, the main budget, and defeat a minor item to throw us into an election, which effectively wipes out the main budget anyway? It makes no sense.

In the meantime what happened was the reality of what Canadians wanted from us was becoming clear. It was becoming clear that Canadians wanted us to work hard, to do everything possible to make the minority government work because they did not want an election. That is the difference.

Now there are other situations. There are other dynamics going on, but we have to listen to Canadians. Notwithstanding anything that has gone on so far, we have some important work yet to do, whether it on Bill C-38, the civil marriage act or other bills. We have child pornography legislation coming up.

We have a very important bill coming out of the Standing Committee on Government Operations and Estimates on whistleblower legislation, Bill C-11, which will offer more tools within the civil service to provide greater accountability and transparency in the way it operates. It is an extremely important bill.

We had the bill in the last Parliament. We finally brought it back and we were given the opportunity to shape it. There is a great deal of work. There must be at least another 20 bills that are in various stages of the legislative process which have important contributions, admittedly, by all members of Parliament. Good work has been done.

To force the government into an election at this time is not only to rebuke Canadians with regard to whether they want an election, but also it says to Parliament that they do not care about all the work that has been in the process. It was done for naught and let us come back some other day.

The Liberal government decided to listen to Canadians, to come up with a responsible budget, to collaborate and co-operate with other parties who were prepared to work together to make the minority Parliament work.

We are continuing on that track. The government will continue to work. Bill C-48 will pass. We will show Canadians that despite the efforts of the Conservative Party this will be one very successful government.

[Rob Merrifield, Conservative, Yellowhead, AB]

Mr. Speaker, we have a Liberal government that is made up. That is the pathetic thing about what has gone on. Our leader has been totally consistent with what went on in Bill C-43. We said it was not good for the country until we got it amended. We could not support it and never did support it until we got the amendments and then we supported it reluctantly. We said that it was still not enough to throw this government out over, let us support it. That was a consistent message right from beginning to end.

I believe that my hon. colleague understands that full well. The Canadian people do as well. The Canadian people will deal with this government because of what it has done to democracy in this country. It has to stop. It has to stop now. The Canadian people will do that.

[Shawn Murphy, Liberal, Parliamentary Secretary to the Minister of Fisheries and Oceans]

Mr. Speaker, I just want to reiterate what the previous questioner asked. I want to point out the origins of Bill C-48. We had Bill C-43 before this and the Conservative leader agreed to support it, but he changed his mind. We wonder why he changed his mind.

I will get right to the question. The question is whether or not the member's leader has any credibility. I went to my friends in the Conservative Party and I asked them why he changed his mind and they basically said that they are going to have a big makeover.

My question is, who is going to pay for this makeover? Who is going to do it? Are other members? When I look across the foyer, I note that other members would benefit from a makeover. Are other members going to be eligible to benefit from this makeover? There would be chaos--

[Rob Merrifield, Conservative, Yellowhead, AB]

Mr. Speaker, there is a lot of dialogue over there. I can understand that it is a little defensive, because we are hearing from an individual who is prepared to sell his vote and cheapen himself to the point where he would actually sacrifice the democracy of the country in order to put forward a budget in the way Bill C-48 came forward. Actually, I have a difficult time seeing it as a budget. It is illegitimate. I find it absolutely inappropriate.

We see that kind of desperation from the individuals in the NDP when they ask questions like that. What happened with the vote on Bill C-43, if my hon. colleague is serious about understanding what actually happened there, was that Bill C-43 was not a bill we thought we could accept. We sat down and said we would get it into committee and that when we got it into committee we would ask for amendments. We were able to get the amendments. We were not like the NDP who said they would take all the money and illegitimately spend it.

[Brian Masse, NDP, Windsor West, ON]

He loved the budget. Then, later on, as things changed, the Conservatives decided to work with the Bloc to try to bring down the government and we as New Democrats were supposed to sit here and do nothing.

Instead, we sought to find out if we could improve Bill C-43 into something that we could support. Instead of waiting for the members of the opposition to decide whether or not to bring the government down, we at least worked to try to find out if we were going to have an improved budget.

It is important to note that the Conservatives started waffling then. Once again they decided that they would support Bill C-43. They did not vote the first time, but they did vote for it just last week, and today we have them voting against Bill C-48.

What they are against is a modest improvement to the budget that at least gives some type of improvement to students. It gives some improvement to our environment, to issues on housing, which we have long sought, and to pension protection for workers, which has been sought by many Canadians.

It is interesting as well to note that when the Conservatives voted for Bill C-43, they voted for the corporate tax cuts. That is the situation they are in. At the end of the day, let us note that the member criticized the farm and health care aspects, but they are left supporting a budget that did nothing for those aspects.

We finally have an improvement to the budget. I would like to ask the hon. member about his reference to the party platform and the election. Should Canada still buy an aircraft carrier or should it invest in health care? What is his position on that?

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, it is a pleasure to rise and ask a question of the member for Yellowhead. I want to go back to his preamble about how we got here.

First, how we got here is that the original budget bill, Bill C-43, was put forth to Parliament. The hon. member's leader, with almost the entirety of his caucus, aside from a few who decided to vote, sat on their hands and expressed no opinion on it. The leader got out of his seat, walked down the aisle, went out the door and said the budget was fine, that it was something he could support.

[Rob Merrifield, Conservative, Yellowhead, AB]

Mr. Speaker, I appreciate the opportunity to answer that question because I thought I had laid it out fairly clearly that I thought Bill C-48 was an illegitimate cooked up budget that was not about the money but was about trying to support an illegitimate government.

The hon. member wants to know why we supported Bill C-43. We supported it because we were able to make some needed amendments to it in committee. Although Bill C-43 was the biggest spending budget we have seen in a decade, we were not overly concerned with it. With the amendments we said that it was not everything but in a minority we try to move the debate along and try to do what is in the best interests of Canadians and we decided to support it so we could move on.

However Bill C-48 was an illegitimately cooked up, 400 full words, made in a room in Toronto, and the hon. member thinks that is okay and that is the way we should run this country. I find that absolutely amazing. He has been here for a considerable amount of time and he understands how the process works. What would that say if we said that was okay to all those people we consulted on Bill C-43 and who had an opportunity for input, including the NDP, by the way, who said that if it was a priority we should get on with it?

What should we say to those individuals who had input on Bill C-43 when the government completely reverses it and comes up with Bill C-48? Worse than that, it does one offs and adds another $20-some billion of spending on top of that to try to prepare for an election for the Canadian public. That is what is absolutely pathetic and unbelievable when we look at what has happened here.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, let me just say that to build oneself up by dragging someone else down is not parliamentary. It is not parliamentary language that the member used and I will not comment further.

He referred several times to propping up a government. We have made it very clear that we are in a minority situation. It is the first time since Joe Clark in 1979. We cannot govern a minority government as if we had a majority. It means collaboration and cooperation among all parties. At least the NDP had the good sense to sit down and talk about responsible changes.

The member talked about how important it was to pay down the debt and yet I cannot think of one member over there who has not spoken at the prior stage, at report stage, and at his stage who has not said that the existence of a surplus means that we are overtaxing and that we have to lower taxes. They cannot have it both ways and be fiscally responsible.

If he feels this strongly, why is it that the Conservative Party voted in favour of the budget implementation bill, Bill C-43, but is now turning around and going to vote against Bill C-48 which represents a 1% increase in annual spending? Why does he want to topple the government and send Parliament into an election. Why is there so much outrage at 1%? It makes no sense. The Conservatives want it both ways but they cannot have it both ways.