Bill C-48 (Historical)

An Act to authorize the Minister of Finance to make certain payments

This enactment authorizes the Minister of Finance to make certain payments out of the annual surplus in excess of $2 billion in respect of the fiscal years 2005-2006 and 2006-2007 for the purposes and in the aggregate amount specified. This enactment also provides that, for its purposes, the Governor in Council may authorize a minister to undertake a specified measure.

Budget Implementation Act, 2005

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

Mr. Speaker, as the minister knows, we have certain challenges in Atlantic Canada as we move from the traditional economy to the knowledge based economy. Some of the initiatives that have been led by the minister and by the Atlantic Canada Opportunities Agency have helped immensely.

The minister referred to the Rising Tide initiative which was developed by the members of the Liberal caucus. The executive responded with a certain funding increase to the Atlantic Canada Opportunities Agency which will increase the amount going to industry-led innovation, to skills training in Atlantic Canada.

Is this funding, which I believe has the support of all members of Parliament from Atlantic Canada, conditional upon this House passing Bill C-43 and Bill C-48?

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, it is a pleasure to ask a question of my colleague about the budget and the upcoming initiatives that we hope will benefit Canadians sooner rather than later.

One thing we negotiated with Bill C-48 is the elimination of large corporate tax cuts for the immediate budget. Does the member believe that instead of having those large corporate tax cuts in the future, we should invest in infrastructure, for example, to rebuild the trade routes and the ability for our economy to move via rail, sea or roads and highways as a priority as opposed to a general tax cut that has seen our infrastructure deteriorate over the years?

[Tom Lukiwski, Conservative, Regina—Lumsden—Lake Centre, SK]

Madam Speaker, my hon. colleague from Cambridge had two very good questions. I will take them in order.

We have advocated for many months that we should be separating the Atlantic Accord from the budget. If the NDP supported that position, we would be in total agreement. Let us get it done. Let us get money to Newfoundland and Labrador and Nova Scotia as quickly as we can.

I find it very interesting that the members opposite, in their unholy alliance with the NDP, would not support their partners in crime on this one. If they are truly sincere in wanting to get money to the Atlantic provinces quickly, why do they not join with us and let us get it done?

The Liberals do not. Why do they not? For one reason and one reason only. Politically, they want to try to put the blame on the opposition. That is the only reason they are doing this. They are trying to make it a political issue. Once again, they are playing with the lives of people for their own political purpose.

Any time we have a knee-jerk reaction to something as serious as the budget, we will have problems. We have seen $2 billion unnecessarily wasted on the gun registry. We see examples like the sponsorship scandal, designed exactly for the same purpose, which was to try to buy votes for Canadians in Quebec, the biggest criminal and corrupt scandal in Canadian parliamentary history. We should not support Bill C-48 because it has all of the elements of the same problems.

[Tom Lukiwski, Conservative, Regina—Lumsden—Lake Centre, SK]

Because the members opposite have said that they want to get money to the Atlantic provinces quickly.

We were the ones, if members recall, who were for years pressuring the government to do this. It was only because of a political commitment the Prime Minister made during the heat of last year's election that this ever came to fruition. Then, after the election, for several months the government tried to renege on its promise.

We pressured the government. Premier Danny Williams from Newfoundland and Labrador pressured the government to the point that the Liberals had to admit it and say, “All right. We will come forward with our election promises”. But if they were truly sincere in a desire to get the money to the Atlantic provinces quickly, there was no need to put it in the budget. It could have been a stand-alone piece of legislation.

We have asked for it to be taken out of the budget. Members of this House could pass that if we wished. If there were unanimous consent in the House for all three readings we could get the money that is desperately needed in Newfoundland and Labrador and Nova Scotia to them quickly, but this government refuses to do so.

The member asks whether that is cherry-picking. Those members have already set the standards for that. We already know what cherry-picking is and we see it in Bill C-48. The Atlantic accord should not have been included in the budget to begin with. That was our position at the time. That is our position today.

[Tom Lukiwski, Conservative, Regina—Lumsden—Lake Centre, SK]

I am sure that all the political junkies who are tuning in to get their political fix today have nothing better to do, so this debate will probably fill a void for them. I am pleased to speak and help those people get their political fix.

I should say at the outset that even though this is a debate on Bill C-43, I feel we cannot really speak to this legislation without also speaking to Bill C-48, because the two are obviously intertwined.

I think we have to put things in context. These two bills are rather unprecedented. This is the first time in recent memory that I can remember not one but two budget bills being delivered. In fact, it is my understanding that both of these bills need to be passed on Thursday evening for the government to avoid a non-confidence vote, so let us talk about the fact that these two bills have been brought down together, what that means and what the impacts are.

Members may recall that Bill C-43 passed the first stage a few months ago. At that time, although Conservative Party members abstained from the vote, we did so because we felt that the government deserved to go forward. Our party did not think that Canadians wanted a general election, at least at that point in time, so our members abstained from the vote. Shortly after that, of course, in fear of the government going down, the NDP proposed a solution, one that is a political solution, I might add, and not a financial solution, and introduced and cut a deal with the government that ultimately led to the creation of Bill C-48.

I have to set the record straight on a few points.

First, the Minister of Finance has said on several occasions that it was the Conservatives who flip-flopped on our position of support on Bill C-43 and that is why the government was forced to seek an arrangement with the NDP. In fact, that is not true. What happened was that the revelations coming out of the Gomery inquiry were of such magnitude and such impact that we felt the government then did not deserve our support to remain in office. We then clearly indicated that we would be trying to take the government down at any and every opportunity. It was only because of this situation that the government then entered into negotiations with the NDP. The ultimate creation was this bill called Bill C-48.

It is this bill, quite frankly, that gives me quite a bit of concern, because we all know that this was a political deal made not in the best interests of Canadians but in the best interests of the Liberal Party of Canada. In fact, this deal was cut in a hotel room in Toronto without the presence of the Minister of Finance.

We hear all the spin from members opposite, who are saying that the Minister of Finance was involved. I have never seen a budget consultation that created a budget bill for Canadians while the Minister of Finance was on the phone listening to House leaders from two different parties create a budget bill. It is unheard of.

It is incumbent upon all Canadians to understand that this was a political solution to a problem the Liberals felt they were facing, and that was the defeat of their own government. This was not a bill that was constructed to help Canadians. This bill was constructed to help the Liberal Party of Canada.

Now that I have provided that framework, I think I can talk a bit more about Bill C-43.

I must admit that there are elements of Bill C-43 with which I agree. There are certain things contained in the bill, particularly with respect to the RRSP provisions in the elimination of the 30% restriction on RRSPs. This alone is something that many people in my riding had been asking for over several years. Over many elections the government talked about implementing that provision, but in my recollection, this is the first time it has actually brought it forward in a budget. That is something I applaud.

There were a few other points that I could agree with, but here is what happened when Bill C-48 came into the mix. This was a plan, and I use the word “plan” very lightly because I think there was no real forethought put into it, and a bill brought forward that literally could be contained on a page and a half. This was a bill that was put together on the back of an envelope, to use the vernacular, in order to try to save the political hide of the Liberals.

What happens when a budget is put forward that has spending commitments of over $4.6 billion without a true plan on how to implement it? It is a recipe for disaster.

I think the Minister of Finance also understood that, because at the time Bill C-43, the original budget bill, was brought forward, the Minister of Finance was effusive in his praise about his own bill. All members opposite were lauding this budget as one of the best budgets in years.

However, when questioned by the media and by members of the opposition as to the potential of amending that bill for political purposes, the Minister of Finance was quite clear. He stated unequivocally that we cannot .cherry pick budgets. We cannot take certain elements out of a budget and put other elements in because that is a sure recipe for deficits, for deficit disaster.

Those were the words of the Minister of Finance, but what happened only a few short weeks later? There was a political deal cut, without his knowledge, I might add. The very things he was warning all Canadians about happened. Why did they happen? Once again, it was for political purposes: to suit the Liberal Party of Canada.

Frankly, I feel sorry for the Minister of Finance because his legs were cut out from underneath him by the Prime Minister. The Minister of Finance was not consulted about this. He was told, “We must enter into an agreement with the NDP to save our political hides”. Now, across Canada, the Minister of Finance, to his great embarrassment, is trying to defend Bill C-48 when in his heart of hearts he knows as well as I know and as well as most Canadians know that Bill C-48 is an unmitigated disaster. It was only done for political purposes, and that is the worst thing that Canadians expect of any political party and any Minister of Finance.

Budgets, whether we agree with them or not, should be crafted to try to represent the views of the government of the day and hopefully to represent the views of the majority of Canadians, to help Canadians but to be financially and fiscally responsible. Bill C-48 destroys all that credibility, Whatever credibility there was within the original budget bill, Bill C-43, Bill C-48 goes to great lengths to destroy it. That is something I simply cannot support and I do not think most members of the House should support it.

We are in the situation right now where there is a lot of political tension. That is obvious. Many political observers are saying that we are on the brink of an election. Clearly today's announcement puts that in some doubt because of the numbers shifting a little, but I do not think Canadians should have to expect that budgets affecting the lives of Canadians from coast to coast to coast should be put in jeopardy for political purposes. I do not think Canadians expect that budgets should be crafted and designed in order to better prop up the political fortunes of any party. Whether it be Liberals, Conservatives, New Democrats or the Bloc, Canadians expect and deserve better, but it is just not happening.

If there was going to be an attempt by the New Democrats to craft a deal with the Liberals to amend the budget and to bring in a new budget, or a better budget, as they like to call it, then I would think that at least there should have been consultation with all members of the House and with all parties. There was not. The NDP tried to further its own political purposes in a hasty deal with the Liberals. It totally ignored the reality of what people in my province wanted to see.

For example, in the original budget bill, Bill C-43, there was literally no mention of agriculture, none whatsoever. The NDP then suggested a solution, an amendment that it said would help Canadians in all provinces across Canada. I can tell the House with great certainty the people of Saskatchewan are absolutely opposed to Bill C-48, because once again, with an amendment and the opportunity before it to bring something to the province of Saskatchewan, the NDP totally ignored agriculture. The NDP had the government over a veritable political barrel. It could have introduced some significant changes and benefits for Canadian agriculture and farmers in Saskatchewan, and yet it did nothing.

Let me close by saying I think it is a travesty that this government is trying to promote a bill that was crafted strictly for political purposes, thus reneging on its own commitment to Bill C-43. This is unconscionable, and at least Bill C-48 should be defeated.

[Guy Côté, Bloc, Portneuf, QC]

Madam Speaker, I have never seen an MP less concerned about her constituents. She is absolutely remiss in her duty.

Yesterday, I had the sad task of having to explain in this House why the budget and the two budget implementation bills do not recognize the realities and problems currently in place in Quebec. Hon. members will recall that there was a farmers' protest yesterday on Parliament Hill. Last evening, I got a call from a forest products company, Tembec, announcing that four of its plants were going to shut down or cut back on operations.

For years, the Bloc Québécois has been calling upon the government to come up with an effective plan to assist the forest industry and its workers. We have yet to see any sign of it. For years we have been demanding a government plan to assist older workers. At the very least, when plants are closed, we want to see assistance programs made available to those who lose their jobs.

I hope that the hon. member will come to my riding to explain how Bill C-48 is going to help the unemployed of Saint-Raymond and Saint-Léonard. There is another plant in Brantford, Ontario, where I hope she will go as well. I also invite her to my colleague's riding of Abitibi—Témiscamingue, where another will be closing. I hope the hon. member is going to look out for the real interests of her fellow citizens.

[Lynne Yelich, Conservative, Blackstrap, SK]

Mr. Speaker, I still would like to hear more details of what the minister has in store for the agriculture and rural communities of Canada. To have a quote from Germany does not help us in western Canada. I would like to hear some quotes in western Canada of how we will have some incentives to meet our goals. I was disappointed that I did not hear any made-in-Canada solution.

I would like to speak today about the budget. Bill C-48 is not just about the environment. It is not about child care. It is not about affordable housing. It is not even about anything the Liberals or the NDP alliance would have us believe. The legislation is all about political survival because this government seemingly has one goal, one purpose and one objective: the retention of power, at all costs.

The government is willing to trash today's cherished principles for the political expedience of tomorrow. For example, the Minister of Finance was adamant a few weeks ago, stating that any changes to the budget would be inconceivable because any opposition tampering with this budget would spark a financial downturn in Canada. I quote the finance minister:

You can't go on stripping away the budget, piece by piece...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 absence of principle and conviction usually makes the once inconceivable a reality in politics. Consequently, only a few weeks later, the finance minister was undercut by his Prime Minister, who allowed the leader of the smallest party in the House to gleefully rewrite the budgetary framework of Canada.

We should take a moment to ponder the magnitude of that act. The finance minister had his agenda dictated to him by the leader of the major national party which consistently garners the least support across Canada. There is a reason for that.

While some limited portions of the NDP agenda may be somewhat appealing, Canadians know that entrusting the public purse to the NDP is about as smart as giving kids caffeine before bedtime. They will tax our energy all night and keep on asking for more.

Canadians cannot endorse the reckless spending and the anti-growth agenda advocated by New Democrats. We only have to look at my home province of Saskatchewan to see how the NDP-managed discourages innovation and drives people away. Accordingly, this new budget represents the beginning of a significant realignment in Canadian politics. The Liberals have abandoned a mainstream approach to governing defined by fiscal prudence to one ripe with billions in unaccountable spending dictated to them by the least popular party in Canada.

Amazingly, the government is demanding members in the opposition endorse the legislation. Not only would this course of action jeopardize Canada's economic future, it would turn the public purse into a prize on what the Waterloo Record has called Canada's news game show, “Let's Spin the Taxpayers' Wheel of Misfortune and Make a Deal”. In a frantic attempt to cling to power, the government has made the first winner of this game show the smallest party in Parliament and its leader.

What did the leader of the fourth place party have to do to win this prize? It is simple. Change his tune completely on this government and agree to prop it up.

The NDP just months ago voted against the budget. The NDP just months ago did not have confidence in this government. The NDP just months ago was prepared to force an election. The NDP was ready to, and in fact did, play politics.

Even more, the leader of the NDP publicly chided my party for having the audacity for refusing to bring down the government and force an election this past February. Why? Because apparently the budget of a few months ago was all wrong, especially for the residents of my home province of Saskatchewan. The NDP went to great lengths. According to the leader of the NDP, the budget did nothing for Saskatchewan and he was extremely concerned about what had happened in the budget.

Let me quote from the February 25 Globe and Mail :

New Democrats said that if the Tories vote for the Liberal budget, they will revel in pointing that out to voters on the hustings, especially in the West, which has several ridings that are Conservative-NDP races. One NDP adviser said the party would have a field day pointing to a Tory vote for a budget that funds the gun registry and does little for farmers.

However, when the government, like a parent desperately trying to silence a pouting child at the toy section of a department store, caved into NDP demands, something odd happened. While the NDP demanded some really expensive toys, $4.6 billion worth of them, paid for with Canadian taxpayers' hard earned money, it demanded nothing for Saskatchewan, and everything that was left out of the first budget was left out again. There is nothing for farmers, nothing for rural communities and nothing for Saskatchewan. I look forward to hearing the NDP explain that on the hustings.

I would also like the Liberal-NDP alliance to explain how this legislation resembles responsible financial management, or how this budget will improve the quality of lives of Canadians because we all know it is not and cannot.

This legislation is not responsible financial management. It represents the worst of the worst in unrestrained spending of the Liberal government. People in my riding and across Canada will not accept this. People like Russel Marcoux, the CEO of the Yanke Group of Companies, said, “we're hearing about a billion dollars here and a billion dollars there. Where is it all coming from?”

There is no fiscal responsibility evident right now. People know that if they were to model business decisions after the Liberal-NDP budget, they would not have to worry about making other business decisions for a long time after that. Insolvency will do that for them. Even more troubling, Bill C-48 lays out no plan for spending. It only lays out a lot of spending. It commits millions to a large number of areas with absolutely no plans on how the money will be spent.

Ironically, while the Gomery inquiry is examining sponsorship spending in the 1990s by the Liberal government, this legislation would allow cabinet to again create and implement programs with absolutely no framework. It would allow cabinet to make payments in any manner it deems fit. The Liberal Party of Canada, the party of ad scam and the party of Alfonso Gagliano, wants Canadian taxpayers to trust it with their money, to implement programs with no framework and no accountability. Those are not shrieks of delight from hardworking, overtaxed Canadians.

Nancy Hughes Anthony, the president and CEO of the Canadian Chamber of Commerce, recently stated that one would have thought, what with ad scam and these sorts of things, that the accountability would be increased, but we are seeing that the accountability seems to be decreased. How any rational individual could seriously consider endorsing this total absence of a framework is puzzling at best?

The Liberal Party of Canada created a problem for themselves with ad scam and the resulting tales of deceit and corruption emanating from the Gomery inquiry. Now the Prime Minister and his party want to use the Canadian taxpayers to bail them out.

Like the bank robbers who throw money into the air to confuse the authorities during a getaway, the Liberal Party is trying to deflect attention from ad scam with an unparalleled spending blitz. While the NDP has been a willing getaway driver setting its price for cooperation, the Canadian public cannot and will not easily comply.

If a CEO of any reputable company wanted to increase spending and reduce revenue in the midst of a major crisis, the board of directors would surely ask for his or her resignation. Canadians are the directors of the Canadian government. We should expect no less and demand no less. This is no way to run a country.

We in Saskatchewan have an NDP government. We know what we are talking about when we see our hard earned taxpayer dollars go to a government that has no clue about responsible government and spending.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, the issue of trust is really being flushed out with the member for Newmarket—Aurora. At least as New Democrats we negotiated a deal as a party position under what we stood for as Canadians but Conservative members are now crossing the floor to join cabinet positions. We stand by our principles in terms of the things that we fought for at election time to make a better Canada. We are very pleased with what Bill C-48 does.

The fact is that this is a better balanced budget and it is also one that is very reasonable. We were very pleased, for example, to take the opportunity to extract corporate tax cuts to the largest corporations and redirecting that elsewhere. We think it will be very successful for the economy. For example, we think there will be a housing boom for many of the different construction industries. We do know that many people need affordable housing which will then put that money back into the system as opposed to having to pay rent at a higher level which makes it difficult for them to be able to sustain families. We believe it is very much a family issue.

The government has historically over the last 12 years, via major surpluses, underestimated the budget, so we are quite confident. Our party did due diligence with different economists, those in the party system and outside of our party system, to ensure what we were doing was reasonable and was achievable. That is something that we believe will see fruition and that is important for Canadians.

When we went to the break week, while the leader of the official opposition said that he would talk to Canadians about whether to go to an election and then consider voting against the budget because his party did not vote against it when it first came forward, we did not sit around and wait to see whether the Conservatives and the Bloc would team up to bring this country to an election or, alternatively, live with a bad budget. We voted against it because we believed it did not represent the views of our constituents.

We sought to make changes to make Parliament work. We negotiated something that is of benefit to Canadians, something that makes me comfortable as an individual and something that is above board. We did not do it in a way that was disrespectful of the House. When we came back from the break we had a position that we could now support. As New Democrats, that was better than sitting around waiting to see if the other parties would bring this to an election or have to eat a budget that did not suit the needs of Canadians.

This budget still has a lot of holes in it and is not as good as we would like it to be but it is balanced and fair. It is a compromise for some of the things that we have asked Canadians to support us on. We will be proud to hopefully get those achievements into our communities to have a better Canada for all of us.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, it is a pleasure to rise today to speak to Bill C-43 and to talk about some of the things that are important to Canadians with regard to this budget. We want to make sure that there is some stability in this country. Moving forward on this budget is important. If a potential election is looming, this country should at least have a budget before that. The New Democrats have been working on Bill C-43 and Bill C-48, the amendments that we proposed, to make sure that Canadians do not go without a budget.

I want to touch on a couple of topics. One of them is a specific reference to students.

My constituency of Windsor West has thousands of students because of our great St. Clair College of applied arts and technology and the University of Windsor. Those two institutions have been at the forefront of training and educational opportunities for young people. Those institutions have been important not only to the growth of their students' knowledge in specific areas related to the arts and humanities but also in terms of training. One example would be with respect to the automotive industry, through research and development at CARE, the Centre for Automotive Research and Excellence. St. Clair College has specific programs, such as the Ford Centre for Excellence.

Students have been moving successfully through a process to obtain skills and abilities that lead the way to ensuring that our auto industry has trained professionals that will contribute very much to the economy in the short term, but also in the long term to be progressive with some of the newer technologies. The automotive industry is the single most important industry that contributes to the coffers of this nation. It also provides stable employment for thousands of people across the country, be it through the initial manufacturing and assembly process or through servicing the vehicles later on. We need to protect that stable economic pillar of Canada.

The two budget bills, Bill C-43, now amended through Bill C-48, are not perfect by any means. Certain things give me some concern. There are some things that are being done now but not to the degree that I would have wished. However, it is a better budget . I will be supporting it because the students at the university and the college in my riding will be receiving some type of an offset in terms of tuition. This is a very important part of our future progress.

The government has downloaded educational costs over the last 12 years to students. Not only does it affect them, but it affects the country because literally, students are leaving post-secondary institutions with tens of thousands of dollars of debt. They are also graduating later in life. Not having the opportunity to start their careers earlier leads to a couple of problems. When they leave university with such massive debts, they are not likely to purchase vehicles and other manufactured goods, and they are not able to purchase new homes or renovate old homes. Servicing such massive debts is a major burden for them.

It also hampers something else which I think is overlooked. They leave school later and therefore, they start their families later in life. For example, my wife and I wanted to service our debts first. We decided to wait a little longer before starting a family. Many delay having their families. The consequence sometimes is there are smaller families because people do not start them until later in life.

One thing which young people face today and which is a major shift and is really critical is that they have less pensionable earning years. They are servicing these massive debts in their late twenties and it is taking them until their mid-thirties to erase those debts. They are delaying purchasing things, whether it be a car, a house or other things they need because they are paying massive interest. They are delaying economic growth. Their pensionable earnings are condensed because of the current types of employment. Getting a pension is very difficult and having the same job over one's life cycle now is more difficult.

The colleges and universities in my community are setting up programs and services that will allow people to go back to school and upgrade their skills and abilities. Previously more support was given to individuals to get those skills and abilities through their employer or through some type of program training. This is now being put on the backs of students again. Having student relief in the budget is important. The last 12 years have been extremely negative in terms of our educational system by placing the entire burden on the backs of students.

People in my constituency are giving up on some career and educational opportunities because they do not want that type of burden placed upon them. As a result we are eliminating some of the new people we need to contribute to our economy.

We can apply the same thing to the automotive industry. Newer technologies are out there now and our party has been pushing for a green auto strategy, something that David Suzuki has supported. We have proposed a number of different positive initiatives that would get newer vehicles on the road.

The government has claimed that this budget is a green budget. It is certainly an improvement but I think more could be done. One of the things we could do to clean up our environment would be to get some of the older vehicles off the road. This would not only be good for the environment, but it would be good for the automotive industry itself.

Older vehicles, even though they could be compact cars, often have higher emissions than some of the newer vehicles on the road today. This is a result of the different standards that are in place now and the way they operate. Getting those newer vehicles on the road would improve our environment. We need to ensure that the government's commitment to the automotive industry is stronger.

This budget is a good step toward giving students some basic relief. Students delay purchasing vehicles because they are servicing a massive debt load. Constituents have told me they would like to purchase some things but cannot afford to because of the financial burden they are facing. That financial burden gets worse as people go to the next level of post-secondary education where they are looking at graduate degrees or looking at specific training because they already have their under-graduate degree.

In terms of continuing to expect people to have a higher degree of education and to have the skills and abilities required for the workforce, we were faced with the issue of putting the entire burden on them. I think this budget is the first step in the right direction.

I hope the government takes my message strongly that other industrialized nations have been reducing the cost of tuition. In fact, some countries actually do not have tuition fees, which is what we could do here in Canada. The issue is not always about how much money is actually put into a budget.

One of the things I would like to see changed is the policy relating to interest rates on student debt. Why is it that an individual can get a car loan or a couch loan at a lower rate of interest than a student loan? This predatory practice of having high interest rates on student debt is something that could be adjusted and it would be very worthwhile. It would generate that income back into the economy and allow people to pay off their debt quicker as opposed to the predatory basis of having them borrow money and the government making a profit off the backs of individuals who want to improve their educational and vocational stature.

I will be supporting this budget. It is the first step of many toward ensuring that our young people leave college and university with a lower debt load while at the same time having the skills and abilities necessary to make Canada a competitive nation for the upcoming challenges.

[Monte Solberg, Conservative, Medicine Hat, AB]

Mr. Speaker, it is my pleasure to address Bill C-43.

At the outset I would like to pay tribute to the Liberal member for Glengarry--Prescott--Russell who I just spoke with a minute ago. He has been in this place for a long time and is retiring, and will not be running again. Although we have often been at odds in this place I respect him as a parliamentarian. He has put many years of public service into this place. I believe it is over 20 years now. I certainly wish him well in his retirement whenever that may actually come.

The Conservative Party deeply regrets how the government has changed this legislation and weakened it. We have other concerns about this legislation, but we regret that some of the changes that the government has made to Bill C-43 will hurt families, seniors, and large employers, the people who employ so many people in this country. The changes will also hurt farmers and people who provide necessary vital services in this country like our military and front line police officers. Those are the people who are going to be wounded by this legislation. Many people will be hurt by the changes that have been made to Bill C-43 and the adoption of Bill C-48, and I want to talk a bit about that today.

I just heard an NDP member ask a Liberal member about the removal of the tax relief for large employers in Canada and then talked about how it was important that the money instead go to affordable housing for instance. I would simply make the observation that if the tax relief for large employers is taken out, that will pretty much guarantee the need for more affordable housing in Canada because there will be a lot fewer jobs.

A study came down recently from the C.D. Howe Institute that pointed out that if the government had actually followed through on the tax relief for large employers, it would have created 340,000 jobs in Canada. I thought the NDP was the friend of labour. I thought that was the party that wanted to see more good paying jobs, jobs that would allow people to look after their families and put their children through university, and do the things that ordinary Canadians want and deserve. What they really want is some hope. Unfortunately, by the government doing the kinds of things it has done with Bill C-43, it is taking that hope away from a lot of people.

I want to argue too that there are other problems in Bill C-43. There are concerns about how tepid the personal tax relief is for Canadians. The income tax cut for individual Canadians in the upcoming tax year amounts to $16. That is it.

As I pointed out in the debate yesterday on Bill C-48, many Liberal advertising agency executives received their money. They received bags of money, literally, from the government through the sponsorship program. They received suitcases full of money amounting to hundreds of thousands of dollars. What do rank and file Canadians get? They get a $16 tax cut. That is not enough to buy a large coffee at Tim Hortons once a month. It sounds like Canadians are rolling up the rim and losing with the government, but Liberal ad executives have done extraordinarily well.

When the government wants to deliver money, it can deliver it by the suitcase full to the people it wants to deliver it to. However, when it comes to rank and file Canadians, the Liberals are all too prepared to sacrifice their principles to look after themselves. We saw it in the sponsorship scandal. We are seeing it now in Bill C-43. The government caved in to the NDP with the creation of Bill C-48. We will reap the whirlwind for this legislation.

I am not just talking about the impact on jobs and the standard of living. I hasten to point out, as other members have pointed out in this place, that since 1989 the standard of living, the take home pay in Canada, has only gone up 3.6%. It amounts to an $84 a year increase. That is unforgiveable in a country that should be so extraordinarily wealthy.

We should be the wealthiest country in the world. We have resources that are the envy of the world. We have tremendous human resources, people who are knowledgeable and have an education. We have a diverse population. However, that is not translating into a higher standard of living.

I argue that the reason is because of poor government policies. One of the greatest advantages of all is that we have this access to the U.S. market, the richest market in the world ever and 25% of the world's economy. We should be mining that, but unfortunately, we have very bad government policy. I am afraid that the government has just made it worse again. It has made it worse again by removing the tax relief for large employers which would have encouraged more investment in Canada. Many investors would use that to start businesses in Canada and then use the more or less open border to the U.S. to sell their goods and services.

That is what has happened in the past, but we are losing that. We are taking it away voluntarily now for some reason. We know why. It is because the government is too prepared to sell out Canadians in order to save its own skin by getting 19 votes from the NDP. That is simply wrong.

I want people to think about what could happen if we did not do the sorts of things that are being contemplated today. In Bill C-48 the government is giving the NDP $4.6 billion to play with. I did some quick math and that works out to about $150 per person in Canada.

I think about a family that I know, a great family that lives not far down the road from us. They have four children. If we took that $150 per person and allowed them to keep it, it would be $900 with six of them in the family. If the members of that family were able to keep that, imagine what they could do with that every year. That extra $900 could go into an RESP for education or an RRSP.

Let us say that they put it into an RRSP and let us say they got a really good yield on that. Let us say they got a 10% yield on average. I know that is a high yield, but I did some figuring and over 30 years it would amount to about $150,000 which would be a nest egg for them when they retired.

Let us say that they only get a 7% yield. It would still be $80,000 or $90,000. It is a tremendous amount of money that they could use for their retirement. Why not allow people to keep more of this money in their own pockets, so they can make decisions for their families?

I think it is time for Canadians to get their cut. Liberal bagmen and the Liberal Party got their cut. There is no question about that. We have had confessions from three executive directors of the Quebec wing of the Liberal Party, basically confessing to all the money coming back to the Liberal Party out of the sponsorship program. Bureaucrats and politicians got their cut. In fact, the bureaucracy in Canada has grown by 77% since 1997-98. That is a tremendous amount, but what happens to the take home pay of Canadians? It has gone up 3.6% in 15 years.

It sounds like the ones who are getting the short end of the stick are families, farmers and fishermen. When the NDP cut this deal, it claimed to be concerned about farmers, but did it think of farmers when it got all this money out of the government? No, not one penny for people on the farm.

We have the worst crisis in agriculture today since the Great Depression. That is not an exaggeration. That is an absolute fact. In 2003 we saw incomes fall on the farm into negative margins for the first time since the thirties. Did the NDP think of farmers when it cut its deal with the Liberals? No, it did not.

We must defeat Bill C-48. Bill C-43 has become deeply flawed. I urge my colleagues on all sides of the House to consider this as we prepare to vote on both of these measures on Thursday.

[Alan Tonks, Liberal, York South—Weston, ON]

Mr. Speaker, I would like to congratulate my colleague for his insights. These comments are not often brought to the floor of the House within the context of the budget, comments that reflect on our international responsibilities and accountability which we have shared over the last number of decades, from a developmental and an exchange of ideas with the developing communities of the world. This is nowhere more reflected than in the cities' relationships through the Federation of Canadian Municipalities and the city to city, municipality to municipality international exchange that exists with developing countries.

One of the highlights of the budget is to emphasize that the new deal is more than a gas tax for infrastructure in Canada. While that may be very important, it is also to empower municipalities to reach out as part of that Canadian signature that reflects our compassion and outlook to the global community, in particular, developing countries.

Would my colleague perhaps expand a little on how he thinks municipalities could be more effective, given that they have been given the empowerment, through the highlight in the throne speech of the new deal and through Bill C-48, which increases the capacity of cities to become part of a much larger new deal at home and perhaps an international new deal in the global context?

[Paul Zed, Liberal, Saint John, NB]

Mr. Speaker, it gives me great pleasure to speak in the House today in support of budget 2005. I believe this budget will bring about real investments in real people that focus on real priorities of people in communities across New Brunswick and in Saint John, Rothesay and Quispamsis.

Our government has eliminated deficits and recorded our eighth consecutive budget surplus while reinvesting in our social programs and paying down our debt. We can now move forward and focus on our number one priority: improving the quality of life for all Canadians.

In my home province of New Brunswick and in my riding of Saint John, we are working hard, together, to improve our quality of life and grow our community. We need true growth. We have made great strides forward, but there remains much work to be done.

In September 2004, first ministers signed a 10 year plan to strengthen health care, which has provided $41 billion over 10 years, $927 million of which goes to New Brunswick. Budget 2005 builds on this. This money goes to reduce wait times at hospitals and to support for nurses. Our hospitals are the largest employers in Saint John, New Brunswick and our government is committed to ensuring that health care and our health care system remain strong in our community.

Saint John also needs more units of affordable housing. We have one of the oldest housing stocks in Canada. I am glad that the Minister of Labour and Housing was able to visit Saint John in January and assess the specific needs of our community. The minister has already responded to a request made by the Saint John community during his visit and opened a new housing office to address the distinct affordable housing needs of Saint John.

Budget 2005 invests a further $1.6 billion in affordable housing in Canada. I am committed to building 100 new units of affordable housing per year in Saint John. I am working together with our provincial government and our non-profit housing sector to ensure that this happens.

I am excited by the work currently being undertaken as part of the vibrant communities initiative and the non-profit housing sector in greater Saint John to provide safe and affordable housing for individuals and families. We recently announced $150,000 to assist this organization, which came from the Minister of Public Safety. The Government of Canada will continue to be a proactive partner in improving the quality of life and reducing poverty in Saint John.

Child care is another important item in the budget of 2005. Last week we were hoping to have the Prime Minister and the Premier of New Brunswick visit Saint John and announce a child care agreement. It is unfortunate that the province has decided not to sign this agreement yet, but we believe that Saint John and New Brunswick need this agreement, especially in Saint John, a city where one in four children lives in poverty. It is my hope that we can put partisan politics aside and sign this agreement as soon as possible.

The children of our province are our greatest asset. Budget 2005 provides the funding that will help them make a better tomorrow for our future.

Budget 2005 is also good news for the seniors of my riding. The guaranteed income supplement benefit for low income seniors is rising by $2.7 billion in this budget. Simply put, by January 2007, for a single person in my riding of Saint John, New Brunswick, that is $36 a month and $58 a month for couples.

The new funding for the new horizons program for seniors is also being increased in this budget. I recently announced funding for new horizons projects in Saint John, New Brunswick, for St. Joseph's Hospital's community health centre. I look forward to more announcements for seniors in the months ahead.

Clearly, budget 2005 also recognizes the enormous debt of gratitude we owe our seniors and this is especially fitting as we celebrate the 60th anniversary of the end of the second world war, for the year 2005 is the year of the veteran.

Budget 2005 also reaffirms our commitment to regional development by supporting agencies like ACOA. Projects in Saint John like Lily Lake, Harbour Passage, the Quispamsis Park, Fundy Trail and Enterprise Saint John have all been beneficiaries of ACOA. ACOA continues to help Saint John, New Brunswick and Atlantic Canada build and grow.

Finally, budget 2005 delivers on the Government of Canada's new deal for cities and communities, providing a commitment on the gas tax for revenues to increase important infrastructure for Saint John, Rothesay, Quispamsis and Grand Bay. These are important benefits that we need in this community now. New Brunswick's share is about $116 million and the funding is absolutely critical to greater Saint John.

The new deal recognizes the reality that municipalities need reliable, predictable and long term sources of funding. I am happy that this budget is able to do that. The renewal of existing infrastructure programs is of critical importance to Saint John because, let us be clear, our number one future priority is the Saint John's harbour cleanup. This is the number one environmental issue. It is a public health issue and an economic development issue.

Our port in Saint John needs to balance finding new jobs for our workers with the recent development of our cruise ship business in the harbour. If we are going to attract new ships and new industry in tourism, we must clean up our harbour. If we are going to improve our health, we must clean up our harbour. If we are going to attract and convince young people to stay in our community, our harbour needs to be cleaned up.

Looking for new opportunities for our port workers and harbour cleanup go hand in hand. This is not something that the city of Saint John can do alone. In this regard, we have been working hard as a team in Saint John to bring forward our common priorities for Saint John and our region. Last fall I brought the mayor and council of Saint John to Ottawa for meetings with various ministers of the government, including our Prime Minister and the Minister of State for Infrastructure, and of course our regional minister for New Brunswick, the hon. member for Fredericton.

We continue to present a united front for our community. Our community is committed to harbour cleanup. Earlier this month, Team Saint John meetings continued with our minister for infrastructure, where we had councillors Glen Tait and Chris Titus, along with our commissioner, talking about the follow-up to important meetings for harbour cleanup. The federal, provincial and municipal governments are all working together in our community of Saint John. We realize that the renewal of existing infrastructure programs is of critical importance to Saint John.

In conclusion, our work has just begun. We need to work with the province to develop solutions for Point Lepreau. We need child care. We need to further reduce wait times at hospitals. We need to equip our nurses with better tools. We need jobs for young people and jobs at our port. We need safe housing and we need a clean harbour. I urge the House to put partisan bickering aside and get to work passing the budget bill, Bill C-48, and doing the work that Canadians sent us here to do.

I move:

That this question be now put.

Bill C-48

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

Mr. Speaker, I would seek the unanimous consent of the House to move the following motion:

That Bill C-48, an act to authorize the Minister of Finance to make certain payments, be deemed to have been read a second time, referred to committee of the whole, reported without amendment, concurred in at report stage, read a third time and passed.

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

[Alexa McDonough, NDP, Halifax, NS]

Madam Speaker, I genuinely thank the member for Dartmouth—Cole Harbour for his enthusiastic support of Bill C-48. He was pretty straightforward in saying that this bill, in terms of his budget priorities, reflects both his personal philosophy and that of Canadians.

I have to say, without any disrespect, that the member for Dartmouth--Cole Harbour, who enthusiastically supports Bill C-48, must have been profoundly disappointed in the budget that was brought in by his own party. Even though Canadians saw that these were the priorities that made sense and that he personally felt that, his party clearly did not. It was not until there was incredible political pressure brought to bear that these priorities emerged.

I want to speak to the question raised by the member from Abitibi. He is not the only one who has asked this question today or on previous occasions. He wants to know why the NDP would be so trusting or naive to think that the government would actually deliver on the priorities that are now contained within the NDP enhanced budget.

I would raise the following question and ask the member to address it. Should Canadians not think about the fact that it took 19 New Democrats to work with the government to say that we are responsible to make this work and we got these kinds of changes? However the combined forces of the 153 members sitting on the opposition benches from the no longer progressive conservative party and the Bloc were not sufficient to actually make a difference in shifting the priorities of this budget.

How will the member explain why he is asking people to vote for him in the next election, instead of Anne-Marie Foote or Peter Mancini, whose party also supports these priorities, in addition to Canadians personally supporting these priorities?

[Michael John Savage, Liberal, Dartmouth—Cole Harbour, NS]

Madam Speaker, the member raised a lot of questions. I will try to go from memory and pick them off one by one.

The member spoke about affordable housing. He asked why we needed to have the NDP to bring that money into the budget. We in this government have done a lot in affordable housing in Canada in the last few years; last year we campaigned on it. One of the problems we have had is that some provinces, including my own province of Nova Scotia, would not match the money. There was $13 million put aside for Nova Scotia that was not matched by the provincial government.

The federal government identified this as a priority. We said we would actually make it easier for the provinces to match those moneys. We said we would increase the flexibility; so perhaps rent supplements are a way to go. We are going in that direction. I mentioned the announcement we made in Dartmouth—Cole Harbour for people who cannot not afford housing, who do not have access to decent housing, and who are mental health consumers. We have now reached a deal with the province of Nova Scotia to address that.

In terms of the environment, this was already called the greenest budget in Canadian history, with huge investments in the environment: retrofitting, energy efficiency and a whole slate of initiatives. I think anyone on this side of the House would be pleased to debate the environment with anyone else in the House.

If we do go into an election soon I will certainly take the budget with me. I will be going with the environment, with affordable housing and with international development, and I will be saying that we have a record: we have made promises, we have kept them, and Bill C-48 only makes it that much better.