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.

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

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

Madam Speaker, I would like to lend my voice to the support of Bill C-48. This bill reflects not only my personal philosophies but those of this government and I believe those of Canadians.

We as Canadians sometimes forget how fortunate we are to live in this country. We hear a lot of bickering and complaining in the media and indeed in the House, more so recently, about this government policy or that government proposal.

When it comes right down to it, though, Canadians are proud of who they are and where their country is going. I believe Bill C-48 builds on that feeling of pride Canadians have, that diversity and compassion, and that belief that we are stronger when we help those who are weak and we are better together than we are apart.

Let us look at the areas to which this bill targets funding. One is $1.6 billion for affordable housing. A few weeks ago I had the opportunity to be in my riding when we announced cooperation with the province of Nova Scotia on some very important initiatives. One in particular in the riding of Dartmouth—Cole Harbour was with Affirmative Industries, a project that will help mental health consumers and not only give them a place to live but allow them to build up a bit of equity and increase their dignity.

In my own province of Nova Scotia, a lot of money from the federal government has not been used; it has not been matched by the province. We are taking steps right now to make this more flexible so that the province can in fact build those houses.

There is $900 million for the environment and $1.5 billion for post-secondary education following the massive investment of the federal government on research in universities, Madam Speaker, which I know you are familiar with. We are now the highest public investor in research in the G-8.

There is also a $500 million increase in foreign aid.

How can one argue with those initiatives, initiatives that build on the priorities that are already in the budget?

I do want to address one issue, though. People say the budget is no longer our budget. The enhancement of certain measures as a result of the agreement with my colleagues in the New Democratic Party was the right thing to do in this Parliament, because Canadians want to see this Parliament work for all Canadians.

Let me be clear. The minister's budget as introduced in February was an excellent budget by any measure, a budget that is widely supported by Canadians and by the many stakeholder groups. In fact, the budget was immediately supported by the Leader of the Opposition, who said there was nothing in this budget that would necessitate a second election within a year. Shortly after that, the member for Central Nova said that “Canadians want to see Parliament work”, an interesting comment.

One of the key items in this bill calls for an increase in foreign aid, a particularly important issue for Canada. We are respected around the world and well known for our generosity when it comes to helping the less fortunate. It is to this portion of the bill that I would like to direct my comments this evening.

In recent years, the Government of Canada has significantly increased the amount of assistance that we provide to developing countries. Budget 2005 builds upon previous increases in aid by providing an additional $3.4 billion in international assistance over the next five years.

With these commitments, Canada is well on its way to meeting its goal of doubling its international assistance budget by 2010-11 and supporting the ambitious poverty reduction agenda of the United Nations millennium development goals. Clearly we are moving in the right direction.

There is no question that there is more we can do. On a personal level, I think we need to reach the Pearson goal of 0.7% as soon as we possibly can. It is our duty to the citizens of the world who need our help. I have spoken to that issue in the House before and I suspect I may again, but we are making great strides.

Canada's efforts are very much centred on helping the poorest countries, particularly those in Africa. This budget, in addition to increasing international assistance over the next five years, provides an additional $342 million for African health issues. This funding is helping to eradicate polio worldwide and to reduce AIDS, malaria and tuberculosis. Furthermore, the budget commits Canada to double our assistance to Africa by 2008-09 from our 2003-04 levels.

International assistance also involves helping countries and regions affected by conflict and humanitarian crises. Afghanistan and Haiti are examples. Stability and the absence of conflict are necessary for effective development cooperation. Accordingly, budget 2005 announced $500 million over the next five years to focus on promoting global peace and security.

Let us not forget the countries affected by the tsunami just after Christmas. Canadians were deeply affected by this tragedy and, in true Canadian style, responded generously with personal donations of approximately $200 million to help the victims begin to rebuild their shattered lives.

Immigrant communities in Canada were also galvanized into action. I had an opportunity to meet with the Sri Lankan community in Dartmouth a few weeks ago and talked to people whose relatives had been washed away in the tsunami. This money has been remitted to relatives and friends in the region and has played an important role in early efforts to build new homes, schools and businesses.

For its part, the Government of Canada recognized that these recovery efforts required both immediate and long term commitment of resources and responded with disaster relief and rehabilitation assistance. I am proud to say that Canada was also the first country to offer an immediate moratorium on debt payments owed by these countries.

Speaking of debt relief, Canada will continue to provide leadership on this issue. Our Prime Minister has a long record of international acclaim for his role as finance minister.

Most recently, on February 2, 2005, Canada announced a debt relief proposal that aims for donors to provide 100% debt service relief on all payments owed by up to 56 low income countries to the International Development Association of the World Bank and the African Development Fund until 2015.

Canada has committed to provide $172 million over the next five years to implement our share of this proposal. Our new proposal builds on a legacy of Canadian action on debt, such as the Canadian debt initiative. Under this initiative, Canada has gone beyond the international consensus and has put in place a debt moratorium on all payments owed to Canada by eligible poor countries.

In total, 13 countries have received over $600 million in bilateral debt relief and a further $600 million will be forgiven once the initiative is fully implemented. This past April, for example, the Minister of Finance announced the cancellation of all debt owed to Canada by Zambia, Honduras and Rwanda.

If I may, I will say a few words about the Minister of International Cooperation. She has led her department with but one overarching purpose: to help people in the developing world. I can think of few others as committed to the cause of justice as this minister.

The proposal in Bill C-48 authorizes the government to spend an additional $500 million on foreign aid. Canada is making its contribution as part of the global community. Passage of this bill will allow us to do even more.

The Minister of Finance has said that too many resources in developing nations are being soaked up to pay for yesterday's debts. That is true. Would it not be better for these countries to be able to invest in social and economic initiatives today so they can have a better quality of life tomorrow? The government has shown its commitment to help developing countries overcome the terrible burden of debt so they can reinvest in their own growth. Bill C-48 is a great step in that direction.

The bill is about making Parliament work and about making Canada better. It is the fiscal dividend of an economy that has been solidly managed over the past 12 years. The bill builds on a budget that reinvests in Canadian priorities, because we are now strong enough to do so and because it is the right thing to do.

This morning I was present when the Prime Minister and the premier of my province, Dr. Hamm, signed the Nova Scotia child care deal, part of our national child care strategy. The woman who acted as MC for this event is a long time child care champion from Dartmouth, with over 20 years of providing care to children, who runs a centre for those who are most in need. She spoke to the federal budget and said it is the most significant advancement that she has seen. She is not a partisan person by any means, but she said that this budget must be passed and she was right.

The federal budget is the most important investment in Canadian social and international priorities in recent times. Bill C-48 builds on that success and reflects the values and the beliefs of Canadians.

[Jim Prentice, Conservative, Calgary North Centre, AB]

Madam Speaker, I do not have time to have a full debate on Keynesian economics or Reagan economics, but I would ask the hon. member this. The member is an experienced member. I have referred in my comments to the NDP-Liberal deal and the possibility of a purchase of the NDP votes or perhaps just a renting of them for a period of time.

If one examines Bill C-48, there is no obligation on the part of the government whatsoever to honour any of the expenditure commitments which the NDP has agreed to with the government. Is the NDP not concerned that it has been had? There is absolutely no obligation on the part of the government to spend any money in pursuit of the NDP priorities. This is a rental agreement that is unlike any I have ever seen. I caution my friends to be careful.

[Alexa McDonough, NDP, Halifax, NS]

Madam Speaker, I know we have heard again and again, it is like a right wing mantra from the no longer progressive Conservatives, that the priority should have been to pass on more tax cuts to big corporations because that is what strengthens the economy and generates the jobs. However, I cannot believe for a moment that the hon. member and his colleagues are not aware of the considerable research on the most cost effective forms of job generation and the most effective ways to strengthen the economy.

It is literally true that detailed economic analysis would show that tax cuts are not the most cost effective way to generate jobs. It is direct public investment in things that not only have the job generation pay off but also the benefits of direct delivery, predictable, targeted, intended delivery, for high priority things that Canadians want.

On that alone, Bill C-48 should be supportable by anybody who makes the pretense that jobs need to be a more important part of this budget. It is absolutely well established and well documented that affordable housing, that housing construction and energy retrofitting are some the most job-intensive forms of investment that can be made.

Regarding post-secondary education, not only is there considerable job generation in post-secondary education funding investment, but in the other parts of that agreement for better training. What better way to strengthen our economy than to make that kind of investment? Let us not pretend there are not a lot of jobs directly in post-secondary education.

I could go on with more examples. If we take the four priorities contained within Bill C-48, the evidence is overwhelming that if we are only concerned about jobs, it is still clear that a more cost effective investment with lasting benefits to Canadians is to invest not in tax cuts for big corporations but direct services.

[Jim Prentice, Conservative, Calgary North Centre, AB]

Madam Speaker, clearly this is a scheme by which the Liberals and the NDP are working together to overtax Canadians, to engage in vote buying on a massive scale, $4.5 billion, in a way that is not in keeping with parliamentary history and our constitutional traditions.

What about everyone else who has been left out of the budget in the first place? What about the municipalities, fishermen, farmers, seniors and aboriginal Canadians? Why are we not pursuing at this time cuts in taxes?

My friend from Langley has raised that question. If we were to give everyday Canadians a tax cut of $1,000 per year, they could invest that in a RRSP instead of having that money gobbled up by increased government expenditures, which is what we have seen over the last five years to six years in the country. If we gave Canadians an extra $1,000 to keep in their pockets, they could spend it on their child care choices, or on senior citizens or on helping their parents. They could spend it on a wide variety of things.

If we as Canadians received that kind of a tax cut, $1,000 per year invested at 5% over 20 years would amount to $35,000 that Canadians could save. It would be $70,000 if we looked at it over 30 years. Those are the priorities of Canadians, saving money, being conscious of the needs of one's children, choice in parental care, choice in day care, choice in taking care of one's parents and working with them through their retirement. Those are the choices that Canadians would make. Many people would save that money and create jobs. Those should be the priorities of Canadians today.

Those are the priorities of the Conservative Party and that is how we would administer the finances of the Government of Canada, not in a way that we see in Bill C-48, which is such a flagrant abuse of the nation's finances.

[Mark Warawa, Conservative, Langley, BC]

Madam Speaker, I thank my colleague for sharing with us his perspective on Bill C-48. He brought up very good points. Canadians are overtaxed, they want to have some relief and the Conservative Party will offer that.

Bill C-48 is not what was originally presented to the House. It has been modified. We have $4.5 billion that was used by the government to crack a deal with the NDP. I would like to ask the member this. Why has the government has done that. Why would it take $4.5 billion of taxpayer dollars, not government dollars, to crack a deal with the NDP?

[Jim Prentice, Conservative, Calgary North Centre, AB]

Madam Speaker, I rise on behalf of the citizens of Calgary Centre-North to address Bill C-48, legislation which carries a rather euphemistic title “An act to authorize the Minister of Finance to make certain payments”.

The “certain payments” which the legislation refers to total $4.6 billion and the net effect of this legislation is to create a fund of surplus taxes from which the Liberals can purchase 19 NDP votes in the House of Commons. Never before has a government spent so much to acquire so little. In fairness, the NDP has not been purchased, it has just been rented.

This is surely no way for the Government of Canada to go about its business. My objection to this legislation starts from the fact that the Liberal government has become completely confused about the difference between taxpayer money and its own.

Let me cut to the chase. This bill purports to create a $4.6 billion political slush fund which would be financed from surpluses that the government expects to record in the 2005-06 and the 2006-07 years. The Liberals have promised the NDP, with all the sincerity of a daylight burglar, to spend that money on NDP priorities.

This is one of a number of very curious things which the Liberals are attempting to do in their efforts to cling to power at all costs. However, nothing which they have proposed is more curious than this. They are proposing to tax everyday Canadians at tax levels which would generate surpluses of $4.6 billion, so that they can have a blank cheque to spend those surpluses on purposes which suit their narrow political agenda. Only a government which has completely lost its fiscal and moral compass would propose such a thing.

As nearly as I can tell, the taxpayers of Canada have never consented to be governed in this way. Certainly the taxpayers in Calgary Centre-North have never agreed to that.

Where I come from, the taxpayers play by the rules. We pay our taxes and we expect that we are being taxed to pay our fair share of the cost of running this country. No one in my riding has ever consented to pay taxes at artificially high levels which would cover the cost of administering the Government of Canada plus the cost of accumulating a $4.6 billion slush fund to allow the Liberals to engage in partisan vote buying to mask their own corruption.

This is a vision of fiscal responsibility stood on its head. It is a legislative commitment to $4.6 billion in overtaxation coupled with a written commitment to squander it.

I object to this proposal on many grounds but also on constitutional grounds. This approach to taxation is unprecedented. In my view, it is entirely inconsistent with 817 years of parliamentary history, since something called the Saladin Tithe of 1188, in the reign of Henry II, in a far off place quite distant from here.

I would not want to lose my Liberal friends on a journey through parliamentary history, but it is noteworthy that since that time governments, parliaments and taxpayers have had a fairly uneasy but successful truce according to which Parliament approves the government's spending plans and Parliament consents to taxation to support those expenditures. No more, no less.

This approach has actually worked reasonably well throughout parliamentary history. In fact, the Saladin Tithe of 1188, which I spoke of, financed the third crusade which was, like the Liberal government, pretty much a complete disaster. On the third crusade, Frederick I of Germany drowned before he reached the Holy Land and Philip II of France retired, returning home, shortly after leaving. It all has a ring of familiarity to it.

However, after 817 years, the Liberals have a better crusade, that of overtaxation without representation. They will now ask Parliament for a blank cheque.

The government proposes to overtax all Canadians to the tune of $4.5 billion, and in return it offers to spend those surplus moneys on an assortment of promises which one would generously call ideas. Clause 3(c) of the statute would allow the government to make payments to anybody. Clause 3(b) would allow it to enter into an agreement with anyone.

It is all very perverse and it is all very irresponsible. Frankly, if there is no precedent to call it unconstitutional, it is only because it is so perverse that no one else has tried to do it in modern parliamentary history.

The chief economist of the TD Bank, who understands what is happening here, noted in a May 7 National Post editorial as follows:

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

The residents of Calgary Centre-North want no part of this. The constituents of my riding will never submit to overtaxation, especially institutionalized overtaxation administered by a corrupt Liberal government.

The legislation undermines our nation's finances. What we need in the country is less government, not more, more efficiency in government expenditures, not less and more responsible and accountable taxation, not less. What we really need in the country is a responsible government with a strong new prime minister, aided by a group of decent men and women who would provide some stability and restore some common sense to our fiscal path. The hon. Leader of the Opposition will bring all of that to Canadians in the days ahead.

We need smart fiscal policies, not I would submit, Liberal fiscal policies. We need to reduce marginal tax rates. We need to reduce average tax rates. We need to constrain government spending and ensure that the men and women, for example, in my riding of Calgary Centre-North are able to keep more of their own money so they can make their own child care choices, their own choices for taking care of senior citizens and their own spending choices.

We need to eliminate taxes that penalize investment, that penalize savings and are punitive toward job generation. We need to free up the genius and the financial flexibility of the private sector, especially the small business sector which creates many of our jobs.

We need less regulation, less red tape and less punitive and confusing tax legislation. Instead the government brings forward a bizarre proposal of institutionalized overtaxation.

Who supports the government? It is not the people in my riding. The people of Calgary Centre-North pay their taxes and they do not support an artificially inflated tax regime that accumulates $4.5 billion of vote-buying money. Where are these citizens who want to be overtaxed so the Liberals can accumulate a $4.5 billion budgetary surplus, which I describe as a slush fund? They do not live in my riding.

I hear from parents who are struggling to raise their children. They do not want to be overtaxed. I hear from elderly Canadians, senior citizens in my riding. They do not want to be overtaxed. I hear from new Canadians, especially Asian Canadians in my riding struggling to make their way in this new country that they have chosen as their home. They do not want to be overtaxed either. I hear from single parents, students, white collar workers, blue collar workers, working mothers and stay at home moms. None of them have told me they want to pay taxes at a level that leads to surplus overtaxation.

Perhaps I am wrong in understanding my constituents. I can make a mistake just like anyone else I suppose. My staff and I checked through all the emails, letters, notes, cards and petitions that we have received. It turns out there is not a single person in my riding who has ever contacted me and asked that they submit to overtaxation.

I do not support the bill, which I regard as a perverse use of Parliament. It is overreaching and overtaxing. It undermines our nation's finances. It purports to be a finance measure when in truth it is nothing more than a naked attempt to impose surplus taxation, to write a corrupt government a blank $4.5 billion cheque so it can criss-cross the nation buying votes, attempting to distract itself and voters from its own corruption, scandal and criminality. I want no part of it and neither do the good citizens of Calgary Centre-North.

[Gary Carr, Liberal, Halton, ON]

Madam Speaker, there are five areas in the budget which I would like to talk about.

There are five commitments that I made in the last election. Members will remember during that period, which was not that long ago, the number one issue facing Canadians. Right across the country, in Atlantic Canada, including the riding of my hon. friend from the Edmundston area, Quebec and every other province, health care was the single most important issue in the last election.

The Prime Minister made a commitment in that election campaign to deal with the health care issue. I was very proud to stand with him in Oakville at a meeting with people from Cancer Care Ontario when he said he was going to tackle the issue. It was a very moving dialogue. We talked about the problems with cancer. The Prime Minister gave them a commitment that he was going to put money into health care.

There is a lot of cynicism about the political process and politicians keeping their promises. The Prime Minister when he was the finance minister cleaned up the finances left by the previous Conservative government. He brought us back to being able to invest in the social programs. He made a commitment to people that he was going to put money into health care, some $41.3 billion. He had an agreement with all political parties. All provincial leaders representing every political party signed it, as did the territorial leaders.There were premiers from NDP governments, Liberal governments, Conservative governments.

The Prime Minister got the deal in the single most important issue facing Canadians. He did it not two years down the road, not three years down the road, not four years down the road. He did it after the election, which was on June 28, 2004, and by September he had a deal signed by every premier and every territorial leader of every political stripe.

That was the single largest reinvestment in health care since the introduction of medicare. On that particular issue the Prime Minister came through and did what he said he was going to do.

There are four other areas I want to talk about and explain how they relate to building on the priorities in Bill C-48.

On cities and communities, in the last budget we had already put in $7 billion in the GST rebate. We then promised we were going to increase it by $5 billion more and we came up with that commitment. Agreements were signed with Alberta and B.C. recently.

Child care is a very important issue as well. We have put $5 billion over five years into child care. We are very proud to have an agreement with the Ontario government to virtually double the number of child care spaces in the province of Ontario. That is a phenomenal record for a government that has been in less than a year, in making a commitment to the people on the child care issue and doubling it in the province of Ontario to $5 billion.

On health care we met our commitment. On cities and communities we met our commitment. I have met with mayors and the regional chair in my riding. They all want us to pass the budget, along with Bill C-48. On child care we have met our commitment as well.

I want to talk about the balanced budget provision. There was a lot of talk on the other side that we have to be fiscally responsible. It is a little rich coming from the Conservatives. At the end of their mandate when they left government after eight years there was a deficit of $40 billion. In the year that they were booted out and left with only two seats in the House, the deficit was actually heading toward $50 billion. A deficit of close to $50 billion was left for the Prime Minister when he was minister of finance to clean up. He had to clean up the mess left by Brian Mulroney. The Conservative government destroyed this country economically, politically and socially for many years to come.

When I look across I see some of the members who were part of that Brian Mulroney government. They are now back again. I say to them that the people of this country are never going to let them ever have control of the finances after what they did to this country and bankrupted us to the tune of $40 billion.

This Prime Minister when he was the minister of finance made a commitment to the people of this country to balance the budget. My hon. friend the parliamentary secretary will know that we have had eight straight balanced budgets. That is the first time since Confederation that we have had balanced budgets.

The people on the other side whose party gave us the largest deficit in the history of the country are trying to say that we do not know how to run the finances of the country. I look across the way and obviously there are some very young members who may not have been around in 1990 in terms of political careers, but there are some members over there who actually sat in the cabinet of the government that created a $40 billion deficit after eight years in government. And they are trying to tell us that we do not know how to have fiscally responsible budgets, when for eight straight balanced budgets we have done it.

It is not only a commentary to the current Minister of Finance and his parliamentary secretary, for whom I have a deep respect, but also to the Prime Minister who as the former minister of finance set that in place and cleaned up the mess. He did what he said he was going to do and balanced the budgets. Every other major country in the G-7, Japan, Italy, Germany, France, Britain and the United States, are all running deficits.

All the members opposite, the right wing group that came out of that reform ideology, who like George W. Bush and the tax cuts in the U.S., I will remind them that President George W. Bush is running a $1.4 trillion deficit over the next five years. I did not say billion; I said trillion. The U.S. cut taxes too much and ended up with huge deficits, to the point where in U.S. magazines some people are saying that is a bigger impediment to the security of the United States than some of the security measures in the rest of the world dealing with terrorism. That is how fundamentally difficult it is for Americans.

Members opposite have come out of that right wing reform ideology, including their leader who came through all that process. Those members have changed their party's name so many times it is as though they are in the witness protection program. They do not want anyone to know who they are. We all remember they were the reform party. Then they were the conservative-reform-alliance party, and I do not mean to be impolite, but it was known as CRAP in those days. Then they changed the name to the alliance party. Those members have changed their party's name so many times it is as though they are in the witness protection program. They want to hide their past.

The Conservatives look to George W. Bush and the Americans as the be-all and end-all. I say to those on the other side, look at the deficit he is running. It is an absolute disgrace with a trillion dollar deficit which will affect us. It is affecting the dollar and interest rates. The men and women on the other side who worship George W. Bush and his fiscal policies should be embarrassed for advocating the same thing that is literally bankrupting the U.S.

I will not even get into social security. We have a pension system that is well funded and will be there when I retire. When Emily, my hon. friend's baby daughter retires, the money will be there. In the U.S. the social security is not even secure. People say there will not be money there.

When I hear members on the other side say that Bill C-48 is not fiscally responsible, I say to them that they have absolutely no credibility whatsoever.

[Alexa McDonough, NDP, Halifax, NS]

Madam Speaker, I would like to ask a few questions of the Bloc Québécois member who has just spoken.

I listened very carefully to the member's speech. I was with him when he condemned the government for the introduction of a budget that failed to deliver what was needed for affordable housing and energy retrofitting. I was with him absolutely all the way when he condemned the budget because it did not put money, as promised, into post-secondary education and training. I was with him all the way when he talked about how disgraceful it was that the original Liberal budget introduced in the House did not commit in any meaningful way to overseas development assistance. It did not even come close to putting in place timetables and targets to deliver on our longstanding commitment, actually a standard set by Canada in the first instance, of moving to commit 0.7% of our GDP to overseas development assistance.

Then he lost me, because he then said that his party could not support Bill C-48, which actually brings in concrete remedies for every one of those things that the Bloc members say was wrong with the original budget.

Let me make it absolutely clear that the budget does not deal with all of the shortcomings. It does not deal with everything we would like to see remedied. However, it is absolutely not accurate to characterize the budget as failing to address any of these things which the member himself outlined as priorities, because it precisely commits to deliver $4.5 billion. I get excited at the thought of that money being directed to the very priorities the member talked about.

I wonder if he could explain how it is that the very priorities he mentioned now are addressed in Bill C-48, yet he is rationalizing his way to a partnership with a party that he absolutely knows would not stand behind any of those priorities. It never has and never will. The damage and destruction caused by that party, by the ultra cons, the no longer progressive Conservatives, is exactly why we are in desperate shape trying to rebuild commitments to affordable housing, post-secondary education, energy retrofitting, public transit, all of the things that have been torn down because of the responsiveness of the Liberal government to those pressures not to do those things. Now the member wants to enter into an alliance with that party and call it progress. How does he explain that?

[Guy Côté, Bloc, Portneuf, QC]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Ken Epp, Conservative, Edmonton—Sherwood Park, AB]

Madam Speaker, I am curious about one thing. The member is urging us to support this budget but this stuff was not in the budget. If we look at the original budget that the Minister of Finance read to the House, these things were not there. I wonder whether he has any concern at all about the fact that the protocol on the budget and budget speeches is being destroyed by the Liberal government.

It used to be that if there was a leak from a budget, the Minister of Finance resigned because it was considered so sacrosanct. Under the Liberals, leaks have become sort of the play of the day. It also used to be that once the finance minister delivered the budget in the House the things that he announced were pretty well written in stone so that businesses and individuals could plan because they knew the new rules.

We now have things in Bill C-48, which were not in the budget, that are massive changes in the spending patterns and the reduction of the amount that is attributed to the reduction of our debt and he is saying that we ought to support the bill. In a sense, he is supporting a totally ad hoc procedure in terms of government budgeting, which I do not think is worthy in our country.

[Wajid Khan, Liberal, Mississauga—Streetsville, ON]

Mr. Speaker, it is my privilege to rise today to speak to an important document, Bill C-48.

It is becoming increasingly clear from what we have heard today that Bill C-48 is not as disgraceful as the leader of the official opposition has said. In fact, I would like to take a moment to congratulate my colleagues on this side of the floor for highlighting just how important the measures contained in Bill C-48 are to Canadians and how out of step the official opposition is with the Canadian public in terms of it priorities. After all, we are talking about a bill that strengthens the social foundation of a budget that the official opposition once endorsed.

When people talk about a hidden agenda, I cannot blame them. From what we have seen in recent weeks, it has become evident that the official opposition will say just about anything to score political points. Take for example the case my colleague made earlier about federal gas tax sharing with cities and communities. The official opposition voted against this at its policy convention.

Then, after realizing how popular this budget initiative was with Canadians, it reversed its course and said it supported it. It sometimes seems like it wants to adopt the entire budget as its next election policy platform even though those members say that they will be voting against it. I know that imitation is the sincerest form of flattery but this is getting ridiculous. It clearly illustrates where the official opposition is looking for leadership. It is rather sad and somewhat telling that it is not within its own ranks.

Why is the official opposition dithering? In short, because the official opposition knows full well that both the budget and today's bill reflect the highest priorities of Canadians and it is beginning to appreciate the consequences of delaying and compromising Canadians' aspirations for a wealthier and more secure society.

Today marks a defining moment. Canadians will remember how each and every one of us vote because it is their future at stake. Bill C-48 and the budget that it complements are the litmus test for where we all stand on these matters. It will separate those who care about Canada from those who care about scoring political points.

What is in Bill C-48 that the official opposition finds so disgraceful? Is it the $900 million more in federal transfers for municipalities so they can make crucial investments in public transit, cut pollution and reduce gridlocks?

For the riding of Mississauga--Streetsville, which is located in Mississauga, the sixth largest city in Canada, to connect Mississauga to Toronto is a great priority. It would be environmentally friendly. It would help families spend more time in their homes and with their children. It would improve the quality of life for Canadians who live in our communities and cities.

Perhaps the official opposition does not like the $1.5 billion more to make post-secondary education more accessible or the $500 million more in foreign aid. Maybe it is the low income housing energy retrofit program that the official opposition finds so distasteful.

For Canadians, the merits of these initiatives speak for themselves. Given that some hon. members are so out of line with the priorities of Canadians it may be appropriate to explain in greater detail why these programs are so important to Canadians.

Support for affordable housing for low income Canadians is money that will reinforce the Government of Canada's commitment to help alleviate problems associated with the affordability and stock of adequate low income housing.

As some hon. members are no doubt aware, the Government of Canada invests $1.9 billion each and every year in order to support 640,000 families living in existing social housing units across the country. Funding for these social housing units has been in place for many years and represents the cornerstone of federal support in this area.

That is not all the government has done. Let us look at the 2001 budget's affordable housing initiative. This program invested $680 million over five years to help increase the supply of affordable rental housing. It did so by providing capital grants to builders to encourage the construction of new affordable rental housing. The success of this program led to an additional investment of $320 million over five years in the 2003 budget.

Again, that is not all the government has done. Budget 2003 extended the Canada Mortgage and Housing Corporation's housing renovation programs for an additional three years at an annual cost of $128 million. This will preserve the existing stock of affordable housing through renovation and renewal and help low income persons with critical housing repair needs.

In short, the Government of Canada has made new funding commitments for almost $3 billion since 2000 to help ease the housing affordability challenges faced by low income Canadians. Bill C-48 strengthens these efforts because that is what Canadians want.

I think it is very telling indeed that the official opposition considers these types of measures disgraceful. It points to its overall disdain for investment to help those who are least able to help themselves. Fortunately, most Canadians would disagree very strongly with the hon. Leader of the Opposition. Most Canadians understand that Bill C-48 reflects the principles of social justice that inspire this government and defines us as a nation.

Canadians understand that it will create cleaner, safer and more productive communities. It will help ensure that more of us are able to share in the promise of our society. It will lower heating costs for those who need them lowered the most. It will help thousands of low income Canadians put a roof over their heads. It will not compromise the gains that Canadians have realized from the elimination of the deficit and the ongoing reduction of the debt.

I myself just do not understand what is so disgraceful about this but I am not the one who ultimately will be judging. Canadians will be the ultimate judge of that. It is simply my hope that hon. members will bear this in mind when they vote on this bill.

This bill affects the very lives of people. Canadians expect us to do what is good by them. Canadians expect their government to invest in the programs that are the envy of the world and affect their very lives.

I urge my colleagues in the House and members of the Conservative Party to please support this bill and the budget, and do not let the Bloc divide us. Let us make Canada strong and let us look after Canadians as they expect us to do.

[Gary Goodyear, Conservative, Cambridge, ON]

Mr. Speaker, I am honoured today to stand in this House on behalf of the constituents of Cambridge, and North Dumfries in my riding, to speak to the government's various budgets.

I will speak to Bill C-48, but I will also make reference to the other budget, the NDP-Liberal alliance, which I feel must be stopped in order to save Canada from the economic perils of overspending and job loss.

The Liberals have introduced an institutional type of child care legislation that they say will cost $5 billion over five years. That is $1 billion a year, but yet unbiased experts say that will never happen. The Canadian Council on Social Development says that the program will need at least $12 billion per year. That is an $11 billion shortfall. Where do we expect that extra money to come from? It will come from taxpayers, on the backs of taxpayers.

The offer that the Liberals have made is only for some children, not all children. What about all the other children who will be left out of the program? I am gravely concerned that too many parents in my riding will have to drive over an hour to partake or use one of these publicly funded centres. I am also concerned that there will be huge waiting lists, as there are in the Quebec system, and the extreme budget overruns into the tens of billions of dollars will occur at the expense of taxpayers.

Who chooses which children get to participate in this program? If we cannot afford health care today, how can we afford such a ridiculous over-funded endorsement. The Conservative Party has a much better plan that will work to address the needs of all parents without bankrupting all taxpayers. The Liberal system discriminates against stay at home parents, shift workers, and those living outside larger centres and ethnic traditions.

We now live in a country so overburdened with tax that one parent must work just to pay the family's taxes. We will put money directly into the hands of parents, so they can make their own child care choices. We believe that Canadian parents want and deserve child care options. It should not be up to the government to dictate the only option for parents nor how children must be raised. The only option that I have is to vote against something that removes choice, is completely without proper funding, and as such will either immediately or eventually let parents down.

I also have serious and grave concerns about our firefighters, police, border security personnel and corrections officers. Rather than redirect wasteful spending to shore up and protect those who are required to protect us, the government still refuses to cancel the failed and completely useless gun registry. Despite grand Liberal promises to reduce costs for a registry that was only supposed to cost $2 million in the first place, Canadians continue to see their hard earned tax dollars poured into this black hole.

We think that money should be put into the hands of our police, so that they can get criminals off the street. The government promised to put in place a national sex offender registry, but where is it? My riding of Cambridge, and North Dumfries, has over 200 offenders. Recently, one reoffended and the police had no idea that he had been returned to Canada.

The Deputy Prime Minister's office officials said that the police should have been told. The Canada border security said something completely different. The fact is that the registry, if there is one, appears to be a typical Liberal program that is voluntary. Heaven forbid we offend the offenders.

I am concerned about our border officers. Liberals believe our security is okay and that we have smart borders. The fact is that we have approximately 225 unguarded roads between Canada and the United States. I stood here in the House while members opposite defended what must be one of the most ridiculous statements I have ever heard. It was something to the effect that less border security is more safe.

That is not smart borders; that is dumb borders. What next? Are we going to nail pictures of guards into the booths of the rest of these border crossings? These crossings have hundreds of cars cross them, unseen, undetected and unsearched. Well, I guess that is voluntary, too. Maybe a few bucks spent here would catch all these illegal drugs and firearms this government thinks we need to register.

However, I cannot figure it out and that, too, is why Canadians will be pleased that we cannot support this budget. People are growing sick and tired of policies that put criminals ahead of victims, lawbreakers ahead of law abiders.

It is businesses that create jobs and the hardworking Canadians who drive our economy. It is these very people who have had the door slammed in their faces by the new NDP-Liberal alliance. This deal shows just how out of touch these parties are with real Canadians. This is simply a massive spending exercise by the Liberal government in an attempt to cling to the perks of power.

The NDP and Liberals think that businesses somehow take these tax cuts and stuff them into mattresses, and that they have billions of dollars in surpluses stuffed away in trust funds and trust accounts inaccessible to Parliament. However, the fact is these businesses reinvest. They build another wing to their factories. They buy more equipment. They spend money to become competitive, and guess what? They hire people to fill those new wings and to operate that equipment.

This budget proposes that we buy what looks like $10 billion in clean air credits from other countries. That will not give us one molecule of clean air for my constituents in Cambridge. The asthma rate in southern Ontario is at a life threatening increase. It is a life threatening danger to our children and a preventable burden to our health care system. I cannot support a budget that pretends to emphasize clean air and provide environmental protection.

I cannot support a budget, or this budget in particular, or the new NDP one frankly because it would kill jobs at Budd Automotive and other vital industries all across Ontario and Canada. It would not guarantee one molecule of clean air for Cambridge, Kitchener or Waterloo, which is very important to me. It would not provide one more doctor, save one life or help anyone secure a job.

I support the Conservative Party plan that would give parents choices, allowing them to make decisions on how their children would be raised. That is the way I believe it should be done. I support the Conservative Party plan to fight crime and criminals, and to protect our borders, not just talk about it. I support the Conservative Party plan to reduce taxes and put more of these huge surpluses back into the pockets of the very people who earned them and know best how to spend them.

Canadians need truthful fiscality. They deserve transparent accounting and accountability. Neither of these budgets, frankly, is good enough for Canadians. I understand the members opposite cannot do better than this, but Canadians deserve better just the same. I cannot support this budget or the other budget.

[Roy Cullen, Liberal, Parliamentary Secretary to the Minister of Public Safety and Emergency Preparedness]

Mr. Speaker, I welcome this opportunity to enter the debate on Bill C-48.

In December 2003, the Prime Minister announced the creation of a new Department of Public Safety and Emergency Preparedness. The creation of this new department and portfolio integrates, under one minister, the core activities of the previous Department of the Solicitor General, the Office of Critical Infrastructure Protection and Emergency Preparedness and the National Crime Prevention Centre and the new Canada Border Services Agency.

The Department of Public Safety and Emergency Preparedness serves as the central nervous system for a security portfolio that includes the Canadian Security Intelligence Service, the Royal Canadian Mounted Police, the Canada Firearms Centre, the Correctional Service of Canada, the National Parole Board and the Canada Border Services Agency.

In the face of the complex times in which we live, Canada requires, and the public expects, a comprehensive and integrated approach to public safety. Through the public safety and emergency preparedness portfolio, the Government of Canada has demonstrated its belief in protecting the safety and security of its citizens.

Since 9/11 the government has invested more than $9.5 billion in initiatives to strengthen domestic security, improve our emergency preparedness and response and contribute to international security efforts.

We must, however, continue to invest in stronger and smarter borders to protect both our security and our economic interests; to ensure safe communities by supporting crime prevention, gun control and Canada's corrections and parole systems; and finally, to maintain anti-terrorism measures, policing and preparedness for all types of emergencies.

This is just what the government did in budget 2005. By allocating the necessary funding to maintain the forward momentum of this important work, it reaffirmed a commitment to both public safety in Canada and meeting our global responsibilities.

Specifically, budget 2005 allocated more than $1 billion to support key elements of the national security policy. Hon. Anne McLellan, the Minister of Public Safety and Emergency Preparedness, tabled this policy in this House just over a year ago and this week tabled a report on the progress of this important policy.

Under the national security policy, we are investing in emergency management, including $56 million over five years for emergency management initiatives and $34 million over five years in pandemic influenza preparedness.

We are also strengthening transportation security, by allocating $225 million over five years to further enhance the security of the country's marine transportation system and $88 million over five years for Canada to work with the U.S. to increase targeting and sharing information on high risk cargo.

As well, we are creating a more secure border through additional funding of $433 million to enhance the government's capacity to manage the flow of people and goods to and from Canada.

We are also investing $117 million over the next five years in the integrated proceeds of crime initiative, to seize profits and assets from criminal organizations in an effort to combat organized crime.

Finally, we are working to tackle crime before it happens by investing an additional $30 million a year over the next three years to support community based crime prevention initiatives as part of the national crime prevention strategy.

I have seen the benefits of that crime prevention program working in my riding of Etobicoke North, where we have had a record of some gun related and drug related crime. These programs are working.

This whole suite of issues and elements of the budget that I have described is comprised of these important initiatives. That is why we need to support the budget before the House.

There is no question that we are making progress. In fact, just this week, former U.S. homeland security secretary Tom Ridge praised Canada's cooperative efforts to guard our border and defend against terrorism. He said in Toronto on Wednesday:

I don't accept the thesis that Canada is lenient or hasn't done what it needs to do to...advance their interest and do their share to combat terrorism.

He said further:

The law enforcement and intelligence community collaboration is excellent.

Doing our share is also demonstrated by several other actions that have taken place within the public safety and emergency preparedness portfolio.

The government operations centre and the Canadian cyber incident response centre have been established and are operational on a 24/7 basis.

The Government of Canada is implementing the national emergency response system, which ensures that Canada is prepared for any type of national emergency by adopting an “all hazards” approach.

Federal, provincial and territorial governments have established a permanent, high level forum on emergencies. It held its first meeting in more than a decade in January 2005.

Finally, 18 federal departments participated in Triple Play, a joint Canada-U.S.-U.K. counterterrorism exercise from April 4 to 8, 2005.

That said, we clearly have a full agenda ahead of us. We will continue to strengthen cooperation with the provinces, territories and first line responders and look for new ways to leverage our capabilities. We also will aim to develop an integrated approach to emergency management and national security across government so that we are ready to adapt to changing circumstances.

Let me close by saying that we can be proud of what we have accomplished in a relatively short period of time. The public safety and emergency preparedness portfolio is becoming much more efficient and effective at delivering a truly fundamental public service: helping to protect the safety and security of Canadians. That effort now has a solid foundation on which to build, a foundation enhanced by the allocations in budget 2005.

The Government of Canada must play a fundamental role in securing the health and safety of Canadians, while ensuring that all Canadians continue to enjoy the benefits of an open society. That is why it is committed to ensuring that Canada's public safety and security systems remain effective, fair, progressive and uniquely Canadian, building on a culture of cooperation and engagement from neighbourhoods to nations.

The investments of budget 2005, rather than being just a reactive response to threats facing our country, represent investments that Canada needs and that Canadians want and expect to ensure their collective safety and security.

Such expectations by our citizens are their fundamental right, which is why we as a government must honour such a right and why we in this House need to keep this Parliament working, keep this legislation moving and pass this budget: so that Canadians can benefit both from these measures that affect our public safety and national security and from the many other excellent measures contained in budget 2005.

[Jeff Watson, Conservative, Essex, ON]

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

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

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

[Monte Solberg, Conservative, Medicine Hat, AB]

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

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

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

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

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

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