Bill C-13 (Historical)

Budget Implementation Act, 2006

An Act to implement certain provisions of the budget tabled in Parliament on May 2, 2006

Part 1 amends the Excise Tax Act to implement, effective July 1, 2006, the reduction in the Goods and Services Tax (GST) and the federal component of the Harmonized Sales Tax (HST) from 7 to 6 per cent. It also amends the Act to provide transitional rules for determining the GST/HST rate applicable to transactions that straddle the July 1, 2006, implementation date, including transitional rebates in respect of the sale of residential complexes where transfer of ownership and possession both take place on or after July 1, 2006, pursuant to a written agreement entered into on or before May 2, 2006. The Excise Act, 2001 and the Excise Act are amended to increase the excise duties on tobacco and alcohol products to offset the impact of the GST/HST rate reduction. The Air Travellers Security Charge Act is amended to ensure that rates for domestic and transborder air travel reflect the impact of the GST/HST rate reduction. Those amendments generally apply as of July 1, 2006.
Part 2 implements income tax measures proposed or referenced in Budget 2006 to
(a) reduce personal income taxes;
(b) increase the child disability benefit;
(c) increase the refundable medical expense tax credit;
(d) eliminate capital gains tax on charitable donations of publicly-listed securities and ecologically-sensitive land;
(e) reintroduce the mineral exploration tax credit for new flow-through share agreements entered into before April 2007;
(f) expand the eligibility criteria for the disability tax credit;
(g) expand the list of expenses eligible for the disability supports deduction;
(h) expand the list of expenses eligible for the medical expenses tax credit;
(i) clarify the eligibility of home renovation and construction expenses for the medical expenses tax credit;
(j) double the amount of disability-related and medical expenses that can be claimed by a caregiver;
(k) introduce a tax credit in respect of adoption expenses;
(l) introduce a tax deferral for shareholders of agricultural co-ops;
(m) reduce corporate income taxes;
(n) eliminate the federal capital tax; and
(o) extend the carry-over period for non-capital losses and investment tax credits.
Part 3 amends Schedule I to the Excise Tax Act to repeal the excise tax on clocks, items made from semi-precious stones and items commonly known as jewellery, effective May 2, 2006.
Part 4 amends the First Nations Goods and Services Tax Act to facilitate the establishment of taxation arrangements between the government of specified provinces and interested Indian Bands situated in those specified provinces. It also amends the Yukon First Nations Self-Government Act to provide transitional income tax measures consistent with negotiated agreements.
Part 5 amends the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and the Income Tax Act to harmonize various accounting, interest, penalty and related administrative and enforcement provisions. These amendments will apply based on an implementation date that is the later of April 1, 2007, and Royal Assent. It also amends the Excise Tax Act to confirm that debt collection services that are generally provided by collection agents to financial institutions are not financial services for GST/HST purposes and are therefore taxable for GST/HST purposes.
Part 6 enacts the Universal Child Care Benefit Act to assist families by supporting their child care choices through direct financial support to a maximum of $1,200 per year in respect of each of their children who has not attained the age of six years. It also makes consequential and related amendments to the Income Tax Act, the Employment Insurance Act, the Children’s Special Allowances Act and the Old Age Security Act.
Part 7 amends the Federal-Provincial Fiscal Arrangements Act to determine the amount of the fiscal equalization payments to the provinces and the territorial formula financing payments to each of the territories for the fiscal years beginning after March 31, 2006 and to authorize the Minister of Finance to make an additional fiscal equalization payment to British Columbia and Newfoundland and Labrador, and to make an additional territorial formula financing payment to Yukon and Nunavut, for the fiscal year beginning on April 1, 2006.
Part 8 provides for a total payment of $650,000,000 to the provinces and territories for the fiscal year 2006-2007 in respect of early learning and child care. It provides for payments to the territories for the fiscal year 2006-2007.
Part 9 authorizes the Minister of Finance to enter into an agreement to provide protection to mortgagees in respect of mortgage insurance policies that are provided by a mortgage insurer that is approved by the Superintendent of Financial Institutions to sell mortgage insurance in Canada. It also fixes the maximum amount of such protection and determines how that amount can be changed.
Part 10 extends the sunset provisions of financial institutions statutes by six months from October 24, 2006 to April 24, 2007.
Part 11 amends the Canadian Forces Superannuation Act, Public Service Superannuation Act and the Royal Canadian Mounted Police Superannuation Act to change the existing formula by which adjustments are made to a contributor’s annuity.
Part 12 enacts the Mackenzie Gas Project Impacts Act, the purpose of which is to create the Corporation for the Mitigation of Mackenzie Gas Project Impacts. The corporation will provide contributions to regional organizations that will fund projects that mitigate the existing or anticipated socio-economic impacts on communities in the Northwest Territories arising from the Mackenzie gas project. The Part also provides that a payment of $500,000,000 may be made to the corporation and adds the name of the corporation to the schedule of certain federal Acts.
Part 13 amends the European Bank for Reconstruction and Development Agreement Act to permit the European Bank for Reconstruction and Development to carry out its purpose in Mongolia and to allow the Governor in Council to amend, by order, the schedule to that Act. It amends the Freshwater Fish Marketing Act to increase the Freshwater Fish Marketing Corporation’s legislative borrowing limit from thirty million dollars to fifty million dollars. It also amends the Public Sector Pension Investment Board Act to create share capital for the Public Sector Pension Investment Board

Budget Implementation Act, 2006

[Bill Siksay, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I listened with interest to the comments by the hon. member on the environmental aspects of the budget and what was and was not in the budget. In fact, the Green Budget Coalition has said that there is virtually nothing in the budget to make good on the government's throne speech commitment to tangible reductions in pollution and greenhouse gases. The coalition stated:

Furthermore, the federal government missed a great opportunity to announce the phase-out of the $1.4 billion in annual subsidies to the oil and gas sector, and the over $150 million annually to nuclear power. For decades, these “pollution subsidies” have contributed to market failure, industrial inefficiency, unsustainable energy consumption, and unnecessary pollution and health damage.

Could the member comment on why he thinks the Conservative government kept those $150 billion worth of subsidies to the oil and gas industry in its budget?

[Thierry St-Cyr, Bloc, Jeanne-Le Ber, QC]

Mr. Speaker, that is what we are asking for.

We have often criticized subsidies and gifts given by the Conservative government to oil companies. We had every reason to expect the Minister of the Environment to demonstrate a true desire for change in this first budget. We wonder whether she is not, in fact, the “minister of oil and gas”, since this budget provides nothing for the environment.

As for the budget overall, we will support it because it promises to correct the fiscal imbalance, which is something the Bloc Québécois has worked on for quite some time, as it is in the best interest of Quebeckers. Nevertheless, we will remain vigilant throughout the year.

[Dan McTeague, Liberal, Pickering—Scarborough East, ON]

Mr. Speaker, I would like to take this opportunity to welcome the new member. I know that he is a very passionate individual and I wish him luck in his career in the House of Commons.

His comments are interesting. He has done a good job exposing the problems and shortcomings of this budget. I find it very interesting that he wants to remain vigilant, yet at the same time, he supports the Conservative government in spite of the problems that he himself has raised.

As for the NDP member's comment regarding the nuclear industry, personally, I do not believe that this industry causes pollution.

I would simply like the member to explain how he can, ironically, support a budget that, according to him, is not really a budget since it has so many holes and gaps. Is it not strange that he supports this budget, although his speech clearly indicates that he opposes it?

[Thierry St-Cyr, Bloc, Jeanne-Le Ber, QC]

Mr. Speaker, I would first like to clarify something: I am not here to make a career in this place, only to support the cause of Quebec sovereignty.

I am not very surprised that the Liberal Party plans to vote against the budget. The Liberals never even acknowledged the fiscal imbalance. For 13 years, they demonstrated arrogance and scorn toward Quebeckers by refusing to recognize this problem and by refusing to give Quebec what it needs to reach its potential.

We will support this budget because it includes a promise about the fiscal imbalance. This is a transitional budget. We will see whether the Conservative government keeps its promises to Quebeckers.

[Rob Merrifield, Conservative, Yellowhead, AB]

Mr. Speaker, there were a couple of things couched in my hon. colleague's comments on which I would like some clarification.

The oil and gas industry is very much a part of my riding of Yellowhead. Some of the comments about the subsidy were rather extreme. Alberta has actually allowed a 1% royalty until recovery of cost of project. To deem that a subsidy, I would challenge. After it redeems its cost of recovery, the royalty is then 25%. The majority of that goes not to Albertans, but to the federal coffers and, likewise, across the country, including Quebec.

The member commented on the child care provisions. The budget provides $1,200 for a child under the age of six, and 125,000 new day care spaces. I have a difficult time discerning how that challenges Quebec's provincial child care program. It actually helps it. How does this challenge Quebec's program?

[Thierry St-Cyr, Bloc, Jeanne-Le Ber, QC]

Mr. Speaker, it is very simple. Through their income taxes, Quebeckers are already paying for a child care system in Quebec. This enables them to pay less out of pocket, but means they get fewer income tax credits from the federal government. The federal government puts away $250 million of Quebeckers' money every year because the people of Quebec made this choice. The Canadian federation is unable to take this choice into account and to respect it.

[Don Bell, Liberal, North Vancouver, BC]

Mr. Speaker, I would like to talk today about how the budget affects Canada and my province of British Columbia, particularly my riding of North Vancouver. There are a number of areas I would like to address.

The first is affordable housing. I had the pleasure a week ago of attending an affordable housing forum in North Vancouver. The people involved in the delivery of housing in my community raised concerns that the federal budget would only to deliver $1.4 billion for affordable housing, reduced from the $1.6 billion that was announced as part of the Liberal's Bill C-48 last year.

Nearly 1.5 million Canadian households are in core housing need. They are living in housing that is inadequate for their needs. It is either in poor repair or it is unaffordable. High rents are the single largest factor in the escalating use of food banks.

The CHRA proposes that the federal government provide resources to develop 25,000 units of housing per year for the next 10 years. Yet the promised one-time funding in the budget will only see perhaps 20,000 units. We need predictable, stable and ongoing funding.

We also need to look at the EnerGuide program for low income households. This program provided for retrofits to help address rising energy costs. We need to retain what we had for the marketplace and for reducing the cost of energy related to rental buildings. We also need to help individual owners. For example, under the EnerGuide program, Canadians who had their homes renovated to save energy could qualify for an additional grant of thousands of dollars. About 300,000 people have used the program since it started in the late 1990s.

A home retrofitted under the program saves its energy costs by an annual cost of about 30%. However, EnerGuide has now had its budget slashed by $227 million over the next five years. In other words, the program is now gone.

I also will talk about the film industry. The film industry, both domestic and foreign, is one that affects just about all parts of Canada, certainly Toronto, Vancouver and Calgary. These areas are the centres of the film industry. In my riding we have Lions Gate Studios, a major film producer in Canada and around the world.

For British Columbia alone, the film industry produces over $1.3 billion to our economy. In my riding it is $100 million to the North Vancouver economy, employing over 6,000 people. I see nothing in the budget to provide any assistance to the film industry. It is going through a very challenging time as the dollar rises. Although we have a good base of skilled workers in Canada, the dollar is very important to the film industry. We also see a growth in the area of animated films.

There is a company called C.O.R.E. Digital Pictures. The chief executive officer, William Shatner, a well-known Canadian, better known as Captain Kirk in the Star Trek series, said that the opportunity for animated films in Canada was enormous. He said that the strategy was to sell itself to Hollywood studios based on the track records of films, did such as The Wild . Because of Canadian tax credits, a lower Canadian dollar and expertise in animating these television shows, it had the ability to produce films less expensively.

The problem is, with the rising Canadian dollar, the ability of tax credits becomes even more important. When this issue was raised with the film industry a few years ago, the Reform/Alliance/Conservative response was that it amounted to corporate welfare. It is not considered welfare by the 6,000 residents in my community who depend on the film industry and its viability. Remember the film industry is like tourism dollars. It brings in fresh money, particularly when we bring in foreign films, which is primarily what we do in British Columbia. It enables us to build a base of expertise to continue to develop domestic films, as we have across Canada.

The other area of concern is shipbuilding. It is an area that is now in crisis in Canada. We are talking about the loss of one of the major shipyards in Canada, the Davie shipyard in Quebec. It produces 50% of the Canadian capacity. It is now in bankruptcy. On June 12 its assets, the cranes, the tools and everything, will be sold off at auction and it will effectively cease to function.

We need to help the shipbuilding industry in Canada and there are two vehicles that we have used in the past: the structured financing facility, otherwise known as the SFF; and the accelerated capital cost allowance, which is the ACCA. Under the current regulations companies have qualified either for one or the other. What they really need is both. We need to provide that incentive.

The Allied shipyards and the Washington Marine Group are in my riding. Then there is Irving Shipbuilding in Halifax. We have now three Coast Guard vessels for the west coast, three for the east coast and three for the Great Lakes. We need to ensure that these vessels are built in Canada. We need to help the shipbuilding industry position itself so it can effectively compete internationally against Korea, China and Europe.

I have spoken already about the situation with aboriginals and the need to help aboriginal communities across Canada to develop their own fiscal economy, their ability to be self-sustaining. The Tsleil-Waututh First Nation and the Squamish First Nation are in my riding. The Kelowna accord, which they saw as a benefit, has effectively been gutted by the budget. It is down to 20% of what was agreed to after a historic accord between all provinces and first nations. This would have enabled first nations to get the economic base to provide employment and to deal with the social and economic problems on reserves. It is a shame.

In addition, Capilano College is in my riding. The Conservative budget is basically providing $80 in textbooks instead of the $6,000 proposed by the previous Liberal government, $3,000 tuition tax credit in the first year and $3,000 in the final year. That was a real incentive to help young students across Canada. When I spoke to students during the campaign, they said that was where they needed the help. They are not getting the help they need from this budget.

I have already spoken on the issue of the Pacific Gateway. I am the critic for Pacific Gateway. In the previous government, I worked with my colleagues in developing the Pacific Gateway strategy and initiative. This was to enable Canada, in particular western Canada, to benefit from trade from the Asia-Pacific Rim and to recognize that British Columbia, through the ports of Prince Rupert and Vancouver, would provide this opportunity for increased movement of goods and people to assist both the import and export of goods to and from Canada.

The Pacific Gateway program under the Liberals would have provided $590 million over five years. In fact, during the campaign, when the Prime Minister spoke in Prince Rupert last December, he said that a Conservative government would deliver at least the Liberals' commitment of $590 million over five years. What we have now is a commitment of $591 million over eight years. Again, it has been delayed and diluted.

In fact, in year one the Conservatives have only proposed $19 million. The Liberal plan for Pacific Gateway would have seen $190 million worth of projects begin almost immediately with a further $400 million to be allocated by a Gateway council, which would have consisted of representatives of the four the western provinces and stakeholders interested directly in the port operations.

When we take the amount over five years, under the Liberal plan we would have seen $590 million expended. Under the Conservative budget, by year five we will see only $239 million. It is what I call the Tory Pacific Gateway gap of $351 million. That is not good enough for western Canada. It is not good for Canada. It is not good for British Columbia. We need a budget that recognizes the importance of the economy, the importance of jobs and the importance of the Asia-Pacific, China and India in the growing markets.

Therefore, I am very disappointed that the budget has neglected the areas of concern for the people of my riding, the people of British Columbia and, in my opinion, the people of Canada.

[Betty Hinton, Conservative, Parliamentary Secretary to the Minister of Veterans Affairs]

Mr. Speaker, I listened carefully to the comments of my colleague across the way. We are both fellow British Columbians.

The Pacific Gateway part of his speech was especially disturbing. I would like to ask the member if he recalls that there were only 41 words in the proposed Pacific Gateway project that came forward from the previous Liberal government. There were no plans and no details, just 41 vague words about what it was planning to do.

As a Conservative government, our extension to five years is to cover the fact that there will be very many projects that could not be completed in such a short timeline. It is a consideration that has been given to the projects to make certain that they are completed and funded by the Pacific Gateway project and not to shorten the projects. We are trying to expand them and to allow for them to actually occur.

I wonder if the member opposite would like to comment on the fact that there was no money for the Pacific Gateway funding in any of the Liberal budgets that were put forward before and if he would agree that it was simply a Liberal promise.

[Don Bell, Liberal, North Vancouver, BC]

Mr. Speaker, the Pacific Gateway initiative by the Liberal government was more than a promise. In fact, it was a commitment. It was a commitment to the people of Canada, to western Canada and to British Columbia.

There were specifics included in the Pacific Gateway initiative. For example, I talked about the $190 million, $35 million of which was to set up the Pacific Gateway Council. It was going to include more than the existing stakeholders that are involved currently in promoting trade to Asia-Pacific. It would have included representatives from the four western provinces to ensure that we really did address the economic opportunities for the four western provinces that are represented through the Pacific Gateway initiative.

More particularly, there were specifics. There was $90 million for the Pitt River Bridge and the Mary Hill Interchange Project. There was the Deltaport road grade separations project. One of the problems is getting access to and from the port for containers coming in. We are the second busiest port in North America. I do not know now, after the flooding, but Louisiana was number one because of oil and Vancouver was the second busiest port in North America.

Goods that come from China, for example, can arrive at Vancouver one to two days faster than any U.S. port with which we are competing. That gives us the opportunity, through rail, to get goods into Chicago, into parts of the United States and Canada up to two days faster. That is an economic advantage. We were going to talk about improving the rail access to grade separations.

There was a third detail. In North Portal, Saskatchewan, more road and rail grade upgrades worth $3 million and intelligent transportation systems deployment worth up to $2 million. Those are specifics. We said that $400 million would be available for the Pacific Gateway Council to then apply for other projects. We agreed, for example, to an environmental assessment of the south perimeter road needed for Delta Port. We know the priorities of British Columbia and we responded to them.

[Bill Siksay, NDP, Burnaby—Douglas, BC]

Mr. Speaker, I want to come back to the Pacific Gateway initiative as well because I do agree with the member for North Vancouver that there is a Pacific Gateway gap in the current budget. I also want to ask him about the project itself.

Many people in my constituency are concerned about the plan to twin the Port Mann Bridge and widen Highway 1. We know we cannot build our way out of traffic congestion and this will only dump more cars on to our roads.

A key part of the Pacific Gateway project that has not been addressed either by the Conservatives or the Liberals is the federal government's railway bridge across the Fraser River, a swing bridge which causes a huge backup in rail traffic. If we want to improve transportation, we have to fix that bridge. Why is that not part of the Pacific Gateway project?

[Don Bell, Liberal, North Vancouver, BC]

Mr. Speaker, the hon. member refers to the Port Mann Bridge twinning, which I know is a concern for some of the communities in the lower mainland. When that issue was raised, the position of our government was that it was not one of the projects to be included. It is a priority of the provincial government in its Pacific Gateway initiative. We said that, in terms of the improvements of road and rail, this would really come from the Pacific Gateway Council.

I agree absolutely with the importance of improving the rail bridges, the rail access, and that is what the Pacific Gateway initiative was attempting to do.

[Denise Savoie, NDP, Victoria, BC]

Mr. Speaker, I rise today not to oppose the budget but to propose alternatives.

The fundamental flaw in this budget is the absence of a long-term vision. Given the fiscal capacity of the government, it would have been possible to invest in crucial sectors to serve as Canada's engines in the new economy. Health, education, worker training and the move towards a green economy all require investments in order to achieve prosperity and sustainability. This takes courage and leadership, as well as fiscal capacity.

Instead, by deciding to manage the country through tax credits, the Conservatives are wasting their fiscal capacity, shirking their obligation to provide leadership and a long-term vision, and allocating surpluses to the wrong priorities.

Conservatives talk a great deal about competitiveness and productivity. They have a rather narrow view of competitiveness, even when I make allowance for the fact that my view is quite different than theirs. I believe that the key to our prosperity is an educated and motivated labour force, excellent educational institutions for our youth, learning and development opportunities for children, a healthy environment and a well-established social security system, which includes health care and child care. Thus, you can imagine my disappointment with this budget.

We have the extraordinary opportunity to invest an enormous surplus in sectors that will develop our human capital, protect our natural capital, and narrow the gap between rich and poor in Canada. The budget tries to do quite the opposite with $7 billion in tax cuts, $100 per month for day care expenses—where $800 is needed—and one free textbook for students. These are not investments. This is not a vision; it is a lost opportunity.

The doublespeak in the Speech from the Throne would make even George Orwell turn in his grave with expressions like investing, standing up for ordinary Canadians and getting results for working families. When we look at the outlook for budgetary revenues, we can see that the government is investing less in families and more in corporations. When we look at personal income tax going up by 12%, judging from the projections of 2007-08, and corporate income tax going up by something like 6.5%, we can see where the real investments are going.

My NDP colleagues and I believe that true competitiveness is built with a fair taxation system, of course, and by investing in those areas of natural and human capital that are truly sustainable for the long term. Investments are made in literacy, post-secondary education, lifelong skills training, health care and the environment.

On post-secondary education, we missed the opportunity to reinvest in stable, long term core funding of our colleges and universities to enhance accessibility and quality, to reduce tuition and class sizes, and to hire more professors and provide better resources. Instead, the Conservatives opted for minor tweaking that does not help the majority of students.

Paying one-third of the current deferred maintenance costs of institutions does not even begin to address the needs of institutions that are struggling to maintain and enhance the quality of education. One free textbook does not make university more accessible to low income, rural or aboriginal students. Exempting scholarships from income tax does not help the majority of students who do not even use all of their existing tax credits. Students do not want lower taxes. They want smaller class sizes and less debt when they graduate. This budget profoundly misunderstands the true needs of today's students.

Just as the deficit has been paid on the backs of working Canadians, cities and provinces, new growth continues at the cost of our environment. Canada committed to lower its greenhouse gas emissions by 6% over 1990 levels, as we all know.

The Liberals have done Canada and the world a tremendous disservice. First, they refused to require their corporate friends to reduce emissions, not even getting anything in exchange for the tax cuts, and they allowed our greenhouse gas emissions to rise to 35% above 1990 levels. Now, a Conservative government is in denial and is ready to cut and run, as the expression goes, on the problem that will have the largest impact on our children's future.

The Conservatives now believe that the Kyoto targets are impossible when in reality, although they are daunting, they are still eminently achievable. I hope that the minister would look at the NDP's Kyoto plan, which is realistic and fully costed. Its innovative ideas may not appeal directly to the interests of the oil patch, but according to a late April survey, 90% of Canadians want to see real investments in sustainable solutions like renewable energies and green industry, not more tax giveaways to the oil industry.

Finally, I would like to speak to child care, an area in which the NDP has proposed a concrete, realistic alternative to the $1,200 Conservative plan. In Victoria this week, a large rally was held by child care stakeholders, including parents, at the B.C. legislature. Their signs read: “Find me quality day care for 70¢ an hour” and “$100 a month pays for child care all right, in 1986”.

In British Columbia, 85% of children aged six months to five years living with a single parent are in some form of child care, and 73% of children with two working parents are in child care, a drastic rise since the mid-nineties.

In Victoria, child care can cost up to $800 a month, and there remains a desperate shortage of spaces, with long waiting lists. B.C. parents waited 13 years for the Liberals to act as the crisis developed. Finally, in a minority Parliament pressure forced them to act, albeit hastily. This allowed the Conservatives to come in and uproot the whole process, setting us back more than a decade.

There is no choice in British Columbia and it is no way for a government to help parents along the difficult path of raising children. Yesterday I introduced a genuine alternative to the Conservative plan, the NDP's early learning and child care act, which enshrines in law the principles of quality, accessibility and universality, among others. It recognizes that the government has a responsibility and an opportunity to make it easier for parents to raise their kids.

In summary, this budget is a wasted opportunity. It could have been a historic long term vision document that would launch Canada into the new knowledge and green economies, to overcome the initial fiscal hump of transition to environmentally, socially and economically sustainable economies, and to show bold leadership for Canada. Instead, it is business as usual, managing by tax credit. This is no way to run a country. That is why I cannot in good conscience, as a mother, a teacher and a citizen, support this fundamentally flawed budget.

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, I listened with interest to the remarks of my friend and former teacher. I want to bring out a bit of education for my hon. friend and perhaps the House on one of the areas she slagged, and that is the oil industry.

With the support of this government and, to its credit, the previous government, the oil industry in Canada has supplied tremendous prosperity. It is investing $41 billion in Canada in 2006. It paid governments $27 billion in 2005. The contribution to individual Canadians in terms of training, mobility of labour and immigrant training just by one company alone, Suncor, amounts to millions and millions of dollars.

The industry is supporting education in NAIT. Twelve per cent of Syncrude's and Suncor's workforce is aboriginal. It is also investing $100 million in contracts with aboriginal companies. Suncor alone is investing $100 million to eliminate trucks in the mine sites, therefore having a tremendous impact on SOx, NOx and CO₂, plus other technologies such as CO₂ collection and re-injection.

One of the industries that party and that member like to slag is in fact doing a tremendous amount to help the environment while contributing tremendously, with a job impact in Canada of over 500,000. Would my hon. colleague not like to cut an industry like that just a bit of slack and give it some credit for doing the job in an environmentally friendly way as much as possible?

[Denise Savoie, NDP, Victoria, BC]

Mr. Speaker, I appreciate my colleague's comments, but they further illustrate the flaws in this budget. To continue to give tax credits to a sector that is overheating local economies is just plain poor thinking.

It also highlights the fact that this sector is performing a great service if we only consider money. We are not considering, for example, the billions of litres of water that the tar sands are using, the greenhouse gases that are being created and the pollution that results.

Yes, undoubtedly there is a benefit, I admit, and our Kyoto plan recognizes the need to transition from that polluting economy to a sustainable one, but to accept this as status quo is simply flawed thinking.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, I have two quick questions for the member. First, during the election campaign the leader of the Conservatives complained about politicians giving grants to politicians, yet he took the billion dollars the NDP and the Liberals created for students in Bill C-48 from the students and gave it to the provinces. Would the member comment on that?

Second, perhaps unlike the NDP, I agree that wealthy people and corporations should also receive tax breaks, but I believe everyone's tax breaks should be equal. I would ask her if she agrees that this particular budget is prejudiced against the poor. Everyone received some tax decreases, but the poor received tax increases. For instance, on July 1 their rate of taxation goes up from 15% to 15.5%. There is a decrease in the basic allowance of $200. The poor receive less of the $1,200. The Caledon Institute said they would receive as low as 55¢ a day or 14 minutes' worth of day care. Does the member think that everyone should receive at least equal tax breaks and the budget should not be prejudiced against the poor?