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

[Yvan Loubier, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, I thank my colleague from Lévis—Bellechasse for his question.

I would just like to rectify one thing. I did not say that it was a very positive budget, but that it was a budget that included a commitment in a fundamental area for Quebec. I also added that we were keeping a close watch on the government. We are worried about the fact that, on the weekend, the Prime Minister backed down from his resolve to fix the fiscal imbalance. If I were in his shoes, I would not get too cocky or too arrogant, the way some of his colleagues have done. He did not do so this morning, but I wish to warn him. Our support for the government actually depends on this commitment.

Equalization, as far as Quebec and the other Canadian provinces that benefit from it are concerned, is the only program entrenched in the Constitution. This means that public services of equivalent quality can be offered from east to west in Canada. It is in the Constitution. On the other hand, in order to measure the ability of the provinces and Quebec to offer these uniform, equivalent services from east to west in Canada, there has to be a true measurement of the various governments’ capacity to collect taxes from their citizens.

At present, however, the equalization formula presents several problems, given that it is not meeting this objective. First of all, a Canada-wide average is calculated, which determines whether or not a province or Quebec is entitled to a per capita equalization payment. Currently, this average is calculated on the basis of five provinces. Why not take the 10 provinces into account? If we want to know the true fiscal capacity, the 10 provinces have to be weighed and each one’s fiscal capacity assessed in relation to this Canada-wide average established on the basis of the 10 provinces and even the two territories.

Furthermore, some parameters do not work. Unbelievable intellectual somersaults are performed to measure property tax, for example, when—it is easy to check—property tax is real in every municipality.

This is the sort of correction that has to be made to equalization.

I would simply like to remind my colleague of one last thing. The positive measures contained in the budget are acceptable as far as short-term transfers are concerned, for such things as post-secondary education. The amounts provided fall far too short of the mark, however, to correct the fiscal imbalance as the Prime Minister has undertaken to do. We are talking about $10 billion to $12 billion a year for all of Canada. Equalization that allocates $285 million more falls short of the mark.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, the member spent some time talking about the $1,200 child tax allowance. He suggested, as did the Caledon Institute, that the allowance was skewed in terms of the value of the benefit to wealthier Canadians than to average Canadians.

As a solution the member suggested that consideration might be given to including it as a refundable tax credit. I would like to ask him about this. With refundable tax credits, yes, the money would flow even if there was no income. The money would get there, but the recipients would have to wait until they filed a tax return and actually received the refund cheque or a reduced payment made when filing their taxes.

Maybe it would be better to make it part of the Canada child tax benefit program which is a non-taxable amount which is paid monthly and is streamed more to low and modest income Canadians. In fact, higher income Canadians would not even qualify for it. I wonder if the member would care to comment on the possibility of including it in the Canada child tax benefit.

[Yvan Loubier, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, I thank the hon. member for his question.

In fact, the refundable tax credit would have been preferable to a cash transfer. However, I disagree with his statement that families should have had to wait until the end of the year, when they prepare their tax return.

I will give a good example. The government can determine family income levels when the time comes—and even in advance—to provide tax credits, GST credits, for example. Those credits are paid quarterly. The same principle could be applied with the refundable tax credit.

I heard the Prime Minister or the Minister of Finance say that the Bloc Québécois does not want Canadians to receive a cheque with a flag on it.

They are aware of it, they started the propaganda with the Canadian flag all over the place, and more than once. But that is not the point. There could have been a refundable tax credit, payable by cheque with a Canadian flag or two—if they want 10, they could put 10 on—or even on a whole flag, but quarterly like the tax credit for the GST. That would be no problem.

The benefit would have been twofold: the jurisdictions of the provinces and Quebec would have been respected and the amounts would have been totally tax free. This is not currently the case.

As I was saying, the families not paying for child care, in which one parent stays home—the folks the Conservatives are targeting—will the big losers. They will get $486 less a year if they have two dependent children under six and were getting the national child tax benefit. This is what is incongruous in the Conservative approach.

[Denise Savoie, NDP, Victoria, BC]

Mr. Speaker, I thank my colleague opposite for his remarks.

This weekend, I spoke with families in my riding who said they were coming out behind with this change to the national child benefit supplement and this $1,200. This budget does nothing to help those families, not just in terms of child care, but also in terms of housing. Of course there is the $800 million that comes from last year’s NDP budget, which had already been approved, but no more, even though we know that the Canada Mortgage and Housing Corporation is making billions of dollars in profits.

This budget is also silent on the Kyoto protocol. We know that Canada is going to lose its credibility in that respect. This budget is a step backward in numerous areas.

My question to my colleague is this. Given that the Bloc supports a number of values that are important to me and to a lot of Canadians and Quebeckers, why and how could it have supported a budget like this, which is truly a step backward? I find that hard to understand.

[Yvan Loubier, Bloc, Saint-Hyacinthe—Bagot, QC]

: Mr. Speaker, I know that my colleague shares our analysis from a social point of view, particularly with respect to helping the most disadvantaged families. I have just stated our point of view: we would have preferred to see this $1,200 payment in a different form.

However, there are two things I would like to say. Last year, we voted against the $800 million in the NDP budget because with that bill, the NDP got conned as if they were schoolchildren. There was no firm commitment from the government. It even said that there had to be a $2 billion surplus at the end of the year, and it also said: unless the government had other priorities.

The New Democrats were conned. They were patting themselves on the back about Bill C-48, when they had achieved absolutely nothing.

Second, when a friend or a colleague makes a commitment and makes a firm promise to carry out the projects that are dearest to our hearts, do we come down on them when that firm commitment has been given? We wait to see whether the commitment is honoured. That is our fundamental reason. Perhaps there are those who behave differently in society, but we are civilized people.

[Maxime Bernier, Conservative, Minister of Industry]

Mr. Speaker, I take the floor today as the member for Beauce and as Minister of Industry to discuss the importance of the budget for my constituents and for all Canadians. I will be sharing my time with the hon. member for Wetaskiwin. My great thanks to him for expressing his point of view.

Last February 6, the Prime Minister formed a new government, a government that has a clear mandate to meet the important challenges facing all Canadians. The budget has given shape to many of our commitments, and we will continue to keep our word.

The first decision of this government has been to move quickly to enhance accountability to Canadians and ensure that government operations are more transparent. The federal accountability action plan, released last April 11, presents a wide range of reforms which were necessary after 13 long years of Liberal regime.

We promised to cut back the GST. The budget provides for a one-percent reduction of the GST as of July 1. We also promised to introduce the universal child care plan in Canada. As of July 1, Canadian families will receive $100 per month, or $1,200 per year, for each child under age six, to pay for child care expenses. In addition, there are concrete measures to improve health care and combat crime in Canada.

The hon. finance minister has tabled a budget which fulfils the commitments made in the last election campaign. Like the great majority of Canadians, I am very pleased to support this budget today. I would like the opposition to give the budget its support as well. In addition to respecting our priorities, this budget contains more tax reductions than the last four federal Liberal budgets combined.

Allow me now to speak of the budget measures which more particularly concern the department I head, the Department of Industry. First of all, the budget establishes a much more transparent planning framework, as it has a realistic two-year planning horizon, instead of the five years used by the former government.

Furthermore, it puts the government’s finances in order by providing for control over increases in the rate of spending. Our expenditures will target concrete, tangible results. Taxpayers’ money will be spent under strict guidelines, thereby helping us find ways to save.

For years, the previous government generated surpluses at the expense of taxpayers. It then looked for ways to use those surpluses and its tax revenues by interfering in provincial fields of jurisdiction.

This government, however, recognizes that this money belongs to Canadian and Quebec taxpayers, including the people of Beauce, and that it should be given back to taxpayers. Sound financial management also means that we must pay for costs from the past. Thus, the government intends to reduce the federal debt by $3 billion a year. Yes, you heard correctly, $3 billion each year. Our goal is to reduce Canada's debt-GDP ratio to 25% by 2013, which is one year earlier than planned.

The federal government's communication of financial information will also be improved, in order to give Canadians the transparency they expect from us, their elected members.

Let us take a moment now to talk about productivity and competitiveness, two terms that are very important to me as Minister of Industry. Tax rates have a considerable impact on the productivity and competitiveness of businesses in Canada, Quebec and the Beauce region. My background is in business and I know that every entrepreneur will have their own suggestions for dealing with the economic factors that affect their business. However, I can assure you that all entrepreneurs in my riding and throughout Canada agree on one thing: the importance of reducing the tax burden and the importance of reducing taxes. The 2006 budget does just that.

The new Conservative government's budget facilitates the competitiveness and productivity of Canadian businesses by leaving more money in the hands of entrepreneurs so that they can properly manage their business.

They know better what is good for their businesses than we do here in Ottawa. That is why we are cutting taxes so that they can reinvest this money and create jobs.

Canadian businesses are applauding our decision to cut back the corporate tax rate, which will fall from 21% to 19% by 2010. These businesses are also applauding our decision to eliminate the corporate surtax by January 1, 2008.

Some of these tax changes particularly affect small and medium-size businesses, which drive the economy in the regions and create jobs everywhere in Canada.

After years of half-measures and programs developed by the previous government that never kept its promises, and after listening to concerns of small and medium-size businesses about tax rates, our new Conservative government took action. It took action in this budget. First, we are going to raise the maximum revenue threshold for eligibility for the small and medium-size business tax rate from $300,000 to $400,000 by next January. Better yet, we are going to cut the tax rate for small and medium-size businesses to 11.5% by January 2008 and then cut it again to 11% by 2009. These tax cuts will enable businesses to create jobs and be more competitive on the international scene.

Our new government knows as well that the innovative companies which help our economy grow must sometimes work for years—sometimes many long years—before they are able to penetrate international markets. These companies will benefit from our decision to allow non-capital losses and investment tax credits to be carried over for up to 20 years. This includes the scientific research and experimental development tax credit, which is one of our government’s most important measures to support innovation.

Another important aspect of the budget is the support our government provides for research and development in Canada. This budget provides $100 million a year in additional funding for this area, which is crucial for the Canadian economy.

This new funding includes an additional $400 million a year for the three large granting agencies that support much of the research done in Canada. The Canadian Institutes of Health Research and the Natural Sciences and Engineering Research Council will each receive an additional $17 million a year, and the Social Sciences and Humanities Research Council will receive an additional $6 million.

Beyond these commitments, our government has selected two other approaches to meet the needs of our research institutions. First of all, we are increasing the funding paid to universities to defray indirect research costs. The budget dedicated to indirect research costs will rise from $260 million to $300 million a year. Second, the government is undertaking to build a dynamic research community by contributing $20 million to the Canadian Foundation for Innovation’s Leaders Opportunity Fund for 2006-07 and 2007-08.

I am very happy to talk today and let the House know about an important commitment in our budget, namely fiscal balance. There is another reason why I am pleased to support this budget: our new government understands the importance of restoring the fiscal balance in Canada. Unlike the former government, our government’s budget contains a clear and precise road map for getting there.

Our government has been working hard since the first day and is fulfilling its commitments. We have already accomplished much for Canada in a short time. The 2006 budget shows that we are determined to get even more results for Canadians. This is why I am asking all the members in the House to support the budget.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, the member mentioned some good points, but I would ask him to refrain from silly rhetoric such as saying that the previous government did not keep its promises. We cut taxes by $100 billion in the biggest tax cut in history. The member is insulting his own party's tax cut of $20 billion if he goes down that road.

What I would appreciate the member confirming as the industry expert is what the Canadian tax rate is compared to the American tax rate. In the past, Conservative members have suggested that Canada was worse off. If we look at the chart on page 32 of the budget plan, we see that it suggests that with no changes or with the changes to this budget, in both cases, Canadian taxes and Canadian taxes for manufacturers would be lower than United States taxes, both under the previous regime and, even better, under this regime.

Would the member confirm that under the previous regime and also under his own tax plan Canadian corporations would have a lower corporate tax rate than the Americans?

[Maxime Bernier, Conservative, Beauce, QC]

Mr. Speaker, our latest budget contains tax cuts of $20 billion over two years. As I said earlier, it is very important for the competitiveness of the Canadian economy. If we make a comparison with the U.S. and the rest of the countries in the world, we realize that Canada is in a very competitive situation where corporate tax rates are concerned. This is a very important fact. As you know, capital is mobile in Canada; it goes where performance is the best. By having the lowest tax rates, rates that are competitive with the Americans, we are able to attract foreign and Canadian money that can be invested and that can create wealth in Canada. The tax cuts proposed in the budget will thus enable Canadians to keep an appreciable and substantial advantage over the U.S.

Regarding corporate tax rates, the reductions will also end up making our corporate tax system more competitive overall and not just on tax rates, which will enable our Canadian companies to increase their productivity.

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

Mr. Speaker, I have three simple questions for the minister on this budget.

First, since he seems to be quite familiar with figures in this budget, I would like to know what in terms of equalization will be the amount per capita that will be allocated to Quebec compared to the maritime provinces. It would be interesting to see whether the additional amount will correct the existing imbalance.

As far as the fiscal imbalance in general is concerned, this government promised to resolve it. I would like the minister to tell us how much we are talking about, how much it should cost—without going into details about the final negotiated sum. What can we expect from this government? We have already seen the Prime Minister go back on this issue over the weekend and that concerns us.

My last question has to do with the productivity of businesses. This is what I would like to know: for businesses that are currently having great difficulty, the manufacturing sector in particular where there are companies that are not making profits or paying taxes—what is in this budget to help them?

[Maxime Bernier, Conservative, Beauce, QC]

Mr. Speaker, to answer my colleague's first question on the advantages to Quebec in this budget with respect to equalization, the new budget ensures that Quebec will get $185 million more than it did last November, if we look at the state of public finances at the time. If we compare this to the previous budget of the former Liberal government, Quebec will receive $741 million more. This is quite advantageous.

As far as the fiscal imbalance is concerned, we are turning over a new leaf to resolve it. It should be noted that in our budget, the budget of the new government, in 2005-06, there is an $8 billion surplus, but we also have non-allocated surpluses. In an effort to be transparent, we are thereby showing all Canadians that the surpluses that were not allocated in our budget can be allocated to resolve the fiscal imbalance, resolve problems of productivity, problems the environment might cause, problems in several sectors. These non-allocated surpluses represent $600 million for this year and $1.4 billion for next year. This bodes well for the negotiations to resolve the fiscal imbalance.

[Larry Bagnell, Liberal, Yukon, YT]

Mr. Speaker, I rise on a point of order. I want to apologize. In my last intervention I quoted the wrong page. It was page 75.

[The Acting Speaker, Royal Galipeau]

The Chair thanks the hon. member.

Resuming debate, the hon. member for Wetaskiwin.

[Blaine Calkins, Conservative, Wetaskiwin, AB]

Mr. Speaker, it is an honour to be speaking on the government's budget implementation bill. I am pleased to have an opportunity to speak to Bill C-13, which will implement the provisions of the new government's budget that was passed in the House last week.

I want to begin by congratulating the Prime Minister and the Minister of Finance. I want to thank them for keeping their promises made to Canadians during the election campaign. This is one of the first steps in restoring accountability to our system.

Canadians are tired of being courted by politicians trolling for votes, only to be left in the lurch once the ballots have been counted. It is time to rebuild the relationship between voters and the government, and that rebuilding process began on January 23.

The Prime Minister has set out five achievable priorities and he has taken action on them. This budget puts the mechanisms in place to achieve those goals and one of the key elements of this budget is tax relief.

There are 29 different tax cuts that will deliver $20 billion in tax relief over the next two years. There is more tax relief in this first Conservative budget than in the last four federal Liberal budgets combined. To top it off, there is $2 in tax relief for every $1 in new program spending. That is a ratio that puts people over programs and it is a ratio that Canadians can feel good about.

For 13 years, Liberal budgets let Canadians down. Year after year, Liberal budgets featured little more than empty promises and wasteful spending. Canadians have been working harder and longer, and saving less, just to pay for Liberal scandals and boondoggles. Who could forget the sponsorship program, or the extravagant and ineffective long gun registry, or where the HRDC money went?

What did Canadians get for all their long hours of hard work from successive Liberal governments? They got to pay too much in taxes for too little in return and watch their tax dollars go to programs deemed wasteful and unnecessary. Finally, families are going to get a tax break, and this is near and dear to my heart. Families were promised help and the Conservative government has delivered.

This new government will increase the amount that all Canadians can earn without paying federal income tax. This budget reduces the lowest personal income tax rate from 16% to 15.5% effective July 1. On average, families will pay less personal income tax in 2006 than proposed by the Liberals in 2005.

This government believes that it is time to give back the hard-earned money that Canadians sent to the government and it is time to give that money back to Canadians. How are we going to do that?

First, there is the universal child care strategy, a key campaign promise and a throne speech priority. When it comes into effect on July 1, it will provide families with children under the age of six with $100 per month per child.

We are introducing a tax cut to promote physical fitness among children, effective January 1, 2007. This credit will provide up to $500 in fees for physical activity programs for each eligible child under the age of 16.

Aboriginal women, children and families will benefit from the $450 million aimed at improving education and socio-economic conditions, as well as water supplies and housing issues on reserves.

Low income Canadians, those whose incomes are too low to pay any income tax, deserve tax relief too, something our predecessors clearly did not believe in. All Canadians will benefit from the reduction in the GST, whether they are purchasing big ticket items like a new car or a new home, or if they are just purchasing everyday essentials.

Workers will benefit from the new $1,000 Canada employment credit starting July 1. This new tax credit gives Canadians a break on what it costs to go to work, recognizing that people incur expenses while they are going to work for such things as home computers, uniforms and supplies. This government has focused its spending on key federal priorities with programs that will get results and provide value to taxpayers for their money.

However, more than any other group in Canada, farmers have long borne the brunt of the Liberal lack of foresight on developing effective programs. Farming is part of our heritage. It is certainly part of my heritage and that of the majority of constituents in Wetaskiwin. For far too long, agriculture has been overlooked by Liberal governments. We promised help for farmers. We have delivered help for farmers, farm families and farming communities.

This government recognizes not only the importance of agriculture but the difficulties facing farmers today. To support Canadian farming communities, the government is providing $1.5 billion this year alone. This includes $500 million for farmer support, plus a one time investment of $1 billion to assist farmers in the transition to more effective programming for farm income stabilization and disaster relief.

Agriculture has received more money in this budget than any government has ever given to the sector in one budget before. Falling prices and trade disputes are causing farmers and producers real financial hardship. Current insurance and income support programs are not coming close to meeting the needs.

Canadian farmers need our support now more than ever. That is why one of the government's first actions was to accelerate disbursement of $755 million in payments under the grains and oilseeds payment program. That is why the government is taking action to restore and sustain a strong, vibrant farm sector that will provide farmers with the income they need to stay in business.

Our government commits $2 billion in funding over two years, $1.5 billion of which will be allocated in the budget. We are delivering on the promises we made in the election campaign for farmers, families and all Canadians.

This year Canada Day will be better than ever, thanks to the tax breaks the government is implementing, effective July 1, 2006. We can look forward to a cut in the GST from 7% to 6%; implementation of the universal child care benefit, which gives $1,200 per year to families for each child under six; an increase in the child disability benefit from $2,044 to $2,300; the creation of the Canada employment credit, $1,000 tax credit for computers, uniforms and supplies; reduction of the lowest tax rate by 0.5%, from 16% to 15.5%; and implementation of the tax credit for the purchase of monthly transit passes. That is not bad for just 100 days.

It will be a happy birthday for all Canadians and I urge all members in the House to support Bill C-13.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, I thank the hon. member for listing the budget items. I want to focus on one and it has to do with health care, which has always been the number one priority of Canadians.

The Conservative election platform did talk about health care from the standpoint of wait time guarantees. The member will know that it really involves the Government of Canada providing additional financial support, so that Canadians can be transported to other provinces or, indeed, even to the U.S. for medically necessary health care, which is subject to the wait time guarantee.

The member congratulated the Prime Minister and the finance minister for keeping their promises, but he will recall that not only was the wait time guarantee in the platform but it was also one of the five priorities. Yet in the budget, there was not one penny of new health care funding for wait time guarantees.

There is additional moneys going to the provinces for health with regard to the $42.5 billion accord that was signed, but as was confirmed by the Minister of Health on Sunday on TV's Question Period, there is no new money in the budget, and he feels that there is sufficient moneys within the accord.

Will the member withdraw the congratulations to the finance minister and the Prime Minister because not only did they not deliver, they broke one of the most important promises they made to Canadians?

[Blaine Calkins, Conservative, Wetaskiwin, AB]

Mr. Speaker, I will not withdraw my congratulations to the Prime Minister or the finance minister. As a matter of fact, I will recongratulate the Prime Minister and the finance minister for providing us with one of the best budgets that I can remember in recent history.

There is $5.5 billion allocated for wait time reductions across the board in the budget. There is $52 million for the cancer initiative and there is $1 billion in new funding for pandemic research. There is a lot of money already there.

In my home province of Alberta right now, and I am very proud to be from Alberta, it is taking new initiatives and investing the money to find ways to make the system more efficient and more effective. Everybody understands that health care is very expensive and it is a very near and dear issue to most people. Canadians want health care when they need it.

There is nothing worse than sitting on a waiting list, knowing we have some ailment, knowing that we cannot move because a hip or a knee needs to be replaced, or waiting for cancer treatment. We have to get people the help they need when they need it. That is why I am very pleased that one of our top five priorities is to establish those wait time guarantees, working in consultation with the provinces, and ensuring we have the funding to deliver on that guarantee.