Budget Implementation Act, 2007

An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007

This bill is from the 39th Parliament, 1st session, which ended in October 2007.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

Part 1 implements income tax measures proposed or referenced in Budget 2007 to
(a) introduce a tax on distributions from certain publicly traded income trusts and limited partnerships, effective beginning with the 2007 taxation year;
(b) reduce the general corporate income tax rate by one half of a percentage point, effective January 1, 2011;
(c) increase the age credit amount by $1,000 from $4,066 to $5,066, effective January 1, 2006;
(d) permit income splitting for pensioners, effective beginning in 2007;
(e) introduce a new child tax credit of $2,000 multiplied by the appropriate percentage for a taxation year, effective beginning in 2007;
(f) increase the spousal and other amounts to equal the basic personal amount, effective beginning in 2007;
(g) increase the age limit for maturing registered retirement savings plans, registered pension plans and deferred profit sharing plans to 71 years of age, effective beginning in 2007;
(h) expand the types of investments eligible for registered retirement savings plans and other deferred income plans, effective March 19, 2007; and
(i) increase the contribution limits for registered education savings plans and expand eligible payments for part-time studies, effective beginning in 2007.
Part 1 also amends the Canada Education Savings Act to increase the maximum annual grant payable on contributions made to a registered education savings plan after 2006.
Part 2 amends the Excise Tax Act to clarify the legislative authority that allows the Canada Revenue Agency to pay refunds of excise tax directly to end-users, where fuel subject to excise has been used in tax-exempt circumstances. It also amends that Act to repeal the excise tax on heavy vehicles and to implement the Green Levy on vehicles with fuel consumption of 13 litres or more per 100 kilometres. It also provides an authority for the Canada Revenue Agency to pay a refund of the Green Levy for vans equipped for wheelchair access.
Part 3 implements goods and services tax/harmonized sales tax (GST/HST) measures proposed or referenced in Budget 2007. It amends the Excise Tax Act to exempt midwifery services from the GST/HST and to zero-rate certain supplies of intangible personal property made to non-GST/HST registered non-residents. It also amends that Act to repeal the GST/HST Visitor Rebate Program and to implement a new Foreign Convention and Tour Incentive Program, which provides rebates of tax in respect of certain property and services used in the course of conventions held in Canada and the accommodation portion of tour packages for non-residents, and establishes new information requirements in the case where rebates are credited by the vendor.
Part 4 implements other measures relating to taxation. It amends the Customs Tariff to increase the duty-free exemption for returning Canadian residents, from $200 to $400, for absences from Canada of not less than 48 hours. It amends the Federal-Provincial Fiscal Arrangements Act to clarify that when a federal corporation listed in Schedule I to that Act pays provincial taxes or fees, wholly-owned subsidiaries of that corporation also pay provincial taxes or fees. It also authorizes the Minister of Finance to make payments totaling $400 million out of the Consolidated Revenue Fund to the Province of Ontario to assist the province in the transition to a single corporate tax administration. This last measure is consequential to the October 6, 2006 Canada-Ontario Memorandum of Agreement Concerning a Single Administration of Ontario Corporate Tax.
Part 5 enacts the Tax-back Guarantee Act, which legislates the Government’s commitment to dedicate all effective interest savings from federal debt reduction each year to ongoing personal income tax reductions. That Part also commits the Minister of Finance to report publicly at least once a year on personal income tax relief provided under the Guarantee to Canadians.
Part 6 amends the Federal-Provincial Fiscal Arrangements Act to set out the amounts of the fiscal equalization payments to the provinces and the territorial formula financing payments to the territories for the fiscal year beginning on April 1, 2007 and to provide for the method by which those amounts will be calculated for subsequent fiscal years. It also authorizes certain deductions from those amounts that would otherwise be payable under that Act. In addition, it makes consequential amendments to other Acts.
Part 6 also amends that Act to provide increased funding for the Canada Social Transfer beginning on April 1, 2007, and to provide for the method by which the Canada Social Transfer and the Canada Health Transfer amounts will be calculated for subsequent fiscal years, including per capita cash allocations. It also provides for transition protection.
Part 7 amends the Financial Administration Act to modernize Crown borrowing authorities.
Part 8 amends the Canada Mortgage and Housing Corporation Act to permit the Minister of Finance to lend money to the Canada Mortgage and Housing Corporation.
Part 9 amends the Bankruptcy and Insolvency Act, the Canada Deposit Insurance Corporation Act, the Companies’ Creditors Arrangement Act, the Payment Clearing and Settlement Act and the Winding-up and Restructuring Act to allow the Governor in Council to prescribe the meaning of “eligible financial contract”. Those Acts are also amended to provide that, after an insolvency event occurs, a party to an eligible financial contract can deal with supporting collateral in accordance with the terms of the contract despite any stay of proceedings or court order to the contrary. This Part also includes amendments to the Bankruptcy and Insolvency Act and the Winding-up and Restructuring Act to provide that collateral transactions executed in accordance with the terms of an eligible financial contract are not void only because they occurred in the prescribed pre-insolvency or winding-up period.
Part 10 authorizes payments to provinces and territories.
Part 11 authorizes payments to certain entities.
Part 12 extends the sunset provisions of financial institutions statutes by six months from April 24, 2007 to October 24, 2007.
Part 13 amends the Department of Public Works and Government Services Act to provide the Minister of Public Works and Government Services with the power to authorize another minister, to whom he or she has delegated powers under that Act, to subdelegate those powers to the chief executive of the relevant department. That Act is also amended with respect to the application of section 9 to certain departments.
Part 14 amends the Financial Consumer Agency of Canada Act to allow the Minister of Finance to provide funding to the Agency for activities related to financial education.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-52s:

C-52 (2023) Enhancing Transparency and Accountability in the Transportation System Act
C-52 (2017) Supporting Vested Rights Under Access to Information Act
C-52 (2015) Law Safe and Accountable Rail Act
C-52 (2012) Law Fair Rail Freight Service Act
C-52 (2010) Investigating and Preventing Criminal Electronic Communications Act
C-52 (2009) Retribution on Behalf of Victims of White Collar Crime Act

Votes

June 12, 2007 Passed That the Bill be now read a third time and do pass.
June 12, 2007 Passed That this question be now put.
June 12, 2007 Passed That, in relation to Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, not more than one further sitting day shall be allotted to the consideration of the third reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Business on the day allotted to the consideration of the third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.
June 5, 2007 Passed That Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, as amended, be concurred in at report stage with further amendments.
June 5, 2007 Passed That Bill C-52 be amended by deleting Clause 45.
May 15, 2007 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.
May 15, 2007 Passed That the question be now put.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Yes, they do. Even Dalton has said that this budget provides capacity to the province of Ontario so that we can address child poverty, so we can address homelessness, so we can address the mess that was created in health care, so we can address the fiscal imbalance.

We know the former government did not believe that fiscal imbalance existed. However, our government has moved to solve the fiscal imbalance. Quite honestly, the province of Ontario, in fact all provinces are better off after this budget. More is more. More money means more money. It is more money for every region, even Saskatchewan. In fact, it is a lot more money for Saskatchewan.

We know that the Liberal government tried to make a lot of ground by saying we are giving less, but it is really more. Our government is giving more so that the provinces can do more. We are giving them more so they can provide more services, better health care, better post-secondary education.

We are standing up for Canadians. We are standing up for the provinces. We are standing up for Canada. We are--

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

The Acting Speaker Royal Galipeau

Order, please. The member's time is really up now.

Questions and comments. The hon. member for Saint Boniface.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Liberal

Raymond Simard Liberal Saint Boniface, MB

Mr. Speaker, I am very anxious to ask the member a few questions.

First, the only things that those members seem to be able to brag about are surpluses, low unemployment and a strong economy. Does the member actually think that the Conservatives had anything to do with that? The Conservatives have been riding on the Liberals' coattails on that for the last couple of years.

Second, the Conservatives campaigned on a promise that they would not have a budget that would be higher than inflation. The budget actually was over 6% and the baseline budget had an increase of 11.5%. I would like the member to explain that to Canadians.

The last time the Conservatives had an actual budget that was not attributed to somebody else was in 1923, not during Diefenbaker's time, not during Mulroney's time, but in 1923. When they get up and talk about the prowess of the Conservative government when it comes to budgets, I find it very laughable.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Mr. Speaker, what is laughable is that the Liberals constantly take credit for it being their money. It is not their money. Actually, I think it is Canadians' money.

What is really laughable is when a government decides it is not going to pay its bills and it creates a huge fiscal imbalance and significant problems in all of the provinces with their capacity to pay for things that Canadians depend on, like education and health care, and to deal with homelessness. When a government takes credit for that and calls it sound fiscal management because it is not paying its bills, I guess that is the Liberal thing to do.

We do not believe in that. We believe in fixing the fiscal imbalance.

The Liberals talk about $42 billion. I want to tell them what the $42 billion is. That $42 billion is only the interest on former prime minister Trudeau's debt. He was the prime minister who created the national debt. This is not up for debate. This is a fact, but the Liberals do not like facts.

Sometimes I find it really hard to listen to some of the Liberals' criticism. They often campaign like the NDP, but we know that is not what they stand for. I acknowledge that I have some philosophical differences with the NDP, but I will also acknowledge that the NDP members legitimately believe in what they speak about. The party opposite clearly does not. The Liberals say one thing and do another.

We have a clean government now. The Liberals should celebrate that. There are no brown envelopes with cash in them being passed around.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1:05 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I can only say that the member's intervention shows what kind of dysfunctional, delusional and incestuous discussions they have within the Conservative caucus.

What he said is simply not true. Eighty per cent of Canadian families are actually earning less now than they were in 1989. The delusion that somehow Canadians are prospering when it is only the banks, the oil companies and the very wealthy that have any money just shows to what extent the Conservatives are out of touch.

I was interested in what he said about financial management. The Department of Finance did a study of governments and actually found that the NDP manages money best, the Liberals are the worst and the Conservatives are just as bad as the Liberals in many cases. It did a long term study and it turns out that the NDP manages money better.

The budget has a number of elements. First, we know P3s are much more costly to the taxpayer than simply investing in good public infrastructure. Second, there is the billion dollar subsidy to the oil and gas industry. It is the most profitable industrial sector and the Conservatives keep shovelling money off the back of a truck to that sector. There is $9 billion in corporate tax cuts. What a ridiculous situation it is when there are record corporate profits and the Conservatives are shovelling more money at that sector. Finally, there is the $400 million that Hollinger was supposed to pay and the Conservative government said, “We forgive. You don't have to pay taxes if you're wealthy”. That is $400 million on their watch. The Conservatives forgave that money.

How does the member think the Conservatives have any financial management credibility whatsoever when all we see from them is the same boondoggles we saw under the Liberals?

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1:05 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Mr. Speaker, I guess this is where the philosophical division that I spoke of a moment ago begins.

The member mentioned families. This government has specifically reached out and assisted families. We provided to all families a $2,000 tax credit for children under the age of 18. We provided the universal child care benefit to families. My brother and my sister-in-law have two young daughters, two and four, and that $200 a month comes in very handy. We are helping families.

I would also say that it is very easy to be a sound financial planner or a sound fiscal manager of funds when one does not generate any. We know the NDP policies would be catastrophic for the Canadian economy. They would not generate any money. It is very easy to manage nothing because that is what the NDP would create: less manufacturing, less wealth, less employment. That is what it would lead to. We cannot follow that strategy.

When we talk about reducing corporate taxes we talk about that because we are competing in a global economy. We have to be competitive. At the same time by reducing taxes it has been proven that we are not reducing the overall tax revenue because tax fairness leads to more people working with the tax system, indeed avoiding the tax system to a much lesser extent and paying their taxes.

With high taxes we find tax avoidance. Corporations will invest a lot of money into figuring out ways to avoid taxes. When we bring in tax fairness, when we ensure that the tax rates are as low as they possibly can be for all Canadians, there is less tax avoidance. Indeed it is a hotter economy that generates more revenue overall.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1:05 p.m.

Conservative

Mike Wallace Conservative Burlington, ON

Mr. Speaker, I appreciate the presentation by my colleague from Ontario about what the budget does for Ontario.

I have a few things that I would like to point out for the province of Ontario. We are restoring the fiscal balance with federal support of $12.8 billion in 2007-08. This includes: $8.1 billion under the Canada health transfer; $3.8 billion under the Canada social transfer, including additional funding for post-secondary education; $664 million for infrastructure; $205 million available to the Ontario government for the patient wait times guarantee; $117 million available to the Ontario government to implement the human papilloma virus immunization program; the $574 million that will be paid to the Ontario government for outstanding commitments under the Canada-Ontario agreement; $298 million for gas tax funding for municipalities in Ontario; $400 million for a new road access for the Windsor-Detroit border crossing; and $963 million to fund transit projects in greater Toronto. That is only about half of what I have here.

I ask my colleague, is this budget good for Ontarians in 2007?

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1:10 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Mr. Speaker, we could read the same list for every province and territory in the country. Budget 2007 is about that. It is about sharing the wealth of resources of the federal government with all Canadians, sharing it equitably among the provinces, coming up with a principled formula to share federal revenues.

I know the House has been talking a lot about equalization of late, but the much larger portion of funds that the federal government distributes comes under the Canada social transfer. That has been dealt with in a very equitable, fair manner. In fact, I have not heard a single province indicate it has any complaint whatsoever on the Canada social transfer. It has been dealt with in a equitable manner. It is good to Ontario, but it is also good to every province. It is good to everybody within Confederation.

Budget 2007 makes significant investments in all sorts of things. In my riding it means that Highway 407 will be completed back into Highway 115. I cannot tell the House how much that will mean to the economy in Peterborough. This budget is getting that done for the citizens of my riding. It is getting a lot done for the citizens of every riding.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1:10 p.m.

Liberal

Andrew Telegdi Liberal Kitchener—Waterloo, ON

Mr. Speaker, I recognize the member is new to the House, but when he talked about debts and deficits, what he failed to mention was this. The total national debt left by the Liberal government when the Conservatives came to power 1984, was $200 billion. In nine short years, after a record deficit, that $200 billion debt ended up being a $500 billion debt, a $300 billion increase.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1:10 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Mr. Speaker, the Liberals often forget that the national debt actually increased in their time in government. I hate pointing that out, but it is a fact.

The member is voting against the GST refund on school buses in his own riding, something his school board has been fighting for, for I believe seven or eight years. That is what he will vote against, money returned to his own school board.

Honestly, I find it incomprehensible that the members opposite—

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1:10 p.m.

The Acting Speaker Royal Galipeau

Before we resume debate, I would ask the cooperation of all members to check their cell phones and BlackBerries and turn them off. We are just about to hear a speech from the hon. member for Cape Breton—Canso who has the floor.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1:10 p.m.

Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, this has been a great Friday debate. There has certainly been an interesting exchange of views.

I want to go on record and say that the budget put forward by the government is not completely horrible. It is horrible, yes, but not completely. Some aspects of the budget, such as the tax incentive and capital gains provisions for fishermen, who are moving licences, make sense. However, it misses the mark so much and hurts so many of the most vulnerable Canadians that in no way can the official opposition support the budget.

The previous speaker, the member for Peterborough, indicated that governing is about making difficult choices, something that the official opposition did not know about when it was in government. That is just not right.

We talked about the $42 billion deficit. The previous government made the difficult decisions on behalf of all Canadians. It sent home 45,000 federal employees in order to balance the books. It made cuts in every department. Every Canadian felt those cuts. They were tough choices, but in doing so, we balanced the budget and righted the fiscal ship of the country. From 1995 on, we began to experience some real fiscal growth.

The bar has been set by the previous government for what it takes to provide financial leadership for the country. We can look at eight surplus budgets, tax relief in all those budgets going forward for every Canadian, reinvestment in important programs such as infrastructure, health care, education. We saw an attack on the accrued debt . Each year that debt was paid down to loosen up additional operational funds for the federal government.

The template and opportunity was there for the government to fall in line and continue to provide good fiscal management for the people of Canada, but it missed the mark. If the government's budget was a road map to prosperity for Canadians, it would be comparable to the people at Rand McNally doing a road map from Ottawa to Toronto and ending up in Boise, Idaho.

The government has missed the mark completely, especially when we factor in the fact that it inherited was the single best set of books ever been transferred to an incoming government. There was a $13 billion surplus. How does anybody mess that up? How could anybody possibly mess that up? However, it did and it hurt a great number of people. That is why I feel obliged to go on record today and identify the some of shortcomings in the budget.

I will speak about a group that I really do not believe has had a voice, certainly off the government bench. It is not talked about much. It is a community that means so much to us as Canadians, and that is the sporting community. If anybody was shortchanged in this budget, it is the sporting community.

The government loves to beat its chest. It made two promises. One promise was a personal tax deduction of $500 to anybody who registered their son or daughter in a sporting activity. What that really equates to, once the deduction is made, is probably between $80 and $90 a year.

I know, Mr. Speaker, you are the father of elite athletes. If you sit down at the kitchen table, I think the conversation goes a bit deeper than saying, “the Tories are offering me $80 and I cannot miss that opportunity”. We know it is good to involve our children in sports and that is what will motivate us. The $80 is a joke. It has no impact at all.

I have three boys myself who play competitive sport. Am I going to use it? Yes, I am, but they are going to play anyway.

The tax deduction has no impact to motivate parents to enrol their kids in sport. We know that if we can keep our youth active, if we can keep them involved, it is positive in so many aspects, physically, mentally, emotionally and socially. It reaches into all aspects of those young lives and it is a positive thing, but the tax deduction does not do it.

The other promise that the Conservatives made was that 1% of their health care budget should go toward sport and physical activity. Where is that? Nowhere. There is no sign of it whatsoever. The sporting groups were let down. The sporting groups thought that they might have an opportunity with this promise.

This is what I got from the group called Sport Matters Group. It is from Ian Bird, senior leader for the Sport Matters Group. The Sport Matters Group is a collective of provincial and federal sport leaders that work toward improving the future of sport in the country. Ian Bird said:

Budget making is the central opportunity for governments to fulfill their commitments to Canadians....There had been clear indications from successive Ministers for Sport that today’s budget papers would how the government would invest in its own promise. We’re still waiting.

And they still will be waiting.

What we have seen is a shell game going on within the government in how it approaches sport. Had the government invested that 1%, it would equate to about $540 million annually that would go toward sport.

The template is there. The sports community knows what has to be done. We need a long term athletic development model, taking an active approach to investing in youth from the playground to the podium, working with the provinces and giving the provinces the resources they need, human and financial resources, so they can help deliver on these very important programs. They cannot do that if they do not have the money.

We understand fully as Canadians how important it is that we have heroes. Before there was a Sidney Crosby, there was a Mario Lemieux and a Wayne Gretzky, who was Sidney Crosby's hero. Before there was a Katrina Lemay-Doan or a Marc Gagnon, we knew that Gaétan Boucher was the greatest speed skater to come from Canada. It was his efforts and his gold medal performances in the Olympics that motivated these young skaters. We need the ability to create those heroes to further motivate our younger people to engage in sport.

The Conservatives took that away. Money was accelerated for the own the podium program. Was there any new money? Absolutely not a dollar. The Conservatives pulled the rug out from under the road to excellence program, which would provide funds to our summer athletes going to Beijing in 2008. The Conservatives turned their backs on our summer athletes by taking away those funds.

The Liberal Party talked about in our platform a specific envelope of money that we could invest in very specific sport facilities. I spoke on Wednesday night in Moncton at the Maritime Recreation Facility Conference. These are good people who work their tail off day in and day out to try to provide opportunities for our youth and for our populous to engage in sport. They work trying to keep costs down, keeping registration fees at a reasonable amount. However, the costs continue to rise and accumulate.

Infrastructure, refits and retrofits are expensive. We talked about an envelope of money that we could work with through the provinces so that investment could be made and the costs could come down. The buildings would operate in a more efficient manner, helping the environment and the operators on an annual basis.

The sporting community put this forward. It advocated very much for this type of opportunity to work with the federal government. There is no sign of this initiative whatsoever in this budget from the government.

It is not that the Conservatives just turned their backs on the initiatives that were being put forward by the sporting community, but they also did not deliver on the promises they made to the sporting community. It is shameful.

I would be remiss if I did not address a number of other things in my speech. Literacy, of course, is something that I think has impacts right across this country. Almost 45% of adult Canadians still have a challenge in reading, writing and communicating. If we give an adult the opportunity to engage in the economy, and to engage in the community and in education, we know that every increase of 1.5% in literacy increases the productivity of this country by 2.5%. That is a pretty significant return on our investment.

However, here is what we saw from this government with regard to the $13 billion surplus fund. The government said that of course what it had to do was cut literacy and make it tougher for the people who find it hardest to engage in our economy and our society. Let us make it a little bit tougher on them, said the government. The government carved money out of the literacy fund.

This should not have surprised anybody when the current Minister of the Environment is on record as saying that it is a waste of time teaching adults to read and write. If that is where the essence of it comes from, we are in a sad state here. Certainly this party on this side is concerned about the most vulnerable in our society and where they are going to arrive if we continue to see the reign of that government.

As well, we know that this has been discussed on a number of occasions over the last while. The previous speaker stood up and beat his chest about what they are doing for students. One of the single greatest things we can for our young people is offer them an opportunity to hold a summer job. It contributes to that student's life in so many ways. Many times, a summer job is the first work opportunity they have. They have the opportunity to put together a few dollars to go back and re-engage in the fall in their education.

We witnessed a debacle here over the last number of weeks with this government in regard to the money that was carved out of the summer student employment grants. Not only did that devastate community groups, but it as well just ripped the soul out of job opportunities for students across this country.

There is a question that has to be asked on the issue of the budget because there is a finite envelope of money in the HRSDC and Service Canada funding. The Conservatives have had to go back to try to clean up the mess because the Minister of Human Resources and Social Development has been inundated. I know that the opposition certainly has been pounding him on a regular basis to fix the mess he has made.

I think it was his predecessor that set the template, and the trap was sprung on the current minister, but he is wearing it and it is his job to fix it. He has to go back and fix it. The company line over there is that the government always goes with this second round of funding. Yeah, right, tell me that one now, I say. The Conservatives are going back to try to fix the mess. Any community groups that had a grant last year and have a current valid application on file are going to receive funding. They should receive funding. They should have received funding in the first place.

The government is going back to fix the mess, but it is going to cost this government a great deal of money. Where is that money going to come from?

I remember the Minister of Fisheries when he was in opposition. He was a pretty noble member. He would talk about all the fish plant employees when they would lose their jobs. He would beat the government, asking what it was going to do for those out of work fish plant employees and what it was going to do for the communities most affected. We have not heard a word from him since then.

Is HRSDC going to have to steal the money out of the money that should be going toward helping people like those in Canso, like those in the outports of Newfoundland who have seen their fish plants closed, those people who need that help and those retraining moneys now? There is only one envelope of money and these are the people who are going to suffer as a result of this budget and the actions in this budget.

We have talked about rural communities. It is unbelievable to see how the rural communities got dealt out of this budget. Let us talk about CAP sites. I am sure that all members in this House have received interventions from their constituents about CAP site closures. Now the Conservatives have come back to say that they will keep the sites open one for more year, one more time, but then, we know, there is a drop-dead date. These communities get a one year reprieve on the CAP Sites. CAP sites are essential in rural communities and this opposition will fight to continue to have CAP site funding provided for those essential services.

Regarding access to broadband, through Industry Canada we had an excellent program, the BRAND program, that allowed Canadians no matter where they lived in this country the opportunity for communities to partner with various agencies and stakeholders to bring broadband to these communities. It was a tremendously successful program.

Infrastructure is not just about water, sewer and roads. Access to high speed broadband is essential. If we want to grow those rural communities, the government should be investing in it, but we have seen no movement at all and no investment at all, and it is the rural communities that are going to suffer.

If I could have another 10 minutes on the accord, I would love to wrap up a Friday on that one, but my time is getting close to expiring. As I have said, this budget brings a great deal of pain to the people I represent, and certainly I come here each week to Ottawa to represent the views of my riding and its situation. In no good conscience could I stand and support this budget.

Budget Implementation Act, 2007Government Orders

June 8th, 2007 / 1:30 p.m.

The Acting Speaker Royal Galipeau

It being 1:30 p.m., the House will now proceed to the consideration of private members' business.

When Bill C-52 returns to the House, there will be three minutes left for the hon. member for Cape Breton—Canso, plus 10 minutes of questions and comments.

The House resumed from June 8 consideration of the motion that Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, be read the third time and passed, and of the motion that this question be now put.

Budget Implementation Act, 2007Government Orders

June 11th, 2007 / noon

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I rise to speak to Bill C-52, the Conservative government's budget. I am unfortunately the first person to rise after the tawdry, cheap events of last Friday in the House, the unparalleled, unprecedented, tawdry events of a government that is so desperate now to get its budget through it had to go down into the bowels of the House of Commons to look through dusty books, looking back to the 1960s and the 1970s, to find some sort of procedural trick that would allow it to pass the budget when it knew that most Canadians are opposing it. In the last few days we have seen the budget self-destruct, as many of the Atlantic provinces, Saskatchewan and many Canadians from coast to coast to coast have said very clearly that the budget is manifestly not in the interests of Canada.

Last Friday, with two minutes to go in private members' business, the House leader stood to try to conjure a trick out of his pocket and try to force through, what he called “a national emergency”, the budget, without a vote, not complete the debate only to force it through.

As members well know, the House refused that. However, the fact that the Conservatives would use such a cheap and tawdry trick to try to get their budget through I think belies the reality. The Conservatives acknowledge now that their budget does not have the popular support of Canadians. As a result of that, they had to resort to this trick.

What they used was a procedural trick to try to declare this a national emergency. The only emergency is the rapid and constant fall of the Conservatives in public opinion polls. We have seen in places like British Columbia, Saskatchewan and Nova Scotia that the Conservative vote continues to erode. Why does it continue to erode? Not only because of tricks like that, the trick of last Friday, a trick that manifestly failed, but also because their budget simply does not have credibility.

I will talk a bit about the situation that Canadians are really living through while the Conservatives are playing their little political games here in Ottawa. From there, I will talk about how the budget does not address what are very clear concerns, crises that are occurring in main streets across the country.

Instead, very clearly what we have is a Conservative budget, a Bay Street budget, the same as the Liberal budgets were, oriented toward corporate tax cuts and huge handouts, shovelling money off the back of a truck through the oil and gas sector. That seems to be the Conservative priorities. Canadians are living a much different reality.

Let us talk about the reality of most Canadians. Let us talk about average family incomes. Since 1989, Statistics Canada tells us, since the signing of the Canada-U.S. free trade agreement, most Canadian families have seen their income fall. They are earning less money now than they were then.

What we have seen under now more than 15 years of Conservative and Liberal economic policies is the wealthy are fabulously so. They are able to buy their 15th or 16th Lamborghini without any problem. However, most Canadian families are earning less. It is not just that they are working harder and longer weeks, and I will come back to those statistics, the bottom line is Conservative and Liberal economic policies have manifestly failed.

Let us look at the figures. The poorest of Canadians, the family with an income of less than $20,000 a year, those below the poverty line, have seen over this 15 year period the loss of about a month's income. What they used to earn in 12 months, they are living on 11 months' worth of income. We have seen a 10% fall in real income for the poorest of Canadian families.

The Conservative budget does absolutely nothing to address that catastrophic fall in Canadian income levels for the poorest of Canadian families. It is no secret, 300,000 Canadians will be sleeping in the parks and main streets of our country tonight, 300,000 Canadians who no longer even have the resources to have a roof over their heads. The Conservative budget does absolutely nothing to address the crisis in homelessness and the catastrophic fall in the incomes of the poorest of Canadians.

Let us go to the next group. Another 20% of Canadians, and let us call them the working class, are families earning less than $36,000 a year. They are now earning two weeks' less income than they were in 1989.

In other words, after 15 years of Liberal and Conservative economic policies, they have seen their incomes fall so that they are now living on 50 weeks of income, whereas they used to live on 52 weeks of income. They have actually lost two weeks of income and are trying to make ends meet with far fewer financial resources.

Let us continue on to the middle class. It is the same thing for families earning less than $56,000 year. They are now earning two weeks' less income than they were in 1989.

We now are talking about 60% of Canadian families who are struggling to get by on fewer and fewer financial resources. The Liberals did absolutely nothing to address this. They simply shovelled money at the wealthiest of Canadians. The Conservatives now are doing exactly the same thing.

Even higher income earners, the upper middle class, have actually seen no income improvement since 1989.

That is 80% of Canadian families who see stagnation or who have seen increasing impoverishment under the watch of those parties over the last more than 15 years.

Who has profited from the Canada-U.S. free trade agreement and NAFTA and from the Conservative and Liberal economic policies shovelling money at the corporate sector? There are unbelievable amounts of resources to give to the oil and gas industry and the banks, and to give in corporate tax cuts, but who has profited? Only one sector has: the wealthiest of Canadians. In fact, Statistics Canada tells us that it is the wealthiest 5% of Canadians who have seen their incomes skyrocket over this period.

What the people who are listening to us today or who read these remarks in Hansard say, what the people say certainly as we knock on doors in my neighbourhoods, is that they cannot understand why Ottawa does not get it. Why it is harder and harder to make ends meet, they say, and yet the government seems to want to favour the wealthiest of Canadians with corporate tax cuts? They say that the government does not seem concerned about ordinary, hard-working Canadian families. They ask that question.

We have seen the Conservative response. The Conservatives' response was a cheap conjuring trick to try to get their budget through before Canadians wake up to what an appallingly negative impact it will have on them.

The Conservative government erodes resources in health care. It does not do anything to open up doors to post-secondary education and training. It throws a few dollars here and there but does not address the underlying systemic problems in this Confederation, which has led to the fact that most Canadian families are falling further behind and most Conservative and Liberal economic policies are favouring that small proportion of Canadians who have everything they could possibly want.

What is wrong with this picture when the top 5% of Canadian income earners receive most of the attention of Conservative and Liberal governments? Those governments simply shovel money at them. What is wrong with this picture when ordinary working families are forgotten?

I have talked about the fact that income levels are actually falling while the Conservatives have this delusion that everything is just peachy-keen. They say that because they look at the job figures. The job figures from Statistics Canada actually prove the point: the jobs that are created today are not sustainable manufacturing jobs or family-sustaining jobs. They are part time and temporary jobs. They are jobs paying the minimum wage.

Every time the finance minister stands up and says that we have full employment, what he is actually saying is that we have full employment like most third world countries have full employment. Canadians are scraping to get by on minimum wage, part time jobs and whatever temporary contracts they can get. They are struggling to keep a roof over their heads. The finance minister does not recognize that the economic policy of the past 15 years has actually led to a steady impoverishment.

It is not because Canadians are not working harder and harder. The Community Social Planning Council of Toronto produced a study just a few weeks ago which indicates that for the average family raising children the annual number of hours worked went up by 200 hours, that is, the average family worked 200 hours more in 2004 than in 1996.

What this means is that the average Canadian working family is working five weeks more. Those families are trying to jam another five weeks of work into a working year. They are struggling. They are putting in an unprecedented number of overtime hours, yet their revenue levels are lower than they were in 1989. What a destruction of our quality of life. What a failure on the bottom line.

Canadian families have seen their incomes tank, yet they are putting in five weeks more of labour in a 52 week year. It is an annual average of 200 hours more worked in 2004 than in 1996. It would be even higher today. Overtime hours have gone up by over 30% and yet most Canadian families are earning less now than in 1989.

That is what is fundamentally wrong with how the Liberals and Conservatives have addressed economic policy for the past more than 15 and nearly 20 years. They simply do not understand the impact of their policies. They are economic illiterates. They cannot check the bottom line to see if the economic policies have actually made sense. They are shovelling money at the corporate sector with more and more corporate tax cuts when we already subsidize the corporate sector to an unparalleled extent through the subsidies we provide to medicare.

Our medical system now in place offers a competitive advantage that no American corporation can match, yet the corporate sector is continuing to request lower and lower tax rates when our subsidies already give them a very clear competitive advantage. What is wrong with this picture when the corporate sector fails to acknowledge that the hard work of Canadians from coast to coast to coast gives the sector a competitive advantage but that corporations have to pay their fair share of taxes in order for that competitive advantage to be sustained?

They cannot have their cake and eat it too. Corporate leaders need to be told that. They need to be told that they have to be responsible, and that since we are already subsidizing them to an unparalleled extent, with study after study showing that medicare is a huge competitive advantage when Canadian companies compete with American ones, they cannot at the same time have lower corporate tax levels than they have in the United States. They cannot have both. They have to make clear and responsible choices.

We have not seen those responsible choices from the Liberals. We certainly have not seen them from the Conservatives, and last Friday in particular attests to that, but things have to change and that is certainly why more and more Canadians are looking to park their votes with another political entity. We certainly are seeing a greater interest in new ideas. The NDP, of course, since its inception, has always been the birthplace of new and responsible ideas, whether they are economic or financial in nature or in terms of social policies.

Before I move on to the next portion of my presentation, I do want to say one thing. The ministry of finance actually charted NDP, Liberal, Conservative and even the Parti Québécois governments over a 20 year period. It charted and compared the actual year-end fiscal returns to the budgetary promises of each of those governments.

This was done by the federal ministry of finance, which we certainly could not say is an NDP ally in any way, but that long term study, the only long term study that has ever been undertaken on this phenomenon of what the actual fiscal period returns show, clearly proved that the NDP as a party and NDP elected officials as individuals are the best fiscal managers. The worst were the Liberals. No matter what their promises are, 86% of the time the Liberals actually run a deficit. The Conservatives were a little better, actually running deficits 66% of the time over that 20 year period.

The NDP projected surplus or balanced budgets most of the time, and most of the time we actually achieved that. There is no difference between the spin and the results, between the rhetoric and the reality. We actually perform better in terms of fiscal management than Conservatives or Liberals. No wonder Canadians are looking around now and taking a hard look at what political parties promise and what they actually deliver.

The NDP is the only party that actually addresses the economic reality of most Canadian working families and we are the best financial managers. Those are two reasons why we are seeing increasing interest in our party.

Before I move on to B.C. issues, I want to mention the catastrophic collapse of our manufacturing sector. We have trade policies from the government, like we did from the previous government, which do not address the fact that value added and manufacturing production is collapsing across this country. A quarter of a million family-sustaining jobs have been lost in the last few years under the Liberal watch and under the Conservative watch.

Let us look at some of the impacts of that manufacturing loss. In Nova Scotia, 20% of manufacturing jobs have been lost. In Quebec, 18% of manufacturing jobs have been lost. In Windsor, and we have had very eloquent testimony to this effect from the member for Windsor—Tecumseh and the member for Windsor West, we have actually seen 35% of manufacturing jobs lost.

Windsor is in crisis. Southern Ontario is in crisis. The minimum wage, part time jobs that the finance minister is offering do not in any way compensate for this hemorrhaging of manufacturing jobs.

In Toronto, over 100,000 manufacturing jobs have been lost. That is 21% of manufacturing jobs in Toronto. In Oshawa, it is 21%. In Thunder Bay, it is over 20%. We are seeing a hemorrhaging of manufacturing jobs across this country and there is nothing in the budget that addresses this crisis.

We have a variety of crises that have developed over the past 15 years under the Liberal watch. The Conservatives said they would take a completely new approach. Instead, they have taken exactly the same do nothing approach, a shovel money at the corporate sector approach, which has not addressed the catastrophic fall in manufacturing jobs. It has not addressed the very real erosion of family income since 1989 and the signing of the Canada-U.S. free trade agreement.

This approach does not address the homelessness crisis. It does not address the inability of most families to have their kids or adults move on to post-secondary education, apprenticeship and training. It does not address that crisis. It does not address the health care crisis. Instead of dealing with the underfunding of our public health care system, we have seen the Conservatives take exactly the same road as the Liberals and look to more privatization.

We know that in the United States more privatization means more costs and fewer benefits. The United States health care system costs twice the amount per capita that the Canadian system does and yet 60 million Americans at any point in one year will have absolutely no health care coverage whatsoever. It is a failed American model that the Conservatives are pushing, as the Liberals did before them.

As I come from British Columbia, I would like to move on now to the budget and what it does not do for British Columbia. The finance minister rose in this House and said that his Canada went from the Alberta Rockies to Newfoundland and Labrador. He completely excluded British Columbia.

I admire his honesty, because there is nothing in the budget that addresses clear Conservative promises to B.C. The Conservatives said they would deal with the leaky condo crisis. The Conservatives promised they would take action on that. Instead, they have left 60,000 British Columbia families with absolutely no support in the leaky condo crisis.

With softwood lumber, we have seen the complete disregard for softwood communities in British Columbia and elsewhere.

Regarding the pine beetle issue, the Conservatives promised and spun but they did not provide the funding. The Kamloops Daily News said the following just last Friday on the pine beetle, “When will [the government] come to the table and be a part of the solution?” For whatever reason, the feds just do not get it on the pine beetle. We have seen devastation throughout the interior of British Columbia. The government has done absolutely nothing to address that.

I could go on, with the World Police & Fire Games and a whole host of other issues such as the flooding in the Fraser River and the Skeena district of British Columbia. We have seen only $16 million offered up for the flooding even though we know that $22 million is required just to protect the city of Chilliwack alone.

I could go on and on but the reality is that the Conservative government just does not get it, which is why it tried to force this budget through by a conjuring trick last Friday.