Bill C-28 (Historical)

Budget and Economic Statement Implementation Act, 2007

An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007 and to implement certain provisions of the economic statement tabled in Parliament on October 30, 2007

Part 1 implements goods and services tax and harmonized sales tax (GST/HST) measures proposed in the March 19, 2007 Budget but not included in the Budget Implementation Act, 2007, which received Royal Assent on June 22, 2007. Specifically, the Excise Tax Act is amended to
(a) increase the percentage of available input tax credits for GST/HST paid on meal expenses of truck drivers from 50% to 80% over five years beginning with expenses incurred on or after March 19, 2007;
(b) increase the GST/HST annual filing threshold from $500,000 in taxable supplies to $1,500,000 and the annual remittance threshold from $1,500 to $3,000, both effective for fiscal years that begin after 2007;
(c) increase the GST/HST 48-hour travellers’ exemption from $200 to $400 effective in respect of travellers returning to Canada on or after March 20, 2007; and
(d) implement changes to the rules governing self-assessment under Division IV of Part IX of the Excise Tax Act to ensure that GST/HST applies appropriately in respect of intangible personal property acquired on a zero-rated basis and consumed in furthering domestic activities, applicable to supplies made after March 19, 2007.
Part 2 amends the non-GST portion of the Excise Tax Act to implement measures announced in the March 19, 2007 Budget. Specifically, the excise tax exemptions for renewable fuels, including ethanol and bio-diesel, are repealed, effective April 1, 2008.
Part 3 implements income tax measures proposed in the March 19, 2007 Budget but not included in the Budget Implementation Act, 2007, which received Royal Assent on June 22, 2007. In particular, it
(a) introduces a new Working Income Tax Benefit;
(b) eliminates income tax on elementary and secondary school scholarships;
(c) eliminates capital gains tax on donations of publicly-listed securities to private foundations;
(d) enhances the child fitness tax credit;
(e) expands the scope of the public transit tax credit;
(f) increases the lifetime capital gains exemption to $750,000;
(g) increases the deductible percentage of meal expenses for long-haul truck drivers;
(h) provides tax relief in respect of the 2010 Winter Olympic and Paralympic Games;
(i) allows for phased-retirement options for pension plans;
(j) extends the mineral exploration tax credit;
(k) enhances tax benefits for donations of medicine to the developing world;
(l) streamlines the process for prescribed stock exchanges;
(m) introduces an investment tax credit for child care spaces;
(n) introduces a new withholding tax exemption with respect to certain cross-border interest payments;
(o) prevents double deductions of interest expense on borrowed money used to finance foreign affiliates (the Anti-Tax-Haven Initiative);
(p) eases tax remittance and filing requirements for small business;
(q) introduces a mechanism to accommodate functional currency reporting;
(r) provides certain tobacco processors that do not manufacture tobacco products with relief from the Tobacco Manufacturers’ Surtax; and
(s) provides authority for regulations requiring the disclosure by publicly traded trusts and partnerships of information enabling investment managers to prepare the tax information slips that they are required to issue to investors on a timely basis.
Part 4 implements the disability savings measures proposed in the March 19, 2007 Budget. The measures are intended to support long-term savings through registered disability savings plans to provide for the financial security of persons with severe and prolonged impairments in physical or mental functions. Part 4 contains amendments to the Income Tax Act to allow for the creation of registered disability savings plans. It also enacts the Canada Disability Savings Act. That Act provides for the payment of Canada Disability Savings Grants in relation to contributions made to those plans. The amount of grant is increased for persons of lower and middle income. It also provides for the payment of Canada Disability Savings Bonds in respect of persons of low income.
Part 5 implements measures that provide for payments to be made to provinces as a financial incentive for them to eliminate taxes on capital under certain circumstances.
Part 6 enacts the Bank for International Settlements (Immunity) Act.
Part 7 amends the Pension Benefits Standards Act, 1985 to permit phased retirement arrangements in federally regulated pension plans by allowing an employer to simultaneously pay a partial pension to an employee and provide further pension benefit accruals to the employee. These amendments are consistent with amendments to the Income Tax Regulations to permit phased retirement.
Part 8 authorizes payments to be made out of the Consolidated Revenue Fund for the purpose of Canada’s contribution to the Advance Market Commitment.
Part 9 amends the Canada Oil and Gas Operations Act to authorize the National Energy Board to regulate traffic, tolls and tariffs in relation to oil and gas pipelines regulated under that Act.
Part 10 amends the Farm Income Protection Act to allow financial institutions to hold contributions under a net income stabilization account program.
Part 11 amends the Federal-Provincial Fiscal Arrangements Act to provide for an additional fiscal equalization payment that may be paid to Nova Scotia and Newfoundland and Labrador. This Part also specifies the time and manner in which the calculation of fiscal equalization payments will be made and it amends that Act’s regulation-making authority. In addition, this Part makes consequential amendments to other Acts.
Part 12 amends the Canada Education Savings Act to clarify the authority of the Minister of Human Resources and Social Development to collect, on behalf of the Canada Revenue Agency, any information that the Canada Revenue Agency requires for purposes of administering the registered education savings plan tax provisions.
Part 13 authorizes payments to be made out of the Consolidated Revenue Fund to an entity, designated by the Minister of Finance, to facilitate public-private partnership projects.
Part 14 implements tax measures proposed in the October 30, 2007 Economic Statement. With respect to income tax measures, it
(a) reduces the general corporate income tax rate;
(b) accelerates the tax reduction for small businesses;
(c) reduces the lowest personal income tax rate, which automatically reduces the rate used to calculate non-refundable tax credits and the alternative minimum tax; and
(d) increases the basic personal amount and the amount upon which the spouse or common-law partner and wholly dependent relative credits are calculated.
Part 14 also amends the Excise Tax Act to implement, effective January 1, 2008, the reduction in the goods and services tax (GST) and the federal component of the harmonized sales tax (HST) from 6% to 5%. That Act is amended to provide transitional rules for determining the GST/HST rate applicable to transactions that straddle the January 1, 2008, 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 January 1, 2008, pursuant to a written agreement entered into on or before October 30, 2007. The Excise Act, 2001 is also amended to increase excise duties on tobacco products to offset the impact of the GST/HST rate reduction. The Air Travellers Security Charge Act is also 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 January 1, 2008.

Budget and Economic Statement Implementation Act, 2007

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, I rise today to speak on Bill C-28, in which I take a great interest. First of all, I should point out that this bill introduced by the Conservative government was drafted for purely partisan reasons.

By drafting a single bill to implement the provisions of the March 2007 federal budget, the provisions of the October 2007 economic statement and the side deal with Newfoundland and Labrador and Nova Scotia on equalization, the government has introduced legislation that may be designed to provoke an early federal election.

The Conservatives could simply have introduced a separate bill for each part of Bill C-28.

But no. It is important to remind this House that even though the Bloc Québécois voted for the March 2007 federal budget, we have always opposed side deals on equalization.

Now, Nova Scotia is getting new benefits under an accord that the Bloc Québécois has always denounced. We also opposed the economic statement because it did not address the Bloc Québécois' five priorities.

For example, the measures in the economic statement do not meet the urgent needs in the manufacturing and forestry sectors and do not include an older worker assistance program, even though the Conservative government could afford one, given the $11.6 billion surplus it announced in the economic statement.

For all these reasons, the Bloc Québécois, as a responsible party that defends Quebec's interests, will vote against this bill.

As for the economic statement, this government has demonstrated that it is completely indifferent to the problems facing workers in the manufacturing and forestry sectors and the communities that depend on those sectors.

The Conservatives have demonstrated once again their total disdain for the lot of these thousands of workers who have been so greatly affected. This attitude appears all the more disdainful when we realize that the federal government has huge financial means with which to provide them with assistance.

The Conservative government had the means to help the manufacturing sector by providing loans for new production equipment and for massive investments in innovation.

It could have helped older workers as well. We estimate that it would cost $60 million to set up an income support program for older workers, something that we have been demanding for a very long time and that Quebec has also been calling for since the POWA was terminated.

Despite its vast surpluses, the government could not even come up with a hundred dollars a month to increase the guaranteed income supplement for seniors and ensure that the poorest of them have enough income to keep them above the poverty line.

There is nothing here for our manufacturing and forestry sectors, nothing for older workers who lose their jobs, and nothing to help seniors. Yet the Conservatives did not hesitate to cut taxes. What ridiculous propaganda. Who will benefit from these tax cuts? Rich oil companies in western Canada. The Conservative Party's only goal is to help the oil industry and, of course, scuttle the Kyoto accord.

These tax cuts will not do forestry companies and manufacturers one bit of good because these businesses are in crisis and are not making a profit.

All told, this government has presented measures that are completely out of touch with Quebec's priorities but that are great for their friends, the rich oil companies.

Once again, this proves that Quebec ministers in the current federal government have been sidelined. They have no real power, they cannot defend Quebec's interests, and they are just there to promote Alberta's oil industry.

The Conservative government's shameful indifference to the problems facing the manufacturing sector and the powerlessness of Conservative government members from Quebec are jeopardizing key economic sectors in Quebec.

Take job losses in Quebec's manufacturing sector: 135,000 manufacturing jobs—one in five—have been lost in Quebec since December 31, 2002, and 65,000 of those since the Conservative Party came to power. Nearly half of the 275,000 jobs lost in Canada during that period were lost in Quebec. The Conservative Party says that it is acting in the best interest of all Canadians, but it is certainly not acting in the best interest of Quebeckers.

Unfortunately, we have not seen the end of this yet. Yesterday, AbitibiBowater announced the permanent closure of several locations, including the Belgo mill in Shawinigan. Between now and March 2008, over 500 jobs will be lost. This is an economic disaster for Mauricie because closing this mill means losing $30 million in salaries and $60 million in economic spinoffs for the Shawinigan region. This is an economic disaster.

What is the government waiting for?

One thousand Quebeckers who work for AbitibiBowater will lose their jobs. This is a tragedy for these workers and their families, and it is dreadful news to be receiving just before Christmas.

The Conservative government needs to take a long hard look at how it has managed the forestry and manufacturing crisis. Everyone has been begging for help for years now, but the government just ignores those pleas, or promises measures that, for now, do not amount to anything.

Forestry workers have to know that this government is refusing to help them. That is unacceptable. The government has to help these workers who are going through the worst crisis in their history, a crisis that is made worse by the government's mismanagement.

In my riding of Berthier—Maskinongé, which I have the honour of representing, the furniture sector is quite important. In Berthier—Maskinongé, we have a number of innovative and dynamic companies and skilled and creative workers who, in the past, like everywhere else in Quebec, have shown that they can face the new challenges of international competition.

Now, in light of this new trade reality we are experiencing, this industry needs the government's support to help it adapt.

Let us not forget that this furniture industry has seen a 22% decrease in its labour force. It is currently generating roughly 24,000 jobs, while in 2000 it generated roughly 30,500. Employment is decreasing in the furniture industry and the federal government, with its huge surplus, is not doing anything about it.

In December 2006, I tabled a notice of motion calling on the federal government to implement an aid package to support the furniture industry as it adjusts to the rising Canadian dollar. I also asked for support to help the industry cope with fierce competition from emerging countries. Unfortunately, the federal government chose not to present any aid package or research support program to help this industry adapt.

As I have indicated, the Conservative government had the means to help the manufacturing sector by providing loans for new production equipment and for massive investments in innovation.

What more can I say? The federal government is only working on defending the oil industry and abolishing any form of intervention to decrease greenhouse gas emissions. It is only working for western Canada.

It presented an economic statement that is out of touch and does not meet our needs. In this statement, the government chose to help western Canadian oil companies and left the manufacturing sector to fend for itself at a time when it is experiencing the worst situation in years.

The Bloc Québécois cannot accept that the government is standing idly by as Quebec's manufacturing and forestry sectors crumble and fall.

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, my colleague from the Bloc had a lot to say.

We as parliamentarians and Canadians in general would like some understanding of the framework of the fiscal situation of the Government of Canada.

In Bill C-2, the accountability act, there was the commitment to have what I call truth in advertising. It was in the bill but it has not been brought into force to have a budgetary officer of Parliament to tell Canadians and parliamentarians what the surplus will be.

When the Conservatives were in opposition, the then leader of the official opposition who is now the Prime Minister was very clear that he wanted to have an understanding of what the surpluses would be so we could have a debate in this place and Canadians could have a debate in the country as to where the money should be spent.

Sadly, the government is doing what the previous government was doing, which is to treat the nice big fat surplus as if it were the government's, when in fact we know it is Canadians' surplus. The Conservatives just spirit money over to the debt and bring forth a fiscal update which we cannot debate to the extent that we debate a budget. We cannot invest the surplus in our communities to deal with the crumbling infrastructure, housing, et cetera.

I would like the hon. member's take on why the government has not brought into force the budgetary officer of Parliament. Why does he think the government is hypocritical on the issue of debating the surplus and not having a real debate in this country about the country's finances?

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, I would like to thank my colleague for his excellent question.

At the beginning of the year, the government forecast a $3 to $5 billion surplus. According to the Bloc's estimates, the surplus will be $16 billion, at a time when our companies are shutting down and the forestry sector is in serious trouble. But the government is doing nothing.

Let me say this. We are a sovereignist movement. We want a sovereign Quebec. If we were independent and had access to all the taxes paid by Quebec workers, we could better support our manufacturing and forestry industries as well as the poor. Furthermore, we could develop social housing.

But here in Ottawa, governments seem to get bogged down, Liberals and Conservatives alike. They are doing nothing to help older workers. We are asking for some of the money to be returned to the unemployed. This week, changes to the employment insurance fund were voted down. A total of $55 billion was taken out of the pockets of workers through the excessive premiums charged to employers and employees. Both of these governments have kept helping themselves to workers' money and blocking improvements to the employment insurance program.

These are all examples of what makes it difficult for Quebec to be part of this big family. My colleague had every reason to mention the $16 billion surplus, when in Quebec, we have problems providing health and education services for our population. Here, they have a $16 billion surplus, while our companies are shutting down and cannot get help. That is my answer to his question.

[John McCallum, Liberal, Markham—Unionville, ON]

Mr. Speaker, it seems to me that this government has missed several opportunities to support the manufacturing and forestry sectors, especially considering the strength of our dollar. Everyone except the government understands that we have already lost so many jobs and many more will be lost in the future. This is one subject on which the Bloc Québécois and my party agree.

My question for the hon. member is as follows. What does he think the government should do to support the manufacturing sector?

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, the rising Canadian dollar and competition from Asia is having an impact on our manufacturing industry. Next week, we will debate Bill C-411. I therefore invite the Liberals to vote in favour of this bill, so it may reach second reading in the House of Commons.

Bill C-411 would establish new criteria to better protect our businesses from competition from Asia. It defines five criteria that would allow customs officers to better protect Canadian and Quebec businesses from Asian competition. I would be surprised to see the Conservative government vote in favour of this bill, because it prefers completely open markets and it has no concerns. It wants a wide open market.

We find it surprising that supply management is still around under this government. It is not in this government's philosophy. It wants free trade for free trade.

The Standing Committee on International Trade has no statistics that would tell it, for example, if it would be advantageous for Quebec businesses to do business under a free trade agreement between Canada and Korea. What are the advantages of such an agreement for the Government of Quebec and the rest of Canada? This is the case in all sectors. More in-depth studies really need to be conducted.

Once again, I invite Liberal members to vote in favour of Bill C-411, which will protect—

[The Speaker, Peter Milliken]

I am sorry to have to interrupt the hon. member for Berthier—Maskinongé, but his time has run out.

We are now at the period for 10-minute speeches followed by five minutes of questions and comments for everyone.

The hon. member for Vancouver Centre.

[Hedy Fry, Liberal, Vancouver Centre, BC]

Mr. Speaker, I rise to speak to the budget bill. Pardon me if I smile a bit, Mr. Speaker, because this is a joke. That is all I can say. The bill itself is a joke. When we look at the budget that was tabled it is like everything that the government does. It is a great marketing strategy, fabulous retail. When we look at the window dressing, it is beautiful. It will sell anything. But when we look for the substantive part, it is not there.

Let us consider some of the words in the budget. Let us look at some of the phrases that were used. First and foremost we have to note regarding this budget, people have said that the current finance minister has been the highest spending finance minister in the history of this country.

The Conservative government inherited from the former Liberal government a strong economy, a strong balanced budget over nine years, huge investments that were made in innovation, in learning, in helping to move forward into a 21st century economy. None of that was followed through on. A lot of money was spent on little baubles that look pretty in the window, but which really have no long term impact, no vision and absolutely no ability to create a future for Canadians. In the 21st century, productivity, competitiveness and the ability to develop human capital are the key things we should be thinking about if we are to hold our heads above water.

Given that we are such a small country with only 32 million people, we have to be smart. We have to be the best and the brightest in terms of our workforce. We have to create a country which is going to be innovative, creative and technologically progressive. There are certain things we need to focus on because we cannot be everything to everyone. None of that was taken into consideration in this budget.

Instead we heard marketing slogans. The budget talked about an infrastructure advantage. That is very interesting because there was a reiteration of many Liberal programs, for instance, the gas tax rebate that went to cities for infrastructure. There was in fact a delay of the Pacific gateway which was a huge infrastructure advantage for Canada, for British Columbia and the west.

We know that if we are to be competitive we must diversify trade. Right now most of our eggs are in one basket, and that is the United States. Eighty per cent of our trade is done with that nation. Anyone, including my mother, and she is not an economist, could tell us because it is just common sense that we do not put all our eggs in one basket, that in a global economy we diversify.

Canada has an enormous advantage. We could go to Asia. We have the people. Multiculturalism has given us a whole generation of people who speak the language, who understand the culture and who understand the marketplace of most of Asia. We could have a distinct advantage there. Was anything done to win the race to get there first? No. In fact the gateway has been delayed by five years. As I said once before, by the time we get there, there will only be crumbs left to pick up off the floor. Canada is a trading nation, but absolutely nothing was done to create an advantage for us in terms of trade.

The Conservatives talked about modernizing the health care system. This was another wonderful little slogan that came about in the budget, modernizing the health care system. The biggest problems with our health care system right now are one, infrastructure, and two, wait times. One does not have to be a rocket scientist to know that one of the key factors in bringing down wait times is increasing the human resource potential of health care professionals. We are short of physicians. We are short of nurses. We are short of technologists and technicians in health care. We now know that there are almost three million Canadians who cannot find a family physician. There was not a single word in this budget about health human resources.

The Liberal government had already spent the first year building a policy to help create a strong health human resource pool. That has disappeared. There is no knowledge about where it went and there is certainly no word about it.

The language, the pretty thing in the window, says that the government is talking about modernizing the health care system. What is it modernizing it with? There is nothing substantive to do that, but still they are nice words.

Then we heard talk about a cleaner, healthier environment. That is wonderful. The first thing the government did was to renege on Kyoto. To show how much it cares about a healthier, cleaner environment, the government went to the CHOGM meeting in Uganda and refused to put its signature on a plan to deal with greenhouse gas emissions and to clean up the environment.

The Conservatives argued that they did not sign on to the plan because China was not involved in it. China is not a member of the Commonwealth. That is like saying we will not do anything in our own backyard to make a difference because the rest of the world has done nothing. It is like the cockeyed plan, which they signed with the United States. Now Congress has to look at that plan again to decide if there is a better plan to deal with the environment. Here we go again. The Conservative speak great words, nice words.

Now we know that no one else will go to the next environmental conference. Not a single member of the opposition will go because we are persona non grata with the Conservative government. Parliamentary democracy is taking a beating with the government. As opposition members, we never get to go. I do not care which party goes, but the opposition is an important part of parliamentary democracy. We should be there to ensure the government represents the best interests of Canadians. I guess if we are not there, then we cannot complain. It is kind of late for us to say anything now as it is after the fact: A cleaner, healthier environment, indeed.

Then we heard talk about entrepreneurial advantage. That was another wonderful statement in the budget. Do members know what gives us an entrepreneurial advantage? Investing in human capital will give us that. Anybody who has studied the economics of a post-industrial era will tell us that the most important of the three capitals that are spent on economic development is human capital. We have to educate people so Canadians can be the best and the brightest in the world.

We cannot compete with China in making cheaper T-shirts, but we can talk about how Canadian citizens can be the best and the brightest. Ireland did it. With only four million people, it is one of the most productive and competitive member states in the world and it became so by investing in people and in learning.

Instead, the Conservative government has cut adult literacy. Instead we find out that the fifty-fifty plan the federal Liberals had to help young people to get a post-secondary education is gone. The $3.5 billion skills and training agreement that the federal Liberal government made with the provinces disappeared. Instead, with all that money gone, $800 million has been invested in what?

How did we miss the boat on getting the best and the brightest, on giving every Canadian youngster a chance to go to school early? We have no child care, no early childhood development. That was also felt to be unnecessary. Getting our young people to be the best and the brightest, starting at their earliest years, has disappeared. Getting into post-secondary education has disappeared. Skills and training is gone. There is no word about adult retraining for people who have lost their jobs in the manufacturing sector. Yet we hear this wonderful term entrepreneurial advantage.

When I look at this budget, I have to smile. I have to stop myself from laughing out loud. There is absolutely nothing in the budget that would give Canada an advantage on the world stage. There is nothing to help Canada hold its head above water. There is nothing to help Canada become competitive and productive.

When the government answers questions in the House about jobs, it tells us there are all kinds of jobs out there. There are jobs and then there are jobs. With a $10 an hour “Mac” job, people cannot bring up a family. We are talking about real jobs, sustainable jobs. We are talking about the ability to invest in Canada and in Canadians. We are talking about moving toward a goal for a future for our country. We are talking about being the most competitive in the world on the global stage. There is nothing about that in the budget.

As I said before, I was pleased to stand and speak to the budget bill, but I can find very little in it that is worth mentioning or worth applauding or that has a vision for our country.

[The Speaker, Peter Milliken]

There will be five minutes for questions and comments on the hon. member's speech when debate resumes.

The House resumed consideration of the motion that Bill C-28, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007 and to implement certain provisions of the economic statement tabled in Parliament on October 30, 2007, be read the second time and referred to a committee.

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, it is a pleasure to speak to this bill, but it is sad that we are having to debate this bill. I do not think the bill should have been brought forward in the manner it was. I say that because one of the things that we on our side of the House have been very clear on is that Canadians need to have a fulsome debate as to how the surplus of the nation is spent.

I want to begin my comments on that note because of something I call truth in advertising. When the government was in opposition, it was very clear in its position as to how we should be dealing with the finances of the nation. In fact, I recall in 2005 the then leader of the opposition party, now Prime Minister, went as far as saying to have these kinds of surpluses was akin to fiscal mismanagement. He was saying that because of what had been happening with the previous Liberal government's pattern of underestimating the surpluses.

Of course, we agreed with him on that note, the fact that there should be more accuracy and truth in advertising in understanding exactly how much money is projected to be in the surplus. We know over the years the private sector forecasters, the not for profit forecasters, were all accurate in their projections of what the federal surplus would be and the government would always underestimate it.

The surpluses would come forward and the government would say, “oh, look what we have here, a terrific surplus” which was no news to those who had been paying attention and keeping an eye on these things, but apparently it was to the then government.

What happened of course is that the surplus would be spirited away to pay down the debt, which is noble and might be the best thing to do, but in the way it was done there was no debate. There was absolutely no indication to Canadians that the surplus was something that we could actually talk about, that we should decide where the money should be spent and invested in our communities.

It is rather sad now that the Conservatives are in power they have decided to replicate the same behaviour as the previous government when it comes to surpluses. Further to that, which is more egregious, in Bill C-2, the accountability act, there was a provision for a budgetary officer of Parliament. It is in the act. Anyone can go and look at it. That bill was passed.

What has not been acted on, brought into force, is that budgetary officer of Parliament along with the idea that we can actually have people who are appointed to agencies, boards and commissions to have to be appointed according to merit. Those two key foundations that the NDP supported, and in the case of the public appointments commission amended, have not brought into force.

We now have a government that in opposition said that we need to debate the surplus, we need to have accurate forecasting, and we need to make sure that Canadians are aware of the finances of the nation.

However, not only do the Conservatives continue the past poor practice of the previous government of not being upfront about the surpluses, but they do not bring into force and appoint a budgetary officer of Parliament whose job it would be to give unblemished, objective forecasting, so that all members of Parliament, and by extension Canadians, will understand the fiscal framework of this nation.

Add onto that this method of using a fiscal update to bring forward a very substantial change in the fiscal framework. We just have to look at what is being proposed in this: major tax giveaways to corporations and effects that will continue on for many years. This is not a fiscal update.

A colleague said the Conservatives make it sound like it was a mini-bar in a hotel and they were just doing little fiscal updates in those little bottles. He said in his own way that this was more like a 40 pounder. This is a big giveaway. This is a substantial tax giveaway to corporations with no debate that is substantive. We are debating this now, but normally this would come forward in a budget. Instead, we have it as a “fiscal update”.

I just want to begin my comments on process, on accountability and on what the government said it would do in opposition vis-à-vis surpluses as well as what it said it would do around the accountability act with a budgetary officer of Parliament to provide objective, unblemished fiscal updates.

It is important that parliamentarians and Canadians in general know exactly how much the surpluses will be so we can have a fulsome debate. The money should not automatically go toward paying off the debt, holus bolus. There should not be these fiscal updates without Parliament being provided the information ahead of time.

That said, the fiscal update bill is before us. Essentially it says that the government's role is to shrink the pie on what we invest within our respective communities.

When we look at the amount of tax giveaways to corporations, there will be less in the federal government's revenue stream, at a time when there is up to $123 billion in infrastructure debt across this land, when we have needs in terms of housing, affordable education, affordable drugs. There is a widening prosperity gap, and the Conservative government has actually shrunk the pie so that in future, there is less ability for the federal government to make a difference in the everyday lives of Canadians.

The $123 billion infrastructure deficit that exists was recently brought to the attention of Canadians by an excellent study that was done by the Federation of Canadian Municipalities. I might add that the government used that group as a validator in previous budgets, but now seems to want to distance itself from that group when the news the FCM provides is not the news the government wants to hear.

The study outlines the infrastructure deficit across the land. People may ask why we should care about that in that we are at the federal level and it is a municipal concern. The Conservative government would tell the municipalities to quit whining, and in fact we have heard the government say that, to make do with what they have and to raise property taxes.

The government has denied the reality of our communities. The FCM study showed that our bridges, sewers, water systems, et cetera are falling apart and need updating. We have heard the horror stories throughout the land of infrastructure falling apart. It is a real cost. It is a real shame that the government did not see the need for investing in our communities.

I implore the government to take a look at the deficit across this land among our partners at the municipal level. The Conservatives should listen to them. The municipalities know what is going on in our communities. The fact that they will be provided with no relief in this fiscal update is not only a shame, it is an abhorrent action by the government. It shows the lack of responsibility of the Conservatives in terms of the infrastructure of this nation.

I implore other parties to join with us and oppose the bill. I ask them not to abstain on the vote. We saw that occur before. It is not a credible position by any member of Parliament to abstain on this issue. It is too important for Canadians. It is too important for the infrastructure of our cities and municipalities.

I look forward to any comments or questions from my colleagues on a debate that is very serious, very important and incredibly sad in terms of the actions of the government vis-à-vis the bill.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Mr. Speaker, my colleague is a staunch defender of his constituency, his city, his province and his country.

He is absolutely correct when he talks about the municipal deficit in terms of infrastructure for water, sewer, transit and so on. The infrastructure in the cities and rural parts of Canada are crumbling.

My question is with respect to the human deficit.

The government is giving over $7 billion to the most profitable corporations in the country, some of which are foreign owned, all of which are making very good money under the current tax regime, but it cannot help children with autism. The government tells widows of veterans that they have to wait. It tells atomic veterans that it might get around to them. It tells agent orange victims that only some will receive compensation and the rest will not.

What type of government would ignore the plight of so many who are being left behind to enhance the profits of those that are already doing very well in this country?

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I want to thank my colleague from Nova Scotia for the hard work he has done for children with autism and for veterans. Before I was elected to Parliament, I was a teacher and I was aware of the work my colleague did in advocating for the rights of autistic children who, sadly, are being ignored by the Conservative government.

My colleague asked what kind of government would decide it is more important to give money to corporations instead of investing in vulnerable people, children and veterans. I would respectfully suggest that it is a government that seems to be out of touch with communities across this land. It is a government that is out of touch with the people who need help.

Why is government here? Is government here to advocate on behalf of just big business, or is government here to help out communities, to help out the vulnerable, like autistic children?

This is a very important bill. It deals with the finances of the nation. When the Conservative Party was in opposition, it asked the then Liberal government to be upfront and truthful about the surplus and to have a debate in this place about how that surplus should be spent. Now as government, the Conservative Party is not doing that. It is not going to appoint a budgetary officer of Parliament to provide that information. It is irresponsible and hypocritical.

On the point that my colleague made about how we invest in people, I might add there are over 10,000 people right here in Ottawa, in the nation's capital, who are looking for affordable housing. They have been on a waiting list for a very long time. They are being ignored by this legislation. There is no money for them.

The government has said that it has invested in affordable housing. A point that should be made is that money was in Bill C-48, the amendments that the NDP made in 2005. That is the last investment we have seen in affordable housing. It is not good enough for the residents in Ottawa. It is not good enough for the people of Canada.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Mr. Speaker, my hon. colleague is absolutely correct about housing. I just did a tour of the far north in the high Arctic and talk about acute housing needs. The people up there desperately need help and they need it now. The Conservative government is completely ignoring them.

The reality is the government has clearly defined that it is only for the individual, where we in the NDP are for the collective. That is a very clear distinction.

I would like my colleague to elaborate on why in a nation that should be a healing nation, in a nation that encourages all people to have the same rights and benefits, the government is leaving so many behind.

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I think the government is just listening to the wrong people. It is not listening to the communities. The Conservatives are out of touch, but the voters will have a chance to put them back on track and maybe put them out of power. Who knows what will happen in the next election. If they stop listening to Canadians in communities, that is exactly what will happen.

[Karen Redman, Liberal, Kitchener Centre, ON]

Mr. Speaker, it is a distinct pleasure and honour to rise in the House today to speak about the economic statement that was tabled in this House earlier in the fall.

I know that members would agree with me, because we all spend a lot of time in our constituencies, but certainly the constituents of Kitchener Centre and in fact Canadians right across this nation have indicated that they do not want tax cuts at the expense and the compromise of the social fabric of the nation. For the majority of Canadians, spending on medicare and education, the elimination of poverty, the creation of a national child care program, as well as the protection of the environment all come before tax cuts as their priorities.

Today Canada's economy is performing extremely well. In fact, the federal treasury is awash in cash. As the government announced in September, it ran a surplus this year of $14 billion. Certainly a tax break would be in order during times of such prosperity.

However, the government also announced a reduction of the lowest tax bracket to 15% when in reality it was merely reinstating a tax cut that our previous Liberal government had made. The Conservative government in its initial budget had raised the tax rate of the lowest income bracket from 15% to 15.5%. It is hardly a tax cut when it merely returns to the same rate that it was previous to the increase in the budget preceding. Canadians are no further ahead financially than they were before the minority Conservative government took power.

Many in this House will recall the previous Liberal government's $100 billion tax reduction plan. It was passed in the year 2000. It was the largest tax cut in history, and Canadians continue to benefit from that budget today.

What made the tax relief plan and the subsequent Liberal tax relief so effective was how very broad the application was. Millions of people benefited from those reductions.

We are also in favour of reducing the tax burden on corporations because we recognize this is one way to unleash Canada's productive capacity. Our record speaks to this.

The finance minister and the government make much of the reduction of 1% in the GST. It has gone to 5% from 6%.

What is interesting about this is that the vast majority of economists and as a matter of fact those with any kind of economic sense are quick to acknowledge that trimming taxes on consumption offers very little in terms of economic stimulus. Quite frankly, it advantages the rich. We all know that we would get more GST relief when buying a Mercedes-Benz than when buying a bicycle. It is simple arithmetic.

On this side of the House, we are accustomed to governing with vision and with an eye to the long term economic good of our country.

The quick fix, simplistic initiatives put forward by the Conservative government are designed to pay dividends at the ballot box in the next election. There is no commitment to long term economic vitality, no vision and no attention to growth.

The Conservatives fail to deliver on the long term vision of the investments that need to be made in using the record setting fiscal strength that they inherited from our previous Liberal governments.

We need a system of taxation that would provide an economic stimulus to help mitigate the economic slowdown in the United States. No one can dispute that Canada will face consequences of any economic changes that happen in the United States. With our loonie at par and occasionally above par and worth more than the U.S. dollar, Canadian manufacturers need help from the government.

The Conservative government is failing to create or even protect thousands of manufacturing jobs. In 2006, the House of Commons industry committee made 22 unanimous recommendations to help Canada's manufacturing sector. To date, of the 22 unanimous recommendations, one has partially been implemented. That was the creation of a two year window for writing off capital investments at an accelerated rate as opposed to the committee's recommendation of a five year window.

Meanwhile, other sectors, such as the booming oil sands industry, continue to enjoy a much more generous accelerated capital cost allowance. These are industries that have immense returns on their investments, yet we see the manufacturing sector struggling in Canada and hear silence from the government.

Canadian communities are also feeling the pinch of this Conservative mismanagement. According to the Federation of Canadian Municipalities, Canada's cities and communities now face an infrastructure deficit of over $100 billion, yet only $4 billion of the government's $30 billion building Canada fund has been earmarked for municipal infrastructure. Clearly, this is simply not enough.

Canadian cities and municipalities need long term sustainable funding for infrastructure programs. This requires partnering at all levels of government, but the Conservatives have failed to come to the table. The Conservative finance minister accused mayors, my own mayor from Kitchener, of being whiners. He dismissed them. He said that the government does not deal in potholes and said to go home. Yet everybody lives in a community, whether it is a village or a city, and recognizes that there needs to be attention to infrastructure. How many bridges need to collapse and injure or kill Canadians before we recognize the screaming deficit that we have in investment in infrastructure?

Similarly, the Conservatives' immigration program shows no real desire to respond either to the needs of our economy or to the needs of new Canadians. Their approach has a narrow regional focus. It lacks long term objectives for our immigration system. It ignores the realities of the Canadian labour market, where there are severe shortages. In addition, the Conservatives' plan is targeted almost exclusively at western Canada and shows no real desire to respond to the needs of employers in other provinces.

In budget 2006, the Conservatives provided $18 million over two years to create the Canadian agency for assessment and recognition of credentials. This is for foreign-trained professionals who want to immigrate to Canada. This represented a $145 million reduction--and I underscore that, a $145 million reduction--in spending on foreign credential recognition and cut the shelf life of the programming in half from what was promised in 2005.

What is worse, budget 2007 continued this backward path by breaking this meagre commitment. Instead of creating a foreign credential agency, the government replaced it with a Foreign Credentials Referral Office that is worth $13 million over two years. This merely provides referral services for prospective immigrants to connect with appropriate provincial assessment bodies rather than actually helping the foreign-trained workers find jobs quickly.

Statistics show us that within the next 20 years immigration will account for all of Canada's net labour force and population growth. Passing the buck to provinces and territories hardly seems a responsible reaction in addressing this sector of our society and our economy.

Liberal governments implemented numerous infrastructure programs in the 1990s and the early 2000s to support the municipal infrastructure projects, culminating in $5 billion over five years with the transfer of gas tax funds to municipalities and continuing at $2 billion annually from 2009.

The Liberals also invested $263 million in the foreign-trained workers initiative in 2005 and over $100 million to improve the delivery of immigration services.

As a member of the Liberal Party, I have consistently advocated for the support of Canadian families while promoting fiscal responsibility and building a solid economic foundation for the future.

I find this budget short-sighted and irresponsible. Quite frankly, Canadians deserve better.