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 Specifically, the excise tax exemptions for renewable fuels, including ethanol and bio-diesel, are repealed, effective April 1, 2008.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.

Motions in Amendment

[The Deputy Speaker, Bill Blaikie]

I would remind the hon. member for Ottawa Centre not to use the second person unless he wants the Speaker to answer the question instead of the hon. member for Kings--Hants.

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Speaker, we would all like to hear from the Speaker, the best member of Parliament in Canada.

Innovative, forward-thinking governments globally have proven that we can build a competitive economy with dramatic reductions to corporate taxes while investing in social policy.

We only need to look at the Netherlands, Sweden and Ireland. Australia and New Zealand have reduced corporate taxes dramatically. They have reformed their tax system to make their economies magnets for capital and talent and, at the same time, have invested significantly in social policy.

The Scandinavian example is particularly important to help guide us because Scandinavian countries value investments in social policy, in child care, in early learning and in good health care policy, and, at the same time, they saw the need to reduce their corporate tax levels to some of the lowest corporate taxes in the world.

The old globaphobic, socialist, Luddite nonsense that somehow innovative and forward-thinking economic policy is contrary to good social policy is wrong. In fact, we need good, economic policy to afford sound, social investment.

[Dick Harris, Conservative, Cariboo—Prince George, BC]

Mr. Speaker, I love Fridays because we hear some of the most outlandish statements on Fridays.

The member for Kings—Hants, now get this folks, says that the GST is a great tax and that Canadians do not deserve to have tax relief on the GST. Somehow it is a bad thing to give Canadians tax relief that they can see every time they go to the till, every time they go shopping for something. If they are going to buy a car, even a used one, they can see that tax relief, but the member for Kings—Hants thinks this is a bad thing.

The leader of the opposition party said a short time ago that the Liberals, God forbid if they ever get to power again, would raise the GST.

Here is what we can expect in the next federal election. The Liberals will be campaigning all across this country, probably led by the member for Kings—Hants, telling Canadians to elect the Liberals and make them government and they promise they will raise the GST back to 7%.

Mr. Speaker, do you not just love Fridays? I just love it. I thank the member for Kings—Hants for making our next election campaign just a little easier.

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Speaker, the hon. member should reflect on whether the GST is payable on cash transactions of $300,000 to former prime ministers.

Beyond that, we are committed to reducing taxes. We are committed to a fairer approach to reducing, in a broad base way, personal income taxes to actually help Canadian families. With his approach to cutting the GST, a 1% GST cut will give someone buying an $80,000 Cadillac Escalade a great savings of about $800 or so--

[The Deputy Speaker, Bill Blaikie]

Order, please. It seems like an appropriate time to resume debate.

The hon. member for Argenteuil—Papineau—Mirabel.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I am pleased to rise to speak to the NDP's amendment to Bill C-28, which is about the Conservative government's economic statement.

At the outset, I would like to make it clear to my NDP colleagues that the Bloc Québécois opposed Bill C-28 and the economic statement. We will also oppose the NDP's amendment for one simple, good reason. The reason we are opposed to the economic statement is that it does nothing to address the most serious crisis currently facing Quebec's regions: the crises in the forestry and manufacturing sectors. Once again, the NDP must be seeing the world through rose-coloured glasses, because it has not put forward anything to solve the real problem: the crises in the manufacturing and forestry sectors.

My colleagues here in the House will confirm what I am saying. The member from Chicoutimi—Le Fjord will tell you that the Saguenay region has been hit hard by the forestry crisis, and my colleague from Berthier—Maskinongé will tell you that Mauricie has been feeling the pinch because of the crises in the forestry and manufacturing industries. The time for looking at what the Conservative government could do through rose-coloured glasses has passed. Once again, it is time to see things as they really are.

It is clear that the Conservative Party has decided not to do anything about the forestry and manufacturing crises in its economic statement. The party's philosophy is to let businesses die, to let the free market do what it wants, to believe that big companies will survive and should be allowed to destroy small companies every day. Right now, the problem in the manufacturing and forestry sectors is that the big companies are destroying each other. Even they cannot survive. That is the reality of the situation.

The government is offering tax cuts to businesses, and that is fine for businesses that are making a profit. But right now, Quebec's forestry sector and much of its manufacturing sector are having problems. The softwood lumber crisis was never resolved. Businesses were never given the help they needed. Then the Canadian dollar rose to dizzying heights. Even in the economic statement, the picture painted by the Minister of Finance is one of economic recession in the manufacturing sector. Oil companies will not be affected.

Obviously, in granting tax reductions, the Conservative Party wanted mainly to please its friends, the oil companies. That was the purpose of the economic statement and that is the problem I have today with the NDP motion. Once again, it does not address the real problem. The idea behind the motion is to remove tax credits, which is fine, but the NDP is not addressing and does not want to address the real problem, which is the crisis in forestry and manufacturing. The NDP, with its rose-coloured glasses, is as bad as the Conservative Party, except that the two parties are at opposite ends of the spectrum.

I am glad to be a member of the Bloc Québécois. It is the only party in this House that is in touch with the grassroots, close to the people, and that can clearly say what impact the higher Canadian dollar and the softwood lumber crisis, which the Conservative government never solved, are having today. Jobs are being lost in most regions of Quebec.

Companies are closing on the other side of the river in Gatineau. Everyone will say that it is a large city, but Domtar has closed and Bowater has shut down one machine. Once again, the forestry crisis is affecting the cities in Quebec. Imagine the impact it is having in the regions. That is the hard reality and the impact of the Conservatives' free-market approach.

In the manufacturing and forestry sectors, the government should look at its own data, its own figures, which clearly show that there have been successive job losses since 2005, totalling 125,000, including 65,000 jobs lost in Quebec since the Conservatives came to power. The economic statement solves nothing, absolutely nothing. The member from Roberval—Lac-Saint-Jean and the Minister of Labour are telling us to wait for the next budget. That means there is nothing in the economic statement, absolutely nothing.

That is why, once again, we will vote against Bill C-28 and against the NDP amendment. It was a flawed economic statement, a flawed bill for the forestry and manufacturing industries. We will take a stand for Quebeckers in the regions and in the urban centres who are being hard hit.

Shawinigan was hit hard last week and so was the City of Gatineau and insecurity reigns. Large companies such as Bowater and Abitibi-Consolidated have merged. That was the first phase of a shutdown that will be followed by a second phase. The companies, the industry and the owners are no longer hiding the fact that there will be a second phase.

The Conservative government is being consistent in its Conservative philosophy. It will wait as long as possible until as many businesses have closed as possible. In the end it will come to the rescue of one company that has only half its labour force left.

On one hand we have the Minister of Labour's attitude and on the other hand we have the Economic Development Agency of Canada, which is trying to revive the regions through diversification. At worst, we will end up with the Minister of Labour's approach. In my opinion, the member for Jonquière—Alma is an embarrassment to his region. He is saying that many jobs are being created in Alberta and that 55 year old unemployed workers should go there for work. That is his message. It is terrible coming from a minister from Quebec, especially from Jonquière—Alma, a region that has worked hard to build the Quebec of today and part of Canada.

Finally, if it were not for the primary resources sector, the forestry and mining sectors, Quebec and Canada would not be what they are today. The people in those sectors are living day to day.

The Conservatives think that since the oil industry is doing well we should all fall all over ourselves and make oil. Society is more complex than that. We realize every day that the Conservatives want nothing to do with Quebec's problems. The Conservatives say so and prove it every day. In any event, they have shown it in Bill C-28, in their economic statement. The New Democratic Party is doing the same thing by showing its flagrant lack of interest in the problems Quebeckers in the regions are experiencing in the forestry and manufacturing crisis. They must be able to sense that in the rest of Canada, but with their rose coloured glasses, instead of making amendments and proposing things that would solve the industry's problems, they want to lower corporate taxes.

The Quebec association of manufacturers and exporters is in favour of the tax cuts. In fact, the day these industries start making money, they will be happy to have more competitive taxation. But they are saying that this is not enough, because the crisis in the forestry and manufacturing industries must be addressed now. It is serious and will take some serious money. We must find a way to revive these sectors and implement everything the Bloc Québécois has called for in this House. We are telling the government that cuts and credits alone are not enough, that tax credits must be made refundable. This means that if a company is not making money, instead of it being deducted from profits, the company will receive a cheque, because it did not in fact turn a profit in a given year. With that money, the company would be able to purchase new machines and upgrade.

We are trying to make them understand that the solution is simple, and they know it. The problem is that they do not want to do it. Once again, the Conservative free market philosophy is that things should fix themselves. But things will not fix themselves in the forestry and manufacturing sectors for the simple reason that the Canadian dollar will not stop rising.

Obviously, the brilliant Conservatives had not counted on the dollar rising. Now this is happening and jobs are lost every week across Quebec. The Bloc Québécois will never accept this situation and will never stop rising in this House to speak out against what the Conservatives are doing and what the NDP is in the process of doing: ignoring the real problems, which leads to massive job losses in the forestry and manufacturing sectors.

These Quebeckers who have worked hard their entire lives to support this society deserve to be taken care of now. They deserve a good chunk of the $11.6 billion surplus to revive the forestry and manufacturing industries and not to create something new. That is what they deserve.

[Dennis Bevington, NDP, Western Arctic, NT]

Mr. Speaker, I rise to speak to my hon. colleague's statements. I find it somewhat incomprehensible that a member of a party elected by many progressive voters in Quebec would come out with a statement like that on a very serious topic: the complete movement by the government toward reducing corporate taxes, as supported by the Liberals. This is a direction from which we cannot return.

The member has provided many ideas and direction on the need to carefully select areas in the economy for which to provide incentives. We cannot do it if we do not have the revenue base.

By going against the motion, he has set up a future in which the federal government will not have the ability to make the kinds of investments that need to be made to improve industries in his province.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, my NDP colleague has a problem. His party has never changed. It has always been against corporate tax reductions.

There is a problem. The forestry industry and the manufacturing sector are facing an unprecedented crisis. They are in an economic recession, which is what I have been saying since the beginning of my speech. The question today is not about attacking tax cuts, but rather about helping forestry and manufacturing businesses.

If he had decided to propose an amendment to convert or transform tax credits into refundable tax credits in order to be able to help businesses, we probably would have supported it. The problem is that the New Democrat philosophy does not change. They do not see the problems and always regurgitate the same line: we are lowering corporate taxes, and so on.

The crisis is more significant than that. Now is no longer the time to put on the NDP's rose coloured glasses. It is time to solve the real problems.

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

Mr. Speaker, I would like to congratulate my hon. colleague on his fine speech.

I would like him to expand on something. Since 2002, 135,000 jobs have been lost in the manufacturing sector, affecting one in five workers. As my colleague mentioned, the Quebec furniture industry is a very important economic sector. In 2007, it employs 24,000 workers, although in 2000, it employed 30,500 people. The net job losses in this sector are a result of the government's failure to act. It has been slow to react and support our industries.

I would like my hon. colleague to tell us why the Conservative government refuses to act, from a budgetary point of view, to support our industries?

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, first of all I would like to thank my colleague for Berthier—Maskinongé who is working very hard to try to stop job losses in his region.

He asks me what I think of the Conservatives.This is the worst possible government in terms of its ability to solve the crisis in the manufacturing and forestry sectors. It is totally insensitive. The Conservative philosophy is to give the market free rein.

As I was explaining earlier, there is a problem in the forestry industry. It is one thing, when times are good, for big companies to gobble up little ones. However, right now, the big companies are cannibalizing one another and when they emerge they are no longer able to cope with the situation. That is the reality.

The Conservative philosophy does have an end.The writing is on the wall for the forestry and manufacturing sectors, and it says “The End”. We have to get rid of the Conservatives and put in place real programs to help the men and women who worked very hard to establish the society in which we live. The forestry sector sustained the economies of Quebec and Canada for dozens of years. It is now time for us to help these workers and no longer just stand by and watch, as is the case with the Conservative laissez-faire policy.

The forestry sector is finished. The writing is on the wall. We must stop this from happening and solve the problems. The Conservatives have $11.6 billion in reasons to solve them so let them do it.

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I want to address a couple of points my friend from the Bloc made.

He said that we viewed things through rose coloured glasses. I have to challenge him on that. I think he is looking through revisionist glasses. Members of that party propped up the government on its budgets. When it comes to the government and its policies, which he criticizes, I predict his party will support the government yet again because his party is on life-support right now.

How can the member say that the proposal to amend tax cuts is not a progressive policy when he decries the Conservative approach of the invisible hand? Does the member not understand that we need to have key investments and that corporate tax cuts or giveaways are nothing more than corporate welfare? Social democrats—

[The Deputy Speaker, Bill Blaikie]

Order, please. We need to give the hon. member a few seconds to respond.

The hon. member for Argenteuil—Papineau—Mirabel.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I repeat and I will continue repeating that he must take off his rose coloured glasses. He is like the Conservatives, who show no sensitivity. The member would have us believe that Bill C-28 would be fine if the tax reductions were removed. Bill C-28 is a bad bill all around. The economic statement is not good. Furthermore, how the NDP views this is not good, either. We must resolve the crisis.

With respect to tax reductions, I am very happy for any businesses that are turning a profit, but the Conservatives should have been able to support refundable tax credits to help the industry directly.

The House resumed consideration of 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, as reported (without amendment) from the committee, and of Motion No. 1.

Budget and Economic Statement Implementation Act, 2007

[Navdeep Bains, Liberal, Mississauga—Brampton South, ON]

Mr. Speaker, on behalf of my constituents of Mississauga—Brampton South, it is a pleasure to speak to Bill C-28.

I do have some fundamental problems and concerns with the bill because it revolves around the economic policies and concerns that I have with the Conservative government.

When I recollect last year during the budget discussion, I was reminded by many of my constituents, who I know very closely watched the debate, of how shocked they were to hear one of the worst tax policies to come out of Ottawa in 35 years, which was the interest deductibility measure. That is just one example.

I want to speak to two key themes today regarding the bill. One is that it is a reflection of the government's lack of understanding of creating a plan, of setting forth an agenda that looks at promoting prosperity and productivity. The government's ideas, strategies and policies are driven by polls and, as we have seen, it has spent a lot of money on polls.

The second issue I will be discussing is missed opportunities and what this particular bill misses and the opportunity on which it could have capitalized.

First, before I get into the specifics, if we look at where we are today as a country and look at our fiscal capacity at the federal level, it is a reflection of sound Liberal management over the course of many years, as they recite, over 13 years of hard work to turn around this country's fiscal position. We were in huge deficits, which created huge debts and put a tremendous burden on our future generations.

However, through sound Liberal management, sound government policy and the hard work of many Canadians, we were able to eliminate the deficit and ultimately start to reduce our debt.

Today we have surpluses, as we have had for many years now, and that is a reflection of hard work and good management. It is so important that we recognize how we want to spend this money.

It is unfortunate for the government, for example, when it comes to two particular issues in the bill.

First, I want to thank the Conservatives for reinstating the personal income tax reduction that we put in place when we were in government and that they reversed. I also want to applaud them for their efforts of copying our corporate tax policy. Those are two specific examples that stand out.

However, if we look at the bill we see that it pits province against province. We have seen what the Conservatives have done with the Atlantic accord. Just recently, if we take into account what they have done with respect to Bill C-22, they attacked the Premier of Ontario by calling him the small man of Confederation. They insulted not only premiers and put provinces against one another, but they also attacked mayors. We do not run a country by calling our mayors grumpy.

My mayor has served proudly for many years and is one of the most well respected mayors, not only in Canada, but across the world. She has received numerous awards for achievements, hard work, fiscal management and running a good city.

The bill also reminds us of a legacy of a government of broken promises. The one that stands out, which was mentioned in a petition just a few minutes ago, is the income trusts.

Many hard-working Canadians, many seniors who have worked really hard, invested their money in income trusts because they were led to believe by the current government, in a commitment it made in its platform, that it would not change the rules to income trusts. What did the Conservatives do when they came to power? They broke that promise. That cost seniors and many other Canadians millions, if not billions, of dollars of investment opportunities and it has really hurt their fiscal and financial situation.

As I said before, I do have concerns with regard to the prosperity and productivity agenda laid out by the government. The GST example is a clear indication of where it is driven by polls and by gimmicks as opposed to trying to promote this prosperity and productivity agenda.

If we look, for example, at my constituency of Mississauga—Brampton South, it has many manufacturing jobs. We have the Pearson International Airport, which has become a hub of economic activity, but we need to ensure we remain competitive and, in order to do that, we need the government to show leadership and put in place a regime, an environment and policies that will ensure we are not only competitive in Canada, but we can also compete with the world. That is something this particular bill lacks.

I want to speak to missed opportunities, which is something I can speak to from my personal experience of living in my constituency of Mississauga—Brampton South. My constituency has a $123 billion infrastructure deficit, which is a substantial amount. The mayors and the Federation of Canadian Municipalities have mentioned this on numerous occasions. They had a protest here and mentioned that their deficits needed to be addressed.

What bothers me is that in March, the Prime Minister and his entourage came to the GTA and made an announcement about rapid transit funding for not only my constituency, but for surrounding regions as well. The announcement was made in March and yet we have not received the cheque. The province has put forward the money and the mayor and our councillors have the money there, but the federal government has not written a cheque.

That is something that is profoundly disturbing because these announcements are made and it is a missed opportunity. The longer the delay in this funding, the more gridlock continues to grow in that region.

I was very fortunate to become the father of a baby girl about eight weeks ago and I understand now, as a new father, the importance of spending time with one's family. However, if individuals are driving to and from work and are spending an additional 20, 30, 40 or 50 minutes in traffic because of gridlock, that is less time with their families.

If the government professes to care about families, why is it not giving us a cheque for our city? Why is it not helping us with our huge deficit? It is not the fact that it is not contributing more money. It is the money that was committed in the past that it is not honouring.

As I indicated, it was a missed opportunity, not only when it comes to the cities agenda, but manufacturing is a key area for the constituents of my riding, for my province of Ontario and for my neighbouring provinces. This is the economic hub that drives our country's economic wealth. It is unfortunate that high value jobs are being lost.

I can cite a quick example from a question I was asking in question period with regard to the forestry sector. The jobs in the forestry sector in northern Ontario and even the spin-off jobs in my riding are directly impacted by the fact that the government cannot do anything because it signed a flawed softwood lumber agreement that prevents it from actually playing a role with industry. I am talking about provincial governments because, in the absence of federal leadership, the provincial governments had to play a role. However, any time the federal or provincial governments play a role, they will be sued by the United States because of the flawed softwood lumber agreement signed by the federal Conservative government.

That is an example of how there is not only a lack of initial investments when it comes to this bill that has prevented assistance for manufacturing, but it further compounds it by preventing other levels of government to play a meaningful role.

We saw the latest census a few days ago and it showed a tremendous amount of immigration to this country in the past five or six years. Immigration is another key area where we need to find a way of integrating new Canadians and allow them to utilize their skills to ensure they are able to perform and reach their potential that not only benefits them, but it benefits our communities and our economies. Again, the government has made no substantive investment there, which is another missed opportunity.

The leader of the Liberal Party has demonstrated our position on poverty. When we look at the poisonous debate on reasonable accommodation in Quebec, it is a reflection of the fact that people's fears are perpetuated by fear and ignorance and they assume that certain ghettos are created. Those ghettos or those concentrations of people is a reflection of communities being segregated because of lack of opportunity, low income earners and people who lack opportunity. We need a strong poverty agenda to ensure all Canadians have equal opportunities to succeed and we need to stop segregating people based on income.

Another concern in my riding is health wait times. We could have invested much more money in this area. We could have invested money to reduce wait times. Every day I hear of instances in waiting rooms and the problems it is causing.

Going back to the first point I made on prosperity and productivity, education is another lost opportunity. If we want to build a productive society and a society that is prosperous, we need to invest in education.

I have fundamental problems with the government's economic policies. These are lost opportunities, wasted opportunities and missed opportunities. With such a large surplus, the Conservatives could have done so much more.