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

This bill was last introduced in the 39th Parliament, 2nd Session, which ended in September 2008.

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 Specifically, the excise tax exemptions for renewable fuels, including ethanol and bio-diesel, are repealed, effective April 1, 2008.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

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.

Votes

Dec. 13, 2007 Passed That the Bill be now read a third time and do pass.
Dec. 10, 2007 Passed 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 concurred in at report stage.
Dec. 10, 2007 Failed That Bill C-28 be amended by deleting Clause 181.
Dec. 4, 2007 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:20 p.m.


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Conservative

James Bezan Conservative Selkirk—Interlake, MB

Mr. Speaker, we are in third reading of Bill C-28, not Bill S-2. The member is talking about a completely unrelated piece of legislation. This is third reading, where the member needs to be very focused. I know it is tough for that particular member to be focused, but we do ask that he debate the bill that is before the House at third reading, and its details.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:20 p.m.


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The Acting Speaker Andrew Scheer

The hon. member for Selkirk—Interlake does raise a good point. Members, especially at third reading, should try to stay as close as possible to the actual points in the legislation.

The hon. member for Burnaby—New Westminster.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:20 p.m.


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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Thank you very much, Mr. Speaker.

The theme is the giveaway. The giveaway that happened last Thursday is similar to the giveaway we see in Bill C-28. I know the hon. member does not like to hear that, but the reality is such that he has to understand that shovelling billions of dollars out the door to the corporate sector, which is what is contained in Bill C-28, is entirely inappropriate.

Why? Because of the current economic situation that most Canadians are living through.

When the finance minister rose to give the supplementary budget update, he was talking to Canadians, two-thirds of whom have seen a decline in their real income since 1989. Two-thirds of them have seen their real income fall. The middle class, the lower middle class and the poorest of Canadians have seen their real incomes fall, in most cases catastrophically, yet what we have seen over the past 20 years of economic policy is essentially a giveaway to corporate CEOs and corporate lawyers.

Bill C-28 continues in that theme. We saw it under the former Liberal government and it is continued under the current Conservative government. Is that in Canada's interests? Not at all.

The fact that most Canadian families have seen their debt load double over that same period, the last 20 years, begs the question: what should have been in the economic update? It is a very simple question.

What we have is corporate giveaways on a massive scale to the most profitable companies in Canada. That is the priority of this so-called new government. It certainly mirrors the priorities of the old Liberal government. We see the same old same old. We see the same economic approaches.

What could have happened? We should have seen investments in our industrial sector to protect manufacturing jobs. We have lost hundreds of thousands of manufacturing jobs over the past few years. We have had closures of factories in British Columbia, where I come from, and massive job loss in the softwood industry. As a result of the softwood sellout, in the past year we have lost 10,000 jobs in the softwood industry alone. That has devastated and gutted softwood communities from coast to coast.

Essentially we have seen the gutting of the manufacturing sector and the gutting of the softwood industry. We have seen case after case. I know that Conservative members do not want to hear reality. They prefer to hear from corporate lobbyists, but my goodness, it is about time that Conservatives started to listen to main street rather than Bay Street all the time.

We saw that under the Liberal government. The Conservatives said they would be different. We see it with the economic update, this Bill C-28 that we are discussing. It is the same old giveaway of Canada's public resources. There is no attempt to put in place an industrial sector. There is no attempt to actually address what Canadians are living through. Instead, the government just said, “Let us give this money away”.

The Conservatives say they have a surplus, but it is a myth of a surplus. I will point out just one of the key facts that the Conservatives seem to have completely forgotten in this entire debate. The Federation of Canadian Municipalities came forward after years of Liberal cutbacks and has estimated the infrastructure deficit at about $125 billion. What is worse, that deficit increases by nearly $20 billion each and every year.

What is the transportation and infrastructure deficit? It means that our highways become more dangerous, including the highway overpasses. We saw the collapse in Minnesota because appropriate attention was not given to updating the highway overpasses. Many fear that could happen in Canada.

We are seeing the lack of an ability to access fresh water. We have seen that in places such as Walkerton and North Battleford, yet there has been no investment by the federal government to actually improve our access to fresh water across the country.

Let us talk about waste management, with a city such as Victoria continuing to spew raw sewage out into the Juan de Fuca Strait. The Liberals did nothing on it. The Conservatives said they would be different. Instead, it is the same old same old for waste management.

As well, it is the same for the whole range of public transit. We have seen a substantial underfunding of our public transit facilities across the country, which means that Canadians have fewer options in terms of getting to work. We know that commuting times are increasing at the same time as overtime is increasing. People are working harder and longer weeks, yet they are getting less take-home pay.

Bill C-28, the budgetary update, deals with absolutely none of those issues. Instead, the Conservative government has made cutbacks to the justice system, to the environment, to agriculture, to fisheries and oceans, to public security, to Indian affairs, to the health care system, to international trade and industry, and to human resources and skills development.

It is the same old, same old. We went through it all with the Liberals and now, with Bill C-28, we are seeing the fiscal irresponsibility of the Conservative government. It is cutting the essentials. It cuts back on the basics and then says that it has a surplus so it should give it away to the corporate sector.

That reminds me of the little boy who took $3 from his mother and went to the store. He was supposed to buy essentials for his family, for his brothers and sisters, bread and milk, and then to bring those essentials home. Instead, he spent three-quarters of the money on candy and then came back and told his mom that he had a surplus, that he had not bought any of the essentials and that he had frittered the money away.

What we are seeing from the government is that it is frittering the money away on corporate tax cuts on an ongoing basis and not taking care of the essentials, whether we are talking about our basic infrastructure, what our cities and towns need to ensure there is a decent quality of life for citizens, or whether there is an industrial strategy in place that actually provides good, family sustaining jobs. We are not seeing that.

The government says that people can work at Wal-Mart because that is all it will give them as an industrial strategy. After people are laid off from good, family sustaining jobs, because the Conservatives and Liberals have done nothing about this over the last 20 years, they are taking part time and temporary service jobs that pay much less and do not allow them to sustain their families, which is why, for two-thirds of Canadian families, their incomes have declined.

If that is not an income crisis, I do not know what is. However, we will not hear a word about that from the Conservatives, like we did not hear a word about it from the Liberals either. There is just a consistent negation of everything that is happening on the main streets of our country, including, as the member for Sault Ste. Marie mentioned, the fact that tonight, 300,000 Canadians will be sleeping in parks and homeless shelters across the country in the middle of winter. If that is not a source of national shame, I do not know what is.

The Liberals did nothing. They eliminated the housing programs, so they provoked the crisis. All the Conservatives have done is take the NDP money from the NDP budget and told everyone that it had put $1 billion aside. That was NDP money for housing, but it was only a start. We recognize that we are dealing with a housing crisis and that we need more than $1 billion to actually deal with 300,000 Canadians sleeping on the streets of our country tonight, and hundreds of thousands of Canadian families that are just a paycheque or an action away from losing their homes.

We knew that money was only a start in the investments needed, but for the Conservative government that is all it is willing to give. It is just taking the moneys that were put aside by the NDP and that is it.

None of the essentials are taken care of. The NDP has been saying that Bill C-28 should contain a national pharmacare program so that families, that are going into debt and seeing their incomes eroded by escalating drug costs, will actually have some supports.

The NDP is the only party in this House talking about that, in the same way that Tommy Douglas, the greatest Canadian and former NDP leader, put in place a health care program. We are saying that Bill C-28 should have had a national pharmacare program, but it does not.

It has no industrial strategy and no support for post-secondary students who are facing massive debt loads and lower incomes once they get out of university, and, since most jobs created today, the Wal-Mart jobs, do not come with pensions or any sort of supports, we are talking about a life of what is essentially indebtedness.

We take these kids, who worked their way through university, and have them start out life with a $30,000 debt load. As Statistics Canada tells us, they start with lower salaries and then, when they get the jobs that they can get with the laissez-faire government, the same as the Liberals who did not seem to give a darn about the middle class or poorer working Canadians, students simply end up, once they have finally paid off their student loans, facing a life where there are no pensions beyond what is contained in the CPP and the GIS.

We know the government has done nothing to address the underfunding of the GIS, this rip-off of seniors. Nothing in Bill C-28 deals with the fact that the cost of living has gone up faster than the GIS, which means that seniors are being ripped off by the Conservative government, as they were ripped off by the former Liberal government.

Nothing in Bill C-28 addresses any of those concerns. It contains nothing about the farm crisis and agricultural incomes, and nothing about the poverty that first nations are living under, the deplorable state on reserves across the country. It contains nothing to deal with the fact that five million Canadians with disabilities are the poorest of the poor Canadians. Half of the homeless are Canadians with disabilities and 40% of those need to stand in long lineups at the food banks for food, which we never see the Liberals and Conservatives actually addressing. The lineups at the food banks are becoming increasingly longer and 40% of the people who need those food banks just to survive until the end of the month are people with disabilities. Nothing in Bill C-28 addresses that either.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:30 p.m.


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Conservative

James Bezan Conservative Selkirk—Interlake, MB

Mr. Speaker, I rise on a point of order. I would ask that you bring order to this chamber. When we are debating third reading, we are supposed to be talking about the context of the bill. The time, the place and the discussion at second reading, in committee and at report stage is passed. All the wish list that he is throwing out here, that time has come and gone and now it is time to talk about the specifics and mechanics of the act.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:35 p.m.


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The Acting Speaker Andrew Scheer

I would again ask the hon. member for Burnaby—New Westminster to try to keep his remarks as closely as possible to the third reading stage of Bill C-28.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:35 p.m.


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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, the member for Selkirk—Interlake could not have put it better. He said that we were supposed to be talking about the context of the bill and that is exactly what I am addressing, the context of the bill, the fact that it does not deal with any of the issues that Canadians are most concerned about.

What does it deal with? It deals with massive corporate tax cuts, which is an interesting priority of the government. One hundred and ninety billion dollars were taken out of the fiscal capacity of the government and half of that goes to corporate tax cuts. Where is that money going? It turns out that most of that money will go to the very profitable industrial sectors, the banks and petroleum industry. They are just shovelling the money off the back of truck and not dealing with health care or any of these other issues that members of the NDP raised.

Let us look at where the money is going. In 2006, last year, Imperial Oil had profits of over $3 billion and it benefits from the generosity of the Conservative government which now says that it will make the company even more profitable by giving more and more.

Let us look at what else. Petro-Canada made $1.7 billion. The Conservatives just shovel money at that company as well, not Canadians with disabilities, not aboriginal people and not poor working families but they just shovel it out of the back of the truck.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:35 p.m.


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An hon. member

Get the bulldozer.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:35 p.m.


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An hon. member

Where is the front-end loader?

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:35 p.m.


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The Acting Speaker Andrew Scheer

I am going to ask everybody to come to order. Normally I can hear the hon. member for Burnaby—New Westminster just fine but today I am having a little bit of trouble.

Could hon. members maybe hold off until the question and comment period to make their remarks, then we will allow the hon. member for Burnaby—New Westminster to continue.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:35 p.m.


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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I am glad to see the Conservatives are awake in the House now. Hopefully, they will actually read the bill and exercise their due diligence by voting against it.

It is important for Canadians to know where these tax gifts are going. I do not think any Conservative member would be opposed to that because they believe in accountability.

The EnCana Corporation saw $6.4 billion in profit in 2006 and the Conservatives want to give it more. Shell Canada saw $1.7 billion in profit. Suncor Energy saw $2.9 billion in profit. Husky Energy had $2.7 billion in profit. Talisman saw $2 billion in profit. That is the list of Conservative beneficence and generosity. The Conservatives just shovel it out of the back of a truck to the corporate sector.

Bill C-28 contains nothing for poor Canadians, nothing to deal with the housing crisis or the income crisis, and nothing to deal with the post-secondary education crisis and the crisis on aboriginal reserves. It contains nothing to deal with the crisis among Canadians with disabilities. We simply see no reference to any of that. Why? The Conservative government is so profoundly out of touch that it thinks the greatest priority for Canadians right now is to shovel tens of billions of dollars to the corporate sector.

The government does not take care of veterans or aboriginal people. It does not take care of poor working families that have been working their fingers to the bone over the last 20 years and average over 200 hours more of work as commuting times increase and as the overall quality of services deteriorates given how irresponsible the Liberals were when they were in government. The Conservatives are not addressing any of that.

They will say that Bill C-28 has a slight adjustment in the lower levels for income tax payers. However, it is important for Canadians to know that there is one thing that will help them in terms of income tax and that is a net benefit of $15 a month for average families earning less than $30,000 a year. The government is giving tens of billions of dollars to the corporate sector but it is giving families $15 a month.

I come from British Columbia and I have seen this kind of hocus-pocus with tax cuts under the Gordon Campbell government. It did the same thing. It gave massive gifts to its buddies in the corporate sector while lower income families were given $15 or $20 a month. It turns out that all families earning less than $80,000 a year, which is the vast majority of Canadian families, actually ended up paying more user fees than they received from that small tax break.

As I mentioned earlier, the massive cuts that the Conservative government is making in all the services I just mentioned from the Library of Parliament documentation, essentially gives poor working families $15 a month to adjust for the user fees or the deterioration of services that they will see right across the spectrum of federal government services.

That is not what Canadians want. Canadians want an effective federal government. They want an activist federal government that will use money wisely but put it where it counts the most. They do not want a government that fritters away, in this appalling irresponsible way, tens of billions of dollars to the corporate sector.

The government had a choice. It could have taken a different direction from the failed, corrupt Liberal government but it chose to take exactly the same route, which is why we oppose Bill C-28.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:40 p.m.


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Liberal

Roy Cullen Liberal Etobicoke North, ON

Mr. Speaker, I wonder when the NDP is going to become mired in the present and the future instead of mired in the past.

The member for Burnaby—New Westminster and his colleague, the member for Sault Ste. Marie, keep going on about the Canada assistance plan. While it is true that we replaced the Canada assistance plan in 1993, it was dead in the water in the late 1980s. The reason for that was that the Canada assistance plan was money that was being spent by the provinces. The provinces were reimbursed 50% by the federal government. The provinces were abusing that. If a province is spending 50¢ dollars, that is a very cheap way of doing things.

Also, established programs financing was collapsed into the Canada health and social transfer. Established programs financing was a very ineffective tool because it was trying to allocate funds to various programs. The government in its wisdom in 1993 or 1995, whenever it was, replaced the Canada assistance plan, which was an archaic and ineffective tool, and the established programs financing with the Canada health and social transfer. Over time, through the Canada health and social transfer, the Liberal government brought in some accountability measures, some performance measures, some outcome measures.

If the NDP members were actually mired in the present and the future, the issue before us is the Canada health and social transfer and should we have a dedicated portion of that fund to deal with post-secondary education. That is one of the burning issues. I do not hear any of the NDP members talking about that. They are mired in the past with the Canada assistance plan which has been gone for 15 years. For goodness' sake, let us get into the present and the future and talk about where we are taking this country moving forward, not going back into the past.

When will the NDP be mired in the present and the future and get out of being mired in the past?

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:40 p.m.


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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, any time a Liberal talks about accountability, it makes me smile. The Liberals were the most unaccountable government imaginable, mired in corruption and entitlement. Unfortunately, the Conservatives have taken on exactly the same shine.

We have been talking about the present and the future. We have been talking about all the elements that Canadians want to see, support for our health care system and post-secondary education, support for an industrial strategy and a trade strategy that would actually mean family sustaining jobs and not the cut rate jobs at Wal-Mart which is all the Conservatives and Liberals have been offering the country for the last 20 years. We have been talking very clearly in the present and the future.

I am not going to let the Liberals escape their responsibility for gutting and destroying the national housing program. What that has led to is hundreds of thousands of Canadians who have to sleep in the doorways and parks of our country. It is absolutely appalling.

For members of the Liberal Party to try to defend in some way that sorry record, it only goes to show that they have not learned their lesson.

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:40 p.m.


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NDP

Tony Martin NDP Sault Ste. Marie, ON

Mr. Speaker, I want to commend the member for his excellent speech. It was an excellent exposé of what the present government wants to do in terms of tax breaks for corporations at the expense of investments in infrastructure for people and communities.

I was wondering if the member had spent any time trying to compare the track record of the Liberal government over 13 years. In fact, the previous Liberal government, maybe even in a more aggressive way under the aegis of fighting the deficit which they got through quite quickly because of the aggressive nature of their program, reduced the social transfer to the provinces by some $7 billion to $8 billion. Then the previous Liberal government took advantage of the good economy that came after 1995 and began to deliver huge corporate tax breaks to corporations, banks, insurance companies and oil companies across the country at the expense of the social infrastructure.

I look at, for example, that vehicle which defines us as Canadians which is health care. I have to look no further than my own backyard to recognize the cuts that were made by the federal government and passed on to the provinces. Then the provinces passed those cuts on to the institutions that the provinces are mandated to deliver to communities and to people. Health care was one of those institutions that got savaged.

There are waiting lists, long lineups and various diseases beginning to creep in. This is very troubling for people. I would suggest that our health care system is in crisis.

In comparing what the new Conservative government that has been around for almost two years is proposing to do for the country with what the Liberals did over 13 years, does the member see any difference?

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:45 p.m.


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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, it seems to be only NDPers in the House who are asking the intelligent questions about Bill C-28. The member's question is a very valid one.

We saw gutting of the health care system under the Liberals continued under the Conservatives. There are the recent cutbacks that I just cited in terms of the overall cutbacks to government departments. Rather than making sure the money is being adequately invested and ensuring that our health care program is adequately funded, the Conservatives are taking exactly the same approach as the Liberals.

The member for Sault Ste. Marie has raised an important question. It is important to note that health care is a major part of the competitive advantage for Canadian companies. Study after study has shown that Canadian companies are far more competitive because they do not have to pay health care benefits as they do in the United States. We have a major competitive advantage.

Neither the Liberals nor the Conservatives have ever attempted to match corporate tax rates to that effective competitive advantage that companies get through the health care system. They just keep slashing corporate tax rates down to the bone without taking into consideration that the support for the health care system is a major competitive advantage.

If the government wants to help the corporate sector, why does it not invest in health care? Why does it not invest in a pharmacare program that would allow corporations to have an even more effective competitive advantage without slashing the federal government's ability to help ordinary Canadians?

Budget and Economic Statement Implementation Act, 2007Government Orders

December 11th, 2007 / 1:45 p.m.


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NDP

Alex Atamanenko NDP British Columbia Southern Interior, BC

Mr. Speaker, today my colleague has been accused of living in the past and dwelling on things that have happened before.

I would like to get his idea on what he sees for our country in the future. Does he see that we are perhaps at a crossroads where we have the gradual takeover of the citizen's agenda by the corporate sector? If this is the case, how can we grab our country back and get on the right track, which most Canadians expect us to do?