Bill C-50 (Historical)

Budget Implementation Act, 2008

An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget

Part 1 enacts a number of income tax measures proposed in the February 26, 2008 Budget. In particular, it
(a) introduces the new Tax-Free Savings Account, effective for the 2009 and subsequent taxation years;
(b) extends by 10 years the maximum number of years during which a Registered Education Savings Plan may be open and accept contributions and provides a six-month grace period for making educational assistance payments, generally effective for the 2008 and subsequent taxation years;
(c) increases the amount of the Northern Residents Deduction, effective for the 2008 and subsequent taxation years;
(d) extends the application of the Medical Expense Tax Credit to certain devices and expenses and better targets the requirement that eligible medications must require a prescription by an eligible medical practitioner, generally effective for the 2008 and subsequent taxation years;
(e) amends the provisions relating to Registered Disability Savings Plans so that the rule forcing the mandatory collapse of a plan be invoked only where the beneficiary’s condition has factually improved to the extent that the beneficiary no longer qualifies for the disability tax credit, effective for the 2008 and subsequent taxation years;
(f) extends by one year the Mineral Exploration Tax Credit;
(g) extends the capital gains tax exemption for certain gifts of listed securities to also apply in respect of certain exchangeable shares and partnership interests, effective for gifts made on or after February 26, 2008;
(h) adjusts the rate of the Dividend Tax Credit to reflect corporate income tax rate reductions, beginning in 2010;
(i) increases the benefits available under the Scientific Research and Experimental Development Program, generally effective for taxation years that end on or after February 26, 2008;
(j) amends the penalty for failures to remit source deductions when due in order to better reflect the degree to which the remittances are late, and excuses early remittances from the mandatory financial institution remittance rules, effective for remittances due on or after February 26, 2008;
(k) reduces the paper burden associated with dispositions by non-residents of certain treaty-protected property, effective for dispositions that occur after 2008;
(l) ensures that the enhanced tax incentive for Donations of Medicines is properly targeted, effective for gifts made after June, 2008; and
(m) modifies the provincial component of the SIFT tax to better reflect actual provincial tax rates, effective for the 2009 and subsequent taxation years.
Part 1 also implements income tax measures to preserve the fiscal plan as set out in the February 26, 2008 Budget.
Part 2 amends the Excise Act, the Excise Act, 2001 and the Customs Tariff to implement measures aimed at improving tobacco tax enforcement and compliance, adjusting excise duties on tobacco sticks and on tobacco for duty-free markets and equalizing the excise treatment of imitation spirits and other spirits.
Part 3 implements goods and services tax and harmonized sales tax (GST/HST) measures proposed or referenced in the February 26, 2008 Budget. It amends the Excise Tax Act to expand the list of zero-rated medical and assistive devices and to ensure that all supplies of drugs sold to final consumers under prescription are zero-rated. It also amends that Act to exempt all nursing services rendered within a nurse-patient relationship, prescribed health care services ordered by an authorized registered nurse and, if certain conditions are met, a service of training that is specially designed to assist individuals in coping with the effects of their disorder or disability. It further amends that Act to ensure that a variety of professional health services maintain their GST/HST exempt status if those services are rendered by a health professional through a corporation. Additional amendments to that Act clarify the GST/HST treatment of long-term residential care facilities. Those amendments are intended to ensure that the GST New Residential Rental Property Rebate is available, and the GST/HST exempt treatment for residential leases and sales of used residential rental buildings applies, to long-term residential care facilities on a prospective basis and on past transactions if certain circumstances exist. This Part also makes amendments to relieve the GST/HST on most lease payments for land on which wind or solar power equipment used to generate electricity is situated.
Part 4 dissolves the Canada Millennium Scholarship Foundation, provides for the Foundation to fulfill certain obligations and deposit its remaining assets in the Consolidated Revenue Fund, and repeals Part 1 of the Budget Implementation Act, 1998. It also makes consequential amendments to other Acts.
Part 5 amends the Canada Student Financial Assistance Act and the Canada Student Loans Act to implement measures concerning financial assistance for students, including the following:
(a) authorizing the establishment and operation, by regulation, of electronic systems to allow on-line services to be offered to students;
(b) providing for the establishment and operation, by regulation, of a program to provide for the repayment of student loans for classes of borrowers who are encountering financial difficulties;
(c) allowing part-time students to defer their student loan payments for as long as they continue to be students, and providing, by regulation, for other circumstances in which student loan payments may be deferred; and
(d) allowing the Minister of Human Resources and Skills Development to take remedial action if any error is made in the administration of the two Acts and in certain cases, to waive requirements imposed on students to avoid undue hardship to them.
Part 6 amends the Immigration and Refugee Protection Act to authorize the Minister of Citizenship and Immigration to give instructions with respect to the processing of certain applications and requests in order to support the attainment of the immigration goals established by the Government of Canada.
Part 7 enacts the Canada Employment Insurance Financing Board Act. The mandate of the Board is to set the Employment Insurance premium rate and to manage a financial reserve. That Part also amends the Employment Insurance Act and makes consequential amendments to other Acts.
Part 8 authorizes payments to be made out of the Consolidated Revenue Fund for the recruitment of front line police officers, capital investment in public transit infrastructure and carbon capture and storage. It also authorizes Canada Social Transfer transition protection payments.
Part 9 authorizes payments to be made out of the Consolidated Revenue Fund to Genome Canada, the Mental Health Commission of Canada, The Gairdner Foundation and the University of Calgary.
Part 10 amends various Acts.

Budget Implementation Act, 2008

[Dean Allison, Conservative, Niagara West—Glanbrook, ON]

Mr. Speaker, the New Democratic Party is willing to resort to old political games and has announced it will attempt to stonewall Bill C-50 in an effort to prevent it from passing before the summer recess in June.

In doing so, the NDP is knowingly putting $1.5 billion in important federal funding at risk, including $500 million to help improve public transit, $400 million to help recruit new front line police officers, nearly $250 million for carbon capture and storage, $110 million for the Mental Health Commission of Canada, and much more.

These tactics by the NDP could even delay the implementation of the highly touted tax-free savings account that would allow Canadians to save up to $5,000 every year tax free for life.

These cheap political games prove that the NDP's priorities are different from those of most Canadians, again demonstrating why an overwhelming majority of Canadians will never ever take the NDP seriously.

It is time for the NDP to stop its political posturing, start listening to Canadians and help pass Bill C-50 before the summer recess.

Citizenship and Immigration — Speaker's Ruling

[The Speaker, Peter Milliken]

I am now prepared to rule on the question of privilege raised by the hon. member for Scarborough—Agincourt and the hon. member for Trinity—Spadina on May 15, 2008, concerning the Department of Citizenship and Immigration’s newspaper advertisements entitled “Reducing Canada’s Immigration Backlog”.

I would like to thank the hon. members for having raised this matter, as well as the hon. Leader of the Government in the House of Commons for his intervention.

In his remarks, the hon. member for Scarborough—Agincourt brought to the attention of the House that advertisements had been placed in newspapers by the Department of Citizenship and Immigration regarding proposed changes to the Immigration and Refugee Protection Act. He contended that the advertisements promoted certain changes to the act as contained in section 6 of Bill C-50, An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget.

As hon. members know, Bill C-50 has not yet been adopted by this House or by Parliament. The hon. member for Scarborough—Agincourt argued that these advertisements and the use of public funds to pay for them demonstrated contempt for this House on the part of the Minister of Citizenship and Immigration.

In her submission, the hon. member for Trinity—Spadina also contended that these advertisements constituted a contempt of Parliament by presenting misleading information that has obstructed and prejudiced the proceedings of this House. The hon. member likened this situation to a case in 1989 when the government of the day placed an advertisement in newspapers to announce changes to the federal sales tax, which had not been adopted yet by Parliament.

In support of the contention that the use of public funds for these ads constituted a contempt of Parliament, the hon. member cited an October 17, 1980 ruling by Madam Speaker Sauvé regarding an advertising campaign on the government's constitutional position.

The hon. Leader of the Government in the House of Commons argued, for his part, that the question of privilege was not raised at the earliest available opportunity since the advertisements in question had first appeared in newspapers on April 15. To support this point, he quoted passages from House of Commons Procedure and Practice on pages 122 and 124 which state that the Speaker must be satisfied that a question of privilege was raised at the earliest opportunity.

In addressing the issue of the use of public money, the government House leader stated that the funds used were not dependent on the passage of Bill C-50 but, in fact, had been approved in March of this year as part of interim supply.

In addition, he maintained that the advertisements were written in such a way as to take into account what he described as the core principle of Mr. Speaker Fraser's 1989 ruling, that is:

...that advertising undertaken by the government should not presume or suggest that a decision had been made already when it had not been taken by the House of Commons or by Parliament.

He stressed that words and the tone used in the advertisements fully respected the jurisdiction and privileges of Parliament since they did not presume that Parliament had already taken a decision on the matter. To that end, he quoted from the advertisements in question.

In assessing the merits of any question of privilege raised in the House, the Chair is always mindful of the important point raised by the government House leader regarding timing. It is true that members wishing to raise a question of privilege must do so at the earliest opportunity.

However, there is an important nuance the government House leader may have overlooked. In this case, as in others, it is not so much that the event or issue complained of took place at a given time, but rather that the members bringing the matter to the attention of the House did so as soon as practicable after they became aware of the situation.

The Chair has always exercised discretion on this point given the need to balance the need for timeliness with the important responsibility members have of marshalling facts and arguments before raising matters of such import in the House.

In the case at hand, the Minister of Citizenship and Immigration was asked about the advertisements when she appeared before the Standing Committee on Citizenship and Immigration on the afternoon of Tuesday, May 13, less than two days before the matter was raised in the House. Given these circumstances, I am satisfied that the members for Scarborough—Agincourt and Trinity—Spadina have respected the timing requirements of our established procedure for raising questions of privilege.

The Chair must now determine whether or not the placement of the advertisements related to certain provisions of Bill C-50 has interfered with the ability of members to carry out their responsibilities as members of Parliament. In doing so, the cases cited by the member for Trinity—Spadina have been most instructive.

As Mr. Speaker Fraser stated in his ruling in the Debates of October 10, 1989, on pages 4457 to 4461:

In order for an obstruction to take place, there would have had to be some action which prevented the House or Members from attending to their duties, or which cast such serious reflections on a Member that he or she was not able to fulfill his or her responsibilities. I would submit that this is not the case in the present situation.

Despite not finding a prima facie case of privilege in that case, Mr. Speaker Fraser did raise serious concerns about the situation, stating that the ad was “objectionable and should never be repeated”.

With respect to the content and the cost of the advertisements, in the ruling given by Madam Speaker Sauvé on October 17, 1980, she stated on page 3781 of the House of Commons Debates:

The fact that certain members feel they are disadvantaged by not having the same funds to advertise as does the government, which could possibly be a point of debate, as a matter of impropriety or under any other heading, does not constitute a prima facie case of privilege unless such advertisements themselves constitute a contempt of the House, and to do so there would have to be some evidence that they represent a publication of false, perverted, partial or injurious reports of the proceedings of the House of Commons or misrepresentations of members.

As I indicated when this matter was raised, the issue of the money spent for these advertisements is clearly not a procedural matter.

In addition to these examples, another can be found in 1997, when a question of privilege was raised concerning advertisements made by Health Canada in daily newspapers regarding anti-tobacco legislation that had not yet been adopted by the House. In that case, Mr. Speaker Parent ruled, on March 13, 1997, in the Debates, on pages 8987 to 8988, that the advertisement did not give the impression that the House had already passed then Bill C-71 and, therefore, he could not find a prima facie question of privilege.

It is with these precedents in mind that I reviewed the advertisements in question. They contain phrases such as “the Government of Canada is proposing measures”, “These important measures, once in effect,” and “These measures are currently before Parliament”. In my view, the advertisements clearly acknowledge that these measures are not yet in place. I am therefore unable to find evidence of a misrepresentation of the proceedings of the House or of any presumption of the outcome of its deliberations.

While the hon. members for Scarborough—Agincourt and Trinity—Spadina may disagree with the title and content of these advertisements, this is more a matter of debate than of procedure or privilege. The Chair must therefore conclude, for the same reasons as my predecessors did, that the case before us today does not constitute a prima facie case of privilege or contempt of Parliament.

Once again, I thank the hon. members for Scarborough—Agincourt and Trinity—Spadina for having brought this matter to the attention of the House.

Citizenship and Immigration

[Olivia Chow, NDP, Trinity—Spadina, ON]

Mr. Speaker, it is my honour to present a petition signed by almost 100 petitioners.

The petitioners are quite upset that the Conservative government has introduced major changes to the Immigration and Refugee Protection Act in a budget implementation bill. They note that the bill would give major new powers to the Minister of Citizenship and Immigration, that it would have irreversible damage to the humanitarian compassionate tradition that Canada has had, that it would limit the ability of ordinary Canadians to be united, based on humanitarian compassionate grounds, with overseas family members and that it would give the minister and her officials the power to deny visas to those who have already qualified.

They call upon the Government of Canada to abandon the changes to her powers that were introduced as part of Bill C-50, the budget implementation bill, to increase staffing in overseas visa offices to deal with the immigration backlog, to increase Canada's immigration target to 1% of the Canadian population, which would be 330,000 new residents, to facilitate family reunification and meet labour needs and also to stop—

Finance—Main Estimates 2008-09

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Chair, I would like to add that we did not cooperate with the government this afternoon because we were against the time limits and against what they wanted to do with Bill C-50 regarding employment insurance. However, the theft and diversion of $54 billion by the Conservative government and the Liberal government before it has been confirmed.

All that aside, I have a question. The Conservative government, which had a $10 billion surplus at the end of last year, saw the Government of Quebec introduce a program for the manufacturing sector. How could the Conservative government then turn around and allocate just $1 billion for a trust for all of Canada but put $10 billion toward the debt, thereby abandoning Quebec, Ontario and the provinces that are having a lot more difficulty making ends meet? They do not have the financial means since the fiscal imbalance has not been completely resolved.

Why did the Conservative government make such an egotistical decision, as though it were a corporation rather than a government, to allocate 100% of the surplus to the debt, while leaving manufacturing businesses in their difficult situations? Thousands of jobs and many communities have disappeared, families can no longer make ends meet, and tonight, he is telling us that the only way to help older workers is to retrain them so that they can find new jobs even though many of them cannot find new jobs.

Are the Conservative government and the Minister of Finance ready to make a commitment, to change their attitude and to move forward with more appropriate measures to support the manufacturing sector and help older workers? Are they ready to find a way to make Conservative members from Quebec contribute and help solve the financial situation? Could that be why he does not understand Quebec? I do not know.

[Jim Flaherty, Conservative, Whitby—Oshawa, ON]

Mr. Chair, I knew the tax free savings account had to be a good idea because when he was a Conservative, the hon. member for Halton said that this is a good idea, something he had long advocated for. So I know it is a good idea as do the Canadian Chamber of Commerce, the CD Howe Institute, the Winnipeg Free Press and the economists at BMO.

The Canadian Taxpayers Federation said:

This is an excellent policy proposal. Canada needs to reward people that save because their investments fuel economic growth and job creation.

The Canadian Federation of Independent Business said, “--the savings account, for one, that is an inspired measure”.

It is the most significant tax change with respect to savings and sheltering savings since the RRSP was brought in, in 1957. So it has been many years since then, but members opposite will observe in the next couple of years what an important tax measure this is for Canadians from coast to coast to coast, those 18 years of age or over. I sure hope they will support it when it comes to the House for a vote with Bill C-50 later this week or next week.

[Jim Flaherty, Conservative, Whitby—Oshawa, ON]

Mr. Chair, speaking about skating to where the puck is going to be compared to where it has been, I am told it is 1:0 for Pittsburgh. Sydney Crosby scored with two minutes left in the first period. That is for the eight or nine Canadians who are not watching the game, but who are actually watching us do this in this place. That is a great Canadian taking action there.

We have reduced taxes of all kinds. We have also done something else and that is create the tax free savings account. This was something that needed to be done. In Canada we did not have a savings vehicle outside of the retirement savings vehicle and the RESP, not to mention the registered disability savings plan which this government created.

This tax free savings account is terrific. It has been called by various commentators a jewel and a gem. If Bill C-50 were to pass when it comes back to the House within the next day or two, what it means is as of January 1, 2009, Canadians 18 years of age or over would be able to contribute $5,000 a year tax paid into a fund and have any kind of gains, dividends, or accumulated interest within the fund, and have it paid out whenever they want. This is a tremendous advantage.

Over time this is going to mean something like 90% of the savings of Canadians would be sheltered from taxation through one plan or another, especially for young people, but also for people of moderate means. During the first five years there will be no clawback. It is a terrific idea for Canadians to save money. I look forward to Canadians starting to save money through tax free savings accounts starting January 1, 2009.

[Jim Flaherty, Conservative, Whitby—Oshawa, ON]

Mr. Chair, on the GIS, we increased the amount that could be earned to $3,500 in this year's budget. We also created a tax-free savings account which is an important vehicle for young Canadians, however, it is also a very important vehicle for older Canadians in that they will be able to put aside $5,000 a year and earn interest on that, or dividends, or capital gains, or any other type of gain, and not have that money taxed when it comes out.

I expect this will be very popular not only among young Canadians but also among older Canadians based on certainly what I have heard from Canadians across Canada since budget 2008 was announced.

In terms of the employment numbers, employment has been strong across the country. I am pleased to say that in this place. We have seen strength in employment in Atlantic Canada, certainly strength in Quebec and in Ontario, and the west. In fact, in many parts of the country, we are seeing labour shortages.

This is a reality as we go forward with economic growth. We are going to have to seek to have more people working in Canada and deal with the immigration issues that we are attempting to deal with in Bill C-50, so that the economy can grow and we will have the people power that the economy needs to grow.

[Ed Komarnicki, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, it is interesting to hear the rhetoric of the member and other members of the Liberal Party saying that they oppose the concept of Bill C-50 and the immigration portion that would reform the immigration system so it works better.

However, despite the rhetoric, I appreciate the fact that the Liberals supported us at the finance committee to ensure the bill comes back to the House for a vote, and again today in the main estimates and supplementary estimates, they concurred in approving the injection of additional funds, part of the $109 million that was in the estimates and supplementary estimates, to ensure that goes forward.

They are talking one way in the House with respect to this issue and voting another way to ensure that the bill receives passage. I thank them for that because the bill does need to go forward to address, not only the continuing growth in the backlog that ballooned from 50,000 to over 800,000 under that member and his government's term in office. It needs to be addressed now.

[Gurbax Malhi, Liberal, Bramalea—Gore—Malton, ON]

Mr. Speaker, no one can dispute that Canada's immigration system must be fixed. What the opposition, immigration experts and Canadians do not agree with is the way in which these amendments have been proposed and the unnecessary powers that they would give to the minister.

Major changes to Canada's immigration system, such as those contained in Bill C-50, must be debated openly, honestly and in a non-partisan fashion. The government has failed to meet these three requirements and has failed to earn the trust of Canadians.

I urge the government to listen to Canadians, remove the amendments to the Immigration and Refugee Protection Act from Bill C-50 and allow them to be debated and voted upon on their own merits.

[Ed Komarnicki, Conservative, Parliamentary Secretary to the Minister of Citizenship and Immigration]

Mr. Speaker, to reply to some of the remarks made by the hon. member, it is obviously important to communicate the intention of the budget bill that relates to Citizenship and Immigration because it will affect a number of members of the ethnic community and it is important to meet with them and to ensure they are aware of what we are proposing. That is what has been done.

The intention with Bill C-50 is to take care of the backlog that grew under the member's government over the past number of years from 50,000 to over 800,000, and continues to grow. No one is served by the fact that we are simply taking in more and more applications. The bill would stop the backlog from growing and then would address the backlog to ensure families are reunited faster, skilled workers are brought in from every country and race, to ensure that those skills that are required in the community are met by those who have the skills, and to ensure that is done fairly quickly, not over a period of six years, but in a period of months. It is important for the bill to go forward so that can happen.

The bill would also ensure dollars are invested to reduce the backlog in a proper fashion. It will not be discriminatory in any way with respect to race, religion or ethnicity. It will be charter compliant and dealt with on an objective basis.

Our party is proud of the fact that we have many members of ethnic communities in our party. We were the first party to have a Muslim elected to Parliament, the current member for Edmonton—Strathcona; the first Japanese Canadian to become a cabinet minister, our Minister of International Cooperation; the first Chinese Canadian MP; the first Hindu MP; the first of two Indo-Canadian women, the member in our party for Fleetwood—Port Kells; and, the first black MP and minister of the Crown. Under the previous Clark government, there was a generous response whereby 77,000 Indo-Chinese refugees entered Canada between the years 1975-81 and, of course, Prime Minister Mulroney introduced the first Multiculturalism Act in 1988.

We have opened our arms and doors to invite people from various cultures and countries to come into our country but the immigration system has been burgeoning and has not been proceeding as efficiently as it should.

Also under the previous government, in which the member was a part of, settlement funding was literally frozen for over a period of 10 years. People were coming in but they were not given the support or language training they needed to become integrated as quickly as possible.

Under previous budgets, the government allocated $1.4 billion over five years to directly address settlement issues and to ensure that those who came here would succeed. We also reduced the head tax on newcomers by cutting it in half in the previous budget. In the new budget, we have allocated $109 million over five years to ensure efficiency is built into the system and that it works the way it was intended.

My sense is that we will have more newcomers joining us quicker, more being reunited with their families quicker and more becoming successful citizens faster.

[Gurbax Malhi, Liberal, Bramalea—Gore—Malton, ON]

Mr. Speaker, on April 3, I asked several questions of the government about the amendments to the Immigration and Refugee Protection Act contained in Bill C-50.

Instead of answering my questions, the minister started a taxpayer funded advertising campaign in ethnic media across the country to convince immigrant communities that, despite all evidence, they can trust the government with the future of Canada's immigration policy.

In addition, the Globe and Mail reported yesterday that the minister secretly used Toronto city hall meeting rooms to promote the Conservative Party's views on the Immigration and Refugee Protection Act and Bill C-50 to ethnic media outlets.

This is despite the minister's rejection of Toronto Mayor David Miller's requests for a consultation on the proposed changes.

Mayor Miller is not the only one who is not being fully consulted. The speed at which these amendments have been pushed through the House and its committees shows the government's lack of respect for the opposition and parliamentary procedure. Given the potential impact of the bill on the future of Canada, the government owes it to Canadians to remove the immigration provisions from Bill C-50 and propose them as separate legislation. Changes of this scale should not be just an afterthought in a budget bill.

The minister has also refused to tell Canadians who she would fast-track and who she would leave behind under the new regulations.

This is not a surprise. It would be nearly impossible to sell Bill C-50 if the minister admitted that she plans to put a cap on family class applications, which she has refused to rule out.

One idea that has the support of many in the immigrant community is my proposal of a visa bond system. Under a bond system, immigration officers could give applicants or sponsors the chance to provide a financial guarantee in borderline visitor visa cases. This would help many applicants wanting to come to Canada for weddings and funerals to avoid the rejection and emotional distress they face under the current system.

Canada's visitor visa process is unfair and discriminatory, especially for applicants from developing countries.

The amendments in Bill C-50 would do nothing to improve the situation for visitor visa applicants and, as such, would not truly fix Canada's immigration system.

The government has attached its immigration proposals to a budget bill and tried to force them through the committee and the House without making amendments and used tax dollars to sell its plan to immigrant communities. These are the actions of a government that knows its views on immigration are at odds with those of the majority of Canadians.

I again ask the government why it is sneaking these reforms in through a budget bill, instead of allowing the House to have an independent debate on this critical issue.

Finance

[Rob Merrifield, Conservative, Yellowhead, AB]

Mr. Speaker, it is an honour and a privilege to present, in both official languages, the eighth report of the Standing Committee on Finance in relation to Bill C-50, An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget, without amendment.

I am very proud of the committee and its work and very pleased to present this to the House at this time.

Budget Implementation Act, 2008

[Rahim Jaffer, Conservative, Edmonton Strathcona, AB]

Mr. Speaker, Canadians are surprised to learn the NDP is ready to play political games to prevent the passage of Bill C-50, the budget implementation bill, before the summer recess in June.

In doing so, the NDP is knowingly putting $1.5 billion in important federal funding at risk for Albertans. This includes $53 million over two years through the public transit capital trust and $43 million to Alberta to hire new front line police officers over the next five years. Additionally, it is threatening to delay the landmark tax-free savings account that would allow Canadians to save up to $5,000 every year tax free for life. These tactics prove that the NDP is out of touch with the priorities of Canadians.

I respectfully ask the NDP to let Parliament work, stop playing games and listen to Canadians. I ask the NDP to help pass Bill C-50 before the summer recess so Albertans and Canadians everywhere can benefit from better public transit, safer streets and lower taxes.

Price of Petroleum Products

[David Anderson, Conservative, Parliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board]

Mr. Speaker, I have heard the story in the past of someone who was told, when they were going in to give a speech, “Give them hell”. His response was, “I just tell them the truth. Liberals think that is hell”. Tonight, that is what we will do once again.

I am pleased to be here as part of this debate. Tonight we have heard the Liberals avoid, at all costs, a discussion of their carbon tax. I will talk first about what this government is doing, what it has done and what it will do in the future for Canadians. I will then talk a bit about the alternatives with which Canadians are faced.

One of the most important alternatives that this government has come up with and has taken has been to invest in transportation alternatives and in taxation options and alternatives. I will talk a bit about that tonight.

This government has clearly made significant investments. It has made investments from gas tax revenues into infrastructure. The Liberals who are here tonight do not want to talk about their future plans and, I suspect, do not want to talk about their past actions either but we have made some changes that people were waiting for and were happy to see.

In the words of the mayor of Brampton, Susan Fennell, “The Conservative government has done more for municipalities in the last two years than the old government did in the last 13 years”. I think that says something about what we are doing in terms of taxation and what we are doing in terms of things that will begin to affect the cost of fuel across this country as well.

In the 2008 budget, for example, the Minister of Finance announced that we would make the gas tax permanent. Canadian municipalities have been asking for that for years but again something which the Liberals failed to deliver. We delivered on the 5¢ of the excise tax that is collected on fuel and now municipalities have the long term, sustainable funding for infrastructure that they have requested for so long. Mayors from across the country have praised this announcement and said that they appreciate the opportunity to use that small amount of taxation money on fuel in order to fund the projects that are so important.

The government also introduced an infrastructure plan called the building Canada plan. It is a historic $33 billion investment, the largest infrastructure investment by any government in the last 50 years. Building Canada is meant to provide funding for cleaner water, better highways, more efficient border crossings and public transit. At least two of those things will directly impact fuel prices and fuel usage, and that is our highway system and the public transit options and alternatives.

The largest amount of funding under the building Canada plan is not only for the funding of public transit. After 13 years of lots of talk and no action by the Liberals, this government has made several important investments. For example, budget 2006 included the public transit pass tax credit. Tonight we hear the Liberals talking about the fact that they do not think anything has been done. Clearly this change in the budget has rewarded Canadians who use public transit regularly and who buy monthly passes.

Budget 2006 also included $1.3 billion in support of public transit capital investments. Amazingly, the Liberals and the NDP voted against this important public tax credit. They are here tonight saying that they have some sort of plan but when we come out with things that will support the public, particularly in terms of public transit, they oppose it.

In March 2007, the Prime Minister announced up to $962 million in a partnership with the province of Ontario and five municipalities to generate a combined investment of close to $4.5 billion in public transit and highway infrastructure projects in the greater Toronto area. That is something that will work toward reducing gridlock, improving the environment and increasing economic growth in the GTA.

There is more. Bill C-50, the budget implementation act, includes a $500 million public transit trust and nearly $250 million in carbon capture and storage projects, which will be spent in Saskatchewan and in Nova Scotia. That was a great boost for the economy and for the opportunities in my own home province of Saskatchewan.

This government also made a decision to put almost $500 million into alternative biofuels in order to reduce fuel costs. That is something that has been praised by the other parties as being necessary. We are glad to be leading the way in those kinds of alternatives that give people other options and that will contribute to lowering the cost of fuel.

Canadians understand that this government's investments in public transit are significant. Those are some of the things that we have done and that we are doing.

I would like to take a little bit of time tonight to talk about the alternative stats. It is necessary to do that because we have been moving ahead with a number of tax initiatives. I will talk a bit more about some more of them in a few minutes but I want to talk about the alternative that is being presented for Canadians.

The Liberals have said they do not want to talk about any phantom plans or anything but I just heard the member who spoke talk about the fact that they coming out with a plan. By everything that I understood, he was talking about the carbon tax plan that they and the media have been discussing over the last month.

The Liberals' carbon tax plan seems to be something where they are trying to trick Canadians into thinking that there will not be a cost to Canadians. There would be an increased cost. There would be an increased cost on gas, for example, which will certainly hurt public transit users because it would become more costly to run the buses.

The costs will be transferred to Canadians who are taking public transit. Canadians right away will begin to find themselves between a rock and a hard place. Taking a car will become more expensive but so will public transit. It is just another example of how the Liberal opposition has not thought out the program that it is trying to bring forward.

Canadians know that the Liberals will be coming up with some sort of a massive punitive gas tax on Canadians which will force them to pay more for just about everything from heating their homes to groceries.

I was a little frustrated with the NDP because it is trying to delay the passage of Bill C-50 and we are trying to provide significant funding through that for the environment and public transit. The Bloc, I guess, as witnessed by the emergency debate tonight, seems to more interested in playing political on this issue than anything else and is trying to score some cheap political points rather than provide actual solutions. However, I would imagine that comes out of its frustration from understanding that it will never be able to make a difference here in Ottawa, that they will never be anything but a protest party here in the House of Commons.

The government has taken a number of other initiatives. I would like to talk about those because it is important that we really set the framework for what we have done. We have clearly been ahead of the game. The finance minister and the Prime Minister have done a tremendous job of moving ahead of what is happening in our economy and to react to it in order to keep our economy strong.

I want to talk about a few of the things that have happened. We have brought a lot of personal tax help to Canadians over the last two years. I do not think I need to mention that we have cut the GST by 2%. We made a decision to make a bigger tax cut in the GST than the one we had indicated earlier . We removed 1% and then another 1% on the GST.

I found it interesting to be reading some material tonight that indicated the Liberals would reverse that tax reduction.The finance critic for the Liberals said that “hiking the GST is an option. All I can say is that i consistent with our approach”. He said that about a year ago. The leader said the Liberals would consider raising the GST. He said that it may need to be raised back to 7% and perhaps higher than that.

This government has also reduced personal income taxes. We felt that it was important that Canadians get income tax relief so we have consistently worked to lower the income tax for Canadians.

One of the most important things we have done is raise the personal exemption so Canadians have a higher personal exemption and, as a result of that, they pay less taxes as well.

Those are things that Canadians may not realize how much difference it has made for them. I was talking to a couple of people in my riding in the last two months who wanted to thank me for the changes the government has made. One of them said that he did not make a lot of money, that he had four young children, but he said that the differences in the taxation from two years ago until now for his family was about $2,000 a year.

I had somebody else tell me that his family was saving close to $4,000 this year on income tax because of the changes that the government has made in terms of income tax. People can say that it does not amount to much but for the average Canadian it is a huge difference.

I hear one of my colleagues over here muttering to herself. I guess she is probably annoyed and angered by the fact that we have been so effective in lowering taxes across the country that Canadians are now beginning to understand how important and how much that difference has made in their lives. For most people, taking home $2,000 or $4,000 extra a year is very significant.

I want to contrast that again with what we heard the member from the Liberals talk about a bit ago where he used the words “tax shift”. I think Canadians need to start paying attention. Right from the beginning when they hear the words “tax shift”, they should understand that is not going to end well for them.

The Liberals want to leave the impression, first, that they do not really have any tax plan. However, when their critic starts talking about the fact that they are going to be shifting taxes, we need to take a look at what that means. Their proposal, as they say, is that they are going to move taxes from one area to another, but overall it is going to stay about the same. We know that is wrong, for a couple of reasons.

First, the Liberals have made about $60 billion in additional spending promises. So we know they cannot lower taxes. We know they can only raise them.

Second, they say that they are going to, I guess, put a carbon tax on somewhere, but they claim it is not going to affect the price of fuel. Well, we know that it will.

So, as they are moving their taxation money around, we know they are not going to lower income taxes. We know that they are not going to lower the GST because they have already said that they think they would like to hike it. We know full well that they are going to be putting a carbon tax on, so that taxes are going to go up. That is not a tax shift; that is a tax increase.

There is no such thing as revenue neutral on these taxes. I want to just point out one way that it cannot be revenue neutral even if, in their fantasy, they were not to raise the overall taxation because what it does is it shifts taxation from one person to another. If they think that they are going to lower income taxes, who does that impact the most? It will impact high income earners. If they lower the income taxes for them, somewhere else there is another taxation going on. I can tell members where it is going to be. It is going to be in the rural areas. It is going to be for seniors. It is going to be for low income families who do not pay a lot of income tax.

So, for someone who is making a lot of money, paying income tax, the Liberals say they will reduce it, but we know that they are going to shift that. Even if it is neutral, they are going to shift that to poor people who are not paying income tax, those who have to try to pay electrical bills and home heating bills.

As we heard the member for Yukon say earlier, things like transportation and home heating is a big issue for people in his rural riding. Even getting food into his area is a huge issue if the prices continue to rise.

I live in a rural area and I face those same challenges. I do not think that people, when they begin to look at this carbon tax proposal that the Liberals have, are going to find that it is acceptable in any way, shape or form.

It is funny because the Liberals say they want to put on a carbon tax, but tonight they do not want to talk about it. Every time we have mentioned their proposal, they say that we are attacking them and being critical of them. However, we want to know what they are talking about. We think it is important. We think it is good that we talk about this.

It seems to me that there are a couple of things wrong with this carbon tax. First of all, it is a bad idea. However, for the Liberals, there is another reason why it is not a good idea. They have a pile of their people who do not even support it. Their party is completely split on the issue of what looks like is going to be their main campaign platform.

Let me quote a few of those people because I think it is important that Canadians understand that not only are the Conservatives against this, not only are thinking Canadians opposed to this, not only is the NDP opposed to this, but a number of Liberals are opposed to it as well.

Liberal strategist Warren Kinsella has stated that a carbon tax is unfair to people on fixed incomes, such as the elderly and the poor, who have to heat their homes and buy their food as well.

The Liberal member for Beauséjour has declared that artificially manipulating fuel prices is environmentally irresponsible. Certainly, the goal of a carbon tax is to artificially manipulate prices.

The Liberal member for Kings—Hants has stated that he is, “--strongly against energy taxes”. He said: “I would never propose that Canada needs higher taxes in any area”.

The member for Vaughan has said that a carbon tax is certainly not an option for him, and former leadership contender and Liberal candidate Gerard Kennedy is of the opinion that a carbon tax is the clumsiest of the options they have so far.

I would think that the Liberal leader would listen to some of these people and understand that he does not need to be in a situation where he is picking out any more clumsy options. If he is listening tonight, I would certainly ask him to reconsider this poorly thought out idea that he has of imposing a carbon tax on Canadians.

There are some former high ranking Liberal leaders who are scratching their heads when it comes to this new Liberal plan for a carbon tax. Bill Graham, who was a long time member in the House, said, “Certainly, when we were in government, we clearly did not advocate a carbon tax”. It just seems that there are so many people who are opposed to this.

The strangest thing of all is that one of the people who has been most opposed to a carbon tax is the Liberal leader himself, the one who is now suggesting that we need to have a carbon tax and several times he has stated that he is adamantly opposed to a carbon tax. However, in true Liberal form, we expect the Liberals to flip flop and completely change their position. He said one thing, now he is doing something that is completely contrary to that. That just points out to Canadians that this is not a group of people we should trust with government.

What has happened to him between the time when he said he opposed the carbon tax and now when he says that we really need one in Canada? I would think that perhaps he remembered that Liberals love tax dollars. They have no qualms about trying to find ways to tax and certainly will come up with new ideas all the time to do that. They love to get deeper and deeper into the pockets of hard-working Canadians. We have seen that time and again, and they like to spend that money as though it is their own money.

We recognize there is only one place that government money comes from and that is Canadian taxpayers. That is why the Conservative Party has worked so hard to try to leave that tax money in the pockets of Canadians rather than taking it from them.

There are a number of reasons why people should oppose a carbon tax. The most obvious one is that it imposes a tax punishment on Canadians. It does not matter how carbon tax is organized or how it is arranged, it will punish Canadians. It will have to increase the price of gas at the pumps because that is the purpose of it. It will have to increase the price of home heating fuel, which will be affected by the carbon tax as well. It will increase the price of natural gas for people to heat their homes and it will increase the price of electricity.

It will lead to an increase in the price of everyday goods. Higher gas prices will obviously result in increased shipping costs as well. I would suggest that the Liberal leader needs to rethink this because heating our homes and eating food are not bad habits that a Liberal government would need to discourage. Yet, that is exactly what a gas tax would do. It would force Canadians to cut back on necessities and try to figure out what they will spend their money on.

As I have already mentioned, the gas tax will have the biggest impact on low income Canadians, particularly seniors.

Another reason to oppose this tax is because it will not reach its intended goal. A number of people have said, and David Coon, the policy director of the Conservation Council of New Brunswick is one of them, that a revenue neutral carbon tax will not help the environment or reduce carbon emissions. Neutrality is ridiculous.

I know I have to wrap up here but I just want to say that Canadians will not be fooled by the Liberal leader. If this looks like a massive tax grab and sounds like a massive tax grab, it is a massive tax grab.

Our government has lowered income taxes. It has lowered the GST. It has raised the personal exemption. It has brought in child tax credits so that Canadians can keep their money and spend it as they choose. When it comes to sound management of the economy, the choice is clear. The Liberals want to increase taxes, and punish Canadian workers for their own out of control spending and lack of priorities.

In contrast, we are delivering balanced budgets and lowering taxes in order to keep Canada growing and keep it strong.

Citizenship and Immigration

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons and Minister for Democratic Reform]

Mr. Speaker, I am pleased to respond to this and the point raised by the member for Scarborough—Agincourt earlier today. While not the same, it is obviously related to the exact same question.

The first point I would like to raise is that the member did not raise the question of privilege at the earliest opportunity. This is one of the requirements for a question of privilege of this type. I refer the Speaker, to Marleau and Montpetit at page 122 where it reads as follows:

A complaint on a matter of privilege must satisfy two conditions before it can be accorded precedence...First, the Speaker must be convinced that a prima facie case of breach of privilege has been made and, second, the matter must be raised at the earliest opportunity.

Page 124 states:

The matter of privilege to be raised in the House must have recently arisen and must call for the immediate action of the House. Therefore, Members must satisfy the Speaker that the matter has been raised at the earliest opportunity. When a Member does not fulfil this important requirement, the Speaker has rule that the matter is not a prima facie question of privilege.

Mr. Speaker, the advertisements in question began running on April 15. We are now about a month later. We have had, since the advertisements began running, 17 sitting days. I would think that on that basis alone, you should dismiss this question of privilege.

I would further add that in terms of the member raising the question, the member for Trinity—Spadina who just spoke, that she is in fact quoted in the media commenting on the issue in question. Some time ago, after the advertisements began running, there was a story by Andrew Mayeda of the Southam group on April 21, which was four days after it began running. Therefore, that, again, is many weeks ago. Ample opportunity has existed and the member has failed to meet that minimum obligation of raising the issue at the earliest possible opportunity.

I would like to comment on something the member forScarborough—Agincourt raised this morning. He argued that the money being used for the ads flowed from Bill C-50, the budget implementation bill. Since Bill C-50 has not yet passed into law, he argued, that the government was in contempt.

There is absolutely no basis or evidence for the argument he raised, although that did not stop him from raising it. However, as you are well aware, Mr. Speaker, the money being used for the ads has nothing to do with the passage of C-50. The money was approved in March when the House, with the support of his party, the Liberal Party I might add, adopted interim supply.

With respect to the advertisements themselves, I would invite the Speaker to review the advertisements, which I will be pleased to table in the House. You will note that the ads are very respectful to the House and the legislative process. The authors of the advertisements took into consideration Speaker Fraser's ruling from 1991, from which the member for Trinity—Spadina quoted from extensively, when they were drafting these advertisements. As you will see, they were careful not to be dismissive in any way of the legislative process, which was the subject matter of the question of privilege that led to Speaker Fraser's ruling.

Let us recall what the core finding of that ruling was and the core message. The core principle of it was that advertising undertaken by the government should not presume or suggest that a decision had been made already when it had not been taken by the House of Commons or by Parliament. It is the taking of a decision by Parliament that represents the privilege that should not be prejudiced. Advertisements that imply or suggest that a decision has already been taken when it has not would be not in order, would be inappropriate and would give rise to a case of privilege. However, if the advertising does respect the fact that Parliament has yet to make a decision, then it will not have in any way prejudiced the privileges of Parliament.

I will, for the benefit of you, Mr. Speaker, and for those in the House, read the content of one of these advertisements, and they are all essentially the same, although in many languages. I will read one that appears in English:

Reducing Canada's Immigration Backlog

Newcomers to Canada have helped build our country from the beginning.

The Government of Canada believes in immigration: we want more newcomers to join us, families to be re-unified faster and labour market demands to be met.

Currently, the immigration backlog sits at 925,000 applications. This means that the wait time for an application can be as long as six years.

That's why the Government of Canada is proposing measures to cut the wait.

These important measures, once in effect, include:

More resources: An additional $109 million to speed up the application process.

Faster Processing Times: The ability to fast-track new applications.

Better Employment Opportunities: Matching skills with our economic needs.

Complete Processing. All applications currently in the backlog will be processed.

Then, the next sentence is critical. It says:

These measures are currently before Parliament.

The advertisement continues:

All of these changes respect the Canadian Charter of Rights and Freedoms and the Immigration and Refugee Protection Act.

Canada needs an immigration system that is flexible, fast and fair for everyone—that's why we're reducing the immigration backlog.

It proceeds to provide a number of contact phone numbers and a website to which people could go.

As I have said, the principal question that has to be determined is whether the advertisement in any way apprises, or suggests or presumes that Parliament has already taken a decision, that there is a fait accompli.

What things are spoken of in the past tense? There is something spoken of in the past tense and that is newcomers to Canada have helped to build our great country from the beginning. Perhaps the member suggests this is a fait accompli that has not happened. We believe it has happened and, therefore, I do not think that gives rise to a concern.

However, as for the substantive policy measures in question, all of them are spoken of as proposed measures, once in effect, and being matters that are currently before Parliament.

As I have said, the advertisement was crafted with that critical decision of Speaker Fraser, relating back to the GST advertisement case, in mind and they respect that principle so as to respect the privileges of every member of this House of Commons.

This is very much in contrast, I might add, to what we saw from the former Liberal government, which went out of its way to dismiss the role of Parliament and parliamentarians. This was highlighted by former prime minister Chrétien's reference to his backbench as terracotta soldiers.

Compare our ad to the former Liberal government's ads, announcements and activities and it will be concluded that it is not side of the House that needs a lecture on respecting the legislative process.

For example, the Liberal minister of international trade, on March 30, 1998, sent out a press release entitled “Marchi Meets With Chinese Leaders in Beijing and Announces Canada-China Interparliamentary Group”. At that time, there was no Canada-China interparliamentary group.

The Liberal government appointed the head of the Canadian millennium scholarship foundation before there was legislation setting up the foundation

The Liberal government sent out a news release, on October 23, 1997, announcing that provincial and federal governments had constituted a nominating committee to nominate candidates for the new Canada pension plan investment board. The nominating committee is provided for under subclause 10(2) of Bill C-2, which had not yet been adopted at that time by the House.

On January 21, 1998, the Liberal agriculture minister met in Regina to discuss the rules for the election of directors to the Canadian Wheat Board's board of directors, as proposed in Bill C-4, An Act to Amend the Canadian Wheat Board Act. Substantial amendments to Bill C-4, tabled at report stage by opposition members, had yet to be debated in the House. While the House was still debating how many directors should be farmer elected versus government appointees, the minister was holding meetings as though his bill was already law.

How can we forget what took place in the last Parliament, when the opposition defeated two bills that would reorganize the Department of Foreign Affairs and International Trade. After the defeat of these bills, the Liberal minister responsible said that the government would go ahead and reorganize the departments anyway.

I point out that the Speaker did not consider any of these actions to be an affront to the House. That being the case, and in comparison to the respectful tone of this government's advertisement, I submit it cannot be viewed as dismissive of the legislative process or the role of members of Parliament. We on this side of the House do not think our caucus members are nobodies. We respect the institution and the members who serve it.

The advertisement is very clear in stating that the measures are currently before Parliament, and that is certainly the minimal test.

I might add, with regard to some other questions that were raised, much of what the member for Trinity—Spadina raised goes to the debate of the bill itself and the merits of it, some contentions about whether it would succeed in having some of the desired outcomes that were sought. Those are very much matters for debate. They are appropriate for debate, but they are not questions that go to the issue of the privileges of this Parliament, as people can have different views. The government is very confident in its views on this matter.

I might also add, with regard to Speaker Sauvé's 1980 ruling, she stated the following:

The fact that certain members feel they are disadvantaged by not having the same funds to advertise as does the government, which could possibly be a point of debate, as a matter of impropriety or under any other heading, does not constitute a prima facie case of privilege...

I understand she wished there was nobody making the case on the other side of this debate. However, the government reserves the right to make that case and it is doing so actively, but doing so in a fashion that respects the previous rulings in the House, the leading ruling of Speaker Fraser, which is the critical one to which we must have regard.

The advertisements were done in such a fashion, all of them in different languages, that they fully respected Parliament's jurisdiction, its ability to make this decision and communicated fairly to Canadians that the decision was yet to be made and it was something for which they should watch how Parliament determines, by saying that the measures were currently before Parliament and that they were, indeed, that the Government of Canada was proposing.