Economic Recovery Act (stimulus)

An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

Sponsor

Jim Flaherty  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

Part 1 implements income tax measures proposed in the Budget tabled in Parliament on January 27, 2009 but not included in the Budget Implementation Act, 2009, which received royal assent on March 12, 2009. In particular, it
(a) introduces the Home Renovation Tax Credit;
(b) introduces the First-time Home Buyers’ Tax Credit; and
(c) enhances the tax relief provided by the Working Income Tax Benefit.
In addition, Part 1 extends the existing tax deferral available to farmers in prescribed drought regions to farmers who dispose of breeding livestock because of flood or excessive moisture and sets out the regions prescribed either as eligible flood or drought regions in 2007 to 2009.
Part 2 authorizes payments to be made out of the Consolidated Revenue Fund for multilateral debt relief and in relation to offshore petroleum resources. It also makes the following amendments:
(a) the Bretton Woods and Related Agreements Act is amended to implement amendments proposed by the Board of Governors of the International Monetary Fund;
(b) the Broadcasting Act is amended to extend the Canadian Broadcasting Corporation’s borrowing limit to $220,000,000;
(c) the Budget Implementation Act, 2009 is amended to clarify the purposes for which payments may be made;
(d) the Canada Pension Plan is amended to
(i) remove the work cessation test in 2012 so that a person may take their retirement pension as early as age 60 without the requirement of a work interruption or earnings reduction,
(ii) increase the general drop-out from 15% to 16% in 2012 allowing a maximum of almost seven and a half years of low or zero earnings to be dropped from the contributory period and to 17% in 2014 allowing a maximum of eight years to be dropped,
(iii) require a person under the age of 65 who receives a retirement pension and continues working to contribute to the Canada Pension Plan and thereby create eligibility for a post-retirement benefit,
(iv) permit a person aged 65 to 70 who receives a retirement pension to elect not to contribute to the Canada Pension Plan, and
(v) have the adjustment factors that apply to early or late take-up of retirement pensions fixed by regulation after December 31, 2010 and have the Minister of Finance and the ministers of the included provinces review the adjustment factors and make recommendations as to whether the factors should be changed;
(e) the Canada Pension Plan Investment Board Act is amended by repealing section 37 and by permitting the approval of regulations made under subsection 53(1) before they are made;
(f) The Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act is amended to provide for Crown share adjustment payments to be made in accordance with an agreement between Canada and Nova Scotia;
(g) the Customs Tariff is amended to change the conditions relating to containers temporarily imported under tariff item 9801.10.20 and to add new tariff item 9801.10.30 relating to temporarily imported trailers and semi-trailers;
(h) the Financial Administration Act is amended to require that departments and parent Crown corporations cause quarterly financial reports to be prepared every fiscal quarter and to make them public; and
(i) the Public Service Superannuation Act is amended by adding the name of PPP Canada Inc. to Part I of Schedule I to that Act.
Part 2 also amends the Bankruptcy and Insolvency Act and chapter 36 of the Statutes of Canada, 2007 to correct unintended consequences resulting from the inaccurate coordination of two amending Acts.

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

Nov. 17, 2009 Passed That the Bill be now read a third time and do pass.
Oct. 7, 2009 Passed That the Bill be now read a second time and referred to the Standing Committee on Finance.

Economic Recovery Act (Stimulus)Government Orders

November 16th, 2009 / 1:05 p.m.
See context

Bloc

Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC

Mr.Speaker, I am pleased to speak on behalf of the Bloc Québécois about Bill C-51, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures. It is important for those listening and for you, Mr. Speaker, to fully understand the situation.

First of all, for political reasons, the government decided to take part of what it had already announced in the budget and to make it a bill. We are talking about Bill C-51, which includes certain budget measures already adopted with the support of the Liberals.

Some may ask why the government decided to take certain provisions and create another bill. Quite simply because the government believed that it was very likely that an election would be held. It wanted to show that certain budget provisions had the approval of Parliament. It is always rather troubling to see the way the Conservatives manipulate public opinion. They have followed in the footsteps of the U.S. Republicans and they are good at it.

This allows them to shift the focus of debate. From the media's point of view, the debate is shifted to a new subject. We know that the latest budget adopted by the Conservatives contained important measures for the automotive industry. However, they have abandoned the forestry and manufacturing industries. In Quebec, there are a few automotive parts companies remaining but the only automobile plant, the GM plant in Ste-Thérèse—Boisbriand, shut down many years ago. The automotive industry was not a major player compared to the forestry industry, which affects 26% of the Quebec economy.

The Conservatives, in light of the Liberals' election threat, decided to take the most popular budget measures and create a separate bill to show that they were doing a good job of governing or that they had some interesting ideas. We will be reviewing them since the Bloc Québécois will support Bill C-51. It is a good way for our audience to understand this better.

Yes, a political party may decide to vote against a budget, even though it contains some worthwhile measures. Why? Because you have to look at the big picture.

The Bloc Québécois is the only political party in this House that defends the interests and values of Quebeckers, and we analyzed the latest budget brought down this past spring with that in mind. The government had ignored the forestry and manufacturing sectors and employment insurance in favour of the automotive industry. The latest budget did not contain any worthwhile employment insurance measures.

Why was this so important to Quebec? Because there had been many plant closures in the forestry and manufacturing sectors as a result of the recent crisis. In addition, the forestry sector had been hard hit for many years. Plants had been closing one after another in many parts of Quebec for the past three years. This crisis in the forestry sector has been going on for five years. Conservative members and ministers from Quebec said that the market was to blame for the forestry crisis in Quebec. The same was true of the auto sector. The North American automotive industry was ailing, primarily because it had not adjusted its products. Inevitably, the market for cars was affected as a result.

In a move calculated to win votes, the Conservative government decided to help the automotive sector and ignore the forestry sector. It is always disturbing to see Conservative members from Quebec make a show of saying that the forestry crisis will resolve itself and the market will recover. Meanwhile, the Conservative Party decided not to leave the market in the auto sector alone, but to help the industry. That is why the Bloc Québécois opposed the budget. All we wanted was for the government to invest as much money in the forestry sector as in the automotive sector—just over $9 billion.

We saw the numbers in the government's famous recovery plan, the famous incentive measures the Conservatives brag about. While it invested more than $9 billion in the automotive industry, money that was paid out in September, it earmarked only $70 million for forestry, and only $53 million of that money has been spent.

As members from Quebec, when we read these numbers, listened to the Conservatives' speeches and saw this inequity between the forestry and automotive sectors, we could not remain indifferent, especially since much of the forestry industry is in Quebec. The Liberals and the Conservatives could, but not the Bloc Québécois. We wanted to be comfortable when we met people on the streets of our cities, and we wanted to be able to tell them the truth to their faces. We have never been afraid to do so. That is why we stand up every day to defend their interests.

That said, because of the imbalance between the Conservative government's investments in the auto industry and the forestry industry, the Bloc Québécois was not in favour of the last budget. But that does not mean that there were not some interesting measures in the last budget. As I was saying, one morning, the Liberal leader arose and decided, at the last caucus meeting of the summer, that he was strong enough to trigger a general election. When the Conservatives saw that there was a threat of an election, they decided to take some measures out of the budget, which they put into Bill C-51, the bill before us today.

I will speak about some of these measures. Bill C-51 implements the home renovation tax credit, a measure inspired by some of the proposals in the Bloc's two recovery plans. Once again, the opposition parties can call us any names they want, but they will never be able to accuse us of not doing our job. Our party was the only one to release a recovery plan before the last budget, even before the Conservatives released one. They had the brilliant idea of asking the parties to make suggestions. Since the Bloc Québécois is always the first party to proudly defend the interests of Quebec, we proposed measures for the recovery plan. One of them was the home renovation tax credit. It is not surprising that this measure is in Bill C-51 and that the Bloc Québécois is supporting it. Since we suggested it to the government and included it in both recovery plans submitted to the government, we are very interested in supporting this measure in Bill C-51.

Bill C-51 introduces a tax credit for the purchase of a first home, a measure that was part of our platform during the last election. I am not making that up; it is available on the Bloc Québécois' website. A similar measure was in place in Quebec for a time under the Parti Québécois. The government did not reinvent the wheel. It just borrowed a good initiative, followed a good example. Quebec has come up with a lot of good initiatives. It is always disappointing to see how often Parliament ignores good ideas that come from the Government of Quebec, from Quebeckers, but we must not forget that there are six Canadian provinces and three territories. The territories are being given more and more powers even though they have fewer inhabitants than pre-amalgamation Montreal.

So there are six provinces and three territories with fewer than one million inhabitants. Our neighbours are nice people, and we like them a lot, but Quebec has made decisions based on its population and its economy to support, among other things, residential construction. Quebec society has the means to create programs to foster investment. At the time, the goal was to promote residential construction.

The Bloc included these measures in its platform, and now the Conservative Party is adopting them. I hope nobody forgets that the Bloc Québécois supports this measure. All too often, people come up with all kinds of excuses for ignoring Quebec. I want the members who make those excuses to listen up here. Conservative and Liberal members from Quebec all have excuses for ignoring Quebec's demands. Even so, Quebec has a very strong economy and has planned for the future with hydroelectricity and wind energy. Our society made this choice, and it will be a very profitable one if Canada decides to respect its international agreements.

If Canada had decided to comply with the Kyoto protocol, Quebec would already be collecting payments for its efforts. Many Quebec businesses have reduced their greenhouse gas emissions compared to what they were producing in 1992, in accordance with the Kyoto protocol.

Once again, Quebec has access to a little less than half of its resources. As we know, over 50% of the taxes paid by Quebeckers goes to Ottawa, because the federal corporate income tax rate is higher than that of Quebec, among other reasons. If Quebec had full access to all the taxes it collects, imagine what an economic powerhouse it could become in the context of a new, global environmental industry.

We are in the new, global environmental economy and Canada will always be dead last. Canadians have decided to put all their eggs in one basket: logging. They will pay a high price for this decision in the years and decades to come. We will see this very soon in Copenhagen.

We must show some foresight. In the years to come, some countries will penalize factories or businesses that manufacture products from countries that do not comply with new international environmental agreements, as they should. The European countries have decided to pay the high cost of reducing their greenhouse gas emissions, which Canada has not done and the Conservative government is not about to do. This government is earning more and more “fossil of the day” awards and ranks dead last in environmental rankings.

That was the government's choice, but it is not Quebec's choice. Quebec recently reached out to New Brunswick for its hydroelectric development and is really turning to energy sources of the future, to the economy of the future. Those who chose to follow Quebec's lead will do well. The others will be kicking themselves one day and will lose a lot of money because they made poor choices regarding energy development.

We can try to hide from this and tell ourselves that it will not happen in our lifetime. That is what some of our Conservatives colleagues are saying. But things are moving fast.

That is not how I want this planet to be left to my children and my grandchildren. I became a grandfather a few weeks ago and I am going to work hard to leave my grandson a healthier planet than we have now, the one the Conservative government is currently polluting.

We have to take up this battle because Quebec is still in Canada. One day, when it can take flight and be its own country, Quebec will be able to work with the new industries in Europe. It is up to Quebeckers to decide, of course. A new opportunity will likely come up in the next few years.

This is all because Canada lacks vision and does not listen to Quebec enough. Again, this House would do well to listen more and more to the Bloc Québécois.

I was talking about Bill C-51, which uses the measure that was in our platform, namely a first-time homebuyer's tax credit. The bill also implements Canada's international commitments to the International Monetary Fund that were signed in 2008. Obviously, we agreed with Canada's commitment. The government knew we would be in favour of that measure in this bill.

This bill also amends the Canada pension plan, from which Quebec is excluded because it has its own pension plan. For those watching us, Quebec has its own pension plan, the Quebec pension plan or QPP, and it manages its own pension fund. The rest of Canada's provinces have their program. The provinces, in consultation with Canada, who are under this Canadian plan, which excludes Quebec, have adopted certain measures and the Conservative government wanted to include those in Bill C-51. We have a lot of respect for our neighbours. It was their choice and we will not vote against a measure that was chosen after consultation with the federal government. We are in favour of this measure.

The fifth and last measure implements the report of a panel of experts, which included representatives of Nova Scotia and the federal government, on the dispute between those two governments dating back to 1984. Naturally, we will support these measures. Nova Scotia and the federal government have decided, pursuant to long discussions held since 1984, to implement the report of a panel of experts. We will support this in the hope that when the day comes for Quebec to hold negotiations, the other parties in the House will do the same for Quebec. It is not difficult to understand. On the contrary, the Bloc Québécois position is easy to understand. When the Quebec National Assembly adopts a unanimous resolution or motion, we are proud to defend it in this House. What we always find surprising is to see members from Quebec rise and vote against measures proposed by the Quebec National Assembly.

I was the president of the Union des municipalités du Québec in the early 2000s before being elected to this House. Given that I have two minutes left, I can tell you a story. I had the opportunity to take a poll. The question was simple. I asked people which area of politics would they like to see their children enter: municipal, provincial or federal politics. Only 11% wanted their children to be federal members of parliament. That is the reality for Quebeckers. The most important government for them is that of Quebec, followed by municipal government. The government of Canada is last. It is important for my colleagues to understand Quebec. The federal government, for Quebeckers, is not the most important area. I can definitely understand, as I was saying at the beginning, that the six provinces and three territories with smaller populations than the former city of Montreal need the federal government. However, the people of Quebec do not. All they need is to keep more tax dollars than they send to Ottawa to create their own programs and their own plans and to make the society they desire the society of the future, focused on reducing greenhouse gases and protecting the environment and benefiting from all of Quebec's investments in hydroelectricity and wind energy.

Economic Recovery Act (Stimulus)Government Orders

November 16th, 2009 / 1:05 p.m.
See context

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, my heart goes out to the Liberals, because I know it bothers them to be in a position of voting against Bill C-51 and particularly against the home renovation tax credit, knowing full well that the government will be out there with its ten percenters just flooding their ridings, especially the close ones, with information on something that is this popular.

Could the member make some observations as to how the Liberals got themselves into this mess in the first place?

Economic Recovery Act (Stimulus)Government Orders

November 16th, 2009 / 12:40 p.m.
See context

NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, today's debate on Bill C-51 gives us the opportunity to look at what happened during the last session regarding the government's budget measures and to understand why, this time, the New Democratic Party can support a motion that relates to the previous budget. As everyone knows, our party voted against that budget.

Let me remind the House that almost exactly one year ago, on November 26, 2008, the Minister of Finance announced that the government would enjoy a budget surplus. That was rather surprising, because the Parliamentary Budget Officer, Kevin Page, had said that it was absurd to anticipate a surplus. Rather, we were headed for a major deficit.

We learned—once again—that when the time comes to look at the government's books, it is better to rely on Kevin Page, our Parliamentary Budget Officer, than on the Minister of Finance, who suffers from the Pinocchio syndrome when he has to face these realities.

So, the minister was off by a mere $60 billion. But since the Conservatives had just been re-elected—and even though they were a minority government—they included in that budget exercise a number of things which they knew would upset the opposition. Of course, what followed is now part of the Canadian parliamentary history.

I should mention, for the purpose of today's review, and because this relates directly to Bill C-51—which is why we can support it—that the Conservatives had proposed a series of measures. Among other things, they had decided to scuttle the Navigable Waters Protection Act, and the Liberals supported them. They also decided to scuttle the right of women to equal pay for equal work, and the Liberals supported them again.

When budget time came, they insisted and persisted again. A series of measures were approved, including some that are on the table today. The Minister of Transport, Infrastructure and Communities went so far as to say that the Navigable Waters Protection Act was killing jobs. He was absurdly pitting the environment against the economy, as if we could not promote economic development without adversely affecting the environment, as the Conservatives were proposing to do.

We preferred to vote against a budget that was depriving women of their right to equal pay for equal work. We decided to vote against a budget that was going to scuttle the Navigable Waters Protection Act.

What we have before us today reflects the sort of work we proposed to do at the end of August. When the Liberals withdrew from the proposed coalition that would have enabled us to give a voice to the 70% of Canadians who had voted for something other than a right-wing government, we knew what we were doing, but the Liberals decided to pull out.

Hon. members will recall that at the end of August, in a now-famous address in Sudbury, Ontario, the leader of the Liberal Party said that the Prime Minister's time was up. He was prepared to trigger an election. But he had forgotten one thing, and that was that the Liberals held only 25% of the seats in this House, which meant that they could not trigger anything but laughter.

We in the NDP decided to sit down with the Prime Minister. Our leader met with the Prime Minister and told him that if, with a minority government, he was prepared to make the House of Commons work in the interests of Canadians, we would do our part. If they did their part, we would do ours. We indicated some areas of concern, particularly regarding finance, where we thought we could work together.

First and foremost was employment insurance. With the current crisis, many people's benefits were coming to an end, and these people needed more help. We also wanted better protection for pensions.

There have been many cases where employee pensions have not been protected, the classic one being Nortel, where many people retired and thought they were guaranteed a certain amount, but learned that they would not be receiving that amount because of the crisis. Better pension protection for the future was one of our priorities, as was the issue of credit cards.

Since the NDP extended a hand on these issues, we have seen movement on employment insurance, with the announcement of $1 billion to help 190,000 families. I say “families”, because the person who receives EI benefits will of course be able to help the other members of the household.

Is that enough? The answer is no. However, it does help all regions of Canada, including Quebec, where tens of thousands of families will benefit from this significant change.

With respect to credit cards, something is just starting to happen, but because this is a federal government responsibility, the usurious rates imposed by credit card issuers will have to undergo thorough review. These rates are highway robbery and completely unacceptable.

As to retirement pensions, some good work is under way. An important report is going to be delivered in Whitehorse next month during the federal-provincial conference of finance ministers. The Standing Committee on Finance has already decided to build much stronger alliances with respect to this issue once the report is released. I think that this is a great example of an issue that both sides of the House can work on.

We have before us today a new budget measure that the New Democratic Party will vote for. But what is this measure about? What is the difference between this bill and the budget we voted against in the spring? This bill only covers measures that will actually help people. We have no problem with that. For example, the home renovation tax credit is part of Bill C-51. Amendments are being presented to improve retirement pensions.

Let us not forget that the home renovation tax credit for Quebec residents is in addition to a similar program implemented by the province. This credit is having a major impact in the sense that the black market, which tended to keep significant amounts of money out of the legal economy, is being suppressed simply because people cannot claim a tax credit without a receipt and due payment. People who are having home renovations done are insisting on hiring above-board workers. For example, in Quebec, people only want to do business with workers who have paid their dues and comply with the Régie du bâtiment du Québec's codes. All of the rules that are in place to protect the public, to protect consumers, must be followed. This protects people in two ways: it ensures higher standards of work and, fiscally speaking, protects the public. In the past, billions of dollars have flowed outside of the normal channels meant to collect funds to be spent in the public interest. That is becoming less common, which is good news.

There are some provisions that have convinced us to vote in favour of this bill, and there are more to come. As the Conservatives introduce these so-called ways and means resolutions to implement parts of the budget, we will see whether they have listened to the message delivered by the NDP leader in August. We are prepared to make this House work in the best interests of the public, and in doing so, we are preventing a fourth general election in five years. The other side seems to be positively receiving our message. The main thing we are looking at today with Bill C-51 is the implementation of the budget.

Aside from the consideration of this bill, if we look at everything that influences our economic choices, there is a profound difference between the Conservative government and the NDP: we believe that the government has been going in the wrong direction for the past nearly four years. Members will recall that before this crisis hit, before the fall of 2008, the areas of Canada with the largest concentration of companies in the manufacturing sector, Quebec and Ontario in particular, had already lost several hundreds of thousands of well-paying jobs.

Furthermore, sustainable development is not just about the environment. Our generation has an obligation to ensure that future generations do not face a disproportionate burden. We are killing not only well-paying jobs, but also jobs that carry pensions. We are replacing well-paying jobs with pensions at General Motors along Highway 15 in Blainville with sales jobs, for example, in the shopping centre that replaced the General Motors. It does not take a genius to know that the people who are now earning $12 an hour selling clothing are having a harder time supporting their families. Plus, these jobs do not have pensions.

Another debt is being passed on to future generations, in addition to the fiscal debt. On top of that, the primary growth strategy proposed by the Conservatives—I say “proposed” because it has never worked—was to introduce massive corporate tax cuts. Doing a critical analysis of this decision does not take long. I would remind the House that when the Minister of Finance announced the largest corporate tax cuts in Canadian history, he was encouraged and applauded by the Liberal Party of Canada. The Minister of Finance came back to the House and said that he never would have thought he would be able to reduce corporate taxes so quickly, but thanks to the fact that the Liberals were asking him to go even further, he proceeded faster than expected.

Canadians will remember this decision and they will tell us what they thought of it in the next election. The basic error was giving $60 billion in tax cuts to the most profitable corporations. Why did I say “the most profitable corporations” and not “all corporations”, as the government prefers to suggest? The reason is very simple. By definition, if a company does not make a profit, it cannot benefit from tax breaks because it does not pay taxes.

How did the Conservatives manage to create tax room to give tax breaks worth $60 billion? It is not complicated. They raided the employment insurance fund. I would remind the House that, once again with the culpable complicity of the Liberals, they took $57 billion from the EI fund and put the money into the government's general revenue fund. Some may argue that this does not change anything, because it was public money and it remained public money. We must be careful. Money from the EI fund was paid by every employer, every corporation and every employee. A business that was losing money or breaking even did not pay taxes and could therefore not benefit from any tax breaks, but it did in fact pay for every employee.

Even if a company is losing money, it is required to contribute to the employment insurance fund for every employee.

The Conservatives have raided the employment insurance fund to the tune of $57 billion. They transferred that money to the government's general revenue fund, which gave them the tax room they needed to provide major corporations with a $60 billion tax cut. Then, all of a sudden, we were in a global crisis. It is no coincidence that we are heading toward a $60 billion deficit this year. This same government has also come to realize that the employment insurance fund will be short $19 billion. Who will pay for this shortfall in the EI fund? It will be all the companies, all the employers and all the employees. A new tax will be imposed on all the companies, even brand new ones and those that are losing money. They will be on the hook again for this new $19 billion tax. The major corporations that benefited from the $60 billion will also have to pay, but the others, who were already struggling, will not get a penny in tax cuts and will be on the hook again. They have to cover an additional $19 billion for all Canadian companies.

That is the lunacy of the Conservatives' doctrine. When one is guided by right-wing ideology instead of facts, with no regard for the fate of the citizens and all human beings, that is when decisions like this are made. Companies like EnCana in Alberta got millions of dollars in windfalls thanks to the tax cuts. The same cannot be said for manufacturing and forestry companies in Quebec and Ontario. There have also been many job losses in the forestry sector in other provinces. Just look at New Brunswick, or British Columbia, which has suffered terribly and not received a single penny.

The Conservatives are ideologically opposed to any intervention by the state in the economy. That is what guides all of their choices.

Since World War II, we have always understood that, being the second largest country in the world, Canada needs a government that makes sure that the imbalances in the economy are corrected and that stability, which would otherwise not exist, is achieved.

Through their ideological choices, the Conservatives are destabilizing the balanced economy that has been built throughout Canada since World War II. They are giving their preference to the oil industry and to banks, to the distress of provinces where part of the economy is based on the manufacturing sector. Yes, the primary sector is important, and natural resources must be exploited, but it must be done in a responsible way.

I spoke earlier about sustainable development, which is the obligation for a government to review the social, economic and environmental impact of each decision. When people refuse to acknowledge the real environmental cost of greenhouse gas emissions caused by oil extraction in the tar sands, the profit in American dollars looks much bigger than it really is. The environmental cost should be paid for according to the principles of sustainable development, but it is not. Thus, the value of the Canadian dollar goes up, making it more difficult to export our manufactured products and aggravating the already serious difficulties in the manufacturing and forestry sectors. This is what happens when we do not have a comprehensive approach.

Between now and the next budget, we will have a chance to see the Liberal Party's true colours, given this Conservative approach. We will likely see that the Conservatives do not enjoy managing public affairs. For them, it is an anathema: they feel the government has no role to play regarding this issue. That is what allowed the Minister of Transport to say that the Navigable Waters Protection Act was killing jobs. The fact that it is utterly false does not change anything to the fact that he can actually make such a claim. That has not prevented the Conservatives, with the culpable complicity of the Liberals, to abolish the Navigable Waters Protection Act.

In the next budget, we should expect even worse, a Conservative chain saw massacre. They do not believe in targeted action by the state, and nor do they believe that the government can make choices to generate wealth. They have this doctrinaire vision to the effect that the free market can deal with all these issues. In the next budget, instead of a surgeon's knife, expect the Conservatives to use a chain saw.

The Liberals will have to face their own contradictions. Those who have the word “liberal” in their political party's name have, time after time, supported the Conservatives on despicable ideological measures such as depriving women of their right to equal pay for equal work, and abolishing an act that had been protecting Canada's navigable waters for a century.

Today, we see the result of the NDP's reaching out approach. There is nothing ideologically despicable in what is being proposed. These are measures that we can support openly and with our heads up high. The NDP has always been consistent. It is out of the question for our party to behave like the Liberals and vote to deprive women of certain rights and to destroy the environment. If such measures were on the table, the Conservatives know what would happen. An election that no one wants would take place in the midst of an economic crisis and during a flu pandemic. The fact is we do not need that this fall.

The NDP will always remain true to itself, its principles and its commitments. We cannot wait to deal with the Conservatives when they deliver their next budget.

Economic Recovery Act (Stimulus)Government Orders

November 16th, 2009 / 12:15 p.m.
See context

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

Mr. Speaker, I am pleased to speak to Bill C-51, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures.

Bill C-51 was introduced by the Minister of Finance on September 30 and referred to the Standing Committee on Finance on October 7. The members of the Standing Committee on Finance have already begun to study it.

The purpose of Part I of this bill is to amend various aspects of the Income Tax Act and the Income Tax Regulations, namely with respect to taxes for certain livestock producers, the home renovation tax credit, the first-time home buyers' tax credit and the working income tax benefit.

Part II of this bill includes provisions to amend the Bretton Woods and Related Agreements Act, the Broadcasting Act, the Budget Implementation Act, 2009, the Canada Pension Plan Investment Board Act, the Customs Act, the Financial Administration Act, the Public Service Superannuation Act and the Bankruptcy and Insolvency Act. It is clear that this bill amends a number of existing acts.

I would like to speak more specifically to the home renovation tax credit. That aspect of Bill C-51 is rather important to the Bloc Québécois. It is because of that measure in particular that the Bloc Québécois will support this bill. What is more, this concept was part of a recovery plan submitted by the Bloc Québécois in 2008. A second component of this recovery plan was also submitted to the Conservative government in April 2009.

The part concerning the creation of a home renovation tax credit was included in the recovery plan and it is extremely important. At first, the Bloc wanted to encourage people to convert their oil furnaces to more energy efficient models. When we presented that measure, the Bloc members emphasized that this would help reduce our dependence on oil, which is extremely important. We have often said that Quebec would do well to reduce its dependence on oil. Even though the home renovation tax credit does not exactly achieve that goal, it does allow certain adjustments to be made. This measure does not strictly target energy efficient retrofits, but in this economic crisis it is an effective way to stimulate the economy rather quickly.

As we have already indicated, this budget was unacceptable to Quebec. The Conservative government has clearly favoured the automotive industry concentrated mainly in Ontario, to the detriment of Quebec's forestry industry. Compared to the $10 billion given to the auto industry, only about $70 million was given to the forestry industry, which is going through a major crisis.

Yesterday I met with some private woodlot owners who earn a living by making good use of their land. These people told me over and over that they have received almost no support from the Conservative government. To pass along what they told me, they are extremely disappointed.

They really expected to see a fairer distribution of the money they send to the federal government. I am convinced that the federal government is making these people poorer, since it is doing nothing to help them. It has also left them completely disillusioned, because of the unequal measures offered to certain groups in the country, particularly in Ontario and Quebec.

Coming back to the home renovation tax credit, we definitely support that measure. As I was saying earlier, it is a way to stimulate the economy to some degree. Even though this is not only about energy efficient retrofits, many people will benefit from this tax credit, for window products in particular.

So, part of this measure will improve energy efficiency. Indeed, people will be able to use this tax credit to improve the energy efficiency of their homes by putting in new window products, that is, windows, doors and skylights. Of course this can also help people significantly improve the comfort of their homes. When properly applied, this measure can considerably decrease both household energy consumption and the greenhouse gas emissions that contribute to climate change, a major problem for all of us.

Purchasing higher quality windows, doors and skylights will ensure the right balance between cost, ease of use and maintenance. Owners of homes that are 15 or 20 years old and even older are already experiencing maintenance problems. This tax credit will allow these people to make their homes more energy efficient and easier to maintain. People often choose maintenance-free doors and windows, which improves durability, aesthetics and energy efficiency.

I insist on that because this measure has been very popular, particularly in Quebec. In my riding, many people told me that they thought it was an interesting measure and that they used it to varying degrees. It is not a cure-all for our economic woes, but it is a good support measure.

These changes will reduce energy costs. It is estimated that, for the residential sector, energy bills will be reduced by 7% to 12%. This will obviously have an interesting impact in terms of reducing greenhouse gases.

We talked earlier about the comfort of our homes. We all live in a rather difficult climate.This measure will help eliminate cold drafts in our homes, which is very beneficial. In terms of prevention, efficiency and maintenance, it will help reduce condensation. When new windows are put in, the air exchange is better, which means less condensation in the homes and less deterioration of materials. It also reduces external noises.

However, the home renovation tax credit still raises some questions.

This tax credit is supposedly effective but it does have limits. Eligible expenses are those covered by contracts completed after January 27, 2009, when the budget was tabled, and before February 1, 2010, and must be directly related to eligible renovations to an eligible dwelling or property. An eligible dwelling generally consists of the taxpayer's principal residence or that of one or more family members.

The maximum tax credit is $1,350 for one year only. Certain questions come to mind—questions that have not yet been answered—and it would be appropriate for the government to address them because they are important to citizens. Given that this tax credit was designed to temporarily encourage renovation projects or to accelerate projects already planned, should the credit not be available for more than just the one year? Should it not be extended for another year? It is an economic stimulus measure and the economy is still in trouble. According to the statistics, a great number of people are still unemployed. However, statistics do not tell the whole story. They indicate that the level of unemployment has stabilized but what goes unsaid is that many people are not eligible for unemployment benefits and are not even included in the statistics.

The government's proposed changes to employment insurance have not made it possible for many people to have access to the program. Even now barely 50% of those who pay into the employment insurance program qualify for benefits when they lose their jobs temporarily or permanently. Thus, the government's changes to employment insurance have not improved accessibility at all. Too many people are still denied benefits and government support after having contributed for many years. For all sorts of reasons, they are not eligible for employment insurance benefits.

There is also the issue of the two week waiting period. Once again, the government is refusing to make changes even though we know very well that this measure would truly support and stimulate the economy. Rather than waiting two weeks, recipients would receive benefits much more quickly and would not have to strain their resources to cover this period.

As we know, in some communities, in many places, the two breadwinners of some families, namely the father and the mother, both find themselves out of work and must wait the two week period. These people often go back to work later on during the year and then, five or six months later, they are once again laid off. This means that, two or even three times a year, these families do not have any income for a period of two weeks each time.

That is totally unacceptable and that is why the Bloc Québécois has proposed changes and keeps asking for an in-depth reform of the employment insurance system that must include the abolition of the waiting period. We must also allow these people to receive EI benefits based on their good faith, and we must stop thinking that EI claimants are crooks trying to defraud the system. Let us stop trying to find all sorts of ways to delay the payment of benefits as long as possible, because some people must wait several weeks before getting that first cheque, even though they are entitled to it.

If I am now talking about the EI system it is because of our suggestion to the government to consider extending this tax credit.

It would be important to look at the actual impact of this tax credit over a longer period of time.

There are other questions that remain unanswered, but that should still be answered. Currently, how many Canadians qualify for the proposed credit? Are estimates available?

As we know, this tax credit is non-refundable. If, strictly for home renovation, Bill C-51 proposed instead a refundable tax credit, what would be the impact on the government's total tax expenditures? What would be the pros and the cons of a refundable home renovation tax credit? Surely there must be government studies that could help get a clear understanding of the impact of such a tax credit. However, as always with this government, we are getting as little information as possible. In fact, we do not have any information. We can always try getting more information indirectly, because with this government we never get answers to our questions.

I said earlier that the Bloc Québécois submitted a proposal, in a recovery plan, for home renovation incentives to improve energy efficiency and real estate value. Are there elements in such a program which should lead us to believe that there will be a real decrease in total greenhouse gas emissions?

The government of Quebec also introduced a home renovation tax credit, but it is very different and it applies differently. The fact that the federal government did not adjust its tax credit to the tax credit already introduced by the Government of Quebec has caused some confusion among Quebeckers. Why was the credit capped at $1,350? Was this amount determined to be the optimal one to allow for the best possible economic recovery?

To what extent will this tax credit help the economy to recover in Quebec and in Canada? These are other questions for which we have not been able to get answers from the government.

Part 1 of Bill C-51 also deals with the first-time home buyers’ tax credit. The same questions must be asked. What are the advantages and disadvantages of a refundable tax credit for first-time home buyers? It would be interesting to have this information. Why has the proposed maximum been set at $750? This is a very small amount for the purchase of a first home. It would need to be much higher for housing construction to really have a stimulus effect on the economy. These are important questions to which no answer has been provided.

The Bloc Québécois supports Bill C-51 strictly because of the home renovation tax credit, which is the most important part of it.

Economic Recovery Act (Stimulus)Government Orders

November 16th, 2009 / 12:05 p.m.
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Cypress Hills—Grasslands Saskatchewan

Conservative

David Anderson ConservativeParliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board

Mr. Speaker, I listened with interest to the member's speech. I heard the first part of it the other day. He barely touched on Bill C-51. He does not seem to really want to deal with it at all, and I think there are a number of reasons why. Even today he has talked about a whole lot of other things other than the bill.

One of the main reasons he does not want to talk about it is that it contains the home renovation tax credit. This is probably one of the most popular tax reduction measures that has been brought in for years. People across Canada have taken advantage of it, but the Liberals have opposed it and voted against it.

Many people across the country are using the home renovation tax credit to renovate their homes and it is creating jobs. Given that it is as popular as it is, could he explain to Canadians, since millions of them are watching, why the Liberals are opposed to the home renovation tax credit?

Economic Recovery Act (Stimulus)Government Orders

November 16th, 2009 / noon
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Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, Bill C-51 is an act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures.

As members will know, from the debate that has gone so far, this bill touches on a broad range of subject matters, some of which I have mentioned in my previous remarks.

Before I move on to my final remarks, I would like to note that on page 6745 of the November 6 Hansard, the Parliamentary Secretary to the Minister of Finance raised a question about whether or not I had even read Bill C-51.

In my defence, I would remind the member that he chaired a briefing session for members of Parliament the day before it was tabled in this place and, as he will recall, I was sitting in the front row throughout the meeting and was one of the members asking most of the questions. He may want to withdraw the remark about my presence at the meeting or about reading the bill.

In reviewing some of the other matters that the members have talked about in debate and why it is relevant, because members have obviously raised it, was certainly to go back and remind Canadians about the November economic statement a year ago, which is where we need to understand where we came from and why we are here today.

The economic statement contained projections of surpluses and it included cuts to government spending at a most inappropriate time. It is really amazing what happened. The members will know the litany of changes we have undergone. A budget was brought in that ultimately included a fiscal stimulus through infrastructure and other members and the Liberal Party supported them. However, what did not happen was the execution of the matters in that budget. I remember raising in the House that, even with regard to the last fiscal year, some $3 billion of infrastructure funding did not get out the door. It was approved project by project, ready to go. We talked often about having shovel ready projects so that the money could get out quickly so we could save current jobs. That was one of the key elements of the infrastructure program.

We did not get the money out. We let the money lapse, which is a shame because it just goes back into the treasury, even though it was already announced, promised, funded and ready to go. Talk about shovel ready, that was it and they let it go.

We also know it is the same situation with regard to the current program of infrastructure spending. Only 10% of the projects that were submitted for funding are underway and have shovels in the ground. It is the government's term “shovel ready”.

In my own city of Mississauga, I just looked at the listing from the manager of the City of Mississauga who keeps the members of Parliament informed. There are a large number of projects in the sixth largest city in the country, Mississauga. However, in my own riding there are none that have any shovels in the ground yet, but they do have signs everywhere announcing them. It is really a shame because, as we have seen with the unemployment situation, we have gone from having the lowest unemployment rate in 30 years to now having the highest in our history. We are approaching 9% and expectations are that it could hit 10%. It means that we are still losing jobs when the stimulus program should have been saving those jobs, should have been creating those jobs through the infrastructure programs and through other initiatives. It has not. It has been a terrible execution.

It just strikes me that the Prime Minister once mused that Canada did not need to get on side in terms of stimulus, in terms of this overall so-called global financial crisis, because we are a trading nation, which means that other countries that are doing all the stimulus spending are creating an economic activity and they will trade with us and we will benefit from their economic spending.

However, we also need to do our share but now, instead of having a surplus in the current fiscal year, we are now up to a projected deficit of some $60 billion for Canada. It is outrageous that the current government has allowed this to happen.

The Prime Minister says that his government will not raise taxes and it will not cut government spending, particularly in transfers to the provinces for health care and other things. The Parliamentary Budget Officer says that we are in a technical recession. This means that we cannot grow out of it.

Projections show that even five years hence Canada will still be running a $19 billion to $20 billion deficit. This should be of concern to Canadians. This shows the government is incapable of managing the financial matters of the country. The government's responsibility is to be fiscally responsible. The Conservatives have spent all their time advertising things that have not happened.

I have some grave concerns about the government's ability to do the job. I have concerns about the EI commission, which the government wants to start up in 2010, with $2 billion in seed money. After that, all the premiums would go into the commission and all the expenses would come out of it.

With an unemployment rate that high, it is very clear to me, and I am sure to all Canadians, that the commission will operate at a deficit itself, and I hope members will ask about this. It will not have the resources to pay the employment insurance benefits to which Canadians are entitled. The government will have to make further transfers into the commission. It shows how incompetent the Conservatives really are.

(The House resumed at 12 p.m.)

The House resumed from November 6 consideration of the motion that Bill C-51, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures, be read the third time and passed.

Economic Recovery Act (stimulus)Government Orders

November 6th, 2009 / 1:20 p.m.
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Conservative

Ted Menzies Conservative Macleod, AB

Madam Speaker, I rise on a point of order. At the risk of sounding repetitive, the hon. member is talking about the Parliamentary Budget Officer. If he has read Bill C-51, he would know that the Parliamentary Budget Officer is not even referenced in it.

With all due respect, I wonder if the hon. member has even mentioned Bill C-51 in his comments. There is some relevance. Is it because the Liberal Party has no position on the bill? Is that why those members are skirting around it, not even speaking to it or against it?

Economic Recovery Act (stimulus)Government Orders

November 6th, 2009 / 12:45 p.m.
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NDP

Libby Davies NDP Vancouver East, BC

Madam Speaker, I am pleased to rise in the House today to speak to report stage of Bill C-51, which, ironically, is called the economic recovery act (stimulus).

The NDP has been supporting the bill because it does contain some significant measures that were in the budget that we approved last spring but were never actually implemented. They are now included in this bill, and I will go into that later. I did want to reflect on the fact that this is called the economic recovery act and, as we heard today, there was not good news for Canadians, in terms of the number of people who are unemployed.

We know that over the last year we have had a net loss of about 400,000 jobs in Canada. That is very significant. However, the numbers today show us that there has been a further increase of 43,000 to 44,000 people who are unemployed and the heaviest losses were in B.C. and Alberta, being 13,000 and 15,000, respectively.

I raised this today in question period because I guess the one thing that really bothers us is that we have seen the so-called economic action plan and the stimulus program from the current government and yet, we continue to see these heavy losses and erosion of jobs. From the numbers that we saw released today, it is particularly difficult for women and young people. Many of the jobs that were lost were part-time jobs. That means that they were people who were already having a really hard time dealing with this economic crisis. They may be people who will not qualify for EI.

The NDP has spent a lot of time in this House bringing forward very substantive proposals. In fact, we have 12 bills concerning reform of the EI. That just shows how bad the program is. This is a program that was designed to help unemployed people and yet, we have 12 different bills on different aspects of the program because we think it so badly needs to be fixed.

So, for those unemployed folks who, over the last month, lost their jobs, just think about the impact that would mean. They might have had a part-time job in the first place or maybe they were a young person, or a woman contributing to the family's income, or a lone parent, and they have to face the fact that they cannot even rely on employment insurance.

I think it is a very serious and dire situation for so many Canadians. Juxtapose that against all of the rhetoric that we hear from the government side. We are told that the worst of the recession is over. We are told that its economic stimulus plan is working. We are told not to worry about it, that the government is going to take care of things. Yet, these jobless numbers keep rising and the impact on our local communities keep mounting. I think that we are facing a very serious situation.

I know that yesterday in question period my colleague from Winnipeg Centre had one of the doorknocker propaganda pieces that the government has been distributing, we understand, to 3.5 million households, concerning the home renovation tax credit.

That is one of the measures that is contained in this bill and is actually one of the reasons we are supporting this bill. It was a measure announced in the last budget, but it was not actually in the budget implementation bill. For some strange reason, it was left behind and then had to be introduced later through a ways and means motion, and now it is in this bill. There is no doubt that it is a very popular program. We see it advertised on TV by home improvement centres and there is probably very good awareness about that program.

There are two things here to note.

First, why is it that the Conservative government would then spend, presumably, millions of dollars on further propaganda messaging and advertising about the program when it is already very well known? In fact, people can receive information at building improvement and home improvement centres.

There has been so much emphasis on the politicization of the economic stimulus program, whether it is the oversized cheques that had the Conservative logo or individual MPs signing these cheques. These things are pretty outrageous and I think people feel pretty cynical about it.

The question from the member for Winnipeg Centre really highlighted that the government will leave no stone unturned when it comes to promoting itself and its political message, but when it comes to really, truly helping people, really digging in and finding out what is wrong or what needs to be done, the government kind of shuffles it along and says it is doing a good job.

On the home renovation tax credit, we do support it. As far as it goes, we do support it and there is no doubt that there has been a lot of pickup on the program, but we ask the question, why does it not go further? Why was it not linked to a broader green energy retrofit program, particularly for low income Canadians? There are many Canadians right across the country who live in housing that is substandard. Their heating systems are very poor. They are not energy efficient.

These are the people who need help. These are the people who would have welcomed a broader program that would have helped them maybe with some other kinds of incentives beyond a tax credit. The fact is that many people cannot take advantage of this program because they may not have the money to actually spend on that home renovation.

I know, for example, that there was some money in the economic stimulus program to help housing co-operatives. Many co-ops that were built in the seventies and eighties are facing envelope failures. Some of them were not well constructed. They are certainly not energy efficient, and although there was some money earmarked in that budget to assist those co-ops, we do know that the demand and the applications that have gone in have far exceeded what is actually available. There is a very good example of where this home renovation tax credit program actually could have been part of a much broader program that would really tackle this major question of energy efficiency and housing affordability in this country.

Yesterday at the HRSD committee, I appeared as a witness before that committee in support of my bill, Bill C-304, which calls for a national housing strategy, something that we do not have in Canada, which is really quite unbelievable. We are the only industrialized country that does not have a national housing strategy.

In putting forward this idea for a framework and a strategy for housing and leadership from the federal government, we come back again to this question of needing to have a coordinated and comprehensive approach to housing in this country. There are something like four million Canadians who are in housing insecurity. They are either paying too much for their housing, living in very substandard housing, facing eviction or one paycheque away from being on the street, or it might be all of the above. They might be in housing that is overcrowded and very inappropriate for a family situation. Certainly, that is a huge issue for remote aboriginal communities on reserve, where we have seen the most appalling conditions for aboriginal people in this country.

There is no question that we need a national housing strategy, that we need leadership from the federal government, but it is not only a question of good public policy. It is also a question of very sound economic policy, and in my mind, if we had a really good housing supply program in this country, something that we have talked about for years and that we have suffered from because we do not have it, it would be a huge economic stimulus. Generally, building housing creates good jobs for carpenters, electricians, plumbers, drywallers, architects, landscapers, and the list goes on.

The question of housing affordability and generating the comprehensive program with leadership from the federal government would be something that would be a really significant economic and social investment in the future of our country. We would actually be helping people. There is no question that having housing security and knowing that one's housing is affordable, accessible, safe and appropriate is one of the most basic things in our lives. If we do not have that, we know how hard it is to do anything else such as going to school, going to work, raising kids, and knowing what is going to happen at the end of the month.

That is one of the reasons I wanted to focus on that. It really bugs the hell out of me that there is this very small home renovation tax program that is popular and yet so much more could have been done, if we only had a government that was seriously focused on a substantive economic stimulus program that would actually help people.

There are other provisions in Bill C-51 that we are supportive of. The home renovation tax credit is one. The first-time home buyers' tax credit is another. The revenue sharing agreement with Nova Scotia is another one. Members have already raised the issue of drought relief for livestock owners.

There are also some provisions around pensions and some fairly minor adjustments in terms of pension changes. I want to spend a few minutes on this. This has been the other key substantive proposal advanced by the NDP.

We are very worried about what is happening to seniors in Canada. There are seniors who are living below the poverty line. They depend on old age security and the guaranteed income supplement. Even those seniors are still living below the poverty line, particularly if they live in urban areas where they do not have good housing. One can see how it relates back to affordable housing again.

I am very proud of the fact that the NDP has made very substantive proposals to reform the pension program just as we have done for EI. We see these as the basic foundations of what quality of life is about in Canada, and what human dignity means in this country. As Canadians, we tell ourselves that we live in a fair-minded country; we live in a country where there is equal opportunity, where there is no discrimination and where everybody has the right to use their own human potential, yet, we have seen so much over the last couple of decades.

We have seen a growing gap between wealth and poverty. We have seen the incomes of CEOs rise and rise, sometimes in an utterly obscene way. Just look at the pension investment board and the millions of dollars in bonuses that are being paid out. It is unbelievable. I am sure that those people are doing their jobs, although one could argue that the pension programs have not been well managed. They get these massive bonuses and yet, on the other side, there are people who are really hurting and are having a tough time getting by every month.

The pension system itself is something that I think more and more people are understanding is in serious trouble, whether it is a private pension program, or whether it is a senior who is dependent on OAS and GIS. We have seen the situation with Nortel here in Ottawa and what has happened to those people who paid in good faith into their pension plan only to now be terribly worried about whether or not they will ever be able to collect their pension or, if they were on long-term disability, only to find out that their support for that may be in jeopardy.

The proposals we have put forward are very substantive in terms of significant increases to the guaranteed income supplement and say up front that no senior in this country should be living in poverty. When one has worked for decades, whether it is in paid work or unpaid work, when people have contributed to this country, they should at least be assured that they have enough money in their retirement years to live in a decent way. Nobody here is talking about luxury or affluence. We are talking about the basic necessities of life.

The NDP did have a motion that was approved in the House last June. We did a lot of research on the proposals that we have advanced. Our member for Hamilton East—Stoney Creek travelled across the country, talked to seniors and got tons of feedback. He heard and did wonderful things.

It is unfortunate that this so-called economic recovery act that we are debating today is so minuscule. It does not do the job in terms of where people need to get that support from programs, services and investment in our economy. There are other provisions in the bill. One of the provisions concerns the CBC.

How many times have there been questions, at least from our side, on the future of the CBC? This is an iconic institution in this country. It was fighting for its life in terms of financing and asking for bridge financing. We raised that issue over and over again in the House. The reply from the heritage minister was more of a brush off. We are glad to see in the bill some recognition of the financial situation facing CBC and that it will be able to have some of that bridge financing, which we called for and which it was seeking. It is obviously something that is very important to the financial stability of the institution.

I would like to speak about what the Conservative government is doing with respect to economic recovery. I am from British Columbia. I represent the riding of Vancouver East, which by and large is a low income riding. People really do struggle. They do not actually ask for a lot.

I am always amazed when I go out in the community. I hold travelling community offices. People come forward to tell me what is going on in their lives. I am always amazed at how resourceful people are. People are struggling to survive with very few resources, whether it is their housing situation, a work situation, trying to find affordable child care, or a student going to post-secondary education who is struggling with student loans and tuition fees. I am really amazed at how people get it together and keep going, but we can see how hard it is and how stressful it makes people's lives.

It has been pretty rough in B.C. We have seen the re-election of the Liberal government under Gordon Campbell who promised so many things but all he has done is attack workers, rip up collective agreements, allow privatization of health care and has not done anything to support a better child care program. Then kind of the worst happened. After the election, we suddenly learned that B.C. was going to be hit with the HST. The firestorm that has created in my province has just been unbelievable. It has crossed the political spectrum. Former premiers, such as Bill Vander Zalm, business people, small business people, the restaurant association, the labour movement, certainly the provincial NDP and hundreds of thousands of regular folks in B.C. are signing petitions.

Some of the polls that have been done show there is 80% opposition to the imposition of the HST. It is not just the HST itself, which is really a tax shift, but it is a shift from what corporations have paid on to consumers. I do not have the full list of things that it covers in front of me, but I know it includes newspapers, magazines, movie theatre tickets, haircuts, funerals, vitamins, baby diapers, food and clothing. The restaurant association has estimated that for restaurant meals alone the extra cost will be $694 million in B.C.

One issue is the tax itself. It is a regressive tax. It is a shift from corporations on to individual consumers. It is also the manner in which it was done. People are really outraged that during the provincial election there was no discussion of it. In fact, people were told there would be no more tax increases. Yet somehow after the election this issue suddenly started to appear.

We have been asking questions every day. We have been trying to find out when the negotiations took place and what negotiations took place between the federal and provincial governments. We are still trying to find that out. I think people in B.C. would be very interested to know when it was that those negotiations began to take place.

It is sort of ironic that on the one hand we have this bill before us today that promises economic recovery and yet on the other hand we have a Conservative government that is slapping people in B.C. with the HST. In fact, the Conservatives are running from it. They are trying to claim that it is not their problem, that the decision is up to B.C.

We know it originated with the Conservative government. We know it was in the federal budget. We know that the finance minister has actually been campaigning and advocating for this. We know that the Liberal members have been lining up with it as well. It feels like a slap in the face to people in B.C. who are going to feel the impact of this increased tax on the everyday items that they need to purchase.

It is the most terrible timing to think about bringing in this tax during an economic recession. The NDP has been saying loud and clear that this HST proposal must stop. My guess is that the opposition to it will continue to grow in B.C.

Economic Recovery Act (stimulus)Government Orders

November 6th, 2009 / 12:40 p.m.
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NDP

Don Davies NDP Vancouver Kingsway, BC

Madam Speaker, the New Democrats are proud to support Bill C-51 because it does a number of positive things for Canadians. It brings in the home renovation tax credit. It provides a tax credit for first-time home buyers, a particularly important measure in Vancouver where I come from, where real estate is out of reach for so many young people. It has drought relief for livestock owners.

I think this legislation shows what can happen when we use public policy in a positive way to make lives better for Canadians.

I wanted to ask my hon. colleague about CPP. The Canada pension plan exists right now as an easy way for us to improve the income security for seniors. The administrative structure is there. By adding just a little under 2% in contributions from employees and employers, we could double the pension security for our seniors. We think that this is a wonderful way that we can help our seniors.

I wonder if my hon. colleague has any comments on bolstering the Canada pension plan so that Canadians from coast to coast can have more secure futures.

Economic Recovery Act (stimulus)Government Orders

November 6th, 2009 / 12:35 p.m.
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Bloc

André Bellavance Bloc Richmond—Arthabaska, QC

Madam Speaker, my answer to the member's question is yes. I have the French version right here. Bill C-51 includes a measure that “extends the existing tax deferral available to farmers in prescribed drought regions to farmers who dispose of breeding livestock because of flood or excessive moisture and sets out the regions prescribed either as eligible flood or drought regions in 2007 to 2009”. This measure should be permanent. We support Bill C-51 because it will enable more farmers to benefit.

Currently, there is a disaster relief program in the agriculture policy framework, but many more methods remain to be understood and implemented. That is why we are still trying to make sure that farmers will really benefit from this disaster relief program. These are known as “acts of God” or, in French, actes de Dieu. Obviously, as my colleague pointed out, we cannot predict droughts or floods.

As members of Parliament, it is our duty to be able to immediately and very quickly come to the aid of people who face unexpected weather-related problems. This could also include problems related to illness among the animals or parasites in the crops. We must be able to help people very quickly. For example, there was the case of avian flu in British Columbia when we did not react quickly enough. The Standing Committee on Agriculture and Agri-Food even had the opportunity to visit some of the provinces where people had lost their herds to bovine tuberculosis. The criticisms we heard from these people was that the government did not react fast enough to help them after the problem was discovered. In fact, in these cases, everything can be wiped out very quickly.

Obviously, the Standing Committee on Agriculture and Agri-Food has unanimously called for corrective action to be taken. We are always looking for ways to help our farmers. I think that this measure from Bill C-51 is a step in the right direction that can help the victims of droughts or floods.

Economic Recovery Act (stimulus)Government Orders

November 6th, 2009 / 12:35 p.m.
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NDP

Claude Gravelle NDP Nickel Belt, ON

Madam Speaker, I have a question for the Bloc Québécois member. I would like to read one line from Bill C-51:

Provisions for income deferrals for farmers of breeding livestock in drought conditions and designations for regions where this applies.

We do not know when droughts will occur in Canada. We can have one good year followed by two bad ones. It varies enormously from region to region.

Does the Bloc member believe that this program should be permanent?

Economic Recovery Act (stimulus)Government Orders

November 6th, 2009 / 12:15 p.m.
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Bloc

André Bellavance Bloc Richmond—Arthabaska, QC

Mr. Speaker, indeed, I was once again interrupted on Friday by question period. The questions were excellent. However, given the government's answers, I have to say that we might have been better off listening to speeches about bills.

However, question period did give me an opportunity to hear the Minister of Public Works and Government Services say that the Bloc Québécois is always against everything. He was not listening right before question period. I had just said that the Bloc Québécois would support Bill C-51. We are completely in favour of this measure, the act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures.

I would like to summarize what I said during the first three minutes of my speech. I said that Bill C-51 would implement the renovation tax credit. That was one of the proposals in the recovery program that the Bloc Québécois released when Parliament resumed. Every party in the House but the Conservative government recognized that we were in the middle of an economic crisis.

During the 2008 election campaign, the Conservative Party denied the possibility that such an economic crisis would hit us here, even though our American neighbours—with whom we conduct a great deal of trade, of course—were in the midst of a major crisis, which unfortunately, is still not completely over.

Everyone knew that the whole world was facing an economic crisis and that Canada, Quebec and all the provinces would inevitably be affected. No one was happy about that. However, we needed to take off our rose coloured glasses and prepare for the worst, and also bring in concrete, effective measures to deal with and mitigate the effects of the crisis.

That is why the Bloc Québécois presented such a plan, which was, I might add, commended by the Minister of Finance. The minister said the Bloc Québécois was the only party in the House to bring forward concrete measures, and he thanked us for doing so. However, thanking us is as far as he went, given that, when he presented his budget, there was not much left of the important measures the Bloc had developed and proposed.

Bill C-51 also introduces a first-time homebuyers' tax credit. That is a good measure that was also proposed by the Bloc Québécois in our most recent election platform, during the election campaign that ended on October 14, 2008.

Bill C-51 implements Canada's international commitments to the International Monetary Fund, which were signed in 2008.

It also includes some other measures, such as the temporary home renovation tax credit, the first-time home buyers' tax credit and an increase in the tax relief provided by the working income tax benefit.

What I also liked about Bill C-51, since I am the Bloc Québécois critic for agriculture and agri-food, is that it will also extend the existing tax deferral available to farmers in prescribed drought regions to farmers who dispose of breeding livestock because of flood or excessive moisture, and it will designate the eligible flood or drought regions between 2007 and 2009.

We are not talking about a measure that will make all our farmers rich overnight, but this adjustment will prove very beneficial when a catastrophe hits our farmers. In addition, this bill amends the customs tariff to relax the conditions relating to temporarily imported shipping containers.

These are the main measures contained in Bill C-51.

I heard the Parliamentary Secretary to the Minister of Finance just now and at first reading of the bill and also when the home renovation tax credit was announced, touting this as the eighth wonder of the world and that the Canadian and Quebec economies would get back on track with this home renovation tax credit.

However, they should not exaggerate. I realize that this government tends to use every opportunity for the marketing and branding of the Conservative Party, with its logo and all the rest.

This measure alone will not put an end to the economic crisis and solve all the problems that have arisen in recent months and years. They should not exaggerate and consider it the be-all and end-all.

There a number of things missing from the government's deficit control plan and we can discuss these in the next few minutes.

The federal government's comprehensive plan to fight the recession is incomplete and poorly targeted. However, given that the measures in Bill C-51 are good for Quebec, the Bloc Québécois, in keeping with its responsible approach, will support this bill.

With respect to the home renovation tax credit in particular, as I was saying, in the first phase of our recovery plan, we had proposed introducing a similar home renovation tax credit. We emphasized the conversion of oil furnaces to more energy efficient equipment. We had a very specific plan for decreasing our dependence on oil.

This measure, in addition to helping reduce our dependence on oil would also have rapidly injected money into the economy. The measure we are debating today, the government's Bill C-51, does not specifically target energy efficient retrofits but is still an effective means of quickly stimulating the economy.

The government could have gone farther, as I said, and introduced a real environmental plan that would have stimulated the economy while reducing greenhouse gas emissions and decreasing our dependence on oil.

The first-time home buyers' tax credit is also interesting, because in our 2008 election platform, we had proposed a tax credit for first-time home buyers and called for such a program. The measure the government has introduced is not as generous as what we proposed, but we feel that it is a step in the right direction. That is why we also support this measure.

Buying a home is a big step for many families. It allows homeowners to build equity and benefit from the appreciated value of their home. Quebec is significantly behind the rest of Canada in this area. Many young families often have a hard time saving for a down payment to purchase their first home. In addition, since most people who are active in the workforce see their income increase over time, they often have to wait a while before they can purchase a property.

The Bloc Québécois is proposing that the government give interest-free loans of up to $10,000 for first-time home buyers. That would have been a very significant measure, although, as I said, the tax credit is clearly a step forward.

I spoke earlier about the last election campaign. I imagine that many of my colleagues in this House and many candidates in the last election had the opportunity to meet with real estate agents, because they demanded action on the issue of first-time home buyers. While I was campaigning, I had the chance to meet with people throughout Quebec, including people in my own riding. We talked to them and listened to their suggestions. This proposal that first-time home buyers receive interest-free loans of up to $10,000 was very well received by the people I met with. They felt it could be an efficient and effective way to help people buy their first home. Real estate agents were very much in favour of this measure.

If this measure were implemented, it would complement the tax credit proposed by the government in Bill C-51 and make it easier for people to purchase their first home. Then we would have a comprehensive home buyers' program.

In terms of the economic measures presented in the budget, some of which would be implemented by Bill C-51, a bill that would put the tax credits into effect, as I started out saying just after question period, the government denied that there was an economic crisis during the last election campaign. Conservative members unfortunately showed up empty handed for the economic statement last November, which sparked a crisis. I will not dwell on it, but we came very close at one point to having a coalition government, and to returning to the polls.

They finally presented some measures, even if they were not complete, as I was saying.

We did our homework. We presented a stimulus plan that had four objectives: tighten the social safety net and restore confidence to the public, which was experiencing—and still is—an economic crisis; stimulate employment and investment; support Quebec and the provinces; and stimulate strategic spending on things like measures to reduce oil dependency.

The OECD suggested that countries with the means to do so should provide income support for workers who lose their jobs. The best way to do that, of course, is through the employment insurance system. Economists agreed that one of the best ways to stimulate the economy was to help the least fortunate and in particular, to help those who, unfortunately, because of the economic crisis, lost their jobs. Needless to say, in the forestry sector, for example, people would have benefited from more extensive and flexible measures regarding employment insurance.

We suggested improving the employment insurance system by making it easier for people who lose their jobs to collect benefits. Our proposed changes would have enabled 148,000 more people to collect benefits every year. If we eliminate the waiting period, which is something the Bloc Québécois and other parties have been calling for for a long time, people will not have to wait 14 days for their cheques. We also suggested helping the most vulnerable with an investment of about $6 billion to help seniors by increasing the guaranteed income supplement by $110 per month. And we suggested helping middle-class families by doubling the GST credit for 2009.

We know that the government has put economic stimulus measures in place. A lot of money was invested to help Ontario's auto sector. We were never against helping that sector, but according to the statistics, it is clear that the government helped Ontario at the expense of Quebec and the other provinces, but especially at Quebec's expense because its forestry sector got nothing. At any rate, there is many a slip twixt cup and lip when it comes to what Ontarians got. As of now, 100% of the $9.7 billion—nearly $10 billion—in direct federal cash for the auto industry has been spent. About 80% of the $70 million allocation has been spent developing new markets for the forestry industry across Canada. There is still a huge difference between $10 billion in support for auto workers and $70 million for the forestry sector across Canada. Moreover, while 100% of the auto sector's money has been spent, 20% of the amount announced for the forestry sector has not yet been disbursed.

So, for its economic recovery plan, it would have been in the government's interest to listen to Quebec, the provinces, the opposition parties, unions, workers and the National Assembly of Quebec. They all made urgent requests to ensure that a real economic stimulus package would be introduced, particularly for the manufacturing and forestry sectors. The Quebec forestry industry employs over 88,000 workers and is an economic driving force in many regions of Quebec.

I was talking about employment insurance earlier. We heard some good news yesterday. Unfortunately, it does not have to do with the unemployment rate. There was some bad news on that, since it increased. The good news was that here in this House, a majority—except the Conservatives, unfortunately—voted in favour of Bill C-308 introduced by my colleague from Chambly—Borduas. That bill will now go to committee. It includes several measures for a complete overhaul in the context of an economic stimulus plan. It would have been great if the government had supported those changes, which are more comprehensive than the piecemeal changes it wanted to make in several different bills.

The Bloc Québécois bill proposes improving access to the system and establishing a 360-hour threshold for everyone, which would make it easier for women and young people, who are often the most likely people to lose their jobs, as well as people with unstable jobs, to access benefits. In addition, Bill C-308 proposes a benefit rate increase from 55% of earnings to 60%.

It also recommends amendments that would give self-employed workers access on a voluntary basis to all employment insurance benefits, unlike the Conservatives' Bill C-56, which offers self-employed workers access to special benefits only. Our bill contains measures that are not only practical, but comprehensive and very effective in helping the unemployed. This is what the Conservative government could have done.

We have no problem supporting Bill C-51. It is hard to be against motherhood and apple pie, even if the pie is not all there. This bill provides one piece of the pie that will help us, namely, tax credits, including the home renovation tax credit. I cannot say that people are lining up at my three constituency offices to ask for information about these measures, but I would be lying if I said that I had not answered any questions from my constituents about this tax credit.

Obviously, we are pleased to provide them with information, and some people I know have begun to consider applying for this tax credit. That is why we are agreeing to promote this type of measure by voting in favour of Bill C-51.

The House resumed consideration of the motion that Bill C-51, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures, be read the third time and passed.

Economic Recovery Act (Stimulus)Government Orders

November 6th, 2009 / 10:55 a.m.
See context

Bloc

André Bellavance Bloc Richmond—Arthabaska, QC

Madam Speaker, like last Friday, I see that I am coming just before question period. I would not want this to become a habit, but question period is obviously very, very important. I will be back after question period to finish my speech on Bill C-51, which the Bloc Québécois supports. It is An Act to Implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures.

I would like to preface my remarks by explaining a bit about what Bill C-51 entails. As I said, this bill implements the renovation tax credit. We in the Bloc Québécois had come up with similar proposals in our two recovery plans. When Parliament resumed, the House talked about the economic recovery plan, which contained provisions about implementing a renovation tax credit. Our actions are always consistent with our demands.

When the government introduced this bill, we supported it. Often, our adversaries say that the Bloc Québécois is all about blocking legislation and is opposed to all measures. We hear that regularly, especially during election campaigns, but it is totally false. When a measure is good for Quebec, as this bill is, of course the Bloc Québécois will support it.

However, when Parliament resumed in the fall, there was this election psychosis. The leader of the Liberal Party decided that Canadians and Quebeckers suddenly wanted an election, even though he himself had said not long before that Canadians needed an election like they needed a hole in the head.

Journalists, who always get a bit excited at such times, asked the Bloc what it was going to do in response to the economic measures that had been put forward. The Bloc did what it has always done: it voted in favour of the measure, because it was good for Quebec. A bit later, when the Liberal Party introduced a motion saying that the House had lost confidence in this government, we supported it, at the risk of triggering an election, because we could not say that we had confidence in this government.

We are guided by consistency, and we acted accordingly. Now, there is less election panic, because the Liberal leader realized that people did not want an election. I believe that the public felt the same way a month earlier. In any case, let us look at Bill C-51, which implements a tax credit.

I will come back to this later, Madam Speaker.