Bill C-47 (Historical)

Sustaining Canada's Economic Recovery Act

A second Act to implement certain provisions of the budget tabled in Parliament on March 4, 2010 and other measures

Part 1 of this enactment implements a number of income tax measures proposed in the March 4, 2010 Budget. In particular it
(a) allows for the sharing of the Canada Child Tax Benefit, the Universal Child Care Benefit and the Goods and Services Tax/Harmonized Sales Tax credit for eligible shared custody parents;
(b) allows Registered Retirement Savings Plan proceeds to be transferred to a Registered Disability Savings Plan on a tax-deferred basis;
(c) implements disbursement quota reform for registered charities;
(d) better targets the tax incentives in place for employee stock options;
(e) expands the availability of accelerated capital cost allowance for clean energy generation;
(f) adjusts the capital cost allowance rate for television set-top boxes to better reflect the useful life of these assets;
(g) clarifies the definition of a principal-business corporation for the purposes of the rules relating to Canadian Renewable and Conservation Expenses;
(h) introduces amendments that are consequential to the introduction in 2011 of new International Financial Reporting Standards by the Accounting Standards Board; and
(i) amends the Canada Pension Plan, the Employment Insurance Act and the Income Tax Act to provide legislative authority for the Canada Revenue Agency to issue online notices if the taxpayer so requests.
Part 1 also implements income tax measures that were previously announced regarding:
(a) rules to facilitate the implementation of Employee Life and Health Trusts, released in draft form on February 26, 2010;
(b) indexing of the working income tax benefit announced in the 2009 Budget;
(c) technical changes concerning TFSAs announced on October 16, 2009; and
(d) an amendment to the rules regarding labour sponsored venture capital corporations that are consequential to the introduction of TFSAs.
Part 2 amends the Air Travellers Security Charge Act, the Excise Act, 2001, the Excise Tax Act and the New Harmonized Value-added Tax System Regulations to provide legislative authority for the Canada Revenue Agency to issue online notices if the taxpayer so requests.
Part 2 also amends the Air Travellers Security Charge Act, the Excise Act, the Excise Act, 2001, the Excise Tax Act, the Brewery Departmental Regulations and the Brewery Regulations to allow certain small remitters to file and remit semi-annually rather than monthly.
Finally, Part 2 amends the Air Travellers Security Charge Act and the Excise Tax Act to extend the protection from civil liability claims that is already provided under the Income Tax Act and other federal statutes to agents of the Crown who collect the Goods and Services Tax/Harmonized Sales Tax and the air travellers security charge in intended compliance with their statutory obligations.
Part 3 amends the Federal-Provincial Fiscal Arrangements Act to facilitate the sharing of taxes under Part I.01 and Part X.5 of the Income Tax Act with provinces and territories.
Part 4 amends the Bank Act and the Financial Consumer Agency of Canada Act to require that banks belong to an approved external complaints body and to authorize the Governor in Council to prescribe the approval requirement for that body. The amendments also assign the responsibility for managing the approval process and supervising the approved external complaints bodies to the Financial Consumer Agency of Canada.
Part 5 amends the Canada Disability Savings Act to allow a 10-year carry forward of Canada Disability Savings Grant and Canada Disability Savings Bond entitlements.
Part 6 amends section 11.1 of the Customs Act to exempt from the User Fees Act fees that are charged for expedited border clearance programs and that are coordinated with international partners.
Part 7 amends the Federal-Provincial Fiscal Arrangements Act to implement the total transfer protection for 2010-11, to set out the treatment of the one-time transfer protection payment under the fiscal stabilization program, update legislative references made in the fiscal stabilization provisions and give greater clarity to the calculation of the fiscal stabilization payment.
Part 8 amends the Office of the Superintendent of Financial Institutions Act. In particular, the Act is amended to
(a) harmonize the assessment of costs associated with the administration of the Pension Benefits Standards Act, 1985 with the regime in place for the assessment of costs associated with the administration of laws governing financial institutions; and
(b) allow the Superintendent to remit assessments, interim assessments and penalties and to write off certain debts.
Part 9 amends the Pension Benefits Standards Act, 1985. In particular, the Act is amended to
(a) authorize the Minister of Finance to enter into an agreement with the provinces respecting pension plans that are subject to the pension legislation of more than one jurisdiction;
(b) authorize the Minister of Finance to designate an entity for the purposes of receiving, holding and disbursing the pension benefit credit of any person who cannot be located;
(c) permit information to be provided in electronic form, including information provided by the administrator of a pension plan to members or to the Superintendent;
(d) allow the administrator of a pension plan to offer investment options with respect to accounts maintained in respect of a defined contribution provision or accounts maintained for additional voluntary contributions;
(e) provide rules regarding negotiated contribution plans;
(f) require consent of a member’s spouse or common-law partner before the transfer of the member’s pension benefit credit to a retirement savings plan; and
(g) authorize the Superintendent to direct the administrator of a pension plan that is subject to the pension legislation of more than one jurisdiction to establish a separate pension plan for certain members, former members and survivors.

Sustaining Canada's Economic Recovery Act

[Lawrence Cannon, Conservative, Pontiac, QC]

moved that the bill be read the third time and passed.

[Andrew Saxton, Conservative, Parliamentary Secretary to the President of the Treasury Board]

Mr. Speaker, thank you for the opportunity to start third and final reading of the sustaining Canada's economic recovery act. Before continuing, let me quickly thank the House of Commons finance committee for its timely consideration and adoption of this important legislation.

The sustaining Canada's economic recovery act, which includes numerous initiatives from budget 2010, is a key element of Canada's economic action plan, a plan that has helped ensure that Canada has weathered the recent global economic storm better than all other countries in the G7, a plan that has given the Canadian economy a $62 billion shot in the arm when it needed it the most, a plan that was well designed.

As Auditor General Sheila Fraser, following her examination of Canada's economic action plan, recently concluded, “I would give the government high marks.... [T]hey paid a lot of attention to managing the risks” and they deserve “a lot of credit” for that.

It is a plan that worked and is still working.

Indeed, listen to what prominent Canadians have said about it.

Bank of Montreal economist Doug Porter exclaimed:

Canada has arguably had one of the most successful stimulus programs in the industrialized world....

Federation of Canadian Municipalities president Brock Carlton, has applauded:

the economic action plan has been very successful

Canadian Public Works Association president Darwin Durnie has remarked:

Conceived in response to the chaos of the global economic recession, the Economic Action Plan has saved jobs and generated economic activity

Likewise, our continued economic growth also clearly shows that Canada's economic action plan is working and that our Conservative government is on the right track on the economy.

Let us look at the facts: Canada's economy has grown in 11 of the past 12 months; Canada has created almost 430,000 net new jobs since July of last year; and Canada is projected to have the strongest economic growth in the G7 over the next few years by both the IMF and the OECD. Little wonder countless independent experts and observers have been near unanimous in their praise for Canada's economy.

Canadian Federation of Independent Business president Catherine Swift has noted:

Canada is currently faring better economically than most other developed countries around the world

TD Bank Financial Group chief economist Craig Alexander, has declared that Canada's “economic performance was better than any other industrial nation”.

A recent Victoria Times Colonist editorial has heralded:

far from needing a lecture on financial management or sound public policy, Canada should be delivering one.... Our handling of the economic downturn has been an example for the world.

Even the Toronto Star, no friend of our Conservative government, has grudgingly admitted:

Canada has come through the worst financial crisis since the Great Depression remarkably well — better than any other industrial nation in the world.

Without a doubt, our Conservative government is on the right track on the economy and for Canadian families. However, as our government has said all along, the global economic recovery remains fragile. As witnessed by the ongoing fiscal challenges currently affecting European countries such as Ireland, we are not out of the woods yet. That is why our government's main focus has been and will remain the economy, including implementing Canada's economic action plan.

The sustaining Canada's economic recovery act does exactly that, moving ahead to protect Canada's economy and further strengthen the recovery.

Today's act accomplishes that objective in numerous ways, through a group of key steps, steps to help Canadian families get ahead, such as indexing the working income tax benefit, allowing registered retirement savings plan proceeds to be transferred to a registered disability savings plan on a tax deferred basis, allowing a 10-year carry forward for registered disability savings plan grants and bonds, implementing employee life and health trusts, and further strengthening federally regulated pension plans; steps to cut red tape, such as helping registered charities with disbursement quota reform, allowing taxpayers to request online notices from the Canada Revenue Agency, and reducing the paperwork burden for certain taxpayers; steps to close down tax loopholes, such as better targeting tax incentives for employee stock options, and addressing aggressive tax planning related to tax-free savings accounts; steps to further protect consumers by improving the complaint process for consumers when dealing with the financial services industry; and finally, steps to promote clean energy by expanding access to accelerated capital cost allowance for clean energy generation.

I would like to pause here a moment to highlight a few of the key steps in greater detail, especially outlining what they mean for everyday hard-working Canadian families and businesses.

To start, I would like to explain how the sustaining Canada's economic recovery act's proposal to index the working income tax benefit will help better ensure that Canadian families can better get ahead.

Our Conservative government has made a lot of progress to help low-income Canadians since 2006, including key investments in social housing and removing over one million low-income Canadians from the tax rolls.

We have also fought hard to make sure that no Canadian is penalized for taking a job. This has been underlined by the introduction of the working income tax benefit, or the WITB, in 2007. This benefit was designed to ensure that Canadians would be better off as a result of taking a job, and not face unintended and perverse disincentives for taking that job. Taxes, reduced income support, and loss of benefits had often discouraged individuals receiving social assistance from working, clawing back nearly 80% of their income.

WITB helps address that situation by both increasing income support while simultaneously strengthening work incentives. I am happy to report that approximately 1.5 million individuals and families benefit from the WITB each year.

What is more, since our Conservative government first introduced it, WITB has been roundly applauded.

The Caledon Institute of Social Policy has called it:

a welcome addition to Canadian social policy.... [It] fills a long-recognized gap in Canada's income security system.

McMaster University Professor William Scarth has observed that WITB:

stimulates employment rather than subsidizes people not to work. So it's a fundamental and beneficial change.

The United Way of Greater Toronto has declared that WITB is a positive change “that will help to improve the situations of low-income families”.

When we introduced it in 2007, our government also indicated it was only a first step that we hoped to build on. Indeed, we have done exactly that.

In budget 2009, we effectively doubled the tax relief provided by WITB, increasing benefits by an additional $580 million. This further strengthened work incentives for low-income Canadians already in the workforce and encouraged low-income Canadians to enter the workforce.

In the sustaining Canada's economic recovery act we propose to further improve WITB in a small but important way. Each year, certain personal income tax and benefit amounts are indexed to inflation using the consumer price index. This act will ensure that WITB amounts will also be indexed to inflation on an annual basis.

Following royal assent, WITB amounts payable in 2010 and subsequent years will be indexed to inflation on an annual basis, providing a few extra dollars to Canadian families that need it most. This is particularly important coming out of a recession where we understand that low-income Canadians have taken the brunt of the impact.

The next key step in sustaining Canada's economic recovery act that I would like to highlight in greater detail relates to cutting red tape for charities.

Supporting the good work of charities across Canada is obviously a shared goal among all parliamentarians. In that respect, we have heard from many charities throughout the years about the need to cut their red tape so they can devote more of their time and resources to actually helping others, not dealing with needless administrative paperwork.

One measure being proposed through today's act helps cut red tape facing charities, specifically significant reforms to the disbursement quota regime to reduce administrative complexity and better enable charities to focus their time and resources on charitable activities.

The disbursement quota, originally introduced in 1976, has been criticized by many as antiquated and failing to take into account the varying circumstances of charities. The disbursement quota has also been criticized as imposing an unduly complex and costly administrative burden on charities, particularly small and rural charities.

Additionally, in recent years, Canada Revenue Agency's ability to ensure the appropriateness of a charity's practices has been strengthened through new legislative and administrative tools. These tools have provided a more effective and direct means to fulfill many of the purported objectives of the disbursement quota. As a result, today's act proposes to cut that red tape overlap by eliminating the majority of antiquated disbursement quota requirements.

I note the feedback that has been received to this move has been extremely positive. Imagine Canada has applauded it for providing greater flexibility for charities as they seek to meet the increasing and changing needs of Canadians. The disbursement quota added layers of red tape and reduced flexibility in responding to the needs of Canadians and communities. It would help charitable organizations, especially smaller and rural ones, to better plan their activities to meet the real needs of their communities.

The Salvation Army has cheered it, stating:

The removal of the quota will provide The Salvation Army; one of Canada’s largest charities, with increased flexibility....

We are very pleased with this announcement. The proposed changes will allow us to better respond to the needs of the people we serve in 400 communities across Canada.

Community Foundations of Canada has enthusiastically added:

This move is a win-win situation – it has a dramatic impact on communities, making it easier for charities to serve people in need.... We applaud the government’s decision to reform the disbursement quota policy.

The next steps in sustaining Canada's economic recovery act I would like to look at in greater detail, also focused on cutting red tape. Parliamentarians often hear complaints from constituents and small businesses about the unnecessary paperwork and red tape they face around filing their annual taxes. This is especially true for small and medium size businesses, the engines of growth in the Canadian economy.

Indeed, the Canadian Federation of Independent Business estimates that businesses in Canada currently spend over $30 billion each year complying with regulations. Our Conservative government understands the burden unnecessary red tape places on taxpayers, and that is why we have taken important steps to reduce the administrative and paperwork burden.

Over the past few years, we have taken important steps to reduce the administrative and paperwork burden on Canadian businesses and taxpayers. In March 2009, for example, we met our target of reducing the paper burden on companies by 20%, eliminating almost 80,000 redundant regulatory requirements. This was done by streamlining regulations, eliminating duplicate or overlapping requirements and reducing excessive information requirements.

To build on our record and further reduce the administrative red tape burden on taxpayers, today's act would take another two steps. First, it would provide the Canada Revenue Agency with the authority to issue online notices, if the taxpayer so requests, for those notices that can currently only be sent by ordinary mail. This would help reduce the volume of paper to be dealt for both the taxpayers and the government.

Second, it would allow certain small businesses to file and remit semi-annually rather than monthly. With this change, many small businesses would be allowed to invest more of their time in managing and growing their businesses and the jobs it will create in our communities.

Before I conclude, I would like to highlight in detail one final item in the act: expanding access to accelerated capital cost allowance for clean energy generation.

Our country's energy supply is of vital importance to Canadians, especially promoting clean energy generation technologies. For that reason, the tax system provides incentives through accelerated capital cost allowance to help promote investment in generation equipment that conserves energy or relies on renewable or waste sources.

Today's act would expand the scope of that tax incentive to assets used in heat recovery and clean energy distribution across a broader range of applications. This extension would encourage investment in technologies that contribute to a reduction in greenhouse gas emissions and air pollutants.

The four or so steps I have reviewed in greater detail are only a small sampling of the many steps in sustaining Canada's economic recovery act aimed at supporting everyday, hard-working Canadian families and businesses. Clearly, this act would help make certain the Canadian economy continues to move in the right direction.

With the timely and effective support of Canada's economic action plan, the Canadian economy has weathered the global recession better than our peers. As the global recovery remains tentative and fragile, Parliament must continue to remain squarely focused on the economy and provide the steady guidance needed to keep Canada on the right track to recovery.

Accordingly, I strongly urge all members to support the continued implementation of Canada's economic action plan and pass the sustaining Canada's economic recovery act.

[Shawn Murphy, Liberal, Charlottetown, PE]

Mr. Speaker, why is it that the whole issue of poverty never gets mentioned by the government in its speeches or in the bill that we are presently debating?

We heard last week that under the government's watch the poverty level of senior Canadians has increased by 25% over the last two or three years and that 610,000 Canadian children now living in poverty. We have very clear evidence of the close association between poverty and future health care costs, poverty and future interactions with the criminal justice system and poverty and the productivity of the nation.

Two studies have been tabled recently, one by the Senate committee and one by the House of Commons committee. They are both excellent studies that make sound recommendations.

Why is it that issue never comes to the attention of the government?

[Andrew Saxton, Conservative, North Vancouver, BC]

Mr. Speaker, I would remind my hon. colleague opposite that billions of dollars have been spent on helping those who are underprivileged in our society. We have also cut over 100 taxes putting over $3,000 a year back into the pockets of the average Canadian family. Over one million lower income Canadians are no longer on the tax rolls. We have allowed income splitting for seniors. We have doubled the age credit amount for seniors. We have raised the age for converting RRSPs to RRIFs from 69 to 71 years of age, which is a huge benefit to seniors who can now defer having to pay taxes for another two years. We have also introduced the tax free savings account and almost five million Canadians have already opened accounts. We are taking action to help those who are underprivileged in our society.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, a rosy picture of the economy is counter to what is happening out there. Reuters just posted an interesting story stating, “Canada record-high current account gap spurs worry”. It goes on to say:

Canada entered the club of countries with oversized current account deficits in the third quarter, posting the biggest shortfall on record as its worsening trade profile heralded a further slowdown in economic growth.

This is the eighth consecutive deficit and this one is $13 billion. Doug Porter, the deputy chief economist at the BMO Capital Market, said:

Canada suddenly finds its broadest trade deficit in the company of countries that have typically been cited as extravagant over-spenders/under-savers.

Part of the problem is that our trade deficit with the United States is growing. That is part and parcel because we have a government with a petro-dollar philosophy that has pushed the Canadian dollar significantly up and is destroying manufacturing across this country. I would like to ask the parliamentary secretary about that.

How long will the government continue to fuel an artificial dollar up when it is clearly affecting so many value-added jobs in Canada, which is different than the jobs that have been added?

[Andrew Saxton, Conservative, North Vancouver, BC]

Mr. Speaker, I would remind my hon. colleague that this government believes strongly in expanding the markets for Canadian goods. That is why our Prime Minsiter made record-breaking trips to Asia last year and went to India and China. He was able to get approved destination status for Canada, something that, after 13 years, Liberal governments were unable to achieve. This will result in hundreds of millions of dollars coming to Canada through increased tourism and trade with those two rapidly growing important nations.

[Steven Fletcher, Conservative, Minister of State (Democratic Reform)]

Mr. Speaker, in the world today we see economic turmoil in many countries. Ireland has just recently had a major bailout in the eurozone. We see economies collapsing all over the world. However, we see Canada's economy growing, jobs increasing and a banking system that is the envy of the world. In fact, I understand the Finance Minister is ranked the best finance minister in the world.

I wonder if the member could speak a little more to why the budget has been so positive for Canadians, especially in light of the very bad suggestions that come from members across the aisle.

[Andrew Saxton, Conservative, North Vancouver, BC]

Mr. Speaker, the member is absolutely right. Canada's economic performance and recovery during the global recession has made us the envy of the world. In fact, the World Economic Forum has called Canada's banks the soundest in the world for the third year in a row. The IMF says that Canada is leading the G7 out of the recession. As the member mentioned, Euromoney magazine named Canada's finance minister, finance minister of the year in 2009.

However, that is not all. I will give the House more quotes. For example, the Economist called Canada “an economic star”. Standard & Poor's said, “Of the other G7 countries, Canada is posting the best fiscal results. Canada also best weathered the financial crisis and is now well-positioned to continue to outperform”.

Let us not stop there. The BBC said, “Nowhere is immune, but by most key measures the Canadians are coming out of this crisis in a league of their own”.

Why is that? It is because our government has focused on helping Canadian families get ahead. We have indexed the working income tax benefit. We have allowed registered retirement savings plan proceeds to be transferred to a registered disability savings plan on a tax deferred basis. We have cut red tape. We are helping registered charities with--

[The Deputy Speaker, Andrew Scheer]

Order, please. I will have to stop the member there. I understand there are a few more members who would like to ask questions. The hon. member for Scarborough—Guildwood.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Mr. Speaker, I would not want to interrupt the hon. member's happy little litany of apparent accomplishments, which are not accomplishments in and of themselves.

He neglects to mention that under his government's watch it has run a $13 billion surplus into a $60 billion deficit,which will cumulatively over the next five years go up to $165 billion, all because the government cannot control its own spending, in part because the government has an inability to constrain its spending beyond twice the rate of inflation on an annual basis, which cumulatively over a number of years has resulted in an extraordinary deficit where there was no deficit that was necessary.

The member also neglects to mention that the most significant reason that the banking system is in such good shape is because of the good efforts of the previous government that denied the desire on the part of the banks to merge.

We can only imagine that had the Liberal government of the day consented to the merger, as the banks aspired to do, the Canadian taxpayer would have ended up on the hook for literally billions of dollars as bailouts likely would have been necessary because the banks in a merged state would have wanted to acquire other banks and those banks would not have been the most successful assets in the world.

Does the member, in his excessive litany, think that possibly his government inherited a tremendous fiscal, monetary and banking foundation on which the government has not totally destroyed?

[Andrew Saxton, Conservative, North Vancouver, BC]

Mr. Speaker, my colleague's question allows me to explain the largest debt in Canadian history measured by deficit to equity ratio was actually in 1984 after successive Liberal governments were in power. It was over 8%, compared to 5% today.

The Liberals and the opposition over the past two years have been encouraging us to spend even more money. So it is not as a result of anything they have been doing.

However, I explain what we have been investing in. We paid down $40 billion of debt prior to the recession, which placed us in a very strong position to tackle the recession when it actually happened. We cut over 100 taxes, putting over $3,000 back into the pockets of the average Canadian family. Over one million lower income Canadians are no longer on the tax rolls. We have allowed income splitting for seniors. We have doubled the age credit amount for seniors. We have raised the age for converting RRSPs to RRIFs from 69 to 71 years. We have introduced the tax free savings account which almost 5 million Canadians have taken advantage of.

I have much more if the House would like me to continue.

[Geoff Regan, Liberal, Halifax West, NS]

Mr. Speaker, I am pleased to speak to Bill C-47, the implementation act for budget 2010.

Canadians across the country are struggling to pay their bills and plan for the future and so obviously is the government. The government has shown itself to be so fiscally irresponsible that Canadians no longer trust it. They cannot trust it to manage the fiscal future of Canada. They are growing tired of the constant missed budget targets, ballooning budgets and reckless spending. Unfortunately for Canadians the government governs with ideology instead of facts and even then its outrageous spending is hardly conservative.

While the Conservative government focuses only on the electoral cycle and short-term progress, it fails to plan for the future of Canadian industry and for the jobs of tomorrow. Its visionless spending risks Canada's fragile economy and threatens to create even larger issues down the road. Canadians are aging and their government has no plans to help them.

The finance minister recently lectured Canadians saying, “This is not the time for dangerous and risky new spending schemes that will increase deficits and raise taxes”. However, Canadians are wondering why he does not take his own advice. Canadians are wondering why he is lecturing them and not his own government.

As the finance minister asks Canadians to tighten their belts, he continues to borrow from their already underfunded futures and recklessly spends on everything under the sun. His risky spending outlined in budget 2010 delivers deafening blow after blow to the future of our economy and our country.

To really get an idea of the lack of vision and lack of value for tax dollars the government has provided, we need only look to its record of reckless borrow and spend fiscal irresponsibility.

The Minister of Finance talks about restraint when his government has never shown an ounce of fiscal restraint. I do not have enough time to tell the House about all of the finance minister's own risky spending schemes. I would need infinite and unlimited time for that, so instead I will take this time to tell the House about some of the risky and reckless, borrow and spend Conservative schemes that are leaving Canadians scratching their heads and asking where their tax dollars have disappeared to.

Even before the downturn, the Conservative government burned through the $13 billion surplus it inherited from the previous Liberal government. The government claims to want to eliminate the deficit when the only thing it ever eliminated was the surplus.

Under the Conservative government, Canada holds the largest deficit in Canadian history, at $56 billion. The Conservative spending that led to the deficit is exactly the kind of risky spending Canadians cannot afford.

In October 2008 the finance minister said, “At a time of global economic uncertainty, no responsible economic manager would suggest experimenting with...massive increases in government spending”. He then increased government spending by 17.8% the next year. Imagine that. In fact, before the economic downturn, the finance minister increased spending by 18% over three years. He put the country in deficit before the recession. He took a $13 billion surplus and turned it into a deficit before the recession began.

[John McKay, Liberal, Scarborough—Guildwood, ON]

It's a talent.

[Geoff Regan, Liberal, Halifax West, NS]

It is quite a talent, as my hon. colleague from Scarborough—Guildwood says.

That is over three times the rate of inflation the way he increased spending. It seems that even the finance minister, based upon his quote, finds his own massive increases in government spending irresponsible. Surely he must.

The Conservative, out of control, borrow and spend fiscal policy put Canada into a structural deficit. The finance minister needs to stop the government's risky spending and show some leadership when it comes to fiscal responsibility.

He said, “The record shows we take a principled, practical, and prudent approach to leadership”. What a claim. Has he looked at his own record? I do not think so. As a Conservative member himself described, one of my colleagues, has he been too busy “spending like it's Christmas”? That is what a member on that side actually said the government was doing. It is spending like it is Christmas.

Let us take some more time to look at the minister's record since he seems to have forgotten about it.

The fact is he has never been right on deficit projection in his history as both a provincial finance minister and a federal finance minister. Even now, against all logic, the finance minister is guessing there will be a $2.6 billion surplus in five years when the Parliamentary Budget Officer has said that in five years there will still be an $11 billion deficit. The Parliamentary Budget Officer, or PBO, reports that by that time the government will have added over $200 billion to the national debt. It inherited a $13 billion surplus and it will add $200 billion to our country's debt. What a record.

The PBO predicts that there is an 85% chance the finance minister will break his promise to balance the budget by 2015-16, basically because the numbers are not there based upon what he has been given so far. We are not talking just a little off. There is a $13.6 billion spread between the government and the budget officer.

The government's willingness to gamble Canada's future on a 15% chance is disturbing. Does the finance minister not understand that when he is wrong, like he has been in the past, Canadian citizens will be left holding the bag and the bill?

The Conservatives talk of leadership, but they do not lead. At a time when it should be curbing frivolous spending, the government spent $10 billion on expensive Conservative consultants.

Let us just look at one of the examples of these costly consultants. While the finance minister speaks of fiscal prudence, the Conservative government paid an outside consultant $3,400 to write two simple press releases for VIA Rail and then promptly hired the consultant to work in a Conservative MP's office. Is $3,400 for 1,300 words the finance minister's definition of “fiscal prudence”?

The Conservatives have recklessly issued thousands of irresponsible contracts at a time when most Canadians are struggling to make ends meet. Budget 2010 continues the Conservative history of risky spending schemes.

Even at the height of the economic downturn, when Canadians were drowning in debt, the Conservatives continued their trend of risky spending schemes by tripling the advertising budget to a whopping $130 million, with no clear benefit or value to Canadians, a $130 million of taxpayer dollars for Conservative propaganda. The borrow and spend government added to its record $56 billion deficit by wasting $130 million on shiny billboards and flashy ads, while Canadian families struggled through the recession.

It is time that Canada's money went toward Canadian priorities instead of Conservative propaganda.

Canadians want thefinance minister to put a leash on his Conservative spendaholics and urge them to stop their risky spending schemes. Instead of helping Canadians recover from the downturn, the government was busy blowing over a billion dollars on the G20 photo op. Only that government could find a way to spend six times more on G20 security than the previous equivalent G20 summit in Pittsburgh. Only that government could recklessly borrow and spend so much on the G20 photo op, making it a priority ahead of helping Canadian families.

A Liberal government would put that money to much better use with our family care plan, which would help Canadians deal with the difficult task of caring for their ill-lived loved ones.

Has the finance minister considered his government's G20 purchase of $14,000 in glow sticks and building a fake lake responsible and prudent leadership? Canadians hope not, because they certainly do not want their money being wasted on costly photo ops for the Prime Minister.

Adding to the Conservative risky spending schemes is the ever-increasing expense of an untendered F-35 stealth fighter jet contract. The Auditor General warned us that its F-35 contract “carries significant risk of delays or cost increases. They represent it as being off the shelf or what would be a simple purchase. But this was anything but the case”.

Even the Pentagon is worried about escalating costs and delays with their F-35 contract. In fact it is reviewing its contract, yet the Conservative government refuses to review ours. Even John McCain is calling the F-35 costs “outrageous”. He has also said, “I share our allies' and friends' deep disappointment about the cost overruns and the difficulties that we've experienced in development of this aircraft”.

The Conservative government seems to be the only government that does not have a problem overpaying for things, as its fiscal record continues to show.

Originally the Conservatives falsely claimed that their prison bill would only cost $90 million when they introduced the legislation. They later amended these estimates to $2 billion. The Parliamentary Budget Officer has priced the bill at between $10 billion to $13 billion. It started at $90 million and we know now that it is likely to be in the range of $10 billion and $13 billion. What kind of control of spending is that?

It is beyond risky for the Conservative government to ask Parliament to vote on its legislation when it grossly misrepresents the true cost of implementing that legislation. Risky spending schemes that build unnecessary, U.S.-style megaprisons for a country with a declining crime rate is not an effective use of taxpayer dollars.

Bank of Canada governor Mark Carney said that an abrupt correction in Canada's housing market was in fact possible. The Economist says that Canada's housing is overvalued by 23 points. That is 7.3 points more than it rates Ireland's housing overvaluations. Even the National Post reports that there is a housing bubble. Yet the finance minister defies them all by saying there is no housing bubble. He also said, “It's a long stretch to compare our housing market with that of Ireland”.

Unfortunately he is right because our houses, according to these experts, are 32% more overvalued than Ireland's. Let us hope that is not the case. Let us hope there is no bubble here and it does not burst, but we should be concerned about this. This reckless and risky strategy of ignoring the facts by the finance minister is what steered Canada into deficit in the first place.

As Aldous Huxley famously said, “Facts do not cease to exist because they are ignored”.

A Liberal government would clean up the fiscal mess created by the borrow and spend Conservative government. I remember the challenge that faced the Liberal government in 1993 when it came into office, because I was there. I was part of the process and watched as the prime minister and finance minister worked very hard, and as Canadians sacrificed, to get us back to balanced budgets, to get us into surpluses. When the Liberal government left, there was a $13 billion surplus that the Conservative government inherited and then quickly blew.

The Conservatives have to stop ignoring the facts and focus government spending on the Canadian priorities of family care, seniors, the economy and job creation. Budget 2010 has been a complete disaster in this regard. The Conservative method of governance unfortunately is ideologically based. It is based on ideology instead of on facts. That is why they do not like information such as a census, for example.

The finance minister's arrogance in telling Canadians not to ask for things they need during the upcoming budget consultations because the government has spent the cupboard bare is disheartening for all Canadians. The Conservatives talk of restraint, but they do not restrain. It is time the government takes its own advice and stops its risky borrowing and spending and stops raising the deficit.

[Brian Jean, Conservative, Parliamentary Secretary to the Minister of Transport]

Mr. Speaker, I listened to the Parliamentary Secretary to the President of the Treasury Board. He started to talk about the capital cost allowance that had been brought in by this government on clean energy initiatives. The Prime Minister has said that we want to be a clean energy superpower. Certainly we have a lot of natural and competitive advantages to do that.

The Liberals, under Jean Chrétien, brought in the capital cost allowance in the nineties to kick-start the oil sand industry in Northern Alberta. It was very successful because it cost a lot more to develop that kind of oil than other places in the world.

What does the member think about the capital cost initiative by this government on the issue of clean energy and the clean energy initiative? What are some of the ways he sees it being utilized for Canada's advantage in the future?