Finance Committee on June 2nd, 2015

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

As I said before, the bank maintains its forecast at 1.9%. The private sector has not informed us of any changes in forecasts. As you know, 15 economists from the private sector submit their forecasts and we then calculate the average.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

This much talked about surplus is artificial. In reality, it is a deficit, but you are using $2 billion of surplus from the EI fund. Last Thursday, Aaron Wudrick, the director of the Canadian Taxpayers Federation, pointed out how scandalous he thought the use of that surplus was. Of course, we could also talk about the use of the contingency fund.

Would you agree with Mr. Wudrick that the use of the surplus from the EI fund is a problem?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

If I understand correctly, you are talking about the EI forecasts—

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Yes, absolutely.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

We have promised Canadians to balance the amount starting in 2017 for seven years. There was a deficit followed by a surplus and we will balance that in the long term.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Does the income splitting apply as of this year? When you answered my colleague's questions a little earlier, it was not clear. Is that part of the budget? Will the $2 billion shortfall apply only in 2016? Could you clarify that question please?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Deputy Minister Rochon will be able to answer that question.

[Paul Rochon, Deputy Minister, Department of Finance]

Mr. Côté, are you asking how the income splitting amounts are accounted for in the budget?

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Yes. Will that apply in 2015 or only in 2016?

[Paul Rochon]

That applies to the 2014 fiscal year.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

So for 2015.

[Paul Rochon]

The amounts are included in the estimates for 2014-15, for 2015-16 and for the subsequent years, of course.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

I have another quick question for you, Mr. Minister.

We have seen the term “income splitting” appear and disappear. It seems an order was issued to no longer use that term. Do you use the term “income splitting” freely?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

We are aware of the issue. We can say “income splitting” or “income sharing”. We completely understand what it means. This policy has been available to seniors for years. It is actually a very good policy for them, and it will be for their families as well.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Côté.

Mr. Cannan, please. It's your round.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Thank you, Mr. Chair.

To you, Minister, and to your officials, thank you for being here.

I'm representing Kelowna—Lake Country, a riding that has a high percentage of seniors. Given the fact we're living longer and living a healthier lifestyle, and with the returns on investments being lower, I definitely know that the extension of the RRIF component was a welcome addition to the budget. As well, in the previous working income tax benefit program, we had over a million Canadians not having to pay taxes, with over 380,000 of those being seniors.

Investment in tourism is a big component in my riding, as are innovation and technology and the university, and a lot of other good initiatives.

There's one specifically. I think we can all reflect back on our first job, whether it was as a volunteer or working in some organization as an intern. I think it provided the sort of foundation for a work ethic and mentorship that helped us get to where we are today. I wondering, Mr. Minister, if you could elaborate on that and tell us what the government is doing to ensure that our youth have a safe experience while learning new skills in the internship program.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Bill C-59 amends the Canada Labour Code to ensure that interns under federal jurisdiction, regardless of pay, receive occupational health and safety protections. Our government knows that internships can provide important work experience and lead to jobs.

The proposed amendments will also establish two circumstances in which unpaid internships can be offered and provide a coherent set of labour standards to be set out in regulations that will apply to interns who meet either of these circumstance. The first circumstance would be if the internship is formally part of a program approved by a recognized secondary or post-secondary educational institution or vocational school. The second circumstance would be if the internship meets all six specific criteria.

It's important to note that these labour standards regulations will reflect the unique situation of unpaid internships and were developed in consultation with stakeholders. At a minimum, it's expected that they will ensure that unpaid interns receive maximum-hours-of-work protections, as well as unpaid bereavement leave and unpaid sick leave, and are protected from sexual harassment. Our budget focuses on protecting interns and ensuring that internships lead to jobs, which is another way that we're creating job growth and lowering taxes for hard-working Canadians.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Thank you very much. I appreciate it.

Changing gears to another area, I think all of around the table would agree that we support our veterans and our men and women who are serving to protect our land, air, and sea, and also the RCMP locally, nationally, or globally, and the commitments they give our country. I've met with many of my veterans in the community. I work closely with our Legion and the army, navy, and air force club. I know that within the budget, working with Minister O'Toole and Veterans Affairs, there are some additions to help our veterans.

Could you elaborate on that for the committee and inform us of some of the additional benefits the government has introduced for our brave men and women so they are able to live with dignity?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Yes. Thank you for that important question.

Our Conservative government places the highest priority on making sure that veterans and their families have the support and services they need when they need them. Our government made significant progress in such key areas as long-term financial security, increased family support, and removing barriers of eligibility for certain financial benefits. For example, Canadian Armed Forces veterans who are moderately to seriously disabled as a result of their service will soon have additional benefits after age 65. There is also new money to support family caregivers, and those from the Canadian reserve force will receive fair financial benefits from the government.

These new initiatives are evidence of our government's commitment to ensuring that Canadian veterans and their families are treated with care, with compassion, and with respect. Since our government took office, benefits for veterans have gone in one direction—up. The Liberal Party, however, has voted against increased support for veterans' monthly income, such as the earnings loss program. They voted against new money to expand mental health clinics to more locations across the country. Yet they have no problem with an adviser who used over $70,000 of taxpayers' money to move down the street from one high-end home to another.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Cannan.

Monsieur Dionne Labelle, cinq minutes, s'il vous plaît.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Thank you, Mr. Chair.

Mr. Minister, let me tell you about a lady named Francine.

Francine had cancer and she was entitled to 15 weeks of EI benefits. Quebec has last resort assistance. However, since she had a house, she could not access the assistance.

I read the Parliamentary Budget Officer's report that said what we could have done with the $2 billion EI surplus. That could have helped Francine and thousands of other people like her who are at the end of their benefits and are forced to seek last resort assistance.

Earlier, you said that the income splitting system in 2014-2015 was $2.395 billion. I talked with Francine. She feels—and I agree with her—that the government is helping neither people suffering and in need nor sick people. With this amount of over $2 billion, we could have stretched the EI benefits for a full year. That is what the Parliamentary Budget Officer says. However, the government is instead giving the money to 15% of the population, that is to say the wealthier segment. That is how Francine sees your budget and that is how I see it as well.

How do you explain the choice to use this amount of $2 billion to balance the budget and give $2.395 billion to 15% of the population? Francine and the people who are suffering in Canada don't understand an action like that. It's as if you are working for those who don't need it and you don't care about the real needs of the people. That is deplorable.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

As I mentioned earlier, all the benefits of our program helps families. Two-thirds of those benefits are for middle-class Canadians or those with lower incomes. That is the reality.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

The reality is—

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

In fact, 25% of money goes to Canadian families earning less than $30,000.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Do you understand Francine's predicament? She would have liked to be able to benefit from EI benefits during the duration of her treatment. Instead, the government stops giving her those benefits and gives them to the wealthiest 15% of the population. There is something despicable about that.