Debates of Jan. 21st, 1994

Goods And Services Tax

[Ray Speaker, Reform, Lethbridge]

Mr. Speaker, I have a supplementary question for the minister. I thank him for the very comprehensive and objective answer; it is much appreciated.

The minister knows that often when tax levels are too high consumers resist paying. Possibly that is one circumstance with regard to the GST and taxation in Canada.

Could the minister indicate when there is a review of the GST and a change of tax whether consideration will be given with all sincerity for a reduction of taxation and possibly a remedy to the problems Canadians face?

[David Anderson, Liberal, Minister of National Revenue]

Mr. Speaker, once again I am in the position of essentially agreeing with much that has been said by my hon. friend.

The fact is that this side of the House-and indeed I am sure both sides of the House-as I mentioned two days ago believes tax levels are high and are onerous. We wish to reduce them wherever possible.

In the examination of the replacement for the GST, which as the Prime Minister has indicated will go to a committee of the House, I am quite sure the issue of the level of taxation and its affect upon the willingness of Canadians to pay and willingness to abide by a fair tax system will be discussed by members.

I would suggest to the hon. member that the committee of the House dealing with the replacement for the GST will probably be one of the most important committees of the House. I suggest he put his name forward before he is trampled by his fellow members in the Reform Party.

Unemployment Insurance

[Gaston Leroux, Bloc, Richmond—Wolfe, QC]

Mr. Speaker, the speech from the throne as well as various statements by Ministers seem to indicate that a reform of unemployment insurance will be presented with a view to reducing cost which will mean a reduction in accessibility and in payments to the unemployed.

My question is to the Minister of Human Resources Development since he said yesterday that this was his first target. Will the government assure us today that they will not raise again unemployment insurance premiums in 1994?

[Lloyd Axworthy, Liberal, Minister of Human Resources Development and Minister of Western Economic Diversification]

Mr. Speaker, the hon. member knows that through the speech from the throne I indicated that a number of issues needed to be examined such as the important matter of restruc-

turing our social security net. This includes unemployment insurance. Indeed, I announced before Christmas a freeze on unemployment insurance premiums, an initiative which should go a long way toward ensuring stability for small businesses.

So, between now and 1995 when another UI premium structure will come in effect we will have a two-year period of stability. I hope the hon. member will support that.

[Gaston Leroux, Bloc, Richmond—Wolfe, QC]

I have a supplementary question, Mr. Speaker. Should we understand that the Liberal Party deliberately duped and misled the Quebec people when a few short months ago in opposition they vehemently denounced Bill C-113 proposed by the Conservative government of the day because it was aimed at reducing accessibility and the amount of money paid to unemployed workers?

[Lloyd Axworthy, Liberal, Minister of Human Resources Development and Minister of Western Economic Diversification]

Mr. Speaker, I would suggest the hon. member may want to take a look at his remarks when they appear in Hansard , because I think he was in breach of the rules of the House by suggesting that we deliberately mislead anybody. That has certainly never been the intention of this party or this government.

Clearly what we were faced with when we took office was a decision by the past government to raise the level of premiums. That was already in the statutes; it had already been decided. We in fact reduced that to its bare minimum so that the actual raise was only 2.3 per cent for this year. To live up to the commitment we had made and that we undertook we froze the premiums for the entire year of 1995 so small businesses will have the two-year stability of a constant premium rate. That will give them the kind of incentive and stimulation they need to go out and create jobs.

In the meantime, if he and his colleagues were prepared to work with us and collaborate with us on a broad review of our social programs we would be able to take a look at the issue of payroll tax and give a real sense of hope not only to the unemployed but to the business people who would give them jobs.

Young Offenders Act

[Myron Thompson, Reform, Wild Rose, AB]

Mr. Speaker, my question is for the Minister of Justice.

January 15 marked the deadline for submissions from all Canadians recommending changes to the Young Offenders Act. Will the minister provide a detailed report of his findings from these submissions to all members of Parliament?

[Allan Rock, Liberal, Minister of Justice and Attorney General of Canada]

Mr. Speaker, my hon. friend has quite properly pointed out that the submissions have been received by the Department of Justice. They are now under review. As the hon. member might appreciate it will take us some time to evaluate them and to draw conclusions.

I can assure my hon. friend, though, that the entire question of the youth justice system is under active review. As we made clear in the speech from the throne our commitment is to enhance community safety and the justice system in general, including youth justice, so the entire statute is very much a matter of priority for the department.

[Myron Thompson, Reform, Wild Rose, AB]

I have a supplementary question, Mr. Speaker.

As we all well know the Young Offenders Act has been under question for quite some time. Could the minister give us an indication of when we could expect action that would change the Young Offenders Act, something that Canadians everywhere want done immediately?

[Allan Rock, Liberal, Minister of Justice and Attorney General of Canada]

Mr. Speaker, the hon. member will recall that during the course of the election campaign the Liberal Party made clear in its platform that it proposed specific changes to the Young Offenders Act. Those changes included longer sentences for violent crime, creating the category of dangerous youth offender, releasing information when it was in the interests of the community to do so, and changes of that kind.

I can assure my hon. friend, and I take this opportunity to assure the House, that when I speak next week in the debate on the speech from the throne I will be elaborating upon our plans with respect to the Young Offenders Act and the criminal justice system in general. I can also assure him that included in our plans at present are measures in the short term to implement the undertakings we made during the campaign.

Grain Transportation

[Joe Comuzzi, Liberal, Thunder Bay—Nipigon, ON]

Mr. Speaker, my question is for the Minister of Agriculture.

Canadian taxpayers subsidize the movement of grain in Canada by approximately $720 million a year. This subsidy is paid directly to the railways and I might say that the subsidy is abused. As an example, to qualify by regulation for the subsidy grain destined for the U.S. market must first go to Thunder Bay. Then from Thunder Bay it is shipped somewhere out west and eventually gets to the market to which it is destined. This is an abuse of the system. It distorts the cost of shipping grain in this country.

Would the Minister of Agriculture consult with the Minister of Transport to stop the flagrant abuse of taxpayers' money through this subsidy immediately? Would he then consider removing the subsidy paid directly to the railways? If there is to be a subsidy on grain in this country perhaps it could be paid to the farmers to whom it rightfully belongs.

[Ralph Goodale, Liberal, Minister of Agriculture and Agri-Food]

Mr. Speaker, I thank the hon. member for his question. Obviously the issue of grain transportation, and in particular the Western Grain Transportation Act, is a subject that is under active consideration by this government.

The previous government had established a number of processes that will result in a series of reports we expect to receive during the early part of this year, specifically on grain transportation efficiencies.

In the member's question he has pointed out a fairly glaring example of an inefficiency in the system. We await that report on grain transportation efficiencies. We also await a report on the method of payment under the Western Grain Transportation Act conducted by a producer payment panel.

While we as a new government are by no means bound by processes started by a previous government, we are anxious to receive this input. We will be making our decisions in due course.

Environment

[Jean-Guy Chrétien, Bloc, Frontenac, QC]

Mr. Speaker, my question is directed to the Minister of the Environment. On September 7, 1970, a tanker, the Irving Whale , sank off the Magdalen Islands. Over time, corrosion by salt water caused the ship to leak its cargo.

Is the Minister aware that the Magdalen Islands and Prince Edward Island are facing a major environmental disaster? Does the Minister of the Environment have a specific plan to avert this disaster?

[Sheila Copps, Liberal, Deputy Prime Minister and Minister of the Environnement]

First I would like to thank my colleague for his excellent question. I am familiar with the standing orders, but I thought I would make the point that "la chrétienté" is found on both sides of the House.

That being said, Mr. Speaker, after the election the hon. member for Bonaventure-Îles-de-la-Madeleine advised me of his concern about reports of a suspected leak from the tanker when geese were found on the shores of the Magdalen Islands.

I personally visited the Magdalen Islands during the election campaign, and I am aware that this particular area is a favourite destination for tourists. Since I have a particular interest in the tourism industry on Prince Edward Island, I am working very closely with my colleague, the Minister of Transport, to find a financial solution to a problem that, of course, predates current federal standards in this respect.

The member will know that this problem actually predated federal legislation governing the difficulties that we face when ships sink. In that regard I am working very closely with my colleague, the Minister of Transport, to try to find a financial solution to a problem that we both recognize.

I thank very particularly the member from Îles-de-la-Madeleine and the adjacent member from Prince Edward Island who brought this matter to my earliest attention the moment they were elected.

[Jean-Guy Chrétien, Bloc, Frontenac, QC]

The Minister of the Environment is aware that in 1992 the coast guard asked a private company to examine the wreck. The company's report was submitted to the government in December and has yet to be released.

Is the Minister of the Environment prepared to release this report as soon as possible? The people of the Magdalen Islands and Prince Edward Island are concerned and they have a right to know.

[Sheila Copps, Liberal, Deputy Prime Minister and Minister of the Environnement]

Mr. Speaker, since two departments are working very closely to come up with a solution I am prepared to have my department and the government discuss particular aspects of the report with the hon. member who is the environment critic for this party and with the critic for the Reform Party.

A government response to the report is not yet available but I will try to have it ready as soon as possible. As soon as it is available we will share it with you and we will try to do that as soon as possible.

Aboriginal Affairs

[Mike Scott, Reform, Skeena, BC]

Mr. Speaker, my question is for the Minister of Indian Affairs and Northern Development.

The failure of the Charlottetown accord even among aboriginal communities indicated that among other things the people of Canada could not support undefined aboriginal self-government. Although most people understand and identify with the aspirations of aboriginals to control their own affairs there is a deep concern that self-government might threaten the sovereignty of Canada.

Will the minister assure Canadians that his government will promote and protect the sovereignty of Canada at all times when negotiating aboriginal self-government?

[Ron Irwin, Liberal, Minister of Indian Affairs and Northern Development]

Mr. Speaker, not only would I give that commitment, I think that should be the commitment of every one who comes to this House.

Sovereignty is not in question. What is in question is how we take inherent right and develop it into something that is workable. I think the process of discussion over the next six months with the territories, the provinces, the leaders and the national aboriginal leaders will define just that.

As I said yesterday we must have one Canada but within this Canada many families.

[Mike Scott, Reform, Skeena, BC]

Mr. Speaker, will the minister affirm that the individual rights of aboriginal people as guaranteed to all Canadians under the Charter of Rights and Freedoms will be protected and preserved under any form of negotiated self-government?

[Ron Irwin, Liberal, Minister of Indian Affairs and Northern Development]

Mr. Speaker, the charter of rights is very important to me personally, having sat in this House when it was developed. It is very important to the aboriginal people and very important to Canadians. It will be protected at all costs.

Privatization

[Andrew Telegdi, Liberal, Waterloo, ON]

Mr. Speaker, let me take this opportunity to congratulate you on your election to the office of Speaker. I am confident you will serve the House and Canada well.

My question is for the Minister of National Defence and Veterans Affairs and involves household moves by the government which cost over $100 million a year. The moves are managed by an interdepartmental committee chaired by National Defence.

I understand that the previous government authorized the conduct of pilot projects with two private sector companies to see if savings could be made.

Would the government seriously examine the proposals to privatize its move management services to see if they are feasible and if any further savings can be made on behalf of the taxpayers of Canada?

[David Collenette, Liberal, Minister of National Defence and Minister of Veterans Affairs]

Mr. Speaker, I congratulate the hon. member on asking his first question.

The issue he raises with us has been raised by a number of members from other parties as well. The House should be informed that earlier last year the former government did solicit proposals for privatization of move management services.

Of the six bids received only one was compliant with the government's requirements. Independent accountants have found that the compliant bidder's costs were several million dollars greater than the government's costs.

I should inform the House that only 10 days before the election former ministers in the Conservative government directed the conduct of two pilot projects without authorization, one with a firm whose costs were millions more than the government's and the other one with a company whose bid was found to be non-compliant. As soon as we took office we cancelled this authority to conduct the pilot project. That is the way business was done under the Tories. That is not the way we are going to do business.

I should say that in the context of cuts to the defence budget as promised by the Liberal Party in the red book that we are trying to examine every single way that we as a department can save money, to rationalize expenditures so that we can have a lean effective military.

I will work with the hon. member to make this come about.

Team Canada

[Stéphane Bergeron, Bloc, Verchères, QC]

Mr. Speaker, my question is for the Minister of Canadian Heritage.

Yesterday, the minister skirted around the fact that there is no Quebecer on Hockey Team Canada. He gave us some incomplete and sketchy statistics regarding the make-up of the Canadian National Olympic Team.

Since hockey is the national sport of both Canada and Quebec and since it would seem normal for Team Canada to reflect the Canadian reality, and given the fact that the minister had a chance to sleep on it, is he now willing to reconsider his position and have a word with the people in charge of Team Canada to rectify this unfair and unacceptable situation?

[Michel Dupuy, Liberal, Minister of Canadian Heritage]

Mr. Speaker, I thought I was very clear yesterday. The hockey team is still in the process of being recruited. Recruiting is still going on. Therefore, as I said yesterday, I cannot blame those in charge as long as I do not have the results of their efforts.

I should probably mention to my colleague, to put his mind at rest, that the vast majority of athletes of Olympic calibre are bound by contract to professional teams. Therefore, Hockey

Canada must negotiate their release with their employers. It is for Hockey Canada to do so, not the Minister of Canadian Heritage. I am keeping an eye on the situation and reserving my judgement until we see the results of the process.

[The Speaker]

Hon. members, that will conclude the question period.

The hon. member for Burin-St. George's has a tribute to Ches Carter.