Mr. Speaker, I rise tonight to again raise the issue of the northern tax allowance, a matter that I and my constituents have expressed concern about for many years. This was an issue that concerned my constituents and other Canadians during my first election campaign in 1988. It was an issue that the Mulroney government completely misunderstood and in responding to the complaints raised it made the situation worse.
I have always seen the northern tax benefit program as a simple acknowledgement that not all taxpayers in Canada have equal access to the programs and services to which they contribute as taxpayers. Northern residents live at a considerable distance from the majority of federal government services and the northern tax program provided them with some relief on their income tax as a result.
For example, an individual living in Pierceland, Saskatchewan has less access to federal government programs and services than does an individual living in Saskatoon. Therefore, it seemed the right thing to do when the original tax benefit program was initiated and brought into being.
However, there were problems in its implementation. Some communities achieved northern benefit status and others did not. There were arguments about why the residents in one community received benefits while residents in another did not. Instead of reviewing the criteria for the program and finding ways to increase its fairness, the Mulroney government appointed a special task force which reported to Parliament in October 1989.
The task force recommended that instead of fixing the problems the federal government should simply move the eligibility line so far north that few communities would argue about where the line was drawn. In other words, the task force recommendation walked away from the problem, took the easy way out and completely ignored the needs and desires of the people who were living in the area previously defined for eligibility.
According to the Mulroney government, which accepted the task force recommendations, the people who were receiving the benefits would be best served if they lost those benefits, not all at once but slowly, phased out over three years.
Despite their protests, these residents will see the end of the northern tax allowance this year. When taxes for 1994 are calculated and the benefit taken into account, that will be it. In 1995 these hard working Canadians will lose their benefits.
As a result it also means that each and every one of these tax paying families will see a dramatic increase in their tax bill beginning in the 1995 tax year. At the time of the task force report, I said it did nothing but address the cash grab needs of the federal government and completely ignored the needs of the people who live in the areas designated to receive the benefits.
I acknowledged the unfairness of the existing program, but I suggested that a review and some new criteria would be better than completely removing the benefits from so many tax paying residents.
Although the Liberal government since its election one year ago has refused to review the northern tax allowance program at my request, I decided last week to try once again so that in the development of the 1995 budget the government might consider reinstating the program to ensure that additional tax increases are not going to be unfairly forced on northern residents.
I was pleased to learn there is the possibility of a review. I hope the government will again tonight confirm that it is going to look at this program and give the residents of a part of my constituency and other northerners some reason to be optimistic.