House of Commons Hansard #75 of the 35th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was seniors.

Topics

Budget Implementation ActGovernment Orders

3:40 p.m.

Victoria B.C.

Liberal

David Anderson LiberalMinister of National Revenue

Mr. Speaker, I am pleased to rise today to speak in the House about the government's commitment to an unemployment insurance program that provides adequate and fair protection for Canadians who have lost their jobs and are seeking work.

We are living in unusual times with many upheavals to our economic and social systems. This is not a time when we can be complacent. That is why this government is committed to ensuring that our social security system is brought up-to-date so that it can meet the needs of Canadians now and in the future.

The unemployment insurance program is an integral part of this system. It will be a key element in our reform of the social safety net and in the development of an economic policy that will guide Canadians into the 21st century.

In introducing these changes to the unemployment insurance program we have carefully weighed the needs of business, of the unemployed and of working Canadians. We wanted a program that would create and protect jobs but also one that would ensure adequate resources for low income families with dependants.

Let me for a moment examine these changes. Payroll taxes such as unemployment insurance premiums play an important role in job creation and, conversely, in discouraging the creation of new jobs. When businesses know that payroll taxes are going up they cannot stabilize their costs. Naturally they have concerns about future profitability. They may not be able to create new jobs or even sustain the jobs that already exist.

Our government wants to create a climate of stability that will enable business to create and maintain jobs in this country. Therefore, we intend to rollback the statutory rise in the unemployment insurance premium rate and to finance the shortfall in revenues through the amendments to the unemployment insurance program being discussed in this House.

The large accumulated deficit in the UI account means that the UI premiums should be rising to $3.30 next year. It is now $3.07, and the economy cannot afford such a big hike in payroll taxes.

Therefore we propose to reduce the premium rate to $3 an hour for 1995 and 1996, and if possible in 1996 the rate could be lower if the financial and economic state of the country and the unemployment insurance program in particular permit such a reduction.

Our second proposed change is to establish a stronger link between work history and UI benefits while remaining responsive to the needs of Canadians in different parts of the country.

We know working people face many different problems and challenges in different regions of the country. We want our unemployment insurance program to remain sensitive to the realities of seasonal work and the needs of people in areas of high unemployment. Therefore, our new proposal continues to include a formula that links extra benefits to the level of unemployment in a claimant's region of the country.

We have had to make difficult trade-offs between creating jobs on the one hand and maintaining benefit levels for unemployed Canadians on the other.

We believe that this proposal with its regional unemployment component is the fairest way possible to ensure that those people who need benefits actually get them. We know that most UI recipients go directly from UI to a job, and fully three-quarters of the people who receive unemployment insurance do not make full use of the maximum number of weeks of benefits to which they might be entitled.

Canadians want to work and the government wants to make sure that as far as possible they can.

The third change we propose to the unemployment insurance program is to provide greater benefits to Canadians with modest incomes who support children, an aged parent or other dependants. This is not an unprecedented move.

During the first 30 years of the unemployment insurance program's history, benefits were calculated based on family status and economic circumstances.

Many households today are under financial stress even though most families today have two wage earners. The reasons for this are many: increased part time employment which often pays less money than full time employment and provides fewer benefits; a higher general level of unemployment; an increase in one parent families; incomes have not grown in real terms since the mid-70s; and slow growth in individual earnings.

These trends have been particularly difficult for Canadian women and children. Women now represent 45 per cent of the Canadian workforce but unfortunately most of these women are working for low wages. On average a Canadian woman working full time today earns approximately three-quarters of that of a Canadian male. Many of these women are single parents bearing the full responsibility for their children.

Our proposal is to provide greater unemployment insurance assistance to those low income Canadians with dependants. This will have an immediate impact on women and children of our country who are most in need.

Under the current rules people who claim unemployment receive a benefit rate of 57 per cent no matter what their circumstances. Under our proposed changes there would be a two part benefit rate: 60 per cent for low income people with dependants and 55 per cent for others. With fewer unemployment insurance dollars to go around we believe it is only equitable and fair to ensure that the dollars we have go to those who have the greatest need.

The government estimates that this would improve benefits for 15 per cent of unemployment insurance claimants or about a quarter of a million Canadians and their families.

For these reasons-reducing premiums to create jobs, ensuring responsiveness to regional needs, and protecting low income earners-this Government proposes these changes to UI and rejects the Hounourable members' motion.

Budget Implementation ActGovernment Orders

3:50 p.m.

Bloc

René Canuel Bloc Matapédia—Matane, QC

Mr. Speaker, the minister was right when he said that Canadians want to work. This is quite true, and the same applies to Quebecers.

In Matapédia-Matane, the rural riding which I represent, my constituents want to work, and there are no ifs or buts about it. They are prepared to work for hours and do anything at all to put bread and butter on the table for their children.

I have a question for the minister. But first, an example. In our area farmers cannot start sowing because there is still snow in some places, although it is quite warm here. In the forestry industry, working 12 weeks instead of 10 is almost impossible in some places. That means these people will go on welfare.

There is another point I would like to make. The BDCs which help small businesses create jobs seldom invest in venture capital. My question is this: Even if everybody wants to work, and I must say I agree with the minister, would it be possible to take a different approach in a rural riding like mine? Could we not give more power to the BDCs so they could help people in small businesses create jobs and provide work by investing more venture capital?

Budget Implementation ActGovernment Orders

3:50 p.m.

Liberal

David Anderson Liberal Victoria, BC

Mr. Speaker, the hon. member who just spoke mentioned the need for a strategy that goes beyond unemployment insurance to include other measures to promote small and medium-sized businesses and bigger companies as well. We must create jobs. This is very important, not only for Canadians who are out of work but also for other Canadians who are always in danger of becoming unemployed.

It is also very important for the economy in general to have a lower unemployment rate and to get the unemployment rate down as soon as possible.

I do not know at what level unemployment is acceptable, but it certainly is not at the level we have now, which is about 11 per cent. I hope that, in the years to come, we will manage to bring unemployment down to less than 5 per cent. I hope we can, but even that may not be enough. However, it is possible to reduce the unemployment rate.

All I want to say right now in response to the hon. member's question, and I thank him for his question, is that there is a strategy with several components. Unemployment insurance certainly cannot create jobs.

This bill contains some major changes in general strategy in order to get money from the government to support education, training and other ways to help people find jobs.

In this debate we do not have all the other measures that are or will be before the House, but I can assure you that job creation is the cornerstone of the Liberal platform and the government's policy. Every day, in speech after speech, the Prime Minister keeps repeating that the government's objective continues to be to create jobs in order to give Canadians the dignity of work so that they can put bread and butter on the table for their families.

I can assure the hon. member that the sentiments reflected in his speech will also be reflected in a number of other measures, and meanwhile, the government is pursuing a major goal.

Budget Implementation ActGovernment Orders

3:55 p.m.

Bloc

Jean Landry Bloc Lotbinière, QC

Mr. Speaker, I listened to the member's remarks and I have a very short question for him.

During the election campaign, seven months and a few days ago, the Liberals told Canadians and Quebecers that they would not touch social programs. Could he explain why, after seven months and a few days, they have decided to cut those programs when they probably could have cut elsewhere and not harm the most vulnerable members of our society? I would like to know what he has to say about that.

Budget Implementation ActGovernment Orders

3:55 p.m.

Liberal

David Anderson Liberal Victoria, BC

Mr. Speaker, it is impossible for a responsible government and a responsible party to promise that there will be no changes to economic and social programs, or in other areas.

In order to have a modern economy, you have to make changes. During the election campaign, the Liberal Party never said that it would not make changes to the social programs, the unemployment insurance system or elsewhere. It never campaigned on that.

In the red book, there are several indications that the government was going to make changes. I can assure the hon. member that, if he reads the Liberal Party's holy book, he will see that the changes that are happening now had been planned during the election campaign.

Budget Implementation ActGovernment Orders

3:55 p.m.

Reform

Garry Breitkreuz Reform Yorkton—Melville, SK

Mr. Speaker, I spoke to Bill C-17 on April 14 during second reading and again in the report stage. I am pleased to be given so many opportunities to talk about the reforms to unemployment insurance and our income security programs.

In my previous speeches I summarized the changes to the unemployment insurance program. Of the six major changes proposed by the government the Reform Party supports five.

We used these previous occasions to encourage the government to go even further. I would like to use an illustration as to how we feel at this time.

If I went out to buy a horse, looked at it and it looked fine, and I began to examine it, I would start with the mouth. I would check its teeth to see how old it is and I would walk around it and check its feet. If I came to the back and I found a leg missing I probably would not accept it. I would not want to buy that horse. That is how we feel about a lot of these changes to the unemployment insurance system. It looks good but there are some flaws in it.

I listened to the complaints about changes to the unemployment insurance by the Official Opposition. Its concerns show us just how off track the unemployment insurance program is. It proves that unemployment insurance is perceived as a way for social engineers to redistribute income. It proves that unemployment insurance is no longer a true insurance program but a glorified welfare program. The Reform Party would like to change all that. The Reform Party wants to return unemployment insurance to a true insurance program, not a welfare program. We want to get this standing on all four feet, sound and well supported.

Reformers take great pride in getting the principles right before us, starting right at the beginning in reforming the program. The government has launched a two year process to reform our social programs and not once has the minister described the principles on which the government's reforms are based. We find this appalling that no principles have been put forth which this program would stand on. Canadians deserve better.

I challenge the minister and the Official Opposition to ask their constituents some hard questions about the future of our social programs and the future of our unemployment insurance program. I did not describe unemployment insurance as a social program because it is not, it is an insurance program.

If we are going to truly reform the system, then we have to start with two fundamental principles, two fundamental questions. First, why is the government in the unemployment insurance business? Second, why is unemployment insurance compulsory?

Reformers do not think that the government is qualified to answer these questions, but know that the Canadian taxpayer and the workers and the employers who pay the bills are. Reformers have been asking Canadians what they think for years now and we believe it is time the government started asking the same people what should be done.

If the government has the courage to ask ordinary Canadians what they think, it will be surprised by the answers. Here are some of the questions, and I want to spend most of my time outlining the questions that the government should be asking.

First, would taxpayers like to have social programs designed so that they eliminate all duplication between the federal government and other levels of government? Would they like programs designed that way?

Many Canadians see unemployment insurance and welfare as basically providing similar support for the same people. They see little reason for two large bureaucracies, one federal, one provincial, doing essentially the same thing.

It is time to make clear distinctions between income supplements and income insurance and to clarify exactly which level of government is responsible for delivering those services.

I also believe that the level of government that is closest to the people is most often in the best position to effectively administer these types of programs.

Second, would taxpayers like to have social programs structured to lessen the dependency on the system and encourage clients to become economically productive? This is the question the government should be asking.

Third, would taxpayers agree that our social programs should be designed in such a way as to encourage administrators to achieve the stated goals of the program, for example lower unemployment?

Fourth, would taxpayers like to have social programs that are financially sustainable? In particular, should the unemployment insurance program be self-financing? I wonder what the answer would be if we asked taxpayers those questions.

Fifth, if the government is going to initiate large scale reforms to our income security system and unemployment insurance programs, should the government hold a national referendum to ask for the approval of the majority of Canadians? If we make all these changes, should they not be given some say in the final outcome?

Six, would taxpayers prefer to have the UI program operate like a true insurance program, meaning that workers who make repeated claims on the system and employers who repeatedly lay off workers would have to pay higher premiums for the higher risk that they represent?

Seven, would taxpayers like to make our income security and unemployment insurance programs truly accountable? Would Canadians like to receive annual statements indicating how much they paid into each program and how much they received in benefits?

Eight, do taxpayers think that income security programs should be targeted to those who need them most?

Nine, would taxpayers prefer to have income security programs and the unemployment insurance program treat all Canadians equally regardless of the area in the country in which they reside? Should they be treated equal no matter where they are? While reformers believe that Canadians have a right to live anywhere they want in this great country we also believe that no one has a right to become a permanent ward of the state.

The next question is would taxpayers agree that the goal of the unemployment insurance program be to minimize and if possible eliminate all abuse to the system? I am sure that people would agree.

Eleven, do taxpayers think that the unemployment insurance program should be administered by the workers and the employers who pay the premiums? Further, let us ask if workers had a choice would they ask the government to administer the UI program for them? Would they hand over the reins? I think not.

Twelve, do taxpayers, workers and employers think that the unemployment insurance program should be completely voluntary, or should it be compulsory as it is now? That would be a very interesting question to ask.

Thirteen, would workers rather have a choice about where they invest their UI premiums? Would workers get a better return on their investment than the UI program offers them?

Reformers asked the government how many jobs would be created if workers were investing their UI premiums for themselves rather than sending the $8.3 billion to the government to redistribute. If they had that money to invest I wonder if there would not be more jobs created in this country than at present.

Fourteen, would unions not be able to provide unemployment insurance for their members if the workers they represent chose to contribute their premiums to the union rather than send them to the government? Would that not be a very interesting question to put to the workers and see what their answer would be?

Fifteen, would employers like to have the choice about where they would invest the $11.7 billion in UI premiums? Would they like to have some choice as to where to put that money?

Employers pay more UI premiums than their workers. This is a cost of labour for the employer and is really money coming out of the pockets of the workers. How many jobs would be created if employers were allowed to invest that $11.7 billion that is spent on UI premiums if they could invest them back in their company? What if they could put that money into training programs, into research, into development, into export and market development, capital improvements and expansion? The changes would be phenomenal if they had a choice as to what to do with that money.

On February 23 the Minister of Human Resources Development said in this House that reducing UI premiums will create 40,000 new jobs in this country. The Canadian Labour Congress in a brief to the standing committee on human resources development stated if seven cents off UI premiums resulted in 40,000 jobs created then reducing premiums $2.80 would create 1.6 million jobs, and we would have arrived at full employment.

That is what I call a real job creation program. What would employment be in this country? It would be zero if we created 1.6 million jobs. To be fair, the CLC is sceptical that if we reduced premiums that far it would create that many jobs. Reformers are not that sceptical.

Reformers believe that $1 left in the hands of workers or employers for them to invest is worth $5 in the hands of government, a ratio of one to five. Reformers have a much different vision about income security and income insurance programs. Reformers believe in asking Canadians what they think. Reformers believe in giving Canadians a choice. Reformers believe that changes as big as the ones proposed by the Minister of Human Resources Development should be ratified by the people in a binding national referendum.

These are huge decisions that we are making. That department alone administers $69 billion. The people know better than the government what needs to be done, and we ought to give them that choice.

For years now the polls show us that in many cases our government is doing the exact opposite to what the majority of Canadians want, whether it is on capital punishment, going easy on criminals, failing to cut government spending or on the unemployment insurance program. It is time to not only listen to the people but to act on what grassroots Canadians are telling us.

Reformers trust the people to make the right choices for this country. Reformers believe that democracy is not something that we practice once every four or five years in the voting booth. Reformers believe that democracy is something that has to be worked at and each and every day we serve our constituents as members of Parliament.

I have told the constituents of Yorkton-Melville that I am their voice in the House. I sincerely hope that each and every member has the courage to ask the tough questions and to represent their constituents' wishes in the House as Reformers do every day.

Let us get our UI program on a solid foundation. We would not buy a horse with three legs. We would make sure that horse is solid and firm. That is what we have to do. We have to get principles in place.

Budget Implementation ActGovernment Orders

4:10 p.m.

Bloc

Jean Landry Bloc Lotbinière, QC

Mr. Speaker, I listened earlier to the speech made by my colleague and there is one thing that I would like to add first, namely that the way they are going now, if they cut where they would like to, he would not even be able to afford an artificial leg for his three-legged horse.

But the tenth point he made was about eliminating all abuses to the UI system and I would like to comment on that. You know, we all agree that people should not be abusing this program. However, I would like him to tell me first what percentage of claimants abuse the system and second, since unemployment insurance is financed by the men and women of Canada, of Quebec, are we going to penalize all the members of a family with ten children, let us say, when only one is guilty? I have a logical answer to that and I would like him to clarify the tenth point he made, when he said that we must put an end to all abuses of the system. Does it mean that it is necessary to penalize all the people of Canada and Quebec?

Budget Implementation ActGovernment Orders

4:10 p.m.

Reform

Garry Breitkreuz Reform Yorkton—Melville, SK

Mr. Speaker, I appreciate the comments but I cannot agree with the analysis here. If one had a horse missing one leg of course one would not buy a wooden leg or prosthesis for it. That is not going to fix it but that is what this government is trying to do. It is tinkering with the system.

It is making little changes here and there. It is like putting a wooden leg on a horse. It is not going to win any races and that is the same with the programs that it is trying to tinker with, trying to change. It is just like putting a wooden leg on a horse. We cannot do it that way. We have to establish some sound principles. We have to decide what is important. Is this an insurance program or is it a welfare program? That is the basis on which we should put our UI program.

I do not believe in penalizing people and hurting them. We have a welfare system in place. It has a certain job to do. Let us make sure it is doing the job and let us make sure the UI insurance program is doing its job.

I quoted the numbers. I do not see how anyone can argue with them. Employees contribute over $8 billion to this program. Employers contribute over $11 billion. Just think what we could do with that money if we left it in their hands and let them administer these things. We would not have the problems we have now. However, when government gets involved it takes $5 to do what someone in the private sector would only take $1 to do. That is the key thing we have to remember in all this. We can argue all these fine little details but we need to make some wholesale changes.

Budget Implementation ActGovernment Orders

4:15 p.m.

Liberal

Andrew Telegdi Liberal Waterloo, ON

Mr. Speaker, let me start by addressing the comments made by the previous speaker from the Reform Party.

Part of his comments were that municipal governments, local governments are closest to the people and they are best able to make choices in how we might run the country. The inference was to let them have more say in how federal government moneys are spent and let us try to do more to co-ordinate.

I have absolutely no problem with having that take place. I think co-ordination of effort by all parts of government is something that would be very cost effective and it would serve the people and all local governments very well, as well as the provinces.

Let me draw a little more on my municipal experience. I spent eight years with the regional municipality of Waterloo and the city of Waterloo. Somehow there was a better focus on debate. There was a better focus on trying to do what was best for the citizens of the community in a lot less partisan fashion that happens in this House.

Being in the House today and listening to some of the debate on Bill C-17, as well as having been through question period, the amount of sanctimony coming from the opposition as well as the non-official parties is bothersome.

I heard references that go back to the 1972 Liberal government. I am part of the class of 1993. In 1972 I was not involved in partisan politics. I know what happened in 1972 but some of the programs that government came out with in 1972 are really not applicable today.

Let me read something for members. I am going to quote very briefly from a presentation made to the Conference Board of Canada by the chief administrative officer of the city of Waterloo, Mr. Bob Byron, with whom I had the pleasure of working. I found him to be a new breed of civil servant, a new breed of manager. I can say that Gerry Thompson, who was the chief administrative officer at the region of Waterloo, is also of the same mould.

He talks about governments and how municipal governments are experiencing severe reductions in sources of revenue. He states: "To compensate Waterloo has significantly reduced its workforce and actively pursued lesser cost activities. However, these are short term measures and further effort is required to achieve long term permanent savings.

Traditionally local government has looked first at its expenditure requirements and then at where the revenue would come from to support the expenditures.

What needs to be done is to look at what revenues are available and then decide how expenditures can be controlled to fit the resources available.

I believe that simply raising taxes is counterproductive and serves only to create additional hardships on businesses and individuals faced with prospects of little or no growth in their revenue potential. Reduction in service or service level which tends to alienate the taxpayer is not a solution. The solution lies in productivity gain and lowering of costs".

Certainly from the municipal perspective in Ontario that is a very good and prudent approach.

One thing that the municipal government does not have to do in our system in the Waterloo region is to offset the cost of high unemployment. The municipal government in our jurisdiction does not pay for social assistance. The regional government does. It has a different approach. Because regional governments have to pay 20 per cent of the welfare costs, when their budgets

get tight they cut back on expenditures on hard services such as sewage, roads and what have you.

I mention this because at those two levels of government you have different mandates. The regional government has no option. It has to provide 20 per cent of the welfare costs. The municipal government does not have to do it so it can plan much better within the terms of its fiscal realities.

Debates at the local level tend to bring together the collective wisdom from different frames of reference in an non-partisan fashion on to the issue. We really try to accomplish what we believe is the best for the ratepayers of our municipalities.

I do not find the same level of co-operation in the House. It seems to me that the job of the governing party, of which I am a member, is to put forward programs and the job of the opposition is to oppose it. Whether it is consistent in its opposition really does not matter very much.

I can talk about some parts of the debate where arguments came from every different angle. We have had the Bloc say that the government should not be looking at social programs, it should not be looking at health care programs, let us keep the status quo because somehow it has served us well.

The Bloc even went further and said that we did not talk about the reform of social programs or the reform of the health care system prior to the election. We did. We talked about reforming health care and there were very good reasons for it. The reasons are the way our health care expenditures have been going. We cannot just keep throwing money at a very necessary service but one that needs to undergo fundamental reform.

If you can practise preventive health care you are going to save billions and billions of dollars in terms of providing the level of service to the Canadian public that they have come to expect.

Another nice thing about it is that by doing preventive health care we also have the opportunity of having a healthier public. One of the problems we have had in the health care system is that it has been sort of a crisis care, when you get sick you go to the doctor. If you look at the mortality rate over the last 100 years, the reality is that it was not the medical profession that cut it back so drastically. It was the civil engineer who was able to provide safe, wholesome water. It has been our ability to handle waste that has made the greatest impact on health care, as well as the medical officers of health. They have been the ones who have been working on health care in the preventive sense.

Now we are looking to see if something better can be done to make better use of the dollars we have. I think that is very important. We know social services have become very expensive and that is the reason we are having the social services review.

One thing I would stress when we examine the whole issue of social services is that the Canadian public wants a safety net to catch people at a time when they might be totally disabled and we expect to support them for the long term. Certainly if they become unemployed they want us to support them in a new emerging economy where training, retraining and education become very strong components and pillars of our whole economic system.

The expectations are in the long term that no longer can people work for one company for 25, 30, 35, 40 or 50 years. The chances are they are going to be moving on to a number of different jobs. As firms get smaller they are getting smarter. They are better at responding to economic conditions. Those are going to be the major employers and the creators of new jobs.

The budget recognizes this and deals with it when it says that 85 per cent of the new jobs are going to be created by small and medium sized businesses.

When I talk about small and medium sized businesses I speak for the federal riding of Waterloo which is really one of the leaders in the new economy that has emerged. It is exciting but it also takes a lot of work trying to keep up with the changes that are taking place and watching the new emerging technologies.

Sunday evening I spoke with a gentleman from Elmira from Brubacher Technologies whose family for generations has been involved in shoe repair and building shoes. Now his company is going to be getting into the high tech production of orthopaedic shoes. Why is it exciting? It is exciting because at the present time it might take his company 40 to 60 hours to make one shoe and now because of high tech he is going to be able to do it in 40 to 60 minutes. His business is a world leader in this area.

Many other companies are leaders in the high tech field. We recently had a software firm which sold for $100 million. It was developed by a number of university professors and it had a number of university students involved with it. That is not a bad sum of money when you think about it. However, the sad part is that the new owners are American.

The challenge for us is to somehow create a climate where those businesses which are on the verge of becoming big businesses will stay in this country.

I mentioned that I found the debate to be not very consistent on different levels. When I was looking through my Quorum today, as I am sure everybody else has, I came up with a story from the Vancouver Sun authored by Barbara Yaffe. She asks: ``Do we need more MPs? Let's look at the cost''. I know that the Reform Party is very strong in its opposition to us looking at the whole question of the boundaries.

I would like to step back a little bit to my municipal mode. It is interesting that about two weeks ago I was at the electoral boundaries commission meeting. Of course, I am the Liberal member of Parliament and my former colleague, Mayor Brian Turnbull, who is a staunch Conservative supporter, was there to support me in my quest. We do not want the wholesale rearrangement of boundaries in the region.

The other interesting thing is that the NDP candidate in the last election, Scott Piatkowsky, was also there making the same pitch. A motion from Waterloo city council was also moved speaking to the point that we do not like how the redistribution was proposed and we wanted to keep the boundaries intact. That motion was moved by the former Reform candidate who is now on the Waterloo city council. Following my presentation, my colleague from Kitchener made a similar presentation. The former member for Cambridge from the Conservative Party also came forward to make a presentation.

The reason I recount this is because it amazed me. I have been on the Hill for a time and we have partisan politics. Somehow we are not able to capture that sense of community where party lines are crossed to preserve the integrity of communities. That is essentially what we did when we were in Hamilton talking about the redistribution.

It would be very useful if we could bring that kind of spirit to the debates in this House. We probably would strengthen the country. Of course there is no question that the Bloc Quebecois is not interested in strengthening Canada, certainly not with Quebec in it. That is what they campaigned on and we all acknowledge it.

What is bothersome though is at a time when there is fiscal instability around the world and a lot of our economic performance depends on the confidence of the fiscal markets, it is unfortunate that debate is being ignited even more so by the leader of the Reform Party. I thought it was just the bailiwick of the Bloc Quebecois but I see the Reform Party is picking it up. That is too bad because at the beginning of this session in January the leader of the Reform Party would stand up and say he did not want the Prime Minister to break his promise not to discuss the Constitution, that he wanted us to get on with other business. It is unfortunate he has forgotten those statements.

I raise that because another area where the Reform Party has been less than helpful is with the fiscal markets. It is forever trying to say the road we are headed on is going to bankrupt this country. It has only been six months since the election. During that time we put our plan forward to the electorate. That plan was the famous red book. When I was at the committee on human rights and the disabled today, I was glad to see one of the Reform Party members quoting from it, which is good.

However we came through with a plan and we are essentially keeping our promise of doing what we said we were going to do if we got elected. I do not believe that Reform Party members would truly expect us to go counter to what we said we were going to do.

Let me touch on another point before closing. There is no question in my mind that government, certainly at the federal and provincial levels, has to get a lot more efficient. I have raised an issue, as most of my colleagues know, on waste and move management by the government. I think we can improve that. I look forward to improving that and I look to the minister of defence to realize some savings in that area. I am sure all members could act in that fashion collectively. Let us see to what extent we can eliminate waste.

This government has recognized the fiscal realities we are in. We said we are going to bring down the deficit to 3 per cent of the GDP within three years. We recognize the deficit problem cannot be solved by cutting out programs, the safety net and the UI benefits which are put in place to assist the people most hurt by the downturn in the economy.

We recognize that job creation has to be part of the solution. There is no question in the mind of my government that the best social program we can have is to make sure there is the economic climate so that all those people who want to work are able to work and contribute to society.

I call upon members of the opposition to support that aim. Ultimately we are talking about developing the Canadian people. We are talking about developing the country and we are talking about keeping our country united.

Budget Implementation ActGovernment Orders

4:35 p.m.

Reform

Ken Epp Reform Elk Island, AB

Mr. Speaker, I listened with great interest to the hon. member's speech. I appreciate his sentiments with respect to working together as opposed to engaging in the rhetoric of partisan politics. However, I was very disappointed by his comments with respect to our being in opposition and therefore always opposing. I do not know how he did not hear what we have been saying today. The elements of Bill C-17 that we support were clearly enunciated. We basically support most of it.

The freezing of salaries makes a lot of sense. The government proposes it and we agree with it. We are on the same wavelength. We agree on the capping of the transfer of money through the Canada assistance plan. On the reduction in transportation subsidies though it affects us most vigorously in the west, we agree. In these times of fiscal restraint, those things need to be done.

I challenge this concept of the previous speaker when he says we always oppose because we are in opposition. No, we are here to debate the issues. I am very deeply committed to not reduce myself to name calling. Let us stay on the issues and if we agree, then let us say we agree.

On reducing the UIC rates, I really could not agree with the member more. As was previously stated today, if that reduction of seven cents is so significant in creating jobs, perhaps we ought to look at it further.

At the Northern Alberta Institute of Technology where I worked before, 750 instructors together with the employer portion contribute an amount of money which would give about 60 people jobs, each at $35,000 a year. That is from 750 instructors at NAIT.

Clearly that money left in the hands of the individual would be very useful in creating real ongoing jobs. Someone could then afford to have their leaking roof fixed instead of just paying their taxes and UIC premiums and getting nothing for it. The individual would have a job instead of the benefit of UIC.

I appreciate very much those members in the Bloc who are saying that we are threatening the very poorest among us, but that is very narrow thinking. That is saying that all we can do to help poor people is to give them a handout in the form of UIC or welfare. The most significant thing we can do for them is, as the hon. member just said in his speech, to provide an economic climate in which there is prosperity. That is done by reducing government spending and allowing the marketplace to be strong.

I appreciate the member's speech. He has said a lot of good things, but I would encourage him to listen more carefully before he jumps to the conclusion that we are always opposing. We are not.

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4:40 p.m.

Liberal

Andrew Telegdi Liberal Waterloo, ON

Mr. Speaker, let me respond to that. I will expect Reform Party members to support us whenever we say we are going to have a reduction but the feeling I always get from them is that we have not cut enough. There is not that sense that we have a balance in how much we have cut. I listened to the hon. member and the only thing missing was his saying that if we were to cut more his party would have supported it more. I am calling on that recognition to find a balance.

In the debate on the infrastructure program Reform Party members opposed it in general, as a party and as individuals. I can only point out that is part of the balanced approach and investing in the infrastructure of this country will give us the opportunity to have growth. That is a role for government in the expenditure of public funds. Private enterprise is not in the business of building public facilities such as roads, sewage treatment plants, and what have you.

I remind Reform members to be a little more balanced in terms of the cuts and to recognize that cuts alone without control are not going to solve our economic woes. We have to have a much more constrained level of spending. We have to be much more fiscally prudent. At the same time we also have investments to make which we as a government believe we have to do.

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4:40 p.m.

Reform

Margaret Bridgman Reform Surrey North, BC

Mr. Speaker, I direct my question to the hon. member for Waterloo.

In relation to the opposition, his statement was that government proposes programs and the opposition opposes programs. As my colleague has pointed out, our role in opposition is not to carte blanche oppose programs. It is to identify possible weaknesses or omissions and to offer constructive criticism and possible alternative solutions.

The final decision still rests with the party in power. Its role is to make those decisions possibly based on other considerations. Our possible options may appear as not being constructive but on the other hand the decision is there for the government to make.

I am extremely pleased the member is as aware of Reform policy as he is of his red book. He reminded me of a lot of Reform policy today in his speech.

The hon. member made reference to the fact that 85 per cent of jobs are provided by small business and he also made reference to high tech coming into small business. I would like to hear his comments in relation to high tech possibly eliminating a number of jobs in small businesses and it is the small businesses that are being hit by taxes and low wages, et cetera.

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4:40 p.m.

Liberal

Andrew Telegdi Liberal Waterloo, ON

Mr. Speaker, there is no question that there is a historical role to official opposition parties and third parties and other oppositions that are not official.

What I saw when I walked into this House today is something we see every day. Canadians come from across this country. They take pictures and have great respect for this institution of ours. It amazes me that if I were to listen to the debate in this House long enough I would get the impression we were a third world country and we were going to be bankrupt next week and the whole country was going to fall to pieces. We know that is not the case. I was looking forward to a kinder and gentler House. We started off talking about that but somehow the rhetoric since the start of this 35th Parliament has not followed that up.

Certainly on the second point the member says she is glad I am aware of Reform policies. The point that needs to be made is that most members of the House are new. The class of '93 has a different perspective from that of previous Parliaments.

I dare say the thinking of most parliamentarians who returned and have been here for a number of years-some have been here for a number of decades-has changed in terms of current realities. I like to think of myself as a small r reformer. I have been one ever since I have been involved in municipal politics and in community activity preceding that. I will continue to be a reformer a long time after I am gone from this place. In terms of high tech hurting small business, I guess in the new, changing economy we as a country have to make sure we are playing a major role.

I refer to my experience in the federal riding of Waterloo. It is the home of the University of Waterloo, an excellent technical university. It also has a good arts program. Sir Wilfrid Laurier University is down the street and is very strong in business. In our community we are very much players in the new economy. We are seeing the creation of thousands and thousands of jobs. I can only say that it is working for us. We have the lowest unemployment figures in Canada at 7.1 per cent. Of course many of our firms are exporting. It is amazing how many of our export firms are bringing hundreds of millions of dollars into the Canadian economy.

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4:45 p.m.

The Acting Speaker (Mr. Kilger)

Order. It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Mercier-Fisheries; the hon. member for Yukon-Employment.

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4:45 p.m.

Bloc

Yvan Loubier Bloc Saint-Hyacinthe—Bagot, QC

Mr. Speaker, I am glad you allow me this new opportunity to talk about Bill C-17.

Ever since the finance committee formed a sub-committee to study Bill C-17, a measure implementing the largest reform of the unemployment insurance program ever undertaken by a federal government and freezing the salary of public servants, among other things, I have closely followed this matter, as a member of the committee and as an opposition member provided with limited means. I have tried to do a little more than my Liberal friends, I have tried to make democracy speak.

You know that, despite the fact that this bill is the largest reform ever done of social programs in general and unemployment insurance in particular, the Liberal government had planned on only two days of hearings, including one with senior officials who were to explain to sub-committee members the provisions and technical interpretations of Bill C-17. Without the intervention of the Bloc Quebecois which demanded that we make a more thorough study of such a fundamental piece of legislation for social programs and for the future of many communities in Quebec and Canada, we would not have had, like we did, the equivalent of a week and a half to hear witnesses.

I can understand why, this morning, when the secretary to the minister of industry, trade and commerce rose to speak on Bill C-17, he did not dare speak about it, because he was ashamed of that bill. Selling Bill C-17 is an impossible task.

That is why he naively spoke about his recent trip to China. Do you realize, Mr. Speaker, that they are proposing a $5.5 billion cut in the UI system over the next three years. It is all about the despair of the many individuals who must endure the evils of unemployment, the plague of unemployment, in Quebec and in Canada, but the Parliamentary Secretary to the Minister of Industry would rather tell us about his trip to China.

I was outraged when I heard him. I controlled myself, since control is still the best attitude, but I want to say now to my Liberal colleague, the Parliamentary Secretary to the Minister of Industry, that the way he is dealing with this bill is outrageous.

You were here this morning, Mr. Speaker, so you heard as well this same member, and others around him from the Liberal Party of Canada, shouting down duly elected members of the Bloc quebecois and tarnishing their reputation. Not only according to Quebecers who elected us, but also to Canadians in general, on basic issues such as the future of social programs, the economic policy, the disgraceful benefits enjoyed by the richest Canadians-family trusts-the Bloc Quebecois is the real Official Opposition.

Without us, many more objectionable measures like the ones implemented since the February 23 budget and measures that are unpopular and harmful to ordinary citizens, to taxpayers, would have been adopted by the government since it took power.

When a bill or government measure is indefensible, it is normal that members opposite resort rapidly to insults since it is the only weapon they have to sell a plan that is rotten from the start as far as unemployment insurance is concerned.

As my colleague, the hon. member for Mercier, did this morning, I would like to point out that close to 60 per cent of the planned cuts in unemployment insurance for 1995-96 will hit two regions: first, the Atlantic, and second, Quebec. It is 60 per cent even though these two regions have only one third of Canada's population.

Indeed, in 1995-96, the Atlantic provinces, with only 8.5 per cent of the population, will lose $630 million, bearing 26 per cent of the cuts for that year. The same thing will happen in Quebec, where the federal government will cut $735 million in unemployment insurance benefits, or 33 per cent of the total for

that year, when the province has only 24 per cent of the Canadian population.

From the beginning, there was an East-West split in the decision to dip into the UI fund. In 1990, in Quebec, we had the report titled Deux Québec dans un . Some of my colleagues remember very well that that report identified two Quebecs: one that was participating in and benefitings from economic development, and the other, rural Quebec, that was excluded.

The measure proposed by the federal government also identifies two regions where unemployment and underemployment are most widespread. There is more widespread unemployment and underemployment in these regions than any measure contained in the red book can ever solve, despite the fact that those people have shouted themselves hoarse, some to the point of losing their voices, waving the red book and claiming that jobs were the priority of the Liberal governement. In spite of all this, no concrete, meaningful, structural measures have been put into place in order to create sustainable employment. Instead, the government chose to take it out on two regions which do not deserve that, precisely because they are regions where underemployment and poverty are the most striking.

The measure to increase from 10 to 12 the number of weeks of insurable employment required to be eligible for unemployment benefits, which are themselves reduced in terms of percentage and of the number of weeks covered, has plunged several rural communities into utter confusion. These communities have already suffered, in the case of the Maritime Provinces, from the reduction of the fishing activity, from the reduction of the farming activity because of low prices and of the international crisis and from the reduction of forestry activity, all of which are seasonal.

The measure to increase from 10 to 12 the number of weeks of insurable employment required to be eligible for unemployment benefits directly affects the Maritime Provinces and part of Quebec, in particular the Lower St. Lawrence and the Matapédia-Matane areas and, in general, the Gaspé Peninsula. In these regions, where the activities are concentrated in one industry or are seasonal, many already had difficulty gathering the 10 weeks of insurable employment previously required.

I was flabbergasted when I realized that 60 per cent of unemployment insurance cutbacks would be made in the Maritimes and Quebec, particularly because the Maritimes were really hit in a horrible way. I was shocked when I thought that the current Prime Minister was once the member for Beauséjour and that, while he knew about the social and economic realities of that riding, he had accepted, as leader of the government, that such disastrous measures for rural communities be put in place.

I was even more flabbergasted when I heard the Prime Minister allude recently to the people of Beauséjour and said that the unemployed were beer drinkers. I understood then that our Prime Minister, when treating the unemployed this way, the most disadvantaged people of our society, when saying things like that, was not a head of state because a head of state has to show respect for the people who elected him and allowed him to be the member for that riding for four years and to come back into politics. I found that to be really shocking, coming from a Prime Minister.

Besides, what we heard from the Prime Minister and what I saw in the committee which examined Bill C-17 are very much similar to systematic cynicism. I also had to live for two weeks with sarcastic remarks from my Liberal colleagues. I am still calling them my colleagues even though I am deeply disappointed with the attitude of the Liberal members on the finance sub-committee.

We had witnesses, mainly from remote areas in Quebec, such as the Lower St. Lawrence, the riding of my colleague from Matapédia-Matane, and also from Gaspé. People came before the finance sub-committee from Newfoundland and Labrador where, at times, unemployment reaches 85 per cent. These people do not know where to turn to. They had pinned their hopes on this new government which talked about creating jobs, as well as restructuring and diversifying regional economies. They believed in the government. So, now that it has hit them with those measures, they do not know where to turn to anymore.

We had people from Nova Scotia, Prince Edward Island, and from both Acadian and anglophone communities in New Brunswick.

I will quote from a short newspaper article to illustrate the cynicism and the sarcasm shown by the Prime Minister who attended these sub-committee hearings. This article was entitled "New Brunswickers appearing before a sub-committee on unemployment insurance reform are kicked out after barely an hour". They kicked out people who came all the way from New Brunswick, even before their allotted time had expired.

If you allow me, I will quote Mrs. Mathilda Blanchard, who has been a union activist for the past 40 years. She said: "I have never been treated that way in my 40 years as a trade unionist". And you can read further that: "After coming to Ottawa, all the way from New Brunswick, to discuss the impact of unemployment insurance reform on her area, she and another group were cut short after only 30 minutes. The two other groups from New Brunswick that came after her were treated the same way".

In conclusion, the parliamentary committee which was reviewing Bill C-17 and certain budget provisions summoned to

Ottawa four Acadian groups but gave them only a total of 60 minutes to explain the consequences of the reform, when they were entitled to twice that time.

However, a number of business representatives, friends of the party who benefit from what we call tax loopholes and tax conventions, did voice their support for the government's measures. These individuals also receive preferential treatment from this government and contribute to the Liberal Party's coffers. This one group alone was allowed to testify for 47 minutes, whereas normally they would have been entitled to 30 minutes. However, because they were voicing their support for such hateful measures as cuts to unemployment insurance and because they spoke the same language as the government, viewing the jobless as lazy, they were allotted 50 per cent more time than they would normally have had.

I am flabbergasted to see that, in politics, there are people who behave this way toward Quebecers and Canadians, and dismiss offhand the lives of others, people who have no sense of fair play, the fair play which the members opposite claim to have, the same members who profess to be great Canadian democrats who listen to all Canadians. When we see things like this happen, we have some very serious doubts about the honesty of these individuals.

I would also point out that when the witnesses from the Maritimes testified, no Reform members were on hand because, despite what they say about being great Canadians from coast to coast, each time an issue arises which affects that part of the country east of Manitoba where they have no representation, then they become a little less Canadian. I find this rather sad.

Thursday evening, on the last day of hearings, there was one Bloc member on hand and no Liberal members, except for the chairman, and no Reform members. Perhaps they prefer to go out and dine in a good restaurant on Thursdays. In any case, the scheduled witnesses were from Newfoundland. When they showed up, they were astounded and scandalized. That evening, we were quite pleased when we were told that there was only one party in the House of Commons willing to defend Newfoundlanders and Maritimers, and that party was the Bloc Quebecois. How very cynical of this government. The other party is also blatantly guilty of not taking matters seriously.

In view of all this, of the cynicism displayed by this government in spite of its positive bias for employment, in view also of the proposed cuts to the UI program and the way the people who are the hardest hit by unemployment are being treated, I cannot help but compare their treatment to the coddling treatment of Canada's wealthiest families.

This morning and again this afternoon, family trusts were discussed. We were reminded that, year after year, the government deliberately forfeits between $350 million and $1 billion in revenue, owing to a policy put in place by Pierre Elliott Trudeau in 1972 and commonly known as family trusts. I cannot help but contrast the preferential treatment given to the wealthiest families in Canada against these cuts to the unemployment insurance program and their destabilizing effect on rural communities in Quebec and the Maritimes.

I cannot help either, since the two bills were debated one after the other, but think about the tax treaties in Bill S-2 and how major Canadian corporations have managed to dodge taxation and pocket hundreds of millions of dollars every year. I cannot help but notice that this government will cut $5 billion in social programs, and in the unemployment insurance program in particular, over the next three years, and in that it treats ordinary citizens the way I just described.

I would have liked to speak longer, but you are signalling that I have only one minute remaining. I will say this. I urge the government to reconsider its position on Bill C-17, in particular regarding the proposed cuts to unemployment insurance, because these measures will completely destabilize several communities in the Maritimes and in Quebec.

I would also request, with respect to another measure contained in this bill, namely wage freeze, to return to a better frame of mind. Twice in the matter of four years action had to be taken by the International Labour Office to remind the Canadian government it is required to abide by international conventions concerning free collective bargaining. When in opposition, the Liberals denounced the freezes imposed by the Conservative government, but they are now following their lead.

I am calling for a return to a better frame of mind because the government cannot go on like this, treating the people of Quebec and Canada with the kind of arrogance, sarcasm, cynicism and brutality they have demonstrated over the past few months. I hope for a return to a better frame of mind.

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5:05 p.m.

Reform

Jim Silye Reform Calgary Centre, AB

Mr. Speaker, I too serve on the Standing Committee on Finance and I am very disappointed in listening to the previous member's comments. It seems to me that he has a different version of the facts than I have. I was there and heard some of the comments and some of the explanations given.

With respect to the people he had invited who were kicked out and went to the media after, it was quite clear that some of the parties did not have an invitation or arrived unexpectedly and were allowed to present their cases. Both of them agreed that they would present their cases within a half an hour. The chairman of the standing committee gave permission for that

and co-operated so that both parties could be heard, and this is the appreciation they get. The grandstanding and the criticism in the press came after that.

I was present, I heard the explanation to that and that is a different set of facts. I am just saying what I saw and what I heard differs from what the hon. member just said.

His decision to put on a flair that he is the person now representing all of Canada because he has such an interest and such a caring heart for the unemployed is adverse to reality. Everybody cares about the unemployed, but we also have a concern about the deficit and the debt. We also have a concern about how to approach it.

For a member who quite clearly wants to separate from the rest of Canada to state and argue and present a case that we are not for Canada borders on double talk or contradiction of terms.

He is talking about a member of the Reform Party being present or not being present at these committees. I was not the individual named to the subcommittee that examined Bill C-17. I am sure there were problems getting people together. I am sure it was hard to co-ordinate it all because there are only 100 things that you have to do within an hour around this place.

If he truly were interested in representing his point of view, representing his argument, I suggest that he would go a lot further in accomplishing those goals if he pointed out the problems of Bill C-17 as we have, pointed out the constructive alternatives to Bill C-17 as we have, and then let the House decide which way to vote instead of going around and basically distorting the way events actually occurred.

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5:10 p.m.

Bloc

Yvan Loubier Bloc Saint-Hyacinthe—Bagot, QC

Mr. Speaker, I will start with the hon. member's last remark because it makes me a little angry. He said that, instead of criticizing as I do, I should point out the problems of Bill C-17 and propose solutions. Mr. Speaker, we just went through second reading of Bill C-17 and Reform members were too lazy to do anything other than delete clauses. They also voted against their own amendments and they are now telling Bloc members who put forward constructive amendments meeting the concerns of Quebecers and Canadians to make constructive suggestions. So why did they make all these deletions?

In any case, even colleagues with more experience than me had never seen anyone propose such amendments and vote against their own amendments. If they call this being constructive, we also call it wasting our time. If they think the way they acted during the second reading debate is constructive, we have a problem. We, on the other hand, proposed real amendments. We also did some serious work in committee.

In answer to the second point raised by the hon. member when he said that Reform members were present the night the New Brunswickers were thrown out, I would ask him to refer to an article published in the May 11, 1994 issue of Le Droit , where the journalist noticed the same thing I did in the finance committee, namely that no Reform member was present. It is there in black and white. There is a problem somewhere.

In the third point he made, he said that Bloc members felt deep compassion for the people of the Maritimes. Indeed, even sovereigntists can be humanistic and feel compassion for suffering people but we do not feel as compassionate toward those who make them suffer.

Do not forget that the sovereignty plan is open to the world and that we have been reaching out for 25 years to our friends in Canada, the United States and the world to build a better society, a society where measures such as the UI proposal that break the backs of those who do not deserve such treatment will be opposed by sovereigntists. We will fight against that our whole lives because the sovereignty plan is strongly humanistic. You tarnished that term and our plan. Because people like Pierre Elliott Trudeau fought against this plan for 25 years, we must work very hard to restore the true foundations of this plan, which is open to the world, compassionate and humanistic.

Mr. Speaker, that takes care of the three questions raised by the hon. members.

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May 31st, 1994 / 5:10 p.m.

Liberal

Barry Campbell Liberal St. Paul's, ON

Mr. Speaker, I guess we can conclude that the member opposite is not happy with the bill.

I was chair of the subcommittee on C-17 and I want to congratulate all members of the subcommittee from all political parties in this House for their work and the time they spent hearing innumerable witnesses, almost some 60 witnesses representing hundreds of thousands of employed and unemployed Canadians. Members of the subcommittee spent many hours listening to Canadians and their views both for and against the changes contained in Bill C-17.

The fact remains that the changes proposed will preserve the viability of this system. The changes proposed will build flexibility. The changes proposed make sense at this time for people on the system.

While the member opposite may wrap himself in all the indignation in the world, the fact is that he did not like the bill from the beginning. He was not prepared to hear anybody who was in favour of it. I will not get into discussions in the House about what took place in committee. I will not discuss that out of committee except to say that people on all sides of the issue were given a full and fair hearing.

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5:15 p.m.

The Acting Speaker (Mr. Kilger)

It being 5.15 p.m., pursuant to order made Tuesday, May 3, 1994, it is my duty to interrupt the proceedings and to put all questions necessary to dispose of the third reading stage of the bill now before the House.

The House has heard the terms of the motion. Is it the pleasure of the House to adopt the motion?

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5:15 p.m.

Some hon. members

Agreed.

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5:15 p.m.

Some hon. members

No.

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5:15 p.m.

The Acting Speaker (Mr. Kilger)

All those in favour of the motion will please say yea.

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5:15 p.m.

Some hon. members

Yea.

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5:15 p.m.

The Acting Speaker (Mr. Kilger)

All those opposed will please say nay.

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5:15 p.m.

Some hon. members

Nay.