Mr. Speaker, for the benefit of those who were not listening when I was interrupted by question period, let me briefly summarize what I had said in the first half of my speech.
The first point I made was that the deficit needs to be addressed aggressively. We need to go to a balanced budget and then to a surplus budget as quickly as possible.
However, there are pressing and very urgent social problems within our country, the primary one being child poverty. I would like to encourage the Minister of Finance to put in February's budget approximately $500 million for a child poverty program through the tax system, called a working income supplement which would put approximately $1,000 a year in the hands of the poorest working families with children. I am sure this money would be well spent.
The question then arises, if we believe in cutting the deficit, balancing the budget and in spending more money on child
poverty, where does the money come from? I would suggest that one area is the defence department.
Let me say before I get to my main point that I do not disagree with defence spending per se, only some parts of defence spending. We need to look at the defence budget and decide that we cannot have a military that tries to be all things to all people.
For example, we should get out of the submarine business. Recently, members may have read in the newspapers that Canada's three submarines, which represent our fleet, were in Halifax for maintenance. I do not know if any of us felt any less secure knowing the submarines were in Halifax. I do not know if any of us will feel less secure tomorrow if we got out of the submarine business.
Certainly we do not need to buy old British submarines for Canadian defence. We do not need the subs to hunt subs. Since the cold war ended there has been a shortage of submarines to hunt as the Russians are mothballing their subs.
We do not need subs to patrol our coastal waters. Our existing frigates and destroyers, brand new coastal patrol vessels, underwater sensor sites, radio intelligence sites and non-military assets such as the coast guard and fishery patrol vessels are more than capable of doing the job.
We do not need the subs to monitor UN embargoes. The frigates and destroyers can do that already and they can do it more effectively.
We do not need subs to patrol Arctic waters. The sub DND wants to buy cannot operate under the ice.
Cutting defence spending is only one example of where money can be found to not only address the deficit but also address child poverty. Another example is the whole issue of tax expenditures.
The finance department and the Minister of Finance need to understand that a tax expenditure is just like an expenditure in any other area. For example, the money we spend on subsidizing RRSPs or RPPs, which are retirement savings plans, through the tax system unduly benefit the well to do. They do little to improve the life of the middle class and lower economic classes. In short, they are a benefit primarily for the rich.
I want to make a very modest proposal. We should lower the limits for RRSPs and RPPs to $10,500 from a current level of $13,500, a level that is set to rise to $15,500. This very modest proposal would not affect anyone making less than $70,000 a year annually and, by the department's calculations, would raise approximately $550 million for the national treasury. This is exactly the amount of money that I suggest the government spend on a child poverty program.
At this time of Christmas I want to ask Parliament, the Minister of Finance, the government and all Canadians to look at our country and recognize that we have many assets to build on. I am optimistic for our future. I recognize that not all Canadians are participating in the economic recovery and the ones who are most vulnerable are children and children going hungry. Notwithstanding that we have other urgent and pressing concerns like balancing the budget, we should address the needs of those children in this year's budget.