Mr. Speaker, it is a pleasure to speak in support of Bill C-224, an act to require charitable and non-profit organizations that receive public funds to declare the remuneration of their directors and senior officers. My colleague from Hamilton-Wentworth has spent a great deal of time and research on this matter in the interests of deficit reduction and in the interests of the Canadian taxpayer.
Accountability has been the battle cry of the 1990s. We have heard this cry coming from all sides: from business, from special interest groups and most important, from the individual Canadian taxpayer. What this bill does is provide for accountability in the charitable and non-profit sector of the economy, and the very large segment of the economy that it is.
This bill is about disclosure of the real value of non-profit and charitable organizations, not only in the human resource but in financial dollars to the Government of Canada. The people of Canada have a right to know. The reason I believe this is that we rationalize our growth as well as our debt against GDP. Therefore it is very important that we have accurate information on the real value of GDP. It should include the value to the Canadian economy of non-profit and charitable organizations.
This bill is not intended to harm or embarrass anyone. However it is intended to provide transparency and accountability. While Canadians hold their government responsible for its actions, they also trust it to report on all public matters with accuracy, openness and truthful representation.
These same keystones must exist for charities and non-profit organizations which receive public funds. After all, if government is to be fully accountable to the Canadian people and if we are to efficiently execute our mandate as the trustees of public funds, then it follows that we must have complete and accurate reports on where and how public money is spent.
At the present time there is no process in place that will allow for complete scrutiny, at least not without applying to the courts. Even then, full disclosure may not be possible. This problem has been a longstanding one which arises from the Income Tax Act and the legal system.
Neither department can absolutely or clearly define which category charities and non-profit organizations should come under because these groups cross several lines with regard to existence, function and purpose. They function like a business but unlike a business they do not make a profit.
Quite often not for profit organizations make large investments which earn interest or capital gains yet they are not taxed on this money. They have no product or service to offer in the normal sense of the word. However, we have heard the complaint that a not for profit organization will operate a tavern and pay no taxes while a small business person across the street pays taxes on a similar operation. Is this fair competition? Is this a level playing field?
These not for profit groups have a social function to ease or remedy some problems which may exist in our communities or national settings. They receive funds in one form or another, a portion of which are the taxes paid by hard working Canadians. With these funds they run their programs, pay salaries and execute daily business.
As anyone can see, a clear definition as to where charities and non-profit organizations belong is no easy matter. Since the assent of the Income War Tax Act of 1927, the courts have tried but have not yet been successful in absolutely defining any organization which has as its focus the improvement of the human condition.
This special category which charities and non-profit organizations are given exempts them from paying income tax. Yet there seems to be an inequality here. The amount of information these groups must provide to Revenue Canada, which exempts them from tax, and the accountability they have to funding ministries is minimal. Smaller still is the amount of information available to the very people who actually fund them, the Canadian taxpayer.
For example, the public is made aware daily through the press of the salary of every hon. member of the House. They are aware of the tax free allowance and they are bombarded with information regarding the MPs' pensions, all of this rightly so. Would it not seem fair that the same public have access to the same information of high profile heads of non-profit organizations?
One that comes to mind is David Somerville, the president of the National Citizen's Coalition, a non-profit organization. Mr. Somerville does great work on behalf of the public so should they not have a right to know his salary, his pension and his total benefit package?
If Bill C-224 becomes law, within 30 days of fiscal year end there would be full disclosure of salaries and benefits paid to directors and senior officials of these charitable and non-profit organizations.
I mentioned earlier that charitable and non-profit organizations were a large sector of our economy. To demonstrate how significant these numbers are, we know there are more than 130,000 organizations in Canada classified as charities or non-profit organizations. Available estimates show that approximately $120 billion flow through these organizations annually and that $49 billion comes from the various levels of government.
We know these organizations act in the public interest but we also know there is no measurement to gauge the effectiveness of the programs. By anybody's standards, that is a big bundle of money.
Some months ago we read in the newspapers in every city in the country where the Chamber of Commerce in Quebec City gave a gift to the premier of Quebec. The gift was a mansion worth $650,000 and $150,000 worth of furnishings. This was a gift to a politician, to Jacques Parizeau. The moneys that paid for this political gift were moneys claimed as 100 per cent business deductions passed through this Quebec City Chamber of Commerce as donations to non-profit organizations and the Chamber of Commerce bought the house as a gift to a politician.
Does the public not have the right to know how much money is going through non-profit organizations to buy mansions for politicians across the country? Does the public not have the right to know how many politicians at all levels may be receiving financial support or valuable gifts from non-profit organizations? I think most Canadians will agree with me that we have a right, especially since most Canadians are paying their fair share of taxes. In the final analysis, those who are paying are picking up the tab as well for those who are not.
If we are to be the guardians of the public trust and if we are to be fair to all sectors of the economy then I believe we have a great opportunity to at least take a first step toward more fairness with the implementation of Bill C-224.
I come from rural Canada, the Atlantic region, where people are generally very kind, very charitable with their friends and neighbours and very generous with what money they have. In most instances they would give you their last dollar if you really needed it. That is the Canadian spirit. I believe in my heart that with disclosure, the Canadian spirit of giving would be enhanced. The openness of information would generate greater trust and financial support to those organizations that we depend on in our communities and the thousands of volunteers who give so generously of their time and energy.
At this very crucial financial period in our nation's history, when the government has taken unprecedented bold, courageous steps to cut programs, to cut jobs and to cut spending, surely we have that same bold courage to support this bill.
Canadians are generous in their donations and each of us places great value on the work our charities and non-profit organizations do in our communities. However, I am sure that each of us has wondered where exactly the money goes. How much is spent on very high paying salaries and how much really reaches the needs of the child or the researcher for which it is intended?
Bill C-224 provides that information to the public. It provides disclosure. I believe that having full knowledge of where the money is spent, Canadians will be even more generous to the groups that are deemed worthy of financial support. I commend my seatmate, the hon. member for Hamilton-Wentworth, for his foresight, for his diligent research as well as his integrity and determination to do what is right. I believe in times to come this bill may be considered the very most important piece of legislation that comes before this 35th Parliament.
I believe Canadians are ready for this legislation and that the bill is very compatible and may even be considered a companion to the very recent budget bill.
In conclusion, it is my hope that all hon. members of the House will give serious consideration to this bill and offer their full support.