Debates of March 3rd, 1995

Premier Of Ontario

[Jerry Pickard, Liberal, Essex—Kent, ON]

Mr. Speaker, the provincial premiers whining about the federal budget is exceeded only by their inability to do simple math.

In Ontario it is a favourite pastime for Bob Rae to blame Ottawa for Ontario's economic woes. In his effort to get his pre-election posturing in an upright position, the Ontario silver spoon socialist continues to pout.

Where was Bob Rae when the federal government increased its education and health transfers to Ontario by 26 per cent between 1990 and 1994? He was shirking his responsibility by only increasing his provincial programs by 17 per cent, a full 9 per cent less than the federal government transferred to Ontario.

Bob Rae's outstanding contributions to Ontario are doubling the debt to over $90 billion, downgrading Ontario's credit rating three times and running annual deficits of over $10 billion.

Norman Bethune

[Andy Mitchell, Liberal, Parry Sound—Muskoka, ON]

Mr. Speaker, I rise today to join Bethune Memorial House in celebrating the birthday of Dr. Norman Bethune, born in my home town of Gravenhurst on March 3, 1890.

Dr. Bethune was a medical pioneer known in North America for tubercular research, in Spain for the first mobile blood service, and in China for building hospitals, training nurses and doctors, and treating the wounded.

His life was declared to be of national historical significance in this country in August 1972. His birth home was purchased and turned over to the Canadian parks service, which restored it as an interpretive memorial. The house has been open since

1976 to visitors from around the world, especially China where Dr. Bethune's humanitarian works were considered heroic.

On March 3, in conjunction with Frontier College, the Gravenhurst Public Library and Muskoka Literacy Council, Bethune Memorial House hosts a celebration of reading with story telling in honour of Dr. Bethune.

I wish all participants well as we celebrate Dr. Bethune's birthday.

Vision Awareness Week

[Hedy Fry, Liberal, Vancouver Centre, BC]

Mr. Speaker, it is important for me to bring to the attention of the House that March 6 to March 11 is Vision Awareness Week in Canada. This year's theme is "Hope is in sight: good vision and literacy, there is a clear connection".

It is a sad fact that many Canadians cannot read well simply because they cannot see well. One in six children has a vision problem that makes learning and reading difficult. If our children cannot focus on the chalkboard or on words in a book, how can we expect them to learn to read?

This problem is not unique to children. Three-quarters of adults with poor literacy skills also have problems with their vision.

The difficulty is that not all vision problems are easily detected. We know the earlier problems are detected and corrected, the faster we can get children and adults alike on the reading track and the faster they will be literate.

Awareness is the key. I ask my colleagues to join me and 2,800 optometrists in reminding Canadians-

[The Acting Speaker (Mr. Kilger)]

Order, please.

Social Programs

[Pauline Picard, Bloc, Drummond, QC]

Mr. Speaker, the income security minister Jeanne Blackburn yesterday denounced in no uncertain terms the federal government's withdrawal of funding for provincial welfare, education and health programs. In spite of the $7 billion lost over three years due to federal cuts, the government of Quebec will still have to provide assistance to 240,000 children whose parents have turned to welfare as a last resort.

Like a blind executioner with an axe in hand, the federal government is hacking away at social programs without realizing the impact these cuts have on people. With a single stroke of the pen, Ottawa is forcing the Quebec government to make painful choices among social services without so much as suffering the terrible consequences of its decisions.

It is high time for Quebecers to protect themselves from such unilateral cuts. The only solution available to us is to repatriate the taxes we pay to Ottawa and then decide among ourselves how much of the joint assets we shall share.

Child Care

[Jim Silye, Reform, Calgary Centre, AB]

Mr. Speaker, the Minister of Human Resources Development has fumbled the ball on his plan to reform the child care system in Canada.

Various child care programs cost over $8 billion per year, yet many still live in poverty and our courts are filled with charter challenges by families fighting the discriminatory nature of government policy.

My private member's Bill C-247 provides for a straightforward tax deduction per child to any taxpaying parent, regardless of the method of child care chosen or marital status. By empowering people to take more responsibility for themselves, the bill will give them tax free money to do so.

In the social reforms paper the minister addressed day care spaces and flexible work arrangements for parents but said nothing about current taxation inequities, charter challenges or stay at home parenting. "Such a move", he said, "would have been too racy", with which I am sure the member opposite would probably agree. I fail to see what is so racy to the member for Halifax about a tax break for overburdened parents.

It is obvious that someone with a different agenda-

[The Acting Speaker (Mr. Kilger)]

Order, please.

Freshwater Fishery

[Len Taylor, NDP, The Battlefords—Meadow Lake, SK]

Mr. Speaker, the Canadian freshwater fishery has an important role to play in the economy of the country, in particular the economies of the northern regions of the provinces.

The Standing Committee on Fisheries and Oceans has completed a much needed review of the operations of the Freshwater Fish Marketing Corporation and has made recommendations to the minister of fisheries.

Those recommendations go too far according to reports I have received from groups involved in the fishery in Saskatchewan concerned about the future of the industry and therefore the future of those regional economies.

Changes can and must be made to the freshwater fishery that will improve participation, opportunity and income for the people involved.

The minister of fisheries has received a request for a meeting with Saskatchewan fisheries groups. To ensure a complete understanding of this important issue from the perspective of those involved in the fishery and the communities dependent upon the freshwater fishery, I urge the minister to accept that invitation and meet with them as soon as possible.

International Women's Week

[Dianne Brushett, Liberal, Cumberland—Colchester, NS]

Mr. Speaker, March 6 to March 10 is International Women's Week, a time set aside to honour the contributions of women in our society.

My riding of Cumberland-Colchester is replete with women who have made outstanding contributions, not only in their communities but in Canada and the world beyond.

The Colchester Historical Society in its recent edition of Colchester Women has recognized the contributions made by outstanding leaders like Abbie Gray, Dr. Janet Baker, Rev. Wilena Brown, and Dr. Annie Dickson. The legacy of such women is an inspiration to those who follow in their footsteps.

Studies indicate that the higher the education of the mother of the family, the more likely the success of the children. As we head into International Women's Week, I encourage women everywhere to build the future of this country by striving to attain their educational goals. The hand that rocks the cradle is truly the hand that rules the world.

The Budget

[Gilles Duceppe, Bloc, Laurier—Sainte-Marie, QC]

Mr. Speaker, over the past decade, individuals have been called upon to assume a heavier tax load than corporations. This week's budget perpetuates this state of affairs by imposing a higher increase in taxes on the middle class than on corporations, in particular through increased excise taxes on gasoline. In 1995, individuals will pay four times more income tax than corporations.

My question is for the acting prime minister. Will the acting prime minister acknowledge that the budget calls upon individuals to assume a heavier tax burden than businesses, since 65 per cent of all of the income tax increases it contains will hit individuals?

[David Walker, Liberal, Parliamentary Secretary to Minister of Finance]

Mr. Speaker, I am very surprised that the hon. member has so misinterpreted the budget. We are very proud of the fact that this budget has absolutely no increase in personal income tax rates.

We have taken several steps to increase the contribution from the corporate side to the basic revenue structure of this country. We have made changes in the large corporate income tax rate. We have made changes in taxation with the banks. For the first time, given also the increase in profits in the private sector, I think we will find there is a tremendous shift to the corporate side away from the average family.

[Gilles Duceppe, Bloc, Laurier—Sainte-Marie, QC]

Mr. Speaker, that was exactly what I was talking about. How can the parliamentary secretary talk about a fair budget when we know that the only additional effort being required of banks and financial institutions is a temporary tax of some $100 million staggered over two years, although the combined profits of the six biggest banks were $4.3 billion last year alone? When is the government going to impose a real minimum tax on the earnings of profitable large corporations?

[David Walker, Liberal, Parliamentary Secretary to Minister of Finance]

Mr. Speaker, this government is making every effort to make sure the banking industry and the financial institutions pay their fair share.

A number of measures that were first introduced last year have been reinforced this year. The tax structure is not temporary but permanent. These institutions will be paying their fair share. We will insist upon it.

[Gilles Duceppe, Bloc, Laurier—Sainte-Marie, QC]

Mr. Speaker, the Minister of Finance himself talked about implementing a minimum tax on the profits of corporations during the last election campaign.

Considering the finance department's commitment to closing tax loopholes and creating a fair budget, how can the parliamentary secretary justify that the 1995 budget does not touch tax havens, nor does it touch flags of convenience, which allow rich taxpayers and large corporations to avoid paying their fair share of tax, or that the budget does not tighten up family trust rules until 1999?

[David Walker, Liberal, Parliamentary Secretary to Minister of Finance]

Mr. Speaker, in rapid succession the member has been able to misinterpret about three different measures in the last budget.

First, starting with the capital base of corporations, we have a tax structure now which eliminates many of the loopholes whereby corporations managed to escape taxes on the income side. Second, we did not sign any tax treaty with any country which provides for a tax haven. It is just the opposite. We ensure

taxes are collected from Canadians and Canadian businesses doing business overseas. Third, measures involved with the family trust take place immediately. The other ones on the capital tax side take place in 1999.

[Michel Daviault, Bloc, Ahuntsic, QC]

Mr. Speaker, after getting themselves elected on a promise to create jobs and restore hope, the Liberals have literally broken their promises in the 1995 budget and, like the Tories, they feel that the unemployment problem will only be solved by eliminating the deficit. There are no jobs in the finance minister's two small clouds.

Since we still need over 800,000 jobs in Canada to reach the pre-recession employment rate, how can the Acting Prime Minister justify the total lack of active job creation measures in the budget?

[David Walker, Liberal, Parliamentary Secretary to Minister of Finance]

Mr. Speaker, again the opposition has misinterpreted the budget. We announced measures starting last year with the infrastructure program.

We have been very aggressive in creating jobs. With the better climate we have provided in Canada over 443,000 jobs have been created. I am sure the hon. member would like to read the red book more carefully than he has in the past. On page 16 and again on page 19 we emphasized the double track our new government had to take. That is to say, we had to create jobs and reaffirm our commitment to Canadians and at the same time we had to begin the deficit reduction program.

[Michel Daviault, Bloc, Ahuntsic, QC]

Mr. Speaker, given the current employment situation, how can the Acting Prime Minister justify the fact that the only program introduced to stimulate employment, the infrastructure program, has been extended until just before the next election campaign, thus cutting federal job creation funds by $200 million this year?

[David Walker, Liberal, Parliamentary Secretary to Minister of Finance]

Mr. Speaker, one of the prime reasons we have extended the infrastructure program and pushed $200 million of work into the future is the very sensitive issue of environmental assessment. I am sure there is no member in the House of Commons who would wish us to ignore environmental assessments and to push projects through without their being properly evaluated. As these projects are properly evaluated, they will come onstream as originally planned.

[Stephen Harper, Reform, Calgary West, AB]

Mr. Speaker, in spite of all the spin doctors and all the puff pieces, there is growing evidence that the financial markets have not been fooled by the budget. This week the Canadian dollar has fallen steadily and dramatically. Interest rates have risen on all forms of Canadian government securities.

Today the Globe and Mail says that the finance minister calls the cuts good politics. Will the minister tell us why the government has chosen good politics when the situation requires good economics?

[David Walker, Liberal, Parliamentary Secretary to Minister of Finance]

Mr. Speaker, if the opposition member would care to read through both the financial press and the general public press and look at the opinion polls such as Angus Reid presented this week, he will see that the budget has been accepted widely by Canadians as well as by financial experts. In fact, only yesterday Standard and Poor's reaffirmed our AAA rating. We are very proud of the reception we are getting.

[Stephen Harper, Reform, Calgary West, AB]

Mr. Speaker, Moody's, Standard and Poor's, and other financial firms continue to provide warnings about the financial situation of the Government of Canada. They continue to evaluate our securities.

Yesterday, Standard and Poor's lowered its outlook on our foreign currency debt from negative to stable, saying that it reflects the possibility of a downgrade should the slow pace of deficit reduction fail to ease the government's debt and interest rate burdens over the next few years. The budget does not get the job done.

Will the minister admit that the cuts in the budget are inadequate to control the growth in debt and interest payments?

[David Walker, Liberal, Parliamentary Secretary to Minister of Finance]

Mr. Speaker, it is just the opposite. We all remain very concerned about the debt. That is why we took the dramatic actions we did on Monday. I want to remind the member that Standard and Poor's addressed itself to the 3 per cent foreign currency debt. On the other 97 per cent it gave a AAA.

[Stephen Harper, Reform, Calgary West, AB]

Mr. Speaker, the government knows the cuts are inadequate. Yesterday in Toronto when the Minister of Finance was asked about additional cuts to the CBC, he joked: "Is this being televised? Because if it is, it is a very different answer".

What additional cuts are being planned to deal with the failure of the budget? Cuts to the CBC, cuts to old age security, cuts to unemployment insurance, cuts to health care. Why will the government not tell Canadians about these cuts in public and on camera?

[David Walker, Liberal, Parliamentary Secretary to Minister of Finance]

Mr. Speaker, no further cuts will be introduced due to the failure of the budget because the budget is not a failure.

The Minister of Finance and the Prime Minister have indicated that as one goes about reviewing an organization as large as the Government of Canada, naturally one will continually come across better ways of doing things. We will continue to do things better.