House of Commons Hansard #230 of the 35th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was magazines.

Topics

Cultural Property Export And Import ActGovernment Orders

4:45 p.m.

Reform

Darrel Stinson Reform Okanagan—Shuswap, BC

Mr. Speaker, I would like to address Bill C-93 and also speak as to why I believe the amendment put forward by my colleague should go through.

Government members talk of abuse. This government has been full of abuse since it has been here. It has never stopped. They have lived off the backs of the taxpayers since day one. They have never changed. They said when they came to power how they would change things, how they would be different from the Conservatives. They are now called the con-lib party because there is no difference; they are in bed together and have been for a long time.

When the hon. member from across the way says there was no abuse in the system, let us look at what the Canadian public-

Cultural Property Export And Import ActGovernment Orders

4:45 p.m.

Liberal

Albina Guarnieri Liberal Mississauga East, ON

I never said that. Do not misrepresent.

Cultural Property Export And Import ActGovernment Orders

4:45 p.m.

Reform

Darrel Stinson Reform Okanagan—Shuswap, BC

Misrepresent. I am afraid I cannot do that with you.

Cultural Property Export And Import ActGovernment Orders

4:45 p.m.

The Acting Speaker (Mr. Kilger)

I know colleagues obviously want to debate the issue, but I would remind the House to direct their interventions through the Chair.

Cultural Property Export And Import ActGovernment Orders

4:45 p.m.

Reform

Darrel Stinson Reform Okanagan—Shuswap, BC

I am sorry, Mr. Speaker. Let us look at the Gazette where it says: ``Former Prime Minister Brian Mulroney will find out this week of his approval for a tax break for donating his papers. Members of the Canadian Cultural Property Export Review Board will decide whether to accept an approval of the value of the papers which date from before Mulroney was Prime Minister in 1984''. It goes on to state that is unlikely Canadians will ever find out what the deduction is worth to him, the former Prime Minister. This appraised value of the papers is private but could eventually amount to hundreds of thousands of dollars. Do we not think the public has a right to know what they are paying and giving up for the so-called works of art or donated papers?

Former Prime Minister Pierre Trudeau also received a tax break by declaring his papers.

In 1993-94 the archives staff under Michael Swift, assistant national archivist, completed organizing two sets of papers for Prime Minister Mulroney. The first set, which will take up to 15 metres of shelf space, covered Mulroney's time as a Montreal lawyer and businessman in the 1970s and 1980s. I do not think the Canadian taxpayers, who pay for the system, really care. If they had really cared they probably would have kept him in office, but here we go on and on.

I listened to the hon. member across the way talk about Canadian culture and heritage. Back in the late 1800s there was a gentleman who lived in Aspen Grove, British Columbia. They nicknamed him the Grey Fox. The Grey Fox is part of our history. He robbed banks and stage coaches and was one of Canada's great train robbers. Yes, I think maybe he was one of the first Liberals of the day but at least he had the common sense to use a mask. Today we see what I call

the great Canadian tax grab right off the backs of the Canadian people.

Here is a caring, sharing government and what does it do? It takes away the $100,000 capital gains for the working class because they have probably already claimed it so they no longer need it. That was the first kick. The second kick is allowing these things to go on knowing full well that working class Canadians will have to pick up any shortfall in the taxation system.

We can go on. The Gazette of March 24, 1995 states: ``Under the scheme which dates back at least 20 years, a donor buys a work of art for well below the artist's usual fee. The donor will then have the work evaluated for four or five times the amount he or she has paid for the work and then donate the piece to a gallery, museum or a registered charity and write off 100 per cent of the evaluated amount, art experts explained''.

Let us go on a little bit further: "Rolland's Art-Transit has paid Montreal artist Catherine Widgery 20 per cent of the usual price for her work. If it is $10,000 for the work, I get $2,000', she said,but they will still be allowed to claim that $10,000 if it is valued at that price".

Cultural Property Export And Import ActGovernment Orders

4:50 p.m.

An hon. member

That is a good deal.

Cultural Property Export And Import ActGovernment Orders

4:50 p.m.

Reform

Darrel Stinson Reform Okanagan—Shuswap, BC

It is a win-win situation, as a Montreal artist also says in the same article. Museums are happy to get things for free. That raises another question.

I was brought up to believe that a gift is a gift and a gift given is free. How do we get into a tax deduction situation for giving a free gift? Why do we call it a gift? Only in Liberal language would this ever be allowed. I do not know, maybe I have to look up what a gift means but it sure has changed from the time I went to school.

Back to museums which are happy to get things for free. Artists are happy because they have a bit of money in their pockets. Everybody is happy. What is not, in the words of the writer, kosher, is that a client is buying a work at below its value and getting the write off for a different amount. Still, the artist added, "I find the whole thing a little bit fishy but everybody is doing it". Doing it the Liberal way.

What is the difference between this government's taxation policy and the previous government? Nothing. It is business as usual.

The Liberals hold up the red book as a great work of art. We found out how good that work of art was in western B.C. It was in every outhouse. We found out it was only half-ply strength and you all know what happens when you use only half-ply strength.

Cultural Property Export And Import ActGovernment Orders

4:55 p.m.

The Acting Speaker (Mr. Kilger)

This is a place of debate, but the Speaker wishes to be involved to the extent he is able to from the Chair. Please do not direct comments across the floor to one another. That word "you" inevitably leads sometimes to another debate which I do not think is something we really want to entertain.

Cultural Property Export And Import ActGovernment Orders

4:55 p.m.

Reform

Darrel Stinson Reform Okanagan—Shuswap, BC

Mr. Speaker, let us look at what the red book has done for Alberta or Saskatchewan. They found that if they shaved it up really fine and mixed it in with the fertilizer it helped the crops grow. The trouble is that most of the crops turned black.

It has been a great benefit for the jobs program in Ontario and Quebec. It has plugged every sewer system in the provinces.

We can now also look at what it has done for Atlantic Canada and Newfoundland. It is the only fishy thing they have left down there.

I am hoping over the course of time this does not become part of our culture and heritage that goes into our museums.

Cultural Property Export And Import ActGovernment Orders

4:55 p.m.

Nunatsiaq Northwest Territories

Liberal

Jack Iyerak Anawak LiberalParliamentary Secretary to Minister of Indian Affairs and Northern Development

Mr. Speaker, it is nice to hear some fiction being put out by the hon. member. My question is very simple. He talks about tax free allowances for the rich and does not agree with it. I wonder if that means he does not agree with his leader's clothing allowance given to him by the Reform Party.

Cultural Property Export And Import ActGovernment Orders

4:55 p.m.

Reform

Darrel Stinson Reform Okanagan—Shuswap, BC

Mr. Speaker, concerning clothing allowances, I have not heard anybody mention the $285,000 or is it $585,000 the Prime Minister gets for his toothbrushes. As the hon. member knows, there is no clothing allowance. It is a figment of their imagination, but the Liberals are good at figments of the imagination.

Cultural Property Export And Import ActGovernment Orders

4:55 p.m.

Liberal

Larry McCormick Liberal Hastings—Frontenac—Lennox And Addington, ON

I beg your pardon. No way.

Cultural Property Export And Import ActGovernment Orders

4:55 p.m.

Reform

Darrel Stinson Reform Okanagan—Shuswap, BC

I believe there is an expense allowance that we all give our leaders and the Prime Minister gets far more than anybody else. He gets a lot I understand, a whole bunch. Somehow it is written off. I do not know how, but that is the Liberal way of balancing things. The Liberals have a funny way of justifying one but not the other. It is strange but if we fall into the Disneyworld of Liberal philosophy we will find that Mickey Mouse and Goofy sit side by side. When they draw these things up it becomes a cartoon scenario the Canadian public is just about fed up with.

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5 p.m.

The Acting Speaker (Mr. Kilger)

Before I resume the question and comment period it is my duty, pursuant to Standing Order 38, to inform the House that the question to be raised to night at the

time of adjournment is as follows: the hon. member for Okanagan-Shuswap-a question which was transferred for debate.

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5 p.m.

Liberal

Alex Shepherd Liberal Durham, ON

Mr. Speaker, I am certain that not too many people will be paying for the Reform Party cultural document.

It amazes me to hear the hon. member mention this legislation is all for the wealthy and the rich and yet the same person turned around and defended the capital gains tax. The capital gains tax was purely directed to people of higher incomes. I can prove the people who received the benefits of that deduction were the higher income, wealthier people, the very people the Reform Party represents in the House.

There is a little problem with arithmetic here. The bottom line is anybody who is making a donation of, for example, $10,000 will get a $5,000 tax credit. It costs them money. This is not some kind of gift to the wealthy. They made a donation of their cultural property, be that the group of seven artists or Cornelius Krieghoff, so that it would stay in Canada and be the property of the people of Canada. This is something the Reform Party fails to understand.

The other thing that seems striking to me is that the Reform Party talks about getting rid of this and having a flat tax. I want to put things in perspective. The Reform Party does not want to admit this but the flat tax is designed to assist and help anybody who has an income of over $200,000.

The president of the United States with all of his analysts went through the whole concept of a flat tax years ago. He asked them to prove to him how it would not be the major system for people with over $200,000 income. It stands to proper reason that if we are trying to collect x dollars from the taxation system and there is a flat tax we will allocate taxes from the upper income groups to the middle income earners. That is what the Reform Party would have us believe. That is who the Reform Party is representing in the House.

The reality is the cultural products some people have are usually part of an estate. As part of settling that estate they give a good portion of these artefacts to the government through the museum system. These are things our museums would not be able to acquire. It is not a loophole, it is an incentive to keep those products in Canada.

How can he defend the capital gains tax system but not this system and how can he defend a flat tax system but not this system?

Cultural Property Export And Import ActGovernment Orders

5 p.m.

Reform

Darrel Stinson Reform Okanagan—Shuswap, BC

Mr. Speaker, I know it is hard for the hon. member to understand that under capital gains the $100,000 is for the small investor, the person who tries to put a little aside to get ahead because they know darn well with what is happening underneath the government there will be nothing there for their old age unless they look after themselves. The government will take it all away from them anyway while its members make sure their pensions are well kept and they are well fed before they think about the poor average working class person. It is a shame.

When the member asks about capital gains at the $100,000 level it creates investments. It gives the Canadian working people a chance to get ahead where the government cannot weave and sneak in between and take it from their bank accounts, which this government is so very good at.

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5 p.m.

Liberal

Alex Shepherd Liberal Durham, ON

Mr. Speaker, really. The everyday worker, the plumber, the electrician? In my riding we have General Motors workers. I did these people's tax returns for years and I do not ever remember them claiming a capital gains tax exemption. Be serious. Level with the people.

These people are supporting the professional class, lawyers, doctors and accountants. That is who they are talking about. They are not talking about the everyday person in the street.

Will the hon. member please tell us who he thinks is claiming the $100,000 capital gains tax exemption?

Cultural Property Export And Import ActGovernment Orders

5:05 p.m.

Reform

Darrel Stinson Reform Okanagan—Shuswap, BC

Mr. Speaker, I can well tell him who worked toward getting the $100,000. It was the person who invested in the nickel and penny shares in the stock exchange who tried to keep the exploration companies going. It was the person who tried to put something away so they could claim it to further their children's education.

The hon. member maybe has never dealt with the small business people in Canada. If he had problems helping people to do their tax returns maybe he should look at changing the policies he is so hard set on keeping so he can keep people like that working.

Maybe that is a question the hon. member might like to answer. Why has he not come up with some kind of a change in the program? Why is it always a Conservative-Liberal program or a Con-Lib policy that we go along with? We have bunk beds, Bloc beds and now Con-Lib beds.

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5:05 p.m.

Liberal

Don Boudria Liberal Glengarry—Prescott—Russell, ON

Mr. Speaker, I have enjoyed the debate this afternoon. It indicates a philosophical difference between the Liberals and those people in the Reform Party. I suppose that is no surprise.

I have a copy of the little book of reform. This is the gospel according to the leader of the Reform Party. Let me read a bit from the booklet. From page 23: "The Reform Party supports the responsibility of the state to promote, preserve and enhance the national culture". I wonder if the hon. member opposite has ever

read the little green book of the Reform Party. I recommend it to the member. It is very interesting reading, provided it is not done on an empty stomach. Otherwise it is quite good and I highly recommend it to the member.

The Reform Party supports the responsibility of the state to promote, preserve and enhance the national culture. Let us remember what we are doing today. We are adopting a bill which in a small way does precisely that. One would think the Reform Party would be saying it is about time the government did something it recommended in its handbook.

No, of course not. What happened is there are Reform members who did not read the little green book and they obviously do not know we are trying to do what they advocated.

The Reform Party seems to believe the cultural industry benefits only rich people. Let us talk about the whole industry of museums and cultural industries generally. Two of the largest cities in the world thrive and make as their main business culture: Paris and London. Those fortunate enough to have see the Louvre, I believe the second largest museum in the world, will agree it is beautiful and almost impossible to describe. The treasures are such that it would take weeks to see everything in it. Millions and millions of people have seen and will see the Louvre. One could probably open any fourth or fifth door of any building in Paris and the same would be true of so many things there. Many people go to Paris for that reason, because it is so lovely, because it is such a wonderful city and because all those cultural amenities are there.

Other museums are the Musée d'Orsay, which focuses on paintings, and the Centre national d'art et de culture Georges-Pompidou, which features modern art.

It is the same in London. I have been to the Royal Albert museum where the Magna Carta is displayed, one of the most important historical documents in the western world. There were people standing to have a glimpse of the Magna Carta. They must have been four or five abreast and a queue of them several feet deep waiting to look at it for seconds just so they could go back home and tell people they had seen it.

The Mona Lisa at the Louvre is the same thing. There were so many people around it you could barely see it at all. I had the previous misconception it was a very large painting. It is a little painting and one has to almost fight one's way to see it. Many people go there for no other reasons than to see that.

That is true of how many other works of art? How many people in this city reap the benefits of that? They are not just rich people. People visit Ottawa to see our beautiful museums. I highly recommend the Queen's collection, although it is no longer here. How many people travelled here from many communities, stayed in hotels, gave tips to waiters, gave jobs to those transporting them from the airport and so on? It has contributed to the local economy.

Culture is a business, a very big one in many cities in the world and in our country. It is big business. It provides meaningful jobs.

That is a concept people across never raise. They think somehow the whole cultural industry has half a dozen beneficiaries getting rich and no one else is benefiting so that two or three artsy-fartsies can watch this stuff. It is not like that. It is the way the Reform Party would like to depict it to Canadians and to the House. It is a wrong way of viewing things.

In my riding there is the Nor'Westers and Loyalist Museum in Williamstown.

The Cumberland Township Museum in Cumberland and other local museums hold historical artefacts, old documents, and so on. Many visitors end up spending some time in the community and supporting local businesses.

This bill applies to Canadian and other cultural property. Earlier, a Reform member asked the hon. parliamentary secretary whether someone who owns a foreign work of art would be eligible for this deduction? I am asking you: What difference would this make?

If someone wanted to give Canadian taxpayers or a Canadian museum a work by Leonardo da Vinci, would we refuse the offer? What kind of narrow minded values are some of our colleagues trying to convey in this House? If some valuable cultural property was available, I think we would want it so we could enjoy it and show it to others. And even if we looked at this from a strictly economic point of view, we as a society would want to capitalize on the fact that people would come from abroad to see it.

How many tourists come to this city to see these things, not just locally, not just people from 10 miles away, but people from across the country? They cross the border from the United States. They come from everywhere to see some of the things we have.

That is equally true elsewhere. My very distinguished colleague reminds me that we are not even talking about the educational benefit. If you bring a child to the museum and show him or her a copy of our Constitution, a copy of the original flag proclamation or other such artefact, there is a tremendous educational benefit as well.

We are talking about whether we should give a tax benefit to someone who donates an object of art. What is the test? First, the object in question has to be determined to be one that qualifies for such a tax credit. It is not arbitrary. I cannot empty out my desk and call it art or cultural property and get a tax credit for it, although maybe some day the little green book of the Reform Party could be put in a museum. However I do not think I would get much of a tax credit.

The first test is that the object has to qualify. The second test is what the parliamentary secretary said in her speech a while ago if members across had been listening, which is giving a credit of 50 per cent of the market value. My other colleague from Durham is very knowledgeable with numbers as he is a accountant. I am sure he would agree that if you start off with that proposition the taxes saved are a proportion of that, whether it is 50 per cent, 60 per cent or whatever the number is depending on the tax bracket the person is in.

Let us now assume a 50 per cent tax bracket. That means that if one gives a $1,000 object one does not get $1,000 from the taxpayers. One receives $250, assuming a 50 per cent tax bracket working on 50 per cent of the appraised value of the original work. That is the way I see it. If those numbers are even slightly off the principle remains the same. It is not a matter of only rich people getting a credit for a piece of cultural property.

Let us not forget that the Reform Party, despite the comments made by some of its members today, launched its last election campaign by calling for the promotion, the furthering of Canadian culture. I am totally confused. I must tell you that I am having difficulty in following the logic used by Reform members. Their thoughts and actions seem to lack coherence. What are these objects they are talking about?

Some members across have alluded to the fact that former Prime Ministers gave their personal papers. Let us look back in history. Let us not measure things as they are now. I am not here to defend Brian Mulroney. I probably criticized him more than all the MPs across put together. However, that is not the point here today. The point is not whether I happen to agree with that person's policy at the time he was the Prime Minister. I think the verdict is already out on that one. Read Stevie Cameron's book and you will find out in case you are still in doubt.

The point is whether there is value to these objects. That is determined by an independent panel, not by members of this House and least of all by political opponents such as I. It is looked at historically. As I said earlier today speaking on another bill, if we were to evaluate today whether the documents of Sir John A. Macdonald are of historical value we would be hard pressed to find people who do not think they are. They are obviously very significant. Probably three years after he left office the discussion on the issue would have been a little different. The same applies for many other people.

Some time ago the Hudson's Bay Company gave some important historical documents of that very old business which was founded in the 17th century. For a period of time that company owned part of what is our country today. It was the physical owners of the land, a quasi government of its own with administrative powers, et cetera. Some of these documents have been given to the country.

I suppose there were times in the past when a trapper who brought things to be exchanged at the Hudson's Bay store did not get what he considered to be the proper value. He would not have thought much about the cultural value of the documents that belonged to a company that did not give him what his material was worth. But that was measured in the contemporary. It is not necessarily the way in which we can measure objects of value for the future.

Our museums across the country can avail themselves of certain tax measures to take advantage of donations made to them. That is right, sometimes rich people donate works. It is great when they do so. This way, the rest of us get to see these works, because only the rich can afford to have a private collection at home. I will not see them often myself, but if these people can give some away, that is just fine.

In our society, there are also people who own works of art, say a painting bought some 30 or 50 years ago by a relative, and who now want to donate it to society in exchange for a tax benefit. What is wrong with that?

I would like to put forward a final argument: Without these measures, would it be possible for individuals richer than myself and many of our fellow citizens to buy this cultural property and put it in their private collections, where it will be impossible for the rest of us to see and appreciate it? I urge Reform Party members to think about this.

This measure can, has been and will be beneficial for all Canadians. However I do not feel the policy of the Reform Party is reasonable in its approach. Cultural property that is sometimes given to the public and to museums could very well end up in the hands of very small groups and would be lost to the rest of us.

I am reminded that parts of the Lord Beaverbrook collection, for instance, were given through tax credits. I do not know whether colleagues from the Reform Party have ever been to the Beaverbrook Museum in Fredericton. I highly recommend it if they have not. They would see the extent of the collection and how precious

it is to have that as a property of the people of Canada. Again, one has to see it to appreciate it.

The Ontario government through cultural agencies owns the McMichael collection in Kleinburg. No doubt a portion of those works were acquired utilizing devices such as this.

Notwithstanding tax credits, which I am not too crazy about either, I am happy to see those works stay here for the Canadian public to see rather than in private collections in another country such as the United States or elsewhere, where people are either richer or have the advantage of a tax credit and can acquire property which I hope will stay here for the benefit of all Canadians.

Cultural Property Export And Import ActGovernment Orders

5:25 p.m.

Reform

Monte Solberg Reform Medicine Hat, AB

Mr. Speaker, I enjoyed hearing the hon. member's intervention. He talked about the Beaverbrook museum in Fredericton. I have not been there but I have been to the National Gallery. I have seen what has purchased, either through tax credits or directly with cash, which is the way I would prefer to see it done because it is a lot more transparent and you can hold people accountable that way.

One of the things my hon. friend from Wetaskiwin pointed out was a display that hangs from the ceiling there. It is a toilet hanging from the ceiling of the National Gallery. Is that not a wonderful purchase by the people of Canada? I wonder how many tax credits we handed out for that? Perfect. Does that not speak volumes about state funded art? It speaks volumes, Mr. Speaker.

I walked into a room at the National Gallery where in one corner are Brillo pads stacked to the ceiling. That is art. That is unbelievable.

I walked into another room where I thought they were undergoing renovations because there was a bunch of underlay lying on the floor. Do you know what, that was the display. Two hundred and fifty-six pieces of felt is what it is called.

I have a picture sitting on my desk of a display at the National Gallery. It is a large woman reading a newspaper and she has got a wig on and all of that sort of thing. According to the people at the National Gallery who were telling people about these displays, someone was paid $750,000 for what in my judgment is an absolutely ridiculous piece of junk.

When we talk about the government's prescient ability to choose art with other people's money let us go and take a wander through the National Gallery and find out just how good it is at this.

The hon. member from Glengarry-Prescott-Russell pointed to Reform's policy on culture. Let me address that. Our party feels very strongly that the federal government does have a role, but we also feel that these institutions have to be accountable. I also remind the hon. member that these things have to be put in context. Reformers also believe in a flat tax system. We believe that we cannot be going around giving wealthy people a special privilege. That is ridiculous. It is even more pronounced, more ridiculous in this day and age when middle income Canadians are being squeezed so dramatically.

I would ask the hon. member to put these things in context. I would much rather see private individuals, private groups, lower levels of government like municipalities and provinces run the museums and galleries to the greatest degree possible because they are a lot more accountable. When it is all funded through the federal government and people who are appointed by the federal government make the selections, they are absolutely unaccountable.

Has the hon. member gone through the National Gallery at any time in the recent past and seen some of these ridiculous, what can only be described as abuses, this mocking of taxpayers which is exactly what it is. Somehow we feel we have to support this counter culture, the people who mock a lot of the ideals that really enabled them to have freedom of expression. They mock us and we still give them money.

Has the hon. member seen this lately and how he can justify the government being involved in purchasing that kind of garbage?

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5:25 p.m.

Liberal

Don Boudria Liberal Glengarry—Prescott—Russell, ON

Mr. Speaker, I listened very attentively to the hon. member and have come to the conclusion that Reform Party politics has no artistic value.

The member across said that he prefers to see the purchase of art for cash rather than tax cuts. That was in his first or second line. Let us calculate that mathematically. The hon. member for Durham is an expert with numbers and so are a couple of other members of the Liberal caucus who are accountants. They know these things far better than I.

If you start off with the proposition that a work of art valued at $1,000 gives you a credit for 50 per cent of the value, which is $500 and you are in the 50 per cent tax bracket which is $250, it costs the government $250 to get a $1,000 item.

He prefers to pay $1,000 rather than $250. I think that is Reform math. I want no part of it and I do not think Canadians do either.

The art critic for the Reform Party wanted to tell us that a particular work of art at the national gallery in his view was ridiculous or that he did not like it. That may be so. I do not pretend to understand everything in a museum of modern art any place, not just this place. I have been to the centre Georges Pompidou. I do not understand some objects there either. However, that is neither here nor there.

The issue is whether the museum should have bought that work of art. I do not even know if the member across knows who owns the work of art in question. He assumes everything in there belonged to the Canadian public through our tax system. That is not necessarily how it was acquired. It does not necessarily belong to the museum. It could belong to another museum but here on a travelling exhibition.

I ask the member to take a little more time to go to the museum-this or any other one-speak to the curator and others and learn a little about how these things work.

I have never seen the object in question. Perhaps I would not like it either, which is a different issue. I do not even know who owns the item in question. Judging from the comments of the member in his speech I would bet a dollar to a penny he has not asked the curator of the museum who owns the piece in question.

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5:30 p.m.

Reform

Ted White Reform North Vancouver, BC

Mr. Speaker, I just finished speaking on the telephone to an 86-year old constituent in my riding who has been watching some of the debate this afternoon. You will have to excuse me, Mr. Speaker, because he said to me: "What the hell are you politicians doing over there wasting my money?"

The members opposite can wax eloquent about all the wonderful things they want to do with other peoples' money. It is other peoples' money. The majority of Canadians, whether watching this or reading about it in the newspaper, know it is their money. They are getting s bit fed up with this place which is not a travelling museum but a stationary museum wasting their money.

I get plenty of calls like the one I just had. I know that now at least my constituent will know I am trying to do something to change that system which is a disgrace. The sooner the other side recognizes it, the better.

Cultural Property Export And Import ActGovernment Orders

5:30 p.m.

Liberal

Don Boudria Liberal Glengarry—Prescott—Russell, ON

Mr. Speaker, the disgrace is in the quality of the remarks I have just heard.

The member referred to a stationary museum. I have never been inside the Reform Party caucus so I cannot comment on that. Perhaps the member is right to that extent. We all know dinosaurs are usually found in museums. To that extent perhaps he is correct.

Concerning the issue, it is a serious one. The member across may not think cultural property is important to anyone. He has a right to think that. I think he is wrong. The heritage of this country is worth preserving. That heritage may involve the community museum we have in Williamstown in the great riding of Glengarry-Prescott-Russell, the Nor'Westers and Loyalist museum where people like Simon Fraser, Alexander Mackenzie and others worked and lived, then eventually went on to explore the great Canadian west. All of these things are important. Perhaps the member across does not think so. Perhaps he does not have an appreciation for these things which is his right. I do not contest that.

If he says those things, historical objects, works of art, our whole heritage and past are worth nothing, then he has a right to think that. However, I remind him of the famous words of George Santayana that those of us who do not remember history run at least the risk of repeating it.

Cultural Property Export And Import ActGovernment Orders

5:35 p.m.

Reform

Ed Harper Reform Simcoe Centre, ON

Mr. Speaker, I am pleased to rise this afternoon and participate in this debate on Bill C-93, an act to amend the Cultural Property Export and Import Act, the Income Tax Act and the Tax Court of Canada Act.

What we are talking about is tax fairness. Fairness is something all Canadians are really looking for today, fairness in their tax system. I hear members opposite talking about the red book and talking about the green book. The only book that is really important and the one we are concerned about for Canadians is the bank book. Canadian bank books are paying for all these open ended and over generous tax credits. We are talking about $60 million in tax credits; $60 million in unfairness that is actually not in the system at the moment.

I am a Rotarian and Rotarians have a four way test. These tests apply to all the things we do and say. One of those tests is: Is it fair to all concerned? Bill C-93 misses the mark about being fair to all concerned by a very wide margin. It is unfair to the average income Canadian taxpayer who is overtaxed, has no paintings or sculptures in his or her home and he or she is the least able to pay the tax burden he or she is presently under.

It does benefit the very wealthy, the very rich in our society who have the art works and who have the sculptures and who have the ability to pay. Here we are subsidizing them. Those who have the sculptures, those who have the art works also have the bucks and are not deserving of the overly generous tax credits we are talking about in Bill C-93.

We should be looking for tax relief for the average taxpayer. I hear lots on the other side about their ability to deal with numbers, how good they are with numbers. I wonder about that when I see we are rushing toward bankruptcy, $550 billion to $560 billion in federal debt, and deeper every day, and then sleep walking to bankruptcy. I do not know where all the experts in numbers are but they sure do not know how to balance the books very well. We are still spending in excess of $35 billion more than we are taking in. They had better reclassify their experts. They are failing the mark there.

In Bill C-93 we are missing the mark in three areas when I talk about fairness. Bill C-93 introduces two new levels of appeal. There is more bureaucracy and more costs. On the second point there are tax credits for charities that are treated differently than the tax credits for the rich who have their works of art. That is grossly

unfair. The third is it is an open ended system with tax loopholes a mile wide for those with the money and ability to look for them.

Let us take the first one where we are introducing two new levels of appeal. Prior to 1990 Revenue Canada decided the value. That was the way it should have been. After the 1990 budget the Canadian cultural export review board was brought into being with no appeal, or at least no appeal without reason.

Today Bill C-93 adds two steps to that. We now can have an appeal without a reason. We do not need a reason for an appeal. I cannot understand the logic of that but we can appeal without a reason. Perhaps someone over there can explain that to me.

Then there is an appeal to the Tax Court of Canada-more delay, more bureaucracy and more cost. In the end we have taken it right back to where we were in 1990 where the tax department makes the final decision. What have we accomplished other than more delay and more costs to the taxpayer who is footing the bill?

These appeals will escalate the cost. Take the scenario in which I have a piece of art in my home. I would be lucky to have a piece of art worth $1 million. I say it is worth $1 million. The review people take a look at it and say it is only worth $.5 million. What do we do for the next step? We go to the tax court. Judges being what they are will say they will meet me half way and it ends up being worth $.75 million. Who is the winner there? It is not the overtaxed taxpayer.

Let us look at the tax credits to charities. The limit is 20 per cent of net taxable income. It is money going to food banks and the Salvation Army, money to help those really in need and we have a limit on it. They are crying for help. They are under constraints from the government. No, it is a 20 per cent limit. That money goes to charities to help people really in need.

Now we look at works of art donated by the rich and the wealthy of this community and there is no limit. The government will give them whatever they want. It is all right. It is a blank cheque. It makes no sense at all. It is grossly unfair. It is Liberal mathematics. The number crunchers have come up with this and the deficit will increase, the debt will increase and our tax burden will increase.

It is an open ended system. I do not think there are any qualifiers. They can keep dumping art on us until the warehouses are full. There is no regulation which say we can only take so much or we have only so much money to put into this. It keeps increasing and we will keep putting it into warehouses. It might eventually find its way into museums. I would certainly hope so when we are spending $16 million a year and it is increasing. It seems to be acquisition for acquisition's sake.

Is this bill fair? Is Bill C-93 fair to all concerned? I am not just talking about the artsy-fartsy; I am talking about the hard working taxpayers who are paying for all of this art which they rarely ever get to see. It is only fair to the top 1 per cent of our community. It is grossly unfair to 99 per cent of our overtaxed taxpayers. It is unfair to the charities looking for relief. They are looking for help and for donations from Canadians. Art donations have a higher priority with the government than does the Salvation Army. The Salvation Army is helping those in need and those looking for assistance.

To say that if we defeat the bill it will be the end of art donations is rubbish. They will not stop, they will continue. We are not the ones out to destroy the cultural community, but we will not buy it with money we do not have and give it to people who do not need it.

If we defeat the bill it will close a very big loophole of which the very rich in the community can take advantage. That is wrong. The ordinary taxpayer is incensed by it and wants something done about it.

Let us do what is right for the majority of hard working, overtaxed Canadians who have no loopholes, just empty pockets. Let us be fair to all taxpayers and defeat Bill C-93.

Cultural Property Export And Import ActGovernment Orders

5:40 p.m.

Liberal

Dianne Brushett Liberal Cumberland—Colchester, NS

Mr. Speaker, I did enjoy the address of the hon. member for Simcoe Centre on Bill C-93.

I will give a brief review of one of the small historical museums in my riding. It is run entirely by volunteers. The artefacts and historical objects are donated through projects such as this. Two years ago that small historical museum had to sell off some of those artefacts in order to pay its operating expenses. This is the Colchester historical society museum.

When the hon. member for Simcoe Centre talks about the fairness of the bill and the cost of maintaining art, culture and objects of historical significance in Canada, is it not better and of more value to Canadians to give these artefacts through a tax credit than for the taxpayers to have to use tax dollars to purchase art of value and historical artefacts that maintain the integrity of the history of Canada?