Debates of Nov. 18th, 1997

Taxation

[Some hon. members]

Hear, hear.

[Jim Peterson, Liberal, Willowdale, ON]

I am very pleased that we have taken a step by not bringing in wholesale tax cuts in the way the opposition wanted. That would have put our fiscal deficit out of reach. We have done the responsible thing and we will introduce a tax cut only when it can be sustained—

[The Speaker]

The hon. member for Calgary Southeast.

[Jason Kenney, Reform, Calgary Southeast, AB]

Mr. Speaker, we are glad to finally hear that admission. The problem is that Canadians are suffering because of a tax burden which is getting higher every year.

It is not a question of cutting taxes. It is a question of not raising taxes any more under bracket creep. When will the Minister of Finance or the Prime Minister stop this destructive tax on inflation, or will they continue to be known by Canadians as the bracket creeps?

[Jim Peterson, Liberal, Secretary of State (International Financial Institutions)]

Mr. Speaker, we will work in a responsible way to bring down taxes because we know that Canada of all G-7 countries has one of the highest rates of personal income tax. We will not sacrifice our efforts to reduce the deficit and to bring down our debt just because this party is calling for a tax cut.

This is a party that has called for getting rid of the GST. This is a party that is calling for cutting payroll taxes. This is a party that is calling for the cutting of CPP premiums. We have to be responsible—

[The Speaker]

The hon. member for Rosemont.

The Environment

[Bernard Bigras, Bloc, Rosemont, QC]

Mr. Speaker, my question is for the Prime Minister.

While environmental groups have unanimously condemned the Regina agreement and cited the position taken by Quebec as an example, the president of the Canadian Association of Petroleum Producers, for his part, said that it was the best agreement his association could have hoped for.

Will the Prime Minister admit that his position is the best proof that his government has caved in to the petroleum lobby and to its representative, the Reform Party?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, I would like to reply to this question because it is the first time we have managed to reach an agreement with the provinces. The provinces said that the Canadian position is a position—

[Jean Charest, Progressive Conservative, Sherbrooke, QC]

Without Quebec.

[Jean Chrétien, Liberal, Saint-Maurice, QC]

Yes, it is easy for you to say that now. There will be an agreement. This is a position that we are going to defend in Kyoto and that we can improve.

Now we know what the provinces are prepared to do. Rather than impose our views, we tried to reach a consensus with the governments of all provinces—

[An hon. member]

Except Quebec.

[The Speaker]

The hon. member for Rosemont.

[Bernard Bigras, Bloc, Rosemont, QC]

Mr. Speaker, the Prime Minister had promised a very firm position on the reduction of greenhouse gases. Today, he is content to follow the American position.

Is this not another of the Prime Minister's broken promises?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, we consulted the provinces. We have not taken a final position yet, but we are very happy to see that the provinces realize that there is a problem and that they will have to work with the federal government.

We are continuing our consultations with other governments and we hope to have an agreement in Kyoto signed by the Europeans and the Americans. We also hope that the third world will want to be part of any agreement, because atmospheric problems concern developing, as well as developed, countries.

Canada Pension Plan

[Diane Ablonczy, Reform, Calgary Nose Hill, AB]

Mr. Speaker, today it is the Canadian Taxpayers' Federation blasting the mess the Liberals are making of CPP reform. Forty-eight billion extra dollars will be snatched out of the pockets of Canadians between 1997 and 2003. That amounts to over $3,000 in new CPP taxes per working Canadian.

Is taking more to deliver less the minister's idea of retirement security for Canadians?

[Jim Peterson, Liberal, Secretary of State (International Financial Institutions)]

Mr. Speaker, we acted after 15 years of inaction. We were the government that was able to work with the provinces to put the Canada pension plan on a sustainable basis. If we had not acted, the premiums would have gone to over 14%.

None of us like tax increases, but more than anything else we have sustained the viability of the Canada pension plan and we are proud of it.

[Diane Ablonczy, Reform, Calgary Nose Hill, AB]

Mr. Speaker, this new CPP tax will take out of Newfoundland $860 million more. Out of Saskatchewan it will take nearly $2 billion extra. Even out of the Northwest Territories it will take nearly $200 million extra dollars.

The taxpayers' federation says that the government's proposed reforms are not sustainable, not affordable and patently unfair.

When will the minister simply admit how unfair this plan really is?

[Jim Peterson, Liberal, Secretary of State (International Financial Institutions)]

Mr. Speaker, talking in terms of fairness, this is the party that had no plans to deal with the $600 billion of unfunded liabilities in this plan. It then finally comes along and the hon. critic who has just spoken says “there is a mess and we need to look at perhaps paying some of the unfunded liability out of general tax revenues”. She was then muzzled. We have taken the responsible course. It was something we did in consultation with the provinces.

Our senior citizens can rest assured that they have an indexed pension—

[The Speaker]

The hon. member for Saint-Jean.

Former Singer Employees

[Claude Bachand, Bloc, Saint-Jean, QC]

Mr. Speaker, my question is for the Minister of Human Resources Development.

The federal government is stalling for time in the matter involving the former employees of the Singer company. We must remember that the Minister of Human Resources Development has always maintained his compassion for them and his diligence on their behalf.

Where are the minister's compassion and diligence as he drags people whose average age is 82 before the courts instead of providing a settlement?

[Pierre Pettigrew, Liberal, Minister of Human Resources Development]

Mr. Speaker, we are acting totally responsibly. I have instructed our lawyers to act diligently and quickly, and we are not in a position to settle out of the court because we cannot acknowledge a responsibility that was not ours with respect to the Singer pension fund.

Privacy

[Roger Gallaway, Liberal, Sarnia—Lambton, ON]

Mr. Speaker, my question is for the secretary of state responsible for financial institutions.

At the stroke of midnight on Halloween night, the Toronto-Dominion Bank passed all of its customer information to its insurance, mortgage and security subsidiaries unless each customer said no to its negative option marketing demand.

Will the secretary move by legislation to stop this invasion of privacy?

[Jim Peterson, Liberal, Secretary of State (International Financial Institutions)]

Mr. Speaker, as the member knows, from 1990 to 1996 the Canadian Standards Association, which consists of management, labour, consumers, provincial and federal governments, worked to draw up a code of privacy for our financial institutions.

I am pleased to say that in this instance the guidelines of the Canadian Standards Association were met. However, privacy is an issue which is of very great concern to us. We hope the task force is going to look into it and, of course, the finance committee would welcome their views.

Foreign Affairs

[Bob Mills, Reform, Red Deer, AB]

Mr. Speaker, in the House the Liberals are fond of standing up, beating their chests talking about how great they are with the UN, about how good they are at attacking Saddam Hussein, but they are letting a billion dollar trade deal sneak through and hopefully nobody will see it, leaving it to the UN to decide what to do.

When will this government stand up and let Saddam Hussein know exactly where it stands on that issue?

[Lloyd Axworthy, Liberal, Minister of Foreign Affairs]

Mr. Speaker, we already have. We have made it very clear that they must live up to all their obligations under the United Nations.

I want to point out to the hon. member that the proposal to exchange goods is for humanitarian purposes, to help the children of Iraq, not Saddam Hussein.