Mr. Speaker, I rise today to speak in favour of increasing literacy levels in our country and in our communities.
As a father of two young girls, literacy is something that is very important to me. We should never lose sight of the fact that literacy skills are a key to learning. Many people think that literacy begins when we go to school and ends when we finish our formal education. However, studies have shown that the first years or year of a child's life will have a significant impact on their learning.
Reading to a child, whether it be when he or she is in the womb, a newborn or a toddler, is an important first step in developing a lifelong desire to learn.
Whether students are headed for post-secondary education or directly into the labour force, they need fundamental learning skills and basic knowledge. These are essential if they are to keep on learning, advance their careers and achieve their personal goals.
In short, the future of our youth and of our economy depends on whether today's students are being given a sound background in primary and secondary schools.
We all have a role to play in promoting literacy in our homes and communities. As to exempting books from the GST/HST, I would be open to hearing more information on this.
The GST was designed to raise no more money than the hidden tax it replaced. Special credits offset the impact of GST on low income earners, schools, hospitals, municipalities and new homes, Basic groceries, financial services and prescription drugs are not taxed.
By law, GST revenues can only be used to service or reduce the debt. In April 1996, Ottawa and Nova Scotia, New Brunswick and Newfoundland agreed to harmonize their sales taxes and to bury the tax in the price.
At that time Progressive Conservative members and senators from those three Atlantic provinces tried to expand the list of goods and services that are exempt from GST or HST. Examples of the proposed exemptions were books and funerals.
This being my first term, I was not part of the government that implemented the GST but I was a member of the party that saw the need to replace the hidden federal sales tax.
Unlike the Liberals who vowed to abolish the GST, the PC party recognized from the beginning that the GST would have to be fine-tuned after introduction. We see this as a continuing process. As all members know, the Liberals did not scrap the GST, much to the chagrin of certain members of this House.
During the Hamilton East by-election, the NDP leader for her part promised to cut the GST to 5% from 7%. She said she would eliminate the GST on new homes, children's shoes and clothing, books, school supplies, furniture and other essential family purchases.
She did not mention that the British Columbia NDP government raised the sales tax to 7% from 6%. Nor did she mention that one of the very first things that Saskatchewan's NDP government did was to raise its rate to 9% from 7%. Having improved its financial position, it has since lowered it back to 7%.
In closing, I want to reiterate my party's commitment to improving literacy levels in this country. However, the government must act with prudence. Before endorsing this motion, we must weigh the benefits of any changes against the potential cost. I would like to see hard data on the impact that taxing books has on literacy in comparison with lost revenues.