Madam Speaker, we have heard a lot of fearmongering on the other side with regard to the establishment of this agency. I would like to point out the many reasons for moving to a departmental agency status, none more important than the demands of clients for better, streamlined and more responsive tax, customs and trade administration services, and more of them.
In the time of economic expansion the demand for tax, customs and trade services also increases. A million new jobs in Canada since 1993 means many more tax filers both individual and corporate. Resources at Revenue Canada have remained relatively stable during the period of economic expansion and steep increases in business volumes.
Much of the new demand has been accompanied by internal operating efficiencies. There is little room left for more efficiency gains at Revenue Canada under the present structure. Hence the need for a new framework.
The agency model proposed, Canada customs and revenue agency, is unique. It combines the strengths of both public and private sectors while remaining fully accountable to parliament and to the Canadian public.
In developing the Canada customs and revenue agency, the department has been sensitive to the concern of the concentration of too much power in one place. Tax, customs and trade administration affect the lives and livelihoods of Canadians. They want to be sure they are dealt with fairly and that their rights are protected. The intention is not to create a new agency with unlimited power and unlimited scope.
In the design of the new agency, the essential checks and balances that govern the activities and ensure the accountability of Revenue Canada have been maintained. For example, the enforcement powers of the new agency will be the same as those currently provided to Revenue Canada through legislation like the Income Tax Act or the Customs Act. If there is a problem or a complaint the minister will still be fully accountable to parliament and to the public for the administration and enforcement of specific legislation. The minister will also have the authority, as in the case now, to answer questions in the House and ensure the agency is acting properly in its dealings with the Canadian public.
The confidentiality of a taxpayer's personal information will be protected under the agency as it is currently with Revenue Canada. The authorities governing confidentiality are clearly set out in legislation. They will not be changed by this bill.
Bill C-43 will permit the agency to offer new and better services to the provinces and territories. For example, at the present time Revenue Canada can only collect provincial taxes that are harmonized with federal taxes. The new agency will be able to collect non-harmonized taxes, expanding the potential for single window tax collection with considerable savings for businesses and individual Canadians.
Greater co-ordination between the federal and provincial and territorial governments will simplify tax administration for Canadians and reduce costs and overlap and duplication between governments. This is what Canadians expect and this is what we are going to deliver.
A major change that will allow the new agency to adopt a more client oriented approach would be increased operational flexibility in the management of internal resources. The new legislation will allow the proposed agency to tailor its human resources and administrative functions to meet the needs of its clients as well as those of its employees. All this means better service to provinces and territories, to businesses and to individual Canadians.
Doing something better is not an expansion of power but an extension of service; service to Canadians, service to businesses and service to the provinces and territories.
Better service means savings in time and money, savings in compliance costs for businesses, savings in administration costs for governments.
The intention of Bill C-43 is not to create an agency with extraordinary powers but rather to establish a framework with all the checks and balances for a superior agency.