moved that Bill C-43, an act to establish the Canada customs and revenue agency and to amend and repeal other acts as a consequence, be read the third time and passed.
Mr. Speaker, today I will be speaking on third reading of Bill C-43.
Today we start the final debate in the House of Commons on the creation of a new Canada customs and revenue agency. We arrived at today's debate after a speech from the throne. We arrived here today after a budgetary commitment by the Minister of Finance. We arrived here after a campaign commitment by the Prime Minister. Most significantly, we arrived here at this debate after years of consultation and after hearing input from extraordinary Canadians from across the country.
The bill before us today is the result of extensive consultations. It was always our intent to prepare the best possible legislation by listening to Canadians, learning from their input and taking the appropriate action.
Our government issued a major proposal, then we revised it to reflect what we heard. We put forward a second proposal and again improved it after listening to people from every corner of the country.
Three times we went back to the provinces, to the territories, to members of parliament, to tax experts, to the customs and trade professionals and organizations. We established a special advisory committee to provide ongoing comments. We received input from close to 10,000 of our employees. What started out as a sound concept has become even a better piece of legislation which reflects what people told us.
There have been many important improvements to the original proposal and those improvements flowed directly from those citizens who thought about the bill and offered up some better thinking. I strongly believe this is a fine bill and I thank those Canadians who gave their time, their wisdom and their insights to making it so.
I know my friends from the opposition will argue during this debate that we still have not consulted enough. Let me quote Mr. Garth Whyte, vice-president of the Canadian Federation of Independent Business, when asked about more consultation in the committee hearings: “We have been consulted to death”.
The simple truth is that the CFIB wants this bill passed. The Canadian Institute of Chartered Accountants wants this bill passed. The Canadian Bar Association wants this bill passed. The Canadian Tax Foundation wants this bill passed. The Canadian Importers Association supports this legislation. The Tax Executives Institute support this legislation. The Canadian Society of Custom Brokers supports this legislation. L'Association de Planification Fiscale et Financière supports this legislation. The Canadians Alliance of Manufacturers and Exporters supports this legislation.
The reasons for this broad range of support are really quite simple. First, a new Canada customs and revenue agency makes plain, ordinary, everyday common sense. Second, the bill constructively addresses all the serious issues raised by Canadians during these three rounds of consultations.
I would like to touch on both these matters, why a customs and revenue agency makes sense and how we have improved the bill, and explain why this agency is a sensible idea. I do not want to throw out a lot of complex jargon. I would rather relate some real life experiences.
Take for instance overlap and duplication. Take for instance red tape for small businesses. I was in business for 20 years before I went into politics. I remember having to deal with an auditor for workers compensation asking the same questions, going through the same books as another auditor for payroll deductions. That auditor went through the same process as another auditor for provincial sales tax. That auditor in turn went through the same process as an auditor for the GST. What a waste of talented professional auditors. What a time consuming waste for business people.
Everybody talks about wanting to get rid of overlap and duplication and we hear that every day in the House from members over there, all the time. We hear it from the provinces every single day. We hear it from small businesses. We hear it from individual Canadians. Everyone talks about wanting to reduce the paper burden and compliance costs.
This legislation is a real life opportunity to turn all that talk into action because everybody understands there is only one level of taxpayer, so let us move toward creating a single window tax collection.
Canadians want governments to work together for their citizens. They do not want to build a parallel tax system across the country. Canadians have said that repeatedly. Every place I go business people tell me they spend too much time and money dealing with governments. I believe we should allow them to do what they do best, create products and jobs.
There is something else I hear from every Canadian of every political stripe. They said quit wasting money. Spend taxpayer money wisely. Get governments to work together to cut costs and streamline the process. The new agency makes plain, ordinary, everyday sense.
Do not listen to me. Listen to other Canadians. Let me quote from the presentation of the highly respected public policy forum before the finance committee: “ The compliance cost saving from a single administration would be between $171 million and $285 million. As well, we estimate administrative cost savings in the range of $97 million to $162 million”.
The creation and successful implementation of a new agency can save hundreds of millions of dollars for Canadians. Why on earth would we want to spend all that extra money on the process of collecting taxes when it could be put to so much more productive use ending overlap and duplication, cutting red tape and saving huge amounts of money? Those are all compelling reasons for creating a new agency.
There are still other strong reasons, technology for one. It takes a split second to transfer funds from St. John's to Victoria. The power of computers is doubling every 18 months. Electronic commerce is growing enormously and yet it can take a full year to hire a government auditor.
We simply have to modernize that system. We have to design faster and fairer staffing procedures. We need a system that can keep pace with the ever changing world.
The new agency will take advantage of new technologies to reduce paperwork, speed up decisions, keep employees and our clients, individual Canadians, travellers and businesses, satisfied. Technology is forcing us to make choices. Each province and territory can spend vast sums in creating its own software and computer systems. Or we have a choice, we can work together to produce those systems.
When the province of British Columbia decided to add the B.C. family bonus it could have built a whole new infrastructure, a whole new software system and it would have cost tens of millions of dollars. Instead it came to the federal government. We were able to deliver that program for a little over $2 million. That is working together. That is working smarter for the citizens.
Within two years $400 billion of business will be done on the Internet around the world. Of that, $13 billion will be done in Canada. Do we really want 12 different Canadian systems trying to collect the taxes on these transactions like the people in the Bloc want to do? Does that make sense, 12 different systems for business to deal with? We should be working together on a national basis to develop new programs that make it easier for taxpayers to file over the Internet or over the phone. We should be working together to develop the world's finest software for privacy protection. We should be working as one to spend limited resources to guarantee that technology serves the interest of Canada and the interest of Canadian taxpayers. Working together to serve the interest of Canadians makes sense.
We are creating the new Canada customs and revenue agency with the goal of forging new partnerships with the provinces. We are making a very serious effort to reach out.
This bill is about providing more options to the provinces, giving them alternatives that can better serve the public interest. The provinces and territories will have the right to nominate people for 11 of the 15 positions on the agency's board of management.
I must emphasize that the participation of the provinces is completely voluntary. The provinces will maintain control over provincial tax policy while the new agency will administer these policies. This means that a province or territory will retain full authority over the tax and will be accountable to its taxpayers for it.
The opposition parties seem fairly worked up by the fact we are moving to pass this legislation without having the provinces on board. I have met with the provinces. I have met them on a number of occasions. They all have supported the concept and we will work closely with them. But I am a realist. I know that we will have to work hard to earn the provinces' business. Frankly, I do not mind if the provinces want to kick the tires of the new agency or take it for a test drive. It will be a lot easier for them to buy into something that is a real entity than a proposal on paper.
Garth Whyte said for the CFIB: “If we wait for everybody to come on side it never gets done”. We have lots of examples. When we try to get everybody on board it never gets done. We have to move on and show leadership.
Mr. Blair Nixon of the Canadian Bar Association said: “Go forward. Pass it and let the agency convince those who are going to be able to enjoy the efficiencies”. Mr. Robert Spindler, representing our country's chartered accountants stated: “It is usually better to start the process and then draw people in rather than to turn it around and wait for the people to come and then develop the system. The agency represents an opportunity. Having the infrastructure at least allows that opportunity”.
This legislation provides for a uniquely Canadian model for customs and revenue administration, a model rooted in a non-partisan public service, a model based on partnership with the provinces, a model respectful of our Canadian parliamentary traditions, a model premised above all on fairness for Canadians and service to Canadians.
On every major front the concept of a new agency makes plain, ordinary, everyday common sense. But as I indicated, the bill before the House is far superior to the original plan. We have, for example, removed provisions that would have allowed for the imposition of user fees without the approval of elected officials. We have acted to guarantee that Canadians will receive service anywhere in Canada in the official language of their choice. We have ensured the agency will have the flexibility to deal with the fundamental personnel issues of hiring, training and retaining quality employees.
Most important, we have acted to strengthen ministerial accountability. Over and over again I heard from Canadians that political accountability is absolutely paramount if we want to guarantee fairness to Canadians. Individuals and organizations alike were adamant that the Minister of National Revenue retain the primary stewardship role.
I took that message very much to heart. As I have said time and time again, the bill does not mean the agency will not be part of the government.
The new Canada customs and revenue agency will remain proudly in the public service of Canada and a strong federal agency. For example, whenever a member of parliament wants me to inquire into the fairness of how a specific case is handled, I will have the power to do so. I will respond directly to them, as I do now.
Let me be crystal clear about the accountability measures contained in this bill. The Minister of National Revenue will be fully accountable to parliament. The Auditor General of Canada will audit the agency's books and the agency's work. A corporate business plan must be submitted to the minister for Treasury Board for approval. The minister will submit an annual report on its operations to parliament.
There is also a mandatory review of recourse mechanisms by a third party after three years, as provided in section 59 of the bill. A summary of the results will be included in the agency's annual report to parliament.
The Public Service Commission can review and report on the agency's staffing procedures.
Parliament will conduct a legislative review in five years.
No private sector member of the board of management will have access to any file of any taxpayer. Only the minister will have that oversight power.
As the Canadian Federation of Independent Business told the finance committee of this House less than two weeks ago, “Bill C-43 addresses the main concerns of political accountability, privacy and provincial autonomy identified by our members”.
As the Institute of Chartered Accountants told the same committee:
It is clear that comments provided... during the consultations, were heard and taken into account. We're pleased to see that under Bill C-43, the Minister of Revenue will retain responsibility for this Agency and it will be structured to allow for close Ministerial oversight and, in particular, that the Minister's power of inquiry into any activity of the Agency will be maintained.
As both the bar association and the tax foundation put it to the same committee, “We support the initiative currently being advanced by this government”.
The people on this side of the House consult with Canadians, they listen to Canadians and they respond, just as we have in this bill.
As much as I welcome such serious backing for this bill, I am well aware that the creation of the agency is only the beginning of the process.
Earning the trust of as many provinces as possible is essential. I am trying to do that by building a better framework.
Ensuring fairness for every single taxpayer is also very critical. That will be my priority every hour of every day. Canadians deserve nothing less.
Treating our incredibly dedicated employees with understanding and empathy is vital. I know some of them are a bit apprehensive about change. I will do my very best to make the transition as easy as possible.
Safeguarding the faith of Canadians in our tax system is of the utmost importance. That, after all, is what makes it all work.
I promise the members of the House that, regardless of what happens to this bill, I will soon come forward with a fairness action plan and I will deliver on my word.
I intend to continue seeking advice from the vast range of Canadians on means to improve service to taxpayers. With the help of members of parliament from all parties, I will act on that advice.
The truth is that I feel deeply honoured to be the trustee of Canada's tax system. It is a fine and honourable system held in high regard around the world. It is an amazing system premised on honesty, voluntary assessment and fair payment of taxes owing. It is a system upheld by public servants of hard work and decency.
The job of every member of parliament is to take the necessary steps to make a great system even better. The job of every member of parliament is to ensure that our tax system is unquestionably the world's finest and fairest, and that it remains so. Our job is to take the necessary steps to seize the opportunities and meet the challenges of the modern era. Our job is to eliminate the red tape, chop away the overlap, cut wasteful costs, build new partnerships, take advantage of technology, make the most of far-sighted management practices, offer better service and make the system work to Canada's advantage.
This legislation is a major step in that direction. This legislation is a major step forward. This bill is all about providing better service to the provinces and the territories, to businesses and, most importantly, to individual Canadians.
I know that my friends in the opposition will want to mount vigorous criticisms of this bill. I respect that. I do not understand it, but it is the bedrock of democracy.
At the end of the day, however, I urge all members of parliament to remember three simple facts. First, there is only one level of taxpayer in Canada. Second, this bill has massive support from a wide range of Canadians. Third, this bill makes plain, ordinary, everyday sense to Canadians.
In the end, this bill is not about politics. It is about doing something positive for Canada.
I urge members of the House of Commons to vote yes to this bill and to do this with genuine enthusiasm.