Debates of Feb. 5th, 1998

Taxation

[Monte Solberg, Reform, Medicine Hat, AB]

Mr. Speaker, the Liberal government still wrings $3 billion a year out of taxpayers through the 3% and 5% surtaxes. These taxes were introduced, as the minister knows, as temporary measures. They were designed to be in place until the budget was balanced. The budget was balanced.

Reformers have long called for the removal of these taxes. We are going to continue to remind the minister that these taxes need to be removed upon balancing the budget. We are at a balanced budget now.

Will the finance minister remove the 3% and 5% surtax?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, we made it very clear, as we have in past budgets, that we are certainly desirous and prepared to reduce taxes.

What we are not going to do is what the Reform Party has suggested which is to pay for tax cuts by gutting health care, by gutting pensions. Indeed, we are not going to gut equalization which is what it has suggested.

The Economy

[Jason Kenney, Reform, Calgary Southeast, AB]

Mr. Speaker, not only has health care funding been falling under the Liberal government but so too has the Liberal loonie recently to its lowest point in history, forcing our interest rates up by half a percentage point.

The Prime Minister says don't worry, be happy. Instead of giving Canadians happy talk, why does the government not act to restore confidence in our currency by devoting at least half of any future surplus to the dollar killing debt so that we can pay down our debt, restore confidence in our currency and our economy?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, as the hon. member knows, the debt is the accumulation of yearly deficits. Perhaps I should remind the hon. member that when we took office in 1993 the deficit was $42 billion.

I can now assure this member that next year that $42 billion will be zero.

Bank Merger

[John Solomon, NDP, Regina—Lumsden—Lake Centre, SK]

Mr. Speaker, the finance minister is coming across looking pretty defensive these days. First he is caught off guard by the monster merger announcement. Then he tells us his hands are tied by the task force. Then today he accuses the NDP of being the bankers' friends.

But in fact in 1996 the Liberals took $140,000 from the Bank of Montreal and $110,000 from the Royal Bank.

Is that not why his hands are tied? How can the Liberals take these monster donations and then expect us to believe that the monster merger is not already a done deal?

[The Speaker]

I would say that question is out of order. Next question.

[John Solomon, NDP, Regina—Lumsden—Lake Centre, SK]

Mr. Speaker, what goes around comes around. Small business people, consumers and farmers are getting their next jerk by the banks. Now the finance minister is getting his leash jerked by the banks for a quarter of a million dollars.

Is that not why he will not stand up to the big banks? Just this once, why not put the banks on a short leash and stand up for Canadians?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, perhaps he ought to attend the odd meeting of the industry committee or the finance committee or any committee. We he ought to do is sit down with the Liberal members of Parliament who have for four years fought for small business, fought for farmers, who have brought the banks in front of the committee and said that they must improve, and in fact who are responsible for the appointment of an ombudsman.

If the NDP just once could match its rhetoric with action, we would understand what it is all about. The fact is the Liberal members of Parliament in this House have consistently fought for small businesses and they will continue to do so. They are the future of this country.

Federal Transfers

[Charlie Power, Progressive Conservative, St. John's West, NL]

Mr. Speaker, in many ways the government has reduced the deficit by transferring its problems to other jurisdictions, namely the provinces, municipalities and individual students.

This government has slashed transfers to the provinces by over $6 billion while the students of Canada have now picked up a total of $6.9 billion of debt. This is no coincidence.

My question is for the Minister of Finance. Before any minister receives a pay raise, will he be removing this crushing debt on the shoulders of our young citizens?

[Don Boudria, Liberal, Leader of the Government in the House of Commons]

Mr. Speaker, I am pleased to answer the question posed by the hon. member concerning MP compensation packages.

As he will know, the report of the independent commission has been referred to a parliamentary committee. However, I will take his question as representation for a salary increase.

[Charlie Power, Progressive Conservative, St. John's West, NL]

Mr. Speaker, my question was about student debt. So far this government has only offered band-aid solutions like the millennium fund. This fund will address only a limited number of students somewhere in the future.

My question addresses the 1.5 million students presently enrolled and the forgotten students who have already graduated and cannot find work: $6.9 billion in total debt. What is the minister prepared to do for these students who have absolutely no prospect of sharing in the millennium funds?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, it is simply incongruous that this member, belonging to a party that left this country with a massive debt and a huge deficit that this government had to deal with, now stands up here and talks about other kinds of debt when in fact the reason this government had to act was because of eight years of mismanagement.

Last year we brought forth more measures to help students than in all the previous Tory budgets combined and that party voted against them and against Canadian students.

[Some hon. members]

Oh, oh.

[The Speaker]

I remind all hon. members that this is the House of Commons, not an outhouse.

Ice Storm

[David Pratt, Liberal, Nepean—Carleton, ON]

Mr. Speaker, my question is for the Minister of National Revenue.

For many people in eastern Ontario and western Quebec the ice storm put a tremendous strain on their personal budgets and gave them little time to reflect on financial planning. Can the minister advise the House if the government is prepared to extend the deadline for RRSP contributions for those in areas affected by the ice storm?

[Herb Dhaliwal, Liberal, Minister of National Revenue]

Mr. Speaker, we care very much about the people affected by the ice storm. I am happy to announce today on behalf of the government and the hon. Minister of Finance that we will be extending the deadline for RRSPs to the end of March 1998 for those areas affected by the ice storm. This will enable them to get their financial house in order and ensure that they will be able to take full advantage of the RRSP contribution.

Medical Research Council

[Gerry Ritz, Reform, Battlefords—Lloydminster, SK]

Mr. Speaker, recently the Medical Research Council announced its grants. None of these grants found their way to Saskatchewan where a world class cancer centre is located. Meanwhile, the heritage minister announces multimillion dollar handouts to ballet and opera companies.

Does this mean this finance minister's new spending priorities are on dancers rather than cancers?

[Joe Volpe, Liberal, Parliamentary Secretary to Minister of Health]

Mr. Speaker, I am sure that the hon. member has followed the pattern of funding through the MRC. He will acknowledge that there was $238 million invested through the MRC and an additional amount with the MRC partnerships that have been encouraged over the course of the last four years.

He will know that even in Saskatchewan, some of those partnerships include institutions, industry and other organizations in order to top up the amount of money that goes into basic research which he knows and appreciates that this government supports wholeheartedly.

Victoria Bridge

[Michel Guimond, Bloc, Beauport—Montmorency—Orléans, QC]

Mr. Speaker, yesterday, all on the same day, we were told first of all that the Victoria bridge would be closed starting March 1, and then that it would remain open to automobile traffic. The public is concerned about this total confusion.

My question is for the Minister of Transport. The minister is responsible for transport, so can he reassure the public by confirming without a shadow of a doubt that the Victoria bridge will remain open after March 1?

[David Collenette, Liberal, Minister of Transport]

Mr. Speaker, there is no confusion as far as I am concerned.

As I said yesterday in the House, I remain optimistic for a solution concerning the Victoria bridge, and I hope there will be one before March 1.

Iraq

[Svend Robinson, NDP, Burnaby—Douglas, BC]

Mr. Speaker, my question is for the Minister of National Defence. Many Canadians are deeply concerned that the United States is planning a military strike on Iraq, a strike that will only further hurt the Iraqi people, especially children already devastated by the impact of sanctions.

Does the minister agree with his colleague, the Minister of Foreign Affairs, who said recently that we must maintain the integrity of the UN system in this case? Will Canada strongly oppose any unilateral U.S. military action, promote a peaceful, diplomatic solution—

[The Speaker]

The hon. Minister of National Defence.

[Art Eggleton, Liberal, Minister of National Defence]

Mr. Speaker, of course I agree with the Minister of Foreign Affairs.

One thing this government wants to see is a peaceful solution in the said matter. We want to see a diplomatic resolution so that Iraq complies with the UN security council resolution. We are resolved to see that happen.

Student Loans

[John Herron, Progressive Conservative, Fundy Royal, NB]

Mr. Speaker, my question is for the finance minister. This government's scholarship fund is simply not enough. With its cuts to Canadian students, its fund is like taking away a loaf and giving back to Canadian students merely a slice.

Is the finance minister aware that Canadian students often have a higher debt than American students? Before he gives himself and his cabinet colleagues a generous pay raise, will the finance minister tell us what this government will do to address the high debt levels that Canadian students face? This government just does not get it. Student debt is just too high.

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, there is no doubt that student debt is too high. That is why we moved in the last budget. That is why the prime minister announced the millennium fund.

It is somewhat difficult to understand how the member can criticize the millennium fund when he does not even know the details of it.

Fundamentally we have said that we are going to deal with the issue of student debt to the extent of our resources. The fact is that debt started to rise substantially under his government.

Why does he not accept and understand what it has done to the fabric of this nation?