Mr. Speaker, it is a pleasure today to speak on Bill S-16 which deals with double taxation with the countries of Vietnam, Croatia and Chile. This is very important.
Double taxation has often been seen as a real hamstring to our private sector. The removal of double taxation also enables developing countries in particular to develop a stronger economy in the future. It also enables companies in other countries to work effectively.
The end effect of the removal of double taxation actually lowers the taxation levels for the private sector so the private sector can engage effectively in these countries. We should strive to ensure that taxation occurs only in one country rather than two.
In the case of South Africa, the removal of double taxation which took place a few years ago was very effective and helped to stimulate investment in that country in a very effective way. It all boils down to a way of improving development in developing countries. It also helps the neediest people in those countries.
The government needs to address the aspect of taxation within our country. As we know, the taxation levels here are probably the greatest barrier to the ability of our private sector to be competitive. In comparing our situation to that of the United States, couples with two incomes are actually earning 44% more take-home pay than an equivalent couple in Canada.
Businesses are labouring under a tax level that is at least 13% greater in Canada. It hamstrings the ability of our private sector to be competitive with countries down south and, as a result, has contributed to brain drain and the inability of our private sector to be as aggressive as it could be.
I would ask the government to look at the egregious rules and regulations that hamstring our private sector. We continue to put rule after rule after regulation on the books without taking a step back and looking at whether the rules and regulations are necessary. It would be wonderful if the finance committee created a subcommittee and utilized the private sector and its experience to look at the rules and regulations that exist on the books and remove the ones that are ineffective. By doing this we would greatly improve the nimbleness and efficiency of the private sector and, by doing so, enable the private sector to hire more individuals and be increasingly competitive in the global economy.
We need to look more carefully at research and development. Research and development is a cornerstone and a pillar of our economy. Right now we are at the bottom of the barrel of all OECD nations.
Education needs to be spruced up. We need to look at how education can better reflect the needs of our economy in the future. I would ask the government to work with its provincial counterparts in developing a think tank to ensure that our post-secondary institutions and students can better understand the needs of the future and thereby get skills.
There is also room for looking at the European experience in non-post-secondary university type settings where people can get the technical skills that are going to be required in the future. This does not require a university education. The technical skills are desperately needed in our country today and will be needed in the future. The government can certainly take a leadership role along with its provincial counterparts in creating institutions which will teach technical skills to our youth.
This bill comes from the Senate. Our party has spoken at length about the Senate and the desire of many members of the House, as well as many others, to have a democratic Senate. Senators have recently been appointed by the Prime Minister. If the hallmark of democracy is the ability of the people to vote for their representatives in this House, the Senate fails.
There are many good people in the Senate, but there are some who are not pulling their weight. It would benefit all members of the Senate, the good ones in particular, if we were to have an elected Senate. If we had an elected Senate people from all across the country, the best and the brightest, could become candidates. The Canadian people could then decide. We would have a much more vigorous Senate. It would truly be a House of sober second thought which could more effectively work with members of parliament to provide the best legislation to Canadians.
In closing, I would like to move an amendment, seconded by the hon. member for Surrey North, which reads:
That the motion be amended by deleting all the words after the word “That” and substituting the following therefor:
“this House declines to give second reading to Bill S-16, an act to implement an agreement between Canada and the Socialist Republic of Vietnam, an agreement between Canada and the Republic of Croatia and a convention between Canada and the Republic of Chile, for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, since the principle of the bill which was proposed by the unelected Senate fails to address the matter of the Prime Minister's refusal to respect the democratic rights of Albertans when he appointed a former Tory MP to the Senate.”