Madam Speaker, I stand to speak to Bill C-10, an act to amend the Municipal Grants Act.
I would like to put on the record the purpose of this act, which is to provide for the fair and equitable administration of payments in lieu of taxes. It addresses the issues of compensation for untimely payment, defaults on tax obligations by certain tenants of the crown and the bijural nature of the Canadian legal system. Additionally, it establishes an advisory panel to advise the minister on disputes concerning payment amounts. It also amends the title of the act to the payments in lieu of taxes act. That is the purpose of the act. That is the purpose of the debate.
We tend to differ in the description, but that is the description provided to us by the government.
Let us take a look at the relationship of the municipal government to the provincial government and then to the federal government. About 15 years ago, long before I ever thought I would be crazy enough to get involved in politics, I vividly recall sitting in front of my television set watching Allan MacEachen, the then Liberal finance minister, waxing eloquently from his place in the House. He was going on about the fact that the Liberal government of the day, of which the Liberal government today is simply a carbon copy, was going to balance its books. In a typical Liberal sleight of hand, what it was basically doing was offloading expenses from itself to the provinces.
Living in the province of British Columbia at that particular time, as I recall, things were at a rather tight juncture. It was in the early eighties. We had been slapped with the grossly ill-conceived concept of the national energy plan of the Liberals, the centrist plan that pulled about $80 billion permanently out of western Canada into central Canada. I recall thinking to myself at the time that the downloading to the provinces which Mr. MacEachen was talking about and the fact that the province of British Columbia was in no position to actually do anything about it, undoubtedly would end up appearing on my taxes, and would undoubtedly come out of my pocket, one way or the other, particularly as a homeowner.
It did not take long. The reality was that although the federal tax take out of my wallet and the wallets of my neighbours was not diminished, and the tax take out of my wallet and the wallets of my neighbours by the province was not diminished, the government ended up downloading it to the regional district in which I lived, which was the equivalent of a municipality. By downloading it what basically happened was that my property taxes went up by $200 that year.
A Liberal finance minister stood here about 15 years ago and waxed eloquently about how he was going to get federal taxes under control and how he was coming closer to balancing the books, but of course the government never did. It just kept on adding and adding to what is now the massive national debt. The government talked about how it was going to get things under control, but I knew, because it was being announced by a Liberal, that there was going to be more money coming out of my pocket.
I would take the Liberal member for Oak Ridges at his word if the municipalities were looking at this, were involved in it and had some input into it, but unfortunately they are faced with the reality that they are at the bottom of the food chain as far as being able to look after themselves and being able to take care of their own fiscal requirements.
I should add that one of the great things about municipal finances is that on a year to year basis municipalities may not go into a debt or deficit situation. The government could certainly take lessons from that. It is something for which the municipal politicians deserve great credit. The fact is, they have to come up constantly with the delivery of services for people at the municipal and regional district levels. The municipalities manage to deliver services, be they to people, be they for reasons of property, or just the services of cleaning roads and streets, in spite of all the offloading of the Liberals in Ottawa. Let us be clear, it was the Liberals who downloaded all of the expense that has sifted down through to the provinces and on down through to the municipalities. Once again the taxpayer is being double whammied by the Liberals.
Why do I say that I understand what the member for Oak Ridges was saying, particularly with his involvement and the involvement of other members of this House in municipal governments? Why do I say that I understand where they are coming from in terms of the municipal governments being let in on some of the ideas that the federal government has, at the same time knowing that they have a gigantic club over their heads? They do the best they can. They make a silk purse out of a sow's ear, to use the old saying.
I should also add that I was rather interested in this prominent Liberal member's musings that perhaps the middleman should be eliminated, namely the provinces; that somehow the municipalities and regional districts would be better off if they were dealing directly with the federal government. Heaven help them. When we shake hands with these people we wonder if we will still have our wedding rings.
Municipal governments are creatures of provincial governments. They are not recognized under Canada's constitution. They are completely under the direction, the control and the legislative authority of the provinces. The member suggested that we eliminate the middleman. That is to say, maybe we should remove the direct control of the municipalities which are delivering the services closest to the people, closest to their homes. This is the garbage collection. This is the social services cheque. This is the street cleaning. This is making sure that the gutters are clean and the leaves are removed. These are the details of everybody's life. Should we take the current authority for that, the provincial government, which heaven only knows is far enough away in most situations, and give it to Ottawa? That would mean that the municipalities and regional districts would answer to, be responsible to and be under the legislative authority of the federal government. I do not think so.
The government talks frequently about the infrastructure program. Let us take a look at how this act, Bill C-10, an act to amend the Municipal Grants Act, relates to the income of the municipalities. Looking at the past infrastructure program—and I understand that there is a proposed program coming, just in time for the next election no doubt—wondering why the municipalities express being in favour of it is not rocket science. It is very simple and straightforward.
So far I have described the problems which municipalities face because of the offloading of expenses from the federal level to the provincial level and ultimately to the municipal level, the municipal level having to work on a deficit free budget year in and year out. The municipalities are faced with a cash crunch. There are so many hands in their pockets from the authorities higher up, there are so many strings attached to any money that is available to them, that they will take any money they can get for needed capital projects.
Why are they not carrying on with capital projects without an infrastructure program? Because this government has attacked their very tax base. They do not have a tax base from which they can get the funds to do the things on their own.
It makes me think of the government's attitude toward the family. The government will take $6 billion from people earning under $20,000 a year this year. It will take $6 billion in taxes, give them peanuts back and say, “Here is a little grant and another little grant. Are we not wonderful people?” The government will continue to have its hands in the pockets of individual Canadians, businesses and municipalities. It will continue to act like a gigantic vacuum cleaner. It will bring all the cash here to the bureaucracy in Ottawa, then turn around and give a pittance back.
The municipalities in light of that look at an infrastructure program and say, “Now we are getting something a little bigger than the pittance we normally receive. Now we are supposedly getting two-thirds free money”.
This is the way the infrastructure programs basically work. Let us say a municipality wanted an intersection upgrade. That is very easy. For different traffic islands, curbing, traffic lights and signals, it is easy to invest $1 million in infrastructure like that. Let us simplify it and say it will cost $900,000. The municipality has to raise $300,000. The province has to match that with another $300,000. The federal government can match it with another $300,000.
It is interesting that for just under $1 million for an infrastructure program, the federal government only invests $300,000 and gets all the credit for it. It is an absolutely wonderful, masterful way of moving around a pea under shells. The government manages to baffle people who are not necessarily prepared to take the time to understand just how far the government has its hands in the pockets of individuals, businesses and municipalities.
As a creature of the provincial government, one of the difficulties municipalities have is when they do their budgeting. This varies from province to province, but as a blanket statement it seems to me that in doing their budgeting, the municipalities are never really sure of what the actual grants will be from the provincial government. In turn, one of the concerns I have about this or any other legislation, is rather than being tied into something concrete, hard and normal, Bill C-10, an act to amend the Municipal Grants Act, does not resolve the problem of where the money is going to come from.
According to Bill C-10, the minister is given the authority to pay interest on the payments in lieu of taxes if, in his opinion, that payment in whole or in part has been unreasonably delayed. That is just about as soft and mushy a bunch of words as I have ever seen in any act.
In the minister's opinion. Who is to say what the minister's opinion is going to be? Unreasonably delayed. Who is going to set the yardstick for what is reasonable or unreasonable?
On third party leases, the government leases some of its properties to non-departmental third parties. In the past, municipalities have experienced difficulty in collecting property taxes from these third parties with payment sometimes never being made.
To correct this situation, Bill C-10 proposes that if, as of the day following the last day of the taxation year, all or part of the taxes remain unpaid and if, and here we go again, “the minister is of the opinion”—that is the qualifier—“that the taxing authority has made all reasonable efforts to collect the tax and there is no likelihood that the authority will ever be able to collect it”, then the property will be deemed to be a federal property and the federal government will pay the payment in lieu of taxes.
Again, as with all the legislation, without exception, that is ever brought forward by this government, there is all of this continuing latitude for the minister, “in the opinion of”, “if it is unreasonably delayed” and things that are simply not clear and not made definite.
It is absolutely paramount that the municipal authorities are able to do their budgeting. They already have a serious problem. In various provincial jurisdictions the province may be treating them fairly and in a timely manner, and in other provincial jurisdictions they may not. It can vary in treatment from place to place even within a given province.
Bill C-10, an act to amend the Municipal Grants Act, continues with all this latitude for the minister, “in the opinion of” and “if it is unreasonably delayed”.
Why are the municipalities having difficulty in providing the level of service that people want, expect and deserve? This will vary from municipality to municipality. While it is mandated under their current spending that they may not go into deficit, they may nonetheless become involved in capital spending through borrowing. Some municipalities have gone into debt quite seriously. They go ahead with heavy municipal borrowing so they can go ahead with infrastructure programs.
That is the reason many municipalities respond very positively to the infrastructure program. It simply gives them back money that has already been extracted from them, from their constituency and from their province, but they nonetheless respond positively to it. Other municipalities will have decided that they are going to use a pay as you go basis with respect to the majority of their capital expenditures.
In the municipality of Cranbrook, where my constituency office is, there is a very serious challenge in terms of the streets. The city proper of about 15,000 is actually built on an old glacial gravel bed. Down under the topsoil, which is only a couple of inches, there is a deep gravel bed. This has created a serious problem for the main streets and side streets. As the city has grown, and as the amount of truck traffic in particular has increased on the feeder streets, the side streets simply have not stood up. As a consequence there is a constant battle of the budget.
I do not own property in Cranbrook. Therefore I am not offering an opinion, but an observation. The challenge is to say that a street is in such a state of disrepair that it requires temporary remedial action or that a very large volume of money is going to be spent to go down as far as 8 feet or 10 feet into the gravel so that the street can be built back up again and it will be permanently changed.
These are the kinds of challenges that municipalities are faced with on a month to month basis, particularly in Canada. With the exception of the lower mainland of British Columbia, we have a very harsh climate that drives the frost well down into the ground and into the services that are underneath the roads.
The point I am trying to drive at is that municipalities need more than anything the assurance of funding, where the money is going to come from. The province of British Columbia because of the NDP government of the last term and a half has a terrible situation. The government is having to extract more and more from the municipalities which is putting them at a real disadvantage.
In conclusion, my concern about Bill C-10 is simply this. What we need in our province, and I believe for that matter in all provinces for all municipalities, is more surety of funding. Unfortunately in my judgment, Bill C-10, an act to amend the Municipal Grants Act, does not provide that surety.