Mr. Speaker, today we are discussing a motion that proposes to provide all emergency service volunteers with a new tax credit in the amount of $500 a year.
I want to preface my comments by saying that when it comes to public safety officers, I myself have had a number of initiatives with regard to police officers, firefighters and other public service safety officers whom I believe serve Canada very well.
The Income Tax Act already provides an exemption for emergency service volunteers in respect of honorariums or other amounts they may receive from a municipality or other public authority in the course of their volunteer duty. Prior to 1998 this exemption was restricted to volunteer firefighters and could not exceed $500 per year.
However, to help recognize the invaluable contributions of the brave men and women who give so freely of their time and expertise in their communities, often at significant personal risk, the government doubled the maximum exemption to $1,000 in the 1998 budget. At the same time, the exemption was extended to other emergency service volunteers such as ambulance technicians who also provide invaluable services to their communities.
The right hon. member for Kings—Hants, in bringing this motion before us, has rightly pointed out that the benefits of the $1,000 tax free amount are currently limited to those volunteers who receive an honorarium or other nominal amounts. There is currently no tax relief for those volunteers who do not receive any compensation. We acknowledge that point.
However, the motion before us seeks to address this perceived inequity by extending a tax credit to all emergency service volunteers. I am not sure exactly how that is defined but I believe that since this is a motion it is for consideration.
At first blush there is merit in the idea that all emergency service volunteers should be treated the same. I appreciate the position expressed in the motion that those volunteers who do not receive any compensation for their time and expenses should also receive some tax recognition.
However, it is important to keep in mind that the tax assistance for volunteers has in the past been restricted to amounts actually received by eligible volunteers from public authorities. This has been a longstanding policy extending back nearly 40 years and I believe there are strong arguments for maintaining that.
To begin with, the current policy recognizes that emergency service volunteers often receive small amounts to help defray the expenses that they incur in carrying out their duties. Clearly, where a public authority chooses to offer this nominal compensation to its dedicated volunteers, it would be very difficult to justify taxing these amounts as income. The $1,000 maximum helps to ensure that only reasonable amounts can be paid out on a tax free basis.
However, it is a very different matter when it comes to a general credit or deduction for individuals engaged in a particular volunteer activity. This principle applies to any tax exemption or deduction where it is an across-the-board item. It is a very expensive proposition. Such a provision would have the effect of favouring a particular group of volunteers or others whether or not they actually incur any extraordinary expenses or even participate in any emergency situations. That kind of thing would have to be resolved to keep within the spirit of the motion.
From that policy standpoint, I am not sure whether this situation would be appropriate. I think everyone here today will agree that all volunteers are to be commended and that their various contributions are equally important. In this context, it would be very difficult to justify providing a general fixed tax credit to one group of volunteers and not to others. We could expect there would be many volunteer groups who would ask why their contributions were not similarly recognized and they would be justified in doing so, I believe.
One solution to this quandary that some have suggested would be to extend the proposed tax credit to all volunteers. Of course all volunteers would then be treated equally, and I think the member is trying to establish a measure of equity. However, I strongly suspect that such a provision would be impossible to sustain. Not only would it be very expensive for the government in terms of forgone revenues, it would also be subject to considerable abuse because it would be impossible to ensure that only bona fide volunteers claim the credit. This would be because tax assistance would no longer be restricted to amounts paid by the municipality for which the taxpayer is doing volunteer work, and would leave it up to each individual to determine whether they qualify. That is problematic.
Of course individuals could be required to prove in some fashion that they were in fact volunteers. However, I suspect that such an approach would place a significant compliance burden on non-profit organizations and volunteers alike and would be very costly for the Canada Customs and Revenue Agency to enforce. This would especially be true considering the large volumes of claims that likely would be made.
I would note that the current treatment largely avoids this problem because tax assistance is restricted to amounts actually paid by the municipalities. I think the member would concede that the enforcement is better in terms of the current mechanism than what is being proposed by the motion.
Even if these problems could be overcome, I am concerned about the message that we as a government would be sending by implementing such a provision. We should remember that a volunteer is an individual who performs a particular service without expectation of personal financial gain. In contrast, introducing a tax credit for volunteer activities would need to provide a monetary benefit to individuals for becoming volunteers. This would be an odd result indeed and one that we would find very difficult to accept.
We should remember that we are talking about a principle, and the motion before this place is to consider the advisability. This is not a bill. It is to put ideas on the floor to identify areas which have to be explored further. I think the reason all hon. members come to this place during private members' business is to certainly express their views and to raise points for consideration, which is all I am attempting to do. I am sorry I have upset the member but I want to put my position on the floor.
I feel that the motion before us would do little to improve equity within the income tax system while significantly increasing the complexity and cost of compliance in administration. If implemented, the tax provision advocated by the motion proposed by the right hon. member would also put governments in an untenable position of compensating taxpayers for their personal choice to become volunteers. This, in my view, would steer us away from the notion of what volunteer activities are all about and it would not be appropriate.
For those reasons, I do not believe that the motion as it stands should be supported. I urge colleagues to rise in this place in the time remaining and put forward their points of view. That is exactly what private members' hour is all about.
I thank the right hon. member for raising the motion. When it comes to our public service safety officers, dealing with them and others who provide same or similar services should always have the attention of members of parliament.