Madam Speaker, it is with pleasure today that I rise to speak to Bill C-205. This legislation addresses the very important issue of tax deductibility for the tools of mechanics.
I have met and spoken with a number of people representing mechanics across the country. As members of the House of Commons finance committee we have heard some very sound representations on behalf of these individuals. The fact is that many of them have to invest between $15,000 and $40,000 initially as they enter this industry. Every year their equipment needs replacement and updating, which is an ongoing expense.
It is important to realize that the average income of mechanics across Canada is about $29,000 per year. It is very difficult for that industry to attract new people and to attract people with the skills and desire to succeed as mechanics with this kind of barrier to entry. It is having a deleterious impact on the ability of the automobile industry to attract people to this important area.
Initially I had some concerns that this would further complicate an already too complicated tax code, but in many ways it simplifies the tax system because it equalizes the treatment of equipment necessary for one to do his or her job. We heard other speakers this morning refer to the fact that other industries can claim tax deductibility on the equipment necessary to complete the job. This would equalize it to ensure that our mechanics have the same treatment.
It has a broad base of support from several national organizations. As well, in 1996 and 1997 the House of Commons finance committee recommended that we move toward ensuring tax deductibility of the equipment or tools necessary for mechanics to do their jobs. This is just part of the tax reform we should be seeing. It is a very small but important part for the mechanics and the people they serve. It is a step in the right direction.
I hope in the upcoming budget to see a significant level of tax reform and tax reduction, no just tofu tax tinkering but some real red meat tax reform that will help benefit Canadians and provide them with a fairer, more progressive and innovative tax system to create more of a culture of opportunity in Canada. This would be a good place to start.
With that, I ask the member for Cumberland—Colchester to provide us with some of his erudite views as a former member of the Canadian automobile industry.