Mr. Speaker, from the point of view of the NDP caucus and the investigation that we have done on the bill, we do recognize that the bill represents over two years of exhaustive consultation with all the parties, a cross-country tour and I think a genuine effort to allow all the stakeholders to have an adequate say and adequate input into developing what we think is a very important bill.
I will go even further by saying that I believe this type of consultation process could even serve as a model for other pieces of legislation because it was such a well thought out process. All of the parties came away fully satisfied that the consultation was thorough and that they had adequate opportunity to make a difference and to help shape and craft this type of legislation.
We would like to see this happen more frequently with other bills and we would hope that all of the parties, to any piece of legislation that is crafted, could feel so positive about their opportunities.
The NDP caucus believes firmly that Bill C-10 will be a direct benefit to almost 2,000 communities coast to coast to coast. We believe that it succeeds as a piece of legislation because it will enshrine, once and for all, the principles of fairness, equity and predictability in the management of our federal payments in lieu of taxes, principles which I believe are important to all members of the House on both sides.
I congratulate the members of the joint technical committee, which was made up of representatives from the Federation of Canadian Municipalities, Treasury Board representatives and other government representatives. I would also like to recognize all of the municipal representatives, mayors and councillors who met with the consultation tour during 1998. They also played such a valuable role in crafting this legislation.
All members of the House realize that the Government of Canada enjoys a constitutional exemption from local taxation. Nevertheless I think we all recognize and agree that we have a moral obligation as a property owner to help pay for the costs of local government. We are major occupants of space in the municipalities and obviously we use the services of the local government. It is only fair and right that we should be paying for them. Federal operations should contribute to the social and economic well-being of the community and certainly should not be a burden on the local taxpayer.
Over the past 50 years federal governments have adopted the policy of paying grants in lieu of property taxes in recognition of the valuable direct and indirect services that it gets from the municipalities. These payments are now in excess of $375 million annually, which represents a significant transfer of federal dollars to local communities.
These federal payments contribute to the local economies. They are of great benefit and as such contribute greatly to the well-being of Canadians in general. Imagine the impact on the finances of a region like Ottawa-Carleton or the city of Hull if the Government of Canada reneged on its burden as a property owner and stopped making payments in lieu of taxes. It would be devastating.
It is fair to say that we all recognize and accept the rationale for these payments. Canadians realize their value and their necessity. That is not at issue today.
Bill C-10 deals with ways to improve the administration of the payments. Taking into account the far reaching changes that have occurred in the municipal taxation front over the last two decades, the legislation needed to be revamped and upgraded.
The NDP caucus is satisfied that Bill C-10 will bring about positive, constructive and lasting program changes. It will confirm that the federal government does have respect for the standards set for other property owners and that it values the services it receives from municipal governments.
The goal is to make the process more predictable and to strengthen the foundation of fairness and equity on which the program was built and on which it has operated over the last five decades. We want to make federal payments in lieu of taxes resemble the taxes paid by private landowners as much as possible. We believe that Bill C-10 takes us one step further to that equitable position and still recognizes the federal government's constitutional exemption from local taxation.
Bill C-10 will change the name of the legislation and the program. In future, grants in lieu of taxes will be referred to as payments in lieu of taxes. This more accurately reflects the more explicit and respectful relationship between the two levels of government. The type of language used is very important. The term “payments” rather than “grants” more accurately reflects the mutual respect between the two levels of government.
Bill C-10 also includes a goodwill clause that confirms our commitment to fairness and equity in the administration of the federal payments in lieu of taxes. This is a very positive and necessary aspect of this newly redefined relationship.
Changes in legislation include a commitment by the federal government to endeavour to meet the payment schedules put in place locally. When payments are unreasonably delayed, the Minister of Public Works and Government Services will have the power and the authority to make payment of a supplementary amount to the municipality to compensate for the delay. This is also something which municipalities needed to be able to rely on as a stream of revenue from the federal government so that their own services would not be interrupted by some late payment on the part of the government.
Bill C-10 addresses the issue of resolution of any kind of disagreement between the two parties. Any kind of relationship like this has to have some kind of mediation process that is fair and impartial and one with which both parties are comfortable.
For all those reasons Bill C-10 will be of service to the municipalities. We believe the local politicians in the municipalities are comfortable with it. They have had a satisfactory opportunity to have input. We believe the whole process should serve as a model for the development of other types of legislation. The NDP caucus will be happy to vote in favour of Bill C-10 at third reading.