Mr. Speaker, I appreciate the opportunity to speak to this very important private member's bill.
I appreciate the introduction by the illustrious member from the New Democratic Party. He has been a long time member of the House and has been around for many, many years. He is a very useful tool in reminding us of things that have taken place in the past. Certainly the sins of the father are sometimes revisited on the son.
This is a very important piece of legislation because it brings about a very positive change in an industry that is very much in need of attention at this time. That is not unlike other industries and other Canadians generally who are suffering from the high cost of tax that is taken from their income. Mechanics are no exception.
This bill, which has garnered a great deal of support, in a very non-partisan way I hasten to add, has also gathered a great deal of support around the country. I commend the member for Beauport—Montmorency—Côte-de-Beaupré—Île-d'Orléans for the work he has done, and the member for Lakeland who brought forward a similar private member's bill. There is a sense that the government may in fact be listening but that remains to be seen.
This legislation is very much a common sense approach to a problem that has existed for a long time, namely that mechanics are faced with an incredible startup cost when it comes to beginning in their profession. As has been alluded to, indications are that the average startup cost is anywhere from $15,000 to $40,000 to break into an industry that, like other industries, is moving toward a more technological and highly advanced profession. The tools themselves, the power tools and the basic tools, are extremely costly and often the power tools are in need of a great deal of ongoing maintenance.
The bill is aimed at giving an industry in need tax relief that is brought about in a very straightforward way and, I would suggest, in a common sense fashion. This is uncommon in this place when it comes to legislation.
In many ways my initial reaction when we started talking about amending the Income Tax Act was to be a little concerned that once again we would be making a more convoluted attempt than was necessary. Short of the Revenue Canada Act or perhaps the new youth criminal justice act, the bill is aimed at streamlining as opposed to adding layers of legislation and layers of bureaucracy on top of one another, as is far too often the case.
The government members who have spoken to the bill would lead Canadians to believe that significant tax relief has already been brought about by this administration. We know that nothing could be further from the truth. In fact the most recent budget is rear end loaded; that is to say, much of the benefits of the budget will not be felt for a number of years, in fact years that go far beyond the government's current mandate.
This bill is aimed at assisting mechanics in a very real and tangible fashion. There is a great deal of need in this area. There is a great deal of need when it comes to the tools themselves being considered very much a part of the profession, which they are. They are an integral part of any mechanic's existence and profession. The proportionate investment that is made by mechanics and the reliance on their tools highlights that very fact.
The cost as I alluded to is extremely high. Sometimes that cost, being as high as $40,000, may be more than the annual income of a mechanic who is starting up in that profession.
There is a need for standardization across the board. For example, chainsaw operators and musicians are permitted to deduct the cost of their chainsaws and musical instruments. Why then should there not be a similar tax deductible mechanism in place for mechanics? There has to be some uniformity and fairness with respect to industries and eligibility for tax deductions. Not unlike other industries such as fishing and farming, there is an intrinsic connection between the individual and the tools and machinery that are required to provide the service in the profession.
The other important issue with respect to this bill is that there is a labour aspect, an element of employment, attached. Currently with such high initial costs, many young Canadians who have the possibility to get work after receiving training, be it at a community college or through a mentoring program, are faced with a monumental startup cost that they simply cannot afford. Therefore it continues this trend that we have seen in other professions which has become colloquially known as the brain drain.
Mechanics are no exception. Indications are that many mechanics are facing the very gut wrenching decision of whether to stay in their hometown, their community, their country or to go to the United States or other countries where they are given greater tax relief and perhaps a better life by virtue of being able to keep what they earn.
An element of this bill talks about maximizing job potential which we in the Progressive Conservative Party are very supportive of to say the least. Studies have shown that the mechanics industry has experienced a serious decline with respect to enrolment in technical institutions. I think this good faith initiative that has been brought forward addresses in some measure that exact problem.
The Canadian Automobile Dealers Association and other national organizations have embraced this legislation as a good idea. They have lobbied not only opposition members but presumably government members. They have reminded them that this is something that has been in the works, has been in the hopper, for some time. There is a great deal of support and demand that the government adopt such an initiative.
Time and time again the government has demonstrated that it is quite devoid of new ideas and this is quite sad. It trundles along in mediocrity. We are seeing more and more that the real initiatives are coming from the opposition benches. Therefore, we are faced with the difficulty of it becoming a partisan effort which is unfortunate because this does not benefit Canadians. I see that Mr. Speaker is nodding in agreement with that suggestion. The government is not listening to Canadians and is not responding with the initiatives and the legislative change that is required.
With regard to tax deductibility for technicians, this idea was established in response to the industry itself and the growing concerns over the unfair treatment of automobile technicians. Working groups consisting of automobile industry associations from across the country have all banded together and spoken in support of this type of initiative.
The mechanics, like other Canadians, cannot be denied access to some form of tax relief. This is a very straightforward and common sense approach. Mechanics singularly are hardworking Canadians who want to take part in the new economy and be able to keep their hard earned working dollars. There is no reason whatsoever that they should not be afforded access to the same types of tax breaks that are prevalent in other industries.
Competition, increasing attention to detail, and the increasing bureaucracy that small businesses are faced with are other drags on the economy and on the mechanics industry itself. Insurance and the cost of maintenance when it comes to maintaining a garage and the tools of the trade are burdens for which mechanics, like others, are looking for some form of assistance. That could be brought about through the adoption of this type of legislation.
In November 1998 the Canadian automobile industry appeared before the finance committee in various capacities and organizations and made specific recommendations very much akin to this legislation. Since 1992 all of these groups representing mechanics and organizations across the country have been urging the government to move in this direction.
I have met personally with individuals like Brad Smith of Westville's Radco Enterprises and Dan McDonald of Scotia Diesel in Antigonish. Both of them were very open and frank in their support for this type of legislation which would allow them to keep their hard earned tax dollars. That we know will generate further growth through spinoffs in the economy.
Allowing mechanics to write off their expenses in relation to the cost and maintenance of their tools and their workshops is something that the Progressive Conservative Party very much embraces and supports.
We support the hon. member who has moved this bill through the Commons. We are hoping that the government members will try to break away from the tired and arrogant approach that we have become far too accustomed to, with no ideas coming forward, no innovation and no constructive moves. We on the opposition side are urging the government to support this legislation.
Again I congratulate all previous speakers who have brought forward their support. I encourage other members to do likewise.