Debates of Jan. 31st, 2001

Canadian Economy

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, the member is mistaken.

As the result of the economic statement, taxes on corporations in Canada, on capital gains and on options will be lower than in the United States. It is obvious we have taken the necessary steps. If other steps are required, we will certainly consider them.

Transportation

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, during the last election campaign, the Minister of Public Works and Government Services and organizer for the Liberal Party made the following pledge to the citizens of the Montérégie region, on Montreal's south shore:

Our commitment is a firm one. We want to build both bridges and 14 kilometres of highway.

Only yesterday, the member for Beauharnois said:

We pledged to invest $357 million.

Last week, the Minister of Transport wrote to his Quebec counterpart that the Liberal promise was no longer valid.

My question is for the Prime Minister. Could he tell us whether or not his government will invest the $357 million that was promised?

[David Collenette, Liberal, Minister of Transport]

Mr. Speaker, let me first congratulate the hon. member on his appointment as transport critic for the Bloc Quebecois.

Unfortunately, the hon. member is making a big mistake. In my letter to Mr. Chevrette, I wrote that the federal government would be reviewing the issue of highway 30 on a priority basis.

That is the position of the Canadian government. We are in favour of extending highway 30 to reduce traffic congestion in the Montreal area.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, the residents of the Montérégie region want a clear answer.

In the mailer from the member for Beauharnois—Salaberry, the Prime Minister said that the options offered would be crystal clear.

We want a clear answer. Will the Liberal government make good on its promise, or will it break it as it did with the GST?

[David Collenette, Liberal, Minister of Transport]

Mr. Speaker, the Canadian government's position is clear: we support extending highway 30.

We are prepared to work with our friends from the Quebec government to reduce traffic congestion on the island of Montreal.

The Economy

[Jason Kenney, Canadian Alliance, Calgary Southeast, AB]

Mr. Speaker, Canadians will be very surprised to learn all of a sudden that we have lower taxes than the United States. Our taxes federally are at least a third higher than in the United States. That was one heck of a nose stretcher.

The finance minister says that everything is fine and that we can be happy. The chairman of the U.S. federal reserve says that there is zero growth in our largest trading partner. Many major economists say the U.S. is headed into a recession or is in a recession.

It has cut an unprecedented one full point off interest rates in the last month, including today. The markets are not reacting. This could pose a crisis for the economy. What does the finance minister intend to do about it?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, I neglected to congratulate the member for Richmond on posing his first question in the House, and I would like to congratulate him. I wish I could congratulate the financial critic who was in New York with me at the time we had discussions with representatives of the American business community.

They seemed to understand that Canadian corporate taxes will be lower than those of the United States. They understood that our capital gains taxes are now lower than those of the United States. They also understood that our treatment of stock options is more generous than in the United States. If they understand it in the States, why does the critic for the Alliance not understand it?

[Jason Kenney, Canadian Alliance, Calgary Southeast, AB]

Mr. Speaker, if they understand it, why are Canadian business people, investors and young people leaving the country every day to pursue economic opportunities in the United States? They understand that there are greater economic opportunities where taxes are lower.

The finance minister is avoiding a very serious issue. We export more manufactured goods to the United States than we consume domestically. Consumer demand in the United States is going through the floor. The stock markets, as we speak, are actually reacting negatively to a 50 basis point cut in the fed rate.

What does the finance minister propose to do? Will he just ignore the growing storm clouds on the horizon, or will he bring in a budget that cuts taxes and does so quickly?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, there is no doubt that the implications of the slowing U.S. economy will have their effect in Canada. We will monitor the situation very closely and if it is necessary to take action we will take it.

I think I should be able to simply cite one economic forecaster among the many in the country to tell members exactly what the government has done. Let me simply do so.

The Conference Board of Canada indicates that recent changes in taxation, combined with the spillover from the 2000 budget, have created cuts in personal income tax, boosting household spending power in Canada. It goes on to say that at a time when the U.S. economy is slowing and exporters are hurting, the federal government in Canada appears to be riding to the rescue.

Speech From The Throne

[Benoît Sauvageau, Bloc, Repentigny, QC]

Mr. Speaker, on pages 18 and 19 of the throne speech, it says, and I quote: “Government reaffirms its commitment to support sustainable official language minority communities”.

Can the Prime Minister give us a clear definition of what a sustainable minority community is?

[Sheila Copps, Liberal, Minister of Canadian Heritage]

Mr. Speaker, I thank the hon. member for his question and also congratulate him on his return to the House.

As he has already spent some time here, he is very much aware of our desire to strengthen our commitment, not only to the viability of the francophone communities across Canada but also to their full development, wherever they are in this fine country of ours.

[Benoît Sauvageau, Bloc, Repentigny, QC]

Mr. Speaker, we are not the only ones concerned. The Commissioner of Official Languages has some concerns about this new concept or definition as well.

Could the Minister of Canadian Heritage or the Prime Minister give us a clear definition of what a sustainable minority community is?

[Sheila Copps, Liberal, Minister of Canadian Heritage]

Mr. Speaker, since the hon. member wants to make use of quotes, I too would like to use one, this one from the FCFAC stating that “It is encouraging to see the federal government speaking up to reaffirm its commitment to the principle of linguistic duality”.

I would also like to emphasize that, as the hon. member over there and his cousins in Quebec are well aware, one has to be very careful in one's choice of words.

Foreign Affairs

[Monte Solberg, Canadian Alliance, Medicine Hat, AB]

Mr. Speaker, my question is with respect to the drunk driving tragedy this past weekend involving a Russian diplomat. This is at least the third drunk driving offence in recent times involving this diplomat.

We have also received reports that the diplomat, Mr. Knyazev, had a letter from the Department of Foreign Affairs apologizing to him for his treatment at the hands of the Ottawa police the last time he was arrested for drunk driving.

Will the minister confirm the existence of this letter and ensure that the nature and contents of that letter are revealed to the House?

[John Manley, Liberal, Minister of Foreign Affairs]

Mr. Speaker, I am sure that all hon. members of the House would join me in expressing the profound sadness and concern that we feel both for the family of Catherine MacLean as well as for Catherine Doré, who has suffered serious injuries as a result of this incident, and her family. It is a tragedy and it is a great loss of a wonderful person.

We have made our views very clearly known to the Russian government. We asked it to waive diplomatic immunity in this case. Our concern is that the individual involved in the accident be required to face justice. We expect that to happen at the hands of Russian authorities.

[Monte Solberg, Canadian Alliance, Medicine Hat, AB]

Mr. Speaker, I would really like a response to the question I just raised. I also point out that this is at least the third time Knyazev was stopped by police for drunk driving. Each time the Department of Foreign Affairs was informed.

Why was this diplomat not expelled long ago when it became clear that each time he went out on the road he was endangering Canadian lives?

[John Manley, Liberal, Minister of Foreign Affairs]

Mr. Speaker, I am not aware of the letter to which the hon. member refers.

Generally speaking, the Ministry of Foreign Affairs is not informed of incidents unless a charge has been laid. On investigating the information that we had with respect to police investigations in the community, we did not have information that any other charges had been considered or laid against the individual. We had only been asked for a photograph of the individual involved, which was provided to the relevant authorities.

International Aid

[Sarkis Assadourian, Liberal, Brampton Centre, ON]

Mr. Speaker, my question is for the Minister of International Co-Operation.

The massive earthquake that rocked the Indian subcontinent last week has affected millions of people. Let us join with those constituents in Brampton Centre who are among the many Canadian relatives of the victims as we mourn the deaths and pray for strength for those facing devastation and misery.

Could the minister tell the House what efforts have been made by the Canadian government to provide assistance to the victims of this devastating earthquake in India?

[Maria Minna, Liberal, Minister for International Cooperation]

Mr. Speaker, I extend my deepest sympathies to the families of the people of India and to the communities in Canada with families there. Having been involved in an earthquake myself very recently, I know the devastation that it can create.

As soon as the Indian earthquake took place, I immediately announced $1 million in assistance to deal with the information I had at hand.

I tripled that to $3 million in health assistance for some 100,000 people, shelter for about 20,000, clean water for about 25,000 people, and clothing for about 50,000. I will be announcing further assistance in the near future.

Agriculture

[Dick Proctor, NDP, Palliser, SK]

Mr. Speaker, farmers are again demonstrating on Parliament Hill because they are being forced into bankruptcy. New parliament, same problem.

According to figures released yesterday by the government, the average return last year for a Saskatchewan agricultural producer was $14 a day. There is no support for farmers, which would be entirely legal under the WTO, but billions in highly questionable loan guarantees are instantly available to Bombardier.

Spring seeding is just months away. When can Canadian farmers expect to hear of some meaningful assistance for them from the government?

[Lyle Vanclief, Liberal, Minister of Agriculture and Agri-Food]

Mr. Speaker, since June 1997 the government has increased support to the safety nets for Canadian farmers by 85%. Last year we put in place a program, for example, of interest free money available to individual producers. That will be available for producers again this year.

We are continuing to look at a number of ways in which we can add further support to combat the stress we know is there, particularly in the grains and oilseeds sectors of Canadian agriculture.

The Economy

[Joe Comartin, NDP, Windsor—St. Clair, ON]

Mr. Speaker, yesterday's throne speech was little more than a rehash of tired Liberal platitudes, offering little for Canadians to cheer about. While the government is busy patting itself on the back and telling us all is well, thousands of workers in the city of Windsor and in communities like it are facing layoffs and plant closings.

Will the finance minister today commit to introducing a budget with concrete measures to address the impending economic downturn and crisis in our auto industry?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, as I have said repeatedly in the House, obviously we are concerned by the implications of the slowdown in the United States. The fact is that the very large fiscal stimulus of tax cuts and spending on things like health care is exactly the tonic required.

I must say that the $17 billion tax cut for this year alone only went into effect less than a month ago. That being said, we will continue to monitor the situation in the United States and will take whatever action is required as circumstances warrant.

Human Resources Development

[André Bachand, Progressive Conservative, Richmond—Arthabaska, QC]

Mr. Speaker, could the Prime Minister explain to this House the link between the suspicious circumstances surrounding the loan to Auberge Grand-Mère, an issue with which he is very familiar, and the fact that the Federal Business Development Bank has had three different chairmen over an 18 month period, which is also something the Prime Minister is well aware of?

[Brian Tobin, Liberal, Minister of Industry]

Mr. Speaker, as I said earlier today, the ethics counsellor wrote to the Leader of the Opposition in response to his letter.

It does not matter how much the leader of the Conservative Party wishes it were otherwise, the fact of the matter is that the Prime Minister, a 38 year veteran of the House, is a man of integrity. His reputation has been completely upheld by the ethics counsellor.

If the member opposite were a gentleman he would accept that and stop this character assassination.