Debates of Dec. 3rd, 2001

Employment Equity Act

[Steve Mahoney, Liberal, Mississauga West, ON]

Mr. Speaker, I would not try to pretend that this is a panacea that is going to solve every problem.

In fact there was a young lady named Jessica who was the master of ceremonies at the recent new office opening of Community Living in Mississauga. She has had some difficulties in obtaining employment.

The point is there are many other examples and I could share many more. It is unfortunate if one or two of them did not work out but that does not mean we should throw out the baby with the bathwater. I certainly would not single out one company such as Blockbuster over another.

The program I am talking about is an employment resource centre which operates through the auspices and offices of Community Living in my community of Mississauga. I am assuming once again that most members would have a branch of Community Living within their communities or nearby. I would encourage them to meet with their Community Living volunteers and staff to see if they can find ways to help increase employment of these young people in their communities.

[The Acting Speaker (Mr. Bélair)]

Is the House ready for the question?

[Some hon. members]

Question.

[The Acting Speaker (Mr. Bélair)]

The question is on the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

[Some hon. members]

No.

[The Acting Speaker (Mr. Bélair)]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Acting Speaker (Mr. Bélair)]

All those opposed will please say nay.

[An hon. member]

Nay.

[An hon. member]

On division.

[The Acting Speaker (Mr. Bélair)]

I declare the motion carried.

(Motion agreed to)

The House proceeded to the consideration of Bill S-31, an act to implement agreements, conventions and protocols concluded between Canada and Slovenia, Ecuador, Venezuela, Peru, Senegal, the Czech Republic, the Slovak Republic and Germany for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, as reported (without amendment) from the committee.

Income Tax Conventions Implementation Act, 2001

[David Collenette, Liberal, for the Minister of Finance]

moved that the bill be concurred in.

[The Acting Speaker (Mr. Bélair)]

Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

[An hon. member]

On division.

[The Acting Speaker (Mr. Bélair)]

I declare the motion agreed to.

(Motion agreed to)

[David Collenette, Liberal, for the Minister of Finance]

moved that the bill be read the third time and passed.

[John McCallum, Liberal, Parliamentary Secretary to the Minister of Finance]

Mr. Speaker, I am pleased to rise today to speak to Bill S-31, the Income Tax Conventions Implementation Act, 2001, at third reading stage. This bill enacts recently negotiated tax conventions between Canada and eight countries.

Exports account for more than 40% of our annual gross domestic product. In addition, foreign direct investment and inflows of information, capital and technology also impact on Canada's economic wealth.

The existence and nature of a tax convention can have an impact on decisions made with regard to investment and international trade. Therefore, the importance of such conventions cannot be underestimated.

Tax treaties do not impose tax. Nor do they generally restrict countries from taxing their own residents as they see fit. Among other things, however, tax treaties set out rules whereby one country can tax the income of the resident of another country. This is important for traders, investors and others with international dealings who are interested in doing business in Canada. It is only natural that they want certainty as to the tax implications associated with their activities here.

The importance of eliminating tax impediments to international trade and investment has grown even more important now that the world economy has become so intertwined. It should not therefore come as any surprise that it can be advantageous to have tax treaties in place with other countries.

If anything, tax treaties have become a more important issue since the events of September 11 because the whole purpose of tax treaties is to grease the wheels of trade, commerce and investment flows. The events of September 11 have raised potential barriers to international transactions so it has become that much more important that we implement measures such as tax treaties to reduce the barriers.

One of the things we have had to fight against in terms of the risk of barriers being erected has been the highly irresponsible language of the official opposition in the Chamber when it says with no justification whatsoever that Canada is a safe haven. That message goes through the Canadian media into the U.S. media and becomes part of our problem in convincing the Americans of the safety and security of our system.

The fact that Mr. Ashcroft is here today and the U.S. administration has seen fit to sign agreements with us designed to keep the border open is welcome news. However it is not because of the opposition. It is in spite of its behaviour.

Before September 11 tax treaties were highly advantageous. Since September 11 this contention has become even more valid. Today we have over 70 tax treaties in force with other countries. Passage of the bill would increase that number to over 75. The bill would legislate eight tax treaties including new treaties with Slovenia, Ecuador, Venezuela, Peru and Senegal plus revised treaties with Germany, the Czech Republic and Slovakia.

There is considerable agreement in the House on the bill. It is a bill of great importance but of little if any controversy.

The elimination of double taxation is the principal benefit we would have from these new treaties. This would increase the certainty with which transactors and investors could live, work and invest in these countries. It is therefore in the interest of Canada.

In conclusion, I would like to summarize some of the benefits that passage of this bill will bring to taxpayers and businesses.

Canada will know exactly how the taxation regime of the eight countries involved will apply to Canadians, just as these countries will also know how our taxation regime will apply to their residents.

Moreover, the bill contains measures that will facilitate trade and investment, that will bring certainty and stability and that will create a climate more conducive to business between Canada and these eight countries.

Above all, Bill S-31 ensures the elimination of double taxation between Canada and these countries.

I urge all members to vote in favour of passing this bill immediately.

[Rahim Jaffer, Canadian Alliance, Edmonton Strathcona, AB]

Mr. Speaker, it is a pleasure to speak to Bill S-31 today, especially in light of the fact that there is agreement among all parties to see the bill move through the House as quickly as possible.

As the Parliamentary Secretary to the Minister of Finance has stated, the bill would help streamline tax rules in Canada and elsewhere so we can increase and promote trade and commerce with our trading partners.

I was to keep my comments brief and I still plan to do that. However the parliamentary secretary said a couple of things in his statement that I must address, so I will stretch my speech slightly. I am sure many members are excited and ecstatic to hear that.

I will specifically address the point he made that opposition parties in the House continuously cite problems with the government's policy when it comes to immigration and customs. He says we are irresponsible for doing so, or something to that effect. It is completely outrageous to make a comment like that.

Bill S-31 is an act to ratify tax conventions agreed to by Canada and Slovenia, Ecuador, Venezuela, Peru, Senegal, the Czech Republic, the Slovak Republic and Germany. These agreements were set out to avoid double taxation between the respective nations and establish a co-operative framework to prevent fiscal evasion with respect to taxes on income.

Canada is a trading nation. I do not need to tell members that. As such it is important to establish formal tax and trade relationships with partner nations. For all intents and purposes Bill S-31 is a housecleaning bill that would facilitate such relationships.

The Canadian Alliance has traditionally encouraged all measures to further equalize and liberalize foreign trade and investment. In this regard Bill S-31 is a positive measure. However we usually have concerns when bills are introduced in the Senate, a body that is unelected and unaccountable. We have concerns about bills originating from that place and coming into this place. That is our only major concern with Bill S-31.

The tax treaties the bill would implement reflect efforts to update and expand Canada's network of tax treaties to obtain results in conformity with current tax policy. These treaties are generally patterned on the model double taxation convention prepared by the Organization for Economic Co-operation and Development.

It is important to look at the countries with which Bill S-31 would establish relationships, namely those in South America and continental Europe.

Canada's economy has flourished as a result of NAFTA whereby 80% of our exports are destined for U.S. markets. As a result of the tragic events of September 11 it is more than evident that we need to diversify our trade overview and seek additional markets.

Over the past century Canada's traditional trade links with Europe have declined. Bill S-31 is an excellent opportunity for Canadian exporters to develop and promote those trade relationships in the future. Germany, the Czech Republic and the Slovak Republic are target markets for Canadian products and ingenuity. South America, as was witnessed at the summit in Quebec, is an emerging market ripe for Canadian exporters.

To qualify our support for the bill I will read into the record the Canadian Alliance's policy pertaining to the matter:

We support securing access to international markets through the negotiation of trade agreements. Our trade agenda will focus on diversifying both the products we sell abroad and the markets into which we sell those products. We will vigorously pursue reduction of international trade barriers, tariffs and subsidies. We will work with international organizations that have relevant expertise to ensure Canadians' concerns about labour practices, environmental protection and human rights are reflected.

In light of the positive attributes of the bill, the Liberal government has not done enough to promote and protect the trade relationship we have with the United States under NAFTA.

As members may have seen, today the Coalition for a Secure and Trade Efficient Border released a report containing recommendations which echoed the demands the Canadian Alliance has been speaking about, actions that must be taken by the government to protect our citizens and provide continued unfettered access to U.S. markets.

The Parliamentary Secretary to the Minister of Finance talked about how the opposition parties continue to bring up shortfalls with the government and that it is not the proper thing to do. I must remind the hon. member that, as the opposition, we have a responsibility in Canada to try to keep this arrogant government to account. That is one of our jobs. If the parliamentary secretary does not agree with that, then he should review his belief in democracy. This is specifically what we are supposed to do.

I would remind the hon. member that because of time allocation, we did not have enough time to debate Bill C-36. Many members would have liked to have spoken on this most profound bill that will affect all our civil liberties.

I will cite a November 17 edition of The Economist which I basically cited during my speech at that point in time, especially with regard to what the parliamentary secretary said.

In light of people who criticize certain policies of the government, The Economist said:

Those who criticize such measures should be given careful hearing, even if their views must be sometimes overridden.

It went on to say that one of the chief aims of democracy in liberal societies and those in office is to preserve democracy and promote liberty.

We in the opposition cite certain things that we see as profound problems with the way the government operates, and that we have done. The parliamentary secretary referred to our concerns with immigration. We have also expressed concerns on the way our border security is handled. We have expressed a number of concerns in these areas not because we want to put down the excellent work that is being done by immigration officials or customs agents. We have to take a moment to congratulate them for their work, with the limited resources available, and for the type of work they have done around the clock ever since the tragic events of September 11, which has been phenomenal.

I have taken the time to go down to some of those border crossings and talk to those agents. They have some serious concerns that the government has neglected to address and which the report on border security, which came out today, highlights. I hope the government will take this into account.

In light of Bill S-31, which promotes the trade relationships in Europe and other places in South America, it is so important that our security of the nation and our security at our borders is viewed as being taken seriously. If that means we have to review from time to time the way our immigration system works, especially as it pertains to refugees, the screening process and a number of other issues pertaining to our refugee settlement program, then it is responsible for the opposition to cite some of those concerns. The same thing goes for customs.

I have said time and time again, and I think many members know, that my family was displaced when I was a baby. We came to Canada as refugees in the early 1970s. We were very grateful for the process that we went through to come here. Canada opened up its arms and allowed my family to make a new life here. We do not want to jeopardize this. We want to have a system that can settle genuine refugees as effectively as possible.

We have cited some of the problems with our current plan. We let people into Canada who often do not come with documentation and we let them roam free until an opportunity comes up for them to have a refugee hearing. That is unacceptable, especially if they potentially pose a security threat. I do not think anyone would disagree that we want to help people coming here. In some cases it is true that people come to Canada without the proper documentation. They may have fled their countries under very turbulent circumstances. We have to be sensitive to that.

Our immigration critic, our solicitor general critic and a number of other critics have talked about the importance of being able to screen effectively those refugees who are making these claims from coming to the country, even if it means detaining them temporarily so we can do the proper security checks to make sure that Canadians are protected.

It is the job of the government to protect Canadians. We have seen a number of failed cases where potential refugee claimants have come to the country without the proper documentation and then have been allowed to roam free. This is a big concern for Canadians. Unfortunately, because of the lack of responsibility on this refugee settlement issue, the minds of Canadians have been changing on the whole view of immigration.

I recently saw a few reports and a few polls which were taken. Canadians are starting to become skeptical of allowing more immigrants into the country in light of what has happened since September 11.

This is a road that I hope Canadians never go down. If anything we should be increasing and looking at ways of improving our immigration system, its efficiency, the way it screens refugees and the way it lets people into the country. Hopefully we can improve and we can increase the number of refugees that come to Canada.

The parliamentary secretary surprised me when he spoke about the irresponsibility of the opposition citing weaknesses in government policy, but this is our role. We want to do it constructively so that we build a stronger and better country to protect Canadians and to make our systems, which many Canadians cherish, work more effectively.

In light of Bill S-31 as it pertains specifically to the borders, there still are some huge concerns when it comes to customs. We have raised them on a number of occasions. Also, as cited in the report released today, there are many concerns among the coalition of business groups and others, especially those involved in transportation, and a number of other industry related groups which can be affected very negatively if border security issues are not taken seriously.

We learned also in question period today, and in some of the other documented media reports, that even though the Americans are looking to working with us on border security issues, they are concerned and they have taken the precaution of setting up more military related personnel at the border.

This should raise some red flags for the government. In light of the great job that our customs agents and immigration officials are doing at the border, it is imperative that if we are to continue to modify tax agreements as this bill is proposing, we do what is required on the security front to allow for trade, especially with the United States, to be expedited effectively. To do that we need to ensure that we put the right resources at the border.

We are anticipating the budget which will come out next week. It is a budget that is long overdue. It has been almost two years since the finance minister produced one. This is unprecedented in the history of any democratic regime. Almost every type of organization that is accountable to a certain group of people, whether it is industry or other levels of government, has to take the time to report its financial condition to the people to whom it is accountable. The government has failed to do that for two years.

Therefore we are looking forward to the introduction of the budget by the government next week. We hope that the areas of customs and security at the border will be taken seriously. We have heard different reports leaked as to how much money will be put into those areas. Alongside any investment to increase the customs agent personnel at the border, it is also important to have the infrastructure to allow for the proper flow of goods and services across the border, as the report mentioned. That is another concern that has been cited.

As much as we may do at the border to allow for the proper security measures, we still have some outdated areas of transportation, especially when it comes to infrastructure, that do not allow for the increased amount of trade we share with the United States. This is of great concern to a number of industry groups that want to see efficiency at the border and that want to work with the government and stakeholders on the security issues. However infrastructure has to be a big part of that.

In conclusion, as important as the bill is in trying to facilitate agreements with other countries with which we are currently trading and to facilitate the growth of trade and commerce with those countries, we have to take a step back.

As I said, I was very disturbed to hear the parliamentary secretary say that it was irresponsible for the opposition to talk about potential problems in our system. It is so important that these things be dealt with hand in hand. If we are not taking seriously the security concerns and the efficiency concerns of our current policy as it applies to immigration, customs and in a number of other areas hand in hand with refining tax agreements, no one will be better off, especially in light of the tragic events of September 11.

[Suzanne Tremblay, Bloc, Rimouski-Neigette-Et-La Mitis, QC]

Mr. Speaker, I am really very pleased to be able to take part in the debate on third reading of this bill from the Senate, Bill S-31, an act to implement agreements, conventions and protocols concluded between Canada and Slovenia, Ecuador, Venezuela, Peru, Senegal, the Czech Republic, the Slovak Republic and Germany. Its purpose is the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

I would also like to point out that I am a last minute replacement for my colleague, the hon. member for Drummond, who is currently attending the Standing Committee on Health, where they are examining the report on assisted human reproduction within the framework of an analysis of the government's draft bill.

The bill we are debating at this time deals with the implementation of tax treaties, conventions and agreements with countries where there is a taxation system in place that is similar to that of Quebec and of Canada.

The Bloc will be in favour of this bill. I will, however, if I may, share our concerns about taxation conventions with tax havens, Barbados in particular. We are not only concerned about the Canada-Barbados agreement, we strongly object to it.

Last October, the seven most industrialized countries, Germany, Canada, the U.S., France, Italy, Japan and the United Kingdom, decided to wage battle against the networks that were financing terrorist organizations. As a result, the campaign against money laundering has become the leading edge of the efforts by member states of the Organization for Economic Co-operation and Development, the OECD.

In the wake of the tragic events of September 11, U.S. President George W. Bush changed his tune. Initially hostile to international co-operation against tax havens, he now is singing the praises of co-operation on all fronts.

Canada must have the courage of its convictions. It must speak out against its own tax convention with Barbados. It must strengthen the international component of Revenue Canada in order to discourage tax evasion through the use of tax shelters. It must carry out a blanket reform of Canada's tax system in order to eliminate all tax loopholes that enable companies to get out of paying their fair share of taxes while the average taxpayer bears the brunt. Finally, it must deal forcefully with both tax havens and money laundering.

Canada must fight against illicit money, money earned under the table, dirty money. To this end, it must know the clients of the banks in order to know who is dubious and who is depositing potentially questionable sums. Here, unfortunately, it runs into the problem of invading bank secrecy, the main obstacle in the fight against the darkened pathways of illicit money. The European Union is preparing to establish greater flexibility around bank secrecy, an impenetrable secret that ensures the survival of tax havens. Would Canada be prepared to take the same route?

The globalization of trade and, consequently, competition among countries have led governments to make their tax systems more attractive to investors. The lowering of global tax rates aside, a competitive environment can promote more effective public spending programs. However, some practices in the area of taxes and related fields impede competition and can deplete any gains generated by tax competition. This is the case of tax havens.

Last February, the auditor general declared that the international activities of Canadian taxpayers, in particular the use of tax havens, constituted one of the most serious threats to Canada's tax base.

This statement contrasts with the fact that Canada is a signatory to a tax convention with Barbados, quite the paradise to begin with, and a tax haven too.

It is strange that this convention encourages Canadians to use tax havens. In 1999, Canadian investors understood the government's message, putting Barbados on their list to such an extent that it became the third most popular site of Canadian investment abroad after the United States and Great Britain.

In the same year, direct Canadian investments abroad amounted to $257 billion, with 27.9% of it invested, if we can use the term, in Barbados, the Bahamas and Bermuda. This figure represents over 10% of all of Canada's investments abroad in 1999.

The OECD is critical of tax havens. It recommends that its members terminate all conventions with tax havens. What is Canada's reaction? It seems reluctant to follow the OECD's recommendations.

The financial action task force on money laundering started publishing a black list, last year, of countries deemed uncooperative in the fight against illicit money, while calling upon them to conform to international legislation or else face sanctions.

This list contains 19 countries or territories, including the Bahamas and Bermuda, two of Canadian investors' favourite countries.

In June 2000, the OECD published a list of 35 jurisdictions that meet the criteria set out for tax havens. Barbados is included in this list. Is Barbados a financial branch of Canada? After signing the 1980 tax treaty, Canada suggested that there would be amendments made to the existing treaty, but nothing happened.

Members can imagine how astonished my colleague, the member for Drummond, was when she saw on the website for the Department of Foreign Affairs and International Trade that it was possible to get a brochure entitled “Barbados: A Guide for Canadian Exporters”. According to the brochure, the offshore sector continues to expand and play an increasing role in the economy as a source of currency and employment.

This same Department of Foreign Affairs and International Trade did not hesitate to promote tax havens in 1999. In fact, in CanadExport it published its calendar of events, which included a “Tax Havens Conference”. This conference discussed tax havens and Canadian tax laws and information on how to use them properly.

The OECD is asking member countries to denounce tax treaties signed with tax havens. This request mirrors the one formulated by my colleague, the member for Saint-Hyacinthe—Bagot, in 1994. Neither the Bloc Quebecois nor the OECD have been able to influence the Minister of Finance of Canada yet.

The use of tax havens has been criticized by the Auditor General of Canada on numerous occasions. In 1998, he criticized the fact that Canada was not allocating enough resources to fight tax avoidance.

He alluded, among other things, to the increasing use of tax havens and to the growing number of bilateral income tax conventions. The auditor general went even further by giving this serious warning to the government, and I quote:

In our view, failure to take urgent action on these matters will severely limit Revenue Canada's ability to manage the risks to Canada's tax base that international transactions represent.

Canada, and particularly the Liberal government in office, are speaking from both sides of the mouth. In this issue, as in many others, the Canadian government does not hesitate to be heard on the international scene by supporting, for example, the OECD report asking that the treaties signed with tax havens be denounced. In reality the Canadian government continues to promote and encourage the use of tax havens such as Barbados.

How can we trust the Canadian Minister of Finance, particularly since he owns many companies that have their head office in Barbados? His companies benefit from tax havens that provide benefits such as: no tax on capital gains, no deductions at the source and no monitoring or control over exchanges.

Such a tax system is regressive and totally contrary to Quebec and Canadian values.

The whole picture makes one wonder, to say the least. As an individual and investor, the Minister of Finance benefits from tax havens. However, as Minister of Finance he knows that such practices are harmful to the tax base in Canada and Quebec. While this may not be a conflict of interest, it can at least be said that the minister has conflicting interests when he must take action and discuss abuse of the financial system.

Finally, journalist Stéphanie Grammond from La Presse reported in September that thousands of Quebecers had recently been approached by seemingly fraudulent organizations to invest in tax havens.

These organizations ask people to invest in companies or corporations whose names are strangely similar to those of well known and well established businesses, and they urge them to invest their money in far away countries.

Shares are exchanged through a bogus stock market set up on the Internet. As new investors join in, the market fluctuates until it crashes.

What seems certain for now is that some networks are based in Quebec, while others are apparently based in foreign countries. The North American Securities Administrators Association, the oldest investor protection organization, issued a warning to investors to be especially wary of anyone encouraging them to shelter their money in tax havens.

I will conclude by reiterating the demands of the Bloc Quebecois, which have not changed since the member for Saint-Hyacinthe—Bagot began making them in 1994.

We are demanding that Canada do as the OECD requests and denounce its tax convention with Barbados immediately.

We are demanding that Revenue Canada beef up its international unit in order to discourage tax avoidance through tax havens.

Since 1996, we have been calling for a comprehensive reform of Canadian taxation and we are returning to the charge today. This reform should eliminate all the tax loopholes which allow certain companies to avoid paying their fair share of taxes, to the detriment of the average taxpayer.

Finally, in the free trade area of the Americas negotiations, we are seeking the addition of a clause prohibiting harmful tax practices, as defined by the OECD.

[Lorne Nystrom, NDP, Regina—Qu'Appelle, SK]

Mr. Speaker, I would like to say a few words on this bill. We are now at the third reading stage.

It is an important bill in terms of tax treaties that are being signed and agreed to, and protocols between our country and a number of other countries around the world. It is important in terms of people travelling between these countries, residents of other countries, Canadians who travel abroad and reciprocal arrangements with other countries.

I want to make two other points. I object to the bill originating in the Senate. That may surprise a couple of people in the House, but the Senate is not elected and is not accountable. It costs Canadian taxpayers $60 million a year. Members are elected by the people of the country and in principle bills should originate in the House of Commons. It is indicative of the fact that we need serious parliamentary reform in the House of Commons. The Senate should be abolished. The House of Commons should be changed and the checks and balances that are supposed to be done by the Senate should be brought to the House of Commons through stronger parliamentary committees, fewer confidence votes, less power to the Prime Minister's Office and the executive and more power to committees and backbench members of parliament.

I have been in the House under several prime ministers, including prime ministers Trudeau, Turner, Mulroney and the present member for Calgary Centre. As the years progress, more and more power is concentrated in the executive and the Prime Minister's Office. Members of parliament have less and less power. We see it across the way with Liberal members who often disagree with a government bill but cannot speak out because they want to be a cabinet minister, a parliamentary secretary, the chair of a committee, go on a trip or get some other parliamentary perk.

The time has come to have serious parliamentary reform and to make this place meaningful by abolishing the unelected Senate. It is accountable to no one in the country. Senators are appointed and are there until the age of 75. There is no place for that kind of legislative institution in modern day Canada. We will not regain the confidence of the Canadian people until we do some of those things.

In the last election campaign I was astounded when only 61% of the people voted. In 1997, 67% of the people voted. I recall the 1960s, 1970s and 1980s when 75% to 80% of the people participated in every campaign. There is a real democratic deficit in the country and when a tax bill originates in the Senate it is just another symbol of that democratic deficit. I lodge that as a complaint and I wish that more members across the way would do the same thing.

We have had prime minister after prime minister talk about the abolition of the unelected house. Some did not want to have a unicameral system. Some wanted to have a bicameral system, an elected Senate with reduced powers. Some even wanted to abolish the Senate altogether as was the case with Brian Mulroney when he came to this place. That is in the biography of John Crosbie. People can read about the conversation he had with Brian Mulroney regarding the abolition of the Senate.

Something has to be done. Some polls show that only 5% and in other polls 11% of Canadians support the Senate with its existing powers, yet we sit here week after week and year after year as politicians and do nothing about it. I think the time has come to do something about it.

I will say a couple of words about taxes. Once again the country has started to talk about a fair taxation system based on the ability to pay. In the 1960s the Carter commission recommended that a buck was a buck and regardless of where individuals earned the money they would only be taxed on that dollar. Today we have too many loopholes and benefits for the wealthy and large corporations.

The ordinary person who works for a living at minimum wage or at $10, $20 or $30 an hour ends up paying far too much of the taxation burden. In the last budget Canadians had a $100 billion tax cut over five years. Of course some of the ordinary people benefit from that but the people who benefit the most are the wealthy and large corporations.

When we talk about a tax bill, we should talk about tax fairness and tax justice. I do not object to the tax treaties and protocols that are being debated in the House of Commons, but I do object to the fact that we do not have a fair tax system in Canada.

I object very strenuously to our examining a bill here that was introduced in the Senate of Canada. From the point of view of the democratic process, it is very important for all bills to be introduced here in the House of Commons, the members of which were elected by the people of Canada.

[Val Meredith, Canadian Alliance, South Surrey—White Rock—Langley, BC]

Mr. Speaker, I am pleased to speak to Bill S-31, an act to implement agreements, conventions and protocols concluded between Canada and Slovenia, Ecuador, Venezuela, Peru, Senegal, the Czech Republic, the Slovak Republic and Germany for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, at third reading.

Unlike my colleague I am not just concerned about the fact that a bill on taxation was introduced to the House through the Senate and all the implications that puts in place. The question is, why would a bill of this nature take precedence over other important issues regarding Canada's economy and the government's lack of policy concerning the same? Why does the government refuse to address issues like the Canadian dollar and the fact that it has lost 20% of its value against the U.S. dollar since the Liberal government was elected in 1993?

Since 35% of everything that Canadians consume originates from the United States, a 20% reduction in the Canadian dollar's relative value represents a massive drop in the standard of living of all Canadians. The dollar is not just doing badly compared to the American dollar. It has lost 11% against the Mexican peso, 4% against the British pound, 3% against the Russian ruble and 6% against the Argentine peso.

The Governor of the Bank of Canada said he was very concerned about the Canadian dollar. The chief economist of the Toronto-Dominion Bank said:

At certain levels of the dollar you can argue that a depreciation is a value to the economy, but I think that went out the window a long time ago and any further slide is not helping.

Why is the government not doing something about the value of the Canadian dollar? Canada's productivity growth over the past two decades has been slower than that of every other G-7 country. We have one of the worst growth rates in the OECD. Over the last four years productivity in Canada has grown at a cumulative rate of 4.2% per year whereas in the United States it was 11%.

Why is the government not realizing that high taxes are not a good thing? Canadians had the second highest corporate tax rate in the OECD before the October 2000 mini budget. It is expected that following the budget, which is coming before the House hopefully on Monday, Canada will continue to have the second highest tax rate in the OECD.

Why has the government not dealt with the fiscal policy issues? The coalition supports the finance committee's recommendations to eliminate capital taxes. The coalition supports the committee's recommendations to eliminate the remaining capital gains tax for gifts of listed securities. The coalition recommends that lowering the corporate tax rate to the OECD average would be a positive thing.

It would be remiss of me not to talk about border issues. One-third of our GDP is a direct result of exports to the United States. Some 70% of exports move by truck, the mode of transportation that has been adversely affected by the congestion at the borders. Much of that trade is just in time delivery which is very important to Canadian commerce.

The coalition recommended to the government that it work with the United States to promote public policy that would move commerce across the border in a timely manner and at the same time deal with the security issues that are of such concern to the United States.

The coalition recommends that the Canadian government create a new ministry of public protection and border management to take responsibility for Canada's customs, immigration, law enforcement and intelligence agencies. It recommends the creation of a binational border management agency that would jointly monitor the entry and exit of goods and persons into and out of the United States and that would continue monitoring goods and persons throughout the North American continent.

The border management agency could expedite pre cleared individuals and commodities across the border and not tie up the border. It would allow agencies to concentrate on the 5% or 10% that might be high risk to both Canada and the United States, and potentially Mexico in the future.

An entity that is missing in this and most government legislation is parliamentary oversight. There must be a parliamentary oversight committee formed to oversee not only the border management committee and public protection ministry but also the anti-terrorism legislation the government has put before the House: Bill C-36, Bill C-42, Bill C-44; and who knows what other legislation the government may try to put through the House without a parliamentary oversight.

We would like to know why the regulatory reforms with which the government should be dealing are not being dealt with. There should be a red tape budget that would afford parliament the opportunity to debate the regulatory burden on both Canadian businesses and individuals.

A regulatory budget would hold the government accountable for the full cost of the regulations that it puts into place and would prevent the current patchwork of redundant regulations with which Canadians are faced that stifle Canadian enterprise. The use of sunset clauses can ensure that the raison d'être of a regulation is reviewed periodically to make sure that it is appropriate and relevant.

We would like to know why the government does not deal in a more structured way when it places its estimates before parliament. There should be a system wherebys a certain number of departments are selected by the opposition that would have their estimates scrutinized by parliament without a time limit. We should be forcing our ministers to defend their parliamentary estimates in the House of Commons. That would improve parliamentary scrutiny on government spending and strengthen the role of members of parliament.

We would like to know why the government has made Bill S-31 a priority. There are many other issues of importance to Canadians and the Canadian economy that the government has ignored and refuses to address. The coalition wishes the government would get on with the priorities that Canadians feel are important instead of the things it would like to shove through the House and have Canadians think that it is doing the government's business.

[The Deputy Speaker]

Is the House ready for the question?