Debates of Sept. 28th, 2001

International Aid

[Marlene Jennings, Liberal, Parliamentary Secretary to the Minister for International Cooperation]

Mr. Speaker, obviously I am not the Minister of Finance, but I believe I can answer the question. Canada has been helping Afghanistan for over 10 years. We have given over $120 million to Afghanistan.

We do not recognize the Taliban, that is clear. Our money is funnelled through the UN agencies and the NGOs. We are working closely with both to ensure that we are there to help the refugees who are there now and those who may become refugees in the future. We will be there.

Immigration

[Deborah Grey, Canadian Alliance, Edmonton North, AB]

Mr. Speaker, we should just take a couple of seconds to find out actually where some of that government money is funnelled through. We learned from the new unpublished public accounts that the government gave the Tamil Eelam Society of Canada $278,229 for “immigrant settlement services”.

Could the government confirm that all of this money went for those purposes for which it was intended and not one dollar went to any terrorist activities?

[Elinor Caplan, Liberal, Minister of Citizenship and Immigration]

Mr. Speaker, I can assure the member that funds for immigrant settlement services are audited by my department to ensure that they are used for the intended purposes. They do provide important services for new immigrants to Canada.

National Security

[Peter MacKay, Progressive Conservative, Pictou—Antigonish—Guysborough, NS]

Mr. Speaker, the Prime Minister refuses to admit that there is a problem with porous border security. Yet United States Attorney General John Ashcroft has called our border a terrorist transit point and has already announced that the United States will toughen security along the Canadian border. Yet Liberal cuts to CSIS, the RCMP and customs have resulted in vulnerabilities at home and abroad.

When meeting with President Bush did the Prime Minister put forward a particular Canadian point of view on the idea of a North American security perimeter? Faced with the new realities of security can Canadians expect that resources will be allocated to our security forces at home?

[Martin Cauchon, Liberal, Minister of National Revenue]

Mr. Speaker, one should be proud of the work done by Canada Customs since September 11, but of course one should be proud as well of Canada Customs as a whole in the sense that if there is one customs system in the world leading in regard to the brand new challenges ahead for customs systems, it is Canada Customs.

We have started to reform the whole system. As I have said many times, I met with the U.S. ambassador this week and it seems that there is really a meeting of the minds.

Talking about additional money to proceed with our Canadian reforms, we have been allocated an additional $100 million in order to put these reforms in place to keep our society safe.

The Economy

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

Mr. Speaker, the Bank of Nova Scotia just minutes ago issued a forecast projecting a deficit of $5 billion for the fiscal year 2002.

In addition to the massive layoffs and the fact that the Canadian dollar is hovering at an all time low as we speak, what is the finance minister doing to take into account this dramatically new fiscal situation in this country? Will he proceed with plans to let his cabinet colleagues like the Minister of Industry spend billions of dollars when we are now staring a deficit in the face?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, I can assure the hon. member that the government will maintain fiscal responsibility. I have said that from the beginning and the government has demonstrated that by its record.

I can also assure the hon. member that the spending the government engages in will be designed to increase the growth and productivity and the quality of life of Canadians.

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

Mr. Speaker, no budget, no recognition of reality, no changing of priorities to recognize the imperatives of national security, it is business as usual even when one of our major banks is projecting a $5 billion actual deficit within two fiscal years.

What action is the finance minister taking to account for the new economic realities in this country? When will he bring forward a budget? Will he avoid a deficit now, come hell or high water?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, perhaps the hon. member in another intervention would explain to us how anybody could add up a set of numbers involving massive tax cuts, which the hon. member has suggested, massive spending, which they have been suggesting over the course of the last two weeks, and avoid a deficit.

Why does the hon. member not accept the fact that his party is now recommending huge deficits? They are the logical consequence of his party's policy unless that party cannot count, which is more than likely the case.

[Yvan Loubier, Bloc, Saint-Hyacinthe—Bagot, QC]

Mr. Speaker, yesterday the Minister of Finance kept on telling us that he had done everything possible in the past to get us through the present crisis. However, it is his inertia at the present time that is likely to jeopardize the sacrifices everyone has made to put public finances on a healthier footing. The drop in value of the Canadian dollar is indicative of a loss of investor confidence, which is in addition to the loss of consumer confidence.

Does the minister realize that his inaction is making him the author of an even more serious economic downturn than we are experiencing at the present time?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, the hon. member of the opposition knows very well that the surplus we have today is certainly decreasing because of the events of September 11 and those of the third and fourth quarter of this year.

I have a question for him. Is he recommending to us, or to Canadians, that we should spend ourselves back into a deficit situation?

[Yvan Loubier, Bloc, Saint-Hyacinthe—Bagot, QC]

We are the ones asking the questions, Mr. Speaker. That is not what we are asking. We are asking him to tell the truth on the extent of the surplus at this time. We are also asking him to take off his rose coloured glasses.

All of the economic indicators point to the severity of the downturn. Consumers are putting off purchases. Investors are shunning Canadian stocks and the Canadian dollar is in a free fall.

Is the minister capable of analyzing the present and looking to the future, instead of dwelling on the past, and of bringing down in the near future a true plan for bolstering the economy and helping the workers who are victims of the downturn?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, I again ask the hon. member, who has even refused to give an indication of what he thinks ought to be done, whether what he is saying is that we should abandon fiscal balance? Is he saying that we should give up on that, and is he recommending that we go back to a deficit situation? Is that what the Bloc Quebecois position is?

National Defence

[Brian Pallister, Canadian Alliance, Portage—Lisgar, MB]

Mr. Speaker, there is something seriously wrong with the government's priorities. Yesterday the auditor general slammed the way the government gave $7 billion to unaccountable foundations, calling it “very troubling”. The Conference of Defence Associations yesterday said Canada's military is “simply not operationally ready”.

Does the government understand that the price for its misplaced priorities is Canada's failure to uphold its international obligations?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, in regard to misplaced priorities, do I understand what the hon. member is saying? The Canadian Foundation for Innovation has funded the synchrotron project in Saskatchewan and is funding basic research right across the country, which is an essential element of the new economy and of any country's growth programs.

Is he saying that basic research and applied research in the country is a misplaced priority? It is wonderful to know now the real agenda of the party opposite.

[Brian Pallister, Canadian Alliance, Portage—Lisgar, MB]

Mr. Speaker, I think the finance minister should speak to the auditor general and understand that the vast majority of the $7 billion is sitting in cash deposits. It is doing nothing for the good of the country.

The reality is that while the Canadian forces are being starved, an amount nearly equal to their entire annual budget is handed out and the government does not know what is being done with the money. Meanwhile Canada is becoming known around the world as a condolence card ally, a bed and breakfast for terrorists, and it is the weak link of NATO.

Could the minister explain why handouts are more important to Canadians than keeping our word to our allies?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, let us understand what the member is saying. He is saying the synchrotron project in Saskatchewan is a handout. He is saying the money that is going to hospitals in his province for research and development is a handout. He is saying that the money going to fund researchers across the country, that brings people back to Canada to develop the new economy and to educate young Canadians is a handout.

That shows where the priorities of the hon. member and those of his party are. Let me say those are not the priorities of Canadians. Canadians want to build the country and the government will build it with them.

Air Canada

[Stéphane Bergeron, Bloc, Verchères—Les Patriotes, QC]

Mr. Speaker, according to newspaper reports, Air Canada's request to the federal government for financial assistance predates the September 11 attacks. Indeed, the company purportedly approached the federal government for assistance to the tune of $1 billion dollars.

Will the Minister of Transport tell us if Air Canada's request for financial assistance was made prior to September 11, and will he provide us with details of the request?

[David Collenette, Liberal, Minister of Transport]

Mr. Speaker, clearly Air Canada was experiencing difficulties prior to September 11. This was widely reported in the press. There were talks held between myself, my officials and Air Canada to discuss the problems. Air Canada made a number of proposals for improving the situation.

[Stéphane Bergeron, Bloc, Verchères—Les Patriotes, QC]

Mr. Speaker, will the minister give us some assurance that the financial assistance he is planning for Air Canada will be directly related to the events of September 11, and that he is not using these events as a pretext to get Air Canada out of a financial mess that predates the New York attacks?

[David Collenette, Liberal, Minister of Transport]

Mr. Speaker, that is the purpose of our analysis at this time.

Terrorism

[Gurmant Grewal, Canadian Alliance, Surrey Central, BC]

Mr. Speaker, the Minister of Finance and the Minister of Justice have said that Canada has laws allowing us to seize terrorist assets. What they did not tell us was that the government agency responsible for identifying terrorist assets, Fintrac, is not even up and running yet.

How are we supposed to identify, freeze and seize the assets of Osama bin Laden if the agency responsible for identifying these assets is not even operational?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, the organizations have been already identified. They were identified in the annex to the letter that OSFI sent to the banks. The banks have issued a public statement saying they are co-operating and acting on the request. It has been taken care of.

[Gurmant Grewal, Canadian Alliance, Surrey Central, BC]

Mr. Speaker, yesterday former RCMP commissioner Norman Inkster said that he thought that the events of September 11 would mean the highest priority given to freezing the terrorists' assets in Canada.

This weak Liberal government has repeatedly refused to make firm commitments regarding when it is going to get serious on fighting terrorism. Why is it ignoring recommendations from the opposition, from the private sector and from its own departments? Is there something it is not telling us?

[Paul Martin, Liberal, Minister of Finance]

Mr. Speaker, if the hon. member would simply read the communiqué from the Canadian Bankers Association he would see that in fact the government has taken action, that Canadian banks have taken action and that they took it forthwith. I simply would read it:

Banks in Canada are complying with Canadian law enforcement agencies (the RCMP) under the laws of Canada and will continue to co-operate in the efforts against terrorism by reviewing records and providing relevant information to appropriate Canadian law enforcement agencies.

The press release goes on to say that our legislation has “the effect of giving the banks in Canada” the right to freeze the account activity of Osama bin Laden and--