Mr. Speaker, I am pleased to participate in this prebudget debate. As a member of the finance prebudget consultation committee I travelled across Canada. I listened to many Canadians, groups and institutions. I wish to talk about education, innovation, capital tax reduction, and health care.
We all know that education is extremely important as the foundation of a healthy society. The government has made lifelong learning and skills development a top priority of our social agenda. Literacy is critically important for an individual's success in society. The Movement for Canadian Literacy, citing data from Statistics Canada, told the committee that the needs were very pressing.
Student loans are another area of concern. An increasing number of students are facing tremendous debt loads upon their graduation from universities. This has been driven by increases in both tuition fees and the cost of living. There is a pressing need to re-evaluate existing student loan programs with the intention of providing a greater level of financial support for youth.
Canada is facing a shortage in skilled labour in many trades. Part of our strategy to address the skills shortage is to target immigration policies to attract skilled workers to Canada. However, many of those workers we have targeted are having problems with gaining accreditation to practise their trade in Canada. The prebudget consultations recommended that we work with provincial governments and professional associations to find ways to make it easier for skilled new immigrants to be able to work in their field of expertise.
The committee received testimony from the Getting Landed Project, a group advocating the extension of the Canada student loan program to refugees. They said:
Yet under current Canada student loans legislation only Canadian citizens and permanent residents, what we used to call landed immigrants, qualify for student loans. Recognized refugees, now known as protected persons under the new Immigration and Refugee Protection Act, are currently excluded. This exclusion is bad for recognized refugees and bad for Canada as well.
However, as a national government we play a strong role in providing billions of dollars of funding to these provincial institutions. What Canadians are demanding is greater accountability by provincial governments so that they know that the money the federal government is providing for education is being used for that purpose.
Another important area that the government must focus its attention in order to build the Canadian economy is the innovation agenda. The current innovation strategy of the federal government undertakes a commitment for Canada to: rank among the top five countries worldwide in terms of R and D performance, at least double the federal government's current investments in R and D, rank among world leaders in the share of private sector sales attributable to new innovations, and raise venture capital investments per capita to prevailing U.S. levels.
This is a good start, however we would need to do more to support the climate of innovation. Along this line the finance committee recommended that:
The federal government increase funds for the federal granting councils and, in so doing, ensure that the Social Sciences and Humanities Research Council of Canada receives an appropriate share of the allocation. Moreover, the federal granting councils and the Canada Foundation for Innovation should consider the concerns of smaller universities and colleges when disbursing funds, and should ensure that they do not face discrimination.
The federal government, in the next budget, provide a permanent program for financing the indirect costs of federally funded research.
A permanent program financing 40% of the indirect costs of federally funded research be implemented in the next budget.
The federal government simplify the process by which firms access the scientific research and experimental development investment tax credit.
The federal government create a commercialization office within Industry Canada. The mandate of this office would be efforts leading to the commercialization of research undertaken in Canada.
The federal government ensure that the rights embodied in patent and copyright protections are vigorously defended.
With those initiatives and an emphasis of lifelong learning and education, Canada would be able to confront the economic challenges of the 21st century. The innovation agenda remains a key link to Canada's future prosperity and the government should implement the committee's recommendations.
We heard from many groups who raised concerns that we must lower capital taxes or even get rid of capital taxes. The committee received testimony from at least 20 groups and individuals. Some of the witnesses said:
As many witnesses noted, the capital tax is largely profit insensitive. In the event of an economic slowdown, some companies could be required to borrow cash to meet their tax obligations, even if they are losing money.
The Saskatchewan Chamber of Commerce recommended that the committee eliminate the capital tax, since it was introduced as a deficit elimination measure, and the deficit is now gone. Capital taxes are also not linked to ability to pay; their elimination would lead to increased investment in capital intensive operations, enhance productivity and lead to increased economic activities.
I would urge the Minister of Finance to reduce or eliminate the capital tax in Canada. I believe, along with many others in this chamber, that it is harmful to the investment and economic development of Canada.
I wish to touch on health care. In light of the strong support of the universal medicare system, the finance committee recommended the following:
The federal government work with provincial and territorial governments, and other stakeholders, to ensure that the Canadian healthcare system of the future respects the following principles:
(a) public funding at an appropriate level;
(b) an approach to service delivery that recognizes the role of prevention, pharmacare and homecare, and that is sensitive to the needs of Canadians experiencing a wide range of illnesses;
(c) mechanisms to ensure accountability and transparency at every level of spending; and
(d) continued support and increased funding for the Canadian Institutes of Health--