Mr. Speaker, this private member's bill proposes a change to the Income Tax Act that would allow individuals to claim a tax credit for fees paid for their participation, or the participation of a dependant, in amateur sport. We need to review this proposal in light of what it is trying to achieve and how it is trying to achieve it.
First, it would appear that the hon. member's proposal has a clear intent: to encourage Canadians to participate in amateur sport. This is a goal that the government shares with the member for Sackville—Musquodoboit Valley—Eastern Shore. We too recognize the importance of amateur sport in this country and the importance of participation in sport and physical fitness activities.
This year, thanks to the 2004 budget injection of $30 million into the Canadian sport system, we will contribute some $100 million to Sport Canada. Let me tell the members of the House about some of the great things Sport Canada does. It provides funds to amateur sport organizations to increase sport participation, to support the development of young athletes and to improve access to sport for under-represented groups, including people with disabilities and the aboriginal peoples. It provides financial support to Canada's elite athletes to help them with their training and competition needs. It backs a wide range of sporting events held in Canada that are both national and international in scope.
While we may share the member's objectives, and we do, I must say that we do not agree with the approach. The member's proposal suggests changing the tax system. I would contend that using the tax system for this is neither cost effective nor fair. Let us take a closer look at how ineffective the hon. member's proposal would be.
The government is committed to encouraging Canadians to include physical activities in their daily lives and to helping them reduce barriers that prevent them from being active. There are many such barriers. Statistics Canada reports several reasons why Canadians do not participate in amateur sport or fitness activities: lack of time, lack of interest and health, and injury or age concerns.
In fact, we have to look way down the list of the barriers to participation before we get to cost. Very few Canadians consider cost a significant barrier to their participation: only about one in fifty inactive Canadians. In fact, this is not surprising given that there are many activities that are part of a healthy lifestyle and cost very little. Swimming, walking and cycling are good examples.
What does this mean? Clearly it means that the hon. member's proposal would do very little to encourage inactive Canadians to become active in amateur sport or to increase their level of physical activity. In other words, this proposal would be ineffective.
Even though this proposal would be ineffective, it would come at a very high cost. According to Statistics Canada the average Canadian household spends approximately $275 on recreational facilities and membership fees each year. Providing a 16% tax credit on these expenditures would cost the federal government almost half a billion dollars in tax revenue. Again, the money would be spent without having a significant impact on the level of physical activities of Canadians.
In fact, almost all of this tax money would end up subsidizing the 8.3 million Canadian adults already participating in amateur sport. Therefore, at a great cost, the hon. member's proposal would produce very little benefit in terms of increasing participation in amateur sport and fitness activities.