Mr. Speaker, I am happy to participate in this debate today.
First of all, I want to wish you, Mr. Speaker, and all the staff in our chamber, a very Happy New Year. The New Democratic Party is back here invigorated and ready to go to work. We are ready to make this minority Parliament work for the benefit of all Canadians.
The first part of this parliamentary session has been off to a rather slow start. Some of the promises of this minority Parliament have not been readily apparent to Canadians, and Canadians expect more. They expect that these Liberals in office will refrain from taking Canadians for granted.
We have great faith in the possibilities of a minority Parliament. We want to make it work for the benefit of Canadians. We are debating an issue here that goes to the very heart of Liberal majority intransigence versus the possibility of action under a minority Parliament.
I want to thank the member for Vancouver Island North for having the inspiration and initiative to bring this issue to Parliament. This is one of those long overdue issues that needs action.
This issue has been before Parliament on numerous occasions and we are debating it again. In 1996 the finance committee recommended resolving this anachronism in terms of an excise tax on jewellery. No action was taken then.
I find it somewhat galling to listen to Liberals standing up in the House today and suggesting that this is a matter for urgent action, suggesting that there are lessons to be learned from these kind of situations, and telling us we have to do the right thing and invest in the Canadian economy to ensure we get more tax revenue, stop an underground economy, and do what is best for our small businesses.
What has kept the Liberals from acting since they took office in 1993? What has prevented them from acting since 1996 when the committee made very clear recommendations? Furthermore, why are we dealing with this today instead of having dealt with it several months ago when the present finance committee made the same recommendations as previous committees and called upon the government to end the excise tax on jewellery? Why do we have to drag the government kicking and screaming into any kind of action?
Back in the fall, the finance committee deliberated on several outstanding issues. One was with respect to the excise tax on jewellery and the other was with respect to remission orders covering the apparel sector and the textile industry. Both reports were delivered at the same time. The difference between the two was that the government finally moved on the textile issue because there was a tremendous outcry of concern by the industry and because parliamentarians forced it to act. It was embarrassed into action. We were at the eleventh hour, the industry was about to go into a serious crisis, and the government decided to act.
Why are we here today debating another recommendation that came out of the finance committee report that was tabled in the House last fall? Why has the government not acted? Why has it not said it has a plan to phase out the excise tax on jewellery? The House can imagine our frustration.
On the other hand, we see there is a change of attitude in this minority Parliament. Perhaps the Liberals are beginning to realize they cannot continue to railroad their agenda. Perhaps they are beginning to realize that they cannot continue to obstruct Parliament and put roadblocks in place to every good idea that comes along. Perhaps this time we have a chance to put into effect a relatively small and inexpensive initiative that will make a world of difference to Canadians.
I want to talk about the impact that this will have on the whole diamond industry in Canada. We have to start talking about our own natural resources. We must ensure that there are benefits there for this country and for all Canadians. How can we justify keeping this excise tax in place at the very time that there is an explosion in terms of findings in the diamond industry?
We have seen incredible growth in this area in the north and in other parts of Canada. How can we justify keeping this excise tax in place which produces the anomaly of Canadians spending more on diamonds produced in Canada than on diamonds purchased outside of this country? That is ridiculous. What kind of incentive is that to the industry and to the future of mining?
Let us not underestimate the significance of diamond mining in this country and the future of mining exploration in the north. A news report in the Yellowknifer at the end of last year stated:
The future of mining exploration in the North looks diamond-bright. Permits were issued for 26 million acres of mineral rights in 2004, and four million acres of new claims were staked. The year “2004 has had the highest level of diamond exploration activity that we've seen in the last three or four years,” said Scott Cairns, district geologist with the NWT Geoscience Office and presenter on NWT mineral exploration at the 32nd Annual Geoscience Forum held last week.
The stats go on and on. We are talking about an area that is rich in terms of wealth that can be invested in Canada, rich in terms of productivity, rich in terms of jobs, and a real benefit for a country that needs to start looking at shifting our economy away from being the hewers of wood and the drawers of water. Here we have a chance to make a change in our tax policy, to grow an industry, to make it relevant, pertinent, and lucrative, and to ensure that it is part of our Canadian indigenous economy and the benefits are spilled over to all Canadians.
So let us get real. Let us not delay a moment longer. Let us do what Canadians want, which is to rid this country of a tax that came into effect in 1918, then considered a luxury tax which helped to finance the World War I effort. Today, because of the failure of the government to keep pace with the times, Canada is the only country with such a tax on jewellery. Russia and Australia, the other two that have such a tax, have eliminated it.
We are not talking about something of luxury. We are not talking about something that benefits just the wealthy in our country. We are talking about the fact that most Canadians spend a little bit on jewellery. The average Canadian household spends about $100 to $200 a year on jewellery items. We are not talking about expensive items either. We are talking about a tax that exists on any piece of jewellery that is more than $3.