Mr. Speaker, I am pleased to rise in the House today to take part in this prebudget debate and share with my fellow colleagues the view from my riding of Oxford.
Canada still holds a standing in the world as of one of its richest nations. Yet as Canadians continue to work harder and produce more, it is the government that continues to get the benefit. In many families both parents must work just to make ends meet. In fact, when it is broken down, one of them works just to pay taxes.
According to the Toronto-Dominion Bank, real take home pay has risen by only 3.6% since 1989 while the real gross domestic product per worker rose by 21.8%. Since the Liberal government came to power in 1993, it has had well over a decade to address the tax issues of the country. While the early years of the government were shrouded with policies of debt reduction and massive cuts to our health care system and Canadian Forces, it has shown little interest in capitalizing on a flourishing economy to bring tax relief to Canadians or for that matter to replace what it took from our health care system and Canadian Forces.
As a Conservative, I am insulted by surplus budgets. I believe that surplus budgets are nothing more than the result of overtaxation. Canadian taxpayers deserve a bigger piece of their paycheques. I want to see governments produce a balanced budget.
I would like to bring before the House an example of the cold-heartedness of the Liberal government that swims in surplus after surplus of cash.
Last fall it was brought to my attention that our veterans who were promised compensation for their participation in chemical warfare testing were suddenly being denied benefits. The first thing that came to mind was the Liberals were going to turn this program into another hepatitis C debacle. Sure enough, with a little investigation, it came to my attention that a cabinet memo instructed defence personnel to hold back payment on estates of veterans who died without a legal will.
At first count, with only 50% of the applications looked at, the government froze payment on 20 families of veterans that it acknowledged took part in chemical warfare testing. What did they offer the families instead? Instead of receiving the $24,000 compensation funding the government had promised, they were offered a certificate to hang on the wall. Another class act by the government, the same government that bragged about a projected $1.9 billion budget surplus that has now turned into a $10 billion budget surplus.
One can only imagine the damage to the federal government's credibility with the provinces, given that time and time again on the health accord and equalization agreement the government always tries to argue that the cupboards are bare. Instead of this Parliament with its minority government being different, we see the same thing continuing to happen.
Last year budget 2004 projected a surplus of $4 billion. In November we were told the surplus was nearly $9 billion. Now it seems it could be even more.
Why does the government like holding back money when so many Canadians are in need? It appears that the current economic situation is strong enough to allow the government to make both greater spending on areas of priority and major tax relief part of its budget for 2005.
Members of the official opposition have been listening to Canadians, responding with calls for tax relief for low and middle income Canadians, an independent process for forecasting the government's financial situation, and that all uses of the employment insurance program's funds be directed to the benefit of workers for whom the program was created to support in the first place.
In response the Prime Minister has made clear his reluctance to reduce the tax burden on Canadians. The government inherited a GST program and a free trade agreement that have turned into a cash cow for it. When I look at the size of our budget surplus, I have to ask myself, were all the cuts we suffered in health care and defence in the early nineties even necessary?
While I am no economist, I think Canadians want to see fiscal management by the government that is a little more sensitive to the basic needs of our country. These basic needs include investment in education, development of businesses, especially small business and the ability of Canadians to save for the future. The government's policy of taxation reduces incentive to invest in all these areas, meaning lost opportunities and lower potential.
For Canadians, this means that individuals and corporations are operating at less than their potential in an economy that is not as robust as it should be. For the government, it means less revenue which because of poor government choices has threatened our ability to provide the quality of social services that Canadians on which pride themselves and depend.
Since the opening of this Parliament last September, the Prime Minister has repeatedly made clear that reducing taxes is not one of his priorities. This is hardly fair to the average Canadian whose take home pay has barely increased in the past 15 years. This situation is also unfair to younger Canadians as it threatens our long term economic growth and our social safety net.
If the Liberal government wishes to represent Canadians by being responsive to their needs, its 2005 budget must include an immediate pay hike for all Canadians through a program of lower taxes. It should also concentrate on the standard of living, not just now but in years to come, by strengthening Canada's competitive position through measured debt repayment, strategic spending and reductions in burdensome regulations.
In its throne speech the government committed to reducing taxes for low and middle income Canadians. If the governing party wishes to depart from its record of broken and empty promises, it should deliver on those verbal contracts with Canadians. It is great to make promises to those who are in need but the government has a moral obligation to follow through on these promises.
The government should also deliver on its promise to increase the guaranteed income supplement; empty words that do nothing to change the situation of those Canadians who are in greatest need.
The needs and concerns of Canadians are not beyond the power of the government to help. Workers have seen little increase in their take home pay. Middle income Canadians face a staggering tax burden. Seniors need help with their drug plans and GIC supplements. EI benefits need to be adjusted to reflect the different regions of Canada and EI stakeholders should be given a say in benefit and premium levels.
On this last point, the Auditor General has concluded for several years running now that the government has failed to respect the intent of the Employment Insurance Act. While the government throws up its hands and says that there is no money, the EI account now has a $46 billion surplus. Why is the government overcharging Canadians? This program is about workers. Given them a say in benefit and premium levels.
Our farmers are desperate in many sectors for assistance. The BSE crisis has had a tremendous effect on our agriculture in Canada to the point where we now see an increase in milk prices because there is no market for the older milking cows. The ripple effect of this crisis has hurt many small businesses that support the farm industry in my riding of Oxford. It is bad enough the government forgets our farmers, but it in turn also turns it back on small business owners as well.
In my riding tobacco growers are struggling as well. Many of them want to get out of the business all together. However, they are having difficulty getting compensation the government promised them before the last election.
It remains to be seen if the gas tax promised to urban communities in Canada will be effective. Mayors across Canada are already skeptical.
Over the past decade government spending has grown at record rates, yet it is my opinion that Canadians have not received the same increase in value from government services.
Budget 2005 should also fulfill a promise made by the Liberals to increase spending for Canada's military to help bring it to a more effective level. More and more increasing demands are being put on our troops as Canada struggles to hang on to its place in the world.
The deployment of the DART during the Tsunami disaster was a great example of how poorly our forces are funded. Italy had a field hospital set up and running within 48 hours while we were still debating where to send the reconnaissance team and locate a charter airlift to get the equipment there. Two weeks later we were finally operational.
We have debated for years in the House the side effects the Liberal government's fiscal policy has had on our Canadian Forces. In 1993 the government cut 26% from the defence budget. That was a crippling move. As a result, today our forces are in dire need of too much equipment at one time. We need to make a priority list and shop from there.
Our forces need ships, airplanes, helicopters, submarines, ground transport and more. Proper equipment for our Canadian Forces should be a priority. Without it, we cannot expect the brave men and women of our forces to carry out the missions on which we send them. This lack of equipment threatens both the lives of individual troops and our place in the global security community.
The Minister of National Defence has delayed several times now the internal review that has been taking place within the department. The last white paper was in 1994. Perhaps we should be considering another since we are 10 years down the road and the world is a very different place.
In closing, let me reiterate, as my colleagues have stated throughout this debate, that in this minority Parliament it is up to the Liberals to decide when and if they want an election.
The Conservative Party remains open to supporting budget 2005 if it contains an immediate pay hike for hard-working Canadians through a program of lower taxes, a longer term standard of living strategy to ensure that social programs are adequately funded during the upcoming demographic crunch and the funding necessary to bring Canada's military to a more effective level. Their fate is in the government's hands.