House of Commons Hansard #63 of the 38th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was tax.

Topics

PetitionsRoutine Proceedings

3:20 p.m.

Bloc

Paul Crête Bloc Rivière-Du-Loup—Montmagny, QC

Mr. Speaker, I have the honour to present a petition on behalf of 200 persons in my riding who state that partial or total participation by Canada in the missile defence program would be contrary to our interests and values.

These petitioners call upon Parliament to take the necessary steps to oppose Canadian participation in the American missile defence program, thereby reflecting the wishes of the vast majority of Quebeckers.

PetitionsRoutine Proceedings

3:20 p.m.

Conservative

Mark Warawa Conservative Langley, BC

Mr. Speaker, I rise today to represent the wonderful citizens of Langley, British Columbia. I have two groups of petitions to present today, the first being three petitions on the tradition of marriage.

The petitioners state that the tradition of marriage between a man and a woman is the God ordained building block of the family and the bedrock of a civil society. They therefore urge the House of Commons to protect the traditional definition of marriage as being between one man and one woman.

PetitionsRoutine Proceedings

3:20 p.m.

Conservative

Mark Warawa Conservative Langley, BC

Mr. Speaker, the second set of petitions I wish to present to the House are with respect to autism.

The petitioners request that autism treatment be considered an essential treatment under the Canada Health Act and that each province have a university with an appointed chair to deal with autism training.

PetitionsRoutine Proceedings

3:20 p.m.

Liberal

Paul Zed Liberal Saint John, NB

Mr. Speaker, I have the pleasure to present to the House a petition signed by over 3,000 people of Saint John, New Brunswick requesting the government to stop the closure of Postal Station “B” in Saint John.

The residents and business communities of West Saint John have been serviced by Canada Post for over 40 years by this postal station. Last year the postal station exceeded $350,000 in revenue, over a 14% increase in the previous year.

The petitioners call upon Canada Post and the Government of Canada to immediately cease all actions directed at the closure of Postal Station “B” and invest the profits in their community post office.

The petitioners were somewhat enlightened to hear the minister talk positively about post office closures today, but it would be nice to hear that post office closures in Canada were preserved as a moratorium.

PetitionsRoutine Proceedings

3:25 p.m.

Conservative

Ken Epp Conservative Edmonton—Sherwood Park, AB

Mr. Speaker, I have the honour today to present another 604 names on petitions dealing with the definition of marriage. Most of the petitioners are from my riding but there are some from the previous riding of Elk Island. Many of them still think I am their MP even though I am not any longer due to the boundary changes.

Due to the vote in 1999 and because they take exception to an unelected judiciary making important social changes, the petitioners urge Parliament to take every measure necessary to preserve the definition of marriage as being between one man and one woman to the exclusion of all others.

PetitionsRoutine Proceedings

3:25 p.m.

Conservative

Maurice Vellacott Conservative Saskatoon—Wanuskewin, SK

Mr. Speaker, I have the pleasure to table a petition today from people in Prince Edward Island who call upon the government to return to its previous policy of allowing holy books to be made available to new citizens at citizenship ceremonies around the country.

The petitioners draw attention to the fact that a citizenship judge terminated this policy alleging that the policy discriminated against non-religious immigrants. Up until last year holy books were simply displayed on tables at the back of the hall, free for new citizens to take. The new citizens were not handed the books. They were not forced on them. The judge produced no evidence to justify his inappropriate decision to ban the availability of holy books.

The petitioners ask for the citizenship commission to return to the previous policy which has served our multicultural nation so very well.

PetitionsRoutine Proceedings

3:25 p.m.

Conservative

Maurice Vellacott Conservative Saskatoon—Wanuskewin, SK

Mr. Speaker, the second petition I wish to present is from 124 individuals who call on Parliament to use all possible legislative and administrative measures, including invoking the notwithstanding clause if necessary, to preserve the correct definition of marriage as between one man and one woman.

PetitionsRoutine Proceedings

3:25 p.m.

Conservative

Darrel Stinson Conservative North Okanagan—Shuswap, BC

Mr. Speaker, I am pleased to present two petitions today.

The first petition is signed by over 170 residents of Vernon in my riding of Okanagan—Shuswap. They are concerned about serious violent crimes by repeat offenders living at the Vernon halfway house.

The petitioners call upon Parliament to require that the Correctional Service of Canada take stronger steps to protect law abiding citizens by ending statutory release, informing the public immediately when a violent offender does not report back on time from day parole or other release into the community, and immediately investigate why the Vernon halfway house has the worst record in Canada for its inmates committing violent crimes.

PetitionsRoutine Proceedings

3:25 p.m.

Conservative

Darrel Stinson Conservative North Okanagan—Shuswap, BC

Mr. Speaker, the second petition, also from constituents of Okanagan—Shuswap, with a total of 120 signatures, asks that the Canada Health Act be amended to include intensive behavioural intervention therapy treatment based on the principles of applied behavioural analysis as an essential treatment for autism. The petitioners ask that university academic chairs be appointed at each university to teach autism treatment. They also request that all provinces be required to help people with autism by providing funding for this essential treatment.

PetitionsRoutine Proceedings

3:25 p.m.

Conservative

Andrew Scheer Conservative Regina—Qu'Appelle, SK

Mr. Speaker, I would like to present petitions from hundreds of constituents in my riding of Regina—Qu'Appelle, and also several people from as far away as Sidney, Manitoba. The petitioners want their voices added to the huge outcry of concerned Canadians against the government's attempt to change the traditional definition of marriage.

The petitioners call upon the House to protect the traditional definition of marriage as one man and one woman to the exclusion of all others as recognized by centuries of tradition.

PetitionsRoutine Proceedings

3:25 p.m.

Conservative

Jay Hill Conservative Prince George—Peace River, BC

Mr. Speaker, it is indeed a pleasure for me to rise, as I have been doing almost daily, to present petitions on behalf of my constituents in Prince George—Peace River, specifically this time from residents of the city of Prince George itself and the smaller community of Tumbler Ridge, on the issue of marriage.

The petitioners wish to draw to the attention of the House of Commons that the majority of Canadians believe that fundamental matters of social policy should be decided by elected members of Parliament and not the unelected judiciary. They also believe the majority of Canadians support the current legal definition of marriage.

Therefore, the petitioners call upon Parliament to use all possible legislative means, including invoking section 33 of the charter, the notwithstanding clause, if necessary, to preserve and protect the current definition of marriage as between one man and one woman.

Questions on the Order PaperRoutine Proceedings

3:30 p.m.

Beauséjour New Brunswick

Liberal

Dominic LeBlanc LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, I ask that all questions be allowed to stand.

Questions on the Order PaperRoutine Proceedings

3:30 p.m.

The Deputy Speaker

Is that agreed?

Questions on the Order PaperRoutine Proceedings

3:30 p.m.

Some hon. members

Agreed.

Motions for PapersRoutine Proceedings

3:30 p.m.

Beauséjour New Brunswick

Liberal

Dominic LeBlanc LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, I ask that all notices of motions for the production of papers be allowed to stand.

Motions for PapersRoutine Proceedings

3:30 p.m.

The Deputy Speaker

Is that agreed?

Motions for PapersRoutine Proceedings

3:30 p.m.

Some hon. members

Agreed.

The House proceeded to the consideration of Bill C-33, a second act to implement certain provisions of the budget tabled in Parliament on March 23, 2004, as reported (without amendment) from the committee.

Budget Implementation Act, 2004, No. 2Government Orders

3:30 p.m.

Western Arctic Northwest Territories

Liberal

Ethel Blondin-Andrew Liberalfor the Minister of Finance

moved that the bill be concurred in.

(Motion agreed to)

Budget Implementation Act, 2004, No. 2Government Orders

3:30 p.m.

Western Arctic Northwest Territories

Liberal

Ethel Blondin-Andrew Liberalfor the Minister of Finance

moved that the bill be read the third time and passed.

Budget Implementation Act, 2004, No. 2Government Orders

3:30 p.m.

Scarborough—Guildwood Ontario

Liberal

John McKay LiberalParliamentary Secretary to the Minister of Finance

Mr. Speaker, the main part of Bill C-33 proposes a number of amendments to the Income Tax Act that were proposed in budget 2004. It also contains proposals introduced in last year's budget concerning the air travellers security charge, as well as legislation enabling interested Indian bands in Quebec to enter into sales tax agreements with the Government of Quebec.

This is the implementation bill for budget 2004. The measures contained in the bill reflect the agenda set out by the government in budget 2004.

At the core of the 2004 budget was the recognition that to achieve our goal of better lives for all Canadians, our social and economic policies must be mutually reinforcing. Hon. members would no doubt agree that there can be no strong economy without a secure society, and no secure society without a strong economy to support it.

The measures in budget 2004 were designed to meet the test of what Canadians believe are our priorities as a nation, priorities such as health, learning, communities, the economy, and our place in the world. I would like to take a moment to illustrate how each of these priorities are reflected in the measures in this bill.

The first is health. Canadians are justly proud of their social programs and are determined to see them maintained and improved. Canada's universal public health care system gives concrete expression to the principles of fairness and equality of opportunity that are the very essence of who we are as Canadians.

Budget 2004 reaffirmed the government's commitment to work with the provinces and territories to reform and sustain Canada's health care system. To that end, budget 2004 proposed key investments in our health care system, including tax measures designed to help persons with disabilities.

Hon. members will recall the Technical Advisory Committee on Tax Measures for Persons with Disabilities which was announced in the 2003 federal budget. The committee was formed to advise the Minister of Finance and the Minister of National Revenue on how the federal government could make the tax treatment of persons with disabilities fairer.

Building on previous budget measures to strengthen greater inclusion of Canadians with disabilities, Bill C-33 responds to an early proposal by the committee to provide better tax recognition of disability supports expenses, and improve the tax recognition of medical expenses incurred by caregivers on behalf of dependent relatives.

Specifically, starting with the 2004 taxation year, this bill proposes a new deduction for disability supports, for example, sign language interpreters and talking textbooks. This deduction will allow disability supports expenses to be deducted from income if they are incurred for education and employment purposes. As a result, income used to pay for these expenses will not be taxed and will not affect income tested benefits.

Bill C-33 also contains a measure of recognition of the expenses incurred by people who care for disabled family members. The proposed legislation will allow caregivers to claim more of the medical and disability related expenses they incur on behalf of dependent relatives.

I will now turn to learning. Canadians recognize the importance of education and helping individuals reach their full potential. Learning is the cornerstone of Canada's economic and social foundations.

Investments in learning are key to a social economy. Learning produces a workforce qualified to meet the demands of a growing economy and fosters advances in knowledge, the development of new technologies, new products and improved production processes. These in turn increase productivity, generate economic growth and promote Canada's international competitiveness.

The education tax credit recognizes the non-tuition costs of post-secondary education and training, such as textbooks. Currently the credit applies only for full time or part time students. However, employed individuals are not eligible to claim the credit in relation to the costs of the programs directly connected to their current employment, even if they pay the out of pocket expenses for these courses. As can be readily seen, there is an anomaly in the income tax system. One would almost have to quit one's job in order to get the credit, which of course does not make any sense.

In order to help more students undertake lifelong learning connected to their employment, the bill proposes effective January 1, 2004 to allow students to claim the education tax credit for education related to their current employment when the costs are not reimbursed by their employer. This will give Canadians who are upgrading their skills in their field of work access to the same tax benefits that are available to other post-secondary students.

I will now turn to community based non-profit organizations. They are an integral part of Canadian communities. We rely on them for delivery of many services. These organizations are in the fields of education, culture, the arts, delivery of social services, the think based communities, international aid deliverers, health, and the environment. In recognition of their contribution to the well-being of Canadians, budget 2004 contains a number of initiatives benefiting the voluntary sector and social economy.

For example, with respect to registered charities, the bill proposes significant changes to clarify the tax rules and ensure that they are administered fairly. It is important to mention that the initiatives proposed in the bill respond to the recommendations of the joint regulatory table which is a key component of the voluntary sector initiative that was launched in 2000 by the Government of Canada.

The other side of the equation is the economy. The government recognizes the significance of small business and entrepreneurship in securing a solid economy. Moreover, these enterprises are a key source of innovative ideas that are transformed into jobs. In past budgets the government has introduced important numerous measures to help small business and entrepreneurs. Budget 2004 is no exception. It builds on previous initiatives to help Canadian small business. I will explain three.

First, Bill C-33 provides for additional support for Canada's small business sector by helping small businesses retain more of their income for reinvestment and growth. Specifically the bill accelerates the planned increase of the small business deduction limit to $300,000 by one year to the year 2005. It moves forward that first threshold of small business income to $300,000 effective this year.

Second, Bill C-33 extends the non-capital loss carry forward period to 10 years. This initiative will be particularly beneficial to innovative start-up businesses that may experience losses while developing new products and technologies.

Third, Bill C-33 proposes to remove an impediment to ensure that small businesses conducting scientific research and experimental development can raise sufficient funding from common investors not acting as a group and still have full access to a 35% tax credit. This clarifies an anomaly in the interpretation of the tax act which is of great benefit to a certain class of investors.

As we know, the worth of a nation is judged not only by how it treats its citizens, but by its willingness to lend a hand to countries that are in need of assistance. Of course, Canadians responded very generously to the tsunami relief fund and the government matched that generosity going forward over the next five years.

Canada is recognized on the world stage in its role as a ready contributor to ensuring international peace and security. The government recognizes Canada's international obligations in a challenging world environment. Budget 2004 supported this priority by introducing a series of targeted initiatives in defence and foreign aid.

This government also acknowledges the sacrifices made by the men and women in our armed forces and police who take part in dangerous yet important missions. In recognition of these sacrifices, Bill C-33 proposes an exemption from tax on income earned by Canadian Forces personnel and police while serving on international high risk operations.

I mentioned at the outset that Bill C-33 contains other proposed tax measures, one relating to the air traveller security charge and another to aboriginal sales tax.

As hon. members will recall, the air traveller security charge was introduced to fund the enhanced travel security system on a cost recovery basis with a commitment from the government to review the charge to ensure that revenue remains in line with planned expenditures over a five year period.

The government has followed up on this commitment in a timely manner with successive budgets taking into account the impact of revised forecasts for air passenger traffic and updated expenditures for air travel security.

In budget 2003 the rate of the charge for domestic air travel within Canada was reduced by 40%. To ensure air travellers continue to pay only what is required to fund enhanced security for air travel and keep the security on a sustainable basis, budget 2004 proposed further reductions in the charge.

Specifically, the measures in this bill propose to reduce the charge for domestic air travel within Canada from $7 to $6 for one way travel and from $14 to $12 for round trip.

For transborder travel between Canada and the U.S. the reduction is from $12 to $10, and for international travel it is reduced from $24 to $20. Those reduced charges would apply to tickets purchased after April 1, 2004.

The next tax initiative is with respect to first nations people. In the February 2004 Speech from the Throne, the government highlighted the importance of building strong first nations governance. Both the Government of Canada and the aboriginal leaders agree that this can best be achieved by emphasizing the various elements of sound and effective governance.

One of these elements would give the first nations people the authority to operate, on their land, a sales tax system harmonized with the goods and services tax. Bill C-33 contains proposed amendments to the first nations goods and services tax act to facilitate the establishment of such a taxation arrangement between the Government of Quebec and interested first nations situated in Quebec.

I would like to assure hon. members that the government remains willing to work with interested first nations on establishing similar arrangements.

The significance of some of these initiatives are quantified in the budget plan 2004: for the fiscal year 2003-04, $2.5 billion for health; for the fiscal year 2004-2005, on the learning agenda, a further $251 million and a further $466 million in 2005-06; a further $293 million for building on the commercialization of research, investing in offshore development, investing in small business and entrepreneurship, and for strengthening Canada's tax advantage, going forward to a further commitment of $367 million.

Another initiative is the new deal for communities with a commitment of $100 million in 2003-04, ramping that up to $903 million in 2004-05 and going forward in 2005-06 to $776 million.

With respect to our relationship to the world, that initiative was costed out at $397 million for the 2004-05 year and $458 million in 2005-06.

In agriculture, we committed a further $1 billion in 2003-04, going forward to $233 million and then to $302 million. The total spending initiatives in 2003-04 were $3.6 billion; in 2004-05, $2.2 billion; and in 2005-06, $2.5 billion.

As members can see, the Government of Canada has in the past been committed and continues to be committed to the well-being of Canadians in the areas in which Canadians are most interested. I, like all members, am looking forward to the Minister of Finance delivering budget 2005, which I hope will take a realistic but far-reaching forward action into the next number of years and point the way forward for Canadians.

Budget Implementation Act, 2004, No. 2Government Orders

3:45 p.m.

Conservative

Ken Epp Conservative Edmonton—Sherwood Park, AB

Mr. Speaker, I would like to ask the parliamentary secretary an important question.

He talked about the fund that was used for the provision of security in airports. We all recognized over time that the fee was way too high for the amount of money that was actually spent. There are still huge gaps in security, especially in a number of airports across the country that have no security at all, and yet those passengers still have to pay the fee.

I wonder whether he would anticipate that the implementation of this almost one year old budget that would reduce the fee slightly would have a further and very necessary adjustment in the budget we are about to hear in about 10 minutes.

Budget Implementation Act, 2004, No. 2Government Orders

3:50 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

Mr. Speaker, I certainly would not be prepared to comment on what will be in the budget in the next 10 minutes, but I would indicate to the hon. member that in budget 2003 we had a 40% reduction in the charges associated with the air travellers security charge.

To be fair to the hon. member, it was true that the initial expenses were substantially higher than the expenditures. In recognition of those overcharges, the government immediately started to reduce the fee. It took off 40% in 2003 and, with this budget, reduces another substantial sum of money from the air travellers security charge. The government does recognize that the revenues have exceeded the expenditures.

It was always the intention that it would be in a stasis position, that the air travellers would pay for their security and their security only and that there be no windfall or Robin Hood amounts of money for the Government of Canada.

Budget Implementation Act, 2004, No. 2Government Orders

3:50 p.m.

Conservative

Betty Hinton Conservative Kamloops—Thompson, BC

Mr. Speaker, I have a very brief question. I am not sure the minister will be comfortable commenting on this, but could he give me any idea of the amount of money that was spent changing the uniforms and the insignia on the sleeves of the security workers in the airports?

I cannot, for the life of me, figure out how that could possibly have made us more secure. However I do know that it was an enormous expense and I am sure it would have entailed letterhead, envelopes and all the rest of it. Does the member have any idea of the cost of that?

Budget Implementation Act, 2004, No. 2Government Orders

3:50 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

Mr. Speaker, the short answer is, no. I know initiatives are undertaken from time to time that appear to be strange from an outside observer's viewpoint but I do not have a direct answer for the hon. member's question.