Mr. Speaker, it is my pleasure to rise today to speak to the 2005 budget implementation bill, Bill C-43, an act to implement certain provisions of the budget which was tabled in Parliament on February 23.
As chair of the Standing Committee on Finance, I am making it my duty to insist on having this bill passed as soon as possible in order to be able to respect the wishes expressed by Canadians.
The finance committee in its pre-budget consultation report entitled, “Moving Forward: Balancing Priorities and Making Choices for the Economy of the Twenty-First Century”, made 33 prebudget recommendations to the Department of Finance when it tabled its report in December 2004.
This report was prepared based on the testimony the committee heard from individuals, groups and associations from across Canada. The report was not based on my personal views, nor the members' on the committee, but a collection of views of different industries and sectors. Budget 2005 includes many of the committee's recommendations, and I would like to speak on a few of these.
For example, the budget implementation bill would create a $700 million trust for the provinces and territories to invest in early learning child care programs and services. This amount is the 2004-05 and 2005-06 portion of the $5 billion over five years committed in budget 2005. This was similar to the committee's recommendation 27.
I will not go through all the committee's recommendations, but I want to highlight how many of the budget implementation items were recommended by the finance committee. Again, the finance committee's recommendations were based on all-party agreement by members.
The budget implementation bill also would increase the guaranteed income supplement benefits for low income seniors by $2.7 billion over five years. That recommendation was similar to recommendation 29 in the prebudget report.
The budget implementation bill would also provide $600 million in federal gas tax revenue sharing for 2005-06 for municipalities to support environmentally sustainable infrastructure projects, which was similar to the committee's recommendation 9.
The budget implementation bill would also establish a new agency under Environment Canada to manage the $1 billion climate fund which will provide incentives for the reduction and removal of greenhouse gases, which was similar to the committee's recommendation 8.
The budget implementation bill would also increase the amount that Canadians can earn without paying federal income tax. That was similar to the committee's recommendation 24.
The budget implementation bill would also increase the annual limits on contributions to registered retirement savings plans and other tax deferred retirement savings plans. This was not a committee recommendation, but was included in the Liberal portion of the report.
The budget implementation bill would increase the child disability benefit supplement to the Canada child tax benefit. This was similar recommendation 28 of the committee report.
The budget implementation bill would allow for a longer period for the existence of and contributions to a registered education savings plan in certain circumstances where the plan beneficiary would be eligible for the disability tax credit. This was similar to the committee's recommendation 28.
The budget implementation bill would increase the maximum refundable medical expense supplement. This was similar to the committee's recommendation 28.
There is a clause for emergency medical services, which I think is a slight technicality, that we did not address in committee. The tsunami relief was not an issue when the committee held its consultations.
The budget implementation bill would eliminate the corporate surtax and reduce the general corporate income tax rate. That was similar to the committee's recommendation 12.
The budget implementation bill would extend the scientific research and experimental development tax incentives to SR and ED performed in Canada's exclusive economic zone. This was not exactly pinpointed to what the committee recommended, but it is very similar to recommendations 17 and 18 in its prebudget recommendations.
We have the air traveller's security charge. We did not address it because we left that up to the transport committee.
One that is interesting is the budget implementation bill would address the phase-out of the excise tax on jewellery. This was addressed in a separate report on two occasions, one in the last Parliament and one in the last session before the House broke for its Christmas break. The finance committee again tabled a separate report in which it recommended exactly what the finance minister has proposed on the excise tax on jewellery. Therefore, we need to have this budget implementation bill approved and adopted.
Another area that the budget implementation bill would provide for would be to extend the application of the 83% goods and services tax/ harmonized sales tax for the rebate for hospitals to government funded non-profit entities that provide health care services traditionally performed in hospitals. This is very similar to what the committee recommended in recommendation 30. We recommended any type of help that health institutions could be given, they would take it. This one was very well received by the health care service people.
The budget implementation bill would amend the Canadian Environmental Protection Act to facilitate the future addition of greenhouse gases to the list of substances under the act. This would allow the Minister of the Environment to regulate emissions and implement the proposed large final emitter regime and emissions trading system.
The budget implementation bill also would establish a technology investment fund to provide companies regulated under the proposed large final emitter regime with a compliance mechanism that encourages investments in greenhouse gas mitigation research and development.
It would also provide an additional $300 million for the green municipal funds, $150 million of which would be used to help communities clean up and redevelop brownfields, abandoned sites where environmental contamination exists. This is very similar to what the committee recommended in recommendations 7 and 8 and also what the Liberal Party highly recommended in its separate report.
The budget implementation bill would also introduce a new employment insurance rate setting mechanism under which the EI commission would have the power to set the premium rate, taking into account the principle that the premium rate should generate just enough premium revenue to cover program costs. This was one of the recommendations the committee made in recommendation 25.
There are other areas that the budget implementation will address and that is the offshore agreements with Newfoundland and Labrador and Nova Scotia, which were signed on February 14. The committee did not address this because it happened after the committee tabled its report.
There would be a transfer of $100 million to the province of British Columbia to battle the mountain pine beetle.
The last item I have on my list is to create a $100 million trust to help the territories meet the goals of the northern strategy, a joint initiative between the Government of Canada and territorial governments aimed at improving the quality of life of northerners. I do not think any member of the committee would have been opposed to that.
If I go through the list of recommendations, I have a list of 33 recommendations. If I go quickly through the list I can say that of the 33 recommendations of the finance committee, 7 recommendations from the committee were not addressed in the budget. Again, the finance committee is made up of members of all parties. The report was not dominated by only the Liberal members, but all members of the House.
The government is one that wants to govern. It has shown the openness and transparency to govern. If I am asked how, I would say by listening to what Canadians wanted.
Canadians told us what they wanted during the prebudget consultation when we prepared this book. The book was very detailed and provided the finance department with details of what Canadians told us. The finance department did a good job of listening to us. We owe it to Canadians to vote on Bill C-43, get it to committee and get it back in the House so the people of Canada can benefit from budget 2005 adopted by the finance minister.