Mr. Speaker, I am pleased to speak to Bill C-28, a bill that implements certain provisions of budget 2006.
The Conservative government's first budget, however, fails to address the real needs of Canadians and Canadian families and it unfortunately fails to move the country forward. About the only positive aspect of this budget is that it builds on the eight consecutive budgetary surpluses delivered by our Liberal government. This budget promises another budgetary surplus and I hope the Conservatives deliver on that.
Given the strong fiscal record the Conservatives inherited from our former Liberal government, it is outrageous that the government is raising income taxes, slashing spending by $1 billion a year and excluding any real vision for the future of Canada's prosperity. Let me go through some examples of why this budget fails.
It fails to provide real tax relief for low income and middle income Canadians. Eliminating Liberal income tax cuts in favour of a 1% GST cut has been panned by every serious economist in this country as a plan that will benefit higher income Canadians at the expense of the more needy.
The Conservatives are hiking income taxes, which means that many people who got a refund for the 2005 tax year will end up paying in 2006. The Conservatives are increasing the basic personal amount by $200 and increasing to 15.5% the lowest tax bracket.
This budget fails to address the issue of climate change. The Conservative government has eliminated climate change programs and is abandoning the Kyoto accord. Its transit tax credit is costly and ineffective. It will cost about $400 million over two years and only increase transit use by 5%. This translates to a cost of $2,000 for each tonne of carbon dioxide saved, 10 to 100 times the cost per tonne under our Liberal government green plan.
Furthermore, the Conservatives are planning to finance this measure and their climate change plan, which they are still working on, by eliminating $2 billion worth of existing climate change programs.
Two of these programs are the EnerGuide for houses retrofit program and the wind power production incentive program.
EnerGuide worked. It was helping thousands of Canadian households achieve energy efficiency increases in the range of 30% and doing it in a way that was cost effective. The Conservative government should do the right thing, stand up for the environment and for Canadian consumers, and bring EnerGuide back. Our Liberal government's EnerGuide program supported the retrofitting of more than 100,000 homes for more efficient use of energy before the Conservative government cancelled it.
Wind power is another important component of Canada's response to the challenges of energy conservation and global warming. The wind power industry is responsible for thousands of direct and indirect jobs across the country, and our government's wind power production incentive program, or WPPI, as it is affectionately referred to, is essential to attracting investment and ensuring the viability of this industry.
The Conservative government has been exposed on this. We know that these programs were working and were cost effective. I am today calling for the government to immediately reinstate the EnerGuide program and the wind power production incentive program. The Standing Committee on Natural Resources recently adopted motions that also called for the reinstatement of these important programs.
Budget 2006 fails to provide a real child care choice for parents. As if $20 a week for child care is not bad enough, low income parents will be losing the young child supplement of the Canada child tax benefit. The Conservatives are cutting $1 billion from the Canada child tax benefit, a program that the Liberal government brought in and which was supposed to reach $10 billion this year.
Budget 2006 fails to establish a real plan to create child care spaces. Rather than honouring the Liberal child care agreements, something that the majority of provinces, parents and advocacy groups had demanded, the government insists on forging ahead with a nebulous plan which will mean that provinces will lose the stable funding agreed to by the previous government.
The budget offers nothing to meet the urgent needs of Canada's aboriginal peoples.
Rather than honour the historic Kelowna accord signed last November—which would have brought about great improvements in the lives of our first nations—the Conservative government chose to leave them behind and reduce planned funding by 80% from $5.3 million to just over $1 million.
Budget 2006 fails to make any significant investments in education and innovation. The Liberal government had a concrete vision that would have helped put us at the forefront of competitiveness and innovation. This lacklustre and visionless budget contains virtually nothing in this regard.
For example, our last fiscal update provided $2.5 billion for university research. The Conservative budget provides $200 million, less than one-tenth of our commitment. For student aid, our plan would have provided up to $6,000 per student for tuition over a four year program. The Conservative plan provides $80 for textbooks.
University students would like to see a portion of the Canada health and social transfer, the vehicle the federal government uses for transferring funds to the provinces and territories for social programs, dedicated to post-secondary education. This request I believe has some merit, provided accountability measures and performance benchmarks can be attached to these transfers along the lines of the 2004 health accord so that Canadians can evaluate how their province or territory is spending their money on post-secondary education and citizens can make comparisons with other jurisdictions. This makes some sense and is an example of a visionary initiative that is totally absent from budget 2006. Eighty dollars for students for textbooks just does not do it.
Budget 2006 fails because it cuts programs that help to build a highly trained and competitive workforce, programs like the training centre infrastructure fund. This fund was an important source for unions and management for the building of training centres. Union training centres are formed through partnerships among unions, management and government. They provide workers with the necessary information and on the job training to continuously improve their skills and remain at the top of their field.
The objectives of this partnership include developing and facilitating training programs that not only improve the vocational and safety skills of the industry but also enhance the employability of the students and meet changing and evolving market demands. In order to maintain this standard, training centres must upgrade their equipment and facilities to provide their students with the most innovative technology. The training centre infrastructure fund provided the necessary financial support to allow these centres to equip their facilities.
Recently, I attended the grand opening of a training centre operated by Local 285 of the Sheet Metal Worker's International Association in my riding. The local had been receiving funding from the training centre infrastructure fund until the Conservative government cut the program. The funding enabled the association to include in its training centre a state of the art welding laboratory and other equipment to ensure students receive the best training available.
The centre provides essential training to students entering the field and to professionals who have been working in the field for years but need to upgrade their skills to remain employable. It also plans to set up a training program to encourage more young people to get into welding. Unfortunately, the training centre infrastructure fund was cut, which means it will not have enough money to offer these programs now.
Budget 2006 also fails because it abandons Canada's forest industry and forest communities by caving in to the American lumber producers and the U.S. government and negotiating a bad softwood lumber deal that robs Canada of forest policy sovereignty. The U.S. will now dictate what forest policies we will have in Canada. The deals leaves $1 billion on the table in wrongly collected duties and it is in the hands of the U.S. government and U.S. producers.
The budget also stands by as our natural resource companies, companies like Inco and Falconbridge, are gobbled up by foreign companies. Are companies like Noranda and Husky Oil next? The government, with its laissez-faire attitude, does not care. I will be introducing legislation that will deal with this question and I am sure this House will have a good debate.
This budget really falls short. In 2007, or whenever the next budget is, the government will have a chance to rectify it. I look forward to that debate.