Debates of Nov. 6th, 2006

Income Trusts

[Jim Flaherty, Conservative, Minister of Finance]

Mr. Speaker, Canadians, and I am sure even some of the members opposite, saw what was happening in 2006. We saw the income trust sector increase by some $70 billion. We saw the telecommunications sector, first one and then another company, decide in a capital intensive section of the economy that it felt obliged to go the income trust route.

We were going to see more. There were more that were being talked about. If members opposite and the member for Wascana truly believe that an income trust economy is in Canada's best interests, then go ahead and--

[The Speaker, Liberal, Peter Milliken]

The hon. member for Hull—Aylmer.

[Marcel Proulx, Liberal, Hull—Aylmer, QC]

Mr. Speaker, a good way to cause a traffic accident is to signal right, then turn left. By reneging on its promise not to impose new taxes on income trusts, the government is directly responsible for the catastrophe affecting small investors.

What does this government have to say to Robert Vallée? He wrote, “Like a lot of retired small investors, my financial security took a big hit... After reassuring investors by making an explicit promise not to touch income trusts, the government dealt them a direct blow—”

[The Speaker, Liberal, Peter Milliken]

The hon. Minister of Finance.

[Jim Flaherty, Conservative, Minister of Finance]

Mr. Speaker, what can I say? Many sources in Canada disagree terribly with what the member opposite has just said. For example, the Toronto Star editorial board said:

But the [Finance Minister] nevertheless deserves much credit for doing the right thing by plugging a tax-avoidance loophole that he rightly described as “a very bad thing for Canada”.

I invite the members opposite, if they truly believe it is the right thing for Canada to have an income trust economy, to go ahead and vote against the motion. Those members know and I know that when--

[The Speaker, Liberal, Peter Milliken]

The hon. member for Hull—Aylmer.

I hope that the hon. Minister of Finance will address his remarks to the Speaker instead of to his other colleagues.

[Marcel Proulx, Liberal, Hull—Aylmer, QC]

Mr. Speaker, retired people are not the only ones who invested in income trusts.

What does this government have to say to students who, like Étienne Bernier, put their scholarship money in income trusts? Mr. Bernier lost $3,000 in one day. For a student, losing $3,000 is a big deal.

Does the government not fear that, by reneging on its promise, it is contributing to the people's cynical attitude about politics?

[Jim Flaherty, Conservative, Minister of Finance]

Mr. Speaker, I would remind the member opposite that the provisions with respect to changing the tax rules for income trusts do not come into force for some four years for trusts that were trading on October 31, 2006. This is a long period of time. There will be time for context and perspective. It was done similarly to what was done in other places because other places, including the United States, the United Kingdom and Australia, have made it clear that this type of economic instrument was not in the best interests of a competitive, productive economy going forward. That is in the best interests of all Canadians.

Taxation

[Pierre Paquette, Bloc, Joliette, QC]

Mr. Speaker, in April, the Government of Quebec stated that $3.8 billion annually was needed in order to correct the fiscal imbalance.

Has the Minister of Finance received a request for such an amount from his counterpart in Quebec, and has he begun negotiations with him on that basis?

[Jim Flaherty, Conservative, Minister of Finance]

Mr. Speaker, the information we used with respect to decision making on the income trust issue was the information that was available about the growth of income trusts, about the reality that we were seeing income trusts being chosen as an instrument of conversion by companies in the telecommunications business, that there were many more to come, and the kind of economy that we would end up having in Canada, not to mention the tax fairness issue where large telecommunications companies could avoid taxes in excess of $1 billion.

[Pierre Paquette, Bloc, Joliette, QC]

Mr. Speaker, the minister unfortunately did not understand the first question. I was not talking about income trusts, but about the fiscal imbalance, which the Government of Quebec puts at $3.8 billion annually.

I would remind him that the Quebec finance minister gave this figure publicly in the National Assembly on April 12. He concluded, “That is what we have asked for”.

Has the Minister of Finance heard of this request from the Government of Quebec for $3.8 billion annually to correct the fiscal imbalance, and has he begun negotiations with the Government of Quebec on that basis?

[Jim Flaherty, Conservative, Minister of Finance]

Mr. Speaker, yes, I have heard that figure and I have heard other figures from various provinces. I have heard figures from Quebec with respect to the issue of fiscal imbalances. We are on track. We are continuing the discussions vigorously with the various provinces on the fiscal balance issues. We said that we would continue these discussions into the autumn and we are. The finance ministers intend to meet, probably in December, and then moving toward a resolution in budget 2007.

Aboriginal Affairs

[Anita Neville, Liberal, Winnipeg South Centre, MB]

Mr. Speaker, the law and the Constitution is clear. Despite this, the Minister of Indian Affairs is trying to abdicate his government's responsibility by stating that pre-Confederation land claims are not a federal responsibility. Caught in the middle of this are the people of Caledonia and Six Nations who simply want a resolution to this dispute.

Will the Prime Minister tell his minister to stop dealing in semantics and instead focus on reaching a settlement agreement?

[Jim Prentice, Conservative, Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians]

Mr. Speaker, I am not focused on semantics. I have simply pointed out and have had a public discussion about the fact that both Ontario and the Government of Canada have parallel responsibilities that impact on Caledonia.

With respect to the Government of Ontario, there is the question of policing and there is the question of property civil rights under the Constitution. I do not hear anyone from Ontario suggesting that they wish to surrender that constitutional jurisdiction.

The Government of Canada clearly has a role with respect to land claims and we will continue to work together to resolve the issue.

Sports

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, from August 2 to August 10, 2008, the fine folks in the community of Cowichan in beautiful British Columbia will host the 2008 North American Indigenous Games.

To celebrate aboriginal sport and culture, these games will bring together 2,000 cultural performers, more than 3,000 volunteers, over 5,000 junior athletes competing in 16 sports, and generate more than $26 million for the local economy.

Could the Minister for Sport please share with the House what our government is doing to support these games?

[Michael Chong, Conservative, President of the Queen's Privy Council for Canada]

Mr. Speaker, aboriginal Canadians have had a long proud tradition in sport in this country. We have Canadians like Tom Longboat who won the Boston Marathon in 1907 and set a world record in doing so. We have Canadians like Jordin Tootoo who plays for the Nashville Predators.

As the Minister for Sport, I am pleased to announce that we will be building on this tradition by contributing $3.5 million to the North American Indigenous Games to be held by the Cowichan Tribes in the beautiful province of British Columbia.

Our government's contribution to these games demonstrates our commitment to aboriginal Canadians' participation and excellence in sport.

Aboriginal Affairs

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, Pikangikum is in crisis. It is the Kashechewan of the northwest. This fly in community still depends on buckets to collect drinking water from lakes and the kids in high school shop classes are busy making outhouses because there is no sewage system.

The chief and council have asked the province to intervene because the health situation is so dire. The people in Pikangikum feel abandoned by the government.

Will the minister meet personally with chief and council to explain the government's plan to improve the health situation in Pikangikum?

[Jim Prentice, Conservative, Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians]

Mr. Speaker, I am certainly prepared to meet with the chief or any other chief at any time.

On a day when we have been focused on Liberal files which were bungled, botched and backlogged, it is not a surprise that first nation water would be of concern to the House.

The Pikangikum community is one of close to 200 communities which the government inherited where the drinking water system is at high risk or worse. We are working on it. We have invested $1 million this year, $1.1 million is scheduled for investment next year and, in the years beyond that, an additional $9 million is scheduled to deal with the water and infrastructure issues.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, finger pointing is not helpful. In this community, 780 students in Pikangikum go to school in a building intended for 250.

Overcrowding in homes is just as bad, with up to 18 people living in buildings intended for a family of four.

Pikangikum has had six suicides in the last year.

When will the government reveal its intentions for this particular community? When will the minister actually meet with chief and council and tell them his plans for safe drinking water on this reserve?

[Jim Prentice, Conservative, Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians]

Mr. Speaker, as I said, in addition to the $11.1 million investment to which I referred for drinking water and infrastructure in the community, the annual budget for the community from the Government of Canada is $12 million.

We are meeting with the chief and council on a regular basis through our officials. Certainly I am prepared to meet at any time to discuss the way forward. There are critical infrastructure issues in the community, such as electrification, water and a new school, and we need to move forward on those issues.

We have inherited a situation that is not a good situation and we are working diligently on it.

[Anita Neville, Liberal, Winnipeg South Centre, MB]

Mr. Speaker, the reserve of Pikangikum is in major crisis. It has no clean drinking water, overcrowded housing and substandard education facilities.

At one point in time the Minister of Indian Affairs said that ensuring access to clean drinking water was a priority of his. Now the minister's spokesperson says that these are issues that cannot be resolved in nine months.

In his own words, will the minister tell us why he is missing in action as it relates to Pikangikum? When will he stand up and prevent our citizens from living in third world squalor?

[Jim Prentice, Conservative, Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians]

Mr. Speaker, let there be no doubt that if there are Canadian citizens living in their world squalor, that is the party that governed this country for 12 years and allowed it to happen.

Whether it is with respect to education or water, it is deplorable. Those members should be embarrassed and humiliated to stand up and ask that kind of question.

Federal Accountability Act

[James Bezan, Conservative, Selkirk—Interlake, MB]

Mr. Speaker, the federal accountability act has been stuck in the Senate for almost twice as long as it took for the House to pass it.

While unelected Liberal senators delay the accountability act, the leadership candidates for the Liberal Party have had absolutely nothing to say on accountability. As well, not one of those Liberal MPs who refused to vote against the accountability act has done a thing to get the act out of the Liberal Senate.

Could the President of the Treasury Board tell the House what he thinks the real reason is for the Liberal foot-dragging in the Senate?

[John Baird, Conservative, President of the Treasury Board]

Mr. Speaker, the cloud of the sponsorship scandal is still hanging over the Liberal Party. Not one Liberal leadership candidate has come forward with any ideas, any suggestions or any proposals on how to clean up the ethical mess that is the Liberal Party of Canada.

The reason for that foot dragging is that the Liberals are ashamed that they have no plan to clean up politics and no plan to bring in more accountable government. Liberal members of Parliament and Liberal leadership candidates need to come clean and tell Canadians why they will not pass the federal accountability act.

Presence in Gallery

[The Speaker, Liberal, Peter Milliken]

I would like to draw to the attention of hon. members the presence in the gallery of His Excellency France Cukjati, President of the National Assembly of the Republic of Slovenia.