Pierre Paquette on Budget Implementation Act, 2006, No. 2

Mr. Speaker, the hon. member knows full well that we are in complete agreement with the principle of the accelerated capital cost allowance. However, I will say this: the Liberals amended tax rules with Bill C-48, with the result that mines have had their deductions for research and development and exploration expenses cut in exchange for reduced royalties. It is the same for the oil industry. The problem is that the provinces are getting practically no royalties from the mining sector. An undue advantage has been given to the oil industry, which has saved $250 million in tax while the mines have had their benefits cut. We have to continue to work on promoting the development of the sector—