Mr. Speaker, I would like to begin by reading a line that is buried near the very end of the Speech from the Throne: the government “will promote a more competitive, more productive Canadian economy”. That is it.
I was disheartened to see that Canada's future prosperity registered only a 10 word mention at the end of the speech, a brief mention without any details. I might say that while I was disheartened, I was not surprised, because none of the Conservatives' top five priorities are aimed at improving our country's prosperity.
I have heard the Prime Minister say that when these five priorities are addressed, the government will have more, but such short term planning does nothing to create a medium term and long term vision for this country, and there is not a single indication that the government has such a vision.
It begs the question: why is Canada's prosperity not a top five priority? It is amazing. The prosperity of a country is basic in terms of living standards, jobs and creating the wealth that is the foundation for our social programs, and yet it is simply not a top five priority.
It seems the government has no vision for how to take a country of some 30 million people and make it competitive in a world of economic giants like China, India and Brazil. There is no indication that the government has a plan to be more competitive with our closest neighbour and biggest competitor, the United States, yet this is what we have to do. We have to strive to create a Canadian advantage in everything we do.
The need to create a Canadian economic advantage is urgent. Yes, Canada's economy is strong today. However, if we consider the state of the world and the challenges of productivity and population aging we can see that it is not up to other countries to ensure Canada's economic growth.
In simple terms, the world does not owe Canada a living. That is why the government has to be concerned with our prosperity. That is why it is unacceptable that prosperity is not a top five priority.
The federal government must act on two fronts: competitive taxation and support for research, innovation and higher education. On the fiscal front, we must work toward the right balance between policies aimed at attracting and keeping businesses and skilled workers and policies supporting low- and middle-income Canadians.
In addition, we owe to the Chrétien and Martin governments a significant increase in federal assistance for research, innovation and higher education.
However, in each of these areas the government seems intent on creating a Canadian disadvantage rather than a Canadian advantage. This can be summarized very easily by saying that either the government is going in totally the wrong direction or it is missing in action.
On taxes, the government is going in the wrong direction. On everything else, innovation, research, higher learning, training, these things that are absolutely essential for Canada to prosper in the future, it is totally missing in action.
Let us look at taxes first. The Canadian Chamber of Commerce recently recommended:
That the federal government should:
Continue to put the highest emphasis on reducing personal income tax rates across all income tax brackets but particularly for low- and modest-income earners who face the most punitive effective marginal tax rates of all.
The Minister of Finance knows the benefits of reducing personal income tax. He believed in them when he was the minister of finance in Ontario. In 2001 he delivered several snappy responses in that legislature, showing that he truly understood that lower income taxes were the way to go. Let me quote from our Minister of Finance when he was Ontario minister of finance:
It has been the Ontario experience since 1995 that the reductions in the personal income tax have been most effective in stimulating the economy and creating jobs. They boost productivity growth the most directly of the various tax tools available to government. Lower personal income tax rates encourage entrepreneurs; they give employees the incentive to try harder and achieve success.
He then went on to say that the government was putting the money directly into people's pockets for them to spend as they saw fit. That almost sounds as if the minister was reading from Liberal talking points. It is almost as if he were a very productive member of the Liberal war room during the election campaign. He could not put the case for lower personal income tax more strongly and more coherently.
While the minister understood this concept, he is now not doing what he believes will boost productivity growth. He is not proceeding with the tax cuts that would encourage entrepreneurs. Instead, he is raising those taxes and creating a Canadian disadvantage.
Taxes, however, are not the whole story. There is no doubt that the Conservative program is also lacking in terms of research, innovation, higher education and training.
The Conservatives have cancelled $9.4 billion of the Liberal commitments in this area. These commitments were made as part of the November 2005 plan for growth and prosperity. The Conservatives are committing only $1.4 billion, a meagre 2% of their total election promises.
Here is one example which speaks volumes to the fundamental difference between the Liberal plan and the Conservative plan. Our plan was to pay up to half of the tuition fees in year one and year four for all college and university students. This is a major effort and a major expenditure to promote higher learning and increase accessibility.
The Conservatives would have none of that. What did they do? They give Canadian students a tax rebate on school books and scholarships to those who are already enrolled. There is the difference between our two parties in terms of the seriousness that we attach to higher education.
These policies put Canada at odds with almost every government in the developed world. All those other governments are all clamouring to become more competitive in a globalized world. As a comparison, let us just look at what is happening in the United States. The Speech from the Throne spoke of the U.S. as our best and largest trading partner and I certainly agree with that statement.
What the speech failed to recognize is that our best trading partner is also one of our biggest competitors and that our friendly competitor, which cannot be accused of suffering from a left-leaning government, certainly understands that there is a role for the public sector in creating its own competitive advantage.
The current mindset in the United States is explained well in a recent report ordered by the Senate and entitled Rising Above the Gathering Storm. Recommendation C mirrors the spirit of the report:
Make the United States the most attractive setting in which to study and perform research so that we can develop, recruit, and retain the best and the brightest students, scientists, and engineers from within the United States and throughout the world.
All of the report's recommendations focus on strengthening American economic leadership and most of them assume a significant increase in public spending.
If you believe as I do that Canada's economic future lies in the creation of a Canadian advantage, the American intention to implement decisive government measures in order to protect its economic leadership should send shivers down your back. It means that Canada must quicken its pace only to maintain the status quo and even more if it is to obtain an advantage. However, instead of quickening the pace, the government appears to be dropping out of the race.
At the moment, when other countries around the world are fixated in devoting expenditures to increase their research, innovation and universities, our government steps out of the race. At the moment, when other governments around the world are reforming taxes to make them encourage innovation, our government raises income tax and cuts the GST.
At the moment when the U.S. has indicated a new desire to search the world for the best and the brightest, given the aging population, our government is poised to cut the budget of the immigration department.
It is astounding and shocking, and unacceptable, that this government would ignore the prosperity of Canadians and that prosperity is not a top five priority. This side will oppose with all our vigour this total negligence of the prosperity of Canada and Canadians.