House of Commons Hansard #20 of the 39th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was budget.

Topics

HealthPetitionsRoutine Proceedings

3:35 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

Mr. Speaker, the second petition I wish to present is on behalf of the residents of my riding and across the province of Ontario calling on Parliament to provide Canadians with greater access to drug, non-drug, preventative or medicinal options by clarifying the currently vague definition of food and drug in the Food and Drugs Act.

JusticePetitionsRoutine Proceedings

3:35 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

Mr. Speaker, thirdly, I wish to present two petitions on behalf of residents in Nipissing--Timiskaming and across Canada calling upon the government to allocate funds to ensure protection and assistance to victims of human trafficking. In particular, they also want the government to raise awareness of the issue of human trafficking, especially in terms of women and children.

I respectfully submit these petitions to the Clerk of the House.

Child CarePetitionsRoutine Proceedings

3:35 p.m.

Liberal

Ken Boshcoff Liberal Thunder Bay—Rainy River, ON

Mr. Speaker, this afternoon, after meeting with the Ontario Municipal Social Services Association, it was encouraged that I would be presenting this petition on behalf of early learning and care for our young people. I am pleased to do that as the list grows and grows. Hundreds more people have been signing this petition on a regular basis, pleading with the government to please reconsider its position and help young people.

Questions on the Order PaperRoutine Proceedings

3:35 p.m.

Regina—Lumsden—Lake Centre Saskatchewan

Conservative

Tom Lukiwski ConservativeParliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform

Mr. Speaker, I ask that all questions be allowed to stand.

Questions on the Order PaperRoutine Proceedings

3:35 p.m.

NDP

The Deputy Speaker NDP Bill Blaikie

Is it agreed?

Questions on the Order PaperRoutine Proceedings

3:35 p.m.

Some hon. members

Agreed.

Motions for PapersRoutine Proceedings

3:35 p.m.

Regina—Lumsden—Lake Centre Saskatchewan

Conservative

Tom Lukiwski ConservativeParliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform

Mr. Speaker, I ask that all notices of motions for the production of papers be allowed to stand.

Motions for PapersRoutine Proceedings

3:35 p.m.

NDP

The Deputy Speaker NDP Bill Blaikie

Is it agreed?

Motions for PapersRoutine Proceedings

3:35 p.m.

Some hon. members

Agreed.

Motions for PapersRoutine Proceedings

3:35 p.m.

NDP

The Deputy Speaker NDP Bill Blaikie

I wish to inform the House that because of the ministerial statement government orders will be extended by 12 minutes.

The House resumed consideration of the motion that this House approve in general the budgetary policy of the government.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:40 p.m.

Bloc

Monique Guay Bloc Rivière-du-Nord, QC

Mr. Speaker, to begin, I will take the opportunity to salute the population of my riding, Rivière-du-Nord. I thank them from placing their trust in me as a member for the fifth time.

The Bloc views this as a transition budget. It contains some measures which will satisfy certain needs in Quebec. The Bloc Québécois will therefore support the Conservative budget.

This budget contains certain things on which the Bloc Québécois has been working for many years. One of them is the fiscal imbalance. In the previous Liberal government, the Bloc succeeded in having the fiscal imbalance included in the throne speech.

At last, this budget recognizes the existence of the fiscal imbalance, first of all. Next, it also recognizes that there will be negotiations and timetables. For Quebec, this measure alone is of critical importance. For the Bloc, timetables show that the government is serious about this measure, the principal measure for which the Bloc has fought here for years. You will recall that a few years ago, when we spoke the words “fiscal imbalance” here in this House, it was as if we were talking about something that did not exist. Now it is well defined, and the government recognizes it.

The Bloc is eager to see the negotiations unfold and to see what this government truly intends to do, whether it does its homework. We will be watching it very closely.

So this important measure is to be found in the budget.

We also find the whole issue of post-secondary education. Money is being allocated for the students. As we know, this House has even seen the tabling of private members’ bills to provide measures for post-secondary students. There was never any movement from the government on this issue. Finally, we are seeing some initiatives, even though we do not know as yet how they will be formulated. Everything will be tabled here, in the House of Commons, and then we will all of us be able to discuss whether they are reasonable or not. At last there will be these sorts of initiatives.

There are also measures on social housing. The CMHC has a surplus of over $4 billion. That surplus might already be allocated to social housing. The budget refers to some $800 million in measures. That is a step in the right direction. It remains to be seen how this will be formulated, what will be given, how it will be distributed to the provinces and how it will be managed.

It should not be forgotten that the various provinces have their own programs to administer social housing. Quebec wants this money to be transferred so that it can administer its own programs, since they already exist. We shall have to see how all of this will be distributed and negotiated.

We will also have to see how long this will take. It is fine to make promises, but if this is to happen in four or five years, it will be of no use. We want real promises, not empty ones. Furthermore, we want to see whether this government will move as quickly as we want. You and I know that that is not always the case. We have witnessed many budgets. For me, this is the thirteenth. We know that sometimes, despite the promises, things do not move forward very quickly.

Nonetheless, there are some measures in this direction.

Obviously, some things that we had hoped to see in the budget are missing, particularly as regards employment insurance. The Bloc is firmly committed to this issue. Everybody knows that. In fact, we have repeatedly brought forward bills on employment insurance. We want to see an independent employment insurance fund. Even a majority of government members voted to create such a fund.

There is $48 billion in the existing employment insurance fund. We have to be able to recover that money so that we can reinvest in our programs and not just reduce the premium payments of employers, but also increase employee weeks of benefits.

We have that $48 billion available. We do not know what the previous government did with it. I hope that the present government will be able to track that money down and will then do something to help unemployed workers.

Just to note, Mr. Speaker, I would like to tell you that I will be splitting my time with the member for Trois-Rivières.

Self-employed workers are also one of our priorities. At this time, they are not eligible for employment insurance. All of these measures are extremely important. We have introduced bills so that self-employed workers can, if they so wish, pay EI premiums so that they can benefit from that program if the need arises. Self-employed workers may find themselves in very difficult situations. They do not necessarily earn a lot of money. If they have an accident or if their contracts dry up, they find themselves with no income and quite simply have to go on welfare. We would like to avoid this kind of situation, we would like to eliminate it, even. We want to improve the situation for everyone.

Employment insurance is a top priority issue for us. Unfortunately, there is nothing about it in the budget.

As well, the $1,200 allowance is somewhat disappointing. It has been decided that it will be given directly to families, when we know perfectly well that in some cases, at the end of the day—and people will realize this—families will be paying tax on that $1,200. If a true tax credit of $1,200 had been created, as the Bloc Québécois had called for, everyone who genuinely needed it would have received it.

On that point, perhaps the government will want to change things for the coming year. I do not know whether this is an on-going program. We have not been given any more information about it. Time will tell. The government will also see how the public reacts to it. When taxpayers fill out their tax returns, they will certainly realize that they do not have much left out of that $1,200, perhaps even nothing at all, or barely $200, and that it may not have been a good idea to do things this way.

Our child care program in Quebec is extremely important. I have not heard the government express its political will to negotiate with Quebec to allow this program to continue. The Bloc Québécois will never stop fighting for this issue. My colleague from Trois-Rivières will do so with vigour, I am sure. This is really important for us. Otherwise, Quebec will have a shortfall of $807 million and this will be unacceptable.

This is not a bad budget, but there is room for several improvements. The real budget will be the one in 2007. Then perhaps we will see different measures on which we can make a different judgment.

Also, there is the matter of the program for older workers. We have been talking about if for years. It has to be put back in place. As we know, we are living in the globalization era. At present, many manufacturing businesses are closing, particularly in the textile sector. The lumber industry has also suffered a great deal. But older workers have no program to help them make the transition. We have been demanding such a program for a very long time. We have asked the minister to restore it. We got a pilot project, but she does not seem to want to restore this program. It is extremely important that she do so.

I could go on longer, but I will try to summarize.

The final element that seems to me of great importance is the Kyoto protocol. We cannot disregard this. We see that the government does not really intend to respect the Kyoto protocol. It wants to completely transform things. It is trying to make us believe that it will deal with the matter of climate change and so on. The government wishes to transform everything in a rather ridiculous way.

It is extremely important that we respect our commitments. Canada should set an example. Quebec, for its part, has done its homework. It has hydroelectricity. It has done its work and will continue to do so. It is important for Canada to set an example for the rest of the world. Unfortunately, it is setting the opposite example. The government will have to pay the price sooner or later.

I sincerely hope that the measures announced in this budget are really put in place and that they are put in place quickly. For the needs of Quebeckers, we have to sit down and negotiate as soon as possible all the promises made in the budget and which we need in Quebec as quickly as possible.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:50 p.m.

Liberal

Brenda Chamberlain Liberal Guelph, ON

Mr. Speaker, my hon. colleague mentioned a number of issues that I am quite concerned about in the budget.

Kyoto is the number one issue. Many people now know much more than they ever did about what we need to do for the environment and for our children and our grandchildren. I know that the leader of her party for a long time supported Kyoto and really believed in it.

I am quite concerned that this budget has nothing in it. In fact it not only has nothing in it, but it actually has cutbacks in it. It has eliminated $2 billion worth of programs that were working, that were helping individuals learn how to do things better and to conserve energy. Those programs are gone and I am quite concerned.

The second issue I am concerned about is EI. The member touched on EI. For a long time I have worked on behalf of EI in this House and the member also has worked diligently on behalf of EI. There are serious deficiencies in this budget. As the member herself has worked for so very long on EI, I need a good explanation of how the member can feel comfortable in supporting a budget that is so deficient.

The member mentioned other issues, one of which was aboriginal affairs. Today the chair of that committee had to resign for making inappropriate comments. The member also raised the child care issue.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:50 p.m.

Bloc

Monique Guay Bloc Rivière-du-Nord, QC

There is no doubt, Mr. Speaker, that Kyoto is extremely important. The hon. member is completely right, there are significant cutbacks, but at the same time, this budget has good stuff in it for Quebec and my riding. In my region, we are experiencing a very serious and severe social housing crisis. One municipality in my riding is a regional capital. We have to find ways to help.

Ultimately, the solution to all that is Quebec achieving sovereignty. Having achieved sovereignty, Quebec will be able to administer all its programs on its own. It will be able to look after its employment insurance scheme and ensure that programs are in place for its people and for older workers. It will be able to ensure that no one is dipping into the employment insurance fund and that the money is truly reinvested for the benefit of the workers. It will ensure that our workers are treated well, and that our environment is conserved properly.

In the meantime, however, we have to live with what we have and vote for the budget, if only to resolve the fiscal imbalance. This will greatly help Quebec make strides towards its ultimate goal: sovereignty.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:50 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

Mr. Speaker, the hon. member spoke about affordable housing.

We know that in the early 1990s the former Conservative government began the trend of eliminating the national housing program. Then the former Liberal government decided to completely remove it and downloaded affordable housing to the provinces and eliminated the program. As a result, we have seen thousands of Canadians without homes. Some of them in fact are living on the streets.

Last year the original Liberal budget had no new money for affordable housing. It was only because of the NDP and Bill C-48 that $1.5 billion was assigned to affordable housing.

This year I see that there is only $800 million for affordable housing, but it is for one time only and some of this money will go to rent subsidies.

I understand the hon. member talked about the CMHC surplus and that surplus is not going to be used to fix affordable housing or build any new units unfortunately.

How can the hon. member's party support this budget that is in front of us? The $800 million is for one time only. After one year, are Canadians going to be pushed out onto the streets because there will no longer be affordable housing?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:55 p.m.

Bloc

Monique Guay Bloc Rivière-du-Nord, QC

Mr. Speaker, this budget has allocated $800 million for affordable housing. It is true that CMHC has $4 billion, but we must not forget that the House has other ways of trying to get money back. We can go about it through a bill. Her own party introduced a private member's bill to recover the $4 billion from CMHC.

We have also introduced a bill. There are other ways of making progress here.

Obviously, it will never be enough. I would rather hear that the $4 billion will be given back, but that is not the case. What we get is $800 million.

Let us fight for more. Let us keep up the fight here in the House by all means available to us, including private member's bills and government bills. That is how we fight the battles.

Remember that this is a minority government. If all of the parties agree, we can move forward. If we work toward that goal, we will get results.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:55 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, it is with pleasure that I take the floor in this House on the budget. Certainly for us, the Bloc Québécois, this is a transition budget. The real budget will be the one in 2007. Although we see numerous irritants in this budget, of which I will speak shortly, certainly it offers some openness, some commitment toward the fiscal imbalance.

For us, this is a concept which is important. We in the Bloc Québécois were the first to introduce this concept in this House. The previous Liberal government refused to even mention fiscal imbalance. Finally it is now recognized. We will be watching developments closely, for we want a real resolution of the situation. We truly want the money to be returned to the provinces, where the needs are, so that Quebec can truly solve its problems in its own way, for it is very familiar with its population’s needs.

For me, much of the role of a member of Parliament consists in analysis and judgment. Certainly, as members of Parliament, we have to be very knowledgeable about the needs of the people in our ridings and the needs of the population. Based on what we hear from them, we have to make a judgment. We have to assess the extent to which all the bills proposed in this House and everything that happens are balanced and make this a fairer society, where the distribution of wealth is appropriate and where there is a balance between rich and poor.

Unfortunately, this budget gives a little to everyone, it sprinkles a little bit everywhere. But one does not sense an overall plan, one does not really sense this judgment and this balance which might afford a vision of the type of society that this new government wants to develop for Canada.

Certainly in this budget there are some major oversights, including workers. There is nothing for older workers and nothing for improvement of the EI plan. No one is talking about the independent EI fund. There is nothing for the manufacturing industries, even though this is a known problem of adjustment to globalization. In my riding of Trois-Rivières, many workers are having a hard time, particularly in weakened sectors such as clothing. The same applies to bicycles, textiles and furniture. So we were expecting some remedial action so that we can cope with globalization.

Nor is there anything on industrial research. We all know how necessary research is for major economic development. So it is important to invest in industrial research and in research and development. Not to do so in this budget is to lack judgment and vision.

My colleague from Rivière-du-Nord talked earlier about the environment. The government told us it has a plan. We are still waiting to see what it looks like. In the short term, we seem to be giving up the struggle against greenhouse gas emissions. This is therefore problematic.

During the last parliament, I had the pleasure of sitting on the committee dealing with the status of women. I am very disappointed that there is nothing in this connection. And yet we know that the status of women throughout Canada is appalling. Many groups have come to see us. They needed additional funds to fight against violence towards women.

No measure has been proposed respecting pay equity. This is an issue, however, that Quebec is dealing with. Once again, Quebec could serve as a model. It is too bad that there is not the political will to deal with things.

The francophone communities also have some demands. If we want to make sure that we really have strong francophone communities, additional funds are necessary. There is absolutely nothing in this budget to address this.

Among the great oversights of this budget, there is the average family. For this typical family, that is, two spouses, two children, a family income of $65,000 or more, many dramatic events may arise. For example, for people living on a very tight budget, the rise in the cost of gas can be tragic.

In cases such as this, people in our ridings ask us what we are doing as members of Parliament to deal with this.

This budget does not give us any answer.

Let us talk about child care needs. A family with two children needs child care in order to carry on. Women are in the labour force because they have the right to be. Women who work make a significant economic contribution, but often they work because they have to.

Women need support measures in order to be able to enter the labour force. This government's lack of commitment is increasingly clear. The $1,200 allowance is certainly not a child care measure. As my colleague from Rivière-du-Nord said, we will fight to recover the $807 million that Quebec was deprived of when the child care agreement was terminated.

We truly value our child care, and we are determined to support families. It is important to us, and it should have been reflected in this budget.

It would seem that this average family I have described has been forgotten. When it is hit hard by a job loss, what support measures can it count on?

It was my pleasure, in the previous Parliament, to introduce a bill to improve the employment insurance plan by increasing the number of weeks and the amount provided as salary replacement.

Employment insurance has become a sort of lottery, open only to a few. It is not a privilege. Just as you insure your house against loss, you protect yourself in the event of difficulties. The family I have been giving as an example finds itself with only one salary and employment insurance benefits for fewer weeks with little replacement income. So this family finds itself in difficult straits and will end up in debt for many years.

Workers are therefore making legitimate demands, and people expected answers. It is a fact that $48 billion has been taken from the employment insurance fund. This money belongs to workers, let us give it back to them. It is not charity. It should go back to the workers. They are entitled to it.

There has been talk of POWA, the program for older workers. In my riding there are massive layoffs in the manufacturing sector and there is no adjustment formula for workers 55 and over.

We know how difficult it is for someone with little formal education to upgrade. These people need initiatives as a bridge to pension benefits. An adjustment period is therefore necessary for these workers; we have been calling for it, and the government should seriously consider including something along those lines.

There will be a feasibility study, we are told. That is not enough, as far as we are concerned. The program used to exist. The money is there. It is just a matter of implementing the program.

The pilot project providing five additional weeks of benefits in regions where the unemployment rate is above 10% will end in June, and we are still waiting for it to be extended.

It is tragic for the families of workers affected by the spring gap, making it all the more important to successfully deal with these problems.

It is my responsibility as the intergovernmental affairs critic and I would like to address the numerous invasions resulting from this budget. The $1,200 allowance definitely invades provincial jurisdictions. Since Quebec already has it own security regulator, that is no use to us. As for the Canadian agency for assessment and recognition of foreign credentials, these come under provincial jurisdiction. And the list goes on.

This is all very disappointing, especially from a government that had promised to respect provincial areas of jurisdiction. The public has to realize what kind of government we are dealing with. This is certainly a government which, like Ulysses, will want to fill our ears with wax so that we cannot hear the song of the sirens.

Such invasions are unacceptable, and we will continue relentlessly to demand full autonomy for Quebec and the transfer of the money we are owed, with no strings attached.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:05 p.m.

Liberal

Brenda Chamberlain Liberal Guelph, ON

Mr. Speaker, I listened carefully to the hon. member talk about a lot of things, a lot of people and a lot of groups that were forgotten. She talked about the older workers, EI people, Kyoto, the aboriginal people, children, the environment, status of women, the average family and all families being neglected in some fashion. It seems to me that there were so many groups that it is hard for me to understand why the member supports the budget.

I know there is one thing that people in Quebec really want in this budget, and perhaps they are getting a tidbit, but nothing has been spelled out. It is just empty promises to get support. I feel saddened about that.

One issue she talked about was the increase in gas prices. I know my constituents are really cross about the high gas prices. We know before the election that the present Prime Minister said that if gas prices went over 85¢ he would take away the federal tax. He has not done that.

Does the member not think the Prime Minister should take that tax away when he promised he would?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:05 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, naturally since I gave many examples, the member has many questions. For the Bloc Québécois, resolving the fiscal imbalance is what is important and is a key government promise. Since its inception, the Bloc Québécois has asked for the return of moneys held by the federal government and the exclusion of the federal government from Quebec's areas of jurisdiction.

For many years, the Liberal Party, among others, has been infringing on provincial areas of jurisdiction. These intrusions have constantly undermined the place of the provinces in Canada. For the Bloc Québécois, the government's statement that it wishes to avoid intruding on provincial jurisdictions and to solve the issue of fiscal imbalance is a breath of fresh air and is convincing enough to give it the benefit of the doubt.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:05 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, both the member and the Bloc member who spoke immediately previous to her commented on EI. However I think there was some misunderstanding with regard to the facts related to the EI fund. EI had a $48 billion surplus and the member implied that somehow we did not know where that money went.

The fact is that the EI fund used to operate on a deficit basis. It was a separate fund and therefore was not included in the financial performance of a government in a fiscal period. Accordingly, the Auditor General required that the employment insurance plan be run through the consolidated revenue fund which would be a determinant in terms of the deficit or surplus for a year.

The statutory instruments that guide this require that about two years' worth of EI benefit levels remain in the fund so there should be a surplus of some $12 billion to $15 billion a year. There are provisions also in that statutory instrument for the reduction of any additional surplus which is dealt with annually, either in terms of premium reductions, new programs or increased benefits. It is pretty clear how it works.

The principal concern of the member who just spoke was with regard to who was eligible for benefits. The plan actually is run in accordance with guidelines that are produced. There are different levels for a first time collector versus those who are recurring collectors. There is a provision, depending on the region people are in and the unemployment rate as to how many hours are required. The only reason that some people do not receive benefits is simply because they do not have enough hours.

How many hours does the member believe someone needs to work in order to collect EI benefits? What is the answer?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:10 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, my comments are being somewhat misconstrued. When we say that $48 billion was taken out of the EI fund, that means that indeed this money was allocated to the consolidated surplus and to paying down the debt. That is why we are calling for an independent fund, to keep this money in the hands of workers.

If $10 billion is needed in reserve to maintain the integrity of the fund, then a $38 billion surplus still remains. That is how this should be settled.

My colleague addressed another aspect of this issue and that is the employment insurance benefits that workers receive. Hon. members know that the rules have changed over the years. The percentages of benefits and the number of weeks they are paid have continued to decrease, with the intention of giving less to workers. Therein lies the problem. It is the employers and workers who contribute to employment insurance. The government contributes nothing. The fact remains that when workers fall on hard times they cannot even count on a good income replacement. That is what we find unfair.

For this reason, when we talk about improving the employment insurance scheme, it is a matter of increasing the benefits workers receive and the number of eligible weeks. The debate is about how to ensure fairness and a decent income for people who truly need it.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:10 p.m.

Durham Ontario

Conservative

Bev Oda ConservativeMinister of Canadian Heritage and Status of Women

Mr. Speaker, I will be sharing my time with the member for Battlefords—Lloydminster.

I am pleased to stand today on behalf of the people in my riding of Durham and speak to budget 2006. It is a focused budget that will deliver benefits to the families, students and seniors in Durham.

Those in my riding know their tax dollars will be used in a more transparent, accountable and disciplined way; used to make our families stronger, our streets safer and our businesses grow. The budget will provide more than twice as much in tax relief as in new spending. It delivers on our five priorities while paying down $3 billion of our national debt.

Durham is a fast growing community, building on a long tradition of farming and industry. It is a community that is welcoming more and more new families each week. During my last weekend visit to the riding, I attended two openings of two new housing projects.

The young families that will move into those new homes this year will see the benefit of the 1% decrease in the GST, not only on the cost of that house but on the many other purchases they must make as they settle in. Their children will take active part in the many organized activities Durham has to offer. The sports fitness tax credit will help these families as their children participate on soccer, hockey and baseball teams throughout the riding.

I have spoken many times in the House about the unique child care needs of families in the small towns and hamlets and in Durham. Their day care needs would not be met by a nine to five institutional approach because they are commuters not able to meet nine to five limitations. Many are shift workers and many choose to rely on family members or neighbours for day care.

Our day care program respects their needs and leaves the choice in the hands of parents and the family. It allows our smaller communities to work together with businesses and community organizations to create new day care spaces where they are needed.

The budget will not only help Durham families but the many small businesses in the region by increasing the amount of the small business income eligible for the 12% tax rate to $400,000, while decreasing the 12% tax rate to 11.5% in 2008 and 11% in 2009.

The government also heard the voices of the agricultural community in Durham. I know that for generations the farmers in Durham have been feeding their families, the community, cities and Canada. The government is standing up for farmers by providing an additional $2 billion for agriculture as it works on longer term solutions for the farmers in Canada. In fact, I would like to read a quote from a letter to the editor by a local farmer. He says:

To be reasonable and fair the government has reacted timely and responsibly considering the length of time that these individuals have been a government.

The announcement in yesterday's budget provides an opportunity to survive a little longer and the opportunity to work towards a better tomorrow both for the primary producers and you the ultimate consumer.

Budget 2006 is about our future. It reduces taxes and it benefits families, students and businesses. It supports our seniors who have worked hard and deserve to enjoy their retirement. It will enable the municipalities of Uxbridge, Skugog and Clarington to address their infrastructure needs with the continuation of the gas tax transfer. This is a budget that works for Durham.

As the Minister of Canadian Heritage, I am proud to be part of a government that recognizes the importance of the arts community to Canadian society and to our quality of life. The increase of $50 million to the Canada Council was welcomed by the arts communities across the country.

In addition to the extra funding for the Canada Council, the budget proposes a significant new tax measure. Donations of publicly traded securities to public charities will no longer be subject to the capital gains tax. This could inject up to approximately $300 million annually into the non-profit sector. This measure will have an important positive impact on the arts sector and will stimulate private participation in the arts and cultural communities.

This measure will have an important positive impact on the arts sector. This will stimulate private participation in the arts and cultural communities.

As stewards of Canadians' hard-earned tax dollars, our government believes that public spending on arts and culture must be focused and generate clear results. I will be working hard, along with my colleagues, to deliver on our promises to ensure true benefits for all Canadians, not only in the arts but in all aspects of Canadian life.

I want to conclude by pointing out once again that this government is focused. This government does not make outrageous promises. This government was determined to tell Canadians what it would deliver on when it became government, to limit that to what it would be focused on and to identify clear priorities.

I want to thank the people in Durham for their confidence in me and this government. As Joe Hickson and the farmers pointed out, for the short period of time we have been in government, we are delivering. They are seeing results.

As we go forward as the Government of Canada, we will continue to demonstrate good projects, good benefits and real results.

Most importantly, we have satisfied and will continue to satisfy the public's concern about responsible use of their money. I know the taxpayers in my riding of Durham. They are willing to pay taxes as long as the money is being used in the responsible way they believe government should use it. They want to see those dollars benefiting Canadians. They want to see those dollars going to the people they were intended to help.

The people of Durham sent me here to work on their behalf. Their support has given me the opportunity and the responsibility to work on their behalf to deliver a responsible tax system, a focused government and a responsible cabinet, to ensure that there is beneficial spending and, consequently, a better life for all Canadians and a better Canada for all.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:20 p.m.

Bloc

Christian Ouellet Bloc Brome—Missisquoi, QC

Mr. Speaker, my question is for the Minister of Canadian Heritage.

She says that Canadians are ready to pay taxes, but that they want good services. Why did the government cut the GST by 1% in its budget? We know that this will cut every riding's budget, including my own, by $13 million. This money could be invested in cultural activities, in heritage, in things that are really important. We get $13 million less for a tax cut that means more to people who buy expensive things than to those who have lower incomes and have to buy diapers and books for their children.

That is not what is important. I would have supported cutting income taxes, but the 1% tax cut takes money out of community coffers, which make it hard for them to support heritage.

I would like the minister to tell the House just how prepared people are to pay taxes. Why the 1% tax cut?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:20 p.m.

Conservative

Bev Oda Conservative Durham, ON

Mr. Speaker, a responsible government recognizes that it has responsibilities right across this country. We believe and we know that the 1% decrease in the GST is for all Canadians, including those in Quebec. This 1% decrease in the GST, and then the subsequent 1% decrease, will help all families. It is direct tax relief. It will stimulate the economy. We know that the rising prices of things like electricity, hydro and gas will be affected by this 1% decrease in the GST.

Consequently, in order to be responsible, we have to give relief, but we have to make sure that at the same time the spending we provide is going to good projects that benefit the people of Canada. We cannot just keep spending and spending. We have to also make sure for the long term future of Canada that we stimulate the economy, that we stimulate a growth in business and in the industries.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:20 p.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

First, Mr. Speaker, I would like to congratulate my hon. colleague on becoming minister. I served with her on the heritage committee. It was a great time and we did some good work.

That being said, the current chair of the heritage committee brought up a point in committee just the other day when he talked about museums, smaller museums, especially those in rural communities. I have quite a few museums in my riding, and the financing and operational costs have become a bigger issue.

I was wondering if the minister could comment on the heritage department's role in these smaller museums and whether or not it will be there for them with the funding they need. I know that the minister talks about stimulating growth and everything else, but the problem is that I do not have all these bigger companies in my own riding, it being as rural as it is, so I was wondering if she could talk about some money and obviously some good support for many of these smaller cultural institutions around the province.

Perhaps I am being a bit of a braggart in a way, but I come from a province that I consider to be brimming over with culture. I was wondering if she would comment on that issue.