House of Commons Hansard #34 of the 39th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was budget.

Topics

Budget Implementation Act, 2006Government Orders

3:45 p.m.

NDP

Judy Wasylycia-Leis NDP Winnipeg North, MB

Mr. Speaker, I will be sharing my time with the member for Acadie--Bathurst.

It gives me great pleasure to rise this afternoon to speak one last time to Bill C-13, the Budget Implementation Act. It was interesting to listen to some of the Bloc members suggest that this bill is now supported by everyone in the House and that the budget has been approved by all parties. I think they doth protest a little too much. Perhaps they were looking for an opportunity to reverse their support of the Conservative government and that opportunity did not happen and they are disappointed.

I am here to say that the New Democratic Party stands opposed to this bill. We were opposed at the beginning. We were opposed at second reading. We were opposed at committee. We are opposed today. We are opposed for very good reasons. The Bloc members are foaming at the mouth in the hope they could join us because they are embarrassed by their position of support for the Conservatives and the budget.

Let us acknowledge what happened today. There was some procedural confusion and as a result, this afternoon we are having a debate on Bill C-13, in another form perhaps than is normally the case, but certainly it is a debate where every one of us can put on the record our party's position with respect to the bill.

We were opposed from day one for the very reasons that the Bloc opposed the Liberal budget last year. There was a lack of reference to housing, a lack of reference to aboriginal Canadians, a lack of reference to health care, a lack of reference to child care, and a lack of emphasis on urban transportation. These are all issues that Canadians raise with us day in and day out, which the Bloc last budget year when we were dealing with a Liberal minority government thought could just be put aside, that those issues did not matter and the budget could pass without any such reference.

Those members across the way were very disappointed when the NDP actually managed to get something in the Liberal budget for Canadians. Much to the dismay and disdain of those members, we actually managed to achieve $4.6 billion for Canadians. We actually managed to get money for housing, money for education, money for aboriginal Canadians, money for urban transit, money for the environment, and money for international development.

Those members of the Bloc could not bring themselves to support us in that initiative. Yet interestingly, when it came time for them to justify their support for the Conservatives, what did they point to? They pointed to every element in the present budget pertaining to the NDP better balanced budget, Bill C-48. They pointed to the money referenced in this package for housing, for education, for aboriginal Canadians and for urban transit. All the items that they are now bragging about were a result of the NDP balanced budget a year ago when we were dealing with the Liberal government.

Those Bloc members are so confused they do not know what end is up.They have put themselves in the very embarrassing position of not standing up for the working people, for ordinary families in this country, including those in their own province of Quebec. They have bowed to pressure from the Conservatives because of a political agenda and have succumbed to a government's agenda that in no way represents working people and working families.

One cannot stand in the House today and say that this budget is good for working families. This budget helps big business and big corporations. It is a very good budget for wealthy Canadians and large corporations, but there is nothing for ordinary families. Under this budget child care wait lists will go up, family allowance will be diminished, pollution will go up and student debt will go up.

The Bloc can support this? The Conservatives can present this kind of budget? This budget in no way reflects the realities of working people and the kinds of difficulties they face on a day to day basis.

Let me give members opposite 10 reasons why we oppose this budget. Let me start first of all with the fact that it is a budget for business, not a budget for working families. The minister himself said so. He said he listened to business. There is a National Post article dated May 26 saying the Minister of Finance “delivered in budget. Listened to business”. He admits that he sought out the wisdom of business to make this budget business friendly.

He did not say he spoke to working people. He did not say he spoke to ordinary Canadians across this country because he cared about what they had to say and he wanted to make sure this budget was balanced. No, he did not. As a result, we are dealing with a budget that is flawed and that does not address ordinary families by any stretch of the imagination.

He gives huge corporate tax breaks of $7 billion. The Bloc and the Conservatives together, I might note, gave $7 billion in corporate tax breaks at a time when corporate profits are now running at 14.6% of GDP, the highest level on record. Profits rose 16.4% in the last quarter of 2005, 13% higher than during the same period a year earlier.

Corporate Canada is sitting on so much cash right now that even its own analysts are concerned. One banker admits that at least $80 billion in excess liquidity is sitting out there and that this figure is likely to rise by another 11% this year. We can go on with the statistics, but let me say that is the number one reason why we oppose this budget. It caters to big business. It ignores ordinary families.

The second reason is that it does not help small business. If the government is so concerned about small and medium sized businesses, the mom and pop shops and the small entrepreneurs, those who are really the backbone of this country, this budget does not do it. It does not give them any special supports.

When it comes to the one tax provision that the Conservatives say is progressive, which of course we dispute, the reduction of the GST by 1%, they refuse to give a penny of assistance to small businesses that are having one heck of a time trying to adapt all of their systems in order to accomplish this reduction in the GST. We asked the Minister of Finance point blank in committee on May 30. He absolutely refused to do one thing to help small business and would not even provide some support program or some assistance to help them deal with the fact that this is a big deal when it comes to businesses that are very small and have few employees.

The third reason we do not support this budget is that it does not at all address working families. I have hinted at this by mentioning its bias in terms of the corporate tax giveaways, but let us be clear that when it comes to ordinary working families, the burden of paying for government and all the supports we need has shifted onto the shoulders of ordinary families, with a much greater percentage of revenue coming from income taxes from individuals, not corporations.

I thought this country was about balance. I thought we were interested in ensuring that everyone plays a part, that individuals are not singled out and that big business pays its share. Why, then, does the government continue to favour big business when ordinary Canadians are suffering?

Why does it not look at the huge blows being taken by our manufacturing sector, especially because of the high dollar, the loss of jobs, the high unemployment rate among young people, the way in which women are trying to juggle working family responsibilities, and the way in which so many working people are holding down three and four jobs just to make ends meet?

Is it not time that those Canadians got a raise? Is it not time that those Canadians got a share of the pie at a time when we have this huge fiscal dividend of something like $83 billion over the next five years? Yet the government could not find it within itself to put some money toward programs that actually make a difference to ordinary families, programs in the areas of education, training, child care, housing, the environment and aboriginal concerns. That is where we must start for a truly meaningful budget that meets the realities of Canadians.

The fifth reason we do not support the budget is that there is absolutely no focus on the future of this country in terms of equalization. There is no plan today to address the O'Brien report that came out yesterday in terms of defending and supporting a program that is meant to equalize conditions among all Canadians and regions.

There is nothing on housing, except, of course, for the NDP money that we fought for last time.

There is nothing to help aboriginal concerns in terms of on reserve housing, which we have just heard about from my colleague from Vancouver Island North. There is nothing in terms of urban aboriginal housing. In fact, there is nothing that really gets at the very root causes of serious problems in our communities today.

On the environment, what does the government do, besides all the mess around Kyoto? Nothing. There is nothing in terms of the EnerGuide program.

Let me finish by saying that there is nothing in terms of child care. There is nothing in terms of health care. The issues that matter to Canadians are not addressed by the government and it is high time they were. We will continue to fight with everything we have to make minority Parliament work.

Budget Implementation Act, 2006Government Orders

3:55 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

Questions and comments. The hon. member for Tobique—Mactaquac.

Budget Implementation Act, 2006Government Orders

3:55 p.m.

Conservative

Mike Allen Conservative Tobique—Mactaquac, NB

Mr. Speaker, I appreciated the hon. member's comments and would like to pick up on the last part of her speech, in which she talked about the environment. Certainly over the last number of years we have seen our emissions go up by 35%. Canada went into Kyoto without a plan, and every time we go into one of these things without a plan, things happen. We have not had integration between our energy policy and our environment policy, which is something we need to work toward. We heard in our natural resources committee this morning that the only way we could meet Kyoto would be to buy our way there.

Does the member not think that it is better to spend money on programs and technology right here in Canada, such as agriculture and alternative fuels? Does she not think that EnerGuide needs to be reviewed? Does she not think that any program where 50% of the money spent does not go to the end user should be looked at?

Budget Implementation Act, 2006Government Orders

3:55 p.m.

NDP

Judy Wasylycia-Leis NDP Winnipeg North, MB

Mr. Speaker, this is a very important question, because the environment and climate change are top of mind for most Canadians and of course they are very much under debate in the House today.

Obviously we were very concerned about the Liberals' approach to climate change when they were in government. We criticized them constantly for having no targets and no timetable and for in fact playing games with the numbers around credits and not putting a serious plan on the table. There was no plan under the Liberals.

That does not make it any more palatable for us to support a government that has no plan, no target, no timetable and no commitment to the climate change issue itself. The government does not have an understanding of greenhouse gas emissions. It has no ability to in fact realize that we are dealing with the health and survival of our planet. We have a Minister of the Environment who is prepared to throw Kyoto out the window and come up with some other alternative program that is not being funded by other partners in that scenario, such as the United States, as we heard today in question period.

Let me suggest to the member that the EnerGuide program was one of those examples of a program that was cost effective, modest and doing something very effective.

I will conclude by simply reading a very short statement from a constituent of mine, Dale Klassen, who said:

My question is why there would be a time limit for this program? Energy efficiency is just as valuable now as it would have been within the 18 month limit, so why would the federal government take away this support from Canadians? I was not able to afford the upgrades that were recommended to me when I had the energy efficiency evaluation done, but have now insulated my basement and also wish to add attic insulation and some new windows.

My constituent cannot get any support.

Budget Implementation Act, 2006Government Orders

3:55 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

I apologize to the hon. member, but I do see other members who are interested in asking questions.

The hon. member for London—Fanshawe.

Budget Implementation Act, 2006Government Orders

3:55 p.m.

NDP

Irene Mathyssen NDP London—Fanshawe, ON

Mr. Speaker, I would like to ask the hon. member about a portion of the budget bill that did not become apparent until it reached the finance committee.

The current system for mortgage insurance managed by CMHC allows families that cannot afford a down payment to secure money through CMHC. Likewise, community groups can access money that permits them to build and maintain supportive and special needs housing.

Would the hon. member comment on the Conservative plan to open up mortgage insurance to the private sector and jeopardize these families and community groups?

Budget Implementation Act, 2006Government Orders

3:55 p.m.

NDP

Judy Wasylycia-Leis NDP Winnipeg North, MB

Mr. Speaker, that is a very important part of this budget package that has been largely invisible in the public domain. I am glad that the member for London—Fanshawe has raised this question, because in fact it is something the Conservative government has tried to slip through and it has slipped through. It is exactly the same agenda item of the Liberals. Every time we turn around, the Conservatives are there trying to act just like Liberals. On top of that, the Bloc so totally supported the Liberals and the Conservatives on this issue. They decided it was okay to open the door wide for competition, for other mortgage insurers, in regard to what is currently handled by CMHC.

We have nothing against competition. What we asked for was some controls to be put in place, some oversight body, something to ensure that in fact these mortgage insurers would not run in, take the cream of the crop and abandon communities that desperately need the services of CMHC, not only in terms of mortgage insurance but in terms of the money that gets plowed back into the system.

Let me say that in fact we tried to amend this at committee. We had no support from the Bloc. We had one or two supporters from the Liberals and no support from the Conservatives. The government has now proceeded with an agenda that could be very hurtful to Canadians and our dream of having a national housing policy.

Budget Implementation Act, 2006Government Orders

4 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, I want first to thank the hon. member for Winnipeg North for her speech on the budget. This is only a discussion that will not lead to a vote this evening. We know all the confusion that reigned in the House of Commons this morning.

The Bloc wants to persuade anyone who will listen that the NDP unanimously supports the Conservative budget. As the New Democratic Party whip, I can assure you that it opposes the Conservative budget and Bill C-13.

As a result of this morning's confusion, there was no real vote. The bill was simply passed. But look at the past, at what has happened in the House of Commons with the budget implementation bill. Throughout the entire process, the Bloc Québécois has voted with the Conservatives. At the end of the Minister of Finance’s budget speech, the leader of the Bloc Québécois left immediately in order to announce that his party would be in favour. We, for our part, voted against this bill at second reading as well as in committee, while the Bloc voted in favour.

They brag that the NDP will not be able to say a word against the Conservative budget any longer because it voted unanimously in favour. I can assure all Canadians that we opposed the Conservative budget, and still do, because it does not reflect the needs of Canadians.

In forming a minority government, the Conservatives would not have been able to get a budget passed like the one they tabled in the House of Commons without the support of the Bloc Québécois. The Bloc can do what it wants, and that is precisely what it did.

We were accused under the Liberal government of forgetting about the unemployed. I could say that that is what this budget does: it forgets about the unemployed. Under the Liberals, we managed to get Bill C-48, which made changes to the budget. We all know what these changes were: $1.6 billion for housing, $1.5 billion to reduce tuition expenses, $900 million for public transit in order to help environmentally-friendly energy, $800 million for transport, $100 million for improvements, and $500 million for foreign aid. In all, that was $4.5 billion.

Even if the Bloc Québécois did not like the Liberals, at least it could have voted for something in keeping with its values. I have spoken with former Bloc members who were not re-elected. They told me that they would have liked to vote for that budget but were told to vote against it. That is their business. But the Bloc cannot say today that we voted with the Conservatives during the confusion in the House of Commons this morning, implying that we were in favour of the Conservative bill.

We must remember that the Conservatives slashed $20 million from small craft harbours. Yesterday in the House of Commons, we debated a unanimous recommendation of the Standing Committee on Fisheries and Oceans that $15 million should be added to the budgets for small craft harbours. The government, for its part, just announced that it has cut $20 million from these budgets.

Furthermore, $3.6 billion will not be spent on daycares in Canada, but the government will give 1,200 taxable dollars to people who have children under six. Some people, depending on their income, might get even less money than they would have otherwise. There was a plan in place, a plan to help Canadian daycares.

For students, the budget offers a whole lot of nothing. The chairperson of the Canadian Federation of Students said, and I quote, “Tinkering around the edges of the tax system is not going to increase access to college and university”.

That is what George Soule, National Chairperson of the Canadian Federation of Students, said.

This government should be restoring the billions of dollars that were cut from post-secondary education transfers during the past decade so that tuition fees can be reduced.

That happened under the Liberals.

He continued:

For many students the changes will have no impact. A lot of students don't even earn enough taxable income to use all of their existing tax credits.

In this budget, the government decided to give tax credits. Students are usually at university, not at work. They do not earn a lot of money and tax credits will be of no use to them. Students are mostly young people, our children, who go to university and come out $40,000 in debt. The previous government told students that they would not be the same as companies.

In this budget, the government will grant corporations a $10 billion tax reduction over the next few years. Students are being told that they may not declare bankruptcy in the next ten years. That is how we are going to treat students, our children. Big corporations that are capable of paying their CEOs multi-million dollar salaries are going to get a $10 billion tax reduction. And on the other hand, we are going to send students into debt. We are going to ensure that students have a difficult future. We are going to ensure that when students go to the bank to borrow, their credit will not be good. That means that they will not be able to have cars, and these young people just starting out in life will not be able to have homes.

I cannot count the students who come to our offices to see us and tell us these things! They can no longer even borrow, because they are incapable of repaying their debts. Their fathers and mothers know this. As my colleague, the Bloc Québécois member, said, the fathers know. That is true, but the child also knows, as does the young student. A young woman from Paquetville told me that she had gone to school, she had gone into debt, and she was now a young woman on the labour market who was unable to repay her debt, and so today she had debt recovery proceedings brought against her. She also said that she was unable to buy a new car, or even a car to get to work, she was unable to start out in life and buy a house, because governments have passed laws that have these young people in a straightjacket. In 1994, the previous government made spending cuts that affected students. It is these young people, our children, who are paying the price.

The Conservatives’ budget does not help students. The solution is not to cut income tax for students. What would help them is tuition fees. There is absolutely nothing for that.

Let us think about the Kyoto protocol. This country joined with the other countries of the world in Kyoto to ratify an agreement on the environment. It is a shame to see that we are going to back out of it.

There are “made in Canada” effects. In the Baie des Chaleurs, storms like we have never seen before take our docks and smash everything in their path. In Berestford, we had never seen a winter storm pile the ice up 70 feet. This was the year the Canada games were held in New Brunswick, in Bathurst and Campbellton. It virtually erected a monument. It was unbelievable!

For the government to withdraw from the Kyoto protocol and for there to be absolutely nothing in the budget to help the environment, this is totally unacceptable.

And yet this government is doing an about-face and, with no problem at all, giving big corporations $10 billion. With another about-face, according to a pretty credible rumour, it is going to buy American planes for National Defence. And we are also going to have them repaired in the United States. I find myself wondering what kind of government is in power at present. I am glad that it has a minority and not a majority. Imagine, this government is bartering our country’s jobs, when in some regions the unemployment rate is 20%.

There is nothing for official languages in this budget, and nothing for employment insurance. When we examine it closely, we find that there is nothing in it for ordinary people. We have to hope that Canadians will understand that this budget and this government are doing nothing for ordinary people, and that they will not support this government’s budget.

Budget Implementation Act, 2006Government Orders

4:10 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Mr. Speaker, I listened quite intently to the member's speech. I think there were a couple of items where he was not quite accurate, certainly not the least of which are the investments we have made for low income Canadians, with 645,000 low income Canadians coming off the tax roll. That is working for people and responding to Canadian families.

The member also talked about post-secondary education and support for it. He talked about tax credits. It is of interest to me that students can now earn up to $19,000 tax free. That is incentive for students to work. I had a couple of jobs, while I was at university, including while I was studying.

However, the other part of post-secondary education is that it is not just academics. I am very proud of the measures we have put in place with respect to apprenticeships, encouraging employers to hire apprentices through support and then supporting apprentices through the program. That will train people to get a trade. It will get them out of low income jobs and into higher income jobs. I am very proud of it. I would like to hear the member's comments on that program.

Budget Implementation Act, 2006Government Orders

4:10 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, if the member is suggesting that he worked and made $19,000 every summer, maybe that was in Alberta working for an oil company. I can promise him that I am right on when I say that the people working in the fish plant at $7 an hour do not make $19,000 in that number of weeks.

There is nothing in the budget for employment insurance to help working people who lose their jobs. There is nothing to help the people who go for training programs. If they work for a company, as mechanics or electricians for instance, and then get released to go for more learning, there is a one week waiting period for employment insurance. They lose wages for one week so they can learn, so they can keep their jobs and so they can better themselves. Instead the government takes the money from employment insurance, which is paid into by the workers, and puts it into its budget, balances its budget and has a zero deficit on the back of workers who lost their jobs.

There is nothing in the budget to help workers. That money belongs to them. The government is taking it away from them without asking them.

Budget Implementation Act, 2006Government Orders

4:10 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, I want to make a couple of comments with regard to post-secondary as well.

When I talk to students, I often talk about the cost of an education. My conclusion to them is usually the first thing I tell them, and that is that they cannot afford not to go to post-secondary. The spread in the compensation of a high school grad compared to a college or a university grad is about 19% for the rest of their lives.

When they talk about students coming out with $40,000 in debt, I understand some people do. However, I also know that 95% of students pay their loans off on time. I also know that most students are not even qualified to receive student loans because of their family incomes. I also know that if the children do not have taxable incomes, their parents get to claim education expenses and tuition to reduce their taxes. Are they making no contribution to this education? I also know the student is off for four months a year. Are they making no money whatsoever, even cutting lawns or whatever it is, to make a contribution?

I was there too. I used to run a computer at night to raise a few dollars for food. Sometimes we just have to put a little into it. It is not that there are absolutely no benefits on the gross amount of the expenses. The member should be straight with students and tell them that they cannot afford not to go to post-secondary.

Budget Implementation Act, 2006Government Orders

4:15 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, I do not think I ever told a student not to go to university. They should go to university or college and get the education they need to work. What I am saying to the government is it is not here to put them into the debt, and that is happening. If cutting lawns makes $19,000 in four months, I wish I had a job like that.

These students went into debt because of the Liberals. That is when student debt went up. It is a shame that the Conservative government has done nothing to correct it. The president of the Canadian Federation of Students condemned the government, not just the new government, but the government before.

Maybe members in the House of Commons have universities in their home towns. If students do not have universities in their home towns, if they have to pay for rent, food and everything else, their debt is $40,000. It is $10,000 a year, and I am sure of what I am saying.

Budget Implementation Act, 2006Government Orders

4:15 p.m.

Conservative

Rick Dykstra Conservative St. Catharines, ON

Mr. Speaker, I appreciate the opportunity to speak to the 2006-07 federal budget. I thought I would be speaking to it at third reading, but I am even more pleased to speak to it during this take note debate.

Coming from the riding of St. Catharines, or more commonly known as “The Garden City”, this year's budget theme, “Turning a New Leaf”, along with the budget, is perfectly suited for my community.

Four weeks ago, I participated in a Canada-Ontario affordable housing announcement in my riding entitled “Bethlehem Projects”. Federal, provincial and municipal officials were there along with 200 members of the public. We attended the groundbreaking. The event was an excellent one. It is a good partnership and project for my community. It will provide the needed affordable housing in St. Catharines, in the Niagara region.

After the event, middle class folks literally lined up to speak to me about the positive aspects of the budget. That is who the budget addresses. The budget presents example after example of benefits for my community and our country.

Let us take child care, for example. An investment of over $3.7 billion over two years for the universal child care benefit will provide all families with $1,200 per year for each child under the age of six. In St. Catharines that means over 8,700 children and their parents will get a benefit from that.

We will invest in creating new child care spaces. The budget allocates $250 million, beginning in 2007, to create real child care spaces as part of Canada's universal child care program.

We will provide a physical fitness tax credit of up $500 to cover registration fees for children's sports. One might wonder how many children are under the age of 16 in St. Catherines. Twenty-three thousand five hundred children and their parents will benefit from this.

The previous member spoke about post-secondary education. Let me inform him in a little more detail what exactly that means. The budget provides $370 million in new investments to foster excellence and accessibility in our colleges and universities. Here are some numbers.

At Brock University in the Niagara region, right up on the hill from the St. Catharines riding, 17,000 students have the potential to benefit from this. At McMaster University, 20,000 students will benefit. At the University of Toronto, 73,000 will benefit. In Quebec, 2,200 students at Bishop's, 31,000 at Concordia, 33,000 at McGill and 36,000 at Laval will benefit. The numbers keep adding up.

There is also a new textbook tax credit which will benefit approximately 1.9 million Canadian students. It may seem small, but it is the right intent and it will provide over $260 million over two years to these students.

We are going to expand the eligibility for the Canada student loans program by reducing the parental contribution required. It is estimated that such an improvement will allow over 30,000 additional students to gain access to student assistance. That is two or three universities when we look at the numbers. It will also allow 25,000 current student borrowers the opportunity to increase the amount of loan they receive. That is not to say they will not have to pay it back, but it will ensure they have the opportunity to attend post-secondary education.

We also address security for our borders in the budget. We have said that we will provide over 1,000 new RCMP officers and federal prosecutors to enhance law enforcement priorities such as drugs, corruption and border security. That is especially important from my perspective. I live very close to the border. A number of border communities surround St. Catharines: Niagara Falls, New York, Lewiston, Buffalo.

It is about security. It is about saying that we are ready and willing to make the investment that was not made over the past 13 years. This speaks to exactly why we should be moving forward on this issue with respect to the budget.

The budget deals with two very specific issues on crime. The first is a $20 million commitment to communities to prevent youth crime. This is about prevention. Ideally, we need to put tools and textbooks into the hands of our young people, not guns and not gangs; tools that will help them realize that they can grow up to lead productive lives and participate in the democracy of this country.

We have also set aside $26 million in this budget to implement programs and to provide better services for victims of crime. They should not be last on the list when it comes to crime and the results of criminal activity. They should be first. We will ensure they have the money necessary to attend court proceedings. No matter what happens in court, we do not want it to cost the victims of those crimes money to attend. We want to ensure they are not shunned, that they are listened to and that their testimony is acted upon.

We are committed to implementing a 10 year plan to strengthen health care. Transfers for health care will rise by 6% this year and 6% next year. As part of that plan, the government has already provided $5.5 billion for the wait time reduction transfer to help ensure that Canadians will receive the health care they need when they need it. We will invest over $52 million per year for the next five years to improve screening, for prevention and research activities and to help coordinate efforts with the provinces and with cancer care advocacy groups throughout the country.

We will encourage more charitable giving from within each and every community in the country. We will eliminate the capital gains tax on donations of publicly listed securities to charities effective immediately. This will help create a donations pool of about $300 million annually.

I would like to quote from a letter I received almost immediately after the budget was introduced. It was written by Liz Palmieri, the executive director of the Niagara Community Foundation. She says:

On behalf of the Board of Directors of the Niagara Community Foundation I want to thank your government for including in the budget the announcement regarding gifts of securities to charities.

The charitable community across Canada has been advocating, for a number of years for a change in the treatment of these types of donations. In the recent election, the platforms of...your party...included provisions for a change and we were pleased to see this change being implemented on June 2.

We said that we would do it in our platform and we did it in the budget.

I want to mention a few charities: the John Howard Society of Niagara; the Niagara Ina Grafton Gage Foundation; the Niagara Peninsula Children's Centre; and, the Rotary Club of St. Catharines, Lakeshore, Charitable Trust are all thankful and will all benefit from the ability that this announcement in the budget makes.

Yes, there are tax reductions in this budget, a permanent legislative reduction in the lowest tax rate to 15.5% from 16% as of July 1, 2006. The budget also confirms that, starting on January 1, 2005 until June 2006, the lowest tax rate will be 15%.

The new Canada employment credit will provide relief on the first $1,000 of employment income in recognition of expenses incurred by employees across the country. It means that millions of employees will now have a reduction they did not have prior to this budget.

The apprentices will benefit from the budget. The tool deduction and the Canada employment credit will provide tax relief to about 700,000 employed trades people. Our government has pledged to invest more than $500 million over the next two years in the apprenticeship job creation tax credit and apprenticeship incentive grant, which will benefit over 100,000 apprentices.

I have enjoyed my experience on the finance committee thus far in the 39th Parliament. Although we have had our discussions to and fro, as the member for Markham—Unionville knows, we have, on a regular basis, debated the issue of tax reduction.

We have been sitting for a couple of months. We have gone through the estimates clause by clause to see what benefits the budget contains for Canadians. It was interesting to find, after a question was posed by the member for Markham—Unionville, that if we had not had the 16% to 15.5% in this budget, which was unanimously agreed to at the third reading stage this morning because, I am happy to say, the Liberals finally understood that if they did not agree with the budget and if the budget had not passed then they would be voting against their 16% to 15% reduction, on which they so proudly campaigned in the last election. My hat is off to the Liberals for supporting the budget this morning because they supported their budget cuts.

We could talk this afternoon about non-legislated boondoggles, sponsorship, gun registry and those cost overruns but we need to talk about the point my colleague, the member for Peterborough, made at committee when he said that the burden of tax on the people needs to go down, not up. The budget actually does that. It provides $20 billion for middle class, for lower middle class folks and for those in the lower income brackets who need tax relief. They will get it in spades because it is more tax relief than we saw in the last four budgets combined.

While I applaud the efforts across the way to reduce taxes in 2005, those reductions were not included in the 2005 budget. They were done through a ways and means motion that never carried into anything that was in legislation. It came a year too late and, I might say, a dollar short from what this budget actually provides for the people of this country and the people in my community.

The budget, when implemented, will see 655,000 individuals freed from the chains of paying federal income tax. This will be seniors, low income earners, middle class earners and anyone who actually pays GST. Anyone who picks up a product anywhere that is taxed by GST will, after July 1, pay less than they are paying today.

I want to reinforce to the House that the budget is good for Canadians and it is good for the folks in my community of St. Catharines.

I want to take a page out of what has happened over the past, let us say since the end of November until today. Leading up to the last election we made commitments to Canadians, as I made commitments to the people in my community, and we told Canadians that if we were to become government we would actually follow through on our commitments. This budget proves that we have done that.

If we were to put the campaign document and this year's federal budget side by side, we would find they agree with each other. The budget enforces our campaign commitment. This sets the stage for a renewed relationship with the 308 ridings that we represent here in Ottawa. It tells Canadians that we do what we say we will do, that we will be accountable and that we will implement the commitments we made before we were elected.

Budget Implementation Act, 2006Government Orders

4:30 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, I am not much of a poker player but if I were I would certainly want to play with that member. He gives his hand away every time, especially when we are talking about taxes.

I want to ask him an important question concerning health care. One of the items in the throne speech had to do with guaranteed wait times for health care. In the last Parliament, the Government of Canada met with the provinces and agreed upon establishing benchmarks for wait times. The Conservative Party platform, as one of the five points included in the throne speech, included guaranteed wait times. This involves the cost of transferring patients and their families to other provinces or down to the United States. I think all members would agree that this is an important and significant investment to make.

The member talked about health care increases of 6%, which is true in the budget, but 6% was the increase scheduled under the $42 billion health accord negotiated by the previous government. The Minister of Health has said publicly that moneys for the wait time guarantees is adequately covered in the $42 billion accord. This is news to the provinces and to this House.

I want to know how the Conservative Party can promise to do something that has already been done.

Budget Implementation Act, 2006Government Orders

4:35 p.m.

Conservative

Rick Dykstra Conservative St. Catharines, ON

Mr. Speaker, I do not blame him for one minute for trying to defend the actions of his government over the last 13 years. However, I would like to point out a couple of things.

First, he is indeed correct. We have five priorities and we are acting on all five of them. As we saw this morning, some are easier to get through the House than others. Health care is a priority for all Canadians but it is not going to be solved with the simple snap of the fingers. It will take negotiations and meetings with provincial leaders and, without question, it will take money.

I would like to draw a little analogy for the member to give him an understanding of our commitment to ensuring we are moving forward. Thirteen years equals about 4,745 days, which is approximately how long the Liberals were in government. We have been in government for about 120 days and we have acted to the point where this health care priority with respect to wait times is on the agenda. It is one of the five priorities that we will be implementing. If we put 120 days next to 4,745 days, I think the member would have to say that we are doing a pretty good job.

Budget Implementation Act, 2006Government Orders

4:35 p.m.

NDP

Irene Mathyssen NDP London—Fanshawe, ON

Mr. Speaker, I was quite interested in what the member for St. Catharines had to say. In all of his eulogizing about the great benefits this budget has for students, how can he explain that there was no money set aside for grants and that all of the budget in terms of students is directed at ways to help them increase their debt?

Could he also explain to me how $80 for a textbook will help when $80 is about the cost of one textbook and students require many textbooks?

Budget Implementation Act, 2006Government Orders

4:35 p.m.

Conservative

Rick Dykstra Conservative St. Catharines, ON

Mr. Speaker, as the member for London—Fanshawe knows, part of the reason we are in the situation we are in with respect to the issue surrounding the cost of education for students goes back a few years, to 1994, when there were significant transfer cuts from the former federal government to what was then the provincial NDP government. If anyone can remember the days of the NDP provincial government from 1990 to 1995, students were crying on the steps of Queen's Park on how they were going to afford an education.

While the member may disagree with assisting students through the means of a textbook credit by ensuring that students are not excluded from an opportunity to get loans or grants to attend universities, I would simply say to the member that this budget is a step in the right direction, in a positive direction, for the hundreds of thousands of students across this country who are attending universities.

Budget Implementation Act, 2006Government Orders

4:35 p.m.

Liberal

Judy Sgro Liberal York West, ON

Mr. Speaker, I am glad to have an opportunity to share some information and ideas with the hon. member. He sits on the finance committee and I know he will certainly enjoy the challenges that he is going to face in order to keep up with the commitments that his government has made.

You talked in particular about crime prevention grants. I have to tell you that coming from an important riding in Toronto the investment in those areas is extremely important. I know that you probably share that same interest and I would certainly hope that the government does as we move forward in looking at how we are going to rationalize some of the things that are on the table.

We do not have a child care program, other than $1,200 a year that may apply to some. It is not going to mean much in my riding. How do we balance the issue of eliminating what was going to be an effective child care program versus $280 million more being put in the budget for prisons?

It would seem to me that we should be doing more in the area of crime prevention and investing in our young people, so that we do not end up with them going the wrong way and ending up in prisons. That includes ensuring they have opportunities for post-secondary education.

I would hope that in the future, while on the finance committee, with all of the different priorities in looking for a balanced budget, you will keep those issues in mind as you move forward.

Budget Implementation Act, 2006Government Orders

4:40 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

I do not sit on the finance committee, but I am sure the hon. member will take that advice.

The hon. member for St. Catharines.

Budget Implementation Act, 2006Government Orders

4:40 p.m.

Conservative

Rick Dykstra Conservative St. Catharines, ON

Mr. Speaker, I know the hon. member has subbed in a couple of times on the finance committee and I have certainly appreciated her comments in committee.

In fact, she made the inference to ensuring that we have a justice system that ensures that criminals who do serious crimes are actually going to spend the necessary time in jail to pay for the crimes they have committed. I am not sure what that necessarily has to do with the child care program.

I would like to think that the investment being made within the context of this budget is going to address those issues, that being the payment that she spoke about to parents, so that it expands their choice in terms of child care and the investment that is going to be made to ensure we are building more child care spaces in the country in each of the ridings.

The member makes a good point that there are issues within her riding in the Toronto area as there are issues in my riding in the St. Catharines area. We want to ensure the investment is in the budget so that young people have the opportunity to work toward learning, whether it be through a textbook or a trade, and that their future is a positive one, not one that would lead to join a gang and learn how to shoot a gun. We need to all work together, all 308 ridings in this country, to ensure that does happen.

Budget Implementation Act, 2006Government Orders

4:40 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, I rise on a point of order. It occurs to me that during his speech the member raised a very good argument about the income tax rates of 15% and 16%. I wonder if he would care to table his income tax return and if he did not pay 16% last year on the first level, I would ask that he pay it now.

Budget Implementation Act, 2006Government Orders

4:40 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

That does not sound like a point of order. There are still a couple of minutes left in questions and comments.

The hon. member for Burlington.

Budget Implementation Act, 2006Government Orders

4:40 p.m.

Conservative

Mike Wallace Conservative Burlington, ON

Mr. Speaker, I appreciated the speech by the member for St. Catharines. He talked about income taxes, but he also talked about the reduction in the GST. I know that the area of St. Catharines is a growing community with people moving there and lots of development happening.

I was wondering what his view and the view of his residents is on the reduction of the GST when it comes to making major purchases such as homes and cars which I know are important industries in St. Catharines.

Budget Implementation Act, 2006Government Orders

4:40 p.m.

Conservative

Rick Dykstra Conservative St. Catharines, ON

Mr. Speaker, certainly, a lot of visitors who drive down the QEW from Burlington to St. Catharines have nothing but glowing things to say about their member of Parliament for Burlington. Not only is he doing a great job here in the House, the people of Burlington are telling me in St. Catharines he is doing a great job for them.

The GST cut which the member speaks about is one that means a lot in the riding of St. Catharines with respect to vehicles. That is very true. General Motors operates in the city of St. Catharines. There is no doubt that the average saving that families or individuals would have when they purchase a new General Motors vehicle in St. Catharines or anywhere in this country is going to be significant when they make that purchase after July 1.

Budget Implementation Act, 2006Government Orders

4:40 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

Order, please. It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Sault Ste. Marie, passports; the hon. member for Windsor West, tourism industry.