Mr. Speaker, the member for Kings—Hants has once again raised in the House the issue with respect to the tourism industry. My colleague in the Liberal Party would like to know whether the government will keep the visitor rebate program, which is scheduled to be eliminated on April 1.
In budget 2006 Canada's new government committed to identify $1 billion in savings from programs and activities that were no longer effective and did not provide value for money. In fulfillment of this commitment, on September 25, 2006, we introduced a $1 billion expenditure restraint initiative. The purpose of this initiative was to ensure that Canadians hard-earned tax dollars were invested responsibly in effective programs that would meet the priorities of Canadians. Responsible spending is a cornerstone of accountable government.
As part of this $1 billion expenditure restraint initiative, the government announced the elimination of the visitor rebate program effective April 1.
The visitor rebate program provides relief from goods and services and harmonized sales taxes to non-residents who visit Canada. The relief is for tax paid in respect of goods exported from Canada, short term accommodation in Canada, the accommodation portion of tour packages and foreign conventions held in Canada.
Tourists visit our country every year because of its natural beauty, the diversity of our people, the diversity of our regions and climate and the comfort of knowing they can move around freely and securely, and not because of the rebate.
Canada's new government is committed to ensuring that programs focus on results for money, and the current visitor rebate program does not make the grade. If the hon. member does not like the expertise that I provide to the House, I will quote Don Drummond, the TD Bank chief economist. He said:
—certain programs aren't very effective...A good example is the rebate program for tourists who pay the GST. Despite considerable expenditures to make tourists aware they can claim the rebate, fewer than 3 per cent do so.
The BDO Dunwoody CEO/Business Leader survey came back with this finding. It said that leaders of small, medium and large Canadian businesses have “volunteered enthusiasm for ending the GST rebate for visitors”.
That said, the government has heard representations from members of the tourism industry concerning this measure. In fact, the finance committee, of which I am a member, has heard representations from this industry. These representations are being taken into account as the government considers how best to promote tourism in Canada.
I am quite sure the member opposite knows that these representations are being taken into account and would like to take credit for the responsiveness of the government. Of course he cannot do that because he is not a member of the government. The government will respond to these concerns.
We recognize the contribution that tourist dollars make to the Canadian economy. This is why we will continue to support Canada's tourism industry and ensure that it remains internationally competitive.
Currently, Canadians should know that the government invests about $350 million a year directly into the tourism industry through a variety of means.