House of Commons Hansard #169 of the 39th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was million.

Topics

Third ReadingBudget Implementation Act, 2007Government Orders

12:05 p.m.

Conservative

The Acting Speaker Conservative Royal Galipeau

Resuming debate. The hon. member for Kildonan—St. Paul.

The hon. member for West Nova is rising on a point of order.

Third ReadingBudget Implementation Act, 2007Government Orders

12:05 p.m.

Liberal

Robert Thibault Liberal West Nova, NS

Mr. Speaker, we are discussing a very important matter here. As you have heard, there is great consternation in Atlantic Canada and people are nervous about this betrayal on the accord. I think it is a very important matter and I would ask you, Mr. Speaker, to seek quorum.

Third ReadingBudget Implementation Act, 2007Government Orders

12:05 p.m.

Conservative

The Acting Speaker Conservative Royal Galipeau

I thank the hon. member for West Nova. We have quorum.

Resuming debate. The hon. member for Kildonan--St. Paul.

Third ReadingBudget Implementation Act, 2007Government Orders

12:10 p.m.

Conservative

Joy Smith Conservative Kildonan—St. Paul, MB

Mr. Speaker, I rise today to speak on this budget that is so important to Canada and so important to my riding of Kildonan—St. Paul and indeed to Manitobans.

Our budget will reduce the tax burdens on working families, and this budget will protect our environment and modernize our health care system. This is a very important budget that has to be passed by the end of this month. I must say that this government will provide equal treatment to Canadians and this is what this budget delivers.

Through budget 2007 we are providing the provinces and territories with well over $39 billion in additional funding to restore fiscal balance in Canada. We are returning equalization to our principled, formula-based program. I would like to take a moment to talk about how this does apply to my province of Manitoba.

Restoring the fiscal balance will provide Manitobans with $3.1 billion in 2007-08 and this includes $1.8 billion under the new equalization system. It will provide Manitobans with $807 million under the Canada health transfer. It will also provide Manitobans with $350 million for Canada social transfers including additional funding for post-secondary education and child care, and $83 million for infrastructure.

I would like to ask my fellow members of Parliament and the opposition to support Manitoba. I would encourage them to listen to Manitobans. Even the premier of Manitoba said this federal budget contains good news for our province and I would encourage the NDP members from Manitoba to do what is right for the people of Manitoba and support this important budget.

The NDP premier of Manitoba said, “So, I actually think the compromise is supportable by Manitoba. I think that it is difficult to get 13 separate leaders of provinces to agree on a perfect solution. And I think the consensus in the report that was produced by the former Liberal government, acted upon by [the] Prime Minister, is the appropriate way to go. And it treats hydro at least equally to oil and gas. And from that perspective I disagree with the member from Nova Scotia and his position, and I agree with [the] Prime Minister in his position”.

Here in the House we have NDP members of Parliament who are opposing this budget and complaining about it. The fact of the matter is the NDP premier of our province fully supports it. It is obvious that we have to look at what this does for our province.

We believe that paying down the national debt is important for Canadians and our government is lowering our national mortgage by $9.2 billion on top of the $13.2 billion we have put against the debt since elected. This is equivalent to $700 in debt relief for every individual Canadian. Through our tax back guarantee, lower debt will mean lower interest payments which will mean lower taxes. This is a good start because we believe as a government that Canadians pay too much tax.

In my riding of Kildonan—St. Paul parents struggle daily with the challenge of raising a family. With higher costs of living, housing and energy, it is not easy. We need to make it more affordable for people to have children and to raise them. As a result we have created a working families tax plan and that is important to families all across our nation.

It has four components. First, for families with children it includes a brand new $2,000 per child tax credit for children under age 18. That will help families get ahead. This will save families in Manitoba $54.1 million.

Second, we are ending the marriage penalty through an increase of the spousal and dependant amounts to the same level as the basic personal amount to provide up to $209 of tax relief to a supporting spouse or single taxpayer supporting a child or relative, saving Manitoba residents an estimated $8.4 million. This is a lot of money.

Third, we are helping parents save for their children's education by strengthening the RESP program. As the mother of six children all of whom have gone through university, I know what this means to Canadian families and to Manitobans.

Fourth, we are helping seniors by raising the age limit for RPPs and RRSPs to 71 from 69 years to save Manitoban taxpayers $1 million. This is getting direct results for hard-working Canadians.

Welfare is a difficult situation many Canadians face. Too many people feel trapped on welfare. A single mother with one child who takes a low income job can lose almost 80 cents of each dollar she earns because of higher taxes and reduced benefits for drug and dental coverage.

To help people get over this welfare wall, we are investing more than $550 million a year to establish a working income tax benefit. This measure will help remove barriers that discourage people from enjoying the dignity and independence that comes with a job. This new working income tax benefit of up to $500 for individuals and $1,000 for families will reward work. It will strengthen incentives to work and will benefit Manitoba workers to the tune of $18.9 million.

I would like to remind the member for Winnipeg North what she said about the working income tax benefit. She said:

It's an important program that goes in the right direction.

I would hope that this means she will be supporting this initiative and supporting the budget. This budget is very important. It has to be passed by the end of the month or a lot of people will miss out.

The budget includes a new long term plan for infrastructure that delivers $33 billion over the next seven years. There is an estimated $17.6 billion in base funding which consists of the gas tax fund and the increase from 57.1% to 100% in the rebate that municipalities receive for the goods and services tax they paid in 2007-08.

Base funding for Manitoba is forecast to be $46 million. The Government of Canada is providing $26.8 million of gas tax funding for municipalities in Manitoba in 2007-08. This is very important to Manitobans. There have been so many plans in terms of the infrastructure advantage from this government that really benefit Manitoba.

Manitoba will benefit from the enriched $1 billion Asia-Pacific gateway and corridor initiative. The Red River floodway is very important to the province of Manitoba and in preventing the flooding of the city of Winnipeg. There is a recent federal commitment of $170.5 million to complete the expansion of the Red River floodway. This will enhance the level of protection enjoyed by the residents of the city of Winnipeg. Members will remember that there was a very big flood a few years back which threatened the whole city.

Preserving and protecting our environment is a priority for our government. We have made tremendous strides in this budget.

In order to protect Lake Winnipeg, the Red River and other Manitoba rivers we are establishing a new national water strategy. It is all centred on the budget that needs to be passed by the end of June. This national water strategy will improve municipal sewer and water facilities.

The new Canada ecotrust for clean air and climate change will provide support to those provinces and territories that identify major projects, as we have done in Manitoba, that will result in real reductions in greenhouse gas emissions and air pollutants. Canada's new government intends to provide Manitoba with almost $54 million through this initiative. Water quality in Lake Winnipeg has deteriorated. This budget will provide $7 million over the next two years to Environment Canada in our province.

Unless Bill C-52, the budget implementation act, is passed in the House of Commons and Senate by June 30, the critical funding for Manitoba and for my constituency will be lost.

When elementary schools, such as Bird's Hill School or Maple Leaf School in my riding, write letters about their concern for the environment, how would I explain to students, our country's future leaders, that $54 million to reduce greenhouse gas emissions and air pollution was lost because opposition parties in the House of Commons voted against the bill? At my next seniors round table discussion at Donwood South or Carriage House North when one of my constituents asks why parliamentarians gave up $27.9 million to help reduce patient wait times in Manitoba, how would I explain that?

Without that funding, how do I explain that we are working toward ensuring that all Canadians receive essential medical treatment within clinically acceptable wait times? And what about the over $21 million for labour market training? All this money will be lost. It is critical that the games in this House of Commons stop and that the opposition parties get on board.

The population in my province of Manitoba is waiting for this budget to pass. They look forward to the passage of this budget. The future of this budget is in the hands of parliamentarians here today on Parliament Hill. It behooves us to be responsible and pass this budget and see that Manitobans get that money.

Third ReadingBudget Implementation Act, 2007Government Orders

12:20 p.m.

NDP

Dennis Bevington NDP Western Arctic, NT

Mr. Speaker, I rise to speak in this shortened debate. I guess I am privileged to speak to the budget, no thanks to the Bloc members. Over the years when it has been in their interests, they have always spoken against closure and here they are supporting closure. I find that to be rather self-centred.

Yesterday I was amused to listen to the hon. member for Fort McMurray—Athabasca castigate me for supporting political games on the budget. We should consider that against what the Conservatives have been pulling in the House, particularly their little stunt last Friday.

If the member is looking for examples of bad news, I suggest he should talk about the Conservatives' treatment of Atlantic Canada. He might also talk about his support for the Conservative climate change plan which exempts the tar sands in his own riding from meeting the air emission standards that are so desperately needed in that part of the country. That to me is a real example of how a member is not supporting his constituency. The hon. member's statement yesterday was like much of what we hear from the government, not the complete story.

I am opposed to this budget as a whole, both as a Canadian and a northerner. My opposition is based on the fact that average Canadians do not get much help in the budget. My opposition is based on the fact that aboriginal people do not get much help in the budget. My opposition is based on the fact that it is an incomplete deal for northerners in the budget. My opposition is based on the fact that only large corporations really get help in the budget.

By taxing average Canadians to death while allowing their corporate friends to pay less and less tax, the Conservatives, like the Liberals before them, have ended up sucking an extra $14 billion from the pockets of Canadians. They have dedicated $9 billion of that to debt repayment even though Canada has the lowest national debt of any of the G-7 countries.

Our economy continues to produce good numbers resulting in huge government revenues largely by increasing the tax burden on ordinary Canadians. Working Canadians have paid over the last decade to put the government's fiscal house in order. That job is done and the benefits should flow back to average Canadians.

The numbers are staggering. We have the opportunity now not to increase the prosperity gap as has been going on for the last 15 years, but to bring it back to the way it was in the past where the middle class, the average Canadian, had a much better chance of success in this country.

The Conservatives say that the budget returns benefits across the country. They point to the revamped funding formula provided to the three territories this year, the so-called fiscal rebalancing. To be honest, the new formula funding arrangement is better than the formula imposed by the Liberals. I am glad to see the base amount has been increased so we are no longer using 1985 numbers. I am glad to see a more fair system for calculation of the formulas being used, unlike the perverse system imposed by past governments, but I am concerned that the new formula still uses population in its calculation. Multiplying the average southern cost of a program or service by the territories' population does not reflect the real cost for the provision of that service in the north.

The government as well has agreed to raise the NWT borrowing limit from $300 million to $500 million, a move that was long overdue and was really essential in providing just the basic tools for our territorial government to operate. Our present borrowing limit is strained with utility and mortgage debt. In reality the capitalization costs in western Canada have almost doubled in the last five years. This amount still remains inadequate for what the north has ahead of it with the scale of development potential.

Yesterday the member for Fort McMurray—Athabasca went on and on about how I was delaying a one time payment of $54 million to our territorial government. This amount is simply an accounting correction, what in business is referred to as a credit note. The amount that the new formula increased the actual transfer of funds is listed in the budget, $10 million over what would have happened. We can see that the amounts are not that generous or that significant.

To northerners, there are many things missing in the budget. For starters, where is relief for northerners from the high cost of living? For some time we have been calling for an increase in the northern residents tax deduction. When I asked over a month ago whether the government would bring some tax fairness to the people of the north, this was the response by the Minister of Indian Affairs and Northern Development:

At this point we are focused on economic development in the north. That is the key to create jobs and employment opportunities. There is the Mackenzie Valley pipeline in particular and the $500 million socio-economic fund.

Creating jobs that cannot be filled by northerners does not help the working families of the north one little bit. It does nothing to build the north. From his response it is clear that the minister is more interested in helping the oil companies of Calgary and the Petroleum Club than the working families in Old Crow or Tuktoyaktuk or Pond Inlet.

In the budget speech, the finance minister stated that the capital gains exemption was in need of an immediate increase because it had not been changed in 20 years. The same thing applies to the northern residents tax deduction. It has not been changed in 20 years. It is not keeping up with inflation. It is not fair to northerners, but of course it was only average northerners who wanted this change and not necessarily the business elite.

The northern residents tax deduction did change a bit. The change is a cynical pork-barrelling addition of the southern part of the government whip's riding. The government members knew what was going on but chose to do one small shameful thing.

The NWT got no action on resource revenue sharing. The resources of the NWT rival those of nations such as South Africa or the United Arab Emirates, but not one cent of those royalties has helped the people of the north directly.

For more than a generation Canada has been saying that it is willing to hand over control and ownership of these riches. However, the government is just like those of the past and it continues to delay. The current excuse is that we need to restart negotiations. Every day Canada delays fulfilment of this promise is another day that millions of dollars, whether from the diamond fields or the oil and gas fields, are lost to the people of the north.

I hear the minister offering up royalties to the oil companies for the pipeline. To promote this pipeline, he is offering up the royalties that the people of the NWT have a share in. I would say to the minister that he should offer up something that is his to offer. He could offer something in the way of subsidies to a multinational oil company, and that is his to offer, but not the royalties that northerners will need to develop their territory and their region of this country, just as every other region has used its own royalties in the same fashion. The people of the Northwest Territories do not mind hearing “mañana” when on vacation in Mexico, but they are tired of hearing it from Ottawa when it comes to ownership of resources.

Another budget item that is quite worrisome to northerners is on page 186. On that page the Conservative government lays out its plan for negating its commitments under the land claim agreements and for silencing the voice of northerners when it comes to environmental assessments.

According to the budget, a law written to implement the portion of land claim agreements whereby aboriginal people are granted a say in how their land is used must be changed, because the pro-industry minister feels it is too restrictive to large corporations. It is clear that the minister's purpose is to gut the very little protection that aboriginal people and other northerners have under the Mackenzie Valley Resource Management Act and make it open season for rampant development. It is clear from this statement in the budget that the Conservatives will not let anything get in the way of exploitation, even if it means going back on the word of the Crown.

The Mackenzie Valley Environmental Impact Review Board has recently turned down an application by Ur-Energy to prospect for uranium in the Thelon Basin, an area of the north for which there is unanimity among northerners about the need for its protection. This decision has been roundly attacked by the mining industry, which is spreading the falsehood that the board overstepped its bounds.

However, subsection 64(1) of the Mackenzie Valley Resource Management Act, which created the board, is an act of this Parliament and the responsibility of this Parliament, and it states:

A board shall seek and consider the advice of any affected first nation...respecting the presence of heritage resources that might be affected by a use of land or waters or a deposit of waste proposed in an application for a license or permit.

The board did what it was constituted to do. The minister should do his job and support the interests of the people whose land is under threat. He should forget about the arrogant statement in the budget on the government streamlining the regulations, going against the word of the Crown and not playing fair with the constitutional rights of aboriginal people across the north.

This is all in the budget. How can I as a northerner support these kinds of things in any document that comes before this House?

I have to admit that I am not hopeful this government will keep its word to the working people of the north, because it did not keep its word of the Crown on the Atlantic accord. This is a budget that is not for everyone, and it is not for me.

Third ReadingBudget Implementation Act, 2007Government Orders

12:30 p.m.

Blackstrap Saskatchewan

Conservative

Lynne Yelich ConservativeParliamentary Secretary to the Minister of Human Resources and Social Development

Mr. Speaker, I have to comment. The people of the Northwest Territories have one representative in Ottawa. They trust the member for Western Arctic to stand up for them and their interests, but to me he is playing political games that needlessly jeopardize the funding benefits for his own riding.

The NDP member for Western Arctic does not see it that way. He voted against a budget that his own premier called good news. Now he is supporting his leader's efforts to delay the budget bill. This will cost the Northwest Territories over a staggering $64 million. This includes $54 million to cover the payments related to the previous formula arrangements, $5 million to reduce greenhouse emissions and air pollution, and $4.5 million to help reduce patient wait times.

The people of Yellowknife, Hay River, Inuvik and Fort Smith sent him here to make Parliament work. As he stands here today, is he willing to cost his riding $64 million only so his party can get a cheap media hit? Is it all worth it?

Third ReadingBudget Implementation Act, 2007Government Orders

12:30 p.m.

NDP

Dennis Bevington NDP Western Arctic, NT

Mr. Speaker, it seems to me that I have heard the hon. member's question before in this House at a different time. The people of the north understand this royalty game that is going on here in Canada. I am sure that I have great support when I stand here and say that we do not want to continue to be ripped off for our royalties. This budget does not identify how that is not going to happen.

When we talk about the equalization formula and the arrangements between provinces and territories, sometimes we in the north feel like second-class citizens, like the government is giving us something. The government is saying to us that it is giving this to us and we should be grateful.

We want our own way in the Northwest Territories, just as it is in the other provinces. We do not want to have government officials and politicians telling us that we should be grateful for something that every Canadian receives. I have no doubt in my mind that the people in the north will support me in what I am trying to say for them in this House.

Third ReadingBudget Implementation Act, 2007Government Orders

12:35 p.m.

Liberal

Robert Thibault Liberal West Nova, NS

Mr. Speaker, I ask the hon. member for Western Arctic if he remembers, as I do, that in the national election campaign the Prime Minister promised a guarantee on wait times. He promised that if people could not get in within a specific wait time for hip replacement surgery, for example, or for eye surgery, cancer treatment or cardio surgery, they could fly anywhere in North America and get that service. It would be there.

I wonder if in Western Arctic there has been anything done on wait times beyond what had been done on the Canada-provincial accords by the previous government. If there has been some improvement for Western Arctic as opposed to West Nova, I think our people will want to move there, because they are not getting those services in Nova Scotia.

Third ReadingBudget Implementation Act, 2007Government Orders

12:35 p.m.

NDP

Dennis Bevington NDP Western Arctic, NT

Mr. Speaker, that question really does speak to something in my speech, which is that I talked about the formula and the recognition that population is not the way to determine costs. We have incredible costs for health care in the Northwest Territories. They are exacerbated, of course, by distance, transportation costs and our inability to maintain professionals in the north. These things are all real problems for us.

The wait times we are faced with are sometimes about getting diagnoses. In many cases, people are sitting in little communities and waiting months simply to see a nurse or a nurse practitioner so they can get the first analysis of what is going on with their health. That is the real situation of health care in many places in the north.

Yes, if we take a per capita allocation of resources for these important things in terms of health care, our wait times will not decrease. Our wait times will become not better but worse, and the ability of the northern health care system to provide decent service across the north to all the very remote communities will remain one of our biggest concerns.

Third ReadingBudget Implementation Act, 2007Government Orders

12:35 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

I do not think we have time for another question, so we will move on. Resuming debate, the hon. member for West Nova.

Third ReadingBudget Implementation Act, 2007Government Orders

12:35 p.m.

Liberal

Robert Thibault Liberal West Nova, NS

Mr. Speaker, I am pleased to rise in this House to discuss the federal budget again and to raise a few other points.

It is unfortunate that so few members have the opportunity that I have today. The time allocated to a debate on a very important aspect of government has been limited. How will programs be implemented? How will services be provided to Canadians? I believe these questions deserve a good debate and some good discussion.

I have the honour to be a member of the House Standing Committee on Finance, where the Conservatives wanted to eliminate the opportunity for Canadians to appear before the committee to share their opinions on budget 2007. I found that most unfortunate.

We had to negotiate to bring even a few people before the committee, and even then, their testimony was restricted. For example, Premier Calvert was given only a few minutes despite having been promised a whole hour.

What has been interesting to me in this debate today is not the question of whether or not this budget represents a betrayal to Canadians. The only discussion has been on what is the biggest betrayal. Is it the income trusts or is it the Atlantic accord? What is it? The fact that there are so many betrayals is very worrying and the fact that nobody can argue that Canadians have not been betrayed.

The government has flip-flopped on the issue of summer jobs. What bothers me is not the fact that the government has flip-flopped. It is the fact that there are some issues that it refuses to flip-flop on because it comes out instinctively with an incompetent position, which causes us to fight all the time within committees and within this House to get the government to understand and to get the item out in public so the government will be forced to retract its position or improve it.

We have mentioned many examples in the House of government flip-flops but I will name one that might not get much attention. There is a small area of the scallop fishery in my province called area 29. There has always been a huge debate as to who would fish there. Is it the inshore? Is it the Full Bay? Where does the Full Bay begin? Where are the offshore scallop taken? It has taken a long time to come to some accommodation.

When I was minister of fisheries, we came to an agreement on sharing within area 29 between the Full Bay fleet and the inshore fishermen. Having been asked by the Full Bay Scallop Association to maintain the current position, a letter was sent saying that the current sharing formula would be maintained in area 29. A few days later we found out that the minister was appointing a panel to revisit the allocations in that area, again causing consternation within the fleets. This is another example of the government's flip-flops. It is perhaps not one that gets national attention, but it is one that is very important and symptomatic of what we have seen.

We have seen cuts to summer jobs which has hurt little community organizations that need summer students to operate. Thank goodness for the work of the member for Dartmouth—Cole Harbour who brought this to the floor. All Liberals MPs worked very hard with him and we were able to get the Conservatives to retract on that . However, we are still not sure of how we will do in future years. This year the cut was only $11 million, and we saw the impact of that. Next year the government is forecasting a cut of $59 million. What will that mean?

Foreign investment is another issue on which the government has flip-flopped. The government came out with a knee-jerk reaction in the budget saying that an individual could not deduct for tax purposes any interest expense for investments outside of Canada. The government knee-capped Canadian industries that must compete internationally with other companies. It is a global market out there. We had to embarrass the Conservatives at committee to force them to retract on that decision.

Now the government is talking about stacking and about double-dipping. Nobody wants any corporation, Canadian or otherwise, to evade taxes but it is important that our corporate sector become competitive internationally. We worked very hard on that.

The issue of income trusts has been discussed many times. There is no doubt in my mind that we had to take action in that sector because there were problems. The Governor of the Bank of Canada pointed that out very well at committee, as did many others. He also said that it was an excellent vehicle for certain sectors of the economy and that there was a demand for that type of investment in the capital markets.

Rather than solving the problem, the Minister of Finance came out with a nuclear bomb, when a surgical strike would have been appropriate, and completely crushed the whole sector, eliminating $25 million of capital savings of mostly seniors across this country. He killed a very important sector and caused these companies and corporate assets to be sold abroad. The minister had an opportunity to retract and make changes. The member for Markham—Unionville made an excellent proposal that was adopted by the committee that would have solved that problem.

I have also mentioned the issue of the Digby wharf in the House many times. For over a year and a half now the government has had the arbitrator's report. It knows that the error was an error by the Department of Transport. It is not a huge amount of money on a national basis to solve the problem and give this port back to the people where it belongs.

I want to spend a bit of time on the question of the Atlantic accord, which is a huge betrayal because, like income trusts, the Prime Minister promised not to touch it. Further, when the Conservatives were in opposition they were so in favour of the Atlantic accord that they wanted it split from the full budget so they could vote in support of that element but not in support the entire budget.

In last year's budget, the government sent out a message that it did not like the Atlantic accord and that it was not very well received in certain parts of the country. We could debate that. We could debate as to the value of that type of an agreement between the provincial and the federal government or special agreements with any province, but that is not a matter to debate. That debate happened in the House a year and a half ago and the Conservatives agreed to it. An agreement was signed between the federal government and two provinces and that agreement should be honoured.

A promise was made by the Prime Minister to the people of Saskatchewan and that promise should be honoured. A promise was made in the campaign by the Prime Minister to the people of Atlantic Canada that the accord would be maintained, and that promise should be honoured.

It is those flip-flops and betrayals that we object to and the way that people are treated.

We had the member for Central Nova stand in the House, when I questioned him before the first vote on the budget, saying that if Nova Scotians did not like the budget that he would see them in court. We thought that was some buffoonery until yesterday when we heard the Prime Minister make the same challenge, so we now know that it is the position of the Government of Canada.

While the Minister of Finance said that we would have peace in our time and that the bickering between the federal and provincial governments is over, the Conservatives have now gone fully 100% to the American way and the judiciary can resolve all these discussions. We will sue one another rather than discuss and negotiate.

We then had the same highly placed minister of the government stand in this House and say that there would be no whipping, no flipping, no hiring, or firing and that no member of caucus would be expelled for voting his or her conscience and voting against the accord. The member for Cumberland—Colchester—Musquodoboit Valley did not have a chance to make it to the curtains after he showed courage by voting in favour of the people of his province before he was expelled from his caucus.

What does the member for Central Nova, the Minister of Foreign Affairs, say in the media after that? He said that he did not think anyone would vote against the budget. He did not mind misleading the House because he thought no one would take him up on it, no one would make him show his cards. Well, one member had the courage and we now know what I believe is an egregious misleading of the House by a member saying that there would be a free vote when there was not.

We then heard from members within the Conservative caucus that they had to stay within caucus because they were negotiating and trying to find accommodation between the federal government and the accord provinces and that the discussions were ongoing.

On Saturday, in the Chronicle-Herald in Nova Scotia, we see a letter signed by the Minister of Finance of this country saying that no such discussions were happening, that it was impossible and that there could not be some discussions. What is more, we learned that the Prime Minister's Office had written a letter and tried get the member for Central Nova to sign it, which would have been a complete suicide note.

However, I want to help the member for Central Nova, the member for South Shore—St. Margaret's and the member from Newfoundland to find a resolution to this problem. I want to give one last opportunity to the Conservative government to honour its accord. Therefore, I seek unanimous consent of the House for the following motion: That the previous question on Bill C-52, the budget implementation act, 2007, be deemed withdrawn and that the bill be recommitted to the Standing Committee on Finance for the purpose of reconsidering those clauses dealing with the Atlantic accord and equalization.

Third ReadingBudget Implementation Act, 2007Government Orders

12:45 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

Does the hon. member for West Nova have the unanimous consent of the House to move this motion?

Third ReadingBudget Implementation Act, 2007Government Orders

12:45 p.m.

Some hon. members

Agreed.

No.

Third ReadingBudget Implementation Act, 2007Government Orders

12:45 p.m.

Liberal

Jean-Claude D'Amours Liberal Madawaska—Restigouche, NB

Mr. Speaker, I would like to thank my colleague from Nova Scotia for his comments, which were particularly important for people in Atlantic Canada.

Looking at everything the Conservative government has done—signing agreements, making promises—it is clear that if it changes its mind, it will say whatever it wants and break its promises and agreements.

With a government that does things like that, New Brunswickers should be afraid right now. Consider child care, where the Conservatives cut $116 million that was supposed to go to parents and children in New Brunswick. It is clear that people in New Brunswick have many other needs too.

Should the people of Madawaska—Restigouche, whom I represent, and the entire population of New Brunswick be afraid that the Conservative government will take the promises it has made and the agreements that have been signed and toss them in the trash whenever it feels like it?

Third ReadingBudget Implementation Act, 2007Government Orders

12:45 p.m.

Liberal

Robert Thibault Liberal West Nova, NS

Mr. Speaker, before I answer the member's question, I should point out that when you asked for unanimous consent there was not one Conservative member from Atlantic Canada or anywhere else who offered to support unanimous consent and get the situation resolved.

In response to the question asked by the member for Madawaska—Restigouche, in my opinion, all the provinces and regions of Canada should be concerned.

The Government of Canada is a permanent institution, and the Prime Minister and cabinet ministers will change, but Canada will remain Canada, the country, the Dominion of Canada and the federation. If this country signs an agreement, an accord or a contract with a province, an individual or an institution, it should be honoured, regardless of who the Prime Minister is.

I cannot understand how my friends in the Bloc could vote for this budget, which destroys the agreement with two provinces, because the Bloc members claim to defend their province's rights. One of these days, this Conservative government will destroy the agreement with the Government of Quebec, just as it has done with Nova Scotia, Newfoundland and Labrador and Saskatchewan. It is important to recognize this.

It is a good thing the Liberal members from New Brunswick and Prince Edward Island supported their colleagues from Nova Scotia and Newfoundland and Labrador.

Third ReadingBudget Implementation Act, 2007Government Orders

12:50 p.m.

Blackstrap Saskatchewan

Conservative

Lynne Yelich ConservativeParliamentary Secretary to the Minister of Human Resources and Social Development

Mr. Speaker, could it be that the Bloc understands fiscal imbalance better because the finance critic of that party never accepted it? I wonder if the member understands that this is the best deal that any province, including Nova Scotia, which he said was not getting a good deal, could possibly get.

For the member to get unanimous consent, he must remember that his NDP friends are not even on board with him when it comes to the fiscal imbalance. The NDP leader has said that he does not believe there needs to be a resolution of the so-called fiscal imbalance between Ottawa and the provinces. He fears that some provinces will use the extra money to reduce their taxes, instead of improving social services.

In 2005, the NDP leader challenged the then prime minister that he was willing to agree to anything in their backroom deal. He never raised equalization or the fiscal imbalance as a concern.

Does the member not wonder whether he is all alone on this particular issue and that he does not understand fiscal imbalance, much like the Bloc, which he says that he cannot understand why it is supporting it?

I also would suggest that the member obviously does not understand the summer student program. It is about the students, first and foremost, about students getting good, high quality jobs. I think the member needs to understand that and think outside the box.

Third ReadingBudget Implementation Act, 2007Government Orders

12:50 p.m.

Liberal

Robert Thibault Liberal West Nova, NS

Mr. Speaker, what I understand is the balance between responsibility and integrity, which the Prime Minister has not met. He made a promise to the Provinces of Nova Scotia, Newfoundland and Labrador and Saskatchewan and he did not honour that promise.

I know and understand the Gaelic proverb “there is no greater fraud than a promise not kept”.

This was sent to my house by the Prime Minister when he was in opposition. In it he said, “That's why we would leave you with 100 per cent of your oil and gas revenues. No small print. No excuses. No caps”.

The Premiers of Newfoundland and Labrador and of Nova Scotia are telling us that it is not 100%, that there is small print, that there are excuses and that there are caps.

What I understand is integrity, honesty and keeping promises.

Third ReadingBudget Implementation Act, 2007Government Orders

12:50 p.m.

Blackstrap Saskatchewan

Conservative

Lynne Yelich ConservativeParliamentary Secretary to the Minister of Human Resources and Social Development

Mr. Speaker, it is a pleasure today to address Bill C-52, the budget implementation act . It seems the Liberals and the NDP have been unable to imagine a better, safer and stronger Canada, which budget 2007 has asked us to aspire to be.

The constituents of Blackstrap get it. They can envision that Canada and they have embraced the budget. In fact, the budget is well received throughout Saskatchewan, where it largely is seen as a blueprint for better and more prosperous times. It has not hurt that Saskatchewan is a big winner in budget 2007. It is receiving the largest per capita gains of any province with the new fiscal balance package.

I do not believe there has ever been a better budget in Canadian history that has been subjected to such a barrage of misinformation, blatant partisan criticism and wholesale misrepresentation.

For instance, almost three months after the release of the budget, members of the opposition in the House of Commons as well as members of the Saskatchewan NDP government continue to claim that the government has failed to keep its promise to Saskatchewan to exclude non-renewable resources from the equalization formula.

That erroneous information has been repeated so often by so many politicians and written in so many political commentaries that it has been endowed with a sense of truth, but nothing could be further from the truth. The government has kept its promise. The Prime Minister has kept his promise.

Saskatchewan Conservative MPs are voting for the budget because the budget delivers for Saskatchewan. I have made my support of the budget very clear in the House, in letters to the editor and in columns published.

The budget gives us none of us any cause to worry. For those of us in Saskatchewan, the budget is about the tale of two leaders.

The first is of the Prime Minister, a visionary who had the courage to solve the fiscal imbalance and determine an equalization formula that is fair to all provinces, based on a 10 province standard.

The other is of the Premier of Saskatchewan, a standard politician who has spent $300,000 on a provincial advertising campaign called “Imagine”, but lacks the vision to see his province move beyond a have not status. He is a critic for criticism's sake. He will not embrace the future because he is too attached to the past. Partisan to the end, he will not acknowledge a promise kept by his political opponent, so he insists a different promise was made.

First, the government has kept its promise. Saskatchewan can exclude natural resources in the calculation of equalization revenues. The Finance Minister further clarified the equalization formula when he first reminded people that our government did not negotiate side deals with any individual province or territory and that we could not run the country on side deals.

Second, the federal government is currently consulting, not negotiating, with Nova Scotia about the implementation process and the benefits of budget 2007 to determine the process of maintaining our guarantee that no province will be worse off under the new system.

Our government is not in the midst of making any side deals for political expediency. Equalization has been restored to a principles based program for the first time in many years. Equalization has been restored to a truly national program. That is what all premiers asked us to do and that is what all Canadians expect us to do.

Restoring fiscal balance brings federal support for Saskatchewan to $1.4 billion in 2007-08, including over $800 million in new funding. That is more new funding on a new per capita basis than any other province.

Under the old Liberal equalization program, Saskatchewan would have received zero dollars this year. Under budget 2007's new, strengthened equalization, it will receive $226 million per year. That is more now than it had before to fund health care, education and other important public services.

It was that self-proclaimed defender of Saskatchewan, the member for Wascana and former finance minister, who began this ad hoc process of doing side deals with some provinces and not others in 2005.

To set my position straight, I always believed in a fair, principled transfer to all province. Saskatchewan never sought special treatment; just a fair deal. I believe the Prime Minister worked out a fair deal for all provinces, including Saskatchewan.

It is a sad day for Saskatchewan when the NDP premier suggests the government has not kept its word to Saskatchewan. Not only did he choose to misrepresent the situation, but he chose to wage his war in the media with sound bites, clips and one-liners that were less representative of the truth. When dealing with an issue as complex as equalization, a little more substance, time and debate is required.

At first the premier insisted that Saskatchewan had been forced to include non-renewable resources into the calculation of its equalization. Then when that was revealed to be false, he insisted that a cap on equalization dollars was never envisioned. A fiscal cap was always envisioned because the very concept of equalization implied a cap.

We cannot have equalization without a cap because the level of equalization would constantly rise and equalization receiving provinces would then develop a level of prosperity beyond that of provinces not receiving equalization. Some provinces would be more equal than others and the levels of have not provinces would exceed that of have provinces and have provinces would then expect equalization funding.

The no cap argument is absurd. Only because it remains a dominant news story and the opposition's favourite criticism of the budget, it is worth examining the history of equalization in Canada.

Canada's equalization program has been in place since the mid-1950s. It has always been and continues to be a complicated formula. While many changes have been made throughout the program's history, the basic approach involves assessing the fiscal capacity of provinces to deliver public services.

Equalization provides unconditional transfers to less well off provinces to assist them in providing services to local citizens. Checks and balances have always been built into the formula. Measuring the fiscal capacity of the provinces and ensuring the formula is figured out fairly and equally between the provinces is where the term cap originates.

Why Premier Calvert claims he is surprised about the cap is unclear. In the pre-2004 equalization formula, before the member for LaSalle—Émard's government went to its ad hoc ideal approach, there always were internal checks and balances to ensure that equalization payments did not lift have not provinces to a higher total fiscal capacity than contributing have provinces. This would not be fair.

The pre-2004 budget was based on the fiscal capacity of only four provinces: Ontario, Quebec, Manitoba and British Columbia. Due to its volatile economy, Alberta was taken out of the old formula to make calculations more viable. Since 2004, the federal approach to equalization was ad hoc, involving side deals for certain provinces. The provinces, collectively, with the Council of the Federation's provincial body, called for equalization review and reform.

The provinces wanted a new formula based approach, a 10 province standard and a predictability of funding. Therefore, the finance minister was not exaggerating when he described this budget as historic. Our government has taken equalization payments in a historic new direction, which includes a new formula with a principled 10 province standard. It is stable, it allows for long term planning and a seven year framework and it is exactly for what the provinces, including Saskatchewan, were calling.

However, the Saskatchewan premier seems not so much protective of equalization dollars as he is addicted to them. He is utterly afraid of his province ever achieving a have status and not requiring equalization dollars to meet priorities. He seems unable to perceive Saskatchewan growing beyond his limitations. In fact, the former Saskatchewan finance minister recently revealed his government needed equalization dollars to higher provincial civil service salaries.

No wonder the StarPhoenix in Saskatoon today reports that the highest paid Saskatchewan crown corporation executive actually lives in Vancouver. He receives an annual salary of $313,000.

What is going on in the front pages of our news in Saskatchewan has been analyzed by the Atlantic Institute for Market Studies. It has examined the provincial public services across Canada and has found that many use equalization to inflate the size and wages of their public services. AIMS has found that in Saskatchewan, for every 1,000 of population, 109 are public servants. In fact, it is the highest ratio per capita in Canada. Statistics Canada says that Ontario gets by with 67 per 1,000 and Alberta with 73.

That is where the extra money is going and that is why Saskatchewan is closing schools. Rural taxes for schools are very high, and the provincial government is closing schools every week. Schools there are the heart and soul of our communities in Saskatchewan. Meanwhile its population continues to decline drastically. The leader of the Saskatchewan Party was recently quoted as saying that since 2001, Saskatchewan's population declined by 10,000 residents, the size of Weyburn, Saskatchewan.

In 2004 the Saskatchewan Chamber of Commerce pointed out that the labour laws did not help us either. The chamber reported in its publications that Saskatchewan's labour standards act had not been amended since 1995 and pointed to labour laws as a provincial barrier to growth.

The budget is all about fixing fundamental problems and meeting fundamental needs. Budget 2007 invests in families, seniors, small business and farmers and it puts Saskatchewan at the forefront of a revitalized stronger Canada.

Third ReadingBudget Implementation Act, 2007Government Orders

1 p.m.

Liberal

Sukh Dhaliwal Liberal Newton—North Delta, BC

Mr. Speaker, I was carefully listening to the hon. parliamentary secretary, the hon. member for Blackstrap. She mentioned equalization payments.

I come from a province called British Columbia. When we look at our budget documents, in the first two years, starting this year, B.C. is the only province that gets less money according to the new formula. The amount is $339 million.

Would the hon. member like to comment on that? Why is B.C. ignored in the budget?

Third ReadingBudget Implementation Act, 2007Government Orders

1 p.m.

Conservative

Lynne Yelich Conservative Blackstrap, SK

Mr. Speaker, I tried to express this in my opening remarks. It is way too complicated for this formula to be done on an ad hoc basis, much like what had happened with his party and how it dealt with it back in 2005. Perhaps that is why he is questioning why his province has not been understood.

His party always speaks like it believes there is a problem, but his former finance minister did not think so. He said:

This may be an opportune moment for me to address an issue that remains a preoccupation with some of our critics, both at the provincial and federal levels. That is the allegation of a fiscal imbalance in Canada. With the greatest of respect, I do not agree.

That came from the former finance minister of the previous Liberal government. He also said:

With the greatest of respect for those who hold other views, I have to tell you that I do not subscribe to the notion of a vertical fiscal imbalance in Canada.

Maybe he should ask how the last deals were done, and maybe British Columbia might get an answer.

Third ReadingBudget Implementation Act, 2007Government Orders

1:05 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, I will always remember the statement of the finance minister who said that the years of bickering with the provinces were over and there was peace in our times.

The member for Blackstrap stood and basically lambasted Saskatchewan and the Premier of Saskatchewan, saying that the premier was “addicted to equalization”. She also outlined a scenario in which Saskatchewan's population had declined and the province was rundown.

I have never heard a member of the House speak so poorly about a province or region in our country in 14 years of being a member of Parliament, except once. That was when the Prime Minister referred to the Atlantic provinces as having a culture of defeatism, referring to their so-called addiction to EI.

Would the member maybe reconsider her slanderous remarks of the Premier of Saskatchewan and maybe apologize to him on the record before this matter gets any further.

Third ReadingBudget Implementation Act, 2007Government Orders

1:05 p.m.

Conservative

Lynne Yelich Conservative Blackstrap, SK

Mr. Speaker, perhaps I could have another 10 minutes and I will repeat my speech because I was not talking about that. In fact, my province has some hope. It is the leadership of the province, the visionless leader. This is why the equalization debate gets so distorted because that is exactly how those members interpret everything we say.

We are talking about a province that has so much potential. Nobody cares more about the province than the Conservative MPs who are in the House. We are working hard to ensure the budget gets through so Saskatchewan will be a leader again in mining. My riding is a leader in potash. I am very proud of our riding, but I am not proud of the leadership of the province. I think he speaks for himself by his actions.

Third ReadingBudget Implementation Act, 2007Government Orders

1:05 p.m.

Liberal

Raymond Chan Liberal Richmond, BC

Mr. Speaker, after 16 months of Conservative minority government, it is now very clear that the Prime Minister and his party are dishonest electoral opportunists and are more concerned with holding the reins of power than they are interested in the--

Third ReadingBudget Implementation Act, 2007Government Orders

1:05 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

The hon. member for Edmonton--Sherwood Park on a point of order.

Third ReadingBudget Implementation Act, 2007Government Orders

1:05 p.m.

Conservative

Ken Epp Conservative Edmonton—Sherwood Park, AB

Mr. Speaker, I think if you check the record you will find that the member just said directly that the Prime Minister was dishonest. That is unparliamentary. It is also despicable. I ask that you ask him to retract those words unequivocally.