House of Commons Hansard #165 of the 39th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was drug.

Topics

7:15 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

The hon. Parliamentary Secretary to the Minister of Finance.

7:15 p.m.

Calgary Nose Hill Alberta

Conservative

Diane Ablonczy ConservativeParliamentary Secretary to the Minister of Finance

Mr. Speaker, I thank the member for Western Arctic for his rather unexpected concern about tax relief. Since coming into office, the tax measures we have introduced through our first two budgets are providing nearly $38 billion of personal tax relief, benefiting hard-working Canadians in all regions of the country over this and the next two years. That includes northern residents.

I note that the member opposite voted against personal tax relief. Going forward, we are committed to providing further tax relief.

The member opposite has spoken about one specific and unique form of tax relief, the northern residents deduction, which applies to Canadians living in northern and isolated regions. This deduction, when combined with other tax relief measures, reduces the tax burden of northern residents.

For 2007, the maximum northern residents deduction is $5,475. When combined with the basic personal amount of $8,929 and the Canada employment credit of $1,000, introduced in budget 2006, a single resident of the north can earn over $15,400 tax free. That is over 50% more than other Canadians. However, it does not end there.

The northern residents deduction also includes possibly two tax-free employer provided vacation trips per year, as well as unlimited employer provided medical travel. Combined, these elements help offset the extra costs of living in Canada's north.

However, Canada's Conservative government has moved beyond tax relief to help those living in northern and isolated regions to the territorial level. To ensure that territorial governments can provide their northern residents with a comparable range of programs and services as the rest of Canada, the Conservative government also enhanced the territorial formula financing program. As a result of budget 2007, total territorial formula financing payments in 2007-08 increased to $2.2 billion. That is $115 million more in funding than last year.

I note that all three northern leaders have praised this enhanced formula. Nunavut Premier Paul Okalik said, “We appreciate budget 2007”. Yukon Premier Dennis Fentie said it was “a positive step in the right direction”. Northwest Territories Premier Joe Handley said, “Budget 2007 is good news to us”.

It is surprising that the member for Western Arctic seemingly disagrees. He voted against the budget. He voted against the new funding for the north. He voted against budget 2007's new $25 million per year funding for infrastructure, which we want to provide for each territory. Last year he voted against budget 2006, which gave $300 million more to Canada's territorial governments to address urgent housing pressures, and $10 million more for other services.

The real question is this. Why is the NDP member for Western Arctic disagreeing with all three northern leaders on budget 2007 and why he is voting against the very tax relief that he claims to want?

7:20 p.m.

NDP

Dennis Bevington NDP Western Arctic, NT

Mr. Speaker, the figures surrounding the territorial formula financing are one thing, but the cost of living to northerners remains the same. When we look at the cost of living in comparison to other places, then we begin to understand why the system was initiated in the first place. It has not kept up with inflation, which means more of a burden on northerners. It has been more of a burden on employers up north.

In every case, economic development is being stymied in the north because of the lack of employment in some cases. The opportunities in economics have to reside with the individual taxpayer—

7:20 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

The hon. Parliamentary Secretary to the Minister of Finance.

7:20 p.m.

Conservative

Diane Ablonczy Conservative Calgary Nose Hill, AB

Mr. Speaker, I urge the member to reflect on the magnitude of his failure to support budget 2007's new territorial formula financing arrangement. There is more than one way to provide relief, help, assistance and support for people in the north. We have a range of measures, as I have just pointed out.

Let me read a quote from Premier Dennis Fentie that appeared the Whitehorse Star on April 19. He said:

I cannot overstate how important this new territorial funding formula arrangement is for the Yukon...It is perhaps the most important achievement of our government to date.

Clearly, we are working with people in the north, taking real action to better the lives of people in Canada's north. We recognize the challenge. We have programs and a principles based territorial formula to assist.

Again, the real question is this. Why is the member for Western Arctic voting against these important measures for his very own constituents?

7:20 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

The motion to adjourn the House is now deemed to have been adopted. Accordingly the House stands adjourned until tomorrow at 10 a.m., pursuant to Standing Order 24.

(The House adjourned at 7:24 p.m.)