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?