Debates of Dec. 1st, 2008

Economic and Fiscal Statement

[Tim Uppal, Conservative, Edmonton—Sherwood Park, AB]

Mr. Speaker, as I rise in the House for the first time, I would like to thank the good people of Edmonton—Sherwood Park and Fort Saskatchewan for trusting me to represent them here in the House of Commons.

I would also like to thank my family for their support over the years, and my campaign team, who fought a very tough battle.

I would also like to recognize the member who previously represented this riding, Mr. Ken Epp. He worked tirelessly in the House and is well respected among his peers because of that. I am honoured to follow in Mr. Epp's footsteps, representing the great people of Edmonton—Sherwood Park. I am very proud to have been voted into a Conservative government led by the right hon. Prime Minister.

The people of my riding of Edmonton—Sherwood Park and across Canada voted for us not in spite of the economic turmoil, but because of it. Canadians want a prime minister and a government they can trust to guide them through these very difficult global economic times.

Now is the time for strong, determined leadership. The Prime Minister has led Canada on a balanced, prudent path for the last two and a half years and should continue to lead our country.

There has been an unprecedented deterioration in the global economy in a very short period of time. Nobody could have predicted the full force of this economic crisis. The effects of the international credit crisis were sudden and devastating. Canada has not been immune to this economic slowdown, but our Conservative government made choices to help put Canada in a stronger position.

The measures we have already taken to stimulate the economy are substantial and permanent. Since 2006, we have reduced the federal debt by $37 billion. This translates to more than $1,500 for each and every Canadian. We have reduced taxes by almost $200 billion over 2007-08 and the following five years. We are reducing the tax rate on new business investment to the lowest level in the G7 by 2010. This alone will help Canada weather these tough times as companies choose to relocate to Canada as a cost-cutting measure. We made a historic investment in job creating infrastructure, and invested in science and technology, education and training.

Todd Banks, the executive director of the Sherwood Park and District Chamber of Commerce, told me that along with low business taxes, the most important thing small and medium size businesses need right now is access to credit. These businesses are the backbone of our economy, and we must give them access to the tools they need to be sustainable and to grow.

Last weekend one such small business had its grand opening in Fort Saskatchewan in my riding. Adorable Baby opened its doors last weekend. It was able to do so because of access to business loans and credit. This was only possible because of the actions of our government in the last two and a half years.

We have taken steps to free up liquidity so the financial institutions can continue lending to consumers, homebuyers and businesses at an affordable rate. Our measures maintain the availability of long-term credit through the purchase of mortgage pools through the Canada Mortgage and Housing Corporation at no cost to taxpayers.

We are standing up for businesses, such as ABS Trucking in my riding. The owners and many drivers will benefit from the billions injected into infrastructure and the reduction in the tax on diesel fuel.

We have been working since we took office to become the number one destination for companies in the G7, and we have succeeded. With our tax cuts we will have the lowest taxes in the G7, which will result in more jobs as companies relocate to Canada because of its low taxes and skilled labour workforce.

This Conservative government is also protecting seniors. Our seniors built this country. They deserve to live with dignity and respect and with financial security. We share their concerns about the impact of the economic downturn on their retirement savings.

Seniors in Edmonton—Sherwood Park have raised two key concerns with me: the impression that assets and RRIFs must be sold to meet withdrawal requirements and the recent steep drop in market value of some of those assets. There are no requirements under tax rules to sell assets and RRIFs to meet withdrawal requirements. Instead, individuals can transfer their assets outside of their RRIF to satisfy their minimal withdrawal requirement.

To relieve the pressure on seniors to withdraw assets at a time when they are at a low point in their market value, the economic statement proposes a one-time change that would allow RRIF holders to reduce their required minimum withdrawal by 25% for this tax year. If our government is defeated, the change to RRIF withdrawals for this year will disappear.

We must remember that Canada is not an island or in a bubble such that we cannot be affected by the global economic downturn. However, we can and have reduced the effects of the global downturn on Canada.

In my riding the mayor of Sherwood Park, Cathy Olesen, has raised concerns over the loss of major projects in the area. As recently as six months ago, we were slated to host as much as $90 billion worth in heavy oil upgrader projects. This projection is now closer to just $30 billion. I know these are still very big numbers, but at the end of the day those lost or stalled projects means jobs in my riding. I am committed to ensuring that Edmonton—Sherwood Park continues to create jobs for my constituents.

Alberta's oil sands are a key driver of the economy within Alberta and contributes nationally to Canada's GDP. Approximately 145,000 Albertans are employed in the mining and oil extraction industry and thousands more work in the services sector that supports energy exploration and production.

Our Conservative government acknowledges the great contribution of Albertans and our oil sands to our country's economy. Revoking our mandate would cripple the state of this industry, damaging one of our nation's greatest economic contributors. How can the NDP-Liberal-Bloc coalition claim to represent the interests of Albertans when they only have one member from that province? How can they claim to represent Saskatchewan where they only have one or Nunavut where they have none?

With Canadian values focused on innovative technology, oil sands provide stimulus to economic prosperity. Maintaining Alberta's oil sands is imperative for propelling Canada's economy out of this time of crisis.

Second only to Saudi Arabia's reserves, Alberta's oil sands deposits have the potential to satisfy the world's demand for petroleum for the next century. Every dollar invested in the oil sands creates about $9 worth of economic activity globally and $6 in direct and indirect activity in the Alberta economy.

Alberta's industry has developed unique heavy oil expertise, including services, equipment and special technologies that can be exported throughout the world. More than $1 billion has been invested in oil sands research. This coalition would have us turn our backs on the people of Alberta.

The Conservative government has created 200,000 net new jobs this year alone. Since taking office, we have created 900,000 new jobs. It is because of the global economic downturn and the real effects it is having on the hard-working people of my riding and across the country that the news of the opposition's backroom deals is so troubling.

Alberta and the prairie provinces are home not only to the oil sands, but also to countless farmers and farm suppliers. How can the coalition hope to represent them with no rural prairie seats?

I speak for the farmers of my community and for agribusinesses like the Keg River Chemical Corp. and Westco Fertilizer. These businesses are trying to grow to support the farmers of our nation. These businesses need a strong Conservative government that will help them become global players in their markets, as the Keg River Chemical Corp. is attempting to do.

The government has made pledges to farmers that we will continue to work with western Canadian grain farmers to ensure that the results of the barley plebiscite are respected, that they are given the freedom to choose whether to sell grain on the open market or through the Canadian Wheat Board and that we will set aside $500 million over the next four years to work co-operatively with provinces and territories to implement an agricultural flexibility program that will allow them to cope with the costs of production pressures, promote innovation, ensure environmental sustainability and respond to market challenges and opportunities important to each province and territory.

The Conservative Party is a party of the western farmer. We are the only true national party and the voters of the country made that clear less than two months ago. I cannot stand by the presumptions of the coalition parties that they know what is best for people who they do not even understand.

I would like to stress that the people of Canada chose the Conservative Party to lead the country through these rough economic times. People realize that what is happening in the rest of the world is not happening in Canada. We have not had a huge market crash specifically because of the actions taken by the Conservative government in the past two and a half years. We were chosen to lead the country precisely because we were taking action on the economy. We anticipated the economic slowdown, and we are ahead of the curve in injecting billions in tax cuts stimulus, actions that are now being replicated in other countries.

The opposition wants to create a coalition so it can throw money at the problem. We are taking a more prudent approach to the economic crisis by realizing that Canada is not in dire straits like the rest of the world. We have the time and ability to make a prudent, smart plan for this stimulus package. We have moved up the fiscal budget specifically because we are ready to act on the economy.

The entire world economic downturn began with the housing market in the United States. As a result, the United States government had to step in and save huge financial institutions throughout the country by buying bad mortgages. The American taxpayer saw nothing in return for his or her money except saving financial institutions, which caused the problem in the first place.

We, the Conservative government, chose to buy mortgages as well, however, we bought good mortgages which will be repaid with interest. In October the government announced a $25 billion effort for shoring up Canada's financial system by purchasing mortgage-backed securities. This was at a time when the fundamentals of the Canadian economy were, and I note still are, solid compared to the United States and many other nations.

We did this because we saw what was to come and we acted before it was a crisis. We used tax dollars to invest in mortgages to reassure the financial community and to give taxpayers a return on their money. This is just one example of smart, prudent action taken by this Conservative government.

During the Great Depression of the 1930s, the solution to problems in the global economy was found not through stimulus packages, but through the creation of infrastructure. These nation-building projects not only create jobs and boost the economy but will support Canada in the coming decades. The government has not only pledged to speed up the investment of $200 billion in our infrastructure. This money will go toward creating and maintaining roads, bridges and railroads. It will create thousands of jobs. It will boost the Canadian economy and it will help commerce struggling to deal with the downturn in the global economy by making it easier to do business.

This is the kind of boost to the economy Canada needs. We need to help small and medium size businesses achieve their goals because they are the backbone of our economy. We need to assist businesses such as the Ashland chemical company in my riding of Edmonton--Sherwood Park, businesses that are trying to forge ahead and become global competitors in difficult economic times. To do this, we must provide them with access to credit, something that this government has done.

The Conservative government has made major new investments in leading edge science and technology over the past three budgets, which will increase support for science and technology by $850 million.

We have injected billions into the market in the form of liquidity, ensuring that growing businesses can easily and safely gain access to the loan that they need to thrive.

We have ensured that our banks are some of the safest and most regulated in the world. We have done so well that across the planet nations are attempting to model their banks after ours. They are calling it “Brand Canada”.

Other countries, those affected by the global economic crisis, are mirroring the steps of the Conservative government in other ways as well.

Britain recently cut its sales tax, a move that the Conservative government implemented in its first term when it cut the GST. This was a reduction that the opposition fought, yet it is proving to be a huge boost to the economy.

The government has been ahead of the curve on the economy.

Meanwhile the opposition plans to create an instantaneous stimulus package without coordinating it with our neighbours to the south, who will not put forward their own for a number of months.

For the opposition, I put forward the words of German finance minister Peer Steinbrück, “I think it is not candid to give the impression that we can fight this recession with state cash” he said in a magazine interview published Saturday. He further said, “The Germans do not have to commit to every European proposal whose capability to support the economy is questionable.”

I think Canadians, too, do not have to agree to questionable proposals from this opposition, proposals that run counter to the economy's interest, counter to the democracy and counter to the views that Canadians made clear just two months ago.

We need to provide the means for businesses to achieve their goals. Construction companies, like Brenex construction of Sherwood Park, are relying on us to manage the economy properly, to lower their diesel taxes and make it easier for them to do business, to cut job killing corporate taxes and allow them to take on bigger projects, hire more employees and nurture their entrepreneurial spirit.

We have also pledged to help emerging, innovative businesses to create a new $75 million venture capital fund, to be administered by the Business Development Bank of Canada, which would allow late stage technology companies to move from research and development to commercialization stages of business.

A multi-billion dollar stimulus package cannot be sprung in a matter of days like the opposition is planning. That is a waste of taxpayer dollars. We have proven that we can lead Canada through these though economic times and the opposition should respect the wishes of the voters.

Our government is the only rightful government in Canada. Any plans to defeat the government and create a coalition of opposition parties would go against democracy in Canada. Canadians voted for the right hon. Prime Minister and the Conservative team and soundly rejected the Liberals. Yet, presently, the Liberals and the NDP are creating a coalition with the Bloc, a party that wants to destroy Canada.

I cannot stand idly by while the opposition unites with a separatist party to bring down the government. The opposition parties have a right to oppose and bring down the government, but they do not have the right to create a government out of parties that were rejected by voters only two months ago. The Liberals and the NDP were soundly rejected in the last election. If the opposition parties do not have confidence in the government, it should be up to the voters to decide who they want to lead the country.

Government cannot be taken; it must be earned.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Mr. Speaker, I welcome the new member to the House. I do not know if that was his maiden speech but I congratulate him should it have been.

The member made a couple of comments, one concerning investment in infrastructure. In my own riding of Cape Breton—Canso, there are a number of fairly significant infrastructure projects. I am thinking of the Melford Terminal project, a fairly substantive private investment for the development of a container terminal. We also have the Port of Sydney project, another substantive private investment initiative. However, some of the infrastructure aspects surrounding those projects have not been addressed. We have not seen a nickel spent or a cheque cut.

The government has talked at great length, certainly in the last election but also in the election before that, about the Atlantic Gateway strategy. It says all the right things and it talks in eloquent terms about the Atlantic Gateway strategy but we have seen nothing done on it. We have seen no investment. No one has gone to the Treasury Board or cabinet. When can the people trying to champion these projects expect some action on the part of the government?

[Tim Uppal, Conservative, Edmonton—Sherwood Park, AB]

Mr. Speaker, the government has already doubled infrastructure funding and has announced that it will start to release more funding to speed up that funding for projects. This will create jobs and help the economy. It was announced that the budget would come in January. We are ready to take action and more details will be in that budget.

[Merv Tweed, Conservative, Brandon—Souris, MB]

Mr. Speaker, I congratulate the member for Edmonton—Sherwood Park. I knew his predecessor very well, and I would suggest he has big shoes to fill.

Based on his comments today, we have a new member who finally understands what a fiscal update is and what Canadians have been talking about over the last couple of days. He has talked about increased funding in certain areas that are needed in the communities. He talked about increased infrastructure and further investment as plans are presented to the government.

I found it quite interesting in his closing comments when he talked about the coalition that is being formed. I wonder if the member might contradict or show the contradictions from the Liberals who suggest that the NDP have no idea how to run the economy and think the best thing for Canada is a high corporate tax, which is the $50 billion that the government put forward and was passed by the House to help institutions, corporations and their employees weather the storm.

I am wondering if the member might lay out some of the contrasts he sees from an NDP-socialist idea of government pay for all to the Liberals who seem to support the $50 billion bailout. I do not know how it will work—

[The Acting Speaker, Conservative, Barry Devolin]

The hon. member for Edmonton—Sherwood Park.

[Tim Uppal, Conservative, Edmonton—Sherwood Park, AB]

Mr. Speaker, he is absolutely right. Having the NDP as part of that coalition would raise business taxes and take away the business tax cuts that we have already put in place. Those tax cuts allow businesses to be sustainable, to grow and to hire. We need people to get back to work. We need to create new jobs so people can spend and help the economy in this global economic time. This is not the time to raise taxes and to hurt our businesses, especially small and medium size businesses. They are the economic backbone of this country and if we start raising their taxes they will have to lay off workers, which is a big concern in my riding.

[Dennis Bevington, NDP, Western Arctic, NT]

Mr. Speaker, I did not quite understand my colleague's particular take on democracy. In the last election, the Conservatives were elected with 37% of the popular vote, the Liberals with 27% and the New Democratic Party with 18%. When we look at the composition of the House, the Conservatives have 143 members of Parliament, which means there are 163 other members of Parliament.

I was elected to represent the people of the north. I have the right, within my party, to decide how this Parliament is going to act and influence it in as many ways as I see possible.

When we look at a coalition, it is an idea that is carried forward in many Parliaments across the world. Why does the member think that it is somehow undemocratic for the majority to actually make the decisions in the House of Commons?

[Tim Uppal, Conservative, Edmonton—Sherwood Park, AB]

Mr. Speaker, when I ran in this past election, I ran on a platform, a platform that we presented to the people of my riding. We went door to door and talked to them about what we would do. I am very sure that the hon. member did not go door to door and talk to people about a coalition.

People voted for a Conservative government and the right hon. Prime Minister and the House should allow the people's votes to count.

[Jim Maloway, NDP, Elmwood—Transcona, MB]

Mr. Speaker, I would like to comment and ask the member a question concerning the whole issue of consultation prior to an election. The members in the current government are saying that somehow we did not consult with our constituents about this eventuality, this coalition idea, just two months ago in the election.

I would like to point out that just prior to September 9, 2004, there was an election and Paul Martin was the Prime Minister after that election. What did the opposition do? On September 9 of that very year, the opposition parties sent a letter, signed by the current Prime Minister, the leader of the Bloc Québécois and the leader of the NDP, to the Governor General asking what the possibilities were if they were to form a coalition.

There is a little bit of hypocrisy coming from the members opposite when I hear comments like that. I would like to know what the member has to say about the letter.

[Tim Uppal, Conservative, Edmonton—Sherwood Park, AB]

Mr. Speaker, the situation with the letter was explained earlier today in the House. However, that actually was a very different situation.

Right now we are dealing with a government that was elected by the people on October 14 and the backroom deals that are being put together right now go against what the voters did that day.

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Mr. Speaker, I am pleased to participate in this discussion. It is important that I demonstrate the significance of the economic situation worldwide, and the automotive sector in particular and its impact, not only on the Canadian economy but on Cape Breton Island.

As we have seen in the throne speech, the Conservative government has not acted.

A recent article in the Globe and Mail demonstrated how all the other G20 countries are providing stimulus packages for their economies through infrastructure and also positioning their industries for this changing economy. Some of the other countries around the world putting packages together are Britain, Italy, the Scandinavian countries, China, Australia and the U.S..

Last week's Economist magazine stated:

On November 17th Harry Reid, the Senate majority leader, laid out plans for a $100 billion fiscal stimulus, which included a $25 billion car-industry bail-out, $38 billion for cash-strapped state governments, an estimated $6.5 billion to boost unemployment benefits and $13.5 billion to fund infrastructure improvements.

In that same article, President-elect Barack Obama proposed a tax credit for businesses that hire new workers and a relaxation of penalties for withdrawing money from retirement accounts. Mr. Obama's stimulus package adds up to over $175 billion over two years, and that is just right now.

Some are even looking at bigger options. Many of the investments will go into the green economy, such as projects to improve energy efficiency.

The Canadian economy is about one-tenth the size of the U.S. economy but our treasury is in a much better financial situation. As stated, the U.S. could spend $175 billion up to $200 billion in its stimulus package. Why could the Canadian government not come forward with its own stimulus package to boost our economy and help the industries that are having problems?

We have heard talk about our coalition. Our coalition has a plan. We are talking about providing up to $30 billion for projects to help the economy. If we do not do this and other countries are, where will our industries go? What will happen to the people who are unemployed?

One can just think of all the infrastructure projects that could be done across this whole country, from British Columbia to Newfoundland and Labrador. Much of our infrastructure is in disrepair and so much of it is needed for the new economy.

When I look at my own riding of Sydney--Victoria, I see the need for investments in sewage and water systems and harbour and wharf improvements. The marine Atlantic ferry system alone could use a tremendous amount of money for infrastructure. We also need highway improvements.

As many of my colleagues in the House and many international travellers know, the Cabot Trail is one of the most scenic drives in the world but it is in desperate need of repair. A new infrastructure package could help projects like that and could help spur the economy in those outer regions.

The most important missing component from the Conservative's economic update is the lack of money to help the auto industry. Every day, plants are closing and people are getting laid off. Business articles in all the newspapers state how far it could go without a package being announced. We are not talking about a package to help inefficient industries or industries that are not thinking of the new economy, to help with fuel efficiencies. We are talking about industries that will step up to the plate, but these industries need help.

As I stated, other countries are stepping up to the plate and investing in their automotive industries but this country is not and that is because of the inaction of the Conservative government.

The broad-based implications of this industry's failing is enormous. Even the so-called big three have a network of dealerships throughout the country that rely on their products. They have sales staff and administrative staff. They have mechanics. As well, auto dealerships do a significant amount of spending locally whether it is through advertising or helping with charitable events. In short, there is a barely a riding in this country that is not affected by the auto industry.

We are talking about manufacturing. That is key and that has to be fixed. It is not just the auto makers. It is the people who make the parts for these automobiles. As has been stated many times, many of the parts that are made in Canada go to the United States and other countries. If we are not producing those products, somebody else will produce them.

I want to talk specifically about the jobs in my riding of Sydney—Victoria. Many of the jobs rely on the auto sector. I have mentioned this previously in the House. I asked the Minister of Finance and the Minister of Industry about it. My colleague from Parkdale—High Park asked a question in the House on Friday to try to get some action from the government. He did not get any answers. He did not get any action. That is not surprising.

My hon. colleague from Cape Breton—Canso will remember that 15 years ago Frank Stronach visited Cape Breton. He was asked if Magna could succeed at opening a plant in Cape Breton on the other side of the country far away from Ontario. He said that if the infrastructure and workforce were there, he could succeed anywhere.

He invested in Cape Breton. He built one plant and after a few years he saw how good the workforce was. He saw the quality of the products. He saw the transportation links working. What did he do? He built a second plant. He built two plants in Cape Breton. After those two plants were built, a third plant was built by another company, Cape Breton Castings. That company built parts to supply the other two automotive parts plants.

When we look at the full capacity of these three plants, it is up to 400 workers in an area like Cape Breton. That is a major impact. It might not sound like a big impact in the Ohio region or central Canada but it is a big deal in Cape Breton. Magna PFC and Atlantic Castings employ several people in the Northside industrial park.

It is a tremendous impact on an area like Cape Breton. These are solid jobs requiring technical skills. They are the kind of jobs which before the downturn were in considerable demand.

Not only are these hundreds of direct jobs at stake, but there are hundreds more in services that will be placed in jeopardy. This morning I was listening to an item on CBC. A Canadian auto workers president, I think from Windsor, was talking about the auto sector in Canada. It is directly or indirectly responsible for one out of seven jobs in Canada. There is the multiplying factor. How much of a spinoff is there from one job in the automotive industry? He was using the number eight. For every person who is hired in one of these plants, there are eight others who are feeding from it. They could be truck drivers or people who are painting the building.

People living in a community that has an automotive plant see it around them. That is why in Cape Breton right now there is a major concern. There have been some layoffs and there might be more to come because there is no package in place.

These jobs have a tremendous impact on a region. It is phenomenal. When there are other countries helping their industries and we are not helping ours, where do we think they are going to go? These are international industries.

I would like to talk about Cape Breton. Over the last number of years we have seen positive developments in Cape Breton. It still has a fairly high unemployment rate when we look at the whole country. Right now we are at 12%. Before my hon. colleague from Cape Breton—Canso and I were elected, the unemployment rate was up to 20%.

Our industries were different ones. We had the coal industry. There is a large coal bed off Cape Breton. This created a steel industry. During World War II Cape Breton produced over 40% of the whole country's coal and steel. That is how much of an impact there was in Cape Breton, with just those two industries. We also had the groundfish industry. With the collapse of the cod fishery, it also took a major hit. In a matter of a few years, around the year 2000, those three industries collapsed in Cape Breton. That is why it drove the unemployment rate up to 20%.

Many good things have happened in Cape Breton. Our tourist industry has been increasing, with the famous Celtic Colours. There are a lot of people who went through a transition and are working out west right now and bringing money back home.

The automotive sector was very important, not only for the spinoffs but for the emotional and psychological impact on our region to see plants opening, to see men and women going back to work, to see that spinoff and the awards these plants got compared to other plants, for their productivity and their excellence.

We got through it. These new industries came. We are willing to expand on these industries. Many stakeholders in the community stepped up to the plate, invested and got training to help with this industry. We need more help like that.

Part of the change we are going through in this industry will require innovation. That includes innovation coming from the parts industry, no matter where the companies are located in the country. There has to be innovation for the new vehicles.

We have a skilled workforce and we have the technical expertise. What we need is a government that will spur innovation and allow Atlantic Castings and Magna of Cape Breton to participate in the economic recovery and allow plants right across the country to operate.

We do not have that in place. Like I said before, where are they going to go? We need a package that will help rationalize existing operations instead of slashing production. When we think of the finances across the whole supply chain in the automotive sector, when big companies like GM, Chrysler and Ford get into a cash-strapped situation, the people who get hurt the most, the plants that get hurt the most are the ones that are supplying those operations. Those are the ones who are going to get hurt the most. We have to help those operations.

I had a meeting this weekend with the councillors and mayor of my region. They do not think there should be a buyout, that we should give money to these companies just to get them through the financial crisis. They believe that we have to make money available that will help them be better positioned for the new economy.

Part of that change will require innovation. It includes innovation for the parts industry also. We have the skills right across the country. We need a package that will help rationalize these operations.

The government has to act. Every day is a day we are losing. Every day represents another plant that is gone. Every day there are people losing their jobs. When this equipment leaves a community, when it leaves that plant, it is not coming back. The clock is ticking. Workers are getting laid off. It does not have to be this way.

I stated that on this side we are willing to put a stimulus package in place to help these industries. Just think about the infrastructure alone. Even the right-wing governments of the world are putting money there. It is hard to believe. China is putting a lot of money into infrastructure, as is the U.S. What is going on elsewhere is phenomenal, but no, the government sits there and says, “Let the market help the workers who are unemployed. Let the market help the automotive plants”. Is the market going to help with the infrastructure? I doubt it.

There was no package announced by the Conservative government in its economic update last week. Like I said, the companies in the automotive sector are internationally based. They will be looking seriously at other countries that will help them through these very troubling and challenging times.

This is a spell we are going through. We went through it before. It is a spell in the industry. Yes, people worldwide will buy fewer cars in the upcoming months. They might fix up their old ones for a while, but eventually it is going to come around.

When we look at the predictions from the economists and specialists who know how the industry works, they see technically an increase in the buying of automobiles in the upcoming years. It is going to happen. Vehicles are going to be bought. Vehicles are going to be traded in. The emerging economies alone, China, India and Indonesia, are all buying more vehicles. Yes, they will have a downturn in their economies, but they are going to buy more vehicles.

Who is going to produce those vehicles? Who is going to sell those vehicles? Who is going to manufacture the parts for those vehicles? We can do that right here in Canada. We have proven it over the last 20 years and we can do it again, but we need help right now. We need to help these plants retool. We need to help the workers. We need to make sure that EI is available when they are going through down times. We should be educating the workers on the new technologies. We are ready.

We have a good business environment in this country. Our corporate tax rates are down. We have a great health system. When we look at the cost of producing a vehicle here in Canada compared to other countries, we have one of the best packages available because of our health system.

The sad reality is that if we wait a month, six weeks, two months for any substantial package, think of how many jobs we could be losing. There is a domino effect. There are plants in Scarborough, Oshawa, Windsor, Guelph, Oakville. There are plants all over and they need parts, but when these plants close, they do not buy parts. The parts stop coming in.

They need us in Cape Breton to produce parts for them and we need them to stay open. It has to be a package that is going to help the whole supply chain. It has to be a package that is going to help this industry be ready for this century. Imagine the fuel efficient cars and lighter vehicles that we could be building. There is no doubt that we could be a world leader, but again the government has not acted.

I stand here proud to be the member for Sydney—Victoria. I am very appreciative that Frank Stronach came to Cape Breton that day, opened that plant and took a chance on us in Cape Breton and we hope that plant will stay. We know the three major auto manufacturers need help. There are other plants, not only the big three, making cars in Canada and we should be helping them also. We should have a good, lean manufacturing industry that is suitable for this century.

In closing, I would like to thank my hon. colleagues for listening today to the hardships we have had in Cape Breton and how we have moved over the last few years and where we are going.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Mr. Speaker, the member for Sydney—Victoria is another Atlantic Canadian MP. He talked about the auto industry and infrastructure. Those are a couple of areas on which I want to ask him questions.

He talked about speeding this up and said that we had to get this to the next day. I would like to ask him a few questions on practicalities.

First, as we know, the auto industry executives went down to the U.S. last week, cap in hand, with no plan and asked for $25 billion. What does he believe is a comprehensive and reasonable business case for companies? We now have given them until Friday to come up with something, not just a back of the envelope calculation.

The other question is on infrastructure. As the member would well know, most of these fundings are either fifty-fifty or they are triple. Each level of government contributes to the infrastructure. Is he sure and has he worked out with the provinces that they are ready with their money in every case to contribute to these infrastructure projects?

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Mr. Speaker, let us talk about infrastructure. In Nova Scotia, the famous Atlantic gateway was announced, but no money has been rolled out yet.

The hon. member talked about looking in our back door. For instance, a recreation facility has been on hold since the Conservatives were elected, or for the last two and a half years. Why did they not sign it off? What are they waiting for? There has been no action.

The Conservatives did not just get elected yesterday. They know what the needs are out there. They know the harbour in Sydney needs to be dredged, but nothing has happened.

The United States is moving forward. Yes, the Senate is talking about working this out, its $25 billion package. All of a sudden, the Conservatives woke up after what happened last Thursday. That is when they sent the letter to the three automotive industry companies. It is a little too late.

We are now into winter. How hard will it be to do infrastructure projects in the middle of winter? These should have been announced last spring, and we would have had half of them completed by now.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, the priorities of the new coalition government have been announced and they include accelerating existing infrastructure, substantial investments in municipalities and interprovincial projects, housing construction and retrofitting.

The key here, and I think it goes to the previous question, was the investment in key strategic areas like manufacturing, forestry and automobile. One of the key provisos was that any aid was contingent on a plan to transform these industries and return them to profitability and sustainability, which is fiscally responsible. Would the member like to make a comment on that?

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Mr. Speaker, we are coming forward with a package. As I said before, it is not only to bail out these companies. It will have to be a package that will make the industry viable. It will have to be efficient. It will have to produce the right vehicles. It is all about that.

It is a shame that the government across the way has not talked with these industries over the last few months. This did not happen yesterday. The automotive industry was on slide for the last year, but other countries have stepped up to the plate.

The U.S. is in a precarious situation because it is changing its administration, but there is no excuse why we did not have a plan coming forward. The money is there. Our country has one of the best financial situations in the world because of the measures of Paul Martin and the member for Wascana. They set the pace for our country to be in good financial shape right now.

Why are we not helping these industries? Like my hon. colleague says, we have to use the money wisely. We have to use it in industries that will be suited for this century and that will retool.

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, one of the best tools that Canadians have to evaluate whether the Liberal approach to the economy is the right one is to look back in history.

The largest and worst recession Canada ever had since the Great Depression was between 1980 and 1982 under former Prime Minister Pierre Elliott Trudeau. It is really instructive to see what happened during that time.

We remember it was a time of high deficit. It was a time of high debt and taxes. At that time, the interest rates in Canada were somewhere around 20%. Today they are around 5% to 6%. The inflation rate back then was 20% and unemployment was 30%. Today, employment is around 6%.

How is it that the member now believes the Liberal Party would do a better job of managing the economy than they did between 1980 and 1982?

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Mr. Speaker, I cannot believe my hon. colleague opposite could ask me such a good question.

If we look at when we took over from the Mulroney government, unemployment was at 12.5%. The Conservatives were in the hole. We turned it around. We started balancing the books. We started creating surpluses, 10 straight years in a row. That is our record. We know what the record was before and we know what the record is now. Numbers out there now show they have been in a deficit over the last quarter. We have the record.

Let us look at what is happening globally. I mentioned the G20 countries. I think we are up to 18 countries now that have stimulus packages. I think there are two left, the U.S., which is going to come out very shortly and even Germany, when we read the Economist today, is talking about coming out with a stimulus package. What part of it do those guys not get?

Conservative members have gone to the meetings in Peru. They have gone to all these meetings of the G20. They must be hearing about all these other countries. What happens when they come back across the water? Do they forget what we should be doing here? Do they think we are insulated from the rest of the world and do not have to invest in our economy?

Look at what Roosevelt did. In times like this, we have to put money back into the economy. We are in a slide here. Those guys have their blinkers on and they do not believe we are in a slide. It is sliding fast and we have to put money back into the economy. We have to help. That is what a government is there for, to help people when times are tough.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Mr. Speaker, I know you are probably thinking that we share an apartment so why do I not ask him this question on the way home tonight. However, it is important for my colleague to get this on the record. We share in a lot in our adjoining ridings. One is the huge potential in container terminal development, through the Strait of Canso, the Melford terminal project and his own port of Sydney.

Comments came from the other side of the House about the importance of investing in infrastructure, and we believe that. The Conservatives have talked the talk. They have told the stories. They have advertised this in past election campaigns, but we have not seen a dollar. We have seen no investment and it has stifled these projects.

If they got going over there and invested the money, what kind of impact would that have in his riding?

[Mark Eyking, Liberal, Sydney—Victoria, NS]

Mr. Speaker, before he was whip, I could talk to him on the way home, but it is a different situation right now.

In all seriousness, when we look at the Sydney harbour, one of the best harbours in the country, one of the busiest harbours in World War II, it has great potential. We had a consortium come in from Europe to work with the local stakeholders to put a container terminal there. It was not looking for a lot of money from government. A lot of the local people were putting up money. All it needed was the harbour to be dredged. All it needed was between $10 million to $12 million. The rest of the money was going to come in for port facilities, for the ships that were hauling coal, for the cruise ships and for the container boats.

Talk about getting a bang for our buck, with that kind of money in an area like this, but it did not get rolled out. It is still sitting on the table. I do not know what they are waiting, but they will want to get their act together.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, it is honour for me to be here today. This is the first opportunity I have had to congratulate on being appointed to the chair.

This is also my first opportunity to deliver a speech in the House of Commons since being re-elected on October 14, and I want to take a few moments to thank the voters of the riding of Burlington.

It is an honour and a privilege to represent the people of Burlington in the House of Commons. I appreciate the trust and the faith they have placed in me once again. I am committed to work on the issues that affect them directly. This includes improving the quality of freshwater that they use every day and working on infrastructure improvements, including transit issues. I also want to continue to work on issues facing seniors, particularly single seniors in my riding.

I also want to thank the over 500 volunteers who worked on my campaign during the fall election. Their efforts at the door, on the telephone, delivering information and working on election day all made a difference. I thank them for all their efforts.

Finally, I want to thank my family. My wife and two daughters are very supportive, not only at election time but every day as I try to make a difference in the quality of life of the people of Burlington and of Canada. I love them very much and I appreciate the sacrifice they are making in our family life for a better Canada.

It is an honour to speak in the House today regarding our economic and fiscal statement presented last week by the finance minister. We all understand that the Canadian economy and economies around the world are facing very difficult times.

I have heard about the economic difficulties first-hand in my riding. I have heard from owners of small businesses. For example, this past weekend I talked to the owner of an automotive parts manufacturing company in my home town. She told me about the struggles her industry was facing due to the downturn in automotive sales south of the border. I also spoke to one of the owners of Canada's largest demolition companies with offices in Burlington. He has seen first-hand the cyclical nature of business over the past 30 years. He too articulated how the current economic environment was affecting his business.

We spoke about what our government had done for the business community over the last couple of years in anticipation of any future economic slowdown. They agreed with our approach of injecting substantial stimulus into the economy already in advance of the economic slowdown, long before other countries around the world, including the United States, as it has just begun to act.

Here are just a few examples. Next year Canadians will pay $31 billion less in taxes, or almost 2% of GDP, as a result of the tax reductions we have made since taking office in 2006. Our Conservative government has reduced the federal debt by $37 billion. We have reduced the tax rate on new business investment to the lowest level in the G7 by 2010.

Our Conservative government has made historic investments in job creating infrastructure. We have also invested in science and technology, in education and in training. Our approach to the economy has been and continues to be steady and prudent. The economic and fiscal update continues this process.

We will continue to consult all Canadians, including businesses, families and seniors on our future stimulus package. We will continue to be careful stewards of taxpayer money. We will not frivolously spend money without a careful and thoughtful review of a coordinated approach with our provincial and G20 partners. We will not produce a stimulus package that will not be effective. We will not produce a stimulus package that will spend taxpayer money for the sake of spending money. We will not spend good hard-earned public dollars to prop up bad public sector investments.

Canadians want serious solutions from a serious government, the government they elected on October 14, a Conservative government.

The economic and fiscal update deals with the savings of seniors. I have heard from many seniors in my riding ask me to speak on their behalf. They asked our government to take action to help them with their retirement savings, and we did. I am very happy to say our government was listening. Our seniors built this country. They deserve to live with dignity and respect. Our Conservative government is committed to the needs of seniors and we have a government dedicated to seniors' issues.

The seniors in my riding have been calling me, concerned about the value of their registered retirement income funds, or RRIFs. Their legitimate concern is in the lost value of their RRIF portfolio this year and the withdrawal requirements based on the value of their savings at the beginning of this year.

Our Conservative government has recognized this problem and has taken action in the economic and fiscal update. To help seniors, like the seniors in my riding of Burlington, we have proposed a one-time change that would allow RRIF holders to reduce their required minimum withdrawal by 25% for the tax year 2008. For seniors who have already withdrawn more than 75% of the moneys required for 2008, they will be able to repay these funds without penalty. This measure would mean that seniors are under less pressure to withdraw assets at a time when their retirement savings are at a low point in their market value. Although most RRIF holders have only a portion of their assets in equities, this change recognized the impact of recent declines in those assets.

I have listened to the concerns of my local seniors and have regard for their savings and the effect that the stock market is having on them. I have received a tremendous number of phone calls from seniors in my riding and email, and a number of them have taken the time to come to see me. It is a real concern that at the beginning of the year, for those who are not familiar with the system, their RRIFs are evaluated and a certain percentage, the average in my riding is about 8.5% to 9%, of what the RRIFs are worth has to be withdrawn in that calendar year. The purpose is to make sure that seniors have enough money to survive on based on their retirement savings.

The way the system works is that the RRIFs are used up based on a system where by the time a person reaches the age of 90 the RRIFs will be virtually completed, but we want to spread out the payments so people in their early senior years are not taking all their money out, spending it all at once and then having nothing left for the next couple of decades that we hope they are with us. But in this case, and the system has worked really well over the last number of years, our party has increased the age requirement to start taking out a RRIF from 69 to 71 years, which allows people to save money a little longer without having to start to withdraw from the RRIFs.

What I have been hearing from my seniors is that this requirement works well when the market is where they think it should be, where they understand how much savings they are going to have, and they can plan for their retirement and for their retirement expenses based on a reasonable return for the RRIFs and they understand the payment process that would last. However, the way the system works, the RRIFs are evaluated at the beginning of the year and seniors are told how much money they will have to withdraw over this calendar year based on the value of the RRIF at that particular time.

As members know, the marketplace, in terms of the stock market, has been very volatile this year, to say the least. If somebody has $100,000 in a RRIF, just to use round figures as an example, and he or she is supposed to take out 10%, which is $10,000, $10,000 of $100,000 is something that he or she was planning for and is able to deal with. However, because the marketplace went down, now the RRIF is only worth $50,000, he or she is still required to take the $10,000 out.

In this economic and fiscal update, we are going to allow seniors to take only 75% of what they would normally be required to take out. If they have already taken some money out, they would be able to pay that back without penalty. If they have not taken money out, they would only be required to take out 75%, which would leave them with 25% room to help overcome the difference in what the marketplace had evaluated their RRIF at, at the beginning of the year, and what it may be worth now.

As a result of the agreement, or the coalition, or the cartel, or whatever they are calling it on the other side, the marketplace is reacting today. It was coming back and things were going well, but based on the shenanigans of the coalition across the way, the marketplace has fallen again today, hurting every senior in this country.

With respect to the RRIFs, I made a commitment to my local seniors that I would talk to both the finance minister and the Prime Minister on this particular item. When I came back to caucus, I was able to speak to both of those individuals.

I was proud and happy to see that in actual fact our government has taken action for seniors in the economic update and in the fiscal plan. I appreciate the fact that they were able to put that forward, and I want to thank them for listening to the issues that I brought forward.

I was going to talk mostly about the economic update today, but for me this is a bad day for democracy in Canada. I cannot go any further without talking a bit about the coalition that has happened here today. It is a sad day for democracy.

The opposition said that some 60% of Canadians did not vote for our party. That is not true. I received 48.5% of the vote in my riding. People voted for my party not against it.

The Elections Canada report that I have here indicates that the Liberal Party received 26% of the popular vote. That means only 26% of the people in this country voted for the Liberal Party. Now we hear that party is going to install its leader, who in the Hill Times today is--

[The Acting Speaker, Conservative, Barry Devolin]

I urge the hon. member for Burlington not to use props in the House.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, if we look further at the New Democratic Party, it received 18% of the vote across the country and it is making a deal with a party that received 26% of the vote. If I am adding correctly, that is 113 seats or so and those parties are going to install the prime minister.

However, that is not the bad part about it. That is not the part that bothers me. They can make deals among themselves. I can quote from days where the opposition leader poured cold water on suggestions about a coalition government as he attacked the fourth party leader's plan on the economy. On September 23, 2008, he said, “[The leader of the fourth party] does not understand the economy. I cannot think that Canadians will give their support to a man who will kill jobs everywhere in the country in raising the corporate tax. There are four additional quotes from October where the opposition leader said he would not form a coalition with the New Democratic Party.

What really irks me and the hundreds of people who have called or emailed me is that these two parties have made a deal with a party in the House that wants to break up Canada. They have made a deal so they can cross the aisle and put a prime ministerial crown on someone who is leaving. We all realize nobody in Canada wanted him or they would have voted for him four weeks ago, but that is not the case.

They have made a deal with a separatist party, the Bloc Québécois. How is that good for Canada? How do I explain to my daughters that the political scheme they have come up with is good for Canada? There is no explanation for it. Actually, there is one explanation. It is political power. The NDP is in fourth place and always will be in fourth place as long as the Bloc is here. Maybe it will move up to third if we can get rid of the Bloc. It supported the Bloc today. If we could get rid of the Bloc and have the NDP move up to third place, then it will never form government in this country, thank goodness.

I understand from what I am hearing that there will be six cabinet positions in this new coalition. The only way it can have any influence is to make a deal with separatists, people who want to break up Canada, who do not really want to be here but are happy to have the income and take our money. I can say from sitting on committee that when there is something it wants, it does not mind taxpayers in the rest of the country paying for it, absolutely not. Only when it is affected will it give support.

Here is the deal. I am hearing the deal is this. The other minority parties, the Liberal Party and NDP, will stick together for about two and a half years. They will throw each other out after two and a half years. The Bloc's deal, the tail that is wagging the dog, is 18 months. They are accepting little deals with each other. Is that good for Canada? Is that the direction this country needs? Nobody around here is denying that we are in tough economic times, but does anyone think that the public in this country wants the politicians to be making little deals?

Let us be honest. The finance department asked the opposition members for suggestions on this update. We did receive suggestions. We received suggestions from the Bloc but not from the NDP and not from the Liberals because we know from information that is now available that they had been working on this coalition scheme long before, as soon as the Liberals knew they had lost.

The leader of the fourth party put himself up as a potential prime minister in the last election. He declared it everywhere he went, “Vote for me. I will be your next prime minister”. He came fourth. The public in this country does not want him as the leader. The public does not want NDP members in cabinet. If the Liberals and the NDP had the audacity to do this, they should take it to the people. Let us ask Canadians how they feel about that. No, no, they say, they are going to ask the Governor General to form a government. We will see how long it lasts. I do not think it will last more than a few weeks.

The NDP made a deal with a party that has a lame-duck leader. He admitted today that he is leaving. He knows he is leaving. I believe he would be the second leader of the Liberal Party never to have become prime minister. Now he is going to correct that history book by being prime minister for, in his view, a few months, until their leader is picked.

The NDP made a deal with a party that does not have a leader. It is unbelievable. It is undemocratic. It treats the people who voted in the last election with contempt. I do not believe that it will last. I do not think it is good for this country.

The previous speaker, who was not in the House before, had a question about plans. That is absolutely right. What did he think we were doing here? We were expecting plans from the automotive sector and from other sectors. The Liberals got up and made a big speech to the effect that they were going to have plans, that they were going to talk to those industries and see what their plans were and make sure they were viable.

Mr. Speaker, I want you and everyone in this House to check the record on the economic update from last year and the previous year. We had complaints from the opposite side that it was too much like a budget, that we were doing too much in those economic updates.

This update was much narrower. We were waiting for ideas and plans from the industries that were looking for a stimulus package. We were going to consult with the provinces and continue consulting with the G20 people we have been dealing with.

The U.S. plan does not even come into effect until after president-elect Obama assumes office on January 20, 2009. They had an $80 billion plan. What has it done for them? Nothing.

We need plans. That is what the government will do, and that is what the government will continue to do.

[Mario Silva, Liberal, Davenport, ON]

Mr. Speaker, my hon. colleague speaks about democracy and what is happening in Parliament.

My hon. colleague must be aware that under our Westminster parliamentary system of democracy, we do not elect governments, but parliamentarians and a parliament. In order to function, a government requires the support of the majority of parliamentarians.

The minority government has failed Canadians, has failed the democratic process, has abused the process over and over again by declaring every bill a confidence motion. The Conservatives have basically bullied the opposition into supporting their right-wing agenda. They have attacked women's rights, gay rights, and everything that is fundamental to the country in terms of human rights and respect for human dignity, yet they expect us to just roll over and do whatever they want.

We are not going to stand for that. Many constitutional experts, including Professor Errol Mendes of the University of Ottawa, with whom I spoke, have said that under our Constitution the Governor General has an obligation to see if there are other opportunities within Parliament to make it work and to see if another party has the confidence of the House. That is exactly what is before us, and that needs to be clarified.

The hon. colleague speaks about president-elect Obama. We know very well that president-elect Obama has in fact engaged Republicans--

[The Acting Speaker, Conservative, Barry Devolin]

The hon. member for Burlington.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, this is exactly it. President-elect Obama engaged the public during the election. He got elected. We engaged the public during the election, and on October 14 we got elected.

I am way back here, but I want to make sure you hear me. It is obvious from the question that you are not hearing me.

What have we heard from the Liberals just now? They are saying that constitutionally, it is a minority government. They checked with the Constitution.

The people of Canada voted for the Conservatives. We have 143 seats in the House. You have 76, and you want to have your leader as prime minister. You have 76 seats. You had the worst election that your party has had in many decades.

Why do you not understand that the public is not going to be happy with what you are doing? We are trying to accomplish things in a very tough economic environment, but you do not want to accomplish things. You want to--