Mr. Speaker, I would like to correct an injustice or perhaps an error on the government's part. In response to the statements made by the Leader of the Government in the House of Commons and Minister for Democratic Reform when he rose on a point of order on Tuesday, April 8, 2008, I would suggest to the Chair that Bill C-445 does not require a royal recommendation.
It is important to understand that this bill amends the Income Tax Act to provide a tax credit to a taxpayer in respect of whom an employer and the employees failed to make the contributions required to be made to a registered pension plan. This bill seeks to help retirees who have lost retirement income.
According to a ruling by the Chair on October 16, 1995 about Bill S-9, a tax reduction would not contravene Standing Orders 79 and 80. The Chair at the time said this:
The bill will also have the effect of granting some tax relief retroactively and there may be some reimbursements payable for taxes paid under the law as it now reads, should Bill S-9 be passed by the House and receive royal assent.
The bill does not appropriate tax revenue, but rather exempts or reduces taxes otherwise payable, in some cases retroactively.
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In conclusion, Standing Orders 79 and 80 have not been contravened, as Bill S-9 neither imposes a tax nor appropriates money for any purpose. Since the bill relinquishes funds it might otherwise have gained, it is not appropriating money but forfeiting revenue it would have raised without such changes.
It seems to us that this is the same, because it would reduce the tax revenues, as permitted by the Standing Orders. The Speaker will have to consider the fact that this measure seeks not to create a specific program to help workers who have lost their pension funds, but to enable citizens who have paid taxes their whole lives to benefit via tax credits.
This fiscal measure will result in a reduced tax burden on individuals whose retirement income was downsized because their retirement plan was in a deficit situation when the company that employed them ceased operations.
Take, for example, the 1,200 Jeffrey mine retirees in Asbestos, in my riding. Since February 2003, these retirees have lost no less than $55 million from their pension fund and $30 million in benefits. As a result, a retired worker who was supposed to collect $30,000 can now collect only $22,000. When my Bill C-445 comes into force, retirees will receive 22% of the $8,000 lost, a $1,760 tax credit.
I could also have talked about the workers at Atlas Steel in Sorel, who are struggling with the same problem.
If this bill is passed, all retirees who have been victims of this kind of situation will be able to get back some of the money lost as tax credits—that is important to mention. This will amount to reduced revenues for the state, not a new social program.
In conclusion, I am sure that this explanation will enable the Speaker to reconsider the need for a royal recommendation on Bill C-445.
Mr. Speaker, I have faith in your good judgment. I believe that you will come to an enlightened decision in favour of workers, justice and democracy.