House of Commons Hansard #4 of the 40th Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was budget.

Topics

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:50 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

My colleague says “not likely”.

I would like to know whether the hon. member thinks that the projection of being out of deficit in five years is fantasy or fiction.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:50 p.m.

NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, I think the member is absolutely right. I do not think that we will see the end of this deficit within five years.

I have to say I very much welcome his opening remarks in which he said that he agreed with everything that I said in my remarks with respect to this budget.

I know that at this point in the debate we cannot engage in a back-and-forth, but I wonder if his colleagues, like him, find that almost everything I said about the budget is something that they can support and I wonder whether they will be standing with members of the NDP when it comes time to vote on this budget to actually stand up for their constituents, to stand up for the things with which he agrees, and join us in voting against this budget which clearly does not meet the needs of his community or my community.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

4:55 p.m.

NDP

John Rafferty NDP Thunder Bay—Rainy River, ON

Mr. Speaker, this budget is a missed opportunity to help our economy recover and help Canadian families make ends meet during this increasingly deep and painful recession. As such, I will be opposing this fiscally and socially irresponsible budget.

The Conservative-Liberal budget for the 2009-10 fiscal year pushes ahead with a treasury-draining $60 billion in corporate tax cuts that can only go into the well-lined pockets of shareholders of the most profitable Canadian companies. While shovelling money into pockets of the wealthiest companies and shareholders, this Conservative-Liberal budget also ensures that ordinary Canadians will continue to suffer throughout this long and painful crisis. The appalling $84 billion deficit will ensure that the children of ordinary Canadians also suffer unjustly.

The government continues to sit and collect interest on the $54 billion surplus in the employment insurance fund and offers no help to the 73% of workers who pay into this fund but are unable to draw from it once they lose their jobs. Even more appalling is that making employment insurance more accessible to those neglected 73% of Canadians and their families would not have added even a single dollar to the massive deficit in this budget. It would have come from the $54 billion stand-alone fund that sits untouched.

To those Canadians who need access to employment insurance funds but are denied, I say that Canada's New Democrats are here, standing with you in spirit in this House, to oppose this budget and the social injustice that it perpetuates and in many cases intensifies.

On the issue of forestry, this government has the nerve and arrogance to table a budget that contains $60 billion for permanent corporate tax cuts and just $170 million for the struggling forestry sector that provides employment to nearly one million Canadians and which has been in its own recession for more than five years.

Thought of another way, this Conservative-Liberal budget provides just $170 million to help struggling forestry families get through this crisis while handing out $60 billion to the well off shareholders of Canada's most profitable corporations. It is as if the Minister of Finance thinks the people of our northern communities and forestry towns simply do not exist. We do exist and we are proud to stand here today in opposition to this budget.

Contrary to what this Conservative-Liberal government thinks, and indeed contrary to what the Premier of Ontario thinks, forestry is not a sunset industry. New Democrats have come to expect the sort of cold-hearted and irresponsible policy that is contained in this budget from the current government. After all, it is the one who destroyed the fiscal capacity of the Government of Ontario before moving on like locusts to destroy the once robust fields of our federal treasury.

The government can do so in this budget only if it is enabled by the official opposition. Sadly, it would appear that this will be the case and I dare say the federal treasury will never be the same. Each and every member of the official opposition that stands in support of this budget should hang their heads in shame for the fact that they have turned their backs on the most vulnerable Canadians they said they would protect just 72 short hours ago. I will leave it to them to explain to their constituents why they think the current government is better suited to deal with this crisis than they.

The people of Thunder Bay—Rainy River told me what our riding needed from this budget and I am sad to see that our needs are not being met by the contents of this document. There is no extension of VIA rail service to Thunder Bay and rural communities, just more trains between Canada's two largest urban municipalities. There is no mention of shipbuilding at our facilities in Thunder Bay.

The money in the budget for first nations infrastructure and health is welcome but it is not adequate. There is next to nothing in this budget that will improve rural access to family doctors, physiotherapists and mental health and emergency care facilities.

There is a significant amount of money allotted for the upgrading of border facilities in British Columbia and southern and eastern Ontario but apparently no money for upgrading the Rainy River, Fort Frances and Pigeon River crossings, the three international border crossings that are in my riding.

There is some new money for infrastructure but no mention of support for small projects like the Royal Canadian Legion in Kakabeka Falls. Municipalities in my riding cannot afford matching funds for the infrastructure projects they need. Non-profit organizations cannot afford large loans to improve their infrastructure and operations so they can continue to provide services to seniors, children and families in rural communities like Rainy River, Upsala and Atikokan. Because these and other local concerns are not adequately addressed in this budget, I will vote against the passage of this budget.

Finally, I would be remiss if I did not take a moment to thank the liberal, green and progressive-minded constituents in my riding who voiced their support for our attempt to form a Liberal-New Democrat coalition government. I and the entire New Democrat caucus entered into that endeavour for the right reasons: to provide a stable, progressive and cooperative government that reflected the values of 62% of Canadian voters. Because of the shortsighted and ill-advised capitulation of the official opposition to the government on this budget, our progressive endeavour did not succeed.

I want to thank those in my riding, particularly progressive Liberals, who reached out and extended a hand in partnership and trust. Their support and efforts in this common cause were greatly appreciated and will not be forgotten. My door remains open today and tomorrow.

It is in the spirit of social justice, fiscal responsibility and progressive values that I will be casting my vote in opposition to this budget.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, generally speaking, I would say that this is a chicken in every pot budget. I am hard pressed to find an issue someone did not bring up and ask for money. It was right across the board.

One of the things that the budget does not do and does not take account is the consequences of a deep recession on ordinary Canadians who lose their jobs and go into a stressful situation in their families. Despair becomes the norm in the household. It affects things like health, mental and physical health. It also affects the utilization of social services where people need some help, where they cannot feed themselves or cope with the stresses of life.

As the member will probably know, when there is a recession the crime rate will go up. When people are desperate, bad things happen and that requires additional policing costs.

The health care services, the social services and the policing services are all provided for by the provinces but the budget did not provide any increase in the transfers to the provinces. The formula stayed the same. It does not recognize that there will be a surcharge to be dealt with.

Does the member believe that the provinces have been left behind to pick up these pieces? Should this budget take into account that there will be higher costs for health care, social programs and criminal justice costs?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5 p.m.

NDP

John Rafferty NDP Thunder Bay—Rainy River, ON

Mr. Speaker, when we look at a budget carefully we sometimes see things in the back hidden away. For example, there are $72 million less for public health in this budget than there were before. I would ask everyone to have a very careful look.

In terms of employment insurance, when employment insurance runs out for the people of Ontario and they have no other option, they apply for Ontario Works which is the direct responsibility, at least until 2018 or two or three Ontario governments from now, of the municipalities. That means that municipalities will be harder and harder hit as more and more people run out of employment insurance benefits.

We were asking for up to two years of employment insurance benefits to ensure there would be less pressure on families and on the municipalities. The ball keeps on rolling and trickling down. Municipalities have less money, so if they need to match money for infrastructure projects, they will have less money over the next couple of years. It is a situation for which the budget does not prepare my province.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:05 p.m.

NDP

Megan Leslie NDP Halifax, NS

Mr. Speaker, I note that the budget does have money for forestry, research and development, new products and marketing. I wonder if the member for Thunder Bay—Rainy River could tell us a bit about how this impacts single industry towns in his riding.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:05 p.m.

NDP

John Rafferty NDP Thunder Bay—Rainy River, ON

Mr. Speaker, I am glad the member raised that point. The $170 million allotted to forestry in the budget is mostly money for research and marketing. That is certainly welcome, but far more of a concern is the plight of our forestry families in our single industry towns that have been decimated by five and more years of recession in this sector. More than 38,000 good paying jobs have been lost in forestry during this period and tens of thousands more jobs are likely to be lost in the coming year and we hear of new losses almost daily. It was announced today that a forestry company in Thunder Bay will go into receivership tomorrow. AbitibiBowater, one of the largest, is now being faced with what we hope is not a permanent shutdown. It is a situation that is continuing to steamroll. Many of those workers have spent their entire lives working for one employer and now find themselves out of work for the first time.

Therefore, when I speak about the failure of the budget to help the forestry sector, I mean that the budget does nothing to help our forestry families and communities. There is no direct assistance for laid off forestry workers. Where there is some assistance, such as the community adjustment fund, our forestry communities must get in line with mining, agriculture, fishing and manufacturing dependent communities. It is simply not enough.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:05 p.m.

Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, it may be coincidental or fortuitous that I am following my electoral neighbour, the hon. member for Thunder Bay—Rainy River. I will be splitting my time with the member for Wild Rose today.

I am very pleased to contribute to the debate regarding Canada's 2009 economic action plan. Indeed, this is not just an economic action plan to deal immediately with the global recession. It is a legacy document that will modernize Canada's infrastructure and position our great country to emerge from the global recession stronger than ever before and before other western countries.

This is not a partisan statement. For example, the International Monetary Fund recognized that Canada was one of the last countries to enter the recession and will be among the first to emerge. The economic action plan sends a strong message that the Conservative government will stick to its core principles and deal appropriately and effectively with the things that Canada needs to get through this recession. This economic action plan is a modest, manageable plan that will return us to surplus spending within five years.

I want to take some time to focus on how and why this is not just a good economic plan for Canada but more specifically for northwestern Ontario and my riding of Kenora. Any action plan put forth had to deal with some very fundamental regional structural defects in the forestry and mining sectors peculiar to northwestern Ontario in order to ensure that the Kenora riding could be competitive in areas of tourism, forestry and mining as we emerge from this global recession.

I can say unequivocally that by the time I had finished the long form version of the economic plan, I was impressed with how comprehensive and detailed it was in addressing the priorities for the Kenora riding, northwestern Ontario as a whole and other regions throughout Canada that depend on primary resources and the need for diversification for long term economic stability.

While I am impressed, I am not surprised. After the extensive initial consultations of my constituents, our government went back out on the road and performed more focused round table discussions to identify specific measures the federal government could take to support regions of Canada that rely on primary resource based economies.

On behalf of the Minister of Natural Resources, the Parliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board and I held round tables in Kenora, Dryden, Thunder Bay, clear across to Sudbury. We met with forestry management and workers of companies like Domtar, Kenora Forest Products and a number of other mining and forestry sector people, including first nations stakeholders, in an unprecedented pre-economic action plan consultation.

This economic action plan has addressed, in a very technical, pragmatic and responsible way, not only how to deal with this global recession, but how to modernize our infrastructure and put the communities like the ones in my riding in the best position to diversify our regional economy and participate in a leaner, greener forestry and mining sector.

This economic action plan takes immediate steps to invest almost $12 billion over two years in an infrastructure stimulus fund. This is key for northwestern Ontario, as we will see the twinning of parts of Highway 11 and 17, specifically from Clearwater Bay just outside of Kenora, to the Manitoba border. The twinning of this particular section of the highway not only provides for safer travel on the Trans-Canada Highway, but will also go a long way to fortify the vital transportation link between western and eastern Canada.

Emphasis focused on waste water and sewer treatment plants and shovel-ready projects that can start immediately are planned for our riding. We will increase broadband coverage and capacity to help ensure all regions of Canada are technologically on an equal footing. This is great news and critical for northwestern Ontario. Expanding broadband coverage in our region is essential for economic diversification, access to justice, training and education, and the delivery of health services, particularly to the more than 25 isolated communities in my riding.

That is what I have heard from my friends at Keewaytinook Okimakanak who provide broadband services to these communities. I know they are pleased that the government is making a commitment to improve broadband capacity and service throughout Canada.

I note that there is significant funding as well under the RInK program to improve recreation centres such as ice rinks, pools and community centres, which are all important parts of our small communities' social and health fabric.

Key drivers of our economy include the production of primary and secondary wood products for things like housing and renovations. This plan provides $7.8 billion to build quality housing and stimulate construction. Social housing, retrofitting, renovating and upgrading first nations homes are key stimuli for the forestry sector. The home renovation tax credit will stimulate this sector and provide an incentive for folks to undertake these renovations.

Stimulus in the economic action plan is focused on regions like northwestern Ontario. We were the hardest hit by the impact of the global recession. Kenora felt it sooner and harder than most parts of our country.

I am pleased that this government is investing over $1 billion over the next two years into the community adjustment fund. It keeps the Kenora riding in mind because it is intended to help new forestry products and processes, especially those for the international marketplace. The fund could support initiatives like the Whitefeather Two Feathers forestry initiative that will put the Kenora riding on the leading edge of the value-added industry within the forestry sector. Such an initiative would directly benefit the communities of Red Lake and Dryden and first nation communities such as Eagle Lake, Wabigoon and Pikangikum.

I have always maintained and continue to focus my energies on ensuring that Kenora riding's economy must be focused on infrastructure and economic diversification that integrates and connects our communities together. We must work synchronously at all levels of government to ensure that we have the right keys and the right instruments for economic prosperity.

One of the extraordinary features of this economic action plan is the commitment to our first nations communities for training and skills development, housing and ready-to-go projects with priorities being given to schools, water and critical community services such as health and policing.

These economic plan items were a direct response to the consultation our government made with first nation national leadership, as well as input from the grand chiefs and first nation leaders in my riding. I am pleased to report to this chamber that first nation leaders in my riding and in the riding of Thunder Bay—Rainy River have already voiced their optimism about the attention first nations were given directly and indirectly to this economic action plan.

With regard to skills training for all northwestern Ontarians, our government's economic action plan is unprecedented. There is a realization that moving forward we need a highly skilled workforce to be successful. That is why we are providing funding for the Canada skills and transition strategy, which includes extra support for Canadians most affected by this recession.

When I met with local industry in my riding, a key point I heard on more than one occasion was that changes needed to be made to employment insurance. This action plan offers a real response to people's needs by extending maximum benefits to a total of 50 weeks and extending work-sharing arrangements by an additional 14 weeks. This will help companies like Kenora Forest Products and Domtar avoid further layoffs. They expressly asked for this type of help. To that extent, this economic action plan has delivered.

Other important measures in our plan include increases to the basic personal exemption to 7.5% from 2008, raising the child benefit which will put an extra $436 in parents' pockets, tax savings for seniors, and novel tax-based incentivizing housing renovation, the benefits of which are twofold: they stimulate the purchase of building forest products and provide tax credits for folks who incur this type of expense.

Finally, special mention should be made for this government's commitment to FedNor, a brand and a program reputed throughout northern Ontario to support our communities in the process of economic diversification and initiatives. The additional funding for the next two years will go a long way to support several projects being planned or considered in communities throughout northern Ontario. This economic action plan should inspire confidence because it deals with some of the key aspects that northwestern Ontario needed to have addressed.

I want to express my extreme appreciation to my caucus for listening and understanding the kinds of support and measures the federal government could take to help put the Kenora riding on an equal footing with the other regions of Canada. I believe this economic action plan goes a long way to bringing the communities in my riding and across northwestern Ontario, including first nations, much closer to that goal.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:15 p.m.

Liberal

John McKay Liberal Scarborough—Guildwood, ON

Mr. Speaker, I think that the hon. member glossed over a wonderful opportunity. He is from Kenora. Kenora is an area which at the best of times has difficulties with employment and it is facing unique and specific challenges right now. I would have thought that the member would be a little more upset about the government's approach to employment insurance. This was a wonderful opportunity to actually address that issue, as every economic prognosticator is saying that more and more people are becoming unemployed.

It appears that the government chose a solution which nobody was asking for, namely to load the rear end of the time available, when in fact pretty well everyone was asking the government to shrink the two-week waiting period. Just because one is unemployed does not mean the bills stop. That two week period was an opportunity missed by the government, or it could have brought in some sort of uniform set of hours across the country, because whether one is unemployed in Kenora, Toronto or Miramichi, one is still unemployed.

I wonder whether the hon. member has approached the Minister of Finance and asked him why he missed this opportunity. This could have been a time to actually reform EI in a way that is fair not only to the workers in Kenora but to the workers right across the country.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:15 p.m.

Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, I certainly cannot say anything more than what my consultations were with stakeholders both in my riding and other small places like Courtenay, B.C. and Campbell River, B.C. who told us exactly what kinds of employment insurance benefit changes needed to be made.

It is not my problem that the leader of the member's party had conversations with people in Toronto, Vancouver, Montreal, and as an afterthought in St. John's, Newfoundland, which are all great places. However, I can only bring forward to this House the changes in EI that my constituents and my stakeholders asked for, and these were two of the key changes that they asked for and we delivered.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:20 p.m.

NDP

John Rafferty NDP Thunder Bay—Rainy River, ON

Mr. Speaker, I have a pointed question for the member and I am asking him for his help. I want to preface my remarks by saying that the government believes that northern Ontario begins at about Highway 7 or at the very farthest perhaps Barrie. When the government talks about money for the Trans-Canada Highway I just wonder where it is going to be.

Let me say that I am very glad to hear that a very dangerous stretch of Highway 17 is being fixed. It is a horrible piece of highway and it is a wonderful thing that it is being twinned.

I would like to ask the member if he will insist with his caucus and with the ministers that an even more dangerous stretch of highway in northern Ontario be twinned. I am talking about a stretch of about 100 kilometres between Nipigon and Thunder Bay. Will he work with me to make sure that happens?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:20 p.m.

Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, I share the concerns of my colleague for what is one of the most dangerous stretches of highway in the country. At the same time I would say it is one of the most vital in terms of its link between eastern and western Canada.

As my hon. colleague may or may not know, work on this particular file, specifically the twinning of parts of highways 11 and 17 have always included parts in my riding and his. I can assure him that I intend to work within my caucus to ensure that those places along the highway are twinned and that we continue to work with the province of Ontario to make the highway safer and a more effective way of transportation of goods across Canada.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:20 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

Mr. Speaker, when I hear of highways 11 and 17 being under construction I start to get excited because I travel on those highways on a regular basis, whether it is from Ottawa to North Bay or North Bay up to New Liskeard and they are the most dangerous stretches of highway around.

What has been promised by different governments, and I am not going to point out one colour or another, but different governments have said they would put the money on the table but the provinces have to match it or come to the table. This is the Trans-Canada Highway.

Will the funding be for all the work or will there be a condition that will prevent the work from being done? We have seen where the province does not have all the money and ends up not doing the work or the work does not get done because one of the two partners does not have the money.

We are seeing it in the infrastructure setup right now and many municipalities are complaining about it.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:20 p.m.

Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, I can assure the hon. member that with respect to the twinning of parts of highways 11 and 17, we have worked very well with the Province of Ontario and the Liberal government, particularly with the hon. Minister Gravelle, the minister of northern development and mines.

I can assure the House that we will continue to work with them. We respect and understand the need to work with all levels of government on infrastructure projects, and provisions are specific and clear in this plan to that end.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:20 p.m.

Conservative

Blake Richards Conservative Wild Rose, AB

Mr. Speaker, it is a pleasure to rise today in debate on the budget.

In the lead-up to this budget, the earliest federal budget in recent history, our government undertook the broadest and most comprehensive consultations ever. Our government met with and listened to thousands of individuals and groups across this great country. The Prime Minister, the finance minister and others met with leaders of business and industry and with economists, community groups, provincial and municipal governments, members of the opposition and other stakeholders.

Personally, I spent six weeks travelling throughout my vast and diverse riding of Wild Rose listening to constituents' suggestions and concerns. I held open houses, community office hours, and attended various other meetings and events throughout the riding. Constituents in Wild Rose shared their thoughts with me verbally, both in person and on the phone, by email and letter, and they filled out surveys that we distributed at meetings.

Canadians shared with us their views, their hopes and their wishes for this country and for the budget, and we listened. We have delivered with Canada's economic action plan.

This economic action plan is what is necessary for the circumstances in which we find ourselves today. It is extraordinary action for an extraordinary situation.

The global economic crisis did not start here in Canada, but it is affecting us. While the depth and magnitude of this downturn are broader than anyone could have anticipated, we were certainly prepared for it.

Over the past couple of years we paid down $38 billion on the national debt. We strengthened our financial system. We reduced the overall tax burden on Canadians to its lowest level in nearly 50 years, including cutting the GST from 7% to 6% to 5%.

That is why this past fall the World Economic Forum rated our banking system as among the safest in the world. That is why we entered the global recession later than other countries, why we are not as deep into the recession as other countries, and why we are expected to come out of recession earlier than other countries.

It is also why many other nations are emulating our actions, actions that have been widely viewed as the most prudent course of action leading up to this global economic recession.

We were ahead of the curve and our Prime Minister led the way for the rest of the world. That is why Canada is one of the best positioned countries during these global economic challenges.

Let me now address the decision to run a deficit, as I know there are those in Wild Rose who will be concerned about this decision.

Allow me to be very clear. We are in the midst of an unprecedented global economic slowdown, and we are taking the targeted action that we feel is necessary to stimulate our economy.

Let me be equally clear that this stimulus and the accompanying deficit is only temporary. We fully expect to return to a surplus situation in only a few short years. At that time our priority will be to repay the deficits expected in the next four years.

I liken our present situation to the average Canadian family or small business. When times are tough we must sometimes draw on a line of credit or use a credit card for a necessary purchase. However, when times improve and if we are being responsible, we immediately pay down the credit line and try to set aside money for a rainy day. That is what this government is doing. That is what we were doing when we paid off $38 billion of the national debt.

That is why this situation will be temporary and we will return to surpluses and debt reduction when we come out of this global economic storm.

Our government is taking aggressive action to stimulate the economy with almost $12 billion to improve local and key national infrastructure.

Many of the municipalities in my riding of Wild Rose have been among the fastest growing in the entire country over the last several years. Such explosive growth brings infrastructure challenges, the need for roads, overpasses, water and sewer, recreation and cultural facilities, to catch up with the increase in population. This investment in community infrastructure will help to address these challenges.

This investment also provides the double benefit of addressing community needs while stimulating the economy in the process, providing and creating employment for Canadians, and flowing money through the economy for needed supplies and materials.

I am proud to report that among these projects is the funding to twin the final phase of the Trans-Canada Highway in Banff National Park in my riding all the way to the B.C. border. This is something that I know my predecessor Myron Thompson fought very hard for because I worked alongside him as he suffered through the inaction and indecision and complete ignorance of the former Liberal ministers on this file. It took a Conservative government to finally get action and to get this done and now it will be completed all the way to the B.C. border.

We are also taking action on another pressing need in my riding and throughout Canada, that of housing for seniors. As our population ages, this housing need will only grow larger in upcoming years. Our government is anticipating that need and providing for it now.

Our government is also stimulating housing construction through such measures as increasing the amount Canadians can withdraw from their RRSPs under the first-time home buyers' plan to provide a down payment for their new homes. We are also providing a tax credit to assist first-time home buyers with the costs associated with their home purchases and a renovation tax credit that will assist Canadians in undertaking renovations and improvements to their homes.

This program has already generated significant interest in my riding and, I am sure, across the country. It will be a huge benefit for many Canadian families. This tax credit encourages those who have been thinking about doing renovations maybe now, maybe in the future, to undertake them right now, which again creates the double benefit of helping Canadians with their needs while maintaining jobs and providing stimulus for the economy in these troubling times.

The very best stimulus for an economy is consumer confidence and consumer spending, and that is also the rationale behind our tax reductions, which are aimed at low- and middle-income Canadians, our seniors and our small businesses.

Canada's small and medium size businesses are the heart of Canada's economy. To help support our small business owners and the benefits and jobs they create for our economy, we are not only lowering their taxes but also ensuring their access to financing. Many small business owners in my riding have pointed out to me that they were facing this problem, and I am happy to be able to stand in the House of Commons today and report to them that their concerns were heard and that we are acting to ensure that they have access to the financing they need.

Many business owners in my riding, particularly in the Bow Valley, rely very heavily on tourism. That is why I am proud to report that we have provided funding in our economic action plan to support the Canadian Tourism Commission in marketing Canada as an international tourist destination.

The hon. Minister of State for Small Business and Tourism is leading the development of a national tourism strategy. I will be happy to support her in those efforts. The most internationally known tourist destination in all Canada is the picturesque Banff National Park, which is in my riding. Our government has recognized the importance of our national parks in our tourism strategy by providing significant funding for improvements and enhancements to Parks Canada's visitor facilities.

Just as the Bow Valley relies on tourism, so do many parts of my riding rely on agriculture as a major part of our economy. Through many actions, including items contained in this budget, we are supporting our farmers. This support includes providing $500 million for an agricultural flexibility program that will support innovation in the industry. We will help to make credit available for new farmers and to help support farmers in transferring the farm to the next generation. This is an important first step in helping to ensure the future survival of the family farm.

We have listened to the calls from the livestock industry in providing funding for increased slaughter capacity here in Canada.

Together we face a global economic crisis that did not originate here, but which is affecting us and will continue to affect us. Through the actions taken by our government to prepare us for these times and through our economic action plan, with the help of all Canadians we will weather this storm and come out of it stronger than ever before.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:30 p.m.

Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, I commend my seatmate on his extraordinary and eloquent presentation on behalf of his constituents.

He remarked in his speech that he was concerned with the demands on municipalities. This robust infrastructure initiative in our economic plan involves cooperation from all levels of government. Could the hon. member describe additional measures the government is going to take to safeguard and ensure the ability of municipalities to grow stronger communities as a result of this economic plan?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:30 p.m.

Conservative

Blake Richards Conservative Wild Rose, AB

Mr. Speaker, certainly the hon. member is well aware of the infrastructure funding provided in our budget.

We are also making available up to $2 billion over two years in direct low-cost loans to municipalities to help finance improvements related to housing infrastructure and such things as sewers, water lines and other regeneration projects in our neighbourhoods. Municipalities will have access to this significant new funding through provincial, territorial and municipal infrastructure initiatives.

We are doing a lot to provide for municipal infrastructure in terms of providing both funding and loans to municipalities to ensure that they have the resources to deal with the infrastructure challenges they are facing. Because of the explosive growth we have had in my riding, we certainly face many of these challenges. It is an honour to say that we will be helping those municipalities with those needs.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:35 p.m.

Conservative

Rick Norlock Conservative Northumberland—Quinte West, ON

Mr. Speaker, I too would like to congratulate the member on his presentation here today.

Could he contrast what we are doing during these difficult times with what occurred about 10 or 15 years ago, between 1993 and 1996, when the country experienced a downtown and the federal government dealt with deficit times? Could he contrast the differences in approach to health care spending, to social transfer payments, to the writing down of assets, to the employment insurance fund, and to many areas of our relationships with the municipalities and provinces, including the many municipalities that have been asking us outright for many dollars and are prepared and anxious to partner with us in the delivery of those things?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:35 p.m.

Conservative

Blake Richards Conservative Wild Rose, AB

Mr. Speaker, there is a very stark contrast between the approach of our government and the approach of the previous government in those times.

The first thing I would draw to members' attention would be the fact that our government undertook to deal with the situation very quickly and in consultation with many groups and individuals across Canada. We listened to Canadians and took action based on what we were hearing from them.

Another very strong contrast between the actions we have taken is that the previous Liberal government chose, at that time, to slash funding to health care and to other payments to provinces. That was done on the backs of the provinces. Our government has chosen instead to try to stimulate the economy through spending and through working with provinces and municipalities in a partnership to deal with the times we are facing. That is how our government has approached it. Rather than trying to put it on the backs of other levels of government, we have worked with them to try to get through these tough times.

We have also provided tax credits and tax cuts for Canadians to help them stimulate the economy through consumer spending and consumer confidence. That is the difference between the action our government is taking and the action we have seen on the other side.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:35 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, I will be sharing my time with the member for Chambly—Borduas.

In my opinion, this budget is a missed opportunity. We had a chance to help the most vulnerable members of society through the economic crisis, strengthen Quebec's economy and invest in forestry and manufacturing, the industries that are in crisis in Quebec. We have been talking about this for years.

According to Statistics Canada, between December 2007 and December 2008, my riding alone, Trois-Rivières, lost 3,200 out of a total of 69,000 jobs. The people in my riding are hurting, and we were really hoping this budget would offer at least some solutions to the economic crisis. It was vitally important to my constituents. When plants close, there are mass layoffs and people lose their jobs. It is truly devastating, and it is incredibly discouraging. But instead of offering solutions, this government turned its back on Quebec, and the bulk of the federal assistance went to Ontario and the auto industry.

The Bloc Québécois had proposed a number of solutions to this crisis as early as last November. But for purely partisan reasons, the Conservative government rejected these proposals,which promised a better future for Quebec. In addition to amending the equalization formula without consultation and creating a single securities regulator, this budget leaves Quebec's forestry and manufacturing industries in the lurch. MPs from Quebec are going to have to choose between Quebec's interests and Canada's.

Quebec's industrial base is different from the industrial base in the rest of Canada. The federal government had a duty to support Quebec's economy in these tough times. It did not. This budget is clearly anti-Quebec, and it misses the mark.

As far as natural resources are concerned—one of my concerns as a critic—I would like to speak about the forestry sector. This budget afforded the government a golden opportunity to help the forestry and manufacturing sectors. The forests are important to Quebec, with in excess of 200,000 direct and indirect jobs on which whole communities depend. In the Trois-Rivières et Mauricie region alone, thousands of jobs depend on the forests. There is no help for them in this budget. In fact, compared to the $2.7 billion allocated solely to the auto industry, concentrated in Ontario, the $170 million for the forestry industry seems mightly slim. It is clearly inadequate and unacceptable.

As well, of that $170 million, $10 million is earmarked for the promotion of “Buy Canadian” in foreign lumber markets. What can that mean to a company incapable of generating any profit because it has been strangled by one crisis after another for the past five years? What those companies need—as we have said on numerous occasions in this House—is repayable loans and loan guarantees to upgrade their equipment. The federal government's mission is to enable these companies to modernize in times of crisis in order to improve their productivity on the international stage and enable them to recover when the economic situation improves. Yet the conservative government has abandoned the Quebec forest industry.

When this industry has been hit by one crisis after another since 2004, such as the softwood lumber dispute, the forestry crisis, the drop in U.S. demand, and now the financial crisis, the federal government should be helping it get back on its feet. Instead it has done nothing.

A reading of this budget clearly shows that funding to the Quebec forest industry is a joke. This is a glaring example of the Conservative government turning its back on Quebec.

The Bloc Québécois is attempting to rectify some of this with the amendment to the amendment put forward in the House today.

Let us talk about equalization. The amendment to the equalization formula, without consulting Quebec and the provinces, is an insult to all Quebeckers. This amendment will cut $1 billion from equalization payments to Quebec this year.

Need I remind hon. members that it is the Government of Quebec that provides health services and education, the cornerstones of a healthy economy? A shortfall of $1 billion this year will leave Quebeckers on the hook. The budgets of schools, hospitals and all front-line stakeholders will be cut. That is unacceptable for any Quebec MP.

Once again, just like when the Liberals were in power, the federal government is transferring its problems to Quebec. This clearly illustrates that the fiscal imbalance has not been resolved.

The National Assembly has unanimously voted against this “one-way federalism”. For that reason and as defenders of the interests of Quebec, and of Quebec alone, we will vote against this budget.

It is evident from this budget that recognition of the Quebec nation is but an empty shell devoid of any meaning for this government.

The budget indicates that they want to move forward with a single securities commission in Toronto. We find that unacceptable. To top it off, this government is even considering going to the Supreme Court to interfere in a matter that is strictly the jurisdiction of Quebec. And yet, the current system is working very well. It has been held up as an example by the OECD. The current way of doing things works well. The passport system, like the European system, allows for a co-ordinated approach in the application of legislation, a uniform and pan-Canadian protection of investors. Why dismantle what works?

Creating a single securities commission would result in a regulatory monopoly in Toronto. It would eliminate from the current system the advantages of regulatory competition. This system, which is working well, would work even better if Ontario decided to not go it alone and joined Quebec and the provinces that have already come to an agreement on this matter. The reason for Ontario's refusal to cooperate is quite simple. Like Ottawa, the province wishes to centralize all regulatory matters in Toronto. It is as simple as that. Calling for better protection is tantamount to stating the existing commissions are not doing their job. That is absolutely false.

The presence of the 13 regulators ensures that the creation and implementation of regulations will take into account the diverse opinions and ensure adequate representation of small markets. This structure has even allowed for innovation, both in Quebec and in western Canada.

The OECD has ranked Canada second when it comes to securities regulation. The World Bank also described as Canada a leader in the field. This recognition also reflects on Quebec, which, through the Autorité des marchés financiers, contributes to Canada's excellence. Why would the federal government want to change a system that works, that is held in high regard around the world, and that allows efficient and effective protection of financial operations in Quebec and Canada?

The Bloc Québécois will strongly oppose the creation of a single, centralized securities commission in Toronto, and it fully supports the Autorité des marchés financiers du Québec.

Several things become clear upon reading the budget. First of all, the Conservative government has decided to ignore Quebec's demands. Instead of helping Quebeckers, this government decided to divest them of significant resources to deal with this crisis, particularly by cutting off $1 billion in equalization payments to Quebec beginning this year, and by going ahead with its plans for a securities commission.

Compared to the $2.7 billion given only to the auto industry, which is centred in Ontario, the $170 million for the forestry industry seems paltry. Clearly, it is not enough. And what are we to say about the fact that this same government will not uphold the rights of women to settle pay equity issues in court?

For all these reasons, we will vote against this budget and we are proposing this subamendment, which reflects the unanimous demands of the Quebec people and the Quebec National Assembly.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:45 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Mr. Speaker, when the folks in my riding of Hamilton East—Stoney Creek looked at the budget, we were struck by the dollars that were supposed to be available to municipalities for infrastructure. The concern in our area is for the water treatment plant that is in desperate need of upgrading. We are talking in the area of $100 million. The Province of Ontario has said that it is in for $100 million but if we are talking about matching funds it makes the project almost unfeasible for Hamilton. I am sure many municipalities across the country, particularly Quebec, are asking the same question.

Could the member tell me what she has heard in regard to those kinds of concerns and the responses they are getting?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:45 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, I would like to thank my colleague for his question. There is no doubt that this is a big concern for us and for our municipalities. Let us not forget that our water systems, among other things, are very old. A lot of our aging infrastructure needs upgrading. It is not at all clear that municipalities will be able to cover 50% of the cost, given their shrinking tax base. Right now, houses are being sold, home values are dropping and businesses are closing. That means that it will be very difficult for our cities to do this work.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:45 p.m.

Bloc

Yves Lessard Bloc Chambly—Borduas, QC

Mr. Speaker, I would like to begin by congratulating my colleague from Trois-Rivières for having communicated our party's position so clearly. I know that because of our time limit, she did not have time to discuss one point in her remarks: what happens to people who lose their jobs.

There have been job losses in her region too. Does the fact that about 60% of unemployed workers are excluded from the system have repercussions in her riding? Would people have welcomed measures to improve access to the system right now?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:50 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, I did not have time to talk about employment insurance issues. I know that my colleague from Chambly—Borduas will do a much better job of it than I because it is his specialty.

However, it is clear that eliminating the waiting period would have made a big difference in my riding. Some families have to wait as long as a month before getting any help. Improving the employment insurance system and the program for older workers who lose their jobs during massive layoffs should have been a priority because a lot of the people in my riding are dealing with these problems.

It is a real tragedy that some people who have contributed to employment insurance their whole lives get no support. Families, especially children, end up paying the price. We often hear that the reason we still have poor children in Canada is that we have poor families, and that is tragic. The government should have done something to fix that.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

5:50 p.m.

Bloc

Yves Lessard Bloc Chambly—Borduas, QC

Mr. Speaker, I must again congratulate my colleague from Trois-Rivières. In my opinion, she has explained my party's position very well, so I shall try to avoid going back over what she has addressed. I will, moreover, try to demonstrate in my speech that something rather intriguing has been going on here. I will take my cue from the reaction other parliamentarians, coming from parliaments in other countries, would have if they came here and tried to understand what is happening just now.

There is a party in power, a party that in November presented an ideological and highly partisan economic statement, which provoked a reaction in the majority opposition, which then created a coalition, and that in turn created the situation we have experienced: the highly arbitrary prorogation of the House. In other words, the Queen was asked to keep the elected representatives out until the government could redo its homework.

We ended up with a coalition of Liberals and New Democrats, supported by the Bloc Québécois. I mention this because it enabled us to understand the position of each party in opposition with respect to its commitments to their constituents.

The platform on which that coalition was based is still to this day the platform embraced by the Liberals. I would say that it has also generated consultations by the Conservatives themselves. I have a summary here that gives an overview of that, and there are more available. The newspaper that covers the riding of Lévis-Bellechasse is called La Voix du Sud and the member for that riding reports that he consulted the public. We believe this because it was reported in the media. This consultation reveals that the people in his riding told him just about the same thing that we have been saying here: improvements need to be made to employment insurance and accessibility to it.

He was even told that the number of hours to qualify for benefits should be 360. And he was told that the waiting period needed to be done away with. That is what he heard from them and that is what has been said by the Liberals, the NDP and ourselves. The Conservatives have said it, too. They heard it from us here. We even told them that the guaranteed income supplement needed to be indexed and that the seniors who had been cheated out of it needed retroactivity.

None of this is reflected in the budget. Yet we are told that the budget was based on the consultations that had been held. I have heard our Liberal colleagues say the same thing in this House. They also confirmed their intentions in the coalition platform. What is more, the Liberals have criticized the government for tabling such a budget, yet they are saying that they are going to vote in favour of the budget.

If I were a parliamentarian from another country, sitting here listening to this and watching this, I would wonder what was going on. Do these people represent their constituents or not? What are they playing at? In light of the mandate given to them by their constituents, do they have a responsibility to come into this House and do what they say they are going to do?

In November, the Conservatives delivered an ideological throne speech and an ideological economic statement. They wanted to come up with a slightly more progressive budget. Today, the Liberals are talking like progressives, but they are going to vote with the Conservatives.

People are understandably confused and no longer know who to trust, because the Liberals and the Conservatives are all the same. It is true that they are all the same. They all vote the same way when it comes to attacking fundamental rights. It is a fact. The government has eroded women's rights and workers' rights. Workers in Quebec do not have the same rights as workers in other provinces. For example, the government is injecting money into the auto industry in Ontario. It is right to invest in this sector. We are not saying that these people do not deserve support. But if they deserve support, then logically, the government should make the same commitment to Quebec and take the same steps to help such important sectors as manufacturing and forestry. There can be no double standard. The same logic should apply to parliamentarians here. They, too, should walk the talk, especially our Liberal friends.

The same is true of culture, which my colleague talked about. The government has made cuts that have affected our artists' ability to perform on other stages, in other countries. The government is going to provide funding so that foreign artists can come here to share their culture with us, but our artists do not have access to funding for the same purpose.

Concerning the national securities commission, what reason is there to abolish something or make it more fragile when it is working well, other than the desire to centralize and create an economic power concentrated in Toronto?

As for low-income families, the Liberal Party has made them one of their pet issues. It said that we should help the weakest, the poorest, in our society. We see that this budget contains measures that will support the wealthiest in our society.

I will finish by speaking about employment insurance. My colleague spoke about it. Something quite dramatic is happening. Not only do our federal friends here not want to introduce measures that would allow workers who have lost their jobs to have access to employment insurance benefits, but the budget would lock things up so tightly that we would not be able to implement any improvements. For one thing, rates are being frozen at the lowest level we have seen since 1982. That is rather odd. However, it is one of the messages heard in every riding, even those represented by Conservatives. Earlier, I read the summaries of their consultations. Our Liberal friends have made it one of their pet issues and, today, they will vote in favour of the budget, a budget that will block any possibility of improving employment insurance benefits and, above all, accessibility. In fact, 60% of people who lose their jobs cannot access employment insurance benefits. It is a major problem and it is one of the measures that is impoverishing our society and the people who are already struggling without jobs.

I am speaking particularly to my colleagues from Quebec. I am inviting them to vote in favour of the Bloc's subamendment in a few minutes. It will give them the opportunity to respect the will of their constituents.

This is the opportunity the Liberal member was alluding to when he asked the member from Kelowna—Lake Country why they did not take the opportunity to improve the employment insurance system. How could it be that he and his party missed that opportunity? Now we are giving them that chance. They simply have to vote for the subamendment.