Debates of Oct. 6th, 2009

Economic Recovery Act (stimulus)

[Ben Lobb, Conservative, Huron—Bruce, ON]

Mr. Speaker, with respect to the tax credit for first time homebuyers, I would suggest that all first time homebuyers will be able to take advantage of it because they will submit their claim through their taxes. I am sure he is relieved to hear that.

The home renovation tax credit is a popular program. I would just like to give a little commentary on what it means to the people of Huron--Bruce, the riding which I have the good fortune to represent. There is a tremendous number of hardwood bushes throughout my riding as well as a tremendous number of small sawmills, kilns and two manufacturers of hardwood flooring that use local hardwood.

This is just an example of the absolute effectiveness of the home renovation tax credit. It is very vertical. It helps the forestry worker by purchasing logs; it helps the mill and the manufacturer; and it benefits local consumers with a terrific made in Canada product.

[Patrick Brown, Conservative, Barrie, ON]

Mr. Speaker, the Liberals have not mentioned what they would cut differently. The last time there was a recession they cut transfer payments to the provinces by 40%, a tremendous hit on health care in Canada. I wonder if the member for Huron—Bruce could tell us if he thinks this might be one of the areas that the Liberals would ravage and once again use their time in government to attack those most in need.

[Ben Lobb, Conservative, Huron—Bruce, ON]

Mr. Speaker, I am proud to report that in our budget we stood up for Canadians. We continue to make investments in our health care system by increasing our health care transfers. We also made tremendous investments and commitments in standing up for Canadians by increasing our social transfers to the provinces.

This is a government that is not going to do what the Liberal government did in the nineties which slashed and burned to balance the budgets. We are investing in Canadians because we believe in Canadians.

It is just a real unfortunate thing that the Liberal Party has failed to support the home renovation tax credit by voting against it. In my short time as a member this is quite likely the most popular and effective initiative a government has taken and all of a sudden the Liberal Party has voted against it.

Obviously we are disappointed on this side of the House. We are focused on the economy. We are delivering results for Canadians and that is what we are going to continue to do.

[Tony Martin, NDP, Sault Ste. Marie, ON]

Mr. Speaker, I know from the hon. member's participation in the human resources, skills and social development and the status of persons with disabilities committee that he has a very sincere interest in ensuring that we are doing things as a Parliament for those who are vulnerable and most at risk.

Some of the feedback I am getting with regard to the home renovation tax credit is that there are many people who pay a small amount of taxes or already get back the maximum in terms of rebate on the taxes that they pay. They claim that even though they have already gone ahead and done these renovations, many of them seniors on fixed incomes and people on disability programs, they have begun to see the roll-out and determined that it is actually a non-refundable tax credit that they may not benefit at all.

Is there any truth to that? Can the member clarify that and what do we say to those folks who have already gone ahead on goodwill and were excited about this initiative that they thought would be helpful to them as they tried to fix up their houses, particularly where energy efficiency was concerned, and now they are finding that they may not benefit from it at all?

[Ben Lobb, Conservative, Huron—Bruce, ON]

Mr. Speaker, I am not sure if the member is aware of the program that is available to individuals such as he mentioned, but there are a number of excellent programs through CMHC which his constituents can look into for seniors, so that they can stay in their homes longer and for Canadians who have a disability, to allow them to stay in their homes longer. If he were willing to contact my office, I would be willing to show him where it is.

The department of human resources continues to deliver results for Canadians. Our office has worked with a number of constituents in Huron—Bruce to help seniors and those with disabilities stay in their homes and we will continue to deliver those results.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, I am pleased to participate in this debate on Bill C-51, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures.

I took the opportunity to attend the briefing session provided by the finance officials. There were a number of people there. I found it very interesting and found myself put at somewhat of a disadvantage. As we walked in the door we were given a copy of the draft bill, which is the bill now before us, to see it for the first time. There were no other briefing notes. There were no other documents that would explain why changes were being made. It was not about the precise words, but it was to indicate to the members the reason why this is being made.

Very often, the Library of Parliament will prepare briefing notes for members so that they can fully participate in debate from knowledge rather than from ignorance. I think it is very important. When we get important bills and initiatives from any government, accountability requires that it must explain or justify its words, actions or decisions in a manner that is true, full and plain.

That accountability has to not only happen after the government has done something but before it has done it and when it anticipates it should be done. People need to be informed about where a government is going and why. They need to be given an opportunity to prepare themselves. Members need to prepare in a reasonable fashion for debate in order to understand the nuances. Legislation is complex. This is basically an omnibus bill because it touches so many different acts.

With regard to this budget implementation act, in addition to the various credits and amendments in terms of the Income Tax Act, we also have changes to the Bretton Woods and Related Agreements Act, the Broadcasting Act, the Canada pension plan, the Canada Pension Plan Investment Board Act, the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act, the Customs Tariff, the Financial Administration Act, the Public Service Superannuation Act, and the Bankruptcy and Insolvency Act.

If members were expected to somehow comment on this bill, it would be extremely difficult in the little time that is allocated to individual members to make reasonable contributions to the whole act. One will notice that a number of the members take aspects of the act that they are somewhat familiar with and have something specific that they would like to provide input on.

It may be with regard to the home renovation tax credit or the Canada pension plan. I know that hon. members have received a lot of input on that. I think that most people would concede that allowing Canadians the opportunity to invest in their homes is a good thing because it does create jobs. That kind of improvement is a good thing to happen.

However, as I followed the debate, there seemed to be a big question about relevance and whether or not talking about the broader picture was relevant to the debate and in fact in order. I submit that this budget implementation act is pursuant to a budget. The budget is the government's vision, outlook and proposals to address the condition of the country.

We know that we are in a recession. We know that unemployment has risen to record levels. We know that the deficit, being the shortfall of cash inflows versus cash outflows, is growing to the highest level it has ever been in our history. It is around $60 billion and it is expected to go much higher.

When we talk about a budget implementation bill, we are really talking about the budget, which is really talking about the government's plan to address the realities of a country.

It is very relevant for members to say that this bill, which is in part what is included in the budget, is part of something that some members believe is not the right track to deal with the problems facing the nation. It is not the right track with regard to saving current jobs or to promote future jobs in areas where there is the highest probability of creating jobs. It maybe does not hit the mark when it comes to dealing with a plan to get the country out of deficit over the long term.

The previous speaker talked about a prior Liberal government. His description was that it slashed and burned and all other good things. That is good rhetoric, but if the member were accountable to the House, he would have been truthful and plain about the facts. The facts are that in 1993 the then Liberal government inherited a $42 billion deficit and a debt-to-GDP ratio that was terrible compared to what it is today. It meant one's ability to deal with it was terrible.

I can remember asking Paul Martin at the time about our strategy to balance the budget within a reasonable period of time. That first happened in 1997 and for 10 years since then there were balanced budgets, in fact tax cuts and the restoration of other cuts.

The question I asked him was how we explain to Canadians that this is the right approach to deal with the economic reality of the country. He said he had to impose cuts right across the board and the federal government would be the worst hit. The public service really took a big hit, Canadians took a big hit, our health care took a hit, and the provinces took a hit in terms of the transfers for social services and health care costs. He told me that he had to cut 20% to save the 80% left, and once the government could stabilize the situation, just like a doctor dealing with a patient, then it could build back.

There was a lot of pain and nobody is going to doubt that. However, we should understand that the books were balanced and the financial integrity of Canada was restored within three years from a $42 billion deficit inherited from Brian Mulroney. That in fact carried over to the current government, which took over in 2006.

I have forgotten what the deficit was at the time. The election was in January 2006, Parliament did not start until April, the cabinet was not even formed at that time, and I believe the surplus for the year ended March 31, 2006, was some $17 billion. The current government inherited not only balanced books but a surplus, which allowed it latitude and flexibility to be able to continue to offer tax cuts to Canadians and also to restore program funding, where necessary, to meet the urgent needs of Canadians.

I do not apologize for what happened there. When one has a terrible situation, one has to make tough decisions. Paul Martin always said that government is about making tough decisions.

I never judge a government by what it does when times are good; I judge a government by how it responds when things are going bad. That is important for individuals as well. It is really easy to boast when everything is rosy, but what happens when it hits the wall? How do people show composure, professionalism, knowledge and wisdom to address a situation in the most appropriate fashion? Those are the kinds of things we are talking about.

I cannot talk about everything in this bill, but I went to the briefing session. I was sorry we did not get the briefing notes from the officials. They had panels come forward on each and every one of the items that are dealt with in this implementation bill. I wish they had given us their notes. They had notes, because they explained it to us. When I asked if I could have the notes, they said I would have to write my own from whatever they said. That was not very helpful and I did not think it was very accountable, but so be it.

I talked about and asked questions about the home renovation tax credit when it first came out in the budget. I had to read it a couple of times because there was one aspect, and this will show how members of Parliament may have input into important legislation such as this for our country.

I noticed that the home renovation tax credit, as it said in the initial language, was available to the registered homeowner or joint owners of that dwelling. What if we had a situation where there was a couple, the stay-at-home spouse brought the house into the marriage and the other spouse was the working spouse, but when they got married they did not change the registration to both of them? That means that the registered owner has no income and the home renovation tax credit would not be worth anything to them because they have no income taxes payable to which to apply a tax credit.

I immediately sat down with the finance minister and raised it with him. It was kind of interesting. He did not realize it. He said that it was not the intent and there was family law, division of assets and all that other stuff. One of his responses to me, and I do not think he will mind if I share this, was to ask whether I really thought the Canada Revenue Agency would check the registration of households before it gave out the credit. Probably not, but I was kind of hoping that the finance minister would not even make such a flippant remark, because our legislation has to be grounded and rooted in sound decision-making elements and facts.

With regard to the home renovation tax credit, I wanted to inform my constituents, so I did a householder on it, laying out generally how it works. I talked about the dwelling, which could be a house, a cottage or a condominium. Renters would not be able to do anything. It was not clear to me, and I said it would have to be checked out, whether a person operating a business out of a home would qualify or whether there would be a reduction of the credit otherwise available. Then I saw that if two families shared the same dwelling, each would get one credit. These are the kinds of things I was letting them know about. I gave them some examples of eligible expenditures. I wanted to be sure that they knew that furniture and appliances and the purchase of tools, et cetera, would be ineligible expenses and not applicable for the credit.

I also indicated to them that these expenditures had to be made in a period after January 27, 2009, and before February 1, 2010, pursuant to agreements after January 27, 2009.

It is family-based. People should know that. It is important. That means one family gets a chance to do it, and a family includes children who are under age 18 at the end of 2009.

It does raise the question, though, that if a person has a child who is over 18 years of age and living in that dwelling, who has his own room over the garage, whether he can renovate his room and claim his $1,350. He is not under the definition of family, but he certainly is a taxpayer. I am told that children sometimes do come back to the family home. To anybody who is in that situation I would suggest that they might want to consider, if they have a child over 18 years of age who has some designated area of the house that is his or hers, whether maybe he or she could qualify for this credit. It would be an interesting challenge to the Canada Revenue Agency.

I also dealt with the fact that people can do the work themselves or have others do it. This will probably surprise and maybe annoy some people who do not have disposable income to spend on renovations at this time, but the first $1,000 of the eligible expenditures does not qualify for any credit. The first $1,000 is on a person's own ticket. So it is the amount after that. That means that expenditures after that, up to an additional $9,000, qualify for the 15% non-refundable tax credit. The person actually has to spend $10,000, and the last $9,000 is what is eligible for the credit.

Non-refundable means that it will be applied against taxes otherwise payable. If people have no taxes payable, it does not matter how much non-refundable tax credit they have, they do not get any refund.

People should understand that if there is any way to generate income in 2009, knowing that they will have unused credit, that would be a good thing to do. So they may want to crystallize some investments or whatever.

I also gave them some contact information, because I think there will be a few questions and perhaps a few peculiar situations that people were not aware of. I do encourage Canadians, if they do not remember any phone numbers, to just remember 1-800-O-Canada. That is the main number and will get them to whomever they have to speak to in order to get answers to questions.

Also at this briefing session I had a chance to engage the officials with regard to the CBC. When we mention the CBC in this chamber, Canadians get nervous. We know that. The CBC has had a very significant challenge. There are some who do not believe the CBC should be getting any funding from the Government of Canada. They believe it should compete with others on its own merit. I certainly do not hold that view.

We have a national broadcaster that holds this country together. It is probably, other than our health care, the only thing that keeps us all together. Whenever the CBC has gone on strike or had lockouts or that kind of stuff, Canadians en masse have told parliamentarians, “Deal with it; I miss my CBC”.

Well, the CBC is going to be authorized to borrow $220 million, up from $25 million. I asked whether they could give me more details as to why they are doing this and what it relates to. It basically has to do with properties that the CBC owns that it is not using for its own purposes, so it is leasing them out and getting lease revenue.

If people have an annuity, being lease revenue coming in over this period of time, it is worth something and they can present-value it and discount it. They can in fact go to a financial institution and it may buy it from them. It will buy that right to receive those future payments for a lump sum today.

That is exactly what this is about. It is basically monetizing an asset, a stream of income. That means that the CBC is going to have the cash it needs today to address the severe the problems it has and the challenges, because in down times the CBC has trouble raising advertising revenue as well. It also has to make job cuts and has done so.

The concern, though, and I think many Canadians may agree, is that if the CBC is basically selling assets to take care of today's bills, what it is really doing is mortgaging its future.

My immediate reaction was that the fuse has been lit to the future privatization of CBC at fire-sale prices. It concerns me, and we have to watch this.

Finally, I want to talk about what the member for Huron—Bruce was talking about. I think his words were that we want to save jobs, we are saving jobs today, managing the economy for jobs for tomorrow, boosting the recovery and promoting economic stability.

I think those are laudable objectives. However, I can tell members that when we look at the unemployment line hurtling toward 10% and then look at the words the Conservatives said, that they want shovel-ready infrastructure projects to save today's jobs and to provide jobs in those areas that have the highest prospect of growth, “shovel-ready” to everybody in Canada means that as people are losing their jobs or that curve is starting to go up, they need to have those projects going.

What has really happened, and it is a real shame, is that the infrastructure cash, the cheque to the people for these projects, has not happened, has not tracked with the unemployment curve, and therefore, the job need. They have missed the boat.

I think the government has failed miserably on the infrastructure program, and I hope Canadians will understand it appears that it really did not want to inject stimulus at all in the first place.

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, we all understand that the Liberal leader has lost confidence in the Conservative government, but based on the ramblings of the member's speech, I think the Liberals have lost confidence in the integrity of Canadians, which is very shameful. Indeed I doubt that they ever had confidence in us.

However, the issue now before the House is the current bill, Bill C-51, which addresses the economic recovery for Canada.

The Liberal leader says he would enact these measures but only after an election. The fate of Bill C-51 is not in question. It is going to pass.

Why will the Liberal members not demonstrate their resolve to get Canada moving as quickly as possible by voting for Bill C-51? Why will they not join all members of this House and put Canada first?

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, as I indicated in my speech, and maybe the member missed the beginning of it, the budget implementation act deals with parts of a budget. It is the budget that is the plan.

[Mike Wallace, Conservative, Burlington, ON]

He supported it.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, I will answer the question if he would stop yelling at me. The member for Burlington is a chronic whiner, for Pete's sake.

I really think it is important to take it in the context that I put it. When we deal with a budget implement act, we deal with the budget and the government's manner in which it plans to address the problems of the nation.

The Liberal Party has lost confidence in the government's ability to address the economic recession, to address job loss, to address recovery, to address the elimination of a $60 billion deficit. That is non-confidence. It is directly addressing this bill.

I love some things in the bill, but we cannot just say we like some things so we will take everything else. On balance, the package does not meet the requirements that Canadians have of their government.

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

Mr. Speaker, unlike the member for Burlington, I enjoyed the speech from the member for Mississauga South.

I have noticed that he does not necessarily follow the Liberal line and the Liberal caucus on a number of bills. I know on Bill C-23, the Canada-Colombia trade act, he has some independent thought on it as he has on some other bills. I admire him for stepping out of the box a little and not blindly following his caucus. As well, he was the only Liberal member not to say how he would vote on the bill. He spent some time talking about the issue of relevance.

I appreciate the fact that there is some latitude given here, but the members have to deal with Bill C-51 at some point during their speeches. That is what we are dealing with at this point.

I suspect he is like the person looking through the department store window. He really wants to be on this side on this issue, but he has to stand up to his caucus and say so.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, first, I thank the hon. member for his kind words. I appreciate it very much. We are under a microscope at all times. We will leave this place one day and I know all hon. members want to leave here with their good names intact. I know we are all trying to do that.

I do not want to repeat what people have said, I want to be able to add to what has been said.

I was elected a member of the Liberal Party. I am a member of the Liberal caucus. We have a very large tent that embraces all kinds of thinking. Just like a cabinet, which never has unanimity on everything, once we take a decision, part of the rules of the game is we are all then together.

Now we are faced with this implementation bill. I am not happy about the CBC provision. I am not happy about the Canada pension plan provisions. People under 65 who take early retirement will get a lower pension. People who defer it past age 65, those who do not really need the money, will get a higher pension. It makes no sense to me.

The home renovation credit is important. It is a good initiative, one little initiative that will promote stimulating jobs, but there are already cases about some nasty people out there who represent themselves as home renovators but have no experience. There will be some nasty stories.

I will not support it, not because of any issue other than I do not believe it is part of a reasoned approach to address the problems that Canada faces.

[Chris Warkentin, Conservative, Peace River, AB]

Mr. Speaker, I want to tie into the final comments made by the member opposite.

I listened with interest to his speech. He made some interesting points. I would first like to address his comment with regard to judging a government based upon what it doing during the bad times.

It is newsworthy, and maybe the hon. member has not heard, but today the Canadian finance minister will receive yet another international award. He is going to be in Istanbul to receive an award being presented to him by Euromoney magazine. He will be accepting this on behalf of the Canadian government. They are recognizing him as the finance minister of the year, recognizing what this government has done during tough times.

The World Economic Forum has indicated that Canada will lead other countries out of this downturn. We see the same type of analysis from the IMF.

I appreciate that the hon. member will judge a government by what it does during the hard times. Clearly he will join the ranks of the international community in recognizing that Canada is leading on this front.

However, in answering the last question, he went after home renovators. He said that there were some nasty people out there. I would give the member the opportunity, because I know he has plenty in his own riding, to withdraw that comment.

[An hon. member]

He is right.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, let us deal with the last one first. An NDP member just said “He is right” and I stand by it.

When we have an over-demand for services beyond well-established, reputable home renovation firms and experienced people, a lot of unemployed people go out and represent themselves and they do some shoddy work. If members ever watch Mike Holmes, they know that it happens in our world. I raise it as an issue that people should be cautious and check out the people.

If the member believes that the award going to the finance minister by Euromoney magazine in Istanbul is an indication that we are making our goals and everything is beautiful, he should look at our almost 10% unemployment rate, only 12% of infrastructure money getting out in cash and a deficit at the highest levels that we have ever had.

I do not understand where the member gets his ideas. He really should look at the facts. The facts are we are in deep trouble.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I agree with him that the home retrofit program is not beneficial to everybody, but it is beneficial to some people.

Would he not think that it would have been better if the Conservatives has tied that in to greener housing and the retrofit strategy as opposed to allowing people to build docks, which does not really do much to contribute to a greener environment?

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, we have to ensure that we hit our first target squarely, and that is to create jobs.

The second target is one that I had the occasion myself to experience. I went to Home Depot. I wanted a new garage door because it looked really bad due to my son shooting hockey pucks and other things against it. We had to replace it. It wanted me to get an insulated door because I would get a higher credit. That is great, but my garage is not insulated.

I understand the member's point and she is quite right. If we can hit two targets with one bullet, go for it.

[LaVar Payne, Conservative, Medicine Hat, AB]

Mr. Speaker, it is my privilege today to speak in support of the economic recovery act at second reading. The recovery act would implement key measures in Canada's economic action plan and other vital initiatives that would help to secure a strong recovery and protect jobs. Key among these measures is a set of important tax cuts that would support individuals and businesses right across Canada.

To begin with, this act would implement the temporary home renovation tax credit, or HRTC. The HRTC has proved enormously popular with millions of Canadians who will be able to receive up to $1,350 in tax relief on eligible home renovations completed before February 1, 2010. The temporary nature of this tax would provide an immediate boost for Canadians to take on new renovations or speed up already planned projects.

The HRTC is encouraging Canadians to invest in the long-term value of their homes and is increasing the demand for labour, building materials and other goods and services, helping to create more jobs and stimulating our economy when it is needed most.

Do not take my word for it, listen to the feedback we are hearing from right across the country.

Robert Dutton, Rona president and CEO, cheered:

We are happy to see measures such as the Home Renovation Tax Credit being implemented as we believe they will help stimulate the Canadian economy....This initiative directly benefits consumers and the industry while also helping save Canadian jobs.

Paul Straus, Home Hardware CEO, gave the HRTC a big thumbs up. He said, ““That’s been a big help to many of the retailers and certainly we’ve benefited from that”.

Canada's premier celebrity contractor and television personality, Mike Holmes, heralded:

Most homeowners have heard by now of the home renovation tax credit, and many are taking advantage of it. The idea of the tax credit is to stimulate local economy by keeping contractors working and keeping building supply retailers busy. It's a win-win: Invest in your home, and invest in your local economy.

Moncton Times & Transcript columnist, Alec Bruce, said:

—Home Renovation Tax Credit (HRTC)...is arguably the smartest piece of micro-economic policy this government has yet written....This is precisely how the government stimuli should work. By providing incentives to improve the value of the most important assets most people ever own--their homes--the feds guarantee that public money flows back to communities and neighbourhoods, employing skilled tradesmen and women and leveraging private credit markets.

The Ontario Home Builders' Association, president Frank Giannone, heralded the measure, noting:

—renovators are also witnessing positive trends with increasing consumer interest as a result of the federal government's Home Renovation Tax Credit.

Building Industry and Land Development Association president Stephen Dupuis gives the HRTC his stamp of approval. He said:

There's no question that the renovation tax credit has been the most effective stimulus spending initiative the federal government brought forward last January. The tax credit is spurring economic activity while helping to combat the underground economy...

What about small business owners like Maurice Meagher, who owns a construction company in Halifax and was booked solid through the summer building decks, patios and fences for Nova Scotians. He said:

Without [the HRTC]...maybe we wouldn't be getting these calls....People have been kind of sitting on the fence, looking at projects that maybe they'd be thinking about for a while.

Unbelievable as it sounds, the NDP finance critic, the member for Outremont, in the Winnipeg Sun:

—praised the Conservative government's home renovation tax credit...initiatives like that helped the economy because they got “hammers into hands quickly”...

The economic recovery act would also implement the first time home buyers' tax credit, putting up to $750 back into the pockets of Canadians who bought their first home. This tax credit would also be available for individuals who purchased a home for the benefit of a related individual who would be eligible for the disability tax credit.

I am hopeful, but doubtful, that our Liberal colleagues are listening and reconsidering their decision to vote against the economic recovery act with such popular measures, a decision that they will have to explain to their constituents.

However, if neither the home renovation tax credit nor the first time home buyer tax credit are worthy enough for the Liberals to support, what about the enhancements to the working income tax benefit to help those who are particularly vulnerable during tough economic times? This benefit, often referred to as WITB, is targeted to support low income working Canadians. WITB is a refundable tax credit which helps make work pay by supplementing the earnings of low income workers to help ensure that these workers are financially better off by getting a job. It does this by reducing significant financial disincentives to find and keep a job due to having to pay higher taxes and receiving reduced social services support as their paid income increases. WITB also includes disability supplements in recognition of the fact that low income working Canadians with disabilities generally face even greater barriers to workforce participation.

Even the Liberal leader on page 20 of his 2006 book, “Agenda for Nation Building”, claimed that no other measure would do more to strengthen the spine of equal citizenship than a working income tax benefit. When our Conservative government first introduced the WITB in budget 2007, he and his fellow Liberals shockingly voted against its creation. Now the economic recovery act will, as outlined in budget 2009, effectively double the benefits through WITB, increasing its estimated value for low income Canadians by $518 million for 2009. In subsequent taxation years, he probably boasts that he will vote against it.

The Liberal leader will be shamefully voting against more than 1.5 million Canadians that will benefit from the WITB for the 2009 taxation year even despite the fact that enhancement to the working income tax benefit has already garnered wide praise.

The OECD heralded the move stating:

Recent moves to increase the generosity of Canada’s Working Income Tax Benefit are welcome, particularly given that the benefit is strongly targeted to the lowest-income households.

Food Banks Canada praised it commenting:

We called for increases to the Working Income Tax Benefit (WITB), and the government’s proposed improvement to the WITB is a welcome development.

The Caledon Institute of Social Policy applauded the enhancement writing:

The 2009 Budget’s actions to enhance the Working Income Tax Benefit--an important recent addition to Canadian social policy--are laudable. They strengthen both key aims of the program--helping welfare recipients get over the welfare wall, and supplementing the earnings of the working poor. The investment in WITB will foster economic stimulus by sending more money to more working poor Canadians.

As odd as it may seem, the Liberal leader will likely vote against it as his Liberal leader edict. The Liberal member for Kings—Hants has given it a big thumbs up, telling his hometown paper, the The Hants Journal only months ago:

The Working Income Tax Benefit...has helped many working families and increasing it further will contribute even more significantly to helping make work pay.

Again, I am hopeful, but doubtful, that our Liberal colleagues have listened. I am doubtful that they have the capacity to push aside partisan self-interest, ignore their election-mad leader, do what is best for low income working Canadians and pass the economic recovery act and its enhancements to the WITB, and not scheme to force an unnecessary election that Canadians do not want and that could threaten what is an extremely fragile economic recovery.

Nevertheless, there is much more to the economic recovery act.

For instance, we are reaching out to hard-working farmers who have been hit hard by floods and have to dispose of their livestock by extending these farmers the same tax credit deferral that applies to farmers affected by drought. This is a move that Canadian Federation of Agriculture President Laurent Pellerin gave his nod of approval, saying:

This announcement is welcome news in assisting not only Manitoba livestock producers affected in the summer of 2008 get back on their feet. But it also has the potential to assist all Canadian livestock producers who may find themselves in the unfortunate position of having to liquidate their herds due to weather related events in the future.

Furthermore, on the issue of relief for businesses, the economic recovery act will relax tariffs on temporarily imported shipping containers, primarily by increasing the amount of time that such containers can remain in Canada on a duty tax-free basis from 30 to 365 days. This proposal, recommended by various reports and Canadian transport-related associations, will both promote the efficient movement of empty containers in Canada and improve the efficiency of our transportation network.

This action builds on the previously announced elimination of tariffs on a wide range of machinery and equipment in Canada's economic action plan that will lower business costs by an estimated $440 million over five years and the recently announced public consultations to further eliminate all remaining tariffs on imported machinery, equipment and manufacturing inputs.

Our Conservative government's campaign against tariffs will provide a short-term boost and a long-term competitive edge for Canadian industry and lead the charge against the threat of creeping protectionism around the world. Daniel Ikenson from Cato's Center for Trade Policy Studies, an influential American think tank, said, “Canada is doing a great thing. The idea of lifting tariffs frees up businesses, lowering their costs. It shows the United States the proper way to emerge from global recession. We should be moving towards reducing barriers, not imposing them”.

Together, we will have the lowest overall tax rate on new business investment in the leading industrialized countries by 2010. This adds up to a big Canadian advantage for attracting businesses and the jobs they create. Thanks to the business income tax reductions introduced by our Conservative government since 2006, the business tax rate will continue to fall from more than 22% to 15% by 2012. Provinces have added to their efforts by reducing their corporate income tax rates, helping Canada move closer to our Conservative government's goal of a 25% combined federal-provincial tax rate.

We have been seeing the impacts of these business tax reductions recently. Tim Hortons, a homegrown Canadian icon that was forced to flee the high business taxes under the former Liberal government, has reorganized as a Canadian company once again. As a Calgary Herald editorial claimed:

Talk about a double-double blessing!...Canada's national coffee--Tim Hortons--is leaving Delaware and coming home, for all the right reasons. That is, after years during which Canadian business rightly complained of being at a tax disadvantage compared to its U. S. competitors, the pendulum has swung...However, it shows Canada is doing something right...That a company such as Tim Hortons is prepared to go through the upheaval of moving its head office to take advantage of a lower tax environment shows business tax cuts by successive federal governments are starting to work...Timmies may well be starting a trend.

However, our tax relief measures are also benefiting thousands of businesses that are so vital to our communities and economy. Thanks to measures taken by our Conservative government, small businesses can retain more of their earnings for reinvestment, expansion and job creation through an increase in the amount of small business income that is eligible for a reduced federal tax rate of 11%.

That amount is $500,000 this year, up from $400,000. Through Canada's economic action plan, the economy recovery act, our Conservative government is providing tax relief that will encourage economic growth and create jobs for Canadians.

Indeed, since our Conservative government formed government in 2006, we have been working to reduce the tax burden on Canadians from the day we took office. We have provided and continue to provide tax relief that leaves money in the hands of Canadian families and businesses, where it belongs, to encourage growth and boost our economy.

We have slashed taxes by $220 billion for individuals, families and businesses over the next five years. Tax freedom day fell on June 6 this year, nearly five days earlier than under the former Liberal government.

The tax reductions in Canada's economic action plan reinforce our government's goal to foster a tax system that improves standards of living and investment in Canada.

In my short time here today I have presented but a few highlights of our economic recovery bill related to reducing the tax burden on Canadians.

While there is much more to this important legislation from strengthening pensions, to promoting global growth and co-operation, to improving government transparency and accountability, to supporting public broadcasting, and much more, it regrettably appears that Liberal members do not care enough to discuss them.

The Liberal leader wants to plunge Canada into an election regardless of what it would mean for Canadians or our economy and our recovery. Little wonder the Saskatoon StarPhoenix editorial said of the Liberal leader, “For [the Liberal leader] to propose such a thing only makes him sound patronizing and out of touch”.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I remain shocked at the message coming out of the government backbenches. Do those members really believe what they read?

The member for Medicine Hat talked about working to reduce the government's tax burden. The previous Liberal government gave the biggest tax break in Canadian history. The Conservatives took a surplus and presented the biggest spending budget in Canadian history. They misinformed Canadians about the deficit they were entering. They may be reducing taxes a little bit, but now they are leaving Canadians, our children and grandchildren, with the biggest deficit in Canadian history. How is that going to be paid?

The member should tell the whole story. The Conservatives might have reduced taxes in one area, but they are leaving the biggest deficit in Canadian history, a burden on this country's future.

I have a simple question and that is about what is not in this implementation plan.

In 2006 the Prime Minister promised the farm sector, an area that the member for Medicine Hat should know well, cost of production. It was missing in the budget and it is certainly missing in this document.

Could the member please tell me why the Prime Minister broke his word on delivering cost of production to Canadian farmers?

[LaVar Payne, Conservative, Medicine Hat, AB]

Mr. Speaker, I certainly do believe that we are reducing taxes for Canadians from all ends of the country. As part of any funds, the member ought to know that our Conservative government paid off over $37 billion of national debt. We have reduced taxes everywhere across the board for business, for home owners, for low income people. We have increased seniors' ability to--

[Jean-Claude D'Amours, Liberal, Madawaska—Restigouche, NB]

Now there's a deficit of $56 billion.

[LaVar Payne, Conservative, Medicine Hat, AB]

Just a minute. I am actually speaking if you would not mind, sir.

We have reduced taxes all across this country. Canadians understand that. They also understand that the Liberal Party wants to have an election. If we were to actually look at where the deficit originally started, that individual might want to check his party's record back in the days of a former prime minister--

[Wayne Easter, Liberal, Malpeque, PE]

Brian Mulroney.

[LaVar Payne, Conservative, Medicine Hat, AB]

No, Pierre Elliott Trudeau, my friend.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I am going to build on the previous question. The member from the Liberal Party actually talked about the biggest deficit in Canadian history, but let us not forget that it was supported by the Liberals.

The Conservative member talked about reducing taxes and how his government has been able to do that. We want to congratulate that member in another way. We have to realize that the Conservatives also reduced the social safety net for Canadians, which is very problematic these days.

Does the member not think that the home renovation tax credit would have been better directed toward greener housing and energy retrofits because that is the direction we need to go in? Maybe the government should consider that.