House of Commons Hansard #21 of the 40th Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was passport.

Topics

Budget Implementation Act, 2009Government Orders

12:15 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Madam Speaker, the member is quite right. This is another area where there is not consensus by all of the provinces. There is quite a divide in terms of the provincial view on this and I know that Quebec has a unique situation in which its securities regulation function actually includes more aspects of the financial administration or markets other than the banking system, which is federal, as he knows.

He has simply raised another example of matters that should not have been put in the budget. It was not necessary to put it in the budget. It should have been discussed and studied in committee. It should have had the kind of vetting that is necessary to make a wise decision, which is what we say in our prayer every time.

I agree with the member. I think the government shows yet again that it is not prepared to address the financial crisis. It wants to switch the channel to other issues which do not help to create jobs.

Budget Implementation Act, 2009Government Orders

12:15 p.m.

Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Madam Speaker, I have a question for my hon. colleague from Mississauga South. The first group of amendments refers to a section of the act that deals with tax havens.

Can he talk about his party's position on that issue?

Budget Implementation Act, 2009Government Orders

12:15 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Madam Speaker, I would be happy to sit down and talk with the member about tax havens. It is certainly an important area for us to ensure that there is fairness and equity within the taxation system of Canada.

Let me simply reiterate that 40% of the stimulus package is infrastructure. I am not sure whether the $3 billion surplus without the designated scrutinies or due diligence is the safest way to go. There are other opportunities to continue to get the money out without creating a situation where people are focusing on the rules and history rather than on how we get those projects approved and running so those that are shovel ready can commence as soon as possible in the best interests of all Canadians.

Budget Implementation Act, 2009Government Orders

12:20 p.m.

Yellowhead Alberta

Conservative

Rob Merrifield ConservativeMinister of State (Transport)

Madam Speaker, I listened to the debate and want to go back to the securities regulator question. The Bloc is saying we do not need it, but we are going into a very difficult economic time internationally and a time when Canada has to be as competitive as it possibly can be. To have a single securities regulator seems to be the only appropriate way to move forward.

I come from a province that agrees with its own securities regulator, but this is a voluntary process. My question to my hon. colleague is this. He is standing and saying that we do not need a national securities regulator. Would he go against the wishes of his province in that area?

Budget Implementation Act, 2009Government Orders

12:20 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Madam Speaker, I did not say that. That is not true at all. I said we should be discussing this because there is no consensus. This is provincial jurisdiction, and there are 13 regulatory agencies. However, it is also important to understand that this matter of whether or not we should have a single national securities regulator does not do anything for jobs. It is not necessary. The urgency is not there today. It should have been a separate bill.

Budget Implementation Act, 2009Government Orders

12:20 p.m.

Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Madam Speaker, I am pleased to speak today on the group of amendments submitted by the Bloc. For those who are listening, I would like to recall that the budget implementation bill puts into effect several initiatives including tax cuts, elimination of rules for tax deductibility for foreign corporations, and tax havens, which I will discuss in just a moment. It also includes changes to the employment insurance plan which, we believe, do not go far enough and do not address demand or provide the assistance needed by workers in these rather difficult economic times.

In addition, the budget will fund a transition office to oversee the creation of a single securities regulator, which my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup spoke about earlier. The budget also sets a cap on equalization payments and reforms the equalization formula, which has outraged the National Assembly. We have in our hands a motion by the National Assembly and our colleagues in the Government of Quebec, which criticizes the federal government for this. The budget also includes items pertaining to the Employment Equity Act, about which our colleague from Laval talked about extensively last week when she initiated a debate about the status of women.

We would like the House to accept the amendments proposed by the Bloc. Clause 6, which permits the use of tax havens, should be deleted. This short budget clause eliminates a section of the Income Tax Act that was designed to close a loophole used by Canadian multinationals to avoid paying taxes. Tax havens have cost taxpayers hundreds of millions of dollars. Since 1995, and recently, from 2000 to 2002, as well as in the 2003 and 2005 reports, the Auditor General reported on the use of tax havens, which are a from of tax avoidance. Section 18.2 of the Income Tax Act would have plugged this loophole as of 2012.

There is no justification for rescinding this section and it is quite scandalous. We need measures that will create jobs here in Quebec and Canada. We do not need measures that will create competition for local businesses that do not have the means to benefit from such a mechanism.

In this difficult economic context, the Bloc Québécois as well as thousands of taxpayers would like to know why the Minister of Finance is surrendering in such an important battle. The global economy as a whole is threatened by offshore investments and tax havens.

It is inconceivable that we would approve a decision by the Conservative government to allow too many financial transactions to go through tax havens. We must not let companies escape the social contract with the people and run away from their responsibilities. Many Quebeckers and Canadians pay taxes, and I am sure they are outraged to learn that companies will have the right to use such a mechanism and that the government wants to encourage tax evasion by multinationals.

The lack of transparency of tax havens makes it hard to identify credit risks and promotes market distrust. A report by the Auditor General revealed that the Canada Revenue Agency had a hard time properly monitoring international financial transactions and tended to go easy in tax probes of major corporations so as not to hurt relations with those companies.

Is the finance minister so blind that he did not understand from what the lobbyists said that companies are evading billions of dollars in income tax? Tax havens equal major capital flight. In 2000, according to the Auditor General, losses due to tax havens were equivalent to 50,000 taxpayers not paying their taxes. What about today? Statistics Canada says that the use of tax havens is on the rise, which is cause for concern.

The young people in my riding, Vaudreuil-Soulanges, want to know why it was not right to use tax havens to avoid paying tax in 2007, yet it became a good thing in 2008. Workers, seniors and the most vulnerable members of our society are asking themselves the same question.

The Minister of Finance knows, however, that we need some sort of oversight over the international financial market. In his 2007 budget, he said that steps had to be taken to ensure everyone pays their fair share. He complained that some foreign and Canadian corporations were using the tax rules to get around paying tax. He said that every time this happens workers and small and medium-size businesses have to pay higher taxes. He concluded by stating that it was unfair.

The anti-tax-haven initiative was proposed to prevent multinational corporations from using tax havens and other tax avoidance structures to generate two expense deductions for the same investment. Today, not only has the economic situation worsened, but the Conservative government appears to have taken steps to increase the injustice.

The Minister of Finance, members will recall, had already backed off in the fight against tax havens by acting on pressure from financiers in Toronto. He gave them a five-year grace period before the implementation of his plan to fight tax evasion and then set up an advisory panel whose independence and neutrality are highly debatable.

The finance minister out and out reneged on his commitment in the fight against tax evasion when he blindly accepted the recommendations of the Advisory Panel on Canada' s System of International Taxation. This panel was clearly set up to justify the minister's change of heart.

Of the six members of the panel, four are from private companies that may have benefited from the strategy and still can. They include, for example, the former CEO of the Bank of Nova Scotia, the Canadian bank with the most branches in tax havens. The authors of the report are clearly in conflict of interest.

How can the Prime Minister today justify allowing banks and oil companies to avoid taxes through tax havens, when thousands of jobs are being lost each month and businesses are closing their doors?

The fight against tax havens is an ongoing fight. Things must change democratically. A number of European countries would like tighter legislation right away and a much more transparent means of disclosing international financial transactions. Billions of dollars are involved. The disappearance of over half of the money to tax havens is cause for concern.

Budget Implementation Act, 2009Government Orders

12:25 p.m.

Liberal

Larry Bagnell Liberal Yukon, YT

Madam Speaker, the member's speech was very clear, and I understand her points. I would like to ask her a question about process.

A lot of vulnerable people will be helped by this budget. We want to get the money out to them quickly. However, why would the government put in items that did not have to be in the stimulus package, that would not speed up the help for vulnerable people? Some of these could be rightful topics of discussion, but any proposed changes should be reviewed through the normal processes.

There is the pay equity section. Women of the country and federal unions such as PSAC are understandably outraged that this item would be in the budget, especially when PSAC's been told it would not necessarily save any money. Why is this so urgent and why can it not go through proper debate?

Then there is the Navigable Waters Protection Act, when a boom or a bridge is built, which affects canoeists, kayakers and rafters, hundreds of thousands of recreational boaters' organizations have said that they have not been consulted on that. How will this improve the economy?

The Competition Act has also been included in the bill, about which the Canadian Chamber of Commerce has complained. If we wanted to get money out quickly to those who are hurting, this did not have to be in bill.

Budget Implementation Act, 2009Government Orders

12:30 p.m.

Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Madam Speaker, I appreciate my colleague's question. Everything he said is important.

With regard to the most vulnerable, I believe the government is way off base. It would have been wiser to choose its targets better, among others, the changes to the equalization formula. To add to what my colleague said, changes to the equalization formula will cost Quebec almost a billion dollars a year, $991 million to be exact. The bill also lays the foundation for creating a national securities regulator, which the Government of Quebec opposes.

There is also the matter of reforming access to employment insurance. The government refuses to abolish the waiting period. For thousands of unemployed workers, there is nothing encouraging in the budget. The bill proposes misguided tax reductions and eliminates provisions of the Income Tax Act aimed at preventing corporations from avoiding taxes by resorting to tax havens. There is also the matter of deregulation of foreign investment, which opens the door to foreign ownership. Funds allocated for social housing are poorly targeted and allocated, as indicated by the community development trust. And that is not a complete list.

Budget Implementation Act, 2009Government Orders

12:30 p.m.

Bloc

Jean-Yves Roy Bloc Haute-Gaspésie—La Mitis—Matane—Matapédia, QC

Madam Speaker, I would like to thank my colleague from Vaudreuil-Soulanges for her wonderful speech.

I would like to give her an opportunity to continue, particularly concerning employment insurance. The government is proposing to extend the employment insurance benefit period by five weeks for those who can receive benefits. Only a minority of the population presently receives employment insurance benefits or could do so.

I would like my colleague to explain why the Bloc has demanded real employment insurance reform.

Budget Implementation Act, 2009Government Orders

12:30 p.m.

Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Madam Speaker, I would like to recognize the important work that the member for Chambly—Borduas is doing in this file.

The Bloc Québécois is demanding substantial improvement to the employment insurance system. I would like to read the Bloc's position on this issues. We must make the following changes:

Reduce the qualifying period to a minimum of 360 hours of work, regardless of the regional rate of unemployment; increase the rate of weekly benefits from 55% to 60%; eliminate the waiting period; eliminate the distinctions between a new entrant and a re-entrant to the labour force; eliminate the presumption that persons related to each other do not deal with each other at arm’s length; make it possible for self-employed workers to belong to the program on a voluntary basis; and calculate benefits based on the 12 best weeks.

Those are the major improvements that need to be made to the employment insurance system.

Budget Implementation Act, 2009Government Orders

12:30 p.m.

NDP

Jack Harris NDP St. John's East, NL

Madam Speaker, I am pleased to join the debate on the budget implementation bill. The amendments are being brought forward to try to take away some of the inequities that have been included in the bill, as previous members have stated. They are inequities that do not have much to do with the idea of having a package of financial measures to respond to the fiscal crisis, but rather adopts the government's approach to its agenda for our country, which varies considerably from that which our party supports.

I will review what has happened in the last few months in the country.

On November 27, we had the fiscal update, which to be fair and very polite ignored the fiscal reality. The government decided it was a good time to include three very prominent measures that caused quite a big furor in the House and across the country.

The first was an attack on the rights of women by declaring that pay equity was no longer something with which the Human Rights Commission was able to deal. It was to be eliminated from the remedies under the Human Rights Act and made something that would have to be bargained like any other item for collective bargaining.

The second was an attack on collective bargaining rights, for which workers across the country have fought for decades. The indication that the government would refuse to honour agreements with workers was an attack on collective bargaining.

The third was something that also caused a big furor as well, and that was the attack on the changes that had been made to party financing in the wake of the Liberal financial sponsorship program scandal. Imposed were fair rules for financing our political parties.

We and the Bloc were opposed to the attack on those fair rules. The Liberals were extremely opposed. In fact, as a result of these measures and the failure to address the problem, the Liberals agreed to enter into a coalition to replace the government to ensure that these things would not happen and that the government would be able to respond to the needs of the people.

If all the rest is taken away, that is really what happened in December, just a couple of months ago.

As we know, Parliament was then prorogued through the application of the Prime Minister. We came back again on January 26. What do we have? We have some changes to the government's attitude toward the budget, but what has happened to those three major irritants that caused the problem for the Liberals back in December? All but one of them are still there.

We still have an attack on women. We still have the removal of the pay equity provisions from the Human Rights Act remedies. Women in the public service can no longer avail of the rights that many other Canadians have to seek remedy from the Human Rights Commission for a violation of pay equity in the federal sphere. They now have to go and bargain along with every other item on the agenda of a collective bargaining session and play with the give-and-take of hardball negotiations on the part of the employer, or not, or whatever takes place. Pay equity becomes another bargaining item along with holidays, overtime pay, vacations and various other things. Pay equity is one of the things that as part of these negotiations is totally wrong. However, it is apparently acceptable to the Liberal Party of Canada and to the Liberal opposition in the House. I find it astounding that this could be the case.

The other issue is collective bargaining. Part of the implementation act are the changes that would be brought about to ensure all the collective agreements in the federal public sector would be changed, with pay increases that have been negotiated or agreed to wiped out. That is being done at the drop of a hat by the government, supported by the Liberal Party of Canada.

One of the three major irritants that has been left out is the one which would take away party financing for the Liberal Party of Canada. Now the Liberal Party is supporting the government and the measures it is implementing, including the attack on pay equity, the attack on women and the attack on collective bargaining.

It is kind of ironic. There was quite a furor in the House in December. Every single member of the Liberal caucus signed the letter declaring their lack of confidence in the government, declaring their willingness to form a coalition government to govern the country and prevent the very things that we see them complain about every day in this House.

I was a little encouraged the other day. The member for St. John's South—Mount Pearl was entertaining some protestors from the Public Service Alliance of Canada who showed up at her office on Friday. They were protesting the fact that the Liberal Party was supporting the pay equity changes. According to news reports the member invited them in and she was asked whether or not there was any opportunity of hiving off those pay equity provisions from the budget implementation bill and dealing with them separately. The member apparently was interested in trying to do that but was not sure that it could be done.

I want her and all members in the House to know that there is an opportunity to hive off those sections of the bill. There are opportunities in this debate through report stage motions and amendments to vote against particular provisions of the budget implementation bill and pay equity can in fact be taken out and members can vote accordingly. I would certainly encourage them in that regard.

I am glad to see that the member for St. John's South—Mount Pearl has an interest in that. I look forward to her supporting the amendment which would remove that. For any member of the Liberal caucus who would wish to register his or her objection to the removal of pay equity rights for women, there will be opportunities for them to do that today. Whenever it comes to a vote, I look forward to seeing the member for St. John's South—Mount Pearl and others join with us in seeking to amend this legislation at least to the extent that it does not trample the rights of women when it comes to pay equity. It is a very significant issue for many people across this country and for the women who fought for pay equity.

Again and again I hear the President of the Treasury Board talk about how the Conservatives are fixing this. It took 15 years for women to achieve pay equity in the public sector. My question is, why is that? Who was in government forcing the women to spend 15 years fighting for pay equity? Who opposed these applications? Who opposed these measures before the Canadian Human Rights Commission? It is very obvious. Who was in power during those 15 years? During those 15 years, it was the Conservative government of Mr. Mulroney and then the Liberal government of Mr. Chrétien. Those were the governments in power. That is why it took 15 years, not because there was a problem with the system, but because both governments, the Conservative government and then the Liberal government, resisted every single step of the way to ensure that it took 15 years.

All the President of the Treasury Board has to do is say, “Hey, we are going to streamline this process. We are not going to resist. We are going to let the process take its course as it should”. All the Liberal members have to do is ensure that when the opportunity comes, they actually take this provision out of the budget implementation bill.

Budget Implementation Act, 2009Government Orders

12:40 p.m.

Bloc

Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC

Madam Speaker, we are at the report stage for the budget implementation bill, and the group of amendments currently before us includes amendments about tax havens. The Conservatives have decided to do a 180 and go back to the old way of doing business, which resulted in billions of dollars leaving the country. Paradoxically, they have decided to set up a Canada-wide securities commission, which is unacceptable to Quebec. This group of amendments also includes the Conservative government's decision to exempt several foreign corporations buying Canadian companies from review. In these troubled economic times, when we should be tightening up the rules, the Conservative Party has, as always, opted for total laissez-faire and wants the market to handle everything. What a paradox. We all know how that worked out; we are living with the economic crisis now.

I would like the member to tell me whether he finds the Conservative government's decision to go ahead with this measure paradoxical because it will allow greater foreign ownership of our companies with no controls in place. The government will be giving up control over what happens after that. Is it not paradoxical that the Conservative government, with the support of the Liberal Party, should be going ahead with such a measure?

Budget Implementation Act, 2009Government Orders

12:45 p.m.

NDP

Jack Harris NDP St. John's East, NL

Madam Speaker, yes, it is rather ironic that during the election campaign when the Prime Minister was apprised of the fact that there were serious problems in the stock market, he said that this represented some good buying opportunities. The irony is that by opening up the foreign takeover opportunities, he is now wishing to make those buying opportunities available to capitalists, entrepreneurs and companies in the rest of the world when the stock prices are so low.

Some of these companies are now at fire sale prices. Despite the huge drop in the stock market, many people and companies have enormous cash reserves. This seems to be the wrong time to make it easier for foreign companies to take over Canadian enterprises by lowering the standard and not making it subject to review in many cases. I think the new rule now is $1 billion. There are many companies now available for takeover by foreign enterprises without a review of any kind. It is basically open season for Canadian enterprise to be gobbled up by those with strong foreign cash reserves. It is the wrong time to be doing this and I certainly oppose it.

Budget Implementation Act, 2009Government Orders

12:45 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Madam Speaker, both Dofasco and Stelco are located in Hamilton with ownership from outside of Canada. The member talked about a laissez-faire style of governance in this country. With the $1 billion cap, it strikes me that a lot of companies will slip out from underneath it. Does the member share that view?

Budget Implementation Act, 2009Government Orders

12:45 p.m.

NDP

Jack Harris NDP St. John's East, NL

Madam Speaker, yes, a lot of companies previously would not have been covered by this, but because of the low stock prices their market cap is so low they are vulnerable to takeover without any review whatsoever.

We have seen the attitude of multinational corporations--or transnational corporations, which I think is the preferred phrase these days--that have no concern whatsoever for the consequences in this country with respect to layoffs and things like that. It is a bad thing and it is open season.

Budget Implementation Act, 2009Government Orders

12:45 p.m.

Liberal

Kirsty Duncan Liberal Etobicoke North, ON

Madam Speaker, it is an honour to speak in this House to give thanks to the people of Etobicoke North and discuss infrastructure, an important component of the stimulus package and a real need in our riding.

Municipalities provide much of the infrastructure and services that matter most to Canadians: bridges, public transit, roads, sewage systems, et cetera. However, cities are the level of government least able to fund these projects. Municipalities, unlike federal and provincial governments, are uniquely constrained. Their main source of revenue is property tax which is likely to be reduced for at least the near future as the housing market trends downward.

Canadian municipalities must stay on top of infrastructure needs as complacency and further deterioration may ultimately prove deadly. We cannot afford to ignore warning signs or to repeat the mistakes of the past. For example, a Portuguese mayor repeatedly told the government that a bridge crossed by 1,600 vehicles a day was unsafe before it plunged into a river, submerging two cars and a coach. In 1990 and 2005, the U.S. government gave the Mississippi bridge a rating of “structurally deficient” before it collapsed, sending more than 50 cars plunging 20 metres into the river below. Here in Canada drivers reported chunks of falling concrete about an hour before the collapse of an overpass in Quebec.

These tragedies all have one thing in common: the behaviour of organizations and people who fail to assume their responsibilities during the building or service life of the bridge. I point out that I could have chosen examples regarding other forms of infrastructure.

Recent disasters show the importance of protecting Canada's infrastructure from all types of hazards, for example, the 1996 Saguenay flood, the 1997 Red River flood, the 1998 ice storm, and the 2003 power blackout.

Canadian municipalities build, own and maintain most of the infrastructure that supports our economy and quality of life. Unfortunately, our Canadian communities are increasingly at risk of human made and natural disasters, largely because after decades of neglect, our once efficient and reliable infrastructure is now crumbling. Municipalities facing growing responsibilities and reduced revenues deferred needed investment and infrastructure deteriorated.

Canadian public investment in infrastructure has declined significantly since the 1960s. Public investment measured as a proportion of gross domestic product peaked at almost 5% in 1966 and fell to 2.6% by 2002. Deferred investment has significant consequences including the closing down and failure of some facilities such as bridges, roads, sewage and water supply.

The 2004 report, “Assessing Canada's Infrastructure Needs”, showed that Vancouver had bridge and traffic congestion that cost the region an estimated $1.5 billion in air pollution, lost work hours and shipping delays as the city's bridges were too narrow and therefore had to operate over capacity.

For Calgary, a transportation infrastructure improvement list included 880 million dollars' worth of major roadway projects. For Saskatoon, the needs included two more bridges and a list of road projects worth over $750 million. The estimated costs of reducing the backlog of repairs to highways, streets and viaducts in Toronto was $300 million and continues to grow today. Just to bring home the challenge, there are over 10,000 streets in Toronto with 5,300 kilometres of roads and 530 bridges.

Canada's infrastructure was mostly built between the 1950s and the 1970s. The decay is accelerating faster than previously thought, with infrastructure showing 79% of its service life already used.

Estimated cost to fix infrastructure increased fivefold, from $12 billion in 1985 to $60 billion in 2003. Today the cost is a staggering $123 billion.

Although I have largely focused on bridges and roads, infrastructure is needed for community, cultural and recreational infrastructure, solid waste management, transportation, and water and waste water systems.

The government proudly announces that the gas tax fund allows all municipalities to better plan and finance their long-term infrastructure. This is because municipalities know in advance how much money they are getting, know they will receive funding on a regular basis and know that in turn they must account for how they spend the money. Planned, steady spending allows shovel-ready work to begin quickly.

Unfortunately, Canada's cash-strapped communities are being asked to pick up a third of the cost of stimulus infrastructure projects. This means that Canadians will see fewer shovels breaking ground, fewer jobs created and too little stimulus to the economy when they need it most.

Government cannot afford to wait while municipalities find the money and infrastructure continues to deteriorate. We have all seen far too often what happens when organizations and people fail to assume their responsibilities with respect to building and maintaining infrastructure.

In some cases we will have to go further and make life-protecting investments, such as the much-celebrated Red River floodway expansion project, which provides a once in 300 years level of flood protection, equivalent to the largest flood in Manitoba history.

It is also important to recognize that the risks to infrastructure are becoming increasingly complex and frequent. For example, climate change is affecting our capacity to manage the risks associated with natural disasters, and Canada has seen a rise in severe weather related natural disasters such as droughts, floods and severe storms.

The 1998 ice storm in eastern Canada left three-quarters of a million homes without electricity, and the weight of ice and snow toppled 1,000 transmission towers and 30,000 utility poles.

The impacts of climate change on infrastructure are already evident in Canada's north. Permafrost is the foundation for airstrips, buildings, and community water. Thawing permafrost will have serious socio-economic implications for maintaining these structures.

A more efficient, faster and more stimulative method must be found to transfer federal funding to municipal infrastructure projects. The need is particularly great among first nations communities, where $1.4 billion is targeted for infrastructure, housing and skills; although encouraging, this investment does not reflect the need created after decades of economic marginalization and unfairness. Canada, which normally ranks in the top ten of the United Nations development index, would fall to 48th place out of 174 countries if judged solely on the economic and social well-being of first nations people.

In closing, I leave the House with a plea made by U.S. Congressman Elijah Cummings following hurricane Katrina: “We cannot allow it to be said by history that the difference between those who lived and died was nothing more than poverty...”

The 2001 census data showed that one first nations community was in the top 100 Canadian communities, while 92 were in the bottom 100. Let Canada not make the same mistake with communities that can pay versus those that cannot.

Budget Implementation Act, 2009Government Orders

12:55 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Madam Speaker, I have to say that I agree with much of what I heard in the remarks of the member for Etobicoke North.

She talked about the difficulty municipalities will have in coming up with one-third of the money to match funds. In my home community of Hamilton, 7,000 people lost their jobs in February. In the last month, 600 families had to go on welfare.

The budget absolutely fails to do what the government says it does in stimulating the economy. We all know that the $62 billion tax break is $60 in tax breaks for every dollar invested in Canadians.

EI is the front-line defence for Canadians, and there has been no change there to help them. There is no change in accessibility. It is the first line of defence for Canadians.

The budget also, in a very underhanded fashion, will neuter pay equity for women in Canada.

Can the member tell us if she will now join with us and defeat the budget?

Budget Implementation Act, 2009Government Orders

12:55 p.m.

Liberal

Kirsty Duncan Liberal Etobicoke North, ON

Madam Speaker, over the last six months Canada has the second-worst-performing economy of the G8 countries. In the fall our Prime Minister told us that there would not be a recession. At the time of the economic statement we were told there would even be a surplus. By January we were told we would be $13 billion in debt, and today we know it is much higher.

Canadians are in real trouble. A quarter of a million jobs were lost in the last three months alone. We need an economic stimulus package now for all Canadians.

Budget Implementation Act, 2009Government Orders

1 p.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

Madam Speaker, I would like to point out that, in this budget, the Conservative government has announced a lot of money for infrastructure. I was in my riding recently, where some of the rural municipalities have 300, 400 or 500 people. They have to do a lot of road maintenance and take care of other infrastructure, and they are having a hard time dealing with those needs because they do not have the money. Even if the federal government does invest a lot of money, they do not have—

Budget Implementation Act, 2009Government Orders

1 p.m.

NDP

The Acting Speaker NDP Denise Savoie

As the member for Etobicoke North does not have a lot of time to answer the question, I will give her the floor for 30 seconds.

Budget Implementation Act, 2009Government Orders

1 p.m.

Liberal

Kirsty Duncan Liberal Etobicoke North, ON

Madam Speaker, I think the point of the speech was that municipalities do struggle to pay that one-third. We really have to make sure that municipalities that need infrastructure can in fact afford it.

Budget Implementation Act, 2009Government Orders

1 p.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

Madam Speaker, it is with interest that I rise to speak today to Bill C-10, a bill to implement the 2009 budget the Conservative government presented in January.

Obviously, we oppose this bill. We made it clear that we would vote against it, because we believe that the 2009 budget and the measures in Bill C-10 do not meet the needs of the public, which, in an economic crisis, is entitled to expect appropriate and sufficient measures.

Not only does this budget not meet the public's expectations, but this legislation contains provisions in direct opposition to the unanimous demands of the Quebec National Assembly. As a responsible party, the Bloc, which works solely and always in the interest of the Quebec nation, has introduced a series of amendments aimed at correcting the main elements of the Conservative budget conflicting directly with the interests of Quebec and Quebeckers.

For the purposes of this debate, I am going to focus on two of the measures contained in the implementation legislation that we consider unacceptable. First, we are proposing an amendment to eliminate clause 6, that is, the section permitting the use of tax havens. This is a major issue. I have been hearing about these tax havens since I was first elected in 2004. The Liberals put measures in place at the time, and the Conservatives, who were supposed to abolish this type of measure continued with clause 6 of this budget.

While this Conservative budget does nothing to help the regions and sectors such as furniture manufacturing, which is a major industry in the riding I represent, or the infrastructure the Liberal member just spoke of, and contains no measures to help the thousands of workers who have lost their job, the Minister of Finance is going to allow the major corporations to avoid paying billions of dollars in taxes through tax havens. It is a scandal.

This is despite the fact that, in 2007, the Minister of Finance clearly stated his intention to put an end to tax havens and to ensure that everyone would pay their fair share of taxes. However, this is not the case. At the time, that same minister also lamented that, whenever large corporations managed to avoid paying taxes, workers and small and medium-size businesses had to pay more. That is something the Bloc Québécois noticed a long time ago and it rightly came to the conclusion that this was unfair.

Yet, in the 2009 budget, the Conservative government has decided, with the support of the Liberals—those masters of tax havens—to remove a provision in the Income Tax Act that was meant to prevent businesses from continuing to avoid paying taxes through the use of tax havens. Clearly, this Conservative government has yielded to the pressures of large corporations, including oil companies in western Canada. It has reneged on its commitment to fight tax evasion during this economic recession, at a time when thousands of workers need support. It is quite insulting to see how the Conservatives and Liberals are now refusing to act to put an end to this injustice.

The Liberals did just like the Conservatives and supported this budget because they, in fact, have always been against fighting tax evasion. Who could forget the former Liberal finance minister and Prime Minister who personally took advantage of these tax havens to avoid paying taxes in Canada? I thought the Liberals would have learned a lesson from the 2006 election. Unfortunately, that is not the case.

This is why I am asking all members to support this amendment from the Bloc Québécois. Those billions of dollars we are losing could definitely be useful to the unemployed, to low-income seniors and to manufacturers who are neglected in this budget, at a time when they need programs and support.

There is no question that, while the Bloc Québécois wants to help our regions and our poor, the Conservatives and the Liberals are as always protecting the large multinationals that do not want to pay taxes.

The second amendment that I want to discuss is the one calling for the clauses relating to the establishment of a single securities commission to be deleted. That amendment is necessary because this government with, of course, the support of the Liberals, has decided to use this legislation to introduce the provisions that will set up a Canadian securities regulation regime. Why does the federal government want to interfere yet again in an area that comes under the jurisdiction of Quebec and the provinces? Why do the two main Canadian parties want to deprive Quebec of one of its powers? Why centralize the whole process in Toronto, thus depriving Quebec of quality jobs and of its expertise in an area that is its own, namely its financial sector? Why are the Liberals and Conservatives opposed to the consensus that was clearly expressed by the Quebec National Assembly against the establishment of a single securities commission? This is despite the fact that, as my colleague indicated earlier, the OECD believes that the current monitoring regime under the authority of Quebec and the provinces is one the most efficient among industrialized countries. Why question such a successful structure?

The passport system, like the system used in the European Community, works very well and allows a uniform, coordinated approach to the operating rules. It also promotes the development of specific areas of expertise, which makes it possible to have different, but complementary approaches to compliance with the regulations.

Lastly, the Autorité des marchés financiers du Québec is the last bastion against the disappearance of stock market activity from Montreal, because the AMF has the regulatory power to require exchange activities in Montreal. In the interest of Quebeckers and given the unanimous will of our National Assembly, with this amendment, we, the members of the Bloc Québécois, reiterate our opposition to the creation of a Canada-wide securities commission.

Last week, we voted on a motion calling on the federal government to abandon the idea of putting in place a Canada-wide securities regulator. Yet not a single Conservative member from Quebec got up to support that motion, even though the National Assembly of Quebec had taken a unanimous position against such a regulator. As always, they agreed to stand up for their party and the interests of Canadians at the expense of Quebeckers. But all the Bloc Québécois members rose to support that motion by a Bloc member, and I am proud that we did. Our mandate is still to defend the interests of Quebec, its National Assembly and its people.

Now, I call on the members of this House, but especially all the members from Quebec, to vote for the Bloc Québécois amendments to this budget implementation bill. The main purpose of our amendments is to defend Quebec's interests and the consensus expressed by the National Assembly. Our amendments also address the needs of the people of Quebec. The House will vote, and we will see once again which party is the only one that really defends the interests of Quebeckers in this House, which party is the only one that stands up for unanimous votes in the National Assembly of Quebec. That party is the Bloc Québécois.

Budget Implementation Act, 2009Government Orders

1:10 p.m.

Bloc

Jean-Yves Roy Bloc Haute-Gaspésie—La Mitis—Matane—Matapédia, QC

Madam Speaker, I would like to congratulate my hon. colleague from Berthier—Maskinongé on his speech.

In his speech, he touched briefly on one sector of the economy that affects my riding in particular and his region, Trois-Rivières and Berthier—Maskinongé, that is, the softwood lumber sector. I read recently that, in addition to the businesses going bankrupt and the companies in the softwood lumber sector that are closing, all forestry operators are affected. In the budget, the Conservative government responds by telling us that no action should be taken in this sector, because it would be too dangerous. Otherwise, it could be disputed under the softwood lumber agreement. Compared to the auto industry, which is receiving billions of dollars, even though it is in loans, nevertheless, we see that there is not much in this budget for the softwood lumber agreement. I would like my colleague to say a few words about this.

Budget Implementation Act, 2009Government Orders

1:10 p.m.

Bloc

Guy André Bloc Berthier—Maskinongé, QC

Madam Speaker, I would like to thank my hon. colleague for his excellent question. Softwood lumber is an important issue. Our industries are in crisis and facing difficulties at this time, like the manufacturing sector in our ridings. This budget does not include any measures or loan guarantees to support these businesses.

What is more, we are exporting much less to the United States. The Americans are currently dealing with an economic crisis that is gripping their country. As a result, there is less construction and we are exporting much less softwood lumber, which is affecting our own industries. Our exports accounted for about 35% of the American market, but that number has decreased to about 20% to 22%. Thus, the recession in the United States is very important and is having a real impact on our industry.

If we want to maintain that industry and its vitality, this government must support our forestry companies, even at the expense of NAFTA. We all know very well that the Americans are also supporting their industries.

Budget Implementation Act, 2009Government Orders

1:10 p.m.

Liberal

Larry Bagnell Liberal Yukon, YT

Madam Speaker, the previous speaker mentioned that the municipal governments have the least ability to raise taxes and therefore need that infrastructure money. I would add that it is the same for first nations. Those two orders of government have responsibilities for infrastructure but very limited revenue increasing resources. I have said a number of times in this House that they need to get the same percentage of funds as they have in the past because those programs were primarily for them.

I wonder if the member has heard any concerns from his municipalities that they may not be getting the appropriate levels of funding or, at the very least, the same as they received in the past, if the process is any worse and if they are getting it fast enough.