Debates of Sept. 30th, 2009

Softwood Lumber

[Pablo Rodriguez, Liberal, Honoré-Mercier, QC]

Mr. Speaker, we are looking out for the future of our children.

Three years ago, the government failed us by signing a sellout agreement with the U.S. It said that the agreement was not perfect, but it would prevent any problems in the future. We knew that was not true.

The proof: on Monday, an arbitration tribunal ruled that Canada has to pay $68 million in compensation to the United States. This is a disastrous ruling for forestry workers and it is further evidence of the Conservative government's incompetence.

Are the Conservatives waiting for our industry to fold? Are they waiting until there is not a single job left before taking action?

[Stockwell Day, Conservative, Minister of International Trade and Minister for the Asia-Pacific Gateway]

Mr. Speaker, the tribunal made its ruling a year ago. We appealed the decision. Now we have a final decision from this international tribunal.

One thing is very important, however: after the agreement was signed by this government, close to $5 billion was repaid to the industry here in Canada, not in the United States, where the money was the whole time the Liberals were in power.

We have accomplished things for the industry and we will continue to do so.

Tax Harmonization

[Gilles Duceppe, Bloc, Laurier—Sainte-Marie, QC]

Mr. Speaker, negotiations between the Government of Quebec and the federal government over GST harmonization have stalled. The federal Minister of Finance is refusing to release $2.6 billion to Quebec unless it agrees to let Revenue Canada collect the GST and QST.

But Quebec signed a GST harmonization agreement in 1992. Why is the Prime Minister now deciding to put conditions on this agreement, and blocking the transfer of $2.6 billion that rightly belongs to Quebec?

[Stephen Harper, Conservative, Prime Minister]

Mr. Speaker, the Government of Canada has signed agreements with the provinces on GST harmonization based on a model established a long time ago by the previous government. We are able to offer the same terms to Quebec, and the Minister of Finance is in the process of negotiating with his provincial counterpart.

[Gilles Duceppe, Bloc, Laurier—Sainte-Marie, QC]

Mr. Speaker, Quebec's minister of intergovernmental affairs himself, Claude Béchard, admitted that negotiations on GST harmonization are far from being concluded; in fact, they are now stalled. I remind members that Ottawa owed $8 billion to Quebec, and compensation for the GST represents only one-third of the total amount.

Quebec harmonized its tax with the GST in 1992, and Quebec was designated as the one to collect it. Why is the government changing its mind? Is this the government's way of showing openness? Is this the government recognizing the Quebec nation, by giving Ontario and the Maritimes what it will not give to Quebec?

[Stephen Harper, Conservative, Prime Minister]

Mr. Speaker, once again, the previous government signed agreements with the provinces for GST harmonization. The model used with Quebec was completely different than with other provinces. Our government is clear. We are prepared to negotiate the same terms and the same contract with Quebec as with the other provinces, and the Minister of Finance is in the process of negotiating that with his provincial counterpart.

Softwood Lumber

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, another issue is playing out much like sales tax harmonization. The $68 million in countervailing duties imposed by the London Court of International Arbitration will likely hurt Quebec. Ontario companies were responsible for 60% of the quota overrun, so they should be responsible for paying 60% of the penalty imposed by the court.

Will the Minister of International Trade take steps to ensure that Quebec companies are not penalized for Ontario's overrun?

[Stockwell Day, Conservative, Minister of International Trade and Minister for the Asia-Pacific Gateway]

Mr. Speaker, as I said, we appealed the decision several months ago. The court reviewed our appeal and once again ruled quite clearly that the industry had to pay the duty, as the tribunals said.

It is not within our power to decide otherwise. The tribunal made that clear.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, the only thing that the companies and the U.S. government want is to get their hands on the $68 million.

Can the government provide assurance that the guilty Ontario companies will pay the fine on their over-quota exports and that Quebec will not end up footing the bill?

[Stockwell Day, Conservative, Minister of International Trade and Minister for the Asia-Pacific Gateway]

Mr. Speaker, our government is continuing to provide plenty of support to the industry. For example, Export Development Canada has created a fund worth nearly $7 billion for forestry industries and companies to help finance several months of operations. There are also programs for workers. We will continue to support forestry companies. This is a difficult time for them, and we are here to help.

Taxation

[Jack Layton, NDP, Toronto—Danforth, ON]

Mr. Speaker, the finance minister's decision to impose a new tax on everything from diapers to gasoline to funerals is going to be a hardship on families, particularly as they are struggling with this economic crisis.

He thinks so highly of this new tax that he bribed Ontario and British Columbia with seven billion taxpayer dollars in order to impose and accept the new HST. He even brags in the media today that the HST will not be a big issue in the next election because consumers will have become used to it.

Does the Prime Minister also think that Canadians are going to be so forgetful that they are going to forgive him for his new death tax?

[Stephen Harper, Conservative, Prime Minister]

Mr. Speaker, I think that Canadians understand that provincial governments impose provincial taxes and federal governments impose federal taxes.

Yesterday, the members of the NDP were cheering and demanding a 7% GST. Let me assure the House that, under a Conservative government, the GST is not going to go above 5%.

[Jack Layton, NDP, Toronto—Danforth, ON]

Mr. Speaker, that is a complete fabrication on the part of the Prime Minister. The HST memorandum of agreement says:

Canada and British Columbia will use their best efforts to enter [a harmonized tax deal] on or before September 30, 2009.

We know that the federal government did not consult with anybody, least of all the taxpayers, before it went along and pushed this new tax increase. Since today is the deadline for the B.C. agreement, could the Prime Minister tell us if he has either already signed it or that he is going to postpone the harmonized sales tax deal, reveal the details, and give more time for the citizens to say that they do not want his new tax?

[Stephen Harper, Conservative, Prime Minister]

Mr. Speaker, when I was a boy, my father used to say that I should work on things that I am good at. The NDP is not good at fighting taxes.

The NDP opposed cutting the federal sales tax. The NDP opposed reducing business taxes. It opposed our cuts to personal taxes. It opposed our cuts to seniors. The NDP never saw a tax it did not like and never saw a tax it did not want to hike. Everybody knows that.

[Jack Layton, NDP, Toronto—Danforth, ON]

Mr. Speaker, what the Prime Minister is not so good at is saying that with a straight face.

Another problem raised by the increased sales tax is the aboriginal exemption. Aboriginal leaders have asked that the treaties be complied with. This type of exemption is in place in New Brunswick, Newfoundland and Nova Scotia.

Can the Prime Minister tell us whether he will impose the new harmonized sales tax on aboriginal people despite the treaties that are in place?

[Stephen Harper, Conservative, Prime Minister]

Mr. Speaker, I am a serious guy, but I do have trouble keeping a straight face when the NDP claims to be fighting taxes.

The government's position is clear. The provinces impose their own sales tax. Our government has lowered the GST twice. The NDP voted against these measures twice because the NDP is in favour of a 7% GST. We favour a 5% GST. So do Canadians.

Infrastructure

[Gerard Kennedy, Liberal, Parkdale—High Park, ON]

Mr. Speaker, yesterday the Prime Minister refused to answer simple questions about the misspending of infrastructure money in New Brunswick. How about today we try the other side of the country, where it is even worse?

In British Columbia, the Prime Minister has now promised to give $158 million in extra government funds to his Conservative colleagues at the expense of the unemployed and their families in other parts of the province. Rather than focusing on jobs, the Prime Minister is focused on helping his Conservatives keep theirs.

Why should Canadians anywhere in this country trust the government?

[John Baird, Conservative, Minister of Transport]

Mr. Speaker, I am always excited to get up and talk about the great infrastructure investments that this government is making in the great province of British Columbia.

The biggest stimulus program with the biggest grant made anywhere in the country was made just last week by the Prime Minister of Canada. We are supporting green energy in northwestern British Columbia. It is a lot of effort to get a lot of diesel power generation off the grid, get more clean non-emission generation onto the grid. Where is that all happening? In an opposition riding.

[Gerard Kennedy, Liberal, Parkdale—High Park, ON]

Mr. Speaker, for 10--

[Some hon. members]

Oh, oh!

[The Speaker, Liberal, Peter Milliken]

Order, please. The hon. member for Parkdale--High Park has the floor.

[Gerard Kennedy, Liberal, Parkdale—High Park, ON]

Mr. Speaker, for 10 long months the unemployed in British Columbia have waited to even hear an announcement. The Prime Minister has his priorities badly mixed up. These are difficult times. He is supposed to be standing up for Canadians in need.

Instead, in B.C. he gave his own MPs an average of three times as much money as those in opposition ridings in the province. All the top 10 allocations went to hungry Conservatives. Two-thirds of his cabinet took those top 10 positions.

Will the Prime Minister explain today why he and his ministers are too busy dividing up the cash among themselves instead of looking after British Columbians who need the assistance?

[John Baird, Conservative, Minister of Transport]

Mr. Speaker, the member for Parkdale—High Park will always be remembered for making a great contribution to democracy and to the Conservative Party by his actions at the Liberal leadership convention in Montreal some three years ago.

Let us look at the commercial news today. The president of the Canadian Construction Association says the following:

We are starting to see a lot of competition for infrastructure projects...Many of our members say they are very busy and it will be one of the busiest seasons on record.

The building Canada fund is radical and it is making a significant difference in the remaking of our public infrastructure.

This government is working co-operatively with Liberal, New Democratic and Conservative governments right across the country. We are working hard. We are getting the job done. We are seeing job creation right across the province.

[Bonnie Crombie, Liberal, Mississauga—Streetsville, ON]

Mr. Speaker, the shovelgate saga continues. The photo op cameras keep rolling but the jobs are nowhere to be seen.

For months we have been told about infrastructure spending. Where is it? All we can see is Conservative pork-barrelling. The Parliamentary Budget Officer asked a month ago to see the numbers from the department. Its answer was four weeks of delay and it will still not say when it will have the numbers.

My question for the minister is, what is the holdup?

[John Baird, Conservative, Minister of Transport]

Mr. Speaker, there are very few things that have been more un-Canadian than the actions of the member opposite. She actually had the gall and the nerve to protest outside of a Tim Hortons. Shame on her.

I was just looking at the September 21 Mississauga News where it states, “Money given to the City of Mississauga through the federal government's infrastructure stimulus funding program is rapidly bearing fruit”, even in the member opposite's own constituency.