Mr. Speaker, this is a good debate because we are able to talk about many things that impact on Canadians and how the government implements what we believe to be a misguided budget, a budget that loses out on opportunities.
Unfortunately, for almost 15 years the riding I represent in northwestern British Columbia has been experiencing a steady decline in some of the foundational elements of its economy especially in the resource sector, including fishing, forestry, mining. As well there is a lack of creation of the next economy. It is to that issue I put my mind when determining whether or not this budget deserves support. Is this budget preparing us for the next economy, not just in Skeena—Bulkley Valley in the northwest of B.C., but right across rural and urban Canada?
On many different levels, I question the choices that were made in this budget. This budget will be running the highest deficit in Canadian history. The government will be borrowing money to spend on a number of things which many Canadians have great concerns about or feel are deeply flawed. Opportunities lost may be a better name for this budget, rather than the spin the PMO came up with.
The numbers do not lie. Canadians are experiencing more household debt. Canadians are borrowing more money per person than ever in our history. Adjusted for inflation, adjusted for real term dollars, Canadians are more indebted than ever before. Canadians are borrowing increasingly larger amounts of money for mortgages. They owe more on their Visa cards and lines of credit. All of this is a stop-gap measure. People do not want to borrow money. They do not want to have to take out such large mortgages, but the reality is there is a housing bubble and increased costs and spending.
Governments often take credit for things they have had nothing to do with and they also get blamed for things they had nothing to do with. However, there are some things about which I question the government on its choices.
Child poverty is an important indicator for all of us, regardless of political persuasion or stripe. We have seen it grow from 9.5% to more than 12% in this country. That number does not lie. More and more children are living in poverty now than when this government took office. While the Conservatives cannot be held accountable for all of it, the Conservatives must recognize that their policies, to this point, if they were designed to alleviate child poverty, are failing. Child poverty could go up by as much as 30% in this country and the government would pat itself on the back. That is unconscionable.
Members on the opposite side care about the issue, but they do not care enough to push their own cabinet, their own finance minister to change the dial on some of the government's choices. More than a billion dollars went toward the 72-hour G8 and G20 summits. The government lauded Canada for earning its place on the world stage and then weeks later, for the first time ever, was voted down for a seat on the UN Security Council. It was the first time Canada ever asked for one and did not receive it. So much for Canada's place on the world stage. We blew more money on the G8 and G20 summits than any other country that has hosted the summits and any country that is about to host the summits. We have seen the budget numbers come in from Korea and other places, and other countries are spending 10% to 15% of what the Conservative government spent over three days.
This is not the Conservative government a lot of its supporters voted for. It was pointed out earlier that in the first three years of taking office, the Conservatives increased public spending more than any other government in 30 years. Before the recession, before the downturn in the economy, before the stimulus spending, those guys were spending on things that were not contributing to the long-term sustainability of this country.
It is a government that has turned the tool of a tax cut into an obsession. Tax cuts can be very useful in doing certain things in the economy at certain times in certain places. It has been said that if all one has is a hammer, every problem will start to look like a nail. The government truly believes there is not a problem in the universe for which a tax cut is not the automatic and only answer.
As a former small business person I will argue that tax cuts can help if they are strategic and intelligent, and if they fit in with some larger strategy, but if we rank the top five priorities for a struggling business, the taxes being paid is not number one. It is the ease of doing business, the ability to do business, to have a market. It is the ability to get qualified and trained employees on a regular basis. These are the concerns of businesses.
Recently I spoke with the owner of a small business in Terrace, British Columbia. The fellow owns Checkers Pizza. He has done a fantastic job building his business. He is dealing with the HST right now. Just in the time the HST has been in, he figures it has cost him more than $15,000. It prohibits him from hiring staff and expanding his business.
The way the HST was set up helps his competitors that are a chain. His business is not part of a chain; he is a single operator of a business. He has to charge HST on all of the products that he gets in because they are locally sourced, which is what we want. We want businesses to buy locally. However, his competitors have all their processed ingredients for pizza and whatnot brought in and they are able to pass on the cost of the HST. He cannot as a small business operator and it is killing him. It is absolutely frustrating for him. He would likely be a conservative-minded person. He is fiscally prudent and he is socially conservative. However, he is so frustrated with the government because it does not pay attention to the most fundamental and basic principles of business and it is hurting him.
We also know that the government has borrowed $20 billion over time for tax cuts that went to companies that simply make no difference in their hiring policies because of them.
We saw the banks earn record profits even in the midst of a recession. They dipped for a moment but came raging back. Those profits were not being put back into the company. They were cutting staff at the same time.
We saw this with the oil companies which received more support from the government than companies in any other oil producing nation. With respect to companies drilling for oil in other countries around the world, it does not matter whether we are talking about Iraq, Iran, Venezuela and Nigeria, our government gives more subsidies than any other country.
These same companies will be at the finance committee this afternoon asking for more, which I suppose is their right, but common sense and decency indicate that the government should refuse them, and say that enough is enough. At the same time as handing out more than $2 billion in subsidies to the tar sands alone, the government was cutting the eco-energy program for average Canadians to retrofit their homes, to spend less of their money on heating their homes, to put less greenhouse gases into the atmosphere if people were heating with a fossil fuel.
This makes no sense as our competitors are ramping up efficiency. The United States, Europe, Australia and the Far East are spending taxpayer money on making their economies, their industries, their individuals more efficient, not less efficient. We do not need to subsidize the tar sands. The Exxons and Shells are doing fine. They are doing better than fine.
Where we need help is for low income seniors who are struggling to pay next month's heating bill. The government needs to give them a small bit of support to help them put more insulation into the walls of their home, to get better windows and a better heating source so that they will pay less for their heating. A byproduct of that is it contributes less pollution.
We have been waiting for the green energy revolution in this country for a long time. In northwestern British Columbia oil companies that want to push risky projects are lining up. Enbridge wants to run 1,200 kilometres of pipeline across mountains and rivers all across northern B.C. and put supertankers into the water on the west coast. It has all sorts of support from the government. The government kicked in $30 million for a program to train people to build a pipeline for three months.
We want real job training and real support for the green energy projects. Business folks come to my office all the time. They are revolutionizing the forestry sector. They talk about bio-coal, wood pellets and changing the way we do forestry which is long overdue. When they look to the government for equivalent support that the government is giving to the oil and gas sector, there is nothing. These business people are conservatively minded. They want to make a go of their businesses but they want fair treatment. What they see across the border in the U.S. is a completely unfair playing field. The Americans are actually supporting these industries.
The most perverse logic we see in the budget and from the government is the concept that the government borrowed more than $5 billion to cut cheques to the governments of Ontario and British Columbia in effect to bribe them to raise the taxes on their own citizens with the implementation of the HST. In British Columbia in particular, we saw a government that was entirely duplicitous in negotiations with the federal Conservative government for months. There was an election and within hours of the election being over, it foisted the HST on its citizens.
Thankfully the people of British Columbia have recall legislation. The people of British Columbia are standing up and threatening the government. They are asking it to rescind the HST. We were able to push the federal government to do it on the Royal Canadian Legion's poppies. The government should take the HST off of essentials. As it did with the poppies to help our veterans, the government should take the HST off such things as home heating to help everyone.