House of Commons Hansard #22 of the 40th Parliament, 3rd Session. (The original version is on Parliament's site.) The word of the day was billion.

Topics

Jobs and Economic Growth ActGovernment Orders

3:35 p.m.

Conservative

Joy Smith Conservative Kildonan—St. Paul, MB

Mr. Speaker, I listened very carefully to what the member opposite said and I was very disappointed in her speech.

First, I heard a lot of criticism of the crime bills that have gone through Parliament. The Bloc has voted against virtually every crime bill, yet she talks about trying to make Canada safe.

On top of that, she talks about my city of Winnipeg. I know all those people and they told me, after she came back from the justice committee, that she spent 90% of her time on her BlackBerry, not listening. I know what goes on in Winnipeg and I know the many different programs that are there for these children. I also know we have the largest number of women who have disappeared or who are abused.

The people wonder why she did not support the human trafficking bill, which they supported and told her that at committee. After this so-called emotional speech in Parliament, how does she square that with what the public has told me in Winnipeg?

Jobs and Economic Growth ActGovernment Orders

3:35 p.m.

Bloc

Maria Mourani Bloc Ahuntsic, QC

Mr. Speaker, I thank my colleague for her question. I must say that I am a little taken aback by what she said about my BlackBerry, but, in politics, one has to expect low blows. I have become immune to all this nonsense.

What she said about the bills is completely untrue. I supported at second reading the bill she put forward because I figured it could be referred to committee where it could be improved. Unfortunately, at third reading, I could not support it simply because it was bad, it was not a good bill.

I am very disappointed in the member. We have sat on the Standing Committee on the Status of Women together, and she never asked her government to stop issuing visas to exotic dancers. What is she waiting for to do so?

I travelled to Winnipeg. This is not a personal attack. I happened to go there, and I was very disappointed with what I saw. How come young 11 and 12-year old girls continue being assaulted almost on a daily basis by men in luxury cars near the railroad in the North End, in her riding? And she wants to fight human trafficking! She should start by looking after what is going on in her own riding.

Jobs and Economic Growth ActGovernment Orders

3:40 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, I want to thank the member for her passion. I know that she is very concerned about what is happening on the crime issue. I disagree with the member who asked the question.

I have an article from December 2008, which shows very clearly that crime rates are inextricably linked to economic performance. It means that if we look at the unemployment rate and track it, violent crime goes up almost as much, but property crime is even more of an increase than the increase in unemployment.

What it says to me is that when people get desperate, when EI benefits run out, when they do not know how to pay the next bill, sometimes they make mistakes.

Much of the legislation that the Conservative government has brought forward shows the Conservatives want to punish everybody, throw them all in jail and throw away the key. In fact, we should be managing the economy better, then there will be less crime. That is a perfect crime prevention example.

I want to thank the member for raising it. I will give her an opportunity to comment.

Jobs and Economic Growth ActGovernment Orders

3:40 p.m.

Bloc

Maria Mourani Bloc Ahuntsic, QC

Mr. Speaker, I would like to thank my colleague. He summarized the situation beautifully. Unfortunately, crime does not just spring up out of nowhere. Criminals are not born, they are made.

I am still talking about Winnipeg, but it could be anywhere. At the Ma Mawi Wi Chi Itata Centre, I met youth who were barely 16. Their experiences included the death of a parent, poverty, dropping out of school, sexual assault, drugs, violence. How can we judge children in this type of situation and not think that they will be recruited into street gangs? These youth are looking for love and a family, and street gangs say that they are their family, that they will feed them and give them power, that they will protect them and make them stronger than everyone else, that they will be their family. That is what street gangs give them.

We should not put these children in jail. They are victims. We should give them the chance to work, to go to school, to be loved and to live. That is how we will fight crime.

Jobs and Economic Growth ActGovernment Orders

3:40 p.m.

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I know you want me to ask a question about Bill C-9, the 880-page omnibus bill that the government has introduced in the House today.

I know the member is certainly interested in the softwood lumber issue. This particular bill raises the export tariff on softwood lumber products from Ontario, Quebec, Manitoba and Saskatchewan by 10%.

It is basically designed to bring Canada into compliance with the decision of the London Court of International Arbitration tribunal regarding the evaluation of export volumes from Ontario, Quebec, Manitoba and Saskatchewan. The tribunal ruled that Canada must apply compensatory export charges of $68.26 million in accordance with the softwood lumber accord.

We know the forestry industry is already in trouble with widespread unemployment. My colleague, the member for Burnaby—New Westminster, has talked at length in this House about the softwood lumber sellout perpetrated by various parties in this House. Would the member comment on this provision of Bill C-9, which will basically further hurt the forestry industry in this country?

Jobs and Economic Growth ActGovernment Orders

3:45 p.m.

Bloc

Maria Mourani Bloc Ahuntsic, QC

Mr. Speaker, I would like to thank my colleague for his question.

In all honesty, I have to say that I am not a softwood lumber expert. I am more of an expert on public safety. All that I can tell my colleague is that Quebec has not received its fair share. Clearly we will continue to stand up for the forestry industry.

Jobs and Economic Growth ActGovernment Orders

3:45 p.m.

Bloc

Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC

Mr. Speaker, first of all, I must congratulate my colleague from Ahuntsic for her excellent work. During the week that she was in Winnipeg, she helped police in their seizure of a record 15,000 marijuana plants in Montreal. She works very hard on the ground. And she was in all the media this weekend.

I would like to ask her how she manages to do so much at once.

Jobs and Economic Growth ActGovernment Orders

3:45 p.m.

Bloc

Maria Mourani Bloc Ahuntsic, QC

Mr. Speaker, I would like to thank my colleague for his question. I am an organized woman and I have my colleagues' help in getting things done. And I would like to thank them for that.

It was quite something to be able to help in the arrest of 13 individuals linked to Asian organized crime. I told police about 15,500 plants on the third floor of my constituency office building. I think they chose the wrong place to grow marijuana.

Jobs and Economic Growth ActGovernment Orders

3:45 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Mr. Speaker, the member is from Montreal and our ridings are close to one another. I would like to know why she is not supporting the budget even though it is good for Montreal.

Jobs and Economic Growth ActGovernment Orders

3:45 p.m.

Bloc

Maria Mourani Bloc Ahuntsic, QC

Mr. Speaker, I would like to thank my colleague for his question.

We cannot support a budget that has only one, two or three useful measures while the rest is no good. We support a budget in its entirety.

I could ask him the same question: if they agree with the budget, why are they not voting in favour of it? And if they do not agree with the budget, why are they not voting against it? He and his party are in no position to be lecturing me.

Jobs and Economic Growth ActGovernment Orders

3:45 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, I am pleased to participate in the debate on Bill C-9, which is the budget implementation bill. I believe it was tabled last Monday and I had the opportunity to go to the briefing session by departmental officials.

Members will know that this act covers a broad range of changes in the laws of Canada, most of which are related to this year's budget, but a number of items were not matters of budget. In fact, it is fair to say that, to the extent that there are things that were not in the budget, this represents an omnibus bill.

At last count, there were over 30 different acts of Parliament that were impacted by this. It is very difficult to give a coherent speech about Bill C-9, so I thought I would try to concentrate on a couple things that are important to point out to hon. members.

I had taken copious notes. Interestingly enough, a copy of the bill was not available for the briefing and members were at a disadvantage in not being able to ask questions. I noted a matter that has been mentioned a couple of times here dealing with amendments to the Softwood Lumber Products Export Charge Act, 2006, which would provide for a higher rate of charge on the export of certain softwood lumber products from the regions of Ontario, Quebec, Manitoba and Saskatchewan.

This goes back to 2006. It is a tribunal decision and seeks to recover $68.26 million from those provinces. Once the moneys are recovered, then the additional tax will cease.

I saw an inequity there. In the case of Manitoba, the volume of business it did and the proportion of its contribution to the over-collection of the $68.26 million was very small. This is going to be applied to the first dollar and every dollar of softwood exports as we move forward.

The amount of $68 million-plus is going to be collected by whoever is selling when. If Manitoba actually sells nothing until the $68 million is collected, it will not pay any of the 10%, but that is not the way the real world works. The fact of the matter is that these provinces are in the softwood lumber business and they are selling as much as they can of their quality products for export purposes.

The inequity is that a province like Manitoba is being disproportionately penalized by being thrown into this. The tribunal made a mistake and it is not an appealable decision. This is unfortunate. The Government of Canada, in terms of making its representations to the tribunal, let these provinces down. It let them down. It knew the decision was not appealable. It must have known that this was not going to be equitable to, for instance, Manitoba, which in fact was responsible for a very small proportion of the $68 million.

I thought that was certainly worth noting. The government did not get the job done. That is what happened. It did not get the job done. It should have been more vigilant on that particular issue.

The next issue many of my constituents have talked about is the whole scenario of problems and complaints about debit and credit cards. In part 12 of Bill C-9, there are enactments on the payment card networks act, the purpose of which is to regulate national payment card networks and commercial practices for payment card network operators and, among other things, and this deals with debit cards as well as credit cards, it will deal with such things as disclosure, fees charged to obtain a card, for instance, merchant contracts, the cancellation of cards, any new fees, and a couple of other minor things.

One thing it does not include is anything that comes anywhere close to touching interest rates charged on these instruments, credit cards and debit cards. Canadians were asking for that.

The government has made all of these changes, but what it has not done is try to find out how some of these usuarist rates can be dealt with. Far too many people get caught in a credit crunch. Unfortunately they rely on credit cards for basic necessities. When people are on EI benefits and the money does not come in and they cannot pay the credit cards, all of a sudden they pay usuarist rates, which could go as low as 18% but as high as 29%.

This was a significant item. When we enter a recession, when we know we will be in a downturn for at least five years, and some say even eight years, this is the time to deal with it. If the security or the credit worthiness of people is not there, the banks have to take responsibility of identifying that rather than soaking people year after year and then having absolutely no relief whatsoever from their government when people are drawn in by companies. I thought that was very concerning.

I note also, and I think people will see this to be a positive, that part 17 would amend the Bank Act and other related statutes to provide a framework for enabling credit unions to incorporate and continue as banks. This is a good thing. When I was on the finance committee and we dealt with bank mergers and the like, the big point was we needed more competition in the banking sector. Credit unions were offered this opportunity to step up, and it has finally happened. Credit unions will actually start to have a national presence in our country, and that is a positive.

There is another matter that caught to my attention. Part 20 amends the Canadian Environmental Assessment Act. There are certain process requirements, comprehensive studies and the like. What I have found is it amends the act to provide in the legislation rather than by regulations that an environmental assessment is not required for certain federally-funded infrastructure projects. The Canadian Environmental Assessment Act is not applicable.

Since when did protection of the environment of Canada become an option? We have a federal Canadian Environmental Assessment Act to protect our environment. Federal infrastructure projects have no special status. There can be problems. I am sorry if some projects cannot have an environmental assessment and still get done within a government's time frame.

When we started this program, this whole thing about getting infrastructure projects, the government always talked about shovel ready. To most people that would mean these are projects that are well advanced and ready to go and that could retain existing jobs and create new jobs. What we do not need is “Let's see if we can hunt around for a contractor. Let's see if we can do this thing. Let's get the things approved through our city councils”. That is not shovel ready.

The government has seriously misled Canadians by suggesting that somehow the infrastructure program would be the solution because it would have shovel ready. The only thing that was shovel ready was the words coming out of Conservatives mouths. That was the problem.

It is awful when we consider that the last fiscal year and this fiscal year about $3.5 billion of infrastructure approved funding lapsed. It did not get out. I know why? The government had already made the decisions that put us on a track heading into a recession. In fact, Canada was in a recession even before the global economic troubles occurred. That is why money lapsed, so the deficit the government would show would be lower than it otherwise would be. It is window dressing.

Mark my words, we are going to have the same thing again. This money may have been put on the table for stimulus, but I would be prepared to say right now that a lot of that money will in fact lapse because there are some technical problems.

I have seen so many projects and municipalities come forward and say that they could not do them. I hope the government understands that if these projects have all this work and if they do not go forward, because of some timing or whatever, we have lost the opportunity to have jobs. About a half million Canadians will lose their employment insurance benefits before we know it. This is a recipe for very significant problems for Canada.

It is worth noting the Brian Mulroney governments, which ended in 1993. In the last Mulroney government, the employment insurance fund was operating at a deficit. More claims were made against employment insurance than premiums being collected, to the tune of about $12 billion. The auditor general said that the government had a separate bank account, just like the government wants to set up now in this new EI corporation. All the premiums went in and the benefits came out. It said that over time it would balance it.

Look at our history. Sometimes EI funds do not balance themselves. The government is the only one that will be able to fund it. Therefore, having a separate bank account simply does not cut it, but it serves a purpose. The purpose is that in Bill C-9, the government would eliminate the record keeping on $57 billion of surplus that was collected from employers and employees over time.

I know why it is there. It is there because Canada did not enter a recession in the early 2000s like the United States. We had 10 years. Once the budget was balanced after the Mulroney government passed down a $42 billion deficit, it took until 1997 to balance the books and then we had 10 good years of surplus. We were able to reinvest in our health care system, in our public service, which serves Canadians so well, in the social network and the transfers to the provinces for all the needs of Canadians, especially for those who are unable to help themselves. That is why it is there.

However, in Bill C-9, under part 24, would amend the Employment Insurance Act to establish, in the accounts of Canada, an account known as the employment insurance operating account. The government will close the employment insurance account. It is hard to follow that, but this account, which is a notional account, will be gone. The responsibilities attached to that account will also be wiped out.

Therefore, during the Mulroney years, when the auditor general found out that the government was operating a deficit year after year, the auditor general said that it was a government program and that the operation of a government program must be included in the determination of the surplus or deficit of a government in each of its fiscal years, which it was not. If it was a balance, it would have no impact. If it was operating at a deficit, the government accounts would be misleading Canadians to the tune of $12 billion.

The auditor general ordered the Government of Canada, under Brian Mulroney, to discontinue the use of that account and that the moneys would be accounted for as part of the consolidated revenue fund, in other words, as part of the determination of the government's annual surplus or deficit.

Even though the physical dollars were not in a separate bank account, the government kept track of money in and money out. When we had a situation where we had 10 years of not going into recession, in each of those years there was a reduction in the employment insurance premiums. The rules associated with the employment insurance account were that if there was a surplus, the government had to keep two years on hand, which was about $24 billion on hand to take care of a recession. That was the reserve. However, anything over that the government had two choices. One was to reduce premiums until it got back down to the $24 billion reserve level or introduce new programs so the cost of providing benefits would go up and that would also help the notional surplus to go down.

I raise this because this makes sense to me. The government has now set up an account, where it has put $2 billion into a management group. Starting from January 1, 2009, I believe, all premium dollars are to be dedicated to this new account, all benefits coming out of it. While we are in a recession, there are more payouts than there are premiums coming in. It is operating at a deficit now.

However, the Auditor General told me, when I asked her directly, notwithstanding the government is attempting, again, to hide the true impacts of this recession on Canada and Canadians, that the deficit included in this new employment insurance account would be included in the determination of a surplus or a deficit for the Government of Canada, on an annual basis. Therefore, it will not able to hide it.

However, what the government cannot say, and even the finance minister said it today, is that it was somehow the Liberals because they built up this surplus. The accumulation of a surplus meant that we could not reduce the premiums or introduce new employment insurance benefits fast enough because we had the highest employment rates in 30 years, or the lowest unemployment rates in 30 years, however one wants to look at it. When we have that, we cannot adjust that quickly. Therefore, it did go up $57 billion of additional funds more than was necessary to fund that program if it were on a stand-alone basis operated by some third party. That is the fact. However, with Bill C-9, the government has said that it will not be responsible for the $57 billion. It is just going to keep it.

The government says that the Liberals stole it. If the Auditor General says we have to include it in our consolidated revenue fund, it is pretty straightforward that we will not take the surplus and leave it sit in some bank account. We will pay down debt and reduce the debt charges.

However, the EI account was also, in addition to keeping the premiums surplus there, crediting interest on an annual basis. Much of that $57 billion is interest earned on the $57 billion.

The government cannot say that anybody else is responsible for taking away from employees and employers the accumulated equity they had in the EI plan. Bill C-9 would take away that responsibility. It would take away the responsibility to give back that money by reduced premiums or improved EI benefits. The government has misled Canadians on that basis.

I want to talk about the idea of crime about which the previous speaker spoke.

I feel so strongly that Canadians should be taken care of. I once heard a line something to the effect that the measure of success of a country is not so much an economic measure as it is a measure of the health and well-being of its people.

We are in a period now where many Canadians are in jeopardy. They are going to make mistakes. As I said in a earlier question, our experience in Canada is that when the unemployment rate goes up, the crime rate goes up. Violent crime tracks it almost identically. Property crime goes even beyond that.

Therefore, it is easy to make the argument that if we do not take care of the economy with jobs and innovation and take care of the people's needs, if we say, “Let's balance the books first and then we'll take care of the problems later,” we are saying it is okay that crime goes up. Yet the government says, no, we have to be tough on crime.

If the government wants to be tough on crime, it had better be effective on the economy and jobs and innovation. Those are the kinds of things we have to do. Everything in our economy and in our social circumstance in Canada is inextricably linked. We just cannot do one thing at the expense of another. We have to address the full needs of Canadians at all times. Accordingly the government has not done the job.

Jobs and Economic Growth ActGovernment Orders

4:05 p.m.

Kootenay—Columbia B.C.

Conservative

Jim Abbott ConservativeParliamentary Secretary to the Minister of International Cooperation

Mr. Speaker, it has been very entertaining to listen to my friend. His speech could have been better started with, “Once, long ago and far away”, and he could have started his fairytale that way. His explanation of how the Liberals handled employment insurance is absurd. The fact is that the Liberals constantly ran a surplus so that the employment insurance fund became a form of employment tax.

I can recall sitting on his side of the House when the finance minister, Paul Martin, stood in this place and admitted that he had taken the unemployment insurance surplus, had put it into general revenue and spent it. The money is gone. It was spent by the previous government. Let us be clear that the money no longer exists because it went out through the Liberal government. It is gone.

I do not understand how the member can possibly stand there and tell us this fairytale.

Jobs and Economic Growth ActGovernment Orders

4:05 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, the member's comments show that he is not prepared to be accountable to Canadians about the facts.

We still have a national debt. When there is a $57 billion surplus in the EI fund, it is not spent on cabinet ministers' limousines. It offsets debt that is required to finance the nation. We have a national debt. It is not spent, gone and lost, otherwise the interest rates on the national debt would go up simply because it was not paid down.

There are many other priorities that have not been taken care of. I would say to the member that an aging society is one of the biggest challenges we have and I encourage him to take an interest in Canadians in need who are in the twilight of their lives.

Jobs and Economic Growth ActGovernment Orders

4:10 p.m.

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, my comments have more to do with his leader's apparent flip-flop on corporate taxes. He may or may not agree with what his leader did, but certainly in the year 2000 the then finance minister, Paul Martin, cut corporate taxes by a considerable amount. The cuts have been continued under the present government, to the point where we will be 12 points lower than the Americans, at around 15% by 2012.

All this money needs to be made up somewhere and, of course, it is being made up by personal income tax, which has doubled over the last number of years. As a matter of fact, the business community does not back up the government's argument that corporate taxes are a good thing for the economy. For example, Statistics Canada says that business spending on machinery and equipment has actually declined as a share of GDP.

Given that the member's leader at last week's think-tank indicated that he was now against corporate taxes, I would ask him to clarify as to where the leader actually sits on corporate tax reductions at this time.

Jobs and Economic Growth ActGovernment Orders

4:10 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, I do not think anybody is against corporate taxes. I think the member is talking about whether they are increased or decreased.

In the 16 years I have been here, finance minister Paul Martin, and even the current member who was a finance minister as well. always talked about taxes in the context of whether tax cuts were affordable. That is the key. All tax cuts are good in terms of corporations if they create jobs and improve the competitive environment. However, right now our rates are competitive and we need fiscal wiggle room to deal with the needs of the people. That is why the leader of the official opposition has said that the corporate tax cuts are not affordable to Canadians when we consider the consequences to the people in the trenches who do not have jobs, who do not have EI benefits any more and whose pensions are at risk.

We have serious issues to address and now is not the time to give corporate tax cuts and wish and hope that somehow we will get money back. The economic lags are such that it would be mismatched anyway, which means it makes no sense.

Jobs and Economic Growth ActGovernment Orders

4:10 p.m.

Conservative

Bruce Stanton Conservative Simcoe North, ON

Mr. Speaker, I just want to take the member back to his earlier comments in regards to the Canadian environmental assessment initiative that is part of this bill. He expressed some concerns. This is more of a comment than anything.

As I look at the section in this bill that refers to expediting some of these important projects and things like Canada's strategic infrastructure fund, recreational infrastructure Canada, projects under the Canada Mortgage and Housing Corporation and projects under the Building Canada fund, these are all projects that all members will know are time sensitive.

The assurances for those are given in terms of the minister's ability. Where there are projects that are sensitive from an environmental point of view, assessments can still be undertaken and the regulators are still in place that will have an ability to do that. I wonder if the member has perhaps failed to recognize that in the bill.

Jobs and Economic Growth ActGovernment Orders

4:10 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, absolutely not. As a matter of fact it is the one that I concentrated on the most and asked the most questions on at the briefing. Yes, an environmental assessment can go forward at any time but this gives the authority to the federal government to exempt a project from an environmental assessment. In my view, fiscal expediency does not trump prudence in terms of protecting our environment.

Jobs and Economic Growth ActGovernment Orders

4:15 p.m.

NDP

Dennis Bevington NDP Western Arctic, NT

Mr. Speaker, I want to go back to the Aboriginal Healing Foundation. To my community and communities in the Northwest Territories, this is an issue that has stood out in this budget as being one that—

Jobs and Economic Growth ActGovernment Orders

4:15 p.m.

Conservative

Bruce Stanton Conservative Simcoe North, ON

Mr. Speaker, I rise on a point of order. I question whether the member is really asking a question or making a comment pertaining to this bill. There is an issue of relevance as it relates to the topic here today.

Jobs and Economic Growth ActGovernment Orders

4:15 p.m.

Conservative

The Acting Speaker Conservative Barry Devolin

I am going to allow the member for Western Arctic to continue. This is a large bill with a lot in it. I hope and expect that before he gets to the question, the hon. member will make it relevant to Bill C-9.

Jobs and Economic Growth ActGovernment Orders

4:15 p.m.

NDP

Dennis Bevington NDP Western Arctic, NT

Mr. Speaker, this particular subject, the Aboriginal Healing Foundation, is one where we are seeing the start of many cuts that will be made by the government. This year's budget is one that does not really have a future to it. It is a budget that is holding the status quo on a number of areas.

With the Aboriginal Healing Foundation, the government chose to cut the budget knowing that, for any further work in this field, the existing program may carry forward for a year or so. This truly represents the start of many cuts that will take place to our social envelope. This budget bill represents a holding pattern that will change very dramatically over the next year or so.

Jobs and Economic Growth ActGovernment Orders

4:15 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, this place had an emergency debate that went until midnight the other night on the very subject. It really goes to the point that I made earlier about the success of a country. It is really not an economic measure. It is a measure of the health and well-being of its people and its first nations people in particular.

We have very serious problems. I am concerned that the government thinks it will somehow balance the books over five, six or eight years but it is not thinking about the consequences of its actions. Whether it has to do with crime, aboriginal health issues, children, age or pensions, it has not even thought about it. All it wants to do is talk about its economic action plan. It spent $5 million during the Olympics to tell people that it was called the “Economic Action Plan”. That is what I call irresponsible government.

Jobs and Economic Growth ActGovernment Orders

4:15 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Mr. Speaker, I am happy to speak to the budget bill today.

When we talk about the budget, we have to talk numbers. Here are some numbers and some facts.

In September 2008, the Minister of Finance said that the country had not dipped into a deficit and that we were still running a surplus and would run one that year. The minister stuck to his guns and projected an $800 million surplus for 2008-09.

By the time he delivered his fiscal update two months later on November 27, 2008, the country already had a deficit of over $6 billion, even though he projected a $100 million surplus for 2009-10.

The same finance minister told Reuters that there would be a surplus in 2009-10:

It's a question of making sure that we maintain a surplus. I'm comfortable with a relatively modest surplus…I think we can maintain that. We're disciplined enough to do that and that's how we plan.

Yet one week earlier, on November 20, 2008, the Parliamentary Budget Officer painted a bleaker picture. He said:

Looking forward, assuming status quo fiscal policy, the downgraded economic outlook translates into a deterioration in the budgetary balance, putting the Government’s stated fiscal targets and objectives at risk. In the PBO survey average scenario, modest deficits are projected in the near term.

The actual results bear the Parliamentary Budget Officer’s forecast out.

On January 21, 2009, before budget 2009 was introduced, the Parliamentary Budget Officer revised the government's 2009-10 forecast to project a $13 billion deficit, four months after the finance minister projected a $100 million surplus. Thirteen billion dollars and $100 million are not the same. Millions and billions are not the same thing. The actual deficit before the economic action plan was $15.6 billion, well within the Parliamentary Budget Officer’s ball park.

Hon. members will recall this.

The Minister of Finance told the Edmonton Journal on October 9, 2008, that we would not run up a deficit. However, in his 2009 budget two months later, he projected a deficit of $33.7 billion for 2009-10. The deficit for 2009, after the economic action plan, climbed to $54 billion. That is $20 billion over the estimate. It is $20 billion more than forecast.

The finance minister is on record saying that for the year 2009-10, Canada's budget would be as follows, and it all depends on what time of year it is: October 2009, $6 billion surplus; November, not even a month later in the economic update, $100 million surplus; two months later, January in budget 2009, $33.7 billion deficit; and after stimulus spending, a $54 billion deficit.

Everyone knows that a country depends on the vitality of its economy. That is why the Liberal Party of Canada has always focused on creating a dynamic Canadian economy.

In 1993, when the Liberal Party came to power, it realized that the Conservatives, under Brian Mulroney, had spent the cupboard bare. It took years of sound economic management and difficult decisions on the part of the Liberal government to get the Canadian economy back on track and finally balance the budget.

In fact, the Liberal Party did such a good job with the economy that it started to accumulate surpluses, and it used those surpluses to lower taxes and fund social programs, such as health care, education, research and innovation, as well as to pay down the national debt.

That was important, because it provided the Liberal government with the resources it needed to do good things for Canadians. For instance, just before Paul Martin's government was defeated, the Liberal Party had reached an agreement with the provinces to give them child care services similar to the Quebec system.

The Liberals also negotiated the Kelowna accord with the first nations of Canada. This accord would have resolved a number of disputes.

We were also instrumental in reaching an international agreement at the climate change conference to extend the implementation of the Kyoto protocol beyond 2012 and we convinced the UN to adopt the Canadian concept of “responsibility to protect” during international crises.

As a result of the Conservatives' petty political vision, Canadians can no longer dream about a better country that offers equality and justice for all.

Immediately after the 2006 election, the first thing the Conservatives did was to throw out the Kelowna accord and the agreement on a national day care system and to ignore our international commitment on the environment.

The Conservatives are trying to tell us that because of the recession, we cannot afford to be leaders in the emerging fields of green technologies, we cannot invest in our labour force, we cannot invest in our companies, we cannot be world leaders in peace initiatives and we cannot expect to ever afford things such as pharmacare or daycare.

That is the difference between the Liberal Party and the Conservatives: we, the Liberals, strongly believe that the government can be a positive force that helps Canadians and makes Canada stronger. The Conservatives think that the government is not in the business of helping Canadians thrive.

It is not surprising that over time, with a Conservative government in power, we have watched surpluses melt like snow in the sun and Canada become saddled with a huge deficit once again.

The Conservatives like to claim they are financially responsible and that they are determined to balance the budget, but I have a hard time buying that, since it took them only one year to spend the largest surplus ever accumulated in the history of Canada.

In fact, since 2006, the Conservative government has the dubious distinction of the being the biggest spending government in the history of Canada year after year.

If they spent all that money, then the question is: what did they spend it on?

There is no national day care system. There is no agreement with the first nations. There is less money for research. There is less money for innovation. There is less money for the environment. There is less money for education.

Hospital wait times have never been so long. Pensions have not increased. Universities have received nothing.

Given the Conservatives' track record that I have just outlined, a track record of waste and incompetence, it comes as no surprise to me that this budget fails even in the most basic of tests. This is partly because the minister's numbers just cannot be trusted.

The Conservative government does not get it. Once again it has released projections that contradict the projections of the independent Parliamentary Budget Officer who works with a small staff. The minister uses calculations that envision an unrealistic best case scenario while the Parliamentary Budget Officer uses more realistic calculations. The minister claims the budget deficit will fall to $1.8 billion by 2014-15, while the Parliamentary Budget Officer projects a $12.3 billion deficit in 2014-15.

The Parliamentary Budget Officer has proven that he is far more accurate than the finance minister at predicting Canada's financial future over the past several years, and as I said, with the limited resources that he has at his disposal. When I heard that the finance minister released projections that were far out of line with those of the Parliamentary Budget Officer, I thought it was groundhog day. How many times will the Conservatives make the same mistake and how long before they learn from it?

Another reason the budget fails is that the Conservatives do not invest. The Conservatives spend. To get out of a deficit and a recession, governments must invest wisely. There are serious problems facing Canadians as a result of the government's lack of vision. The government has spent more money than any other government in Canadian history. The government has turned record surpluses into record deficits. In spite of spending money at record levels, the government has not delivered sustainable results for Canadians.

Can Canadians say that they are better off today than they were four years ago? Conservative inaction today will cost us even more in the future when the problem becomes less manageable. For example, we cannot send military personnel to a field of combat or on a peacekeeping mission and not take care of the soldiers once they get back. There is nothing in the budget for veterans. Veterans are not being helped with post-traumatic stress disorder. Immigrants are not being helped in order to succeed in their new lives. In a riding such as mine where there is a large number of immigrants, people are knocking on the door asking for help. The majority of them are immigrants and there is just no help for them. There is no help for them to integrate.

There is no plan in the budget to deal with the strains on our health care system. Forget about reading the newspaper, people only need to look at the paper to see pictures of people waiting for an OR. There is no plan to deal with the challenges of an aging population. Pensions are not being protected. Imagine, the hottest topic in Canada right now is pensions and what is in the budget? Nothing.

With regard to pensions, since December 2009 our party has proposed three reforms that the Prime Minister should consider immediately. These reforms include recommendations that could be implemented immediately to address the important issue of pensions.

Here are the three recommendations or proposals. First, establish a supplementary Canada pension plan to help Canadians save more. Second, give employees with stranded pensions following corporate bankruptcies the option of growing their pensions through the assets of the Canada pension plan. Third, protect vulnerable Canadians on long-term disability by giving them status as preferred creditors in cases of bankruptcy.

Too few Canadians save for their retirement and for that reason we need a less complicated savings system that is secure and reliable and will encourage savings.

For various reasons, Canadians do not save enough for their retirement. The government must do more to encourage Canadians to save more. This budget does not do that.

One third of Canadians do not have retirement savings other than what is offered through the Canada or Quebec pension plan, old age security and the guaranteed income supplement. Another third do not have sufficient retirement savings to maintain their current standard of living.

Mr. Speaker, more than half of Canadian families do not have an employer sponsored pension plan. The Canada and Quebec pension plans cover 93% of workers. However, by themselves they are insufficient.

According to Statistics Canada, the $32.4 billion paid into RRSPs in 2006 represents just 7% of the maximum eligible contribution. Almost $500 billion in RRSP contribution room remained unused. The government must take immediate action.

To grow and prosper, the government must take advantage of opportunities to become leaders in emerging industries. This budget fails because while the Obama administration and even the Chinese government are investing heavily to make their countries more competitive, the Conservatives are slashing investments that could make Canada a leaner and greener competitor on the world stage. The eco-energy program for renewable power production was cancelled. The budgets of Canada's research councils were slashed by $148 million last year and only $32 million was reinvested this year, and they are supposed to say thank you.

Even where money is made available for green projects, the Conservatives do not know how to spend it. For example, 93% of the green infrastructure fund was not spent last year because the government does not believe in investing, and $160 million of approved funding for the Canadian Space Agency has not been invested over the past two years.

At a time when Canadians need good jobs in order to put food on the table and fight this recession, the Conservative government is picking the pockets of small business owners who are our key to job creation. The government has spent Canadians' money irresponsibly and run up massive debts. It is now trying to make small businesses pay for its mistakes. This budget introduces $13 billion in payroll taxes. This outrageous tax hike will probably kill about 220,000 small business jobs. Small business owners cannot afford a tax hike and Canadians cannot afford the Conservative government.

The underlying reason this budget is so bad is that the Conservatives lack vision. This has been the case ever since their first budget. This is not a novelty. The Conservatives do not have a plan for Canada going forward. They do not propose any long-term solutions, only campaign-friendly treats in this budget.

This budget fails to address several key areas, such as early childhood education. There is no commitment to early childhood education for families. Parents need affordable daycare spaces for their kids while they are at work. Instead of creating daycare spaces, the Conservatives cut cheques to Canadian parents that barely begin to cover the cost of daycare and then they have to pay tax on that little cheque that they receive. It is not a solution. It is a wasteful bribe that is designed to get votes, not results. No new child care spaces have been created under the Conservative government.

Higher education is another area of concern. Canada is suffering from a productivity gap compared to the U.S. and other countries. In a changing world where what one knows is going to be the difference between success and failure, the government is doing nothing to ensure that young Canadians get the help they need to pursue a higher education.

The only way for our economy to prosper enough to eliminate the Conservative deficit that we are in for is for Canada to have a dynamic workforce that outproduces our competitors. They have to be educated, efficient and engaged citizens who will make our country more prosperous.

The jobs we need are not low-skill part-time jobs that can be outsourced. We need to attract high-skill jobs that pay well. The only way to do that is not with another tax cut for the Prime Minister's corporate masters. It is by making sure that businesses around the world know that if they need a job done well, the Canadian worker is the one who is going to get it done better, faster and cheaper than anyone else.

We need innovators, artists, executives and craftspeople who have the tools to outcompete the rest of the world, but this can only be accomplished if we invest in our population. A country of minimum wage earners without job security will not be able to pay for increased pensions and medicare costs that we know are coming, but countries that can equip their young people now with the tools to succeed in the future will have a huge competitive advantage.

The environment has been ignored once again by the Conservatives in this budget. Copenhagen was an embarrassment, so there is nothing in the budget for it. Throughout the world, countries and companies with foresight are rushing to develop new technologies, new strategies and new incentives to turn their economies into lean, green money-making machines, but the government refuses to get in on the ground floor of an economic centre that is about to boom.

Not only is the Prime Minister not leading the green revolution, he is actively obstructing it. Canadian delegations used to walk into international conferences and command the attention of the room because everyone admired what Canada stood for and how we carried ourselves. The Prime Minister's shameful handling of the environment has all but eroded the esteem that the international community once had for Canada.

The budget bill is inherently flawed because the bill is massive in all the wrong ways. The price tag is massive, the waste is massive and the scope is massive. The government has included several items that have no business being in a budget bill. We do not understand why it decided to include so many unusual items in the bill. It does not want to have an honest debate on these separate issues on their own merits, so I feel the government is probably trying to hide something.

The bill is overpriced, overstuffed and overbudgeted, but still manages to be inflexible and ineffective, much like the government that tabled it.

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4:35 p.m.

Conservative

Dave Van Kesteren Conservative Chatham-Kent—Essex, ON

Mr. Speaker, I listened with interest to the hon. member's speech.

I think he forgets the circumstances in which we found ourselves in 2008 and the meltdown. The result of that was that the organizations of states got together, recognizing the drastic condition we were in, to implement some measures. One of those was to delegate some of our GDP, our money from the governments, each government would delegate some of their GDP to shore up their economies, and we made that commitment as well.

I am very thankful that we spent that money on infrastructure. I am sure the member knows that Statistics Canada announced just yesterday that, for the fifth straight month, GDP grew in Canada. In fact January's increase was the biggest monthly increase since December 2006.

We also read in the paper that KPMG ranked Canada the most competitive industrialized country for job creations.

There was an article by Patricia Croft of RBC who said that Canada really has come out of this a winner in many regards and thinks we can stand head and shoulders above in many instances.

Therefore my question for the member is this. What other industrialized country would he suggest has weathered this global recession better than Canada has?

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4:35 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Mr. Speaker, I want to thank the hon. member for asking me the question, but I cannot believe that this question is actually being asked.

It is fine that it has been asked during question period. The example of using any other country in the G7, no matter what other country has also fallen in recession, is the same example as a house on a street that has been totally renovated, with fire proofing, hurricane proofing and so on, and all of a sudden all the houses on the street are burnt down including the one that has been fire proofed and hurricane proofed because the person who did the job or the person who was living in the house forgot to close the door or forgot to do something like closing the shutters.

The Liberal Party prepared this country to be a leader of the G7. This country went in as a leader before the recession started. It came out as a leader, not because of what the Conservatives did but because of what the previous Liberal Party did while it was in government.