House of Commons Hansard #46 of the 41st Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was budget.

Topics

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

11:35 a.m.

NDP

Kennedy Stewart NDP Burnaby—Douglas, BC

Madam Speaker, I rise today to speak to Bill C-13, the second budget implementation act for the budget 2011.

While I agree that some of the topics covered in Bill C-13 are also subjects that we on this side of the House feel are important, I feel that this bill misses the mark widely and would not deliver what Canadians need, and I think my colleagues would agree. The topics are important but the content is weak.

While the government has entitled the bill, “keeping Canada's economy and jobs growing act”, I feel, and we feel on this side of the House, that it would do little to grow jobs or the economy.and suffice it to say that I support the title but, unfortunately, not the content.

While I will return to the specificsof the bill in a moment, I feel that it is important to discuss the context in which the bill has been tabled and to talk about what I see are a few very alarming trends, both with our own economy and internationally.

As both sides of this House will recognize, the world economy has become increasingly unpredictable and, due to the now globalized trading network, it is very hard for governments to insulate themselves from shocks, such as we are seeing in Greece, Italy and other European countries.

The mood of this uncertainty is often reflected in the moods shown by members opposite during these unpredictable times. On one day we see the members of the government thumping their desks and on the next day they almost seem to be in a panic about current events. The global waves seem to washing over on the government. One day it is boasting and the next day it is not sure what to do and it is wringing its hands.

What is most perplexing to me is that, while the government often wants the public to believe we are helpless in the face of these global forces, we hear over and over again that while there is really nothing we can do, these are economic shocks coming from elsewhere that we have no control over and, in the same breath, the government has single-handedly created hundreds of thousands of jobs within the economy. I think this is very inconsistent and it is something that the government has to remedy.

The government cannot have it both ways. It cannot say on the hand that it absolves itself from any responsibility for our current economic woes while, at the same time, taking the entire credit saying that the government itself creates these jobs, when it is clearly not true.

To be fair, this practice of double standards is a very bad habit, which most governments undertake, but, it is much better to be honest with Canadians and to really own up to what is going on within our economy and internationally. The government needs to tell Canadians the truth about what lies ahead for Canada and how the government plans to help Canadians maximize their potential in these uncertain economic times.

The government, for example, made a good start, or a small start, when the finance minister warned Canadians about reducing their personal debt loads. This is something that I think was honest and from the heart. It was not rhetoric. It was a genuine concern that I think we all share in this House, that Canadians are massively over-leveraged with their own budgets and they need to do something to reduce them. The government made a good start when it admitted this and it tried to warn Canadians about what is coming and what needs to happen in the future.

However, after that slight warning, the government seemed to go back to the rhetoric and now all we hear is that the world economy is in flux and that there is nothing the government can do about it. However, when there is any kind of report of job creation, the government takes credit for it.

The government needs to be honest, stick with being honest with Canadians and acknowledge the extent to which the global economy is shifting. European and North American economic dominance is being replaced with an Asian dominance. This is a trend that all Canadians see and it is something that the government needs to recognize and adapt to.

If we just look at GDP growth rates, that is what says it all. World Bank data shows that Canada's GDP growth rate was around 3% in 2010, where China's was around 10%. In 2009, we actually had a negative GDP growth rate of -2.5%, where China's economy continued to grow at a rate of 9%. While we went through a huge shock in 2008, China's growth was business as usual.

As one of my colleagues at Simon Fraser University, noted economist, John Richards, once said to me, “We've had our run. Now it's Asia's turn to dominate”. This is something that we need to recognize in this House and adapt to it.

It does look like times will increasingly get tough. The IMF has slashed our growth projections to 2.1% this year and just 1.7% next year. We can compare that again with China, which will be at a projected rate of about 9% or 10%. We can see that this is not a one-time, one-off event. This is a consistent happening where the GDP growth rate in Canada is shrinking while China's is growing.

We need to be honest with Canadians about where we are headed and what we can do to weather these economic times.

Bill C-13 and other measures taken by the government indicate to me that the government does not have much of a plan for the Canadian economy. It seems the government is content to encourage massive foreign investment in our resource industry, ram pipelines through to ship unconventional crude from the Alberta oil sands to Asian markets, roll back regulation in the north and mine it for all its worth, and then continue to ship unrefined products to foreign markets.

The problem is, that is yesterday's approach to managing the Canadian economy and it really lacks vision. The government needs s to stop relying on yesterday's flawed solutions to Canada's economic problems or Canada will be swamped by the global economy. It needs to recognize where we stand in relation to the rest of the world and plan accordingly.

Now that the major portion of this so-called budget bill centres on removing a relatively small amount of money from political parties does not show me that the government is serious about the major challenges that lie ahead for Canada, but rather that it is immersed in petty politics. This shines through in the rhetoric that we cannot do anything, that it is an international crisis and yet the government still takes credit for any kind of job creation in Canada.

Bill C-13 should include a vision for Canada that does not rely on hoping foreign companies and governments will pillage our natural resources, ship them to their shores, add value and then ship them back to us. This is yesterday's way of running the Canadian economy and we do not need that any more. In fact, we will not grow or flourish if we continue with this approach.

Bill C-13 would instill much more confidence in Canadians if it contained real measures to grow a secondary industry in this country. For example, in recent meetings I have had with petroleum producers in this country, with individual industries and their associations, they have revealed to me that the number of refineries in Canada has dramatically declined from almost 50 to under 20, with others under serious threat of closure. The bill has no plan to maintain this valuable refinery industry. It appears that the Conservatives would be happy to fade it away, and these refineries will fade away. We have seen them closed in Quebec, as has been mentioned here today in the House.

However, to put this in context, the largest refinery in Canada produces 300,000 barrels per day, which was a massive refinery when it was built many decades ago. India has recently built a complex that refines 1.2 million barrels per day. That number is sometimes hard to get one's head around but that is a massive refinery and more of these are on the horizon both in China and India.

We need to take stock of where we stand, not just in this industry but in other industries as well, in relation to our secondary production. We need to come up with a real plan to save these industries and ensure we think about how to grow them, if we can. We need a closely targeted investment to help these industries survive and thrive. Other countries have done it and we need to follow their lead. To simply throw up one's hands and say that the market will do this or that foreign investment will come in and save us is not the way forward.

The challenge for the government is to be honest with Canadians and provide an economic vision for the country that does more than rely on shipping raw resources to foreign countries. The bill does nothing to reassure me that the government has such a vision and I doubt that it does much to convince Canadians of this either.

It is worth reviewing a few facts and figures in my remaining minute or so to show where we stand.

Official unemployment in the country shows 1.4 million people out of work. However, if we include all of those who are discouraged and unemployed, it pushes that number to two million unemployed. This number may be structural. I have asked the government in the House to reveal what it thinks the natural rate of unemployment is. The U.S. tells us every month what its natural rate of unemployment is. The Conservative government will not do this. In fact, sometimes I wonder if it even knows what that statistic means. Is their plan to maintain our unemployment rate at 7% or to move forward and try to reduce that rate?

We need a vision but we do not have one.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

11:45 a.m.

NDP

Dany Morin NDP Chicoutimi—Le Fjord, QC

Madam Speaker, this fall, my colleague from Jonquière—Alma and I went to the Saguenay—Lac-Saint-Jean area to meet with seniors' groups. They shared many of their concerns with us and told us what issues they want us to fight for in the House of Commons, in Ottawa.

One concern is the protection of their pension funds, which are threatened whenever a company declares bankruptcy. I was disappointed to see that the Conservatives refused to include in their bill the suggestion—from seniors across Canada—that workers' funds should take precedence because these people have spent their whole lives investing in the company's pension fund and they want to be able to count on their pension.

What does my NDP colleague think about the fact that this bill does not really respond to what seniors want when it comes to protecting their pension funds?

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

11:50 a.m.

NDP

Kennedy Stewart NDP Burnaby—Douglas, BC

Madam Speaker, that is a reflection of what is lacking in the bill. It is filled with petty or small measures, some targeted at scoring points against the opposition. It contains no answers for Canadians. These are not just numbers on a sheet. These are real people who are facing uncertain times. It is especially tough for seniors who have planned for their retirement but who see it under threat because of the government's push for them to rely on markets for their pension rather than protecting or strengthening our good Canadian pension plan system.

We on this side of the House are disappointed with the measures in the bill and urge the government to do more.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

11:50 a.m.

NDP

Jean Rousseau NDP Compton—Stanstead, QC

Madam Speaker, speaking of small measures, I would like to ask my colleague how it can be that they want to encourage small business and rural economies, yet there are no measures to encourage environmental projects. There is no investment in the environment, which is everyone's future. There are no measures to stimulate projects in research and development or in practical projects on the ground. There are no development measures. Those types of projects could create a lot of jobs and many ideas come from people in the regions. But there are no measures to stimulate growth in the environmental sector.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

11:50 a.m.

NDP

Kennedy Stewart NDP Burnaby—Douglas, BC

Madam Speaker, I was talking about refineries. The vision of the NDP is for a green and sustainable future, which is where we need to be. It seems like the government has missed the boat on that. It has abandoned these types of investments.

For example, China and the U.S. are leading the way on solar and wind power investments. We seem to have thrown that away. We did have an opportunity. We were in it early. In the 1970s we were investing in solar power. The government decided not to continue and to leave it to other markets. It just extracts and sends out raw resources hoping that will be enough to keep our economy going. I do not think that is much of a plan and I do not think Canadians will find that much of a vision either. I much prefer the vision that my colleague outlined.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

11:50 a.m.

NDP

Jamie Nicholls NDP Vaudreuil—Soulanges, QC

Madam Speaker, mentioning the government's lack of vision is very apt.

Currently, we are trying to get increased funding for public transit projects. We are trying to make the economic argument that they help innovation and productivity. These projects would make the economy run smoothly. Sometimes it feels like we are running up against a brick wall because of the government's lack of vision. It does not see the economic benefits of these elements that we in the official opposition have been proposing.

Could the hon. member speak more to innovation and improvements with respect to Canada's economic productivity?

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

11:50 a.m.

NDP

Kennedy Stewart NDP Burnaby—Douglas, BC

Madam Speaker, what officials in Nordic countries have been doing is investing in clusters. They find areas of the country where private sector businesses are already thriving, whether it is with regard to sustainable resources or other types of industries, and then they help those industries grow. They do not create an industry from scratch. They invest in what is already there.

That is the kind of initiative we need to consider in the House, which we do not see coming from that side, and that is disappointing.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

11:50 a.m.

Conservative

Lawrence Toet Conservative Elmwood—Transcona, MB

Madam Speaker, it is an honour to rise in the House to speak on this matter that is most important to Canadians, Bill C-13, the Canadian economic action plan.

First, I would like to express my gratitude and humble honour to the constituents of Elmwood--Transcona for placing their trust in me to represent them here in Ottawa. It is a job that I take most seriously. It is also why I am very happy to speak to this next phase of Canada's economic action plan, something that I heard so much positive feedback about while speaking with my constituents in Elmwood--Transcona.

Canada can be proud that under the leadership of the Prime Minister and the Conservative government we have accomplished seven straight quarters of economic growth. In a time where in so many places across the globe people are suffering because of the weakness of their economy, here in Canada we can take pride and confidence in the fact that we are seeing movement in the right direction.

Canada is in one of the strongest fiscal positions of the world's top performing advanced economies. This is not an accident. With our continued focus on the strength of our economy, we can ensure that we will continue to see strong economic growth. In a time where so many places in the developed world are seeing serious job losses, we can be proud of the fact that since July 2009 Canada has created almost 600,000 net new jobs and over 80% of these being full-time.

With the Conservative government's continued focus on the Canadian economy and the things that are important to all Canadians, this next phase of the Canadian economic action plan offers a solid amount of strong initiatives that will aid all Canadians. With a focus on the people and groups of citizens that are important to Canadian society, such as families, seniors, small businesses, job creators, volunteer firefighters, manufacturers, students, farmers, and so many more, we can acknowledge that the primary concern of the government is to strengthen the ability of all Canadians. With initiatives that will keep taxes low and keep us on track to balance the budget, Canadians can be confident that we will continue to be a leading force in global economic recovery.

Families are integral to the strength of Canadian society, so it is important that as part of our economic strategy we offer programs and initiatives to help the families of Canada. In my riding of Elmwood--Transcona, I have spoken with many families, asking them for their thoughts on what is important to them. Many were able to remind me of their excitement regarding the tax credits promised during the federal election.

Today, I can proudly say that the Conservative government is ready to deliver on that front. With a new children's tax credit of a 15% non-refundable tax credit on up to $500 in eligible fees for programs associated with children's artistic, cultural, recreational, and developmental activities, the government is taking Canadian families seriously. We understand that it is important for children to be involved in positive activities. We also recognize that we can aid families in having their children participate in these types of activities with a tax credit that will help families keep more of their hard-earned money in their own pockets.

Often families have shared their concerns with the limit that was placed on claimable medical expenses of a dependent relative. With the next phase of the Canadian economic action plan, our government will be removing the $10,000 limit for these eligible medical expenses.

I am happy to share with members and all Canadians the facts regarding the new family caregiver tax credit. This is a 15% non-refundable tax credit on the amount of $2,000 for caregivers of all types of dependent relatives, including, for the first time, spouses, common law partners, and minor children. Along with the other incentives offered for families, I can attest that the concerns of families in Canada are recognized.

We take to heart the concerns that have been brought forward by Canadian families. It is due to our strong record of tax relief that the total tax saving for a typical family in Canada is over $3,000. That is taking to heart the concerns of Canadian families. That is a testament to this government's strong commitment to deliver on the promises it made to Canadians to keep more of their hard-earned money in their pockets.

Along with families, we recognize the growing needs of our seniors. Our Conservative government understands that Canada's seniors helped build and make our country great. That is why it is important to us to enhance the guaranteed income supplement, enhance the new horizons program for seniors, eliminate the mandatory retirement age for federally regulated employees, and extend the targeted initiative for older workers by $50 million.

By enhancing the GIS, where eligible low income seniors will receive additional benefits of up to $600 for single seniors and $840 for couples, we will be helping more than 680,000 seniors across our great country.

One elderly gentleman has stopped by my office multiple times, occasionally for other issues, but each time he comes in he is sure to tell me about how this increase to the annual GIS will make the difference for him and his wife between living very tight and being relieved of their financial concerns.

I am happy to speak today to our government delivering what is more than deserved by our Canadian seniors and to say to all the seniors in my riding of Elmwood—Transcona that another election promise is being delivered.

In my riding of Elmwood—Transcona I have had the pleasure of conversing with many of our small businesses. These men and women are happy to hear and see the incentives offered by the government to help them offer employment, start up their businesses, and run successfully in the Canadian marketplace.

With the new hiring credit for small business, a temporary one-time credit of up to $1,000 against a small firm's increased employment insurance premiums, this credit helps up to 525,000 employers defray the cost of additional hiring.

The Conservative government is excited to offer support also to youth entrepreneurs with $20 million to support the Canadian Youth Business Foundation's activities. This program has helped young entrepreneurs become the business leaders of tomorrow, through mentorship, learning resources and start up financing.

We have increased the small business limit to $500,000, referring to the amount of income earned by a small business eligible for the reduced federal tax rate. We have reduced the small business tax rate from 12% to 11%, along with other incentives on which I do not have time to go into details.

These incentives show our government's commitment to helping Canadian small businesses continue to be successful. We recognize the importance of small business to the Canadian economy.

Before I wrap up, there are a few other key parts of this phase of Canada's economic action plan that I would like to touch on.

In the continued efforts of the Conservative government to strengthen the integrity and accountability in government, as well as political activities, I would like to draw attention to the fact that in this stage of the economic action plan, we will continue to take taxpayers' dollars seriously. That is why, in this stage of Canada's economic action plan, we are following through on our government's campaign commitment to phase-out per vote subsidies for political parties.

The government will introduce legislation to gradually reduce the per-year, per-vote subsidy in increments, starting from April 1, 2012 until it is completely eliminated in 2015-16. This will generate savings of up to $30 million.

Our government has always opposed direct taxpayer subsidies to political parties and believes that political parties should rely primarily on their supporters for financing.

One other area I would like to touch on is the recognition of Canadian charities. We understand the important role that charity plays in Canadian society and we are committed to supporting that. That is why in budget 2006 we eliminated the capital gains tax associated with the donation of publicly listed securities to public charities. That is why budget 2010 reformed the disbursement quota to reduce administrative complexity.

In the next phase of Canada's economic action plan, we will build on our support for charities by cracking down on the few individuals who abuse the charitable system by enhancing transparency and strengthening compliance requirements, and providing the CRA with the necessary tools to deal with the charitable status of organizations where individuals involved have a history of abusing the system.

The Canadian government, with this next phase of the Canadian economic development plan, continues to show it puts all Canadians first. The Conservative government proves in this phase to continue to deliver on the election promises made to concerned Canadians. Our government will not lose focus of what is most important to Canadians, our economy. Rather, we will continue to implement good and transparent use of tax dollars that will be used to enhance our economy and allow us to remain the economic envy of the world.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

Noon

NDP

Jonathan Tremblay NDP Montmorency—Charlevoix—Haute-Côte-Nord, QC

Mr. Speaker, in debating Bill C-13, we can talk about how little the Conservative Party is proposing. We can also talk about what the Conservative Party is not doing. We can also talk about the promises the Conservative Party has broken during this Parliament and previous Parliaments. I will focus on only one aspect.

We have to remember the date of May 7, 2007. Hon. members might not remember that date. Although I am new, I certainly remember it. Following a promise in the previous budget to fight tax evasion, the current Minister of Finance made an about-face at the time and said that he was not able to fight tax evasion after all.

Where do the Conservative government's interests lie? Do they lie in defending all Canadians or the interests of Conservative taxpayers?

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:05 p.m.

Conservative

Lawrence Toet Conservative Elmwood—Transcona, MB

Mr. Speaker, as I said in my speech, the citizens of my riding of Elmwood—Transcona have rightly acknowledged that we are doing much for Canadian citizens across the spectrum. My riding has a different spectrum of citizens and they all see the benefits of this budget for them.

They have a desire to see us go ahead with what we have brought forward. We have lived up to our commitments and brought forward what we promised during the election campaign. I am hearing thanks from the citizens in my riding for us going forward with what we committed to.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:05 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I would like to ask the hon. member for Elmwood—Transcona a question focusing on the elimination of what is generally referred to as the per-vote subsidy. It has been less than $28 million per year over time and actually represents a very small portion of the total amount of tax dollars that go to federal political parties.

In an effort to cut federal tax dollars going to political parties, is the government considering cutting tax credits to its donors, which in 2009 came to over $10 million to the Conservative Party alone, or to electoral expense reimbursements, which in 2009 came to over $21 million to the Conservative Party alone?

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:05 p.m.

Conservative

Lawrence Toet Conservative Elmwood—Transcona, MB

Mr. Speaker, as I expressed before, we made a commitment to our electorate on the per-vote subsidy and we are continuing down that path. We promised the citizens of Canada that we would eliminate the per-vote subsidy. The feedback I get in my riding is very supportive of us continuing down this path. Constituents want Canadian political parties to stand on their own feet and not rely on subsidies from the federal government.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:05 p.m.

Conservative

Mike Wallace Conservative Burlington, ON

Mr. Speaker, I want to thank my colleague for his excellent speech today on the second half of the budget bill in terms of ensuring it is law before the end of the year. I appreciate his constituents voting for him and sending him here. He is doing a great job in the House and we appreciate that.

Of the number of items in today's bill, whether it is promotion of job creation through the temporary hiring credit, support for communities through the gas fund, the family caregiver tax credit, is there one or two that the member would like to particularly highlight that are really important to his riding in Winnipeg?

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:05 p.m.

Conservative

Lawrence Toet Conservative Elmwood—Transcona, MB

Mr. Speaker, there are a couple of items I want to highlight that I touched on in my speech. One is the work we are doing to help small businesses with their hiring credits and the extension of $500,000 to them. They see this as a great help. When I meet with small business owners, they say this is a fantastic opportunity for them to grow and expand their businesses. They want to do it on their own and be contributing members to the growth of the Canadian economy. They see great opportunity in that.

The other issue I touched on in my speech was seniors. They are very thankful for the GIS supplement. They see it as an acknowledgement of what they have done for our country and appreciate that we are recognizing what they have done to build Canada.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:05 p.m.

NDP

Malcolm Allen NDP Welland, ON

Mr. Speaker, I welcome my colleague from Elmwood—Transcona. His predecessor, Mr. Jim Maloway, was my seatmate at the far end of the House. He was elected again as an MLA in the New Democratic government in Manitoba. I congratulate Mr. Maloway on that. I do miss him as a seatmate, but nonetheless he is back in the Manitoba legislature and we are happy for him.

My colleague from Elmwood—Transcona said something and I had to write it down because I was slightly taken aback. In referring to the Conservative government, he said, “We put all Canadians first”. I would challenge my friend from Elmwood—Transcona on that one.

Regarding the tax credits laid out by the Conservatives, for all the things for children which they talked about, one might say it is admirable and that we want young people to get into the arts, sports and different clubs and to find a way to help parents make that happen financially. However, the difficulty is that it is supposed to help all Canadian families according to what my friend said. The reality, of course, is that this is not true. A tax credit cannot help all Canadian families because people who live in poverty do not pay tax. They cannot get the tax credit if they do not pay tax.

How does the government intend to help those families get their children into the arts and sports and join clubs and participate with other children, as this bill purports to do, when those families who can least afford to have their children join in the first place get the proverbial goose egg, nada, nothing, zero, not a penny, no financial help whatsoever? They will not receive one solitary red cent. Why? Because it is a tax credit. Tax credits are for people who have a certain amount of taxable income and remit taxes to the government and they get some form of credit back. It is elementary. Who does that credit really help? It helps people in the top income brackets, the folks who can actually afford to pay for all the things their young children may want to do.

As a parent of kids who are not so young now, when they were young my wife and I wanted them to participate in various activities. We had two well-paying jobs. I worked in the manufacturing sector and my spouse worked in the health care field. We were fortunate to be able to afford to have our three kids in the programs that they wanted to join. We had well-paying, full-time jobs, both of which were unionized. We had good pay, good benefits and good pensions. That is the type of workforce we want to create. That is the type of workforce that could benefit from tax credits, if that is the direction in which the government wants to go. It is not for those that are underemployed or unemployed, or for those who are in dire need, in fact in poverty, who still have children who will not be able to participate.

We have heard numbers being bandied back and forth. We have heard about the 600,000 net new jobs. There is an old saying which I will not repeat here because the language might be unparliamentary. It is about figures and figurers. We will leave aside as to who figures and who is the figurer trying to figure out what the figures are.

The bottom line is the real number. In July 2008 there were 17,084,200 people employed in the labour force in this country. In July 2011, a mere few months ago, there were 17,344,200 people employed in the labour force. I will be the figurer on this one. I think I can do the arithmetic; it does not seem too complicated. That is actually an increase of 260,000 jobs.

I am not sure where the government gets the figure of some 600,000 net new jobs. Net of course is the difference between what one had and what one has now, as most folks would see it. What we have is less than half that amount. If that be the case, who am I to quibble with Statistics Canada? I know the government did when it wanted to get rid of the long form census but that is a debate for another day.

Nonetheless, we can clearly see that the number of jobs purported to be created is significantly lower than what the government purports it to be.

My riding of Welland is a glorious place. I invite my colleagues to visit Welland. It is a wonderful place to be, but it suffers a huge amount of unemployment, because the manufacturing sector that was not supported by the government simply took off. It went to Mexico, Illinois, and Indiana. It packed up and went to China.

We watched Henniges Automotive dry up last month and send 300 workers and their families in Welland to the unemployment line. What is their future under the Conservative government? Less than 40% of Ontarians who are unemployed actually qualify for EI. That is the future for those folks who have been in and out of work over the last year and a half because of the downturn in that sector. The sector did not dry up. Henniges makes rubber mouldings for automobiles. It is headed to the United States. It is going to a state where it will get tax advantages because the government pours money into new firms and expands existing ones.

It is not a question of a business going out of business. It is a question of a company leaving this country and leaving our folks high and dry. We have seen this throughout Welland's history, especially in the last number of years. John Deere did exactly the same thing and the government washed its hands of the situation and said that is the way it goes. That is not good enough and it should not be the way it goes for Canadians.

I would like to pick up on the remarks of my colleague from Burnaby—Douglas. I am a little bit older than he is and when I was in high school, in grade nine, teachers talked about how we had to diversify the economy. At the time we were good at digging stuff out of the ground and cutting logs. We are still good at it today. In fact the mining sector is seen as one of the best in the world, which is a good thing. Except when I was in high school the idea was to take that stuff we dug out of the ground or the raw logs we cut down and do something with them. Manufacturing is what it is called. Manufacturing seems to be an ugly word these days. We seem not to want to manufacture; we let others do it because they are good at it somewhere else.

We have gone back 40 years. It is 40 years since I have been in high school. We have gone back four decades, back to the same old, same old, when clearly what economists and teachers in my high school and other schools were saying to young people like me as we looked forward to potential jobs, was to diversify the economy, make manufacturing jobs. It would give us an opportunity to work in good-paying full-time jobs with pensions and benefits, unionized jobs if that is the case. The economy would grow and so would our country. Lo and behold, what did we have during the 1970s? Someone who was my age at the time and lived in the heartland of this country, Ontario, could literally walk up the street and get a job the next day after quitting a job the day before.

Today we have young people who are still in school, not necessarily because they want to be there, but because they cannot find a job. They cannot start a career because there are no jobs in which to start careers, because of the limited opportunities over the last five to seven years. Yet the government presents a budget and all of those aspects are absent. All of those pieces that we would want to see and did see in the 1970s when we diversified the economy, when we actually made sure there were businesses where we could get a full-time job with good pay and benefits and pensions. We have eliminated them and now we have temps and people working on contract. We have itinerant workers.

It reminds me of the dirty thirties when men would stand outside the gate and wait for the boss to pick them one at a time and send the rest of them home to come back the next day and try again. That is what we are doing to our young people and it is criminal. We are wasting the potential of young folks who are our future by not making sure that we have the investments set up so they have a sustainable future, good paying full-time jobs with benefits and pensions. That is a crime. That is what is absent in the budget.

I suggest the government put it in the budget to make sure we look after not only those who are at retirement age, but those who are at the beginning stages of their lives, ready to walk into the new economy, so that they can participate in that new economy.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:20 p.m.

NDP

Jamie Nicholls NDP Vaudreuil—Soulanges, QC

Mr. Speaker, I think what we are seeing here is the inability of the government to make the transition from being a minority government to a majority government, in the sense that it does not have a long-term vision for the future. It is still going on with flashy little things here and there, trying to pull the wool over the eyes of Canadians with its programs, saying that it is taking care of Canadians' tax dollars.

With respect to the infrastructure program, making the gas tax permanent is great. However, the federal government takes 10¢ out of the pockets of the people when they pay for gas and gives them 5¢ back. What happens to the other 5¢? Why is that 5¢ not going to our municipalities which are currently so burdened?

The way the program is run is more about taking credit for doing things than actually taking concrete action on the ground. The bill does not have anything substantial to build the future we need to build.

Could my hon. colleague speak to that point?

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:20 p.m.

NDP

Malcolm Allen NDP Welland, ON

Mr. Speaker, it is absolutely true. As someone who spent five years as a municipal councillor, I know exactly what the member is talking about when it comes to the gas tax. I was on council the first time the gas tax money came down. Yes, it was decent money, but even in small communities it was not meeting the infrastructure needs. What greater way to invest in our infrastructure than to continue to do it now.

Let me quote Sherry Cooper . I do not think Sherry Cooper is a New Democrat. I will have to check with our party to make sure that she does not hold a card, but there is a leadership race on, and maybe she signed up for one. Sherry Cooper said:

The misplaced belief that the road to economic prosperity is paved by near-term fiscal tightening, as espoused by our own Prime Minister Stephen Harper and British Prime Minister David Cameron last week, shows we have learned nothing from Herbert Hoover’s response to the Great Depression.

If we invest in communities today, we will do two things. We will set communities up on a future path for prosperity, and we will put people who are not working back to work. What a grand notion that would be. We would increase employment levels and make our communities a better place through infrastructure. The bridges and tunnels in Montreal would be safe. Going into the future, communities could build on that prosperity and help young folks get a job.

What an amazing and novel idea that would be. Maybe the government should take that up.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:20 p.m.

Conservative

The Acting Speaker Conservative Bruce Stanton

Just a reminder to hon. members that the use of other hon. members' names, even if it is in the context of a quotation, is not permitted. It is something to keep an eye on.

Questions and comments.

The hon. member for Chicoutimi—Le Fjord.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:20 p.m.

NDP

Dany Morin NDP Chicoutimi—Le Fjord, QC

Mr. Speaker, the Conference Board of Canada indicated to us a few weeks ago that the gap between the rich and members of the middle class is growing rapidly in this country.

In studying this bill, I see many tax benefits for the rich and even for the upper middle class, but I see very little for the poor or the lower middle class. I would like my NDP colleague's opinion on the value of this bill for Canadians.

The NDP is known as the party that stands up for families and workers and I see very little for them. I would like my NDP colleague to confirm whether he is seeing what I am seeing, or not seeing, in this bill.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:20 p.m.

NDP

Malcolm Allen NDP Welland, ON

Mr. Speaker, the hon. member is absolutely right. There is nothing in this bill that addresses that issue.

That income gap is growing. By all measures every major economist not only in this country but worldwide has said the same thing. When Warren Buffett says that the gap is way too large and it is time for rich folks to pay some more, that is an indicator that the rich folks have too much. When a rich person says he has too much, people should believe him.

It is now time for those who have more to look at those who have less, not through charity, not by handing out charitable vouchers to folks, but by making sure that they get a fair piece of the economy, making sure that they get what they are entitled to through their hard work. Of course, they must go back to work first. That is the piece that must happen.

That is why we look to the government and ask: Where is the jobs plan? Why is the government not creating jobs for our folks, the young and the not so young? In my riding the vast majority of folks who are unemployed look like me. They are my age. They had jobs at one point in time, but now they do not, because of the trade agreements the government and the previous government put together that let all those jobs disappear.

My region, Welland, used to be the fourth highest paying region in the country, but it is not any more.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:25 p.m.

Conservative

Larry Miller Conservative Bruce—Grey—Owen Sound, ON

Mr. Speaker, I am pleased to speak once again in favour of budget 2011, or Bill C-13.

Our government has been working hard to keep our promises. We are continuing to focus on the economy, which is our top priority.

The current fragile stage of the global economy is apparent in the current situation facing Greece, Italy and our neighbours to the south. Canada's economy will no doubt feel the effect of what is happening in Europe and the United States; our government realizes that Canada's economic recovery is still fragile, and we are focused on creating jobs and economic growth for Canadians.

Budget 2011 includes many important initiatives designed to help strengthen our economy and provides support for our communities, our families, our farmers, our businesses and our small towns and rural communities.

The next phase of Canada's economic action plan will invest in the key drivers of economic growth: innovation, investment, education and training.

Canada's economic performance during the recovery stands out among advanced countries, showing seven straight quarters of economic growth. Nearly 540,000 net new jobs have been created since July 2009, with over 80% of them being full-time positions. Job creation and economic growth are important to the residents of Bruce--Grey--Owen Sound and certainly to all Canadians.

Our economic action plan is working. Our government's investments have been effective in shielding hard-working Canadians from the worst of our global recession, and we are committed to continuing our efforts to foster long-term growth and job creation.

Today I would like to highlight a number of initiatives included in budget 2011 that would benefit my riding and many communities across Canada.

The first is Canada's retirement income system. Our government understands the importance of a secure and dignified retirement for Canadians who have spent their lives contributing to our society. We continue to be committed to improving the financial literacy of Canadians, particularly by helping those who are saving for retirement to make informed decisions. Budget 2011 proposes to provide $3 million per year to undertake financial literacy initiatives.

Another initiative is the children's art tax credit. Since 2007, Canadians with children have been able to take advantage of the children's fitness tax credit, which promotes physical activity among children and recognizes the costs associated with extracurricular sports such as hockey, soccer and swimming.

As can be the case with participation in fitness activities, a child's participation in artistic, cultural, recreational and developmental activities can be difficult for parents to afford. Budget 2011 introduces a 15% non-refundable tax credit that would be available for a wide range of activities that contribute to a child's development and that are currently not available under the children's fitness tax credit. This credit will be provided on up to $500 of eligible fees per child. The introduction of this tax credit would promote the participation of young children in my riding and across Canada in extracurricular activities and would ease the financial burden on their parents.

With respect to seniors, budget 2011 would invest more than $300 million per year to enhance the GIS, or guaranteed income supplement, for seniors. This measure would provide a new top-up benefit of up to $600 for single seniors and $840 for couples. This benefit would improve the financial security of seniors in my riding and of more than 680,000 seniors across Canada.

We also have the family caregiver tax credit. Our government recognizes the personal sacrifice that many Canadians make to care for their family members with serious illnesses such as MS or ALS, just to mention a couple. We are proposing a family caregiver tax credit that would provide a 15% non-refundable credit on an amount of $2,000. This credit would help many families in my riding and an estimated 500,000 caregivers across Canada.

I have a sister who suffers from MS and I understand the toll that this disease and many other diseases can have on the victim and certainly on families. This tax credit can help ease the financial burden of individuals who provide care for family members who are combatting serious illnesses.

There is also the enhanced medical expense tax credit. Our government is also committed to helping ease the financial burden on Canadians who care for a dependent relative with extraordinary medical and disability-related expenses. Budget 2011 removes the $10,000 limit on the amount of eligible medical expenses that can be claimed on behalf of a financially dependent family member. This measure will apply for 2011 and subsequent tax years. This initiative is welcome news to the many constituents in my riding who care for a very ill or disabled family member.

Next is palliative and end-of-life care.

For Canadians living with life-threatening illnesses, no matter how old they are, appropriate palliative and end-of-life care helps maximize their quality of life and ensures respect for the patients and their families as they approach death. This government continues to support various programs and initiatives related to palliative and end-of-life care. This budget would provide one-time funding of $3 million to support the development of new community-integrated palliative care models.

Another very welcome and appreciated item in this budget is the volunteer firefighter tax credit.

My riding of Bruce—Grey—Owen Sound, with the exception of the City of Owen Sound, relies solely on the services of volunteer firefighters. Our government is proud of the nearly 85,000 volunteer firefighters who keep our communities safe across this country.

In recognition of their brave service, the budget introduced a 15% non-refundable volunteer firefighter tax credit on an amount of $3,000 for volunteer firefighters who perform at least 200 hours of service in their community each year.

Agriculture is the number one industry my riding. It is an important part of Canada's economy and is, as I said, the biggest industry in my riding. One of our government's priorities is to continue to promote long-term profitability and global competitiveness of Canadian farmers and agribusinesses. We have announced a two-year, $50 million agriculture innovation initiative to help Canada's farmers remain on the cutting edge of agriculture innovations. This is an investment we must make.

In early 2011 the Standing Committee on Agriculture and Agri-Food had the opportunity to travel across Canada during our biotechnology study. One key theme that was top of mind with producers and industry stakeholders was the importance of research to the competitiveness and profitability of Canadian farmers and agribusinesses.

Another important initiative to our government is strengthening food safety. Food safety from field to fork is fundamental to the health and wellness of all Canadians. In the 2011 budget, our government has taken steps to improve Canada's food safety system by providing an additional $100 million over five years, on a cash basis, to the Canadian Food Inspection Agency to enhance our food inspection capacity.

Without a doubt, investing in research and innovation and food safety initiatives would strengthen the foundation of Canada's agricultural sector and improve the ability of Canadian farmers and agribusinesses to compete in the domestic and global marketplace.

Another initiative is enhancing environmental protection of the Great Lakes. This measure is near and dear to my heart, as my riding is bordered on three sides by Georgian Bay and Lake Huron.

Protecting the water quality and the health of the Great Lakes is vital to ensuring that Canadians can depend on this rich ecosystem for drinking water, for recreation and for jobs. The Great Lakes are an important resource to the residents of my riding and to many other Canadians.

Building on the existing Great Lakes action plan and action plan for clean water, budget 2011 announces an additional $5 million over two years to improve near-shore water and ecosystem health and to better address the presence of phosphorus in the Great Lakes.

I have to mention that early in the new year, I intend to table a bill that would ban the sale or diversion of our fresh water in this country. It is something that is, as I said, near and dear to my heart.

In closing, I will mention that local small businesses are going to benefit. Our government recognizes that they are job creators and help to stimulate our economy, making them a crucial part of economic recovery. For these reasons, we have created the new hiring credit for small business, which would provide a temporary one-time credit of up $1,000 against any potential increases in 2011 EI premiums over 2010. This new credit would help over 525,000 employers to pay the cost of additional hiring.

Mr. Speaker, I know I am running out time. I look forward to answering any questions.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:35 p.m.

NDP

Christine Moore NDP Abitibi—Témiscamingue, QC

Mr. Speaker, I will focus in particular on the tax credit for family caregivers. I have been a nurse and I am familiar with the family caregiver situation. When they become caregivers, people often have no choice but to cut down on their hours of work. As a result, they do not earn enough money to benefit from this tax credit. Of the households with a caregiver, 65% declare a combined income of less than $45,000 and 23% declare an income of less than $20,000. The majority of family caregivers cannot even take advantage of these tax credits. During the holidays, I will work shifts as a nurse at my hospital. I would like to know what to tell the families of patients and the patients who, unfortunately, will become sick in January 2012. They must wait until March or April 2013 before, maybe, getting a tax credit after they file their taxes. What can I tell these patients who ask me what they can do to survive in the meantime?

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:35 p.m.

Conservative

Larry Miller Conservative Bruce—Grey—Owen Sound, ON

Mr. Speaker, I would like to thank my colleague across the floor for her great question, welcome her to the House of Commons and congratulate her. The profession of nursing is a very elegant career and it is not something everybody can do. I appreciate her work in that profession.

I am glad to hear that she supports our caregiver tax credit. As we know, there was never anything in place. I give our government a lot of credit for establishing it. Enough is never enough, but, as she pointed out, this is a well-deserved plan in our budget, and maybe in the future we can build on it. However, it is a great start, and I have had a lot of positive feedback about it.

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:35 p.m.

Liberal

Joyce Murray Liberal Vancouver Quadra, BC

Mr. Speaker, one of the most egregious things in this bill and budget is that tax credits are not refundable. It means that people who can already afford these activities would get an additional gift from the government, but those who cannot afford them would get no help at all, whether it is children in sports or arts or whatever the case may be.

I would like to ask the member this question: in his community, are there any people volunteering to fight fires who are between jobs, whose jobs have been phased out or who do not have a taxable level of earnings? Are any people like that volunteering to fight fires, and do they not also deserve a small part of taxpayer-funded credits for their work in the community?

Motions in AmendmentKeeping Canada's Economy and Jobs Growing ActGovernment Orders

12:35 p.m.

Conservative

Larry Miller Conservative Bruce—Grey—Owen Sound, ON

Mr. Speaker, I do not have the exact answer as to whether people who are between jobs are currently volunteer firefighters, but I think that point is irrelevant. Whether volunteers are between jobs or are working full time while being volunteer firefighters, they will qualify for the firefighter tax credit. I take it the member supports this measure; I know I have had positive feedback in my riding on it.