Debates of March 25th, 2013

Financial Statement of Minister of Finance

[James Rajotte, Conservative, Edmonton—Leduc, AB]

Mr. Speaker, does my colleague on the other side of the House support the investments in innovation and research outlined in chapter 3.4 of the budget. These include increased funding for the granting councils; funding for Genome Canada; additional funding for the Canada Foundation for Innovation, for the National Research Council, for investments by SMEs in research for business development; and money for Sustainable Development Technology Canada. It builds upon the investments we have made in research with respect to the Vanier graduate scholarships, the Banting Postdoctoral Fellowships, the science and technology strategy of 2007, as well as the investments in terms of the venture capital financing.

Does she support these initiatives in budget 2013 or not?

[Megan Leslie, NDP, Halifax, NS]

Mr. Speaker, it is my Edmonton day.

It is hard to answer that question as a yes or no, even though I know that is what the member would like me to do. It is hard because I would have to unpack what is in there. For example, with SDTC, first of all, there is a big announcement about funding but it is only $1 million for next year and then it is all going to mythically appear spontaneously after that. However, if we look at SDTC funding in the past, we have had projects that have received $6 million in funding in one shot. Therefore, I do not understand how in 2013 SDTC getting $1 million is actually something to celebrate.

There is a lot of smoke and mirrors. This is a bit of a shell game and if the member can prove to me that these sustainable development technology organizations are actually going to get this money, that is another question entirely. I do not think he can do that.

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

Mr. Speaker, come to think of it, this is just another sleight of hand, because infrastructure spending will be carried out over 10 years instead of seven, but there will be less money per year.

An in-depth review of the budget, which has been in the red for eight years, shows that it might be possible to balance the books immediately. I believe that the Conservatives have made certain choices in order to give money to their friends and to wait until the next election to balance the budget, in order to win votes.

[Megan Leslie, NDP, Halifax, NS]

Mr. Speaker, there are definitely a lot of these kinds of tricks in the budget.

The Conservatives are patting themselves on the back about this budget. However, it lacks solutions, vision and meaningful provisions that would improve our vision of Canada.

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, I am pleased to rise today on behalf of the people of Red Deer to speak to the federal budget for the next fiscal year. I will be splitting my time with the great member for Newmarket—Aurora.

I offer my congratulations and appreciation to the Minister of Finance and the officials at the Department of Finance for their continued hard work managing Canada's fiscal policy.

I would also like to thank the minister for consulting with Canadians and giving us the opportunity to submit the recommendations of our constituents directly to his office. I am pleased to see that suggestions from the people of Red Deer, which I forwarded to the Minister of Finance, have been heard and included in this budget. I invited constituents to submit their recommendations directly to my office. I also held round table meetings with business owners and operators in my riding. One of the main points that I heard from multiple constituents was the need for a long-term vision for public infrastructure that allows planning at the local level.

Red Deer is one of the fastest growing cities. It is a hub of economic activity and has seen a significant and rapid increase in population over the past decade. This is great for the Red Deer economy but it puts a strain on public infrastructure.

We will remember that in budget 2011, the government indicated that it would develop a new plan to support public infrastructure that would extend beyond the support that we have for the expiry of the 2007 building Canada plan. This was to take place in 2014. We have now come to that point and the government is delivering on its promise with a new building Canada plan beginning next year.

The new building Canada plan responds to the infrastructure needs of our communities and represents the largest investment in job-creating infrastructure in the history of Canada. Investments in Canada's public infrastructure create jobs and economic growth and provide a high quality of life for families in every city and community across the country. Canada's prosperity is supported by a vast and complex network of highways and roads, water and waste water infrastructure, transit systems and recreational and cultural facilities. This network reaches into every community and touches every Canadian.

In central Alberta we have seen the results of this government's investments and its co-operation with the governments of Alberta and its municipalities. The strain on our public infrastructure has been eased with projects such as the Highway 11A interchange, the resurfacing of Highway 2 from Highway 2A to Bowden and the resurfacing of the Cottonwood Road and Range Road 270.

In Red Deer we have upgraded the city's traffic signal control system, the Red Deer water treatment plant and the Red Deer College campus. We have upgrades to the Benalto and Lousana's waste water storage and treatment facilities, the construction of the Penhold Regional Multiplex, the new Innisfail Public Library and the full replacement of the street curbing and all underground municipal infrastructure for 23rd Street and Westview Crescent in Bowden.

These are just some of the results in my riding of this government's commitment to infrastructure investments. We look forward to more co-operation with the Alberta government and our municipalities under the new building Canada plan.

Another recurring component of my consultations with constituents continues to be taxes, whether personal income taxes, the GST or business taxes. My constituents have expressed appreciation for this government's commitment to find savings within the federal government in order to manage the country's deficit rather than raising taxes on hard-working Canadians.

We know that business taxes have a significant effect on job creation. A competitive tax regime attracts businesses, increases investment in the Canadian economy and creates Canadian jobs.

The temporary hiring credit for small businesses has been well received in my riding. I heard many times through my consultations with small business owners that it was something that employers felt should be continued. I am pleased that economic action plan 2013 proposed to expand and extend the temporary hiring credit for small businesses for one more year. What I have heard from small business owners in central Alberta is that this allows them to grow their operations and hire more workers.

The result of our government's broad-based tax reductions are jobs, plain and simple. We have created an environment where businesses can hire employees. We are proud to say that Canada now boasts the lowest overall tax rate on new business investment in the G7.

The biggest challenge facing employers in Canada is no longer crippling taxes but a shortage of skilled tradespeople, and this is especially evident in Alberta. We recognize the importance of apprentices to Canada's economy and the benefits of providing financial support to tradespeople and the employers that hire them.

Our previous budgets have offered unprecedented support to the trades with the apprenticeship incentive grant, the apprenticeship completion grant, the tradesperson's tools deduction, the apprenticeship job creation tax credit and the extension of the tuition tax credit for occupational exam fees. There has never been a better time for Canadians to learn a skilled trade. The job market is thriving and support from this government is unwavering for Canadians, whether they are continuing to refine their skills and further their careers or they are looking to get into the exciting field of trades.

Economic action plan 2013 delivers our support for skilled trades. We want to reduce barriers to accreditation in the skilled trades and to do this we have committed funding to harmonize requirements for apprentices and to examine the methods of assessment in targeted skilled trades. This will ensure that more apprentices complete their training and it will encourage mobility.

In addition, we are changing our approach to procurement by introducing measures to support the use of apprentices in federal construction and maintenance contracts. The government will ensure that funds transferred to provinces and territories support the use of apprentices in infrastructure projects receiving federal funding.

We are introducing the Canada job grant, which will help Canadians get the skills they need for in-demand jobs.

I have experience in the registered apprenticeship program in Alberta. I was a work experience coordinator and saw first-hand the benefits of supporting apprentices. It is a labour sector that requires an integrated approach to education and job placement with on-the-job training. I am proud to be part of a government that is supporting apprentices and addressing the labour shortage of skilled tradespeople. Our approach is a win-win solution for workers, employers and the economy as a whole.

Our government also recognizes the contributions that people with disabilities make to our economy, work that provides them with a sense of dignity and independence. Last year, we announced the panel on labour market opportunities to identify private sector successes and best practices with regard to the labour market participation of persons with disabilities.

The panel consulted widely with Canadian firms of all sizes in a broad range of sectors across the country. In its report released in January of this year, “Rethinking disAbility in the private sector”, we found that many Canadians continue to have challenges regarding gainful employment. We are committed to working with provincial and territorial governments, employers and disability organizations to connect Canadians with available jobs.

In economic action plan 2013 the government has committed to introduce a new generation of labour market agreements for persons with disabilities by 2014 with an investment of $222 million per year. The reformed agreements will be designed to better meet the employment needs of Canadian businesses and to improve employment prospects.

We will also maintain the ongoing funding of $40 million per year for the opportunities fund for persons with disabilities and provide additional funding for the Social Sciences and Humanities Research Council of Canada to support research relating to labour market participation. We believe that Canadians with disabilities have skills and we are committed to improving their employment possibilities.

As a former high school teacher I know that it is important for all Canadians to have access to information on a variety of careers in order to make informed choices about their education early in life. Good choices early on can help to ensure that young Canadians obtain the skills and experience necessary to avoid unnecessary debt and to get a better start to their careers.

We want to communicate with young Canadians and provide them with the information they need to know which occupations are in high demand. We will promote education in high demand fields, including the skilled trades, science, technology, engineering and mathematics. We also know that the transition to a first job can be challenging, so this budget provides funding for an extra 5,000 paid internships for recent post-secondary graduates.

It is no surprise that this government's support for education has received praise from the Association of Universities and Colleges of Canada. I was in Olds College on the weekend celebrating its 100th anniversary and I heard the same thing from folks there, that we are on the mark with our targeted funding for research, post-secondary support and skilled trades initiatives.

It seems that every credible organization has lauded this federal budget. We are creating jobs, protecting health and social transfers and keeping taxes low, all while managing to reduce the federal deficit. We are doing this by finding savings within the government rather than shifting the burden onto Canadians.

This is a Conservative budget and I am proud to stand here on behalf of central Albertans and support this responsible spending planned by our government.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, I would like to begin by agreeing with my colleague about one thing, that since ancient times, the best way to communicate craft trade skills has been through the formal apprenticeship system. This has been true since the ancient Babylonian Code of Hammurabi, and is as relevant today as it was 2,000 years ago.

My question for the member is a pointed one and it builds from the labour market strategy, or the lack of one, and the EI system. He knows, as a former apprenticeship coordinator, that when people take their school component of their apprenticeship, they are not laid off by the employer, they are allowed to go and they are allowed to collect EI for that six weeks, or whatever it is, for their annual school component.

Why then is there a waiting period, as if they have been laid off? Why is there an interruption in their income maintenance when apprentices go to community college to do their six week trade component? Would the member not agree with me that if we are trying to encourage young people to go into the apprenticeable trades, there should be no interruption in income maintenance when they leave the job to go to school and then back to the job again?

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, we have constantly been trying to make changes to the EI program that are going to be best benefit individuals. This new concept with the Canada job grant is one of those things that is going to be looking at all possibilities.

We have to recognize the fact that we are looking into this and in a year's time we are going to be spending time speaking to each and every one of the provinces, trying to get input from their positions and their points of view. Certainly this will be one thing I would assume will come up in discussions.

I look forward to the opportunity to advance those positions.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Mr. Speaker, for a couple of years now, I have been hearing from constituents about how it is difficult to get apprenticeships. I have also heard about the long-term projections that show us we need young people to consider entering the skilled trades.

I wonder why the emphasis the government placed on apprenticeships in this years' budget could not have been put into previous year's budgets. Why has the government waited so long to put out a budget that has an emphasis on apprenticeships?

The reason why I ask this is it seems we are paying the price now. I was talking to somebody from Windsor who was saying that the automobile industry was going gangbusters now and that there were auto parts suppliers in Windsor that did not have enough people to do the work that they could be doing. This is because of a lack of people in the skilled trades.

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, from another perspective, we can think about many jobs. He mentioned the issues that were taking place in the automobile industry. We can think back to all the projects that are sitting on the shelf right now in so many areas simply because we cannot get the trades people there.

We hear people saying that they cannot get jobs in the right places and everything like that. Quite frankly, there are billions of dollars just sitting there, but companies know that they cannot get people to work for them and they cannot get that type of thing organized. Because of that, the projects stay on the shelf.

These are the issues we have. That is why it is so important for us to look at different ways of getting the training for the in-demand jobs at the right time. I think this is the question was presented. We have to ensure we target it to those jobs that will be needed in the future.

[Lois Brown, Conservative, Parliamentary Secretary to the Minister of International Cooperation]

Mr. Speaker, I am pleased to rise in the House today on behalf of my constituents in Newmarket—Aurora to speak on economic action plan 2013. This is an excellent plan that continues our government's responsible focus on creating jobs, growth and long-term prosperity. I join so many others across the country in congratulating the Minister of Finance for tabling such a comprehensive document, created by a government that continues to listen, act and deliver results.

Since the depth of the global economic recession, the Canadian economy has created over 950,000 net new jobs, the best record among advanced economies. Economic action plan 2013 builds on this strong foundation by taking action in areas that my constituents have been asking for, as have all Canadians. It is focused on long-term growth and prosperity by connecting Canadians with available jobs, funding infrastructure and supporting Canada's manufacturing and small business sectors. It also stays on track to balance the budget by 2015. It increases federal transfer support to high records and keeps federal taxes at their lowest level in 50 years.

My constituents and local business community are especially pleased with the new Canada job grant, which will transform the way that Canadians receive skills training. We know that training in Canada is not sufficiently aligned to the skills employers need or to the jobs that are actually available. I have had businesses in my riding call to say how desperate they are for workers and ask what I can do to help. I am pleased that for the first time the Canada job grant will put skills training choices where they belong, in the hands of employers with unfilled jobs and Canadians who want to work.

Under the Canada job grant, individuals may qualify for up to $15,000 to learn new skills to accept a new or better job. How significant is this? The Canadian Chamber of Commerce said, “The measures announced in today's budget” are a significant step forward in “the federal government's attack on Canada's skills challenge”.

The Certified General Accountants Association of Canada said:

The government delivered a responsible budget for uncertain times. We welcome this skills training initiative. In creating the Job Grant fund, the federal government has shown leadership in addressing the growing skills gap. We encourage provinces to support it. All should benefit — employers, workers and governments.

The Canadian Taxpayers Federation said that it applauds

the government's plans to overhaul job training and keep a lid on spending....

It's good to see Ottawa getting training money directly in the hands of young workers so they can land a good-paying job.

Economic action plan 2013 also introduces the new building Canada plan. This new infrastructure plan involves $70 billion in federal infrastructure funding over 10 years, the largest federal investment in job creating infrastructure in Canadian history. This landmark plan responds to the number one request that I heard from my constituents during my pre-budget consultations, to invest in infrastructure. It also responds to my mayor's requests for stable predictable funding while reducing the burden for local major infrastructure from the property tax rolls.

The building Canada plan has a number of important components. The first is the new community improvement fund. This fund will provide $32.2 billion over 10 years in base funding for Canadian municipalities. It will index the gas tax fund and increase the GST rebate to municipalities, which can be used to build roads, public transit, recreational facilities and other community infrastructure. The gas tax fund indexing alone represents another $74,000 into Newmarket—Aurora coffers each and every year. This is on top of the $3.7 million in the federal gas tax fund that they now receive annually.

The second component of the building Canada plan is the new building Canada fund. There will be $14 billion of the fund that will support major economic infrastructure projects that have a national and regional significance. The $10 billion provincial-territorial infrastructure portion will support projects of national, regional and local significance in communities across the country. This will include highways, public transit, drinking water, waster water, connectivity and broadband, and innovation

The $10 billion provincial-territorial infrastructure portion will support projects of national, regional and local significance in communities across the country. This will include highways, public transit, drinking water, waste water, connectivity and broadband and innovation.

The third significant component of the new building Canada plan is the renewed P3 Canada fund: $1.25 billion will be invested and leveraged to find innovative ways to build infrastructure projects faster and to provide better value for Canadian taxpayers. Under P3 arrangements, governments continue to own the infrastructure assets, while the private sector plays a larger role in their design, construction, operation and maintenance. In doing so, the private sector assumes a greater share of project risks.

The building Canada plan also allocates $6 billion in existing infrastructure funding and $17 billion to build, operate and maintain federal public infrastructure. This $70 billion in federal funding over 10 years to building or maintaining Canada's infrastructure is welcome news to my constituents.

What are Canadians saying about our building Canada plan? The Federation of Canadian Municipalities says, “Today's budget delivers significant gains for Canada's cities and communities”.

The Canadian Urban Transit Association lauded the federal government's building Canada plan as a major step for planning and developing public transit in Canadian communities, saying:

We're really pleased to see this kind of commitment for public transit infrastructure...Never before has a federal government invested so much in public transit...This budget provides a solid framework to ensure that this will continue.

The significant support for Canada's manufacturing and small business sectors is also very exciting. Economic action plan 2013 takes action in three ways to support Canada's manufacturers. It provides tax relief for new manufacturing equipment through the extension of the temporary accelerated capital allowance. It builds equipment for the Canadian armed forces. It helps Canada's manufacturers to compete through a new advanced manufacturing fund for southern Ontario, the continuation of the strategic aerospace and defence initiative, investments in forestry industry transformation and a renewed automotive innovation fund.

The automotive help in particular in this budget, combined with the skills training funding, will assist key parts of Newmarket—Aurora's industrial base to become more competitive, thereby helping to keep our local economies strong.

Economic action plan 2013 maintains our government's commitment to balancing the budget by 2015. It builds on our past efforts by announcing an additional $1.7 billion in ongoing savings from areas such as reduced travel costs through the use of technology, standardized government information systems and enhanced integrity of the tax system by closing tax loopholes to ensure that everyone pays their fair share.

We are also continuing to keep taxes low for families, seniors and businesses which is very welcome news for my constituents in Newmarket—Aurora. Since 2006, we have reduced taxes over 150 times and the average family of four is paying $3,200 less in federal taxes each and every year.

Seniors are also benefiting from our low tax plan, paying on average $2,200 less in taxes each year. I have had many residents thank me for our actions to keep more money in the pockets of people.

There are so many other ways that economic action plan helps everyday Canadians that I cannot possibly mention them all. From enhanced tax relief for families raising children or who use home care services, to supporting and honouring our veterans by doubling the current funeral service reimbursement, economic action plan 2013 helps Canadians in my riding of Newmarket—Aurora as well as those across the country.

I urge all my colleagues to support this excellent budget.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I would simply like to hear what my colleague thinks about VIA Rail's budget being cut in half.

Everyone knows that the train was responsible for Canada's development. The Canada we know today would not exist if not for the railway out west. Regional economic development and northern development—which is close to my colleague's heart—depend on railways.

How does the member think that cutting more than 50% of VIA Rail's budget will negatively affect economic development?

[Lois Brown, Conservative, Newmarket—Aurora, ON]

Mr. Speaker, I would encourage my colleague to take a look at page 181 of the budget, where it talks about VIA Rail Canada and passenger rail services for remote communities in particular. It says:

Economic Action Plan 2013 proposes to provide $54.7 million in 2013-14 to support VIA Rail's operations and $58.2 million over five years to maintain passenger rail services for remote communities that have limited access to the national transportation network.

We are working to ensure that remote communities have access to VIA Rail and that people have jobs.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Speaker, I listened to the hon. member for Newmarket—Aurora talk about how her constituents were pleased with the tax reductions. There is always a price to pay for some things, and one of the things that has happened in the seven years of the Conservative government's rule has been that the national debt has increased by $124 billion so far. Of course, that has added quite a bit to our servicing charges.

I wonder what her constituents have told her about the fact that this year, for example, close to $30 billion will be paid by the government to the public debt charge that has occurred because we are now at $600 billion. How do they feel about that part of the big picture?

[Lois Brown, Conservative, Newmarket—Aurora, ON]

Mr. Speaker, I remind my hon. colleague that it was his party that was calling on our government to spend more money, and a coalition of opposition members was looking to spend far more money. My constituents are telling me that our government is doing a wonderful job.

The more important facts are that our government is looking to help Canadians develop new skills and training and getting Canadians back to work, because we know that there will be tax revenues if more people are working. We want Canada to get back to a balanced budget and we are working on that. Our goal is 2015. We are working hard to make that happen.

[Dean Del Mastro, Conservative, Parliamentary Secretary to the Prime Minister and to the Minister of Intergovernmental Affairs]

Mr. Speaker, I note that one thing Canada does particularly well is university research. Our government has been supporting that. Indeed, the Minister of State for Science and Technology and for the Federal Economic Development Agency for Southern Ontario has been promoting that.

I note that the government has set aside an additional $37 million to increase business partnerships with university research. Can the member speak about that? We want to improve productivity in Canada. We want to improve innovation. Could she talk a little about that measure?

[Lois Brown, Conservative, Newmarket—Aurora, ON]

Mr. Speaker, I was very pleased over the March break week to have the opportunity to visit the MaRS facility in Toronto and see several new businesses that are developing innovative products that are going to come to market. These are some of the most remarkable young people who have recently graduated with Ph.D.s in science and technology. We want to ensure those young people stay in our country, take that innovation to market and create more opportunities and jobs here in Canada.

[The Acting Speaker, Bruce Stanton]

It being 6:15 p.m., it is my duty to interrupt the proceedings and put forthwith all questions necessary to dispose of the amendment to the amendment now before the House.

The question is on the amendment to the amendment. Is it the pleasure of the House to adopt the amendment to the amendment?

[Some hon. members]

Agreed.

No.

[The Acting Speaker, Bruce Stanton]

All those in favour of the amendment to amendment will please say yea.

[Some hon. members]

Yea.

[The Acting Speaker, Bruce Stanton]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Acting Speaker, Bruce Stanton]

In my opinion the nays have it.

And five or more members having risen:

Call in the members.

(The House divided on the amendment to the amendment, which was negatived on the following division:)

Vote #647

The Budget

[The Speaker, Andrew Scheer]

I declare the subamendment defeated.