Mr. Speaker, I will just take a few seconds to congratulate the Rouyn-Noranda Huskies, who won the game against my Quebec Remparts. I must wear their colours proudly.
In the last election, the Conservatives made a commitment not to increase the tax burden on Canadians. In the weeks prior to the tabling of budget 2013, the Minister of Finance reaffirmed this commitment, promising Canadians that no new tax increases would be announced in the budget.
The truth is that Canadian consumers will pay roughly $8 billion more over the next five years. Budget 2013 is full of new tax increases on virtually everything, from hospital parking to credit unions and labour-sponsored investment funds. The most significant increases come from a change to import duties. The tariff hikes will increase the prices of some 1,290 types of products. As a result, Canadian consumers will have to pay more for a whole range of products.
According to the Retail Council of Canada, the changes in the classification of emerging countries for customs tariffs will increase the prices of some products by up to 18% and will far outweigh any lower prices that Canadians may pay because of the elimination of taxes on sporting goods and baby items.
Eliminating customs fees on children's clothing and sports equipment will deprive the government of $76 million. This was supposed to be a savings for Canadians, but it is not. Through this increase on products imported from these 72 countries, the government will receive $333 million a year. As such, the Conservative government has chosen to tax Canadian families to the tune of $257 million and that is just in this year's budget. It is therefore not $76 million in savings.
To name a few examples, tariffs on bicycles, strollers, coffee makers, school supplies and even iPods will go up. By increasing tariffs on over 80% of every type of import from more than 70 countries, the government is taking money directly out of Canadian consumers' wallets.
Sony Canada has warned consumers that they can expect an increase of 5% to 6% in the cost of MP3 players and iPods. This new 5% tax on iPods clearly illustrates the Conservatives' hypocrisy when it comes to tax increases.
This is what the Conservative member for Parry Sound—Muskoka said on December 14, 2010: “During this fragile economic recovery, the last thing Canadian families and consumers need is a massive new tax on iPods.”
It seems that the Conservatives changed their minds again, that they are bad managers or compulsive liars. It is very hard to tell which. But there is no doubt that the iPod tariff will go up. In the end, Canadians will have to pay more for MP3 players and many other consumer products.
For a government that has been saying for years how important it is to simplify the tax code, these changes are beyond comprehension and illustrate that the Conservatives are making things up as they go along. What the Conservatives are saying to consumers is that if a child has the opportunity to play hockey, then his parents might get to save some money. However, if his parents buy him a bicycle, then they are out of luck and they will have to pay more. It is illogical and outrageous.
Douglas Porter, chief economist at the Bank of Montreal and an expert on price disparity between Canada and the United States, indicated that these changes could further increase the price differences between the two countries. This situation could further damage Canadian businesses, which will find it even more difficult to compete with their American counterparts. Meanwhile, this cross-border price gap continues to widen. The government should be supporting Canadian retailers instead of giving consumers yet another reason to buy abroad.
A study conducted by the Bank of Montreal last year found that retail prices in Canada are still approximately 14% higher than those in the United States. Instead of giving Canadian families a break, the government is piling it on and increasing tariffs.
However, the economic situation of Canadian families is far from perfect. At the end of 2012, Canadian household consumer debt was nearly 6% higher than the previous year, according to a report released in February 2013. According to Statistics Canada's latest calculations—
