Debates of April 15th, 2013

Opposition Motion—Budget 2013

[John Rafferty, NDP, Thunder Bay—Rainy River, ON]

Mr. Speaker, I know that the hon. member was listening very closely to the previous speaker and the last question that came from the other side. There is a logic there that I would like the member to comment on.

He said that these tariffs are really punishment for those countries that are not negotiating very well with free trade, and an attempt to give them a little push to move forward. As a result of that, Canadians are paying higher prices for all sorts of things.

I wonder if the member would like to make a comment about the idea of using rising tariffs to force countries into trade agreements, with the end result that things cost more for Canadians.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I believe that the member for Markham—Unionville addressed the question. He did a wonderful job of explaining that there are different ways in which we can administer tariffs.

At the end of the day, we would have liked to see a balanced approach. There was no balanced approach dealing with tariffs from the government. There is no consistent pattern. What we saw was the reduction of 37 tariffs.

The Conservatives went out of their way to try to tell Canadians how wonderful they are, patting themselves on the back and saying “Look, we have reduced these tariffs”, as if they had reduced taxes. Well, with those 37, yes they did do that. On the other hand, 1,300 tariffs were actually increased. We did not see any government press releases talking about how they increased the taxes.

There is a balance that is required.

[Joan Crockatt, Conservative, Calgary Centre, AB]

Mr. Speaker, it is kind of remarkable and almost ludicrous to see that the Liberals are expressing concern over taxes when they have voted against most of the 150 tax cuts that the Conservatives have put into place.

I would like to bust their myths by asking them to address a few of the facts. First and foremost is one that the member for Markham—Unionville, a former revenue minister, should know well. That is that Canada has the lowest federal tax burden in 50 years, including when he was the revenue minister.

He talked about raising taxes on families, when the truth is that taxes have gone down $3,200 on average for every Canadian family. If we include the universal child tax benefit, they have gone down $5,600. Tariffs have been cut by $590 million.

Will the Liberals come clean and admit that Canadian taxes have come down to the lowest level in 50 years, under this Conservative government?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member is very selective in terms of what she chooses to comment on.

Earlier today, we had a Conservative member stand in his place, glowing and trying to give the impression that the Conservatives were the best thing when it came to deficits. I indicated then that the reality is quite different from what the Conservatives try to portray.

The example I used then was how the Conservatives inherited a huge multi-billion dollar surplus and they converted it into a multi-billion dollar deficit. We can find that during the 1990s, the Reform-Conservatives voted against things such as balanced budgets and tariffs that were being reduced back then.

I suspect that government to government, Liberals versus Conservatives, we will find that the Liberal Party would have come ahead of the Conservative Party on many different policy fronts, especially anything to deal with the financial--

[The Acting Speaker, Conservative, Bruce Stanton]

Order, please. We have time for a very short question.

Questions and comments, the hon. Parliamentary Secretary to the Minister of International Cooperation, a short question.

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

Mr. Speaker, I had the opportunity over the last two weekends to spend time with the chambers of commerce in my riding. Newmarket and Aurora each had their own exposition, chamber home show, and I had the opportunity to speak not only to hundreds of vendors at those chambers but to thousands of my constituents.

I would like to ask my colleague whether or not, with all of the great rapport we have had with our chambers and the great feedback we have had about the budget, he has spoken to his chambers of commerce.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I have done better than that. I have talked to many constituents, some of whom no doubt are members of chambers. There is a responsibility for us to talk not only to some of those stakeholders but also to constituents.

I would put it in the form of a question to the member. Has she talked to her constituents who are now going to have to pay more for school supplies as a direct result of this tax increase? Has she talked to individuals who are going to have to pay more for the 1,200 and whatever number of tariff increases? What do her constituents have to say about those tax increases that her government is imposing on Canadians?

[The Acting Speaker, Conservative, Bruce Stanton]

Before we resume debate, I must inform the hon. member for Québec that she only has five minutes for her speech, since it is the end of the time allotted for today's business of supply.

The hon. member for Québec has the floor.

[Annick Papillon, NDP, Québec, QC]

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—

[The Acting Speaker, Conservative, Bruce Stanton]

The hon. member's time has expired.

The hon. member for Skeena—Bulkley Valley on a point of order.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, there have been consultations among the parties and I hope that if you seek it, you would find unanimous consent for the following:

That this House condemn the attacks perpetrated during the 2013 Boston Marathon and express its deepest sympathies to the victims of this senseless violence and to their families.

[The Acting Speaker, Conservative, Bruce Stanton]

Does the hon. member for Skeena—Bulkley Valley have the unanimous consent of the House?

[Some hon. members]

Agreed.

No.

[The Acting Speaker, Conservative, Bruce Stanton]

The question is on today's opposition motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Acting Speaker, Conservative, Bruce Stanton]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Acting Speaker, Conservative, Bruce Stanton]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Acting Speaker, Conservative, Bruce Stanton]

In my opinion the nays have it.

And five or more members having risen:

[Nycole Turmel, NDP, Hull—Aylmer, QC]

Mr. Speaker, I request that the division be deferred until tomorrow, at the end of the time provided for government orders.

[The Acting Speaker, Conservative, Bruce Stanton]

Accordingly the vote stands deferred until tomorrow at the end of government orders.

[Gordon O'Connor, Conservative, Carleton—Mississippi Mills, ON]

Mr. Speaker, I ask that you see the clock at 6:30 p.m.

[The Acting Speaker, Conservative, Bruce Stanton]

Is that agreed?

[Some hon. members]

Agreed.