House of Commons Hansard #257 of the 41st Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was heritage.

Topics

Question No. 1291Questions on the Order PaperRoutine Proceedings

10:35 a.m.

Macleod Alberta

Conservative

Ted Menzies ConservativeMinister of State (Finance)

Mr. Speaker, with regard to (a), the Department of Finance has overall responsibility within the government for monitoring and reporting on Canada’s progress against the G20 commitment to rationalize inefficient fossil fuel subsidies.

With regard to (b), first and foremost, not only has the government never introduced any tax incentive favouring the oil and gas sector, but it has also formally committed to rationalize and phase out inefficient fossil fuel subsidies along with other G20 countries.

In support of that commitment, the government announced in 2007 and 2011 the phase-out of all tax preferences for oil sands producers relative to the conventional oil and gas sector. Indeed, due to the government’s action, the Income Tax Act does not include any tax preference specific to oil sands producers. As part of Economic Action Plan 2012, the government continued Canada’s efforts to meet our G20 commitment by phasing out the Atlantic investment tax credit for the oil and gas and mining sectors.

Moreover, the oil and gas sector faces the exact same general corporate income tax rate as all other sectors of the economy. Each year, the oil and gas sector pays billions of dollars in taxes, tax revenue used by governments to pay for health care and other social programs that Canadian families depend on. Furthermore, the oil and gas sector plays an important role in our economy, providing job opportunities for Canadians in communities across the country. The government will continually look for ways to further support global environmental commitments and eliminate inefficient fossil fuel subsidies.

Beyond the government’s recent steps outlined above to remove fossil fuel subsidies available in the oil and gas industry, it is also taking action through the tax system to encourage clean energy investments. Principally, the government has extended and expanded the scope of the accelerated capital cost allowance for clean energy generation equipment in recent years.

For instance, in 2011 the government expanded the incentive to include equipment that generates clean electricity using waste heat, while in 2012 it expanded the incentive to include a broader range of bioenergy equipment. Building on these measures, Economic Action Plan 2013 further expands eligibility for the incentive by including a broader range of biogas production equipment and equipment used to treat gases from waste.

Question No. 1294Questions on the Order PaperRoutine Proceedings

10:35 a.m.

NDP

Ryan Cleary NDP St. John's South—Mount Pearl, NL

With regard to the Department of Fisheries and Oceans: (a) how many commercial salmon licence holders remain in Newfoundland and Labrador; (b) when was the last time a buyout for commercial salmon licenses was instituted; (c) what has been the total cost to date of commercial salmon licence buyouts for the East coast of Canada by province; (d) is the department considering another buyout; and (e) what is the likelihood that the commercial salmon fishery will reopen?

Question No. 1294Questions on the Order PaperRoutine Proceedings

10:35 a.m.

Fredericton New Brunswick

Conservative

Keith Ashfield ConservativeMinister of Fisheries and Oceans and Minister for the Atlantic Gateway

Mr. Speaker, with regard to (a), there are 57 licence holders remaining in Newfoundland and Labrador whose licences were never retired.

With regard to (b), the last commercial salmon licence retirement programs were announced in 1998, for northern Labrador and Quebec.

With regard to (c), the federal government offered a series of salmon licence retirement programs for Atlantic Canada and Quebec dating back to the early 1980s. The federal government spent $53 million to retire commercial Atlantic salmon licences. The costs were as follows: Newfoundland and Labrador--$41,700,000; Nova Scotia--$3,500,000; Prince Edward Island--$52,000; New Brunswick--$4,700,000; and Quebec--$2,900,000.

With regard to (d), there are no further salmon licence retirement programs planned for any part of Atlantic Canada or Quebec.

With regard to (e), no opening of the commercial salmon fishery is planned at this time.

Question No. 1297Questions on the Order PaperRoutine Proceedings

10:35 a.m.

NDP

Hoang Mai NDP Brossard—La Prairie, QC

With regard to new bridges over the St. Lawrence river: (a) what is the specific purpose of the $14 million in table 3.3.2 of Budget 2013 and what is the breakdown of the costs; and (b) with respect to the $124.9 million to build a bridge-causeway between Nun's Island and the Island of Montreal in Chapter 3.3 of Budget 2013, what is the breakdown of the cost?

Question No. 1297Questions on the Order PaperRoutine Proceedings

10:35 a.m.

Roberval—Lac-Saint-Jean Québec

Conservative

Denis Lebel ConservativeMinister of Transport

Mr. Speaker, with regard to (a), the $14 million identified in table 3.3.2 of budget 2013 reflects accrual costs of the temporary bridge-causeway to replace the Nuns’ Island Bridge. The total costs of the bridge-causeway construction, $124.9 million, will be amortized linearly over the expected lifespan of the bridge-causeway.

With regard to (b), the preliminary breakdown of the $124.9 million to build the temporary bridge-causeway cannot be shared at this time as the breakdown reflects the value of contracts to be awarded through public tenders. Sharing the breakdown at this point would jeopardize the upcoming competitive processes.

Question No. 1299Questions on the Order PaperRoutine Proceedings

10:35 a.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

With respect to Canada’s National Parks: (a) what is each park’s specific set of policies on the use of snowmobiles and other motorised off-road vehicles within the park’s boundaries; (b) for what reason is each policy in place; and (c) what studies have been conducted on any economic, environmental, cultural, or other effects of these vehicles within the parks, when used both within and outside the bounds of the policies?

Question No. 1299Questions on the Order PaperRoutine Proceedings

10:35 a.m.

Thornhill Ontario

Conservative

Peter Kent ConservativeMinister of the Environment

Mr. Speaker, with regard to (a) and (b), use of snowmobiles and other motorized off-road vehicles is restricted in Canada's national parks, except in specific circumstances where use associated with law enforcement, public safety or other administrative activities may be permitted, where use is associated with traditional aboriginal harvesting activities, where there are specific provisions permitting use within a park establishment agreement, and where limited area-specific recreational use of snowmobiles may be permitted.

Use of snowmobiles and other motorized off-road vehicles is subject to the provisions of the National Parks Highway Traffic Regulations and must be conducted in accordance with legislative requirements outlined in the Canada National Parks Act and the Species at Risk Act. Additionally, use must adhere to direction within the corresponding national park’s management plan, including zoning.

With regard to (c), all use of snowmobiles and other motorized off-road vehicles within national parks is conducted in accordance with national park legislation, regulations and operational policies where, if permitted, such use is deemed to not adversely affect wildlife, vegetation or terrain. Prior to permission being granted for such use, background studies are undertaken to assess wildlife, ecosystem and cultural resources considerations to ensure that there are no adverse environmental or cultural effects associated with the proposed activity.

Questions Passed as Orders for ReturnsRoutine Proceedings

10:35 a.m.

Regina—Lumsden—Lake Centre Saskatchewan

Conservative

Tom Lukiwski ConservativeParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, if Questions Nos. 1278, 1295 and 1298 could be made orders for returns, these returns would be tabled immediately.

Questions Passed as Orders for ReturnsRoutine Proceedings

10:35 a.m.

NDP

The Deputy Speaker NDP Joe Comartin

Is that agreed?

Questions Passed as Orders for ReturnsRoutine Proceedings

10:35 a.m.

Some hon. members

Agreed

Question No. 1278Questions Passed as Orders for ReturnsRoutine Proceedings

10:35 a.m.

Liberal

Ralph Goodale Liberal Wascana, SK

With regard to infrastructure in Labrador: (a) has the federal government at any time since January 1, 2009, received from the government of Newfoundland and Labrador any proposals, requests, or other documentation in support of funding for the following projects or proposals, namely (i) Nain Airport, (ii) Port Hope Simpson Airport, (iii) other airports or airstrips in Labrador, specifying which airports or airstrips, (iv) a new ferry or ferries for the Strait of Belle Isle ferry service, (v) a feasibility study concerning the construction of a highway from central to northern Labrador; (b) when did the federal government receive any proposals, requests or documentation referred to in (a); (c) which department or departments have received any proposals, requests or documentation referred to in (a); (d) what federal funding share is the provincial government seeking on the part of the federal government in respect of the projects or proposals enumerated in (a); and (e) what has been the response of the relevant federal government department to each of the projects or proposals enumerated in (a)?

(Return tabled)

Question No. 1295Questions Passed as Orders for ReturnsRoutine Proceedings

10:35 a.m.

NDP

Ryan Cleary NDP St. John's South—Mount Pearl, NL

With regard to Transport Canada and Marine Atlantic Incorporated: (a) by how much has the price of a round-trip ferry crossing, both personal and commercial, increased since 1986 for both the Argentina to North Sydney and the Port-aux-Basques to North Sydney runs; (b) what were the increases on a yearly basis from 1986 to 2013 for personal and commercial crossings for both the Argentina to North Sydney and the Port-aux-Basques to North Sydney runs; (c) what other fees have been added to both commercial and personal ferry crossing fares between 1986 and 2013; and (d) how many days were the new vessels the MV Blue Puttees and MV Highlander docked due to weather during the 2011-2012 season?

(Return tabled)

Question No. 1298Questions Passed as Orders for ReturnsRoutine Proceedings

10:35 a.m.

NDP

Brian Masse NDP Windsor West, ON

With regard to the automotive and manufacturing industry in Canada, what has the government done to attract new automotive and manufacturing investments since 2006?

(Return tabled)

Questions Passed as Orders for ReturnsRoutine Proceedings

10:35 a.m.

Conservative

Tom Lukiwski Conservative Regina—Lumsden—Lake Centre, SK

Mr. Speaker, I ask that the remaining questions be allowed to stand.

Questions Passed as Orders for ReturnsRoutine Proceedings

10:35 a.m.

NDP

The Deputy Speaker NDP Joe Comartin

Is that agreed?

Questions Passed as Orders for ReturnsRoutine Proceedings

10:35 a.m.

Some hon. members

Agreed.

Technical Tax Amendments Act, 2012Government Orders

10:35 a.m.

Liberal

Joyce Murray Liberal Vancouver Quadra, BC

Mr. Speaker, I am pleased to be speaking at third reading on Bill C-48. It is largely a housekeeping bill that implements technical matters that have been introduced previously. Most of the measures that are contained in this bill were recommended by the Auditor General.

The Liberal Party supports Bill C-48 and we would like to see it passed quickly. The overarching theme of the bill is the need for clarity and certainty in the administration of Canadian law. That is certainly something that the Liberals support and we see it as an important function of the government in its service to Canadians.

I would like to spend a bit of time speaking about how this bill and taxes, since the bill is about tax changes, are serving Canadians' needs. I would like to make some comments from my perspective, not only as the member of Parliament for Vancouver Quadra, but also as a former businesswoman from a business that became international in its scope.

As a business person for 25 years, my understanding of one of the key imperatives of service is to continually improve the quality of service to those we wish to serve. In business shorthand, we could say that people are looking for faster, cheaper and better service. Who would not want that? Who would not want the goods and services that are provided to them to be provided more quickly, in a less costly manner and at a higher standard of quality?

Faster, cheaper and better are what people expect. Are we getting that from the Conservative government with respect to taxes and tax changes? Certainly, this bill is not an example of faster service. In fact, this is the third time that some elements of this technical tax bill have been introduced since 2001. It has taken far too long to bring this bill to the House. Some of these tax measures have languished in draft form for nearly a decade. For example, the provisions in part 3 of this bill, which deal primarily with reorganizations of and distributions from foreign affiliates, were first released on February 27, 2004 and we are now in May 2013.

What happens when tax measures take such a long time? Many of these measures were introduced by the Conservative government a number of years ago. These measures were introduced with a great deal of fanfare and then never actually brought into force because of delays. It does bring the question: Why wait so many years and then lump everything together in this 955-page bill, rather than give the kind of certainty that citizens of this country deserve and expect?

In fact, in meeting with the small business community as the critic for small business, I have heard feedback about the kinds of frustrations and costs that are incurred through not having had this bill earlier. There is a great deal of confusion when the government announces a certain tax change but does not actually take the steps to put forward the bill to make those changes law. The kinds of costs that small businesses will incur in having accounting and professional and legal consultations to help them understand the implications of these measures that have not actually been made into law are preventable. The bill could prevent confusion and expense for the business community. It has actually been a form of red tape on our small businesses that it has taken so long for the bill to be put forward.

Now that the bill has been put forward, I want to comment on the government's ability to apply its laws regarding taxes and to serve the needs of Canadians and small businesses with respect to the vast complexity of the tax regime in our country.

The Conservative government tends to put forward literally dozens of boutique tax measures that are not supported as part of a clear, simple and effective tax system but more as tax measures that are clearly designed to attract votes from one segment of the population or another. As a result, we have a much more complex tax system than we had before.

Does the Canada Revenue Agency have the resources to assist people in finding their way back to the quality improvement mantra of having faster, cheaper and better service? Is the government providing that to Canadians who are struggling with tax complexities? My answer would be no.

The overarching theme of the debate on Bill C-48 is the need for clarity and certainty in the administration of Canadian tax laws. However, the government's ability to respond to this major need is threatened by the Conservatives' cuts to the Canada Revenue Agency.

The Conservatives targeted the CRA in budget 2012 by reducing the agency's funding by $253 million per year. In addition, budget 2013 provides for further cuts to the agency, amounting to $61 million per year. The cumulative cuts to the CRA therefore total $314 million annually.

Even before the cuts were implemented, the CRA had trouble issuing advance tax rulings in a timely manner. The government's goal is to inform taxpayers of advance tax rulings within 60 days. This may be an acceptable timeframe, but the agency now needs 106 days, on average, to provide such rulings to taxpayers.

We are seeing that the cuts to the Canada Revenue Agency are making its service far slower and certainly not faster, as we would expect in the business community. The business community expects an organization to continue to improve its service, so its service could be faster, cheaper and better. If the government had been providing service in private enterprise, it would have failed and gone out of business long ago because of these unfortunate reversals in the speed and effectiveness of service. We have now gone from 60 days to 106 days for serving customers' information needs with respect to changes in tax laws.

I had meetings with former Yukon member of Parliament Larry Bagnell, who has been advocating for many years for services to citizens in Yukon. The one and only CRA office for Yukon used to be in Whitehorse, but that has been closed, so people living in Yukon no longer have a single agent to talk to in person when filing or asking questions about their taxes. How frustrating for people. That certainly is not better service; it is in fact far worse service.

People can go online to try to connect with this huge agency and get service, but many people in Yukon do not have access to the equipment or the high broadband Internet to do that. Many would have to drive for many hours to get to a place where they could engage the CRA to help serve their information needs.

I appreciate the work that our former colleague and MP, Larry Bagnell, has done on behalf of constituents in the Yukon. Even now that he is no longer a member of Parliament, he has become a voice for their needs.

I am not sure where the current member for Yukon stands with respect to the closure of the CRA office in Whitehorse. I will not comment further on that. However, this does have huge implications for people, especially for low-income, less educated people living in remote communities and for seniors, all of whom used to use this business office on a regular basis.

We have a pattern here of service not being faster but slower, and it certainly is not better. Is it cheaper?

Taxes are important as part of a sustainable society. Canadians by and large accept that taxes are positive because they help to purchase public goods that we need for our society, whether those goods are environmental safeguards, programs that create equality of opportunity for Canadians, or tax regimes that reduce income inequality. “Taxes” is not a four-letter word to most Canadians.

However, what Canadians expect and deserve is honesty from their government about their tax regime. They expect competence, transparency and honesty, but since 2010 there have been new, hidden tax increases that exceed the new reductions each and every year.

That is not what the current government has been promoting in terms of its image to Canadians. The Conservatives have not been honest and forthcoming and transparent about the fact that they have been increasing taxes on Canadians each and every year since 2010, and these are not minor tax increases. In fact, if I go back to an analysis of these tax increases, we would see that in budget 2010 there was a set of tax increases. There was a set of tax decreases, of course, but the net impact would be to increase taxes by $729 million over five years from the measures announced in budget 2010. That is almost $1 billion in tax increases.

Did the Prime Minister go forward and say this is how they are going to pay for goods and services, by increasing our taxes? I did not hear that from the Prime Minister, nor did I hear that in the budget speech from the Minister of Finance.

As well, there are impacts on small businesses in each and every one of these years in terms of increased taxes, meaning less money in the pockets of the men and women in small business who are the engines of job creation in our economy.

Let us look at budget 2011. In budget 2011, again there are hits on small business. In fact, the individual pension plan program is seeing, over five years, $75 million in reduced funds in the pockets of people who are utilizing that tax-planning tool. However, the key here is that the bottom line in budget 2011 is $2.168 billion in net tax increases over five years. It is over $2 billion.

What about budget 2012? Here we saw a huge undermining of the well-being of the small-business community in terms of extra taxes on employees' profit-sharing plans and over $1 billion less in support for the research and investment tax credit, the SR and ED tax credit regime in this country. That is more than $1 billion taken out of the support that the government was providing for good public policy reasons.

Why should government support scientific research and development? It is because scientific research and development provides, by and large, a public good. People in small business cannot afford to invest in research that soon becomes available to all of their competitors without having some support through this tax credit. That is how it is for the public good. The government supports something that becomes a benefit for all of society, and that is much of what happens with small business research and development.

However, that tax credit was reduced by over $1 billion for a net increase in taxes, as announced in the budget, of $3.547 billion. It is over $3 billion more out of the pockets of Canadians and small businesses, thanks to budget 2012.

In budget 2013, once again we have tax increases that exceed the tax reductions, this time to the tune of $3.3 billion. This is a big-tax government.

The challenge Canadians have in even understanding what the government is doing is that there is no transparency and no honesty here. There are hidden tax increases that now have a cumulative impact of almost $10 billion over the period covered by these announcements. It is cumulatively $10 billion dollars out of the pockets of Canadians and small businesses.

Who knew that? This is something the government has kept hidden. Is that cheaper service? No, government is actually costing taxpayers almost $10 billion more cumulatively, without actually revealing that it is doing that.

Why has the Conservative government felt a need to increase taxes with these incremental net increases of $10 billion, as I have laid out and as expressed in budgets 2010 to 2013? Could it be that since the Conservatives took office, annual federal spending under the Conservative government has risen to $280 billion, which is an increase of more than 30%? That is certainly not providing faster, cheaper and better service. It is very much more expensive service.

This is a government that inherited a $13 billion budget surplus in early 2006, but within a matter of a few years we were running deficits, and the government continues to run an annual deficit this year of $26 billion. There may be a change when the budget is balanced, but it may take a long time.

These tax increases hurt middle-class Canadians and small businesses. We have spoken at large and at length about the impact of the increase in tariffs on Canadians, which is driving them across the border to get goods cheaper. We have talked about how tax increases are hurting our tourism industry, an industry that used to be rated seventh among countries for international visits but that has dropped to 18th in international visits. This is hurting our tourism industry. We now have a $14 billion tourism deficit.

There are many comments I could make about how these hidden tax increases have hurt our economy and our small businesses, but I will give one last indication of the impact this government has had on small business.

In the last five years of the previous Liberal government, small and medium-sized businesses created over 460,000 jobs, but in the first five years under the Conservatives, the overall net number of jobs created by small and medium enterprises was negative. The number actually fell by 10,000 jobs.

Therefore, we do not have faster, we do not have cheaper, and we certainly do not have better service from the Conservative government. In fact, the spending choices the government is making with these tax increases are not supported by Canadians. Economic action plan advertising alone has cost $113 million, and I know that Canadians would rather that money were used for student summer jobs. Every second these ads for the economic action plan air during Hockey Night in Canada is another second that another young Canadian does not get the support that he or she previously enjoyed to have a summer job. Every second we are losing a job for youth.

I am happy to answer questions on how I see the government's spending choices as being part of this failure to provide faster, cheaper and better service to those the government was elected to serve, the Canadian people.

Technical Tax Amendments Act, 2012Government Orders

10:55 a.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, I rise on a point of order. I take my role in the House very seriously. Earlier today, in discussion of the concurrence motion, I attempted to make humorous comments about the very serious situation facing the Ford administration in Toronto. That is simply not acceptable.

I would like to retract those comments and apologize for making any unsubstantiated comments or potentially leaving a false impression regarding the very serious issues that are facing the City of Toronto and the Ford administration.

Technical Tax Amendments Act, 2012Government Orders

11 a.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, my question relates to the member's comments on how the government's tax regime is affecting tourism.

We have dropped from seventh or eighth place in the world as most visited by international visitors to 18th. We understand the cutbacks to the Canadian Tourism Commission have forced it to cut advertising for tourism in the United States, which is a major drawing market for us in Atlantic Canada. It will impact our tourism industry, our seasonal workers and our economy.

Could the member elaborate further on how some of those hidden taxes by the government have impacted tourism? I know airport fees is one. What others might the member elaborate on?

Technical Tax Amendments Act, 2012Government Orders

11 a.m.

Liberal

Joyce Murray Liberal Vancouver Quadra, BC

Mr. Speaker, this is certainly an example of worse service by the government.

Tourism employees and owners across the country, including in my riding of Vancouver Quadra, are suffering from mismanagement by the government. As the member mentioned, there are high taxes on airports that are driving consumers to shop for flights in the United States, including from Vancouver Quadra. In Vancouver, Bellingham and Seattle are seen as frequent choices of where to fly from, rather than Vancouver airport.

This has cost the Canadian economy 8,900 local jobs, $500 million in wages, over $1 billion in GDP and more than $2 billion in economic output. That is just the high taxes on airports.

Surprisingly, we no longer provide a GST rebate to tourist visitors to Canada. Therefore, that makes us a higher-cost destination in another way. That is also deterring international visitors from coming to Canada.

Why is the Minister of State for Small Business and Tourism not defending this industry, which has been so mismanaged by the Conservative government?

Technical Tax Amendments Act, 2012Government Orders

11 a.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, we recognize that one of the driving forces in job creation is small businesses. Small businesses have the greatest potential in the generation of jobs and new employment.

My question for my colleague is in regard to performance. We need to recognize that the Conservatives have failed in supporting small business, especially if we contrast that to the days of Paul Martin or Jean Chrétien when small business was a priority and its growth was encouraged, which led to the creation of tens of thousands of jobs.

Things have changed under the Conservative-Reform government. Could my colleague provide some comment on just how things have changed?