Mr. Speaker, with its recent budget, the Conservative Party is continuing its frontal attack on Quebec. Apparently, the Conservatives did not appreciate Quebeckers' refusal to vote for them, and so they decided to abandon one part of Canada's population and send the money somewhere where they would have a chance of winning some ridings. Quebeckers have heard a lot of bad news and, unfortunately, the measures in this bill are only the tip of the iceberg.
Let us begin with the Economic Development Agency of Canada for the Regions of Quebec. Last year in the House, the Conservatives assured us that the expected cuts would affect only the department's operating budget, and not transfer payments. That is not the case. Not only did the Conservatives cut the department's operating budget, but worse yet, they savagely reduced transfer payments to their lowest level since the Economic Development Agency of Canada for the Regions of Quebec Act came into force on October 5, 2005.
I looked it up in the public accounts which, unlike the Conservatives, are incapable of playing with the words and numbers. I am going to list the transfer payments, which are distinct from the agency's operating costs. In the 2005 public accounts, $286 million was paid out in transfers. In 2006, it was $293 million. In 2006-07, $316 million went in transfer payments. In 2007-08, it was $286 million. In 2008-09, it was $243 million. Here we see the numbers going down. In 2009-2010, transfers went up to $342 million. In 2010-11, it was $424 million. Then, in 2011-12, after the Conservative majority government was elected with only 10% support in Quebec, it was only $253 million. Finally, in 2012-13, the prediction is $252 million, an amount that will drop to $212 million in 2013-14.
I would remind the House that a 2013 dollar is worth less than a 2005 dollar, because of inflation. The Conservatives promised last year that they would decrease only the administrative expenses, and not the transfers, yet at $212 million, we have reached a very low point. Can the Conservatives tell us clearly what they intend to do with the Economic Development Agency of Canada for the Regions of Quebec? Are they abolishing it by stealth? Many businesses in Quebec need this government assistance. What is the Conservatives' plan? Do they want to abandon Quebec? Why have other regional agencies seen their budgets increase? Why is funding being increased in one place and decreased in another?
I do not suppose that the Prime Minister's office has written up answers for these questions, and so I do not even expect a response from Conservative members.
Economic action plan 2013 will reduce the labour-sponsored venture capital corporations tax credit, also known as the federal tax credit for labour funds, from 15% to 10% in 2015. The tax credit will decrease from 10% to 5% in 2016, and will be completely phased out in 2017. We all know that the Conservatives’ narrow ideology dictates their policies. However, in this case, the Conservatives are directly attacking unions and they are attacking Quebec, whether they mean to or not. This tax credit is most popular in Quebec; 85% of those using it are Quebeckers. Even though labour funds do not provide the highest returns in the market, they are so popular in Quebec that many people who would not otherwise invest are investing in these funds. Many small businesses do not provide any retirement plan, and for their employees, labour funds are the only investment they make.
Quebeckers contribute less than other Canadians to RRSPs. We finally have a program that works, and all of a sudden it ends. How typically Conservative.
Generally speaking, this budget increases taxes more than it reduces them. It is certainly a good idea for the government to try to balance the budget, especially since the Conservatives have done nothing but increase the debt since they came to power.
However, the government must not try to balance the budget by gouging Canadians. For instance, taxes on small business owners will increase by $2.3 billion over five years.
We are just emerging from the economic crisis, and our economy is still quite fragile. This is what we are hearing on a daily basis from the Conservatives across the way. With measures of this kind, we are likely to drive many companies out of business, increase the number of unemployed Canadians and weaken Canada’s economy.
At the same time, the penny-pinching Conservatives are sending public servants to harass the unemployed. They are raising taxes on credit unions by $75 million annually, an increase that will cause serious problems for economies in rural regions. They are attacking another one of Quebec’s traditions.
To put it frankly, none of this makes any sense after such a major economic crisis, but we understand why this government improvises more often than not.
The crisis was particularly hard on young people, whose unemployment rate is now five points higher than it was before 2008. Young people, who have just finished their term or will soon be completing their school year, will not have any work this summer. Those young people will not save any money for the next academic year, which will push many into debt.
That will also have a negative impact on the economy as a whole since these young people will consume less this summer, which means less revenue for many businesses. Nevertheless, this budget contains no measures to promote youth employment.
We support some measures, but the budget on the whole does not meet Canadians' needs. What is more, the government has once again introduced an omnibus bill in order to pass measures that have nothing to do with the budget.
The Conservatives' ideological obsession is apparent throughout Bill C-60. Despite its right-wing ideology, this government has increased waste since 2006 and passed the cost on to Canadians.
We can also see from this budget that the Conservatives have completely abandoned Quebec. The elimination of the labour-sponsored fund tax credit, which is very popular in Quebec, and the significant cuts in funding for Canada Economic Development for Quebec Regions show that the Conservatives have given up on Quebec for the next election.
A good government should not favour one region over another. Instead it should unify the country by acting in the interests of all Canadians, which is what the Liberal Party of Canada will do when it forms the government in 2015.
We will repair the damage done by the Conservatives and will act for all Canadians.