Mr. Speaker, let us be clear. Budgets are about choices. They are also about influence. The Conservatives have made their choices and they have made them on the basis of their ideology and on those lobbyists who are closest to the PMO. Let us be clear: those lobbyists are the largest and wealthiest corporations and CEOs of this country.
I will admit their ideology rests on a theory, a theory much flaunted by them, that of the Chicago School of Business, that of Friedman and Hayek, what has been called anarcho-capitalism. These academics created a vision for a utopian capitalist society where the role of the state was limited to ensuring the protection of its citizens. The reality is that most of the members in leadership positions on that side do not really believe in the Canadian state. They want to minimize its democratic influence on the economy, and that means austerity wherever it can be had. Do not get me wrong: the Prime Minister and his lieutenants are incrementalists to their own admission, so they are in it for the long haul, knowing that they are confronted with the fact that the vast majority of Canadians in their heart of hearts fundamentally disagree with their dog-eat-dog philosophy. Why do we think they want to rewrite history and get involved in imposing curricula on schools? It is because they want to shape the minds of future generations to their vision.
But as incrementalists, we cannot expect them to be obvious about it. Their excuse for imposing austerity on Canadians is always based on their ideological buzzwords: jobs, growth and prosperity. The common sense revolution all over again. Well the reality is that their approach makes no sense at all for creating jobs, growth and prosperity. Let us consider the facts.
Despite having chosen the path of austerity, Europe, the U.S. and the Canadian economy are not getting any better and the world economic crisis, despite a few good weeks here and there, is nowhere close to the long-term sustainable recovery and strength we have seen in the past. The Conservatives have had to contort themselves to make any sense out of this and how their pie in the sky ideology is not working. That is because their heads are trapped in a utopian, capitalist, ideological cloud. The reality is that ever since a modern free market has existed, there has always been state intervention, and in most cases it has been positive.
The Conservative approach is also based on another myth, a sacred cow so to speak, that somehow corporations invest the savings from tax cuts back into their operations, thus creating jobs, expanding the economy, and generating even bigger revenues for governments. From this perspective, governments should keep slashing corporate taxes, presumably right down to zero. If the tax cuts of recent years continue, that state of nirvana will be reached in 20 years. This is their belief and it is a belief empty of facts. In fact, the worst financial years have always been under conservative governments. Reagan and Thatcher in the 1980s, Bush and now the present Prime Minister are examples of how extreme conservative economic policies lead to greater crises in the economy, not less.
I am exaggerating right, because I am a social democrat? Well, in 2000, the combined federal-provincial tax rate was just over 42%. A decade later this figure has fallen to 28%. The Conservative government would cut it to 25% by fiscal 2013. Members can do the math.
The problem that members might be wondering about is that Conservatives have forgotten about something very simple: globalization. What the other benches do not understand is that there is no guarantee in a global market that corporations will reinvest in jobs in countries to which they have no loyalty. Members should not take it from me, here is what The Globe and Mail had to say about it:
Canadian companies have added tens of billions of dollars to their stockpiles of cash at a time when tax cuts are supposed to be encouraging them to plow more money into their businesses....But an analysis of Statistics Canada figures by The Globe and Mail reveals that the rate of investment in machinery and equipment has declined in lockstep with falling corporate tax rates over the past decade. At the same time, the analysis shows, businesses have added $83 billion to their cash reserves since the onset of the recession in 2008.
However, what big corporations seem to be doing quite well is investing in themselves and in their salaries. The rate paid for a CEO is up at least 100% since the recession. Saved tax dollars are going into bigger salaries, not helping the economy or suffering Canadians.
Also large corporations are now more likely to hide this money than use it. The Globe and Mail reported that, “Investment in equipment and machinery has fallen to 5.5 per cent in 2010 as a share of Canada's total economic output from 6.8 per cent in 2005 and 7.7 per cent in 2000.”
Buying machinery is a good thing, and expanding one's business means stimulating the economy and creating jobs. Now all of this is not to talk about the human cost, which is to drive up the rate of exploitation of the workforce. Their main tactic is to increase the proportion of profit and salary while simultaneously taking advantage of hard economic times to reduce labour costs, and we wonder why they want Canadians to be paid as little as foreign workers. Temporary foreign workers should not be making a substandard wage in the first place. Not surprisingly, the average level of unemployment among Canadian workers rose dramatically during these Conservative government golden years.
In other words, tax breaks and handouts have failed to live up to the predictions of Conservative economists and politicians. The gap between the rich and the working class is at record levels. Over 1.5 million Canadians remain unemployed, and that is just according to understated official figures.
Funding for social programs, health and education is clearly not a priority, and corporate CEOs and shareholders are laughing all the way to the bank.
Another study released on April 6 by the Canadian Centre of Policy Alternatives shows that, “After a decade of corporate tax cuts, the benefits to Canada’s largest corporations are clear but the job creation payoff for Canadians hasn’t materialized.” The study tracked 198 companies on the S&P/TSX composite index from 2000 to 2009. Those 198 companies are making 50% more profit and paying 20% less tax than they did a decade ago, but in terms of job creation, “they did not keep up with the average growth of employment in the economy as a whole. From 2005 to 2010, the number of employed Canadians rose 6% while the number of jobs created by the companies in this study grew by only 5%.”
We on the benches on this side of the House have a different approach, a more balanced one, which takes into consideration the needs of small and medium-sized businesses that, contrary to the lobbyists in the PMO's office, actually create the majority of jobs in this country.
No, we have a different approach, which balances the needs of small and medium-sized businesses with those of average Canadian families of the middle class and the working class.
Bill C-60 does not address Canadians' real concerns. Instead of adopting meaningful measures to create jobs, the Conservatives are imposing austerity measures that will stifle economic growth. Furthermore, the Conservatives' omnibus budget flouts Canadian democracy. It is an underhanded attack on this country's workers.
Bill C-60 makes changes that allow the government to direct a crown corporation to have its negotiating mandate approved by the Treasury Board in order to enter into a collective agreement with a union. These amendments affect 49 crown corporations and hundreds of employees. Under the provisions of Bill C-60, if the government directs a crown corporation to have its negotiating mandate approved by the Treasury Board, then the Treasury Board can impose whatever it wants in terms of the crown corporation's employees' working conditions. Furthermore, no crown corporation receiving such a government order will be able to reach a collective agreement without Treasury Board approval.
This government and its ministers, in an effort to rid themselves of any responsibility, have repeated over and over that crown corporations operate at arm's length from the government. However, the changes in Bill C-60 violate the fundamental principle of the operational independence of crown corporations.
The changes proposed in Bill C-60 constitute an attack on the right to free collective bargaining in Canada.
We must oppose this budget, and as official opposition Treasury Board critic, that is what I am doing. That is my duty.