Debates of Dec. 2nd, 2014

Economic Action Plan 2014 Act, No. 2

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, I have a question for my colleague and whoever else can answer it. It concerns some quite obscure changes in the tax legislation in this bill that purport to allow the government to deem a capital gain in a trust and then tax it in the hands of the deceased when a person dies. I know that not very many deceased people vote Conservative, so they can say they will not be taxing some Conservatives. However, the fact is that I believe it is unconstitutional to tax people after they are dead.

Would the member like to answer this question? Is it constitutional and will it survive?

[Jim Hillyer, Conservative, Lethbridge, AB]

Mr. Speaker, I do not think the government is taxing people who are dead. It is not only unconstitutional; it is impossible. It is nothing new for estates to be taxed, so I do not think the budget makes a mistake in distinguishing between estates and people who have passed away.

[Mylène Freeman, NDP, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, today we are debating Bill C-43, the second bill to implement the 2014 budget. This bill is 460 pages long and forces through hundreds of amendments without sufficient study. We are now at report stage, and the committees involved in studying this bill met less than 10 times. That is not enough for 460 pages and hundreds of amendments to dozens of laws. The bill contains measures that were never mentioned in the budget speech and that often have nothing to do with a budget. They are just bad surprises included in a big bill so that they will be passed with little more than a glance from the opposition.

The government repeatedly makes the same mistakes with its budget bills. They are poorly drafted and rushed through. Canadians do not like this method, but the Conservative government does not listen to them. This is the sixth consecutive omnibus budget implementation bill.

I would like to take this opportunity to remind members that 20 years ago, the Prime Minister himself said the following in the House:

...in the interest of democracy I ask: How can members represent their constituents on these various areas when they are forced to vote in a block on such legislation and on such concerns?

This is a point that we often raise when we see omnibus bills introduced in the House. He said it so well. How can we say that we are in favour of 460 pages of amendments? Perhaps there is one page that contains amendments that would be catastrophic for my riding. How then can I vote in favour of the bill as a whole?

Since winning a majority, the Conservatives have passed 2,190 pages of omnibus bills and have agreed to only one opposition amendment, and that was a tax-related technical amendment proposed by the NDP. However, as the Prime Minister said 20 years ago, when so many measures are included in just one bill, it is impossible to determine which measures we support and which ones we do not. For that reason, we proposed a number of amendments at report stage.

However, I would like to point out that the NDP and I are extremely pleased to see that one of our measures was incorporated into this bill. It has to do with pay-to-pay fees. Bill C-43 will finally put an end to the practice of charging Canadians to receive or continue to receive a paper copy of their bills from telecommunications and broadcasting companies. That is a very good thing. However, Bill C-43 does not go far enough. It contains no trace of the government's promise to put an end to this practice for banks or to eliminate exorbitant banking fees.

I would like to talk about one of the measures in this bill that is really bad for the Canadian economy. It is important to understand what has been happening over the past few years. I am talking about employment insurance. This bill would implement a hiring credit for small businesses, which has already been panned by economists and the Parliamentary Budget Officer as wasteful. To pay for this credit, the government will help itself to $550 million from the employment insurance fund. The government did not carefully examine this measure. Despite the enormous cost of $550 million, the Parliamentary Budget Officer estimates that this measure will create 800 jobs at most.

According to economist Mike Moffatt, the measure will actually encourage employers to fire workers, not hire more. This measure, which will cost $550 million, will create 800 jobs at most and could cause other job losses.

I would like to talk a little bit about the context in which we are discussing employment insurance. In my riding of Argenteuil—Papineau—Mirabel, EI cuts have already affected people a great deal.

Service Canada officers are doing their best with the minimal resources they have, but they have admitted that they are increasingly swamped. They are being asked to provide crucial support to Quebeckers and Canadians who need to access the program they pay into, which exists to help them when they need it. That is not trivial; it is a fundamental part of a democratic country. When someone gets sick or loses their job, it allows them to keep paying the bills and putting food on the table.

Unfortunately, ever since the program was gutted, that is no longer the case. People can no longer count on the program while they are looking for another job or while they are recuperating from a serious illness. In my riding, these cuts have created a real problem regarding accessibility. When we talk just about the numbers and the cost of the program, we forget the human side of the story.

I want to underline some figures of Statistics Canada. They show that there has been a significant decline in access to EI benefits for unemployed workers. In January 2006, 45.7% of unemployed workers accessed EI benefits. By September 2014 that figure had fallen to 38.1%.

It is also really important to underline that the Conservatives and Liberals misappropriated $57 billion from the EI fund, money that belongs to workers and employers. They pay into the fund. Now they are doing it again with a $550 million EI-funded so-called job credit that will only fund 800 jobs. Just in my riding in the past several years, we have lost that many jobs, and that is a small portion of how much of a hit we have been taking and how regions are trying to create jobs.

All this is happening in a context where the manufacturing sector has lost 400,000 jobs since the Conservatives took office. Furthermore, employment growth is weaker now than it was before the recession. We have 300,000 more unemployed people now than during the recession.

In my riding, one woman was let go after having worked in her job for many years, because her position was eliminated. She found another job, but her skills and work experience did not fit the new job at all. What is more, it did not provide her with any satisfaction or opportunity for growth.

She therefore decided not to keep it and to focus on finding another job. She was then denied EI and she could not get the support she needed. No one told her that she had to accept any job and that if she refused a job that was considered suitable, then she would lose her benefits.

I also want to point out that Argenteuil—Papineau—Mirabel is a very large riding that includes quite a few municipalities and rural areas. Residents who do not travel to attend training are automatically refused employment insurance.

I have no choice but to oppose this bill because changes to employment insurance in the past have been so catastrophic. Creating 800 jobs at a cost of $550 million is completely unacceptable.

[Mike Sullivan, NDP, York South—Weston, ON]

Mr. Speaker, I appreciate my colleague's comments about the bill, which is being rushed through. It is 460 pages and is yet again an example of the Conservatives trying to do with an omnibus bill the kinds of things that require considerable scrutiny in this House.

One of the things that worries me considerably is the notion that for refugee claimants who have failed one test but have not passed another, the bill would allow provinces to stop giving them social assistance. These refugees would perhaps have to go to dumps to find food, as they are in the north already. As Canadians, we are not comfortable with this kind of approach.

I wonder if the hon. member could comment on this part of the bill.

[Mylène Freeman, NDP, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I thank my colleague for drawing attention to that aspect of the bill. Obviously, I was able to touch on just one of the measures that will have catastrophic repercussions. The measure he mentioned is another totally disgusting one. Last time, they decided to stop giving refugees health insurance. That was clearly ideological. These are people hoping to escape a terrible fate in their homeland by coming to Canada in search of a better life. We cannot just tell them that because their case has not yet been ruled legitimate, they do not get to use the health care system. Now the provinces are being prevented from doing that too. The courts have already said that this is unconstitutional, but unfortunately, the government is going ahead with measures that are not in line with Canadians' values.

[Jason Kenney, Conservative, Minister of Employment and Social Development and Minister for Multiculturalism]

Mr. Speaker, I must correct what the hon. member just said because it was completely wrong.

To begin, with respect to health insurance for failed refugee claimants, meaning illegal migrants who are in the process of being deported from Canada, it is true that these people do not have legal status to remain in Canada and therefore do not have the right to obtain health insurance. That being said, they still clearly have access to the health care system, as all visitors do. Foreign students, new residents and new immigrants are not eligible for provincial health insurance until they have lived in a province for three months.

The same principle applies in the case of this bill, which proposes giving provinces the power to establish a mandatory residency period before people are able to apply for welfare. Nearly every country in Europe and the developed world has decided that an individual must be a resident for at least a few weeks before being able to access benefits such as welfare. We need to be careful when we discuss these issues. We need to consider the facts and be fair. We will not change a thing in this bill about welfare for immigrants. This is just about recognizing the provinces' ability to establish their own rules in this area.

[Mylène Freeman, NDP, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, I will get right to the heart of what the minister just said. He said that the government is handing responsibility over to the provinces, but it is cutting health transfers to the provinces. It is really downloading Canada's health care costs onto the provinces. That is in no way acceptable. We need to be able to give the provinces the resources they need to offer programs that work across this country.

[Cathy McLeod, Conservative, Parliamentary Secretary to the Minister of Labour and for Western Economic Diversification]

Mr. Speaker, I am very pleased to rise to debate Bill C-43. I will quickly go over the process that has gotten us to this point.

The budget is typically delivered in the spring, and then there are two budget implementation bills, one in the spring and one in the fall. I will read a quote that is actually attributed to a gentleman named Jacob Lew, who said, “The budget is not just a collection of numbers, but an expression of our values and aspirations”. When we look at this budget, we are really looking at the values and aspirations we as a government have put forward.

It was actually February 11 when our colleague, Jim Flaherty, stood in the House as the finance minister to deliver the budget. He typically liked to joke about his diminutive stature, but we all appreciated and admired the twinkle in his eye. He was anything but small in both his heart and his influence on the direction of Canada.

I am going to frame some of the words he said in introducing the budget in 2014. It was only two short months later that we sat in the House stunned as we heard of his very sudden passing. All of us came together and grieved that day.

His opening comments back then were as follows:

Mr. Speaker, nearly 150 years ago, Canada was founded with fiscal responsibility as its cornerstone. The men and women who carved this great country out of the wilderness simply called it “good government.”

That’s what Minister of Finance John Rose was talking about when he stood before this assembly to deliver Canada’s first budget speech in 1868. He said, “I say that we ought to be most careful in our outlay, and consider well every shilling we expend.”

Now, that’s just old-fashioned English for old-fashioned common sense. And it is that solid, Canadian common sense that has guided our Government through good times and bad.

He then went on to say:

Mr. Speaker, I am proud to rise today to present Canada’s Economic Action Plan 2014.

This prudent plan builds on our record of strong, sound and consistent fiscal management. It is a low-tax plan to promote jobs and economic growth and support Canadian families. And it is a common sense plan that will see Canada return to a balanced budget in 2015.

Those were the words that framed the legislation we are talking about.

I now want to look at budget implementation act 2. I often hear the NDP go on about the bill being 400 pages. I would first suggest that it is not really the number of pages that matter. It is the content and what the budget is going to achieve that is important. If New Democrats are really struggling through the 450 pages, I will direct them to the legislative summary, which is about four or five pages. New Democrats often talk about hidden things in the bill, but it is very easy for the NDP or any Canadian to go to the legislative summary. It clearly articulates what is in the bill in a few short pages. Then if there is something that tweaks their interest, they can go to the budget itself.

If we look at the structure, Part 1 deals with implementing income tax measures. Now I am going to have a bit of a micro conversation. Then I will go back to the broader picture of what we are trying to achieve.

Part 1 in this bill has a whole host of income tax measures. Sometimes it is the small things that make a big difference in people's lives. For example, the move that is going to extend the tax deferral for breeding animals to bees might not sound like a big measure, but for beekeepers, that is an extremely important measure.

Throughout Part 1, there are a number of income tax measures. Another piece that perhaps people have not picked up on is the accelerated capital cost allowance for our green energy sector. It is a bit of a boost to help the green energy sector get going.

We then move into Part 2, which implements goods and harmonized sales tax measures, which again is clearly an important piece of what we do.

Part 3 amends the Excise Act. Again, I welcome the New Democrats, if they are struggling with the 458 pages, to go to the legislative summary. It is very clear what the budget is trying to accomplish.

Part 4 looks at a number of different acts in order to implement various measures. I have to go back to the words of Lew. The budget is not just about numbers; it is about the aspirations and goals of the government.

What are some of the goals of our government? In good times, with Minister Flaherty, we paid down the debt and set ourselves up and were in a great position. Of course, in 2008, the global recession hit us and hit us hard. However, we were in a good position, and we had a plan. We have seen that plan go from economic action plan 2006 right through to 2014 with the plan that was recently introduced.

What is our plan? All these measures in this budget look at focusing and supporting our movement. When in 2008 we knew we were going to have some extraordinary challenges, we decided we would put stimulus into the economy. I know that the opposition members kept saying that we needed to put more in, and now they say that we incurred that. In actual fact, we found the right balance. We managed to get extraordinary stimulus out the door. It saw us through that very challenging time. Coming out of the recession earlier than many, we have looked at some of the best job growth among the G7. We are at over 1.2 million net new jobs now. It was a global recession. I remember many countries being very concerned. We all remember Portugal, Italy, Greece, and Spain and the significant challenges they were facing. However, we had a plan, we were in a good position going in, and we came out.

We were particularly proud, with the delivery of economic action plan 2014, to say, just as we told Canadians, that we were going to be back to balanced budgets. We said that, unfortunately and with concern, we were going to spend some extra money for stimulus, but we made a commitment to Canadians that we would get back to balanced budgets, and indeed that is what we have done. Getting back to a balanced budget was certainly one of the significant priorities.

The other area I would call a pillar was supporting jobs and growth. We have to have an environment in which we are supporting jobs and growth. This again does exactly that with items such as the small-business job credit. The Canadian Federation of Independent Business, which represents small businesses, has said that this is going to make a real difference to the small businesses of this country. When they have payroll taxes that are a little more forgiving, they put that money back into hiring more people and expanding their business. Some of the real experts are the people who run those small businesses, so I certainly look at what they are doing.

Another area we looked at in terms of supporting jobs and growth was the tax credit on interest paid on government-sponsored student loans and extending that to the Canada apprentice loan. We know that with the jobs mismatch, there are jobs available for apprentices, so again, that was an important measure.

There are a number of items in there that support families and communities.

Finally, there are measures that improve the fairness and integrity of the tax system.

In conclusion, people who knew Jim Flaherty might know that he loved to sail. He was at the helm in some very difficult waters. He has now, of course, left that helm for us to take on, but he charted a course. He put us on a solid course, and I know that it has been ably picked up by our new Minister of Finance.

As this is the last time I will get to speak to the direct influence of Jim Flaherty, I will just say thanks to Jim for all his hard work.

[Annick Papillon, NDP, Québec, QC]

Mr. Speaker, I listened to my colleague opposite, but I look at the facts.

Bill C-43 implements the small business job credit, which many economists have called a waste. Furthermore, the Parliamentary Budget Officer believes that despite the massive cost of the bill, the program will not create more than 800 jobs. Those are the facts.

Moreover, the bill disregards the fact that growth in the private sector has been essentially at a standstill for 18 months and no jobs have been created. There is nothing in this bill to help the 300,000 new unemployed workers created by the last recession get back to work or to help replace the 400,000 jobs that have been lost in the manufacturing sector under this Prime Minister.

My question is simple. This credit has been criticized because of all of the costs associated with it. Will my colleague acknowledge that economists agree that this measure will not do much, in light of the investment required? This bill has been harshly criticized.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, the facts speak for themselves. First, let us look at our government's record. We headed into the global recession. We have come out that and 1.2 million jobs have been created, mostly full-time and mostly in the private sector. Obviously, the government's plan and strategy are working.

On the tax credit for our small businesses, we know small businesses are the cornerstone. The Canadian Federation of Independent Business is one of the experts in this area. It only makes sense that when we put $550 million back into the pockets of our small business owners, they will have the opportunity to put that money into growing their business and creating more success.

Again, we have a plan, and our plan is working.

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, I think if Mr. Flaherty were here, he would be quite pleased with the glowing attributes that were shared about him today, certainly about being quoted.

The hon. member's comments were so glowing about Mr. Flaherty, but there are also his thoughts on the issue of income splitting, which is an important issue for Canadians to be knowledgeable about and understand the implications of that. Mr. Flaherty said, in his last days as finance minister, that he did not think income splitting was a good idea.

I would be interested to know, since my hon. colleague is so interested in and so much a follower of Mr. Flaherty, why does she not support his vision of income splitting being bad for Canada?

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, I am delighted to answer that question. I believe Mr. Flaherty would have been really pleased with our comprehensive plan, which will support every Canadian family.

We have increased the universal child care benefit, from which every family with children will benefit. The increase in the expense deduction will benefit many. There is the modification in income splitting.

I think he would be very proud that we have created what is a comprehensive package. We have fulfilled our election platform commitment and we have created something, unlike the NDP and unlike the Liberals, who want to put money into a program that does not help shift workers and people in remote communities. We have a plan in place that will help every family with children. I am very proud of that, and I believe he would be as well.

[Annick Papillon, NDP, Québec, QC]

Mr. Speaker, it is an honour for me to rise in the House today to speak to budget implementation bill C-43. This bill of more than 460 pages is divided into four parts and will create, amend or eliminate about 400 sections. Most of the laws amended have absolutely nothing to do with the budget.

The Conservatives have rushed through many omnibus bills without enough analysis and without respect for the democratic process.

We deplore the fact that this is happening again with Bill C-43. One would think that it is groundhog day in the House of Commons. It is always the same. This is another Trojan horse, and we truly oppose it because we cannot debate all the measures it contains. This is what always happens.

A fine example of the undemocratic process that goes along with this Conservative government's omnibus bills is the new section 27.2 of the Telecommunications Act. This section states that any person who provides telecommunications services shall not charge a subscriber for providing the subscriber with a paper bill. This measure has the full support of the NDP. We support it because the NDP has been fighting for years to stop this pay-to-pay practice.

Unfortunately, I cannot vote for this measure because it is buried deep in a mountain of changes that I completely disagree with. I think my frustration is clear. This situation comes up again and again, every time the Conservative government introduces an omnibus bill. That is the most pernicious part of all this.

This situation will probably give the minister the opportunity to repeat again and again that our party did not support eliminating fees for paper bills and that the opposition voted against it.

Let us look at the facts, the situation here, and be honest. We want to support that provision, but only if it is removed from the omnibus bill and voted on in another bill. Once again, this government prefers pettiness to genuine democracy.

I still want to take the time to say, in the House, that I will vote for a proposal to eliminate fees for telecommunications bills. At the very least, I will have said it.

We support other amendments set out in Bill C-43. In fact, Bill C-43 also includes measures to improve the integrity of our tax code, which is certainly a step in the right direction, although there is still a lot to be done to combat tax evasion.

The bill also puts in place a DNA data bank to help in missing persons cases. This is another measure the NDP has long been calling for.

Let us now talk about the negative aspects of this bill. Unfortunately, there are far more negative aspects than positive ones. First, Bill C-43 does not honour the Conservatives' promise to put an end to the exorbitant fees charged by banks. If the Conservatives agree that it is not right for the telecommunications companies to charge billing fees, then why do they allow the banks to keep using this completely unjustified practice?

Omnibus Bill C-43 also has provisions that would amend the federal-provincial fiscal arrangements to allow the provinces to impose minimum residency requirements on immigrants before they can access various benefits. Asylum seekers and others without permanent resident status could be denied access to social assistance benefits.

The Conservatives' goal is to encourage the provinces to reduce the costs related to paying social assistance, at the expense of the most vulnerable residents in our society. Those people already face major obstacles, including the sluggish labour market, discrimination, and lack of experience, to name a few.

Restricting access to social assistance will only hinder the integration process of these vulnerable people and increase poverty and its many symptoms. Society will be left paying the bill.

Moreover, these measures are highly discriminatory and a blatant violation of human rights. Over 160 Canadian organizations sent an open letter to the Minister of Finance voicing opposition to the government's decision to restrict refugee claimants' access to social assistance. Bill C-43 also changes the rules for credit unions, and they have had no say in the matter. We do not yet know the exact consequences of these changes, but this is just like the 2013 budget, in which the Conservatives unfairly increased the taxes payable by credit unions.

Bill C-43 also institutes the hiring credit for small businesses, a measure that many economists consider wasteful. The Parliamentary Budget Officer says that the program will create no more than 800 jobs despite its enormous cost.

Nevertheless, it is what this famous budget implementation bill leaves out that is so problematic for the Canadian economy. Private sector growth has been virtually moribund for 18 months. Not a single job has been created. Approximately 300,000 people lost their jobs in the last recession, but there is nothing in this bill to help them find new work or to help replace the 400,000 manufacturing sector jobs lost on this Prime Minister's watch.

Currently, the youth unemployment rate is twice the national average; that has not changed since the depths of the recession. For young people entering the workforce, getting that first job is a crucial step that enables them to become productive and useful members of society.

Furthermore, we are seeing record levels of personal debt, much higher than what we used to see. In 1980, the ratio of household debt to personal disposable income was 66%, and now it is 164%. That is an incredible increase. The Governor of the Bank of Canada, Stephen Poloz, has stated that household debt in this country is a major risk factor for the Canadian economy. Society is living beyond its means. Our families are in too much debt.

When people have been having a hard time making ends meet for a number of years, they are no longer able to pay their bills. They underestimated how much money they would need to make ends meet. It happens to many people. In Quebec, rent went up by over 40% in 10 years. When rent represents 30%, 50% or 70% of a person's income, that is a lot. It prevents them from being able to pay their electricity bill and buy food. Those are basic needs. I am not even talking about entertainment. Many people can no longer afford entertainment, not even cable.

If we do not acknowledge that situation and if we do not listen to families who are having trouble making ends meet, we cannot come up with effective policies that reflect this reality. It is shameful that this government does not understand the extent of this problem at all.

The NDP has real solutions to help Canadians. We want to bring in new regulations to put an end to the abusive practices of banks, money lenders and credit card companies. We want to ensure that all Canadians have access to a credit card with a reasonable interest rate that does not exceed prime plus 5%, and we are going to cap the fees charged at ATMs at no more than 50¢ per transaction. An NDP budget would immediately put a stop to the federal government's plan to raise the retirement age to 67 and would reverse the $36 billion in cuts to provincial health transfers.

To balance the budget, we are instead proposing to phase out subsidies for the oil and gas sectors, which amount to over $1 billion. We also want to hire the resources necessary to recover the billions of dollars that are lost because of tax evasion and the use of tax havens.

Right now, the federal government is hardly operating like a real democracy.

Since winning a majority, the Conservatives have passed 2,190 pages of omnibus bills. The NDP always opposes the Conservatives' omnibus bills, just like we opposed the Liberals' omnibus bills in the 1990s.

The government is using the House of Commons to impose its omnibus bills. Canadians deserve better from their elected representatives.

[Isabelle Morin, NDP, Notre-Dame-de-Grâce—Lachine, QC]

Mr. Speaker, I thank my colleague for her passionate speech.

She touched on the issue of debt, something I talked about with families in my riding this weekend. People go into debt to buy a car or a house or even to do activities with their children. People get the impression that money is readily available because it is very easy to get credit these days. Then, at some point, they hit a wall and can no longer do anything because they are too much in debt. It is very hard to get out of that situation.

As my colleague said, there are currently no provisions to help families that get deeper and deeper in debt. They are so far in debt that they do not eat as well, the children are less physically active, and their situation is not very pleasant.

Can my colleague elaborate on this issue and speak to our vision of a country that helps families avoid debt and imposes rate structures on banks so that they can no longer put people in these sad situations?

[Annick Papillon, NDP, Québec, QC]

Mr. Speaker, I want to thank my colleague from Notre-Dame-de-Grâce—Lachine. Like me, she knocks on a lot of doors and participates in many events in her riding.

That is why she raises some very real issues in the House. She also understands that we are always getting the same question from people of all ages: why do the banks make billions of dollars in profits every year, regardless of how the economy is doing, but families are more and more in debt?

Rent, food and hydro are costing more and more. We are in debt on all sides. Now, it does not even make sense to withdraw our own money. It can sometimes cost $4 or $5 to withdraw $20. Imagine the massive profits the bank is raking in. It makes no sense that it costs $4 or $5 to withdraw our own hard-earned money, which we deposited.

That is why we need to take this seriously. We are legislators and we represent the Canadian public. We need to put banks in their place. Yes, they can make a profit, but not 700% or 800%. That makes no sense. We need to put banks in their place by adopting a prime plus 5% rate for credit cards and setting ATM fees at 50¢ per transaction, maximum. The NDP is the only party that has proposed this.

[John Williamson, Conservative, New Brunswick Southwest, NB]

Mr. Speaker, hon. colleagues, there is good reason to be pleased with the 2014 economic action plan. Our hard work is paying off; it is paying dividends; and we are on track to realize a stronger and more prosperous Canada in the coming years.

When I was elected in 2011, the global economy was still fragile following the 2008 great recession. It was a time of continued economic uncertainty south of the border in the United States, around the world, and at home. Our economy, while better than most, was still sluggish.

Indeed, voters in my riding of New Brunswick Southwest, which borders Maine and shares waterways with the United States, were well aware of the economic challenges facing U.S. workers and the U.S. government. A majority recognized that our economy was stronger and our outlook even then was brighter.

Today, as the result of several Conservative budgets, this government has created 1.2 million net new jobs since the economic downturn. I should say that government has not created those jobs, but perhaps it has worked to create the conditions for the hard-working men and women across the country. Businesses small and large worked together in the national interest to create those 1.2 million jobs.

Today, our government's foundation is strong. We have competitive tax rates, and we are marching toward a balanced budget. Overall, it is very fair to say that we have strong economic fundamentals.

We have done all this while maintaining transfers to the provinces and territories, which will continue to rise every year to a new record high. We have helped vulnerable families with children and seniors by taxing them less and ensuring important social programs and transfers are maintained and even enhanced. We have done this all along, while the Liberal and NDP opposition have called for higher taxes and more debt spending.

Under our plan, one million Canadians have been removed from the tax roll, including 380,000 seniors. I repeat, one million Canadians are no longer paying federal income tax. There are 1.4 million Canadians no longer living in poverty, including 250,000 children. The after-tax disposable income has risen by 10% across all income levels since 2006. These are real measurable benefits that have helped Canadians from coast to coast.

Of course, there are ongoing challenges, and in some parts of Canada, including my region, unemployment remains stubbornly high. However, recently, the federal government ratified an agreement with the Government of New Brunswick to deliver skills training for in-demand professions through the Canada jobs grant.

We remain focused on job creation and ensuring that the nation's economic fundamentals are strong and will continue to move the country forward. We should take great solace that, according to The New York Times, Canada's working families are at the top of the pack compared to other nations. This is remarkable news.

Of course, this is unpleasant news for the opposition, particularly the leader of the third party, who has attempted to depict a worsening situation for Canadians. In the end, the facts just do not bear that argument out.

On that score, it was with great regret that I read today that the new Liberal premier in my home province is moving to stop the fracking of natural gas in New Brunswick. This decision will slow economic growth; it will hurt job creation and cause more young workers to go west. Towns will begin to empty out, and there will be less money for important social programs, and so Premier Gallant is already calling for Ottawa to throw him a lifeline. He wants more transfers.

That is right: the premier is closing the development of natural gas in New Brunswick, yet insisting more tax revenues, earned by other provinces that do frack natural gas, be sent to his government. If it were not so cruel, we would note the deep irony of sending New Brunswick workers to work in the very same industry Premier Gallant is closing.

However, I digress. I will get back to the matter at hand, which is the 2014 economic action plan.

Our work, which has been ongoing over many years, continues in this budget implementation act. It began with Ottawa first looking internally and reviewing programs to ensure they delivered value for Canadians and Canadian taxpayers. As a result, direct program spending has fallen for three consecutive years, and we are on track for a fourth year, which I believe is a first in modern Canadian history. At the end of the day, this means we are delivering quality social programs, maintaining transfers to the provinces, delivering some tax relief, and doing it all within a balanced budget as of next year.

We have also reformed programs to take into account demographic changes, and we have made modest changes to EI in order to encourage more work and less reliance on the state.

This has all been hard work. I do not think there has been a riding in the country that has not been affected in some way or other by some of these changes. However, they have resulted in a number of things, such as a stronger federal balance sheet, a stronger national economy, and better fortunes for Canadians in the years ahead. I stress the hard work because, as has been said time and time again and will continue to be said right up until the budget next year, budgets do not balance themselves; they require hard work. If members believe budgets balance themselves, I would ask them to consider Greece, Detroit, or even Canada in the mid-1990s. However Mr. Chrétien and Mr. Martin qualified their efforts at the time, I am sure they would not have said that the federal budget balanced itself.

Promoting jobs and economic growth has been our number one focus for the last three and a half years, and it will continue to be our focus going forward until every Canadian who wants a job has one. We have done this through supporting businesses by reducing red tape, making it easy for them to invest, hire, and sell their products.

We have frozen EI tax and have provided EI payroll tax savings for small businesses through the small business job credit.

We are supporting apprenticeship and training programs, and we have also expanded our infrastructure programs. We have done this through the new building Canada plan, which will provide $21.8 billion over 10 years through the gas tax fund. Incidentally, the gas tax fund has been indexed, meaning that, as inflation goes up, our municipalities across the country will see modest increases every year to account for that inflationary loss.

We are spending $10.4 billion over 10 years under the GST rebate to municipalities, ensuring that when they spend money it will benefit their constituents.

We are spending $14 billion under the new building Canada fund to support major projects right across this country.

This is real spending that will have a benefit on communities from coast to coast and ensure that infrastructure is upgraded so our products can get to market, our men and women can get to work, and products—whether coming across by land, air, or sea—are able to get across this continent to markets in the United States, within Canada, or overseas.

The budget also has to be taken in context with our overall trade agenda, where we will see greater market access in Asia and in Europe. That is something I talk about an awful lot when I am home, because many of the industries in New Brunswick are closer to major markets in western Europe than western Canada. If people are selling something like live lobster, they want to make sure the product gets to market while it is alive and fresh.

The other area we focused in on is responsible resource development. We will continue to do that through the energy east pipeline, running throughout the entire country and into the Saint John refinery in New Brunswick, in particular, as a way to ensure that more hard-working New Brunswick men and women have jobs in their home province. Therefore, when they get up in the morning and go to work, they can come home at night and spend time with their families, as opposed to having to travel across the country for work that they could be and should be doing in New Brunswick, whether building a pipeline, refining oil, or fracking natural gas.

In conclusion, these measures that we have pursued have benefited Canadians and Canadian families. I look forward to seeing a balanced budget 2015 and the additional opportunities that our future measures will bring.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I will resist commenting on the whole issue of a Conservative balanced budget because they were able to turn a multi-billion dollar surplus into a deficit and have not yet had a balanced budget.

Having said that, one of the greatest travesties of the government over the last number of months is its lack of commitment to infrastructure in all regions of Canada. Conservatives talk a big line in saying there are record high amounts, in the billions of dollars, going into infrastructure, but what they do not say is that the money is not for this year. They have put off the bulk of that money until future years. There is actually a 90% cut.

Why does the member believe that his own government has dramatically cut infrastructure spending for this fiscal year? There is an estimated cut of between 80% to 90% in infrastructure dollars for this fiscal year.

[John Williamson, Conservative, New Brunswick Southwest, NB]

Mr. Speaker, as the previous infrastructure program ramped down, the new program is ramping up. I hear a lot of talk in the chamber by the opposition about there being too few infrastructure dollars, but I have say that when I talk to municipal leaders back home, they are very pleased with the changes we made to the gas tax transfer, which at one point doubled. Then, of course, we took the additional step this year of expanding what would be eligible.

As a result, there are municipalities throughout my riding applying under that program to spend it in infrastructure areas in which they previously could not. At the same time, they are putting in new applications for the new building Canada fund that is going to see projects begin this year and every year going forward.

On that note, I might ask my hon. colleague a question. On one hand, he talks about the need to balance the books, but at the same time he constantly talks about the need to spend more. I would ask him which it is. Is it a question of balancing the budget or spending more? We believe one can do both if one is responsible and makes tough choices.

[Costas Menegakis, Conservative, Parliamentary Secretary to the Minister of Citizenship and Immigration]

Mr. Speaker, I want to thank my colleague for that very thoughtful speech that spoke to the benefits of this budget for Canadians across this country.

I heard the Liberal member comment on a balanced budget. Of course, I think everyone in the House knows that when we voted to stimulate the economy with some $62 billion, the Liberal Party knew very well at the time that we would be operating in deficit. However, we are out of that situation now and are working toward a balanced budget.

The member for New Brunswick Southwest spoke very eloquently about the gas tax refund money and how that is benefiting municipalities in his riding. That is certainly predictable funding that local municipal councils can use to upgrade facilities and parks, and so forth. Could he perhaps expand a little on the importance of that predictable funding to the municipalities in his riding?

[John Williamson, Conservative, New Brunswick Southwest, NB]

Mr. Speaker, predictable funding is key to other levels of government, which can rely on it year in and year out and plan around it, whether for one-off projects or ones over many years, which tends to be the case when it is larger infrastructure.

I will give another example where predictable funding has been very helpful. Since 2006, the beginning of our time in office, federal transfers to the Province of New Brunswick, my home province, have increased by 27% and this year stand at $2.6 billion, which is a very good amount of money for a small province like New Brunswick.

The point I want to make is that under our government, those transfers for health, social services, and equalization have gone in one direction every year, and that is up. We have managed to do this while we have looked at Ottawa's operations and reduced spending that was not in taxpayers' interest. At the same time and in parallel with the question about municipalities, this has ensured that the Province of New Brunswick can guarantee quality social programs going forward, unlike the changes the Liberal government made in its time in power when it cut health and education by 30%.

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, I am pleased to add a few words to this important debate on a 460-page omnibus bill.

Before I make my comments, I would like to wish everyone, including my colleagues, my constituents at home, and those watching, a merry Christmas and happy holidays. I hope 2015 is a great year for everyone.

I am pleased to be able to speak to Bill C-43, as much as I am frustrated with the 460-page document that I am willing to bet very few in the House have gone through. I know that we certainly attempted to, but no matter how hard one tries, it still is such a large document with so many different things in it, everything but the kitchen sink, as with previous omnibus bills.

We will find out later, after things are passed without sufficient scrutiny, that there will be a variety of mistakes and that corrections will have to be made. There will be some pretty poor pieces of legislation as a result of this omnibus bill. That is going to land at the feet of the government. Certainly the opposition points pieces out, but the government does not choose to listen. It will have to deal with those things when people raise them, and there will be no justification to argue back.

In the simplest of terms, I oppose Bill C-43 because it implements a budget that fails to address the real challenges that each and every one of us here faces every day and every weekend we are in our ridings.

Worse yet, the government is abusing the very process for the budget by again tabling an omnibus bill, and then limiting debate and study. It will go through it in a short period of time. It is 460 pages, and it is a joke to think that anyone will get the time to really go through and examine it. The government has also limited the amount of time we can challenge it and give it an opportunity to improve the bill. The government is continuing its same reckless pattern since coming to power. It pursues a reckless and very anti-democratic course.

From my own perspective and that of my party, I will not be supporting Bill C-43. My opposition to Bill C-43 is not just rooted in the government's failure to understand or respect our democratic institution, which it clearly does not, but also in my much deeper concerns with it.

Bill C-43 is clearly the product of a tired, old government that has lost touch with Canadians, or least Canadians outside of the corporate boardrooms of the nation. Sadly, the Prime Minister has forgotten what it is like to struggle to make ends meet. He has forgotten what it is like to make financial choices based on how to stretch a dollar a little further. He has forgotten how hard it is out there for the blue collar crowd sitting around their kitchen tables, figuring out how they are going to make ends meet.

The Prime Minister is the sixth highest paid world leader, and he has a strong and stable retirement income waiting for him. It is too bad that most Canadians do not have a chance to have even half of that.

This Prime Minister's ambivalence to the middle class struggles was clear when he attacked income trusts and slashed the OAS, making people wait until the age of 67 for eligibility. I do not know about their ridings, but certainly in my riding I have people in their mid-50s coming in who have worked in construction, mining, and other hard labour jobs and who cannot make it to 65, never mind 67. This is only going to make it that much worse.

One needs to look no further than the government's reliance on measures such as TFSAs and non-refundable tax credits to see that this is a philosophy premised on giving people with extra money the ability to put it away at a higher rate of return. For people who do not have extra cash to invest, Budget 2014 offers nothing.

It offers less than nothing actually, because the government continues to chip away at the federal government's fiscal capacity, which hinders our ability to help those who need help the most. Maybe that is the Conservatives' objective, to squander every cent of money left so that if we are given an opportunity to form government, we will have a really hard time when the money has all been spent and we are running into more debt. Maybe that is the goal here.

In the context of Bill C-43, the question remains, what about those without extra money to invest? What about seniors, students, and working families who have too much debt at the end of the month and not enough money? Again, why has the Prime Minister turned his back on struggling Canadians?

The middle class is working harder under the current government and working families are falling further behind. This year's budget would do nothing to address the very real challenges facing the middle class.

The real problem with Bill C-43 is the missed opportunities with things the government could have done with a good surplus, the things it could have invested in that really would have helped the average Canadian have an easier life.

We Liberals believe that the government must not only create the right conditions for economic growth, but also ensure that growth is sustainable and would finally help middle-class families. This would require investments in infrastructure, training, innovation, and in expanding trade, as well as competitive tax rates. It is not only about taxation. It is about investing in our universities and our colleges, investing in the entrepreneurial hubs we have across the country that are looking for support, for new ideas.

However, instead of creating real jobs and growth, Bill C-43, would encourage businesses to stay small and would actually punish them if they grow. It would actually create an incentive for some businesses to fire workers, as ridiculous as that sounds.

The PBO, the Parliamentary Budget Officer, says that the EI tax credit in Bill C-43 would only create 800 jobs over the next two years, and big thing is that it would cost $700,000 per job.

The Parliamentary Budget Officer is an independent officer of Parliament. He does not belong to any party. He does not belong to the government or the opposition. He is an independent officer who is there to examine all of these things. Therefore, his analysis and his figures need to be paid attention to.

The Liberal plan for an EI holiday on new hires would actually reward businesses that create jobs. It has been applauded by job creators like Restaurants Canada, the Canadian Manufacturers and Exporters, and the Canadian Federation of Independent Business.

Then, again, Budget 2014 is certainly not a budget in the traditional form. Bill C-43 is full of changes that do not belong in a budget bill, such as a mean-spirited rule change that would help deny social assistance to refugee claimants.

Bill C-43 would also add GST and HST to various services provided by non-profit health care facilities, such as residential services at old age homes. This would, again, punish Canadian seniors who are already struggling to get by on a fixed income.

This is another example of a government bent on attacking the most vulnerable, and Conservative closure tactics are preventing those of us who actually care about middle-class Canadians from offering any level of protection.

At 460 pages, with over 400 separate clauses amending countless different laws, Bill C-43 represents nothing short of a clear abuse of powers. It will be years before we find out the impact of many of those clauses, no matter how much time is spent on them.

It is anti-democratic for the Conservatives to use an omnibus budget bill to limit debate and ram so many unrelated measures through Parliament. It prevents MPs from properly scrutinizing the legislation. It is called a budget bill, and it is anything but a budget bill. It begs the question: what are the Conservatives so afraid of?

I think we all know the answer to that question. The current government is afraid that middle-class Canadians will see the reckless and mean-spirited actions of the government.

However, in addition to the tone and abuse of power problems underscored by Bill C-43, it cannot go unnoticed that Bill C-43 is just poorly written legislation. I continue to be shocked by the level of incompetence demonstrated by the government on such fundamental items as the laws of the country. Certainly, I have long questioned the government's general compassion and fiscal competence, but I would have expected some level of proficiency in preparing legislation.

I am thankful for the opportunity to offer my comments and my disappointment that the government continues to put forward omnibus budget bills that are clearly meant to put everything but the kitchen sink through and which reflect little of what Canadians really need.

[John Williamson, Conservative, New Brunswick Southwest, NB]

Mr. Speaker, I find it laughable that the hon. colleague, with all due respect and deference, suggests that the Prime Minister does not understand the struggles of ordinary, hard-working Canadians, particularly when we look at the numerous policies that the government has put out with respect to benefiting workers through various tax credits, the doubling of the fitness credit for kids and, more recent, the family tax relief that was announced to be rolled out next year. Thankfully, we were able to do this because of the tough measures that were taken by the government over the last couple years as we moved to a balanced budget.

I would ask the member to answer a question that reflects on her own leader. How could her leader suggest that budgets balance themselves and do not require decisions to be made by the government of the day?

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, when the current government came to power, there was a $13 billion surplus. It used it in the following two elections to buy every vote it possibly could by promising everything it possibly could. Through all this period of time, we are now starting to see the 2011 election promises come to reality. However, the government made people wait until the next election. It is simply using the process to buy votes.

As far as how to run an economy and how to build a country, it is by investing in things like innovation and infrastructure that help create jobs in a positive environment. That is how to balance a budget and that is how to turn around and look after the economy.

Our leader is very competent, very knowledgeable on these things. When we hear a comment like that, if we look into it, what do we get from C.D. Howe and the rest? Invest in infrastructure, the economy and, yes, the books will be balanced.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, could my colleague expand on the issue of the middle class? The leader of the Leader Party and the caucus as a whole has put a great deal of emphasis on the importance of the middle class to Canada's economy going forward and the need to give more attention to the middle class.

The government's recent announcement of the income split would in essence assist less than 15% of the population. It would cost $2 billion, and it would be the middle class paying for that commitment. Would she like to provide some comment on that policy announcement?

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, the focus continues to be very much more on those who have a lot. When we talk about the TFSAs and the possibility of doubling them, or whatever it is, that really helps an awful lot of people who have money. It does not help the people who do not have the money to put away. We do not find 35-year-olds having a whole lot of money to put into TFSAs because most of them are trying to balance their families.

Having fully refundable tax credits, no matter what it is, then maybe we really are helping those in the middle class. However, to bring in things like income splitting would only help those in the upper levels.

Again, it is very reflective of the government. The people in the lower levels who are struggling, where the mother and father are both working and kids are in daycare, if they have them. Many of those kids end up at home by themselves with no one to look after them. They are struggling to pay the mortgage and put bread on the table.

There is nothing in Bill C-43 at all that would help those families. When they sit around the kitchen table tonight, they will not to say that Bill C-43 is wonderful, that budget will help them in all kinds of ways. No, they will wonder how they will get through to the weekend. That is the reality.