Mr. Speaker, as I rise to speak to the government's budget implementation act at third reading, I regret that we are debating, yet again, another massive omnibus piece of legislation.
This legislation contains many specific flaws, but I would like to start by addressing its conceptual failure. It covers too many subjects which are non-budgetary in nature and therefore not suitable for inclusion in a budget implementation act.
This legislation is frankly a smokescreen designed to ram through a multitude of changes without allowing for careful scrutiny and rigorous analysis. It is 460 pages long, with 400 separate clauses amending countless different laws. Bill C-43 represents a continued abuse of power, disrespect for Parliament, and plain bad judgment on the part of the government.
I would like to review a few of the specific laws in this legislation.
First, there is the small-business job credit. The Minister of Finance conceded, in his appearance before the finance committee, that his department did absolutely no economic analysis of this measure before allocating more than half a billion tax dollars to it.
At the Standing Committee on Finance, we heard from experts who say that this tax credit has a serious design flaw. It creates a perverse incentive for employers to lay off workers or reduce their hours of work in order to qualify for the tax savings.
The Parliamentary Budget Officer told us that this so-called job credit would create only 800 jobs over two years, at a cost of about $700,000 per job. Obviously, it is outrageously expensive and ineffective as a job creation measure. We know that there are better ways to manage half a billion dollars in tax dollars and at the same time better ways to create jobs. There are other measures or potentially better-designed investments that could do more to bolster the economy and create jobs cost-effectively.
We offered a focused alternative. The Liberal plan would create a two-year EI premium holiday for businesses that create new jobs, that actually hire and add to their payrolls. This would be a true incentive for employers to do more hiring. Our proposal would fix the design flaw in the government's tax credit. It was endorsed by Canadian employer organizations, such as the CFIB, Restaurants Canada, and the Canadian Manufacturers & Exporters.
Second, I would like to address the government's latest attack on refugee claimants. Having been overruled by the courts on their previous attempt to deny claimants proper medical care, the Conservatives now wish to make it easier for provincial governments to deny them social assistance. It is a harsh and punitive policy that certainly should not be buried in an omnibus budget bill.
Third, there is the restructuring of the Public Health Agency of Canada. The government would demote the position of chief public health officer, a move that would carry potential risks for the health of Canadians. At the finance committee, we heard from experts about how the Public Health Agency was created in the aftermath of Canada's SARS crisis. They told us that the chief public health officer was deliberately, at that time, made a deputy head so as to have the necessary power and autonomy to work with the provinces and effect change. The omnibus bill would undo much of that good work.
This omnibus bill also attempts to clean up the mess and correct some of the errors contained in previous Conservative omnibus bills. For example, in the last omnibus budget bill, Bill C-31, the Conservatives forgot to include a tax credit for interest on Canada apprentice loans. In the same bill, they forgot to include foreign money-service businesses as foreign entities in measures under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
The Conservatives also forgot to introduce a refund for duties paid on destroyed tobacco products when they hiked these duties in Bill C-31. As well, they forgot to subject pooled registered pension plans to the same GST rules as registered pension plans in previous legislation.
There is a litany of forgetting, and it is an unfortunate result of not just a lack of competence and attention to the detail, the nitty-gritty of government or economic management, but also the design flaw of the overall approach of putting all these changes in a budget omnibus bill and denying the appropriate committees of Parliament to both review and vote on measures pertaining to their area of public policy and expertise.
In this litany of forgetting things, the government may actually be forgetting about the needs of Canadians. However, I do not think Canadians will forget about the failings of the current government come the next election.
Principal among those failings is a lack of consultation, which is clearly evident in this omnibus bill. The government did not consult with aviation groups when changing the rules around aerodromes. It did not listen to Canada's only international cable-laying company when excluding cable laying from the definition of international shipping. It did not listen to the provincial governments when pressing ahead with measures aimed at denying social assistance to refugees.
The Canadian people have made it clear that they need economic growth and employment, and they need growth and jobs to be an absolute priority for the government. Unfortunately, the government is out of touch with Canadians' needs and aspirations, and it is certainly doing nothing to create growth and prosperity.
For example, consider the government's new income-splitting scheme, which will cost $2.4 billion this year. It benefits only 14% of Canadians, the most privileged of Canadians. The measure completely overlooks single parents and parents who happen to both make similar incomes.
The late Jim Flaherty had doubts about it, and he expressed them clearly. These are the words of the late Jim Flaherty:
I think income-splitting needs a long, hard analytical look...to see who it affects and to what degree, because I’m not sure that overall, it benefits our society.
If the Conservatives followed his advice and took a long, hard look at income splitting, they would see that it does nothing to really create growth and prosperity, and does nothing to help a lot of the Canadian families that need the help the most. It also puts the government more deeply in deficit this year. The government would already project a surplus, or be close to a surplus this year, if it were not for this income-splitting scheme, which actually puts us back into a deficit situation.
While the Conservatives are borrowing to benefit a small and relatively well-off segment of the population through income splitting, they are neglecting a vulnerable group that has served Canadians with true patriotism and valour; that being our veterans.
In addition to closing Veterans Affairs offices, the government lapsed $1.1 billion that was earmarked to invest on behalf of veterans. Instead of following Parliament's direction and using those funds to take care of our veterans, the government clawed that money back for the federal treasury.
Meanwhile, the government skimped on much-needed mental health services for our veterans. In his recent report, the Auditor General found that 80% of veterans had to wait nearly eight months to find out if they were even eligible for long-term mental health services, and the other 20% had to wait even longer than that.
This is callous treatment by a government that likes to lionize the military, but will not treat individual veterans or their families with care and respect. The Conservative government is even trying to argue in the courts now that it does not have a sacred obligation to those who served in the Canadian Armed Forces.
A Liberal government would have a very different agenda than the current government, economically and socially. We believe that members of the Canadian Armed Forces and veterans should have nothing less than the best of care and support from a grateful nation and government. Our goals would be fair treatment for all members of society and the strengthening of Canada's middle class through an agenda of jobs and growth.
We would grow the economy in a way that would benefit all Canadians, investing significantly in infrastructure, innovation and trade. We would partner with the provinces and Canadian municipalities. We would work with progressive investors, including, potentially Canada's pension funds, to invest significantly and massively in infrastructure. We would follow some of the lead of countries like the U.K. and Australia. This year, Australia is investing $13 billion of federal money into infrastructure. It is leveraging with the state governments and with pension funds to create $60 billion of new investments in infrastructure.
We have the capacity, through a forward-thinking and innovative infrastructure agenda, to create jobs and growth in the short term during this time of secular stagnation and slow growth and soft employment. We can create jobs and growth in the short term, but we can also render our economy more competitive in the long term by addressing Canada's crumbling infrastructure needs.
The reality is that we probably have the best opportunity in our lifetime to actually invest in infrastructure. We have bond yields at historic lows, real interest rates actually negative, a crumbling infrastructure and soft employment market, and a slow growth economy. Put those factors together and there is little wonder why people like David Dodge, or the OECD or the IMF are saying that countries like Canada ought to be investing significantly in infrastructure.
This is no time for the government to do what it did in the last budget; that is, cut planned infrastructure spending by 89% in order to achieve a notional surplus on the eve of an election.
Infrastructure spending needs to be significant, it needs to be consistent, it needs to be long term in nature, not just around electoral scheduling.
We would invest, as a government, in getting better labour market information to provide a clear understanding of the skills mismatch to the situation of jobs without people and people without jobs, address labour shortages and, at the same time, give opportunities to young Canadians who need work.
There are 200,000 fewer jobs for young Canadians today than before the downturn. One of the things we need in Canada is better labour market data. We need to invest in organizations like Statistics Canada. We need to ensure that young Canadians and their families know more about what the jobs of today look like and what the jobs in the future will look like. We need to get better data and we need to make that data available in a user-friendly format for young Canadians, starting in junior high school, such that they can start thinking long term, not just what they want to do but what those jobs actually pay so they can get a job that will provide them with the means to have a place of their own. There has never been a time, in recent history, when we have seen more young Canadians living at home, on the sofa in the basement, because they simply cannot get work to financially sustain themselves.
One of the drivers of high levels of personal debt for Canadian families right now is the direct financial subsidization of adult children who cannot get a job or cannot get jobs that will actually financially sustain them. Canadian families today are seeing record levels of personal debt—$1.65 for every $1.00 of annual income—as parents and grandparents directly financially support young people who have skills, who have good educations, but whose skills do not match current labour market needs. We need to close that gap and part of it is simply providing good information to young Canadians as they are planning their career and their lives, and informing them as to the types of jobs, professional trades, that can provide them with the capacity to support themselves into the future.
We need to work with the provinces to restore the honour and respect paid to professional trades. We have seen a diminution in the respect for professional trades over the last 30 years. We need to reverse that because we know there is a shortage of skilled trades and an opportunity for young people, if they are given the correct information, to choose paths in skilled trades, I think we will see more young people doing that.
We also need to invest more in training and apprenticeships. We need to track unpaid internships, for instance. We have asked the government to mandate Statistics Canada to track unpaid internships. We have been told that there is more use of unpaid interns today than ever before. It is kind of a supply and demand issue.
There are a lot of young Canadians who are desperate for work, desperate for the experience they need to start off their careers, who simply cannot find work. The issue with unpaid internships is that it can deepen inequality of opportunity significantly because only children from privileged families can afford to work for no pay. In other words, it is more likely a child from a privileged family will actually get a good start and get some work experience.
This has tremendous long-term impacts on equality of opportunity. We have learned from a recent report of the IMF that in fact inequality of opportunity is not just a social issue; it impedes economic growth. That is why issues like unpaid internships and income inequality are important and why we should, at the very least, not make the situation worse with a tax change that has the capacity to deepen inequality, like income splitting.
We also need to recognize that over the last 30 years the nature of work and training has changed, not just in Canada but throughout the industrialized world. The old days where one could get a degree, or a diploma, or trade and be set for life and never have to go back to school, university or college, are over, in the same way that working for 30 years, retiring with a gold watch and defined benefit pension plan is largely behind us.
We need to update and modernize our Canada student loans program as part of a suite of support for not just young people as they graduate from high school to get their education, but as they move forward through multiple decades of their careers and lives. There is nothing really there for people in their 30s who have young families, who find that their skills do not match the current job market. It is very difficult for them to finance the education and training they need to get a job to support their families at that time. It would be good for productivity and competitiveness, and jobs and growth, if we worked with people throughout their careers and life cycles to help them get the skills they needed during that entire period.
We also believe it is important that we go back to evidence-based decision making, as opposed to the Conservatives' decision-based evidence making, when we are crafting public policy. What we may think, based on an ideological perspective, is the right thing to do, when exposed to the bright light of fact and information, we may be surprised. It is important that we get the best possible information and data, whether scientific or statistical.
We live in an age of big data. Smart companies and smart governments are investing massively in knowing more about their customers and the demographic trends and how to prepare for them. There is only one organization I can think of globally that has deliberately chosen over the last 10 years to both reduce the quality and quantity of data it collects, and that is the Conservative government. It is an ideological perspective that is wrong headed.
Instead of dividing Canadians with ideologies, a Liberal government would unite Canadians with ideas, based on fact, creativity, imagination and innovation, to create the jobs and growth that Canadians need.