Debates of May 14th, 2014

Finance—Main Estimates 2014-15

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, this government is continuing to introduce policies, including tax policies and infrastructure initiatives, that will be building employment right across the country. Toronto is, of course, an economic engine not only for Ontario but for the entire country. It has a vibrant financial services sector, which is doing very well, and we would like to see all Torontonians benefit. We would like to see policies adopted in Ontario that focus on job creation.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Chair, even Bay Street does not seem to be helping, because unemployment is increasing in the city of Toronto.

Does the minister know by how much temporary jobs have increased since the end of the 1990s in the Toronto census metropolitan area, that is, the Toronto area? Does he know by how much temporary jobs have increased, say since 1997, before the recession?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the first point I would like to correct is the unemployment rate in Toronto. It is now at 7.5%, down from its recession high of 10.2% in June 2002. The long-term unemployment rate, the share of the labour force unemployed for 27 weeks or more, has fallen by one-quarter from its peak during the recession. It is now below its long-term historic average.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Chair, we can duel over unemployment numbers. I can tell you that unemployment is up in the city of Toronto, and you did not answer my question. My question is this: Do you know by how much temporary jobs have increased in Toronto since 1997?

[The Deputy Chair, Conservative, Barry Devolin]

I would remind hon. members to direct their questions to the Chair rather than directly at the minister.

The hon. Minister of Finance.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I do not have the specific number for Toronto. I can say for Canada that full-time employment is at 87%. A million jobs were created. There are almost 18 million people employed, 87% full time, with 64% in high-wage industries and 83% in the private sector. If the member opposite needs specific numbers by city or by region, we can provide those to the extent that they are available.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Chair, the number is actually 40%. Temporary jobs have increased by 40% over about the last 20 years. It is less than that. It is 15 years.

Does the minister really think that increasingly shifting to part-time and precarious work is an acceptable replacement for full-time jobs?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

As I have said, Mr. Chair, the bulk of the jobs are, in fact, full time. The majority of jobs are in the private sector. The majority of the jobs are high-wage jobs, and we are very pleased about that. We think that it is proof of the resilience of the Canadian economy.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Chair, that is simply ridiculous and illogical. It is simply not the case. I would love to dig down into these numbers, but I have such limited time that I need to move on to another topic. However, it is ridiculous to say that most of the jobs being created are high wage, permanent, long-term jobs. It is simply not the case.

Let me turn to the issue of infrastructure. Downloading by Liberal and Conservative governments has led our cities to the point of crisis. Does the minister know the current infrastructure deficit?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the infrastructure invested in in Canada creates jobs, promotes economic growth, and provides a high quality of life for families in every city and community across the country. In recognition of the importance of efficient public infrastructure and Canada's economic prosperity and quality of life, our Conservative government has made significant investments since 2006 to build roads, bridges, subways, rail, and much more.

Indeed, under the $33-billion building Canada plan launched in 2007, we supported over 12,000 infrastructure projects across the country. Furthermore, last year, our government announced the new building Canada plan, a $53-billion investment in predictable infrastructure funding for the next 10 years. It is the largest and longest federal investment in job-creating infrastructure in Canadian history.

[The Deputy Chair, Conservative, Barry Devolin]

In anticipation of a concern, I would just remind participants that the previous question was 40 seconds, and the response was one minute and four seconds, so it was a bit long. I would remind all participants to work together.

The hon. member for Parkdale—High Park.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Chair, the answer also had nothing to do with the question. My question was whether he knows how much the infrastructure deficit is. Either he does not know or he does not care to say. Let me help him out. The answer is at least $170 billion, which is a pretty big number. I think even he would agree.

Let me ask the minister this: What reduction in infrastructure plan funding did budget 2013 announce for the subsequent five years?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, as I said, in 2013 we announced a new building Canada plan, which is a $53-billion investment. Our government has supported an additional 30,000 infrastructure projects through the stimulus phase of the economic action plan. We have provided increased and ongoing support through the gas tax fund by doubling its size to $2 billion a year, making it permanent, and indexing it at 2% per year.

We have provided over $9 billion to first nations communities to build, operate, maintain, and renovate community infrastructure on reserves and $1.7 billion annually for close to 600,000 households on and off reserves across Canada.

Because I do not have enough time, I cannot list all the additional programs.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Chair, once again, unfortunately, my question was not answered. My question was what the 2013 budget announced on the reduction in infrastructure spending for the next five years. The answer was a $5.8-billion cut over the next five years compared with the 2012-13 funding levels.

Yes, they announced funding for the future, way down the road, when they will no longer be the government, but for now, they actually announced a cut.

Let me ask another question. Does the minister know the cost of gridlock in the city of Toronto, the city he is also the minister for?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I do not have the cost of traffic jams in Toronto, but we will hear it from the hon. member, perhaps.

[The Deputy Chair, Conservative, Barry Devolin]

That concludes this round. Resuming debate, the hon. member for Edmonton—Leduc.

[James Rajotte, Conservative, Edmonton—Leduc, AB]

Mr. Chair, I am pleased to welcome all those Canadians from coast to coast who were watching the hockey game. I know they will now be tuning in to this committee of the whole tonight.

It is my pleasure to address this committee tonight to highlight one of the central initiatives in the budget, the important role our government plays in Canada's science, technology and innovation system.

Since 2006, this government has provided more than $11 billion in new resources to support science, technology and innovation in Canada.

We have long recognized that the development of new ideas and new products is key to Canada's future prosperity. It fuels the growth of small and large businesses alike and drives productivity improvements to raise the standard of living of all Canadians.

Canada remains the G7 leader in research and development expenditures in the higher education sector as a share of the economy. Our universities and post-secondary institutions are recognized internationally for providing a truly world-class education.

Canada's strengths in post-secondary research make our nation a destination of choice and Canadian institutions have attracted some of the world's best researchers.

However. we cannot be complacent as Canadian post-secondary institutions face significant competition from their counterparts in other countries for the best minds, partnership opportunities and breakthrough discoveries.

Canada's ability to attract top research talent, innovators and enterprises requires its world-class institutions to be able to seize emerging opportunities and excel on the global stage.

That is why the economic action plan 2014 will create the Canada first research excellence fund to help Canadian post-secondary research institutions leverage their key strengths to the benefit of all Canadians.

The plan will provide the Canada first excellence research fund with $50 million in 2015-16, growing to $100 million in the following year, $115 million in 2017-18, and reaching a steady state level of $200 million annually in 2018-19 and beyond.

Within the next decade, this fund will provide an additional $1.5 billion to advance the global research leadership of Canadian institutions. This initiative will position Canada's post-secondary institutions to compete with the best in the world for talent and breakthrough discoveries, creating long-term economic advantages for Canada.

I would like to highlight some of the comments of economic action plan 2014 investments and, in particular, this fund and these investments received.

The president of the University of Alberta, Indira Samarasekera, said the measures in budget 2014:

—demonstrate the Government of Canada's commitment to excellence in higher education, research and innovation and I would like to thank it for such strong support. I am convinced that this investment will help universities such as the U of A meet rising global competition. With it, we will be able to increase our capacity to attract and retain the best and brightest faculty, post-doctoral fellows, graduate students, and international partners to advance the scientific discoveries, solutions and ideas that will benefit Canadians for generations to come.

Another comment is from the president of the Association of Universities and Colleges of Canada. Mr. Paul Davidson said:

Today Canada is signalling to the leading research nations of the world that it intends to compete with the best in terms of support for research excellence and attracting top innovators to our universities...This new strategy recognizes that research excellence takes place at universities of all sizes and in all regions of the country; the benefits will be shared by communities, students and faculty across Canada.

Obviously our government is very pleased to see such strong support for economic action plan 2014. I would like to recognize people like Indira and Paul Davidson for the work they did in encouraging the government to invest in this manner.

Our government has also taken numerous steps to strengthen our nation's capacity for advanced research, the kind which leads to breakthroughs at universities, colleges or other institutions across the country. As an example, let me highlight one of the jewels in Canada's scientific community, one of our big science projects, the TRIUMF cyclotron particle accelerator, a facility that the industry committee visited during our study of science, technology and innovation across the country years ago.

Through TRIUMF's ambitious international partnerships, Canadian researchers have been at the centre of some of the most important international research projects, most recently making critical contributions to the discovery of the Higgs boson particle at the Large Hadron Collider at the European Organization for Nuclear Research.

TRIUMF has also forged highly successful partnerships with industry leaders in order to commercialize the scientific breakthroughs, and is recognized globally for its innovative work in the production of medical isotopes used for treating thyroid, breast and other cancers.

It has helped to launch several spin-off companies and accelerate the growth of existing firms by sharing expertise, laboratory and research space and jointly developing leading edge research equipment.

Our government strongly supports these efforts and, starting in 2015, our government will be providing an additional $126 million over five years to further support the world leading research taking place at TRIUMP. Initiatives such as TRIUMP have proven that Canada's innovators are up to the task of competing on the world stage if they have the opportunity and the resources to do so.

Unfortunately, all too often our nation's innovative enterprises lack access to the very fuel that would drive their success, mainly venture capital. Venture capital plays a critical role in providing the investment and resources needed for these promising enterprises to realize their full potential.

The Canadian capital venture market has had mixed results over the past decade, which has resulted in an overall decline in venture capital fundraising. Clearly there is a need to expand the supply of venture capital in Canada, as was noted by the expert panel review of federal support for research and development. However, this is not a challenge the government can address on its own.

That is why in 2013 our government introduced the venture capital action plan, making significant resources available to support Canada's venture capital industry, including $400 million to help increase private sector investments in early stage risk capital, fulfilling a commitment that was made in 2012.

Business accelerators and incubators are important players in the venture capital system. These organizations bring entrepreneurs together and provide them with working spaces, hands-on mentorship by successful innovators, and access to specialized business services in order to develop their ideas and grow their businesses, one of our biggest challenges in our country. Graduates of these programs can present superior investment opportunities for venture capital funds, attracting more investors and more capital.

Budget 2013 announced $60 million over five years to help outstanding and high potential incubator and accelerator organizations expand their services to entrepreneurs to be delivered through, I think, one of the best programs through the Government of Canada, Natural Research Council's industrial research assistance program, NRC-IRAP.

Our most recent budget will boost this investment by providing an additional $40 million over four years, bringing the program's total funding to $100 million.

Working together, we will strengthen Canada's venture capital system and help promising Canadian firms not only to launch their innovations, but unleash their unlimited potential.

These programs not only strengthen Canada's capacity for world leading research, but they will also help improve the commercialization of Canadian innovations. The research they support and the researchers they develop will help sustain Canada's economic advantage well into the future.

Since 2006, sustaining Canada's economic advantage has been a priority of our government.

I ask the Minister of Finance to highlight what the government is doing to support advanced research and specifically how our record and our plan compares with the plans of the other parties.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, economic action plan 2014 reinforces Canada's economic strength with new support for research and innovation, totalling more than $1.6 billion over the next five years. The government plays an important role in Canada's science, technology and innovation system. Since 2006, the government has provided more than $11 billion in new resources to support basic and applied research, talent development, research infrastructure and innovative activities in the private sector, including more effectively aligning federal support for research with business needs.

To be successful in the highly competitive global economy, Canada must continue to improve its ability to develop high quality, talented people to perform world-class research and generating new breakthrough ideas.

The government has increased support for these activities in each year since 2006, even during the global recession. In 2013, this support exceeded $3 billion for research and post-secondary education alone.

Economic action plan 2014 builds on these commitments with the creation of the new Canada first research excellence fund. The fund, which is based on the principles of openness, excellence and peer review, will provide what many in the research community have asked for in recent years: significant, flexible resources to further drive Canada's post-secondary research institutions to become the world's best.

Let me quote the president of McMaster University, who said:

It’s an exceptional government investment...Countries that have made extraordinary leaps in research and innovation have made these types of landmark investments. For Canada to now have this type of support from the government will allow our country to compete and collaborate at the highest levels.

Canada has a rich research tradition that has been boosted by the significant investments our government has made since 2006. Our government's investments in science, technology and innovation have helped ensure Canada leads the G7 in post-secondary research expenditures as a share of the economy, and our commitment remains strong.

In economic action plan 2014 alone, we announced the largest annual increase in funding for research through the granting councils in over a decade. This includes $46 million a year on an ongoing basis.

The investments we have included in this year's budget will promote Canada's economic advantage both now and for many years to come. This is where our government and the Liberal Party differ. Where our government makes wise, strategic and targeted investments that will lead to greater prosperity for Canadians, the Liberal leader threatens unrestricted higher spending.

As both the member for Edmonton—Leduc and I have noted, on budget day this year there were numerous universities and other educational institutions that affirmed their support. At the exact same time, the leader of the Liberal Party was live on television saying the exact opposite. Instead of supporting the road to balanced books, he attempted to persuade Canadians that the budget would somehow balance itself. In my many years working in the finance sector, I must say this is a first. I have never heard that budgets can magically balance themselves.

Despite the Liberal leader's new philosophy, we remain on track to balancing the budget in 2015, while continuing to make important investments to attract, educate and train the world's top research talent. We believe that with the initiatives we announced this year and all our budgets that came before it, Canadian visionaries and entrepreneurs will have all the support they will need to be world leaders.

[James Rajotte, Conservative, Edmonton—Leduc, AB]

Mr. Chair, I appreciate that response by the minister and all the investments in this area.

If I have time, I would like to perhaps pose another question for the Minister of State for Finance with respect to financial literacy. I was very pleased when he made the recent announcement that Jane Rooney would be the Financial Literacy Leader in Canada. She has done outstanding work at the Financial Consumer Agency of Canada for years and that organization has done excellent work. I encourage all Canadians to visit that website to see the amount of work it has done for individuals, families, schools and other such organizations.

Perhaps the Minister of State for Finance could indicate where the government is going in terms of this path. This is obviously an issue of concern to many Canadians, but it is something that I introduced a motion on this topic to Parliament in 2010 and was very gratified it was adopted by the House nearly unanimously. I am very pleased with the government's follow-up with respect to that specific motion. Could the Minister of State for Finance indicate where the government is going with respect to financial literacy?

[Kevin Sorenson, Conservative, Minister of State (Finance)]

Mr. Chair, I want to thank the member for Edmonton—Leduc.

The member is correct; our government has demonstrated an unprecedented commitment to enhancing financial literacy here in Canada, and I think he can rightfully take much of the credit for the measures this government has taken. As chair of the finance committee, stepping forward with proposals through his own private member's bill, he was the push for our government to do some of the good things we have done.

We want all Canadians to have the skills they need to make solid financial choices that benefit them, just as our government has been making the right financial choices for Canada. We know that understanding the basics, such as budgeting, saving, credit, and debt, will help Canadians keep their finances in good shape.

We created the task force on financial literacy, dedicated November as Financial Literacy Month, and designated new resources to the Financial Consumer Agency of Canada. As well, the member is also right that we appointed a very good financial literacy leader, Ms. Jane Rooney, to help with the strategy across Canada.

The financial literacy leader's mandate is to collaborate and coordinate activities with stakeholders, ultimately strengthening the financial understanding of all Canadians. The financial literacy leader will also lead consultations on the development of a national financial literacy strategy that, among other things, will specifically focus on the needs of seniors. We know there are other groups as well that are vulnerable.

There is much to be done with youth. We have seen some of the things that schools across this country are doing. Again, it is because of much of what our government has moved forward on, and the member for Edmonton—Leduc can take much of that credit.

We are excited about the financial literacy in our country. We know that it is going to be a challenge and we are also excited by the number of stakeholder groups that have come forward to help us in this endeavour.

[Scott Brison, Liberal, Kings—Hants, NS]

Mr. Chair, does the minister believe that an annual income of $12,500 per year from CPP is enough for a Canadian senior to live on? If not, does he agree with his predecessor who wrote to the provinces saying that we should consider a modest phased-in and fully-funded enhancement to define benefits under the CPP?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, our government understands the importance of a secure and dignified retirement for people who have worked so hard to build this country. We have lowered taxes and brought forward new incentives for Canadians to save for retirement, including pension income splitting for seniors, pooled registered pension plans, and tax-free savings accounts, and launched consultations on a new target benefit pension plan.

Since 2008, about $2.8 billion in annual tax relief has been provided to seniors and pensioners, including increasing the age credit, the pension income credit—

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

Okay, that will have to do it.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

—increasing the age of—

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

Order. We are moving on to the next question.

The hon. member for Kings—Hants.