House of Commons Hansard #86 of the 41st Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was chair.

Topics

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

10:50 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, as I was saying, we have taken a number of steps to reduce the tax compliance burden for Canadian businesses.

We are amending the Canada-Ontario tax collection agreement to provide for federal administration of Ontario's corporate taxes and implementing administrative and service improvements by the Canada Revenue Agency.

We have made tangible progress in implementing the red tape reduction action plan, including the one-for-one rule. We have already saved Canadian businesses 98,000 hours in time spent dealing with red tape.

We have frozen EI premiums for three years.

We have fostered an innovative economy by providing more than $11 billion in new resources to support basic and applied research talent development, research infrastructure, and innovative ideas.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

10:50 p.m.

Conservative

Dave Van Kesteren Conservative Chatham-Kent—Essex, ON

Mr. Chair, we have heard today about our government's outstanding record of achievement with respect to creating jobs and economic growth. I would like to dedicate my time in exploring in more detail how we are building on these results by helping to connect Canadians with available jobs.

Despite our excellent employment performance, our government is constantly looking for ways to make it better. We find it unacceptable that many Canadians are still out of work, or underutilized, at a time when skills and labour shortages are emerging in certain sectors and regions.

As long as there are Canadians looking for work, we as a government cannot sit on our laurels and must take action. Indeed, many employers agree with us and continue to identify the shortage of skilled labour as an impediment to growth. In fact, the Canadian Chamber of Commerce list skills and shortages as the number one barrier to Canada's competitiveness.

Faced with this challenge, we have taken effective and concrete action to support the development of a skilled, mobile and productive workforce.

In the last fiscal year, 2013-14 alone, our government has transferred $2.7 billion to support labour market programming with $1.95 billion to provinces and territories, through labour market development agreements; $500 million to provinces and territories through labour market agreements included in budget 2007; and $218 million to provinces through labour market agreements for persons with disabilities.

What is more, we are investing over $10 billion annually in support of post-secondary education, which includes providing students with financial assistance through Canada student loans and Canada student grants, and specific programming targeted to first nations and Inuit students.

Since 2006, our Conservative government has provided support for skills training for youth through the youth employment strategy, with investments of over $340 million per year.

On the other end of the spectrum, our government has also taken action to support the labour market participation of older Canadians who wish to remain in the workforce. Budget 2011 extended the targeted initiative for older workers, a federal-provincial-territorial employment programs, providing assistance and offering activities to provide the employability of unemployed workers aged 55 and over.

Finally, we are supporting opportunities for aboriginal peoples through annual investments of $438 million, including support for post-secondary education, as well as project-specific training that responds to the demands of the Canadian labour market.

These are all important measures, but the real game change in our efforts to connect Canadians with available jobs has to be the introduction of a Canada jobs grant. By ensuring that federal funding responds to the higher needs of employers and by giving them the opportunity to participate meaningfully as partners in skills training, this initiative is transforming skills training in Canada.

The Canada jobs grant could provide up to $15,000 per person for training costs, including tuition and training material, which include up to $10,000 in federal contribution with employers contributing on average one-third of the cost of the training.

After consulting extensively with employers and provinces on the design of the grant, Canadians will be able to take advantage of it by July 1, offering them real support toward improved employment and earning prospects.

As important as this milestone is, economic action plan 2014 went one step further by creating the Canada apprentice loan to help registered apprentices with the costs of their training. It will do so by expanding the Canada student loans program to provide apprentices registered in Red Seal trades with access to over $100 million in interest-free loans each year.

Economic action plant 2014 also introduces the flexibility and innovation in the apprenticeship technical training pilot project to expand the use of innovation approaches to apprentice technical training.

With this initiative, we are continuing to work with provinces and territories to harmonize apprenticeship systems and reduce barriers to certification in the skilled trades, so apprentices can more easily work and train where the jobs are.

To further support apprentices, economic action plan 2014 takes steps to increase awareness of the existing financial supports available to apprentices through the employment insurance program while they are technical training.

It also announced that our Conservative government would improve the youth employment strategy to align it with evolving realities of the job market, and to ensure federal investments in youth employment would provide young Canadians with real life work experience in high-demand fields, such as science, technology, engineering, mathematics and the skilled trades.

Although Canada boasts high levels of post-secondary achievement, the transition to a first job can be challenging. This is why economic action plan 2014 also dedicates $40 million toward the supporting of up to 3,000 apprenticeships across the country in these high-demand fields.

The Prime Minister Harper recently announced the details of the initiative at Fanshawe College, a great institute near my riding of Chatham-Kent—Essex. Lasting between 6 and 12 months, these internships will give the participants the opportunity to gain the real life work experience and skills necessary to succeed in the workplace now and in the future.

To facilitate the linkages between the small and medium-sized employers and youth, we are reallocating $15 million annually within the youth employment strategy to support up to 1,000 full-time internships for recent post-secondary graduates and small and medium-sized enterprises.

Last but not least, economic action plan 2014 will invest $11.8 million over two years and $3.3 million per year ongoing to launch an enhanced job matching service to ensure Canadians are given the first chance at available jobs that match their skills in the local area.

The enhanced job match service will provide job seekers with modern and reliable tools to find jobs that match their skills and provide employers with better tools to look for qualified Canadians. Through a secure authenticated process, registered job seekers and employers will be automatically matched on the basis of skills, knowledge and experience.

Before I conclude, I would like to address one issue that is a concern to our government and all Canadians, and that is the abuse of the temporary foreign worker program. This is something we cannot tolerate, and any allegations of abuse of the program will be vigorously investigated.

Our message to employers is clear and unequivocal: Canadians must always be first in line for available jobs. As we announced in economic action plan 2014, our government will continue to pursue significant reforms to the temporary foreign worker program to ensure that employers make greater efforts to recruit and train Canadians, and that it is only used as a last and limited resort when Canadians are not available.

These are just some of the central initiatives that will continue to drive our government's jobs and growth agenda, and connect Canadians with available jobs.

I am proud of this record, and would like to thank the hon. members for offering the opportunity to discuss it today. By helping Canadians acquire the skills that will get them hired or help them get better jobs, we are investing directly and effectively in our country's greatest asset, our people. The return on this investment is not just helping individuals, but also supporting their families, communities and our whole community.

Would the Minister of Finance take some time to tell the House what concrete action the government is taking to help connect Canadians with available jobs?

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, while many sectors of the economy and regions of the country have skilled job shortages, too many people remain unemployed. Many employers continue to identify the shortage of skilled labour as an impediment to growth. To overcome this challenge, our economic action plan 2013 announced the reform of the three major labour market transfers to provinces and territories in order to transform support for skills training and help to ensure that federal funding responds to the hiring needs of employers. We have made significant progress toward meeting this goal.

First, the core labour market agreements are being reformed with the introduction of the Canada job grant. They are accordingly being renamed the Canada job fund. This will encourage greater employer participation in skills training decisions and ensure that training is better aligned with job opportunities, particularly in sectors facing skills mismatches and labour shortages.

Agreements in principle have been reached with all provinces and territories on the delivery of the Canada jobs grant, which is expected to be available to Canadian employers by July 1 of this year. Including employers' contributions, the grant could provide up to $15,000 per person toward training costs for a new or better job.

Second, the longstanding labour market agreements for persons with disabilities are being reformed to ensure federal funding supports programing that better helps Canadians with disabilities to obtain the skills they need to fill available jobs. These new agreements will require all jurisdictions to set up a formal process to engage employers and disability community organizers in identifying key labour market barriers and opportunities for persons with disabilities and set corresponding priorities for programing. This will not only support better employment prospects for persons with disabilities, but it will also better meet the employment needs of businesses.

We are also working to reform the $1.95 billion a year labour market development agreements with all provinces and territories to reorient training toward labour market demand, as we have with the other federal labour market transfers. Taken together, these renewed labour market agreements will be fundamental in helping to better connect Canadians with available jobs and advance our record of achievement in creating jobs and growth.

We are also taking significant action to that end outside the agreements. For example, our government is creating the Canada apprentice loan to help registered apprentices with the cost of their training. We will also improve the employment insurance system to ensure those on EI will receive more up-to-date information. We are also investing in an enhanced job matching service to ensure that Canadians are given the first chance at available jobs that match their skills in their local area. We are reforming the temporary foreign worker program to ensure that Canadians get the first crack at available jobs and employers hiring temporary foreign workers have a plan to transition to the Canadian workforce.

These are important areas where our Conservative government is making real progress in helping connect Canadians with available jobs, while advancing our record of achievement in supporting jobs and growth. So while the opposition continues to vote against every one of these job creating measures, our government will stay the course and focus on what matters to Canadians.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:05 p.m.

Conservative

Dave Van Kesteren Conservative Chatham-Kent—Essex, ON

Mr. Chair, I wonder if I could possibly give the minister a break and switch over to the Minister of State for Finance.

There has been a lot of talk about the increase of premiums on CPP. I wonder if he could tell the House why that is a bad idea and why it is something that businesses cannot afford at this time.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:05 p.m.

Conservative

Kevin Sorenson Conservative Crowfoot, AB

Mr. Chair, again, we have said that this government does not believe now is the time to increase contribution levels on CPP. As we have travelled around the country, Canadians have not asked for increased payroll taxes. In fact, Canadians have said they believe it is important that they keep more money in their pockets. We believe that Canadians cannot afford higher payroll taxes. The economy still being in a fragile recovery, now is not the time to consider it.

We have very strong pension and retirement security programs here in Canada. We have brought forward measures like pension income splitting and pooled registered pension plans for the 60% of Canadians who do not have a workplace pension plan. We brought forward the tax-free savings account, so that Canadians can save more for their retirement. We are pleased to say that now more than nine million Canadians have invested in the tax-free savings accounts.

We have also done other things to help with pensions. We have brought forward consultations on a new target benefit plan, and we are excited about the possibility of new plans even tomorrow.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:05 p.m.

Conservative

The Assistant Deputy Chair Conservative Bruce Stanton

That will finish that round.

Now we will go to the NDP and the hon. member for Victoria.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:05 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Chair, I would like to ask the Minister of Finance, what is the estimated total annual revenue lost to the underground economy?

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, I do not have a direct answer to that question, but we can provide an estimate for the hon. member if he would like.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Chair, the CRA website claims it is $35 billion and after a three-year effort, there is no national strategy to combat the underground economy.

As of the most recent publicly available assessment in 2012, what is the outstanding balance in undisputed unpaid taxes?

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, this is the second question in a row that should be directed at the CRA. Either the member already has it or he can get that information from speaking to the CRA directly.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Chair, the finance minister would know about unpaid taxes, but the answer the Auditor General reports is $29 billion as of March 31.

How much Canadian money was estimated to be held in offshore tax havens as of 2013?

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, the government has taken a number of initiatives to address international tax evasion and aggressive tax avoidance, and we take those matters very seriously. Since 2006, the government has introduced over 85 measures to improve the integrity of the tax system and by closing tax loopholes, strengthening tax compliance, and combatting international tax evasion our government is working to ensure that everyone pays their fair share of taxes.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Chair, either the minister cannot say or will not say, but the answer, according to Statistics Canada, is that Canadian money stashed in 10 offshore tax havens hit $170 billion last year.

What is the estimated total amount of Canadian tax revenue lost to offshore tax havens every year?

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, I think the member opposite is confusing a number of issues, but the offshore tax gap generally refers to federal income taxes that are not collected because of the under-reporting of foreign source investment income by Canadian individuals. By its very nature, international tax evasion is difficult to quantify since it involves people or entities deliberately and aggressively hiding money from the authorities. Estimating income from deliberately hidden or secret offshore investments is extremely difficult. Apparently, the member opposite has information that most of us do not have.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Chair, the number, of course, is between $5 billion and $7.8 billion lost annually.

Will the minister follow through on the 2011 platform commitment to double the annual TFSA contribution room in the next budget?

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, the next budget will contain the measures, which it does. In the meantime, we will be undergoing analysis and consulting with Canadians across the country.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Chair, that was a 2011 platform commitment.

The Auditor General noted in 2012 that Finance Canada has projected the mushrooming fiscal impact of TFSAs out to the year 2050. What is the projected cost to 2050?

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:10 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, I am very proud of the tax-free savings account, which has provided an opportunity for millions of Canadians to shelter income from taxes. This is a very popular program. Over nine million Canadians are participating, it is very broad based, the numbers are increasing, and this is a very positive thing for those who believe, first and foremost, that individuals should keep their own money rather than give it to the government. Those who believe by default any money earned is the government's, of course, will not be happy with this program.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:15 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Chair, in December 2012, the Department of Finance refused to give the Parliamentary Budget Officer access to that information to calculate that figure himself. Will the minister reverse the decision and share the data, as the PBO has asked?

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:15 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, this is, of course, a measure the party of the member opposite voted against.

It is an extraordinarily popular measure. I do not know whether it would be the NDP's policy to actually stop this program. It would be interesting to hear from the member opposite whether the members of the NDP believe that the tax-free savings account program should be stopped. I would like to hear his answer. Yes or no.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:15 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Chair, I asked whether the minister would reverse a decision by his department to give the Parliamentary Budget Office what it wanted to measure the impact, and apparently the answer is, I do not know.

Because money from a TFSA does not count as income for the purposes of OAS or guaranteed income supplement, wealthy individuals could qualify for these income-tested benefits. What is the projected cost to the old age security program due to the tax-free savings account up to 2050?

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:15 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, as the member opposite knows, the old age security and guaranteed income supplement go to less advantaged people. In total, the two combined provide $40 billion a year in benefits over five million beneficiaries and combined benefits of up to $15,600 per year or a little over $25,000 per year for couples.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:15 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Chair, the answer to the question is that it will reach an extra $4.2 billion a year, according to the chief actuary.

Has the minister considered capping the total lifetime contributions an individual could make to TFSAs?

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:15 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, I understand that a party that voted against this wildly popular tax saving measure, which would provide security for Canadians in their retirement, is one the NDP would like to see capped, but that is not the decision of our government.

Finance—Main Estimates 2014-15Business of SupplyGovernment Orders

11:15 p.m.

NDP

Murray Rankin NDP Victoria, BC

Mr. Chair, how much will the Conservative cuts to old age security cost Canadian seniors by 2030, given the increase in the eligibility age from 65 to 67?