Debates of Jan. 27th, 2015

Opposition Motion—The Economy

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I thank my colleague for her speech, which focused on her constituents.

In my speech, I talked about the Bank of Canada monetary policy report. It indicated that the participation rate of workers between 24 and 54, the largest and most active age group on the labour market, fell sharply in 2014. In fact, everything in the report indicates that the labour market is becoming increasingly unstable. I agree with my colleague that people are concerned and, contrary to what it claims, the Conservative government is not responding to those concerns whatsoever. This is a critical situation.

I would like my colleague to comment on the facts established by the Governor of the Bank of Canada, facts that the government refuses to acknowledge, as we have heard in the debates since this morning.

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, I want to thank my hard-working colleague for the work he does back in his riding. I would bet that other MPs from coast to coast were hearing the same kind of concerns and questions back in their ridings that I heard in my riding.

I am really glad that my colleague asked me this question because it reminds me of something from the previous two weeks. Through an ATIP request, I had a response from the government. The response was that the government knew exactly that what jobs that youth usually access were being filled by temporary foreign workers, yet we had the minister in the House acting really surprised when the CBC shone the light on the McDonald's in Victoria.

I think we have to take a look at the kind of policies we have had with the expansion of the temporary foreign worker program and, of course, the decimation of our training and apprenticeship programs. We need to start looking at growing decent-paying jobs right here in Canada. We need to diversify our economies. We have to start looking at investments in clean energy. We have prime examples around the world right now showing that these lead to more and better-paying jobs than we have right now. That is why we need this fiscal update, and in that fiscal update the current government needs to come to us with a plan.

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, I am pleased to rise to speak, especially when it comes to the economy. I think this is a major issue, and it is important to question what the Conservatives are doing.

When the economy is doing well, then it is thanks to their good management. When it is not doing so well, then it is because of international factors beyond their control. In my opinion, this is not a responsible government, and it has become patently clear that the Conservatives are not willing to take responsibility.

The NDP is ready to make good decisions and accept our responsibilities. It is easy to blame others, but if we want to correct the situation then we have to make choices and be transparent about it. That is the best way to show respect for the Canadian public.

The Liberals' and Conservatives' choices have made Canada an economic giant with feet of clay. They have reduced our ability to adapt when times are tough, what with our increasingly mono-industrial economy largely based on the energy and oil sector.

I would like to take a moment to provide a bit of background on natural resource development in Canada.

At first, the economy was based mainly on agriculture and forestry. Then development shifted from the farms and forests to Canada's underground resources. The importance of metals and minerals increased over time with the evolution of technology, which was mainly spurred by the introduction of hydroelectricity and improved railways, roads and infrastructure.

Furthermore, improvements in mining machinery and drilling techniques led to greater knowledge of mineral deposits, improved access to minerals and lower transportation costs.

Between 1886 and 1947, agriculture was joined by forestry, then mining and finally energy. With the exception of the early appearance of the oil industry in Oil Springs, Ontario, oil was not a major component of energy production in Canada until 1947, the year oil was discovered in Leduc, Alberta.

After the 1973 oil price shock, the production of conventional energy sources increased and technological innovation led to the development of Canada's oil sands.

When we look at the evolution of resource development as a percentage of Canadian production, we can see that the sectors were balanced from the late 1960s to the mid-1970s. We then saw an imbalance in energy sector compared to the other economic sectors in the 1980s and in the 1990s under the liberal government. This imbalance consolidated Canada's economic dependence on oil, which we has become clear over the past 10 years under the Conservatives.

Now, the oil and gas industry is concentrated in Alberta and Saskatchewan. However, offshore production also plays an important role in Newfoundland and Labrador's economy.

Although the importance of energy products has soared over the past 40 years, Canada's economic history has been shaped by the wealth of all of our resources. Energy is the latest example of the major dependence Canada has developed in a global, integrated economy.

Although natural resources financed Canada's development for generations, all of our eggs are now in the energy sector basket, which confirms what the Leader of the Opposition said in 2012.

In 2014, when the price of crude oil reached a high of around $114 U.S. a barrel and a low of $55 U.S., Canada's exchange rate fluctuated from more than 91¢ U.S. to approximately 86¢. Yesterday's rate was 81¢ U.S., as it was 10 years ago when the Conservatives came to power.

In light of the background I just shared, I think it is important to understand a few things.

The current drop in the price of oil is closely linked to the fact that there is more supply from other countries, such as Saudi Arabia.

That is what has led to lower prices. It should be remembered, however, that there has also been a reduction in demand, because a number of countries have elected to move towards a greener economy and reduce their dependence on oil. The reduction in demand is going to continue.

If there have been major changes in our business to reduce our energy requirements and the cost of energy falls, we are not going to revert to what we have just changed. That is obvious. Countries are therefore going to continue to move towards a greener economy, because the price of oil fluctuates widely and makes budget planning difficult for many businesses and economies around the world. Demand will therefore continue to fall.

Even when oil prices are high again, there is no certainty that demand will be what it once was. It is therefore very important to diversify our economy, not just when the going is tough, but also when things are going well. We have to plan appropriately when things are going well in order to cope with adversity. Unfortunately, the Conservatives did not do so, and we are therefore in a critical situation. It is essential for people to have an idea of exact prices and of the general situation. That is why we introduced this motion.

The Conservative government said that we had to encourage the manufacturing industry to take up the slack and stimulate the economy. Unfortunately, one of the problems caused by the drop in the price of oil is a drop in the Canadian dollar. At the present time, manufacturing businesses are already at the limit of their productivity. If they want to buy equipment to improve their productivity, which they have not done previously, they have to pay for it in U.S. dollars. They are therefore losing 20%, as compared with when the U.S. dollar was roughly at par with the Canadian dollar.

Manufacturing firms will have to pay 20% more to buy equipment, which is in most cases purchased outside Canada and thus priced in U.S. dollars. Even if we rely on manufacturing firms to stimulate the Canadian economy, there is an additional challenge, because the situation in which they have been placed means that they no longer have the same buying power to increase their productivity. In short, we are in a bind, and our freedom of action is limited.

To conclude, if we want a reliable economic plan for the future, we have to understand that it must be based on a green, prosperous and sustainable economy. Greener and more sustainable energy choices must be made, and the opportunity must be made available on a worldwide scale. The more green energy opportunities are made available, the more people will be able to do business. When our economy is based on oil, it becomes unstable and unpredictable, because the price of oil fluctuates. World economies are going to endeavour increasingly to eliminate at least a portion of their dependence on oil in order to move towards more reliable energy sources. That should be one of the priorities for the Canadian economy.

Forward-looking measures must be taken to support the middle class and prevent it from being subjected to the adverse consequences of Conservative mismanagement. Canadian companies must be supported in their efforts to improve production capacity, even at times when things are going well. This was not done when the Canadian and U.S. dollars were roughly at par. If investment had been stimulated when it cost much less for companies to acquire new technology, thanks to the strength of our dollar, they would now have the ability to increase their productivity and cope with the current situation.

We must also support economic diversification, particularly with regard to natural resources. We should avoid focusing only on the sector that is doing well, neglecting the others and finding ourselves, as we do now, with an oil patch that is not doing well and other sectors that have been so underfunded and given so little support that they are hard pressed to take up the slack.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, to be very clear, it is a fundamental responsibility of the federal government to instill a sense of confidence in the economy. There is absolutely no question about that.

We have fluctuating oil prices, and that in part seems to be the driving decision factor for the government, for the Minister of Finance and the Prime Minister, in indefinitely delaying the introduction of a budget. This provides a great of discomfort and uncertainty about Ottawa and our economy. There is a sense that the government is missing the boat by not coming forward and stating when the budget is coming down in a timely fashion.

Could the member tell us how important it was for the government to have come to this House and indicated when the budget was to be presented, and to do so in a timely fashion?

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, I wish to point out that from the beginning, with the Liberal government in the 1990s, economic choices were made that painted our economy into a corner, so to speak. There was a refusal to diversify proportionally and to acknowledge that there could be negative consequences if we moved towards an economy based essentially on oil.

When succeeding governments make choices that are not sensible or diversified, that creates uncertainty. Any economist can see that if there is a problem one day, we will face adversity and will not be ready to deal with it. It is obvious now that the government must be very clear about the situation we find ourselves in. It should present an economic update, and clarify when the budget will be tabled, in order to reduce uncertainty. I wish to point out, however, that this uncertainty has been building up over the years.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I thank my colleague from Abitibi—Témiscamingue for her speech. She talked about increasing productivity and our ability to take advantage of lower energy costs, and the Bank of Canada report reflects that too. It is very clear to me that businesses do not have enough confidence to hire people for the long term in order to benefit from improved export conditions.

The Bank of Canada stated very clearly that long-term unemployment is still near its post-crisis peak. It has been five years; that is a long time. That hints at how business people are feeling and the fact that they are not ready to invest in human capital or in upgrading their equipment to take advantage of the economic recovery. Very clearly, that is because of the decisions made by this government, which put all of its eggs in the oil basket instead of supporting diversity in our economy as a way of preparing for the kind of transition we are seeing now. I would like my colleague to talk about this long-term unemployment problem and the fact that people are being shut out of economic opportunities.

[Christine Moore, NDP, Abitibi—Témiscamingue, QC]

Mr. Speaker, my colleague raised an issue that I talked about in my speech. When things were going well, they failed to plan. When the dollar was high, that was the right time to buy more equipment so that when the time was right, companies could boost productivity and hire people to help with that. That lack of planning has resulted in uncertainty, and companies do not feel confident about hiring more workers and acquiring more equipment. Those things come at a hefty price, and there is no guarantee that those costs can be recovered in the current economic context. This is a very difficult situation, and we are in it because the government failed to plan strategically.

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

Mr. Speaker, it is my pleasure to take part in this debate on this topic today.

At the outset, I want to inform you that I will be splitting my time with the member of Parliament for Yukon. I am very much looking forward to his remarks today.

I appreciate this opportunity to discuss the government's top priority, which is one shared by all Canadians: creating jobs, growth, and long-term prosperity; securing Canada's economic future; and continuing to make Canada the best place in the world to live, work, raise children, invest, and achieve all of our dreams.

Since taking office in 2006, the government has taken decisive action to secure Canada's future. We have done this in the face of the worst economic downturn since the Great Depression. This great recession annihilated $10 trillion in global market value worldwide. It cost 62 million jobs globally, a damage that was so harsh that it is difficult to clearly see each and every life behind the statistics. For millions around the world, the recession meant destroyed livelihoods and destroyed stability. The devastating nature of this first economic crisis of the 21st century cannot be overstated. Many around the world still feel that today. Whether it is slow growth in China and India or a stalled recovery in the eurozone, where I was last week, many of our partners and friends around the world are still suffering.

This crisis did not start in Canada, but it occurred later in this country and affected us much later than it did other countries. We emerged earlier than other countries, but it did certainly hit us and it hit us very hard. The government responded. It launched Canada's economic action plan, a low-tax plan for jobs and growth, which came in stages. In the worst of the crisis, we launched a timely and targeted stimulus package to jump-start economic activity and create jobs through investing in infrastructure and in research and development and protect jobs through such initiatives as the work-sharing program through various companies across the country.

Then, as the worst of the crisis passed and even at the beginning, Jim Flaherty, the finance minister at the time, established a medium-term plan to bring the government back to balanced budgets. Even at that time, way back in January 2009, we set out on a clear path to move back to balanced budgets over the medium term.

That plan is working. The plan established back then was to move to balanced budgets over time, but at the same time as doing that it was to protect key transfers to the provinces for health care, education, and social services. Since this government has taken office in 2006, health care transfers to the provinces have increased 6% year over year. Transfers for education and social services have increased 3% year over year and will continue to do so. At the same time, we protected family benefits and protected and enhanced seniors' benefits with the largest single increase in the guaranteed income supplement that has occurred in Canada's history.

The government looked at about $70 billion of discretionary spending and asked departments to come forward with 5% to 10% cost-saving efficiencies within those departments to move the government back to a balanced budget over the medium term.

My proposition is that this is working, despite the fact that oil prices have fallen dramatically this year from a high of about $100 per barrel, if we look at West Texas Intermediate, to about $46 per barrel. The Minister of Finance and the government have been explicitly clear that, taking this into consideration, they will balance the budget this year.

Balanced budgets are empowering. They empower the country as a whole. They have a huge impact on the branding of the country. When I was in the U.K. last week, there were parliamentarians from across the political aisle coming forward who were impressed by how Canada has done in terms of economic performance and also its fiscal plan in terms of getting back to a balanced budget. Therefore, balanced budgets not only empower Canada as a nation but also empower governments with the fiscal room to provide much-needed tax relief and spending in critical areas that serve to enhance our jobs, growth, and productivity. They also empower us to make targeted investments in things that will ensure that this prosperity continues.

With respect to tax relief, the Conservative government has reduced taxes to the point where the overall federal tax burden is now the lowest it has been in more than 50 years. Not since John Diefenbaker was the prime minister of this great country have Canadians paid so little tax to Ottawa. We have provided tax relief over 180 times since taking office, which means more money in the pockets of individuals, of Canadian families, and of businesses to invest in their future.

I would like to review some of those tax measures. One of the first measures was reducing the goods and services tax from 7% to 5%. Another was increasing the amount of income that all Canadians could earn without paying federal income tax. This removed approximately 1 million Canadians from the tax rolls entirely. Another measure was increasing the upper limit of the two lowest personal income tax brackets so that individuals could earn more income before being subject to higher tax rates. A further measure was reducing the lowest personal income tax rate to 15% from 16%.

I would say that this measure was the biggest change in personal taxation since the introduction of the RSP: introducing the tax-free savings account. I understand that nearly 10 million Canadians have now opened a tax-free savings account, which helps Canadians save for their futures by earning tax-free investment income.

In the fall of 2006, the government introduced pension income splitting for seniors. Having talked to seniors in my riding, I can tell members that many of them have come to me to say that this one measure has enhanced their futures and livelihoods more than any other measure that they have seen in their lifetime.

Building on that success, which is very much linked to the philosophy of allowing seniors to split their income, is what we did recently. Conservatives were very proud to provide targeted tax relief for hard-working Canadian families. It is tax relief that will benefit every single family with children. That includes introducing the family tax cut, introducing and expanding the universal child care benefit, and increasing the child care expense deduction dollar limits.

In addition to this, we also reduced taxes on businesses so that they could create more jobs. This ambitious agenda aims to build a competitive tax system that fuels job creation, grows the economy, and lets Canadians keep more of what they earn.

We have cut taxes not only for businesses above the higher rate but also for small business owners. As we know, they are the prime generators of jobs in the country. We want entrepreneurs to create good jobs at home. We want them to be more competitive both at home and abroad, and that is why we have embarked upon a very ambitious program through the Minister of International Trade to sign a record number of trade agreements and work on market access in those countries where we do not have formal trade agreements.

I will just return to some of the business tax measures. The plan reduced the federal corporate income tax rate from over 22% in 2007 to just 15% today. Combining that with the provinces' rates, which vary, the intention was to brand Canada as a 25% tax jurisdiction across the country for businesses.

If we look at small businesses, which I mentioned earlier, the rate was reduced from 12% to 11%. At the same time, the amount of the money that small businesses could earn was raised from $300,000 to $500,000, which is an increase as well.

This is important for other parties to realize. They say that large businesses pay that 15% corporate tax rate, but that is for any business where the income is above $500,000. In the upcoming election campaign and debate over the budget, other parties will have to defend themselves if they are willing to raise that rate above the $500,000. That would impact an awful lot of middle-class businesses.

If we look at Canada's tax competitiveness and overall business environment, we see we have made major gains. In fact, today, Canada stands as having the lowest overall tax rate on new business investment in the G7.

At the same time, I would like to emphasize something that some of the previous speakers mentioned about the government's support for the manufacturing sector. Every single budget has mentioned the importance of Canada's manufacturing sector. Going back to the 2007 period, when I was the chair of the industry committee, we prepared a unanimous report on the manufacturing sector and tabled it in February 2007. The government acted very quickly on that in the March 2007 budget by introducing accelerated capital cost allowance changes for that sector. It introduced a two-year timeline writeoff for investing in new machinery and equipment. Canadian Manufacturers and Exporters and well respected individuals like Jay Myers have pointed out that it has been crucial in allowing businesses in that sector to invest, reinvest, and weather through this very tough economic period, and to come through it in a much stronger position than they would have otherwise.

We want to marry that as well with investments in the automotive sector, something that has been very strong.

I see that I have only 30 seconds left. I will just wrap up and say that the government has had a long-term plan. It did an economic fiscal update in mid-November. It will present its budget this spring. The government will continue with this plan to move to a balanced budget, continue to invest in key sectors, continue to protect transfers to provinces, and continue to build on this low-tax plan, which is generating millions of jobs for Canadians.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I have a question for my colleague.

I read a number of articles this morning. The Canadian Association of Oilwell Drilling Contractors published a report last week saying that with the price of gas these days, more than 23,000 jobs will be lost in the coming months wherever oil is extracted—mostly in Alberta, but also in the Atlantic provinces. The Parliamentary Budget Officer said today that, unfortunately, the government cannot hide from this and will have to run a deficit.

I would like to know what my colleague's plan is for the 23,000 jobs that the Canadian Association of Oilwell Drilling Contractors says we are going to lose. Unfortunately, try as they might to hide from this for as long as possible, the Conservatives will have to declare a deficit, perhaps in April or May. What is their plan? They say that the Liberals and the NDP criticize the government and that they are on the same page on this, but what are the Conservatives going to do for the people who are going to lose their jobs in the coming months? What are they going to do about the deficit they will be forced to declare in the coming months?

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

I find it astonishing, Mr. Speaker, that New Democrats are standing in the House of Commons and starting to actually defend the oil industry. It is astonishing that they are now the protectors of this great energy industry in this country.

The fact of the matter is that we have seen a decline in world oil prices. Canada does not determine world oil prices. The oil prices are obviously determined outside of this country. Canada is, in fact, a price taker on this measure. However, no government has done more to invest, whether it is investing in job-creation measures through lowering taxes, investing in research and development, or investing in true labour training initiatives to ensure that companies are as competitive as possible.

Since the depth of the recession in July 2009, the economy has created more than one million jobs. We have a very good job-creation record. When compared with the OECD, the G7, or any other international partners, this is a very good record.

With respect to the Parliamentary Budget Office report, I would respectfully disagree with my colleague. I actually read the report, and that is not what the report said. The report said that the government is within its framework in terms of balancing its budget going forward. Obviously, something like a decline in oil prices from $100 per barrel down to $46 per barrel was unforeseen. In the finance committee last fall, there was not one witness I can recall who said this is going to be where oil prices are in January of 2015. That was not the case. This was unforeseen. This is exactly why governments have contingency reserves in their budgets, and this in fact follows the long-term medium plan the government has had with respect to continuing to invest and create jobs and at the same time returning to a balanced budget in the medium term.

[Adam Vaughan, Liberal, Trinity—Spadina, ON]

Mr. Speaker, the presentation was interesting and just as the member was getting to the part about the auto sector, much like the government's policy, the statement ended.

I am curious. The government opposite has said that the auto sector is strong, and yet in southern Ontario 50% of the jobs that were in the auto sector when the government took power disappeared through the recession. There has been a lack of strategy and a lack of emphasis on strategic and advanced manufacturing, and in fact, auto workers and auto plants are disappearing in southern Ontario. They have not recovered.

My questions are very simple. What is the strategy, why has the strategy failed, what are Conservatives going to do differently as they prepare for the budget, and why will they not come to the House with a strategy?

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

Mr. Speaker, the strategy can be found in any budget document. Budget 2013 had a very expansive strategy with respect to the manufacturing sector. In fact, going back to 2007, the number one request of the manufacturing sector was to change the rate at which it invests in its own machinery and equipment. That was number one.

[Adam Vaughan, Liberal, Trinity—Spadina, ON]

No, transportation infrastructure, border crossings, rail.

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

Mr. Speaker, if he wants to review the hearings at the industry committee, he is welcome to do so. He can also talk to Jayson Myers, who is head of the Canadian Manufacturers and Exporters. This was its number one request.

The government did this in budget 2007 and has, in fact, extended this every single two-year period. Besides that, the government has invested in the automotive innovation fund and research and development in the automotive sector. The government has partnered with companies like General Motors and Chrysler in terms of investing in plants. The government has partnered with Ford in terms of investing in its plant in Oakville. The government has partnered with auto parts manufacturers in the recent announcement that the transport minister made in January 2015. There is an automotive sector that is working for Canada, and the hon. member should get behind it and support it.

[Ryan Leef, Conservative, Yukon, YT]

Mr. Speaker, it is a pleasure to rise in the House to speak to the opposition day motion. Contrary to what the hon. member who brought this motion forward may claim in the House of Commons, our Conservative government has an outstanding record on job creation and economic growth.

Canadians elected our government with clear instructions in 2011: navigate the global economy, create jobs and economic growth, and keep taxes low. I am pleased to tell the House that this is exactly what our government has done. Promise made; promise kept. Since we have been elected, we have had the strongest economic growth of any country in the G7. We have created over 1.2 million net new jobs, 82% of which are full-time, and 84% of those have been in the private sector and 66% have been in high-wage industries. That is an outstanding record, and we are going to continue on that track.

Bloomberg ranks Canada as the second best country in the world in which to do business. The IMF and the OECD both project that Canada will be among those with the strongest growth in the G7 for years ahead.

This success, of course, does not come easily. Canada has faced challenging times and continues to face a very fragile global economy, but we have made the right decisions for Canadian businesses, families, and communities. The results of those decisions are clear: debt is low and deficits are falling. We have half the debt, on average, in relation to our GDP, of the G7 countries. We are on track to balance the federal budget in 2015.

We promised Canadians that we would return to a balanced budget, because it is important for Canadians, and it is important for our economy. It means more funding will be available for important programs and services Canadians rely on and it means not paying more interest on debt. It will protect our credit standing, and it will protect Canadians from international shocks, just as we are doing right now. It is fair to our children and our grandchildren by not burdening them with debt to pay for our expenditures.

It is unfortunate the the Liberal leader does not understand these basic financial principles. When he was asked about balancing the multibillion federal budget, his response was that somehow it would magically balance itself. While the Liberal leader may have never had to balance his own budgets, ordinary families know what it takes, and so does this government. It takes discipline. It takes a focus on priorities, and it takes sound judgment.

The Canadian Council of Chief Executives noted how important it is to balance the budget. It said: “Balancing the federal budget and maintaining discipline to pay down the debt are not only the right things to do, they are essential for Canada's global competitiveness”.

The Canadian Federation of Independent Business stated: “Small business owners know that today's deficits are tomorrow's taxes, so they are pleased that the government's commitment to a balanced budget in 2015 remains solid”.

Not only are we on track to a balanced budget, but we have done it while keeping taxes low. Year after year we have lowered taxes, not just for businesses but for families and all Canadians. We have cut taxes in every way government can collect them: personal, consumption, business, excise taxes, and more.

We have reduced the small business tax rate from 12% to 11%. We introduced pension income splitting and cut the GST from 7% to 5%. We established the landmark tax-free savings account, and over 10 million Canadians have opened accounts allowing them to save tax free. We also increased the amount Canadians can earn tax free.

Our government took action to remove over $1 million low-income Canadians, including approximately 380,000 seniors, from the tax rolls completely. Under the leadership of our Prime Minister, the federal tax burden is now at its lowest in over 50 years. Our low-tax plan has helped to ensure that Canadian families in all income groups have experienced increases of about 10% in their take-home pay. The lowest income families have seen a 14% increase.

Tax freedom day is over two weeks earlier under our government than it was under the tax-and-spend Liberals.

Statistics Canada has also confirmed that families are better off today under our Conservative government than they were under previous Liberal governments. Stats Canada found that the median net worth of Canadian families has increased by 45% since we took office.

Building on our strong record, recently we introduced the family tax cut and benefits package that will help each and every Canadian family with children in our country. These families will benefit by an average of $1,100 a year, and the majority of benefits will flow to low- and middle-income families. We are pleased to be delivering those benefits, because we know that it is not the government's money. That money belongs to hard-working Canadian families, like many in my riding.

With the enhancement of the universal child care benefit, moms and dads in Yukon and across this country will receive nearly $2,000 for every child under the age of six and an additional $720 a year for every child between the ages of six and seventeen.

Yukon's premier, Darrell Pasloski, stated that the Yukon government applauds initiatives that allow families to keep more money in their pockets, which is good for its economy. The creation of the family tax cut credit and enhancements to the universal child care benefit and caregiver deductions will directly benefit Yukon families.

The Canadian Taxpayers Federation also applauded our new tax measures for families. CTF federal director Aaron Wudrick stated, “Putting more money back in the pockets of Canadian families is a positive development”. How could it not be?

We will honour our promise to Canadian families by putting more money back in their pockets, but both the NDP and the Liberal Party would do the exact opposite. Instead, they want to cancel those tax breaks and benefits and drive our economy into a deficit with their massive bureaucratic spending schemes. Picking the pockets of hard-working Canadians to put more money in the hands of Ottawa bureaucrats and piling debt onto our children is their plan. We will not take that well-trod path to economic decline.

I would like to highlight that as the finance minister has stated, our government will provide an economic update. That will be when we present the federal budget. Though the opposition may panic and call for risky deficit spending, we know that we have to continue to stay the course with our low tax plan, the same plan that successfully steered Canada through the great recession.

Economic shocks that take place outside of our broad borders affect Canada. We live in an increasingly dangerous and volatile world, and Canadians can be proud that under the strong leadership of our Prime Minister, this government will keep Canada's economy strong.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Mr. Speaker, I was a little shocked to hear my Conservative colleague bragging about his party's record when the reality is far less rosy than he would have us believe. I do not wish to dwell too much on how the economy is affected by the falling price of oil, although this issue is problematic for many communities in Canada.

I would like to focus mainly on the Canadian government's failure to create jobs, which I am not proud of today. As I mentioned earlier, the unemployment rate in my region stands at 9.6%. The greater Saguenay area is lagging behind when it comes to job creation. The Conservative government has not done enough to create jobs.

Why are the Conservatives and my colleague opposite refusing to provide an economic update to reassure Canadians, parliamentarians and investors? Even the president of the Saguenay chamber of commerce said that the economy is ailing, retail is struggling and mining projects have been put on hold.

[Ryan Leef, Conservative, Yukon, YT]

Mr. Speaker, I thank my colleague for the question. Of course, he would have heard my speech, which mentioned the 1.2 million net new jobs we have created. Of those, 84% are full-time jobs, 82% in the private sector and 66% of those high-paying jobs.

The other thing the federal government has done outside of that outstanding job creation record is work closely with the provinces and territories in this country. The one thing we made a commitment to in 2011 was to keep taxes low and to balance the budget. We were going to do that by not cutting transfer payments to the provinces and territories, as the Liberal government did, and in that way forge strong partnerships with our provinces and territories to allow them the fiscal freedom to help spur on jobs, which is an important thing. In our Confederation, we need to work closely with the provinces to help them build those jobs within their regions.

I can talk about the Yukon territory, where our unemployment rate is below 5%, largely because the Conservative government has increased the federal transfer payments to a rate 60% higher than what previous Liberal governments gave. This has allowed our territorial government to identity its priorities, short, medium and long term; to identify the economic climate of that territory; and to take advantage of those opportunities and get people working. I would encourage all provinces to work closely with our government and mirror what the federal government is doing with a low-tax plan. That will help spur on jobs and growth in their regions.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Mr. Speaker, my colleague warned about the perils of deficit financing through the course of the budget. For the benefit of the debate here, could he enlighten the House as to whether it is $167 billion or $176 billion the Conservatives have added to the national debt since they have taken power?

[Ryan Leef, Conservative, Yukon, YT]

Mr. Speaker, I do not have the exact figure in front of me of the debt created by the Liberal government that we have been successfully paying off, but I can tell members that our commitment in 2011 was to balance the budget. We are on track to do that. We made that commitment to Canadians. We made a clear commitment that we were going to balance the budget without raising taxes, without picking the pockets of hard-working Canadians, and that we would make sure that the transfers to the provinces and territories, which were grossly slashed under the Liberal regime, were not touched or affected. In fact, we have not only maintained those payments, we have increased them to record levels. In doing so, our federal government has forged strong partnerships with the provinces and territories to make sure that each region in this country has the best opportunity to take care of Canadian families.

We know what it takes to make sure that hard-working Canadian families are able to receive the maximum benefit and that they have the freedom and flexibility to do what they want with the money they earn and help recirculate it back into the economy. They can set their own priorities for their own needs. It is our government that will continue that track of low taxes and balanced budgets. We look forward to bringing that forward by the end of this year.

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

Mr. Speaker, I am pleased to rise in the House today to speak to the opposition day motion moved by my colleague from Skeena—Bulkley Valley. I will read the motion, for the benefit of my constituents:

That the House call on the government to (a) immediately present an Economic and Fiscal Update to Parliament outlining the state of the nation’s finances in light of the unstable economic situation, including job losses, falling oil prices, and declining government revenues; and (b) prepare a budget that addresses the economic challenges facing the middle class by creating more good-quality full-time jobs, and by encouraging economic diversification.

Before I go any further, I wish to say that I will be sharing my time with my friend, the member for New Westminster—Coquitlam.

To paint a picture of the current situation, I will talk about my riding and the issues facing this country. I will explain why we are asking for what is in the motion and the reasoning behind it. I hope all members of the House will support this motion.

Why are we discussing public finances and the economy? At present, things are not going well across the country. In Lachine, in my riding, we recently saw the closure of a new plant, the Metso plant. I was elected in 2011, or four years ago, and since then many businesses have closed, unfortunately. The Humpty Dumpty and BlueWater Seafoods plants closed. Everyone has heard about Aveos. Andritz moved in the fall and, unfortunately, the Metso plant will close its doors on February 13.

More and more people are losing their jobs across the country. The government is telling us that it is creating jobs, but they are precarious, part-time jobs. We do not really have very clear figures on all of that. We want to know exactly what is happening.

Why am I saying that we have to talk about the economy? I participated in the Lachine charity drive in my riding. We went door-to-door asking people for food, and they were generous. Sometimes I met people who told me that they had lost their job. They would have liked to contribute, but they had just lost their job and could not donate anything. There are many such people.

One of the important parts of an MP's job is to be in this place, to legislate and to create laws. However, we must also help constituents. Every week, people come to my office and tell us that they cannot make ends meet. They try to make a budget, but after paying for rent, food, health care, school books or clothing for their children, there is not enough to get to the end of the month. We sit down with them and try to make a budget, but this is difficult for a vast majority of Canadians. We help them. We take the time to help them. My team is there to answer their questions and to try to find solutions. However, it is very hard.

A lot of people come to my office and give me their resumé. I tell them that I am not a job bank and I direct them to the right organizations and give them contact information for Emploi-Québec. I advise them to go to the community economic development corporation and to Carrefour jeunesse-emploi for help putting together a resumé. Once that is done, there are no jobs. They have good resumés and are qualified. Many of them speak two, three or four languages and cannot find a job. They are in Montreal, a metropolis with all kinds of factories and companies, but they cannot find a job. People tell me that they get job offers but they have to work nights every other weekend. That does not work. These are qualified people who cannot find work.

The gap between the rich and the poor is widening. The middle class is getting further and further away from the wealthy in this country. That is not normal, and it is the result of policies dating back 20 or 30 years. Now we are suffering because of those policies. What we want is a clear picture of the situation, because we do not even know the exact figures.

One of the reasons we moved this motion is that people are very concerned about our natural resources. There is a lot of talk about the price of oil. The price at the pump is great. When I visit my riding, people are always telling me that it is great, that they went to fill up and paid less than $40. They ask me if I saw that gas was at 82¢ at one station.

People are taking advantage of that, which is great. Obviously, this is good on an individual level, but what is happening in our country overall? Oil was the primary source of revenue for three provinces, and they will now have a great deal of difficulty. These three provinces had a mono-economy because previous governments did not diversify our economy or ensure that there were good jobs available in a number of sectors. They put all their eggs in one basket. Now, the basket has tipped over and there are no more eggs. That is what is happening.

In response, the government has said that it is going to take longer to table its budget. What a great idea. I would like to make an analogy. This situation is similar to one parent in a two-parent family losing his or her job. The family then has one less income. The parents acknowledge that this is not a good situation, but they do not want to talk about it too much and decide that they will look at their budget again in three or four months. What a great solution. They will pretend nothing is happening and will talk about it again in three or four months. That is what this government is telling us. Things are not going well. Jobs are being lost, there are fewer and fewer well-paying jobs, and more and more unstable and part-time jobs. However, what the government is telling us is that rather than taking responsibility and talking about this situation right away, it is going to wait a while to see what happens and deal with the budget in April. What this says to me is that the government is panicking and does not want to deal with what is happening in our country right now.

There are also financial challenges. The reason we are asking for hard facts about the current situation is that the government is not transparent. We want to know what we can do to make life affordable for everyone, not just some people. We should all have a little mad money in our budgets. There should not be so many people coming to tell me that they can no longer make ends meet.

A woman around the age of 40 came to see me in November. She lived in a small apartment in Lachine. She had to take in four roommates because she could not make it work. They had Internet access at home to look for work, but after a while, they could not afford it, so they not longer have it. These days, the Internet is not a luxury; it is not something that only the well off should have. It is a social tool for everyone. Everyone should have access to the Internet so they can stay informed and find work if that is what they need. Now this woman's only option is the library—when it is open. She uses the library and will continue to do so. Of course the Lachine library has the Internet, so she goes there, but that means she cannot get online to look for work at 8 p.m. Unfortunate things like that are going on all the time.

More and more families are being forced to do without because they do not have the means to live like everyone else and have the same perks. Making life more affordable is definitely a priority for the NDP. We have suggested some concrete solutions and we want to succeed. We also want to protect and create well-paying full-time jobs.

The government has fabricated quite a story. It says it is bringing in a tax cut that will create jobs. According to its figures, it will create 800 jobs at a cost of half a billion dollars. That is the plan this government is currently proposing. We think there might be a better way to invest that money in order to create more jobs, better jobs and jobs in sectors that will boost the economy.

We want to defend public health care. We are told that there is not enough money to transfer to the provinces for health care because the government has to balance the budget. How can we protect this service? It has taken years to build up medicare. It serves the entire population, and the government is telling us that we have to tighten our belts. We cannot lose that. As a society, we cannot decide to cut in the area of health care. We need to have better information to know how to protect this service. Furthermore, how can we protect the environment now, so we do not leave debts in the future?

I would have liked to explore this further and talk about how we see that and how we want things to be done.

We are calling on the government to present a budget as soon as possible, because we need to address this alarming situation. Waiting three months will only postpone the problem.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I would like to thank my colleague for her heartfelt speech, which described what people in her riding are actually experiencing.

I wanted to base my speech today on facts. The Bank of Canada's most recent report, dated January 2015, is very clear. It indicates that the proportion of involuntary part-time workers continues to be elevated. That was said in 2014, before the price of oil dropped. This is the result of the measures taken by the government.

My colleague spoke about the difficulty of entering the workforce. Long-term, full-time jobs that can support a family are becoming increasingly rare. People often have unstable jobs and sometimes have to work more than one job.

I would like my colleague to tell us if that is what is happening in her riding.

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

Mr. Speaker, I would like to thank my colleague for his question.

I spoke about job insecurity and part-time jobs. Some families have to work two or three jobs to make ends meet. I am worried about children and teenagers having to work to help their parents.

I was told about a 16-year-old high school student who was working evenings and weekends to help her parents pay the rent on their apartment. I am not saying that this is a common occurrence, but it could become one.

In order to avoid going down that road, we need to diversify our economy. We need to have the necessary resources and we need to have alternatives in case there is a problem in a certain sector. Let us have an economy that is fair and helps not only the upper class, but also the middle and lower classes.

The laws put in place by the government favour the upper class. For example, income splitting will favour the wealthiest families and do nothing for the most underprivileged families. We need to put good policies in place that will help everyone and diversify our economy. That will help us create quality jobs.

[Charmaine Borg, NDP, Terrebonne—Blainville, QC]

Mr. Speaker, I would also like to thank my colleague for her fine speech about her riding's economy.

It is vital that we have an economic update based on the economic facts before us. That is what we are asking for today. The government has put all its eggs in one basket. It is always about oil and when that does not work, it hides under the covers and waits for the storm to pass. That is not the solution we need right now.

The NDP is proud of its real solutions for the middle class, which will help the families in my riding and that of my colleague. I would like her to elaborate on that because there is good news for Canadians.

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

Mr. Speaker, I would like to thank my colleague for this question because it allows me to talk about a number of our proposals.

We have a plan for affordable child care across the country, for example. Naturally, Quebec can withdraw from this plan with financial compensation. In Quebec, the cost of day care increased recently. Assistance from the federal government would perhaps give the provincial government some breathing room. The federal government is making more and more cuts to health transfers, which increases the tax burden for the provinces and makes things more difficult for Canadians.

We also had a big campaign about ATM fees and credit cards. As for oil, the NDP has been calling for the creation of an ombudsman position in order to help Canadian families. We have a real plan that works and that will help all families across the board.

[Fin Donnelly, NDP, New Westminster—Coquitlam, BC]

Mr. Speaker, this is my first opportunity to speak in the House this year, so I would like to wish you, all those in the House, those in my riding and indeed all Canadians a happy new year.

I would also like to acknowledge my mother-in-law, Signe Radelet, who turned 95 late last year, and my parents, Val and Cy Donnelly, who celebrated their 57th wedding anniversary earlier this month.

I rise today to speak in favour of the excellent motion proposed by my colleague from Skeena—Bulkley Valley. We are calling on the government to present a clear and honest accounting of public finances rather than denying the scope of the challenges. We are also calling for a commitment to introduce a budget that includes measures to create good quality jobs and address the challenges facing middle-class and working people.

The government has no plan for the economy or middle class now that oil prices have plummeted. Canadians deserve answers from their government about the state of the country's finances, and they deserve a budget that invests in the economy and looks after the environment.

The middle class is working harder than ever to make ends meet after a decade of damage done by the government, but they are still falling further behind. The NDP leader's practical plan for the Canadian economy would boost the fortunes of the middle class and ensure the environment is protected.

This motion is proof that the NDP and our leader are ready to defend the interests of the middle class and working people in our country. The NDP is standing up to the Conservative government and holding it accountable for its reckless management of the Canadian economy. We must put Canada back on track, creating good quality full-time jobs and by prioritizing economic diversification.

Let us do a quick review of the facts.

Looking at the trade deficit, the Conservatives started with a $26 billion current account trade surplus and have turned that into a $60 billion trade deficit. When we look at youth unemployment, nearly double the national average, 13.4%, there are roughly a quarter million fewer young people with jobs than before the recession.

We have seen an entire generation of middle-class jobs disappear, yet the Conservatives have done nothing to create the next generation of middle-class jobs.

When we look at recovery, we could question, what recovery? There are 300,000 more unemployed Canadians and 375,000 jobs were lost in the manufacturing sector under the Prime Minister's watch. In Toronto alone, 50% of the people cannot find full-time, stable work. They rely on part-time jobs, split shifts and contract work.

When we look to the future, the Parliamentary Budget Officer has predicted that Canada will have 67,000 fewer jobs by 2017 as a result of Conservative budgets. GDP will be 0.6% lower than its potential, he reports. When we look at history in the past 35 years, under both Conservative and Liberal governments, income has grown for the top 20%, but has shrunk for the bottom 80%.

According to Statistics Canada, when we combine all budgets at the federal, provincial and territorial level, it is the New Democrats, not the Conservatives or Liberals, who have the best record of balanced budgets.

Canadians know that oil prices have fallen. In fact at the time of the last fiscal update, which was November last year, the WTI price of oil was $81 a barrel, and today oil is at $46 a barrel. That is a significant change.

Another significant change has been recent announcements resulting in job losses. Let us look at Target. It announced it was closing its operations in Canada, putting 17,000 people out of work. We have a Target just outside my riding. People worked and shopped at that store. That will affect my riding. Suncor announced 1,000 jobs lost and more to come. MEXX has announced that it is closing.

In December last year, job growth was announced at 54,000 and job losses 58,000, so that is a net loss of 4,000 jobs.

Here is an interesting fact of which I hope the government takes note. There are as many unemployed in Canada now as there were at the height of the last recession. That is astounding.

My riding is not immune to these job losses. Earlier this month, we had a very unfortunate announcement. Williams Moving & Storage, which has been in operation in Canada since 1929, announced it would close its operations in my riding. Again, this is a very unfortunate announcement as it was a very good employer, a long-time, dedicated, family-run business, with good-paying jobs. This is a real tragedy. Our hearts go out to the Williams family, to all those who lost their jobs and to their families.

The NDP has concrete solutions that would make life more affordable. We have a clear vision to build a sustainable economy.

Only the NDP leader has a practical plan and the experience needed to replace the Conservatives, and to fix the damage they have done. Canadians know they can trust the NDP leader to fight for middle-class working people and small businesses, and to invest in our economy, while protecting the environment. The NDP leader has a practical plan for the middle class. This would include a $15-a-day child care, a national, affordable and accessible child care program. That is the maximum that the provinces would pay. If provinces wanted to invest more, that dollar amount could drop. We are saying that up to $15 a day would be invested in child care, and it could actually be less than that.

It would include a $15-an-hour federal minimum wage. Giving workers good pay for what work they do in the country is important to a solid economy as well.

Returning the retirement age to 65, from 67, in terms of OAS, old age security, is a critical promise. We are looking to undo what the Conservatives have done to our seniors.

An NDP government would improve conditions for SMEs, for small and medium enterprises, in Canada. We know they are the engine to real job growth. This would include a focus on support for owner/operators, home-based businesses, and all those who work so hard to provide the products and services Canadians rely on day in and day out. That is exactly what an NDP government would provide.

I want to focus on what I think we should look at in the economy. We need to focus not just on jobs, but on housing, health care, child care, food security and income security.

Unfortunately Canada still suffers from poverty in too many communities, including in my riding. We have too many Canadians who are homeless and too many who still use food banks. This needs to be included in our assessment of the economy and how it is performing. We need to ensure that Canada's economy is serving not only those with wealth but those with less.

It is important for me to check in within my riding, and I do that annually. I do it with town hall meetings. I check in with my local mayor and council at council sessions. I want to get the input from individuals in my riding. I clearly hear that the economy is important. However, what tops the list is health care. In the last five annual town hall meetings in which I have participated, 50% have continued to say that health care is critical. We need to invest in a strong health care system.

We need to focus on what is important in our economy, which includes other items of affordability such as health care, housing, child care and other important components of which my constituents remind me.

It is important that we support the motion. I call on the government to support it. Let us get a quick and timely fiscal and economic update so Canadians know what is happening. Let us get that job done.