Debates of Feb. 5th, 2015

Opposition Motion—Job Creation

[Murray Rankin, NDP, Victoria, BC]

Mr. Speaker, my colleague's excellent question draws attention to the absence of the federal government from our lives in so many areas. I hear about it regarding veterans, the Canada Revenue Agency, and in so many fields, but in this field it is particularly disturbing.

The economy may be working for a few, but for the vast majority of people in my community it does not seem to be working at all. We do not have a large manufacturing sector. We have small business and institutions that are being incubated at the university and college levels, and high tech. They could benefit so dramatically from a decrease in taxation as well as an innovation tax credit.

The Government of Canada has been absent without leave in our community and so many other communities in Canada. It is time to get them back to the table to create real jobs for the middle class.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I thank my hon. colleague and neighbour in the riding of Victoria. I agree entirely with his observation that southern Vancouver Island, although it is thought of by many as rural and pastoral and certainly scenically a knockout, also has a significant manufacturing sector with clean tech innovators. My own riding boasts Quester Tangent, which is manufacturing positive train controls, sophisticated software found on trains in cities throughout the United States, but not yet in Canada. We manufacture Twin Otters at Viking Air. We have a lot of substantial manufacturing that would benefit from a lower dollar.

I commend the official opposition for focusing on the manufacturing sector, but I wonder if my friend would also contemplate what we can do for other parts of the Canadian economy that would benefit from a lower dollar. I think particularly of tourism and television and film production, which are also very important to southern Vancouver Island.

[Murray Rankin, NDP, Victoria, BC]

Mr. Speaker, I agree entirely. People just do not get it about our economy; they do not understand that we are a high tech sector. We are San Francisco north, and it is about time people understood that.

As to the observations on the impact of a low Canadian dollar and low gas prices, if this is not a rock and roll tourism year, there never will be one. Yet, what is the Government of Canada doing? It is spending not one cent to promote tourism. Conservatives have gone out of the business and left it to someone else, which is a shock and another example of the way they have absented themselves from this important market.

As for television and film production, it is thriving in Vancouver and Victoria. These kind of tax incentives would make an enormous difference. The innovation tax credit for the animation sector, for example, will be enormous. It is time to get the government on board and try to be part of our solution rather than part of the problem.

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

Mr. Speaker, I thought I was coming to the House of Commons today, but I seem to have entered another dimension.

On the one hand, the Liberals, who reduced corporate taxes when they were in power, are now saying that that is a bad idea. On the other hand, the Conservatives are saying they will vote against our motion because the NDP voted against theirs.

Apart from the NDP, which is talking about concrete solutions, is any party really ready to stimulate the economy and help Canadians find work?

[Murray Rankin, NDP, Victoria, BC]

Mr. Speaker, it is very hard to understand the motivation of the third party at the best of times, so I am really not going to try. But I ask members to stand back and look at the three specifics of the motion and ask themselves what is wrong with this picture. We want to decrease taxes over a couple of years on small business, who everyone acknowledges is the driver of job creation.

We want to have an innovation tax credit. We could quibble about the amounts, but the principle seems self-evident. It has been used effectively in Europe and other sophisticated economies.

Third, we want to continue a program that is already in place to make sure that people can invest in equipment and be able to write it off their income tax more quickly, which is another tried and true measure.

It seems to me that if we can focus on the specifics and leave the politics out, the Canadian people will respect us for our efforts to get people back to work and make this economy work for the middle class.

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, it is a great opportunity and pleasure to respond today to the hon. member's motion, but before I do, I would like to indicate that I will be sharing my time with the member for Don Valley West.

I would encourage all Canadians to pay very close attention to today's debate, because Canadians know when they are being sold a bill of goods, like today's NDP motion. I am reminded of the snake-oil salesman who used to walk into town and set up shop, telling people to drink it and it would cure them of whatever ailed them.

They can put wings on a horse, but it is not going to be an eagle. While the New Democrats are scrambling to show Canadians that they are moving toward our policies in a kind of deathbed conversion, it is very clear that our proposals for small business are much better thought out.

First, I would like to elaborate on our government's strong record of standing up for small business. Following that, I will highlight the NDP's tax and spend plan that would increase our debt and force every Canadian to pay more tax.

Canadians are well aware that this Conservative government successfully navigated Canada through the great recession. Our success is not a matter of chance, but a matter of choice.

Hon. members want to talk about job creation. We on this side are very proud to talk about job creation. Perhaps they on the other side would be interested to learn that we have created nearly 1.2 million net new jobs since the end of the recession. Of those 1.2 million net new jobs, the overwhelming majority are full-time, high paying, private sector jobs. To be clear, since the depth of the recession, full-time jobs account for a whopping 90% of all jobs created in Canada. That is a record that hard-working Canadians and I have every reason to take pride in.

Canada is now enjoying the lowest unemployment rate in six years. In addition, since we were elected in 2006, this government has had the strongest job-creation record of the entire G7, with the creation of over 1.6 million new jobs. Our record speaks for itself, and we are continuing to take action.

Our small business job credit is just the latest in a range of measures that will cut costs and support small businesses. It will effectively lower small businesses' EI premiums from the current rate of $1.88 to $1.60 per $100 of insurable earnings in 2015 and 2016. Ninety per cent of EI premium-paying businesses, nearly 800,000 of them, will directly benefit from this credit. In keeping with our efforts to minimize the paper burden and cut red tape for small business, this credit will require no new paperwork. The Canada Revenue Agency will automatically calculate it on the businesses' returns. Overall, our small-business job credit will cut EI payroll taxes by nearly 15%. We expect it to save small businesses more than $550 million over the next two years. These are savings that will create jobs and growth.

The hon. members need not to take my word for it. They can hear it from the people who know it best, small business people themselves. Dan Kelly, president of the Canadian Federation of Independent Business, has concluded:

...the credit will make it a bit easier for small employers to hire that extra worker, increase employee wages or help pay for workplace training. Across Canada, we estimate the $550 million left in the hands of small businesses will lead to 25,000 person years of employment in the next few years.

Clearly, small business owners and their representatives know that our efforts to reduce their costs are making a real difference in creating jobs.

Small businesses employ half of the working men and women in Canada's private sector. They account for nearly one-third of our country's GDP. Small businesses drive our prosperity and give back to our community. Our government's actions are helping them succeed each and every day. We have cut their taxes.

We cut the small business tax rate to 11% and increased the amount of income eligible for this lower rate. Together, these changes are providing small businesses with an estimated $2.2 billion in tax relief in 2014 alone. Under our government, the amount of income tax paid by a small business with half a million dollars of taxable income has declined by over 34%, a tax savings of over $28,000 that can be reinvested in the business to create jobs. However, the NDP voted against every single one of our tax cuts for small business.

I would now like to take this opportunity to discuss the NDP plan. I will highlight most of its plan, except for one important part. I will not explain how the NDP plans to tell Canadians that it is okay to blow $2.7 million in taxpayer dollars on bogus satellite offices. I will leave that to the NDP members. However, I would like to respectfully remind the NDP that Dan Kelly from the CFIB called aspects of the NDP plan for small business “dumb” and “anti-small business”.

I cannot help but also notice that one of the elements in today's motion for debate bears more than a passing resemblance to our decision to extend the accelerated capital cost allowance. However, here is the real kicker: the NDP voted against the accelerated cost allowance in the first place. If that were not enough, the NDP has promised to increase taxes on small businesses and all other Canadians. That includes a $20 billion carbon tax that would raise the price of everything, from gas to groceries. It includes doubling CPP payroll taxes, forcing Canadian workers and employers to pay more.

It was Shaun Fantauzzo from the Atlantic Institute for Market Studies who said that higher mandatory CPP payroll taxes would “...prevent...[small] businesses from hiring new workers, as well as force them to economize by either reducing hours or laying off existing employees”.

NDP members even pledged to reverse our family tax cuts and benefits. They would take that money from families and give it to Ottawa bureaucrats, because the bureaucrats know how best to spend it. Well, our plan helps 100% of the families with kids. The NDP plan would only help 10% of families.

Our Conservative government knows that moms and dads are best suited to make the crucial decisions affecting their children, but the NDP believes that Ottawa bureaucrats should be making parental decisions instead of mom and dad.

The NDP's spendthrift ways would also increase the deficit and increase the debt. It would burden our children and grandchildren with higher debt to pay for the NDP's expenditures today.

In conclusion, we will take no lessons from the NDP, who really have none to share.

In 2011, Canadians elected our government with clear instructions: 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 delivered. Promise made, promise kept. We created a low-tax environment on the understanding that lower taxes and payroll costs support jobs and growth. We have proven with our actions that this empowers Canadian entrepreneurs, leaving more of their hard-earned money in their own hands for them to invest in their own businesses to support jobs, growth, and long-term prosperity.

I would encourage hon. members to take this record into account in considering today's motion for debate and reject its empty rhetoric in favour of the real results of our government. Our Conservative government will continue to deliver on what matters most to Canadians, and that is jobs, growth, and long-term prosperity, and support for small businesses.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, I listened carefully to my colleague's statements.

If things are going as well as he says, if the working class is so rich, can he explain why it is that 800,000 Canadians are having to rely on food banks? I would like to know, and the 800,000 Canadians who go to food banks would also like to know why everything is going so well in Canada.

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, I appreciate my hon. colleague listening carefully to my speech, but clearly he was not listening carefully enough.

We have lowered taxes 150 times since taking government in 2006, resulting in the average Canadian family of four saving $3,400 in taxes. That is more money in their pocket that they can spend on what they consider to be most important for them. These are hard-working Canadian families.

I remember that when I was a small kid, my dad had a small business. He had a shoe store. He would come home late at night, when and I would be looking through the window waiting for him. I would see him get out of the car and drag his knuckles on the ground. He was dead tired. However, he always took the time to play with me or to help me with my homework.

These are what small business people do. Not only do they create jobs but they also spend time with their families. This is exactly what our government is focused on: job creation profitable enough so that people who are entrepreneurs, or who can become entrepreneurs, will also have ample time to spend with their families. That feeds into our family tax cut.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the member says the government is interested in job creation. I will give an example from last year. The Prime Minister announced that the government had a wonderful EI tax program for business, but in a bizarre, twisted way, it actually provided some incentive for some small businesses to lay off people.

The leader of the Liberal Party proposed a program that has been proven to work. It is an EI premium exemption program that would have created the types of jobs that the member is talking about, tens of thousands of jobs in every region of the country. However, the government, not wanting to recognize a good idea when hit square in the face with it, decided that it was going to say no to the Liberal idea and move forward on its own idea, which creates many fewer jobs and, as I say, might actually cause the loss of jobs.

My question to the member is this. If the member is so keen on creating more jobs for Canadians, why does he think the Prime Minister chose to ignore a good idea that had a proven track record and that other outside organizations were supporting because they recognized that it would benefit all Canadians and Canada's middle class, if only the Prime Minister would have listened?

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, it was not the Conservatives who rejected the Liberal proposal; it was the Canadian people in 2006, 2008, and 2011. The Canadian people rejected the Liberal proposal.

Let me tell the House about the Liberal proposal. The Liberal proposal was to pillage $55 billion from the EI fund, a manouevre on which this party decided to take that party to court, and the Supreme Court ruled that the Liberal Party had stolen the money from the EI fund. That is the Liberal proposal: to take money that belongs to Canadian workers. No, that is Canadian workers' money. The government keeps it in trust for Canadian workers.

There have been 1.2 million net new jobs created in this country since the end of the recession. That is a record that we are proud of. That is a record that we will stand proudly on, and we will take it proudly to the Canadian people when the election comes later this year.

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Mr. Speaker, I want to thank my colleague for his great intervention and for his understanding of our policies.

I am surprised sometimes by the hypocrisy in the House, though I guess after nine years, I should not be. The NDP is trying in some way to duplicate what we have done, as my colleague across the aisle talked about, with the capital cost allowance and lower corporate taxes. That ship already sailed a long time ago, and New Democrats actually voted against it.

Small businesses are crucial. What makes small businesses? It is the middle-income group, so I would ask my colleague to talk a bit about the new family tax package, not the one issue that the Liberals talk about. What benefit does that package have, not only to small businesses but to the families that own them?

[Mark Adler, Conservative, York Centre, ON]

Mr. Speaker, what I would say is that our party is focused on what matters most to Canadians, which is jobs, growth, and long-term prosperity. We have done that by putting more money into the pockets of hard-working Canadian families so that they can determine how that money can be spent.

It was the Liberal Party, about a decade ago, that said that if we give Canadians more money, they are going to spend it on beer and popcorn. No, they are going to spend it on their families. They are going to spend it on their kids. They are going to spend it on what matters most to them.

[John Carmichael, Conservative, Don Valley West, ON]

Mr. Speaker, it is with great pleasure that I rise today to speak on the government's measures relating to the automotive and manufacturing sectors.

Our government knows the importance of the automotive industry to Canada's economy. We know that Canadians build the best cars and trucks in the world and we intend to keep it that way.

It was just a few short years ago that the global economic downturn threatened that and challenged the North American auto industry, including Canada's, like never before, but our government took action by restructuring support for the industry. Our government's investments prevented long-term economic decline for many communities and workers across the country. Because of our support, the automotive industry in Canada prevailed. Companies have returned to profitability and continue to build great cars and trucks in Canada.

The automotive industry is a pillar of the manufacturing sector in the Canadian economy, representing 10% of the manufacturing GDP and 13% of total merchandise exports. The auto sector directly employs more than 117,000 Canadians and indirectly employs about 377,000 Canadians in its supply chain, which comprises more than 730 businesses.

Our government's long-term goal provides the right conditions for a sustainable and viable sector in which Canada maintains and grows its share of auto production and jobs.

On January 4, 2013, the Prime Minister's announcement of the renewal of the automotive innovation fund for $250 million over five years was a clear signal of our government's ongoing commitment to create jobs, growth, and long-term prosperity for all Canadians. In last year's budget, the government doubled down, investing an additional $500 million into the automotive innovation fund. In all, the renewed automotive innovation fund will provide up to $750 million over five years for Canadian auto sector businesses in order to support large-scale strategic projects. This support is in addition to the initial commitment of $250 million over five years in budget 2008.

Thanks to the automotive innovation fund, innovative research and development projects are carried out here in Canada. It supports private sector investment in the auto industry and increases Canada's competitive advantage in international markets. Our government's investment in the automotive innovation fund supports the creation of high-quality, well-paying jobs.

The automotive innovation fund, however, constitutes only a part of what our government has done to support a solid automotive sector in Canada. Our government's approach also includes a fiscal and economic framework that will keep the industry competitive. This framework includes a sound banking system, the lowest overall tax rate on new business investment in the G7, the lowest debt-to-GDP ratio in the G7, and a AAA credit score.

Our government has also supported the automotive industry through the creation of the accelerated capital cost allowance. Through this initiative, our government has provided $1.4 billion in tax relief, helping manufacturers to undertake additional investment and increase productivity. I find it ironic that we are debating a motion today whereby the NDP proposes to extend the accelerated capital cost allowance when just two years ago it voted against extending that very program.

What has our government done? We have eliminated tariffs on machinery and equipment, making Canada the first tariff-free zone for manufacturing equipment imports in the G20. We have also placed a strong emphasis on encouraging innovation and productivity through research and development with programs such as automotive partnership Canada, with a $145 million investment, and auto21, with an investment of $81.1 million.

Our support for the auto industry does not end there. Given the integrated nature of the industry, we have also supported the need to ensure the smooth flow of goods across the border. This includes an investment of $470 million over two years for the new Windsor-Detroit crossing, ensuring the continued integration of the Canadian sector with the North American supply chain.

We are also working hard to ensure the Canadian automotive sector has access to world markets. Through trade agreements such as the Canada-Europe free trade agreement, there will be 500 million new consumers for Canadian-made cars and trucks.

Our government's suite of policies—low taxes, global trade opportunities, investment policies, and a skilled labour force—is working. To date, we have attracted investments of $2.8 billion in the automotive sector. Just last month our government announced a major investment by Linamar in Guelph, Ontario. Because of our actions, Linamar is investing $507 million in expanding its operation in Canada. Linamar could have based this project in other countries, but did not. It chose to take advantage of Canada's manufacturing landscape, our strong supply chain, low taxes, open markets, and talented workforce. This investment will create 1,200 new, well-paying, full-time jobs and will maintain an additional 1,800 jobs.

Last year, the minister announced an investment of $72 million for the Ford Oakville assembly plant, which will transform the plant into a state-of-the-art global manufacturing facility, making it one of the most sophisticated Ford plants in the world. Today, this plant has the flexibility it needs to produce large quantities of 11 of Ford's mid-size vehicle models, such as the redesigned Ford Edge and the Lincoln MKX, on the same platform. This plant will be one of five Ford plants in the world with such an ability. Furthermore, this support has leveraged a $716 million investment by Ford into Canada.

Our government's support for the automotive industry made for an excellent year in 2014. Last summer, Canada posted the largest trade surplus of auto exports in almost six years. As if that alone was not enough, in September Canada saw an increase of 6% in the export of motorized vehicles and auto parts, as well as an increase of 10.2% in the export of passenger vehicles.

The numbers speak for themselves. In 2014, Canadian automakers produced more than 20 types of different vehicles and registered unprecedented sales.

Canada is the destination of choice for automakers. The country has much to offer for both automakers and parts manufacturers, and it is our government that has put in place the right conditions to allow the world-class Canadian auto sector to continue its success. Our government is serious about supporting this industry and the well-paying, highly skilled jobs it represents. We are confident that Canada's suite of policies of low taxes, global trade opportunities, investment policies, and a skilled workforce will keep Canada's auto sector among global leaders.

Before I close my remarks, I want to point out that we are debating an NDP motion that calls upon the government to build a balanced economy, support the middle class, and encourage the manufacturing sector. While the NDP is beginning to see the light after all these years, it is clear that our government has taken action to create jobs and growth that support Canadian families and businesses. Instead of the NDP's piecemeal approach, our government, and only our government, has a plan that will create jobs and growth and lead to long-term prosperity for all Canadians.

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, if the government has such a positive record, as my colleague claims, why is it that his government continues pouring billions of dollars into large corporations that do not even create jobs here in Canada, when we know that small and medium-sized businesses are key job creators?

[John Carmichael, Conservative, Don Valley West, ON]

Mr. Speaker, my colleague is absolutely correct. SMEs are the foundation of business in our country. We currently provide the lowest tax rate in the entire G7 for businesses in our country, which allows companies to reinvest, prosper and profit, while creating more and more additional jobs within the community.

I agree with the member on SMEs representing some 90% of business in our country. We are investing in those businesses so they succeed and can be successful in the future.

[Dan Albas, Conservative, Parliamentary Secretary to the President of the Treasury Board]

Mr. Speaker, given that the discussion today centres around a platform that the NDP has for small business, it demonstrates the lack of understanding by the official opposition.

The NDP talks about cutting taxes to small business. Keeping taxes low is the right way, and that is why the government has done so much on the file. However, the Leader of the Opposition has also said that he wants to bring back higher corporate rates right across Canada. That would not only chase away investment in the auto sector, which is very competitive internationally, but chase away all of the investments in public education. Remember, when we have these large clusters in a certain region, it has a huge spillover effect in the kinds of public and post-secondary education.

Let us consider big businesses that are operating at such a high level and their business models that bring small operators through their supply chain, such as janitorial, supply parts and all sorts of auxiliary activity. If we raise corporate taxes like the NDP wants to do and chase away sectors like the auto sector, we will see business dry up for these small businesses through Ontario and right across the country.

Does the member agree that the NDP may say one thing in one small area of the tax file, but that it may have big holes to fill at the other end before investment in our country gets chased away?

[John Carmichael, Conservative, Don Valley West, ON]

Mr. Speaker, I would like to thank my colleague for the points he has made. Clearly, he understands how conflicted the NDP truly is. He is absolutely correct.

Let me bring to light a few other points that he did not mention. The NDP and the Liberals voted against support for manufacturing, and I will give a few examples. They include lowering the federal corporate income tax rate to 15%. The NDP and Liberals did not want to do that. They voted against it. There was extending the accelerated capital cost allowance for new investment in machinery and equipment. They voted against it. There was the automotive innovation fund. They voted against it.

The NDP deals in conflict, and I understand it.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I have to correct some gross distortions of reality coming from the Conservative side.

When the Conservatives talk about the official opposition voting against some of these measures, all Canadians know that it is because the Conservative government has perfected the deception of omnibus budgets, where they put into a budget bill things like obliterating environmental protection and protection for navigable rivers, and changes to the immigration act. They put changes in the budget that have nothing to do with the budget and then force the opposition to vote against it. There are some things contained in the budget that we would like to support if they were properly segregated and put into the budget like they are supposed to be.

Canadians need to know that the government is trying to pull the wool over their eyes about the NDP not supporting these things. The Conservatives have made a mockery of the budget process through omnibus budget bills.

The director of the Canadian Federation of Independent Business is supporting the proposal of the New Democrats to reduce the small business tax from 11% to 10%, and differentiates between global across the board corporate tax cuts to large corporations that do not need the money. Everybody knows that the global corporate tax cuts do not get put into the economy. That is why we have over $600 billion of idle capital in our country, which is not being invested to create jobs, because the government—

[The Acting Speaker, Conservative, Bruce Stanton]

We have run out of time here. I will give the hon. member for Don Valley West 30 seconds or so to respond.

[John Carmichael, Conservative, Don Valley West, ON]

Mr. Speaker, I am not sure that I heard a question, but real business investment in Canada is now 6.2% higher than it was at its peak prior to the recession. That is a fact of our economic policy and what the government has been able to accomplish.

It is no wonder, incidentally, that the Canadian Federation of Independent Business unequivocally supports our low tax plan.

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, I will be sharing my time with the hon. member for Québec.

I am grateful to be given the floor to support the motion moved by my colleague from Parkdale—High Park, a motion that will put things back on the right track. It outlines the first tangible measures in an economic diversification plan that will allow the NDP to rebalance the Canadian economy and help the middle class.

For 10 years, the Conservatives have been telling anyone who will listen that they have lowered taxes, invested in infrastructure and reduced the debt for the good of the middle class.

However, oddly enough, every week in my riding, people from the middle class share their concerns about the future with me. I share their anxiety because there are 1.3 million people unemployed and 400,000 manufacturing jobs have been lost. Recently in Quebec, 275 jobs were lost at Resolute Forest Products in Shawinigan, not to mention the 737 jobs at Mabe in Montreal and the 1,300 other jobs at Electrolux in L'Assomption. Nationally, Mexx, Jacob, Sears and now Target are disappearing.

Even though they are working harder than ever, Quebeckers and Canadians are having a harder time making ends meet. The economic track record that the Conservatives brag about, like most of their policies, is an illusion and does not hold water.

Their economic policies are primarily based on the idea that corporate tax cuts are good for economic growth, since they create some breathing room to allow companies to invest and hire.

The Institut de recherche et d'information socioéconomique completely discredited this idea in its report published on January 27 entitled, “Portrait de la surépargne des entreprises au Québec et au Canada”.

This was a damning report for the government and the Conservatives. It ripped the economic policy they have been advocating for the past 10 years to shreds. It pointed out that non-financial major corporations have seen their tax rate drop from 22% to 15% since 2008.

I remind my fellow Canadians that the tax rate for a middle-class family is around 35% to 40%, so everyone has an idea of where the Conservatives' priorities lie.

Did these major corporations create jobs as a result of these tax cuts? No. Did they invest money in production or innovation? No. Did they pass the money on to their shareholders? Definitely not. The tax gifts the Conservatives gave them did nothing. The major corporations hoard this money and just sit on it.

The IRIS was unequivocal: $575 billion has been hoarded in the past seven years. That represents 32% of Canada's GDP. We could build 164 new Champlain bridges with that money. The findings of the IRIS report are definitive. In three sentences, they obliterate the foundation of the Conservatives' economic policy:

The policy whereby we must lower taxes for corporations to give them room to manoeuvre and encourage them to invest is no longer valid.

That is an inescapable finding that makes us rethink the entire public action on the economy and makes us want to replace this government.

That is the conclusion the NDP came to in its dealings with workers and the middle class these past few years. The NDP has a plan that will make the economy work for Canadians. The economic plan announced by our leader is the result of those efforts and this motion presents what we will do to create good jobs for the middle class.

As we do with everything, we are working with facts. The economic fabric that generates employment depends on two fundamental elements. First there is the manufacturing sector, which has 1.7 million workers and generates 11% of our GDP. Then, there are the SMEs, which provide 7.7 million jobs and produce 40% of our GDP.

Between 2002 and 2012, they created 78% of the new jobs in the private sector. The manufacturing sector and the SMEs are the driver of our wealth and innovation. In 2014, the Canadian Chamber of Commerce determined that Canada's inadequate support for innovation in its manufacturing sector was one of the top 10 obstacles to making our economy competitive.

That is why the NDP has already proposed three key measures that will help spark economic activity and create jobs for the middle class as soon as we form the government in October. These measures are part of a clear, coherent plan that will support a transition to a new era for the Canadian manufacturing sector.

First of all, the NDP will reduce the small business tax rate to 10%, and then to 9%. This translates into $1.2 billion for our SMEs, which will stimulate activity at a time when growth is stagnating. In terms of the manufacturing sector, we will also extend the accelerated capital cost allowance for manufacturing and processing machinery and equipment, which is set to expire this year. That measure will help Canadian manufacturers save about $600 million a year over two years. They can then use that money to update their machinery and equipment, attract new investors and increase exports, thereby creating jobs to support middle-class families.

Lastly, we will introduce an innovation tax credit for the manufacturing sector for businesses that invest in machines, equipment and goods used for research and development that stimulate innovation. This measure will allow Canadian manufacturers that make crucial investments in research and development to put $40 million a year back into that activity.

This measure would also undo the damage done by the Conservative cuts to the scientific research and experimental development tax credits and would encourage innovation in Canada. Our announcements were well received by the main stakeholders in research and development.

Dan Kelly, President and CEO of the Canadian Federation of Independent Business said that:

Cutting the small business tax rate by nearly 20% will provide a big boost to Canada's small businesses and will help them create jobs.

The Canadian Manufacturers and Exporters pointed out the basis of our economic policy when it stated that the NDP has made the manufacturing sector the cornerstone of its economic plan today in Ottawa.

We will help the manufacturing sector and our SMEs create good jobs for the middle class by implementing targeted and coherent measures. SMEs are the ones that are innovating and creating good jobs, not the western oil companies, which destroy our environment and sit on their billions. New Democrats understand that in order to get Canada back on track and help middle-class families succeed, we need to take concrete action in order to diversify the Canadian economy.

This motion lays the groundwork for rebalancing our economy, which will stimulate growth and job creation. For all of these reasons, I ask all MPs who say they want to encourage job creation and help the middle class to support this motion.

[Dan Albas, Conservative, Parliamentary Secretary to the President of the Treasury Board]

Mr. Speaker, there has been a lot of discussion today. I am glad the member opposite was able to bring some of the perspective from her riding to it.

The NDP always continues to say that government should consult. The government does and should consult to get as many opinions as it can. However, her leader, the leader of the official opposition, has said that he wants to raise corporate taxes. If we raise corporate taxes, that also has a reciprocal increase right across the board. We have our corporate taxes where we work with provinces and they go in lockstep.

Has the leader of her party consulted with premiers on this raise in corporate taxes, which would chase away investment? Also, has he consulted about the New Democrats proposed changes to a day care system that would involve, both at the federal level and provincial levels, billions of dollars of spending? Does the NDP practise what it preaches.

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, I wish to thank my colleague for his comments, but I would just like to tell him that the Conservatives are in no position to lecture us about consultation.

It is clear that the NDP does consult, has consulted and will continue to consult Canadians to ensure that, as I said in my speech, the economy finally works for Canadians, and particularly the middle class.

[Mathieu Ravignat, NDP, Pontiac, QC]

Mr. Speaker, I was most interested to hear my hon. colleague’s remarks. She made an excellent point, namely that the Conservatives’ job creation plan is not working, particularly in my riding. Fewer and fewer people have jobs. The reason is this government’s complete lack of balance: some sectors are obviously friends of theirs, and others are not.

What is needed is a reasonable approach that looks at the economy and stimulates the sectors that are in difficulty. That is what our motion seeks to do and what it seeks to add to the debate.

Does my colleague have any comments on that score?

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, I thank my colleague for his question. However, I nevertheless cannot refrain from mentioning the Conservatives’ abysmal record, if my colleague will allow me.

Today, we have 200,000 more unemployed workers than before the recession. The unemployment rate among young people has exploded; it is now 13%, on average. In five years, the Conservatives have been unable to revitalize the labour market. They mask that failure by saying over and over that they have created a million jobs in Canada. The Conservatives are directly responsible for this country’s biggest layoff: 26,000 federal employees have lost their jobs since 2010.

With such a pitiful track record, the Conservatives have no leg to stand on. Roll on, 2015.