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 & 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.