House of Commons Hansard #183 of the 41st Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was families.
Diane Finley ConservativeMinister of Public Works and Government Services
Mr. Speaker, the commissioner clearly found that neither I nor any member of my family or friends had any personal interest in the decision to provide this funding to improve accessibility at the Markham centre. Moreover, she found that not only was I not friends with Rabbi Mendelsohn, but in fact we had never met.
I accept the guidance provided by the commissioner to ensure that these grant programs are handled in a manner that is fair, accessible and effective for all.
Pat Martin NDP Winnipeg Centre, MB
Mr. Speaker, I think you are aware that we are spending millions of dollars removing all the asbestos from the Parliament buildings because, God forbid, a single MP should ever be exposed to a single fibre of asbestos. Yet virtually all of our government buildings are riddled with the stuff, putting both private and public sector workers at risk.
Therefore, in the absence of a comprehensive removal program would the Minister of Public Works at least concede to creating and publishing a national registry of all government buildings that are contaminated with asbestos so the workers in these buildings have at least a fighting chance when they go to work to protect themselves from this class A carcinogen?
Public Works and Government ServicesOral Questions
Cumberland—Colchester—Musquodoboit Valley Nova Scotia
Conservative
Scott Armstrong ConservativeParliamentary Secretary to the Minister of Employment and Social Development and Minister of Labour
Mr. Speaker, the government is committed to ensuring that all workers have access to safe, fair and productive workplaces. Our government ensures that workers have the right to refuse any work they believe may be dangerous.
Dedicated health and safety officers work diligently on a daily basis to ensure the safety of Canada's federally regulated workers.
Bryan Hayes Conservative Sault Ste. Marie, ON
Mr. Speaker, tax season is approaching and the tax-free savings account is another example of our Conservative government fulfilling on promises to keep taxes low. It is a way for Canadians to save for retirement, their children's education or a down payment on a house. The TFSA is helping Canadians, but the opposition wants to take it away.
Could the Minister of Finance tell the House how the TFSA is helping Canadians provide for their future?
Joe Oliver ConservativeMinister of Finance
Mr. Speaker, I am proud that over 11 million Canadians of all ages and income brackets have opened an account. The average income is $42,000 and the majority of the accounts go to low and middle-income Canadians.
The Canadian Association of Retired Persons feels this is an extremely important policy for seniors. This government will protect the interests of seniors, middle-class families and all Canadians.
Louis Plamondon Bloc Bas-Richelieu—Nicolet—Bécancour, QC
Mr. Speaker, rather than reward consumers who take action to reduce GHG emissions, Ottawa chose to help the auto industry even though the industry has put off bringing more economical cars to market.
The Bloc Québécois believes that an ecoauto program is essential to any serious plan to fight oil dependency. Norway has implemented such incentives, and they are working.
In its next budget, will the government follow Norway's example by reinstating the ecoauto rebate program and enhancing it to account for new developments, such as electric cars?
James Moore ConservativeMinister of Industry
Mr. Speaker, as my colleague should know, we are constantly working with auto companies on investments and approaches to enhance their ability to produce new cars that will definitely hit the market.
If he has a specific proposal that makes sense, we will certainly take a look at it.
Massimo Pacetti Independent Saint-Léonard—Saint-Michel, QC
Mr. Speaker, according to a study by the Canadian Centre for Policy Alternatives, pension income splitting benefits the wealthiest seniors disproportionately.
Of the families that benefit from this tax break, only 10% of the wealthiest benefit fully, at a cost of $1.2 billion per year, while 70% of seniors enjoy no benefit at all from this measure. It is clear that the government has no plan whatsoever for seniors living below the poverty line in Canada.
When will the Minister of State for Seniors do something for seniors who really need help?
Alice Wong ConservativeMinister of State (Seniors)
Mr. Speaker, when it comes to seniors' poverty, our government has a record of which we can be proud. Canada has one of the lowest seniors' poverty rates in the world thanks in part to our actions, which include removing thousands of seniors from the tax rolls completely, making significant investment in affordable housing for low-income seniors and introducing the largest GIS increase in a quarter century.
The other parties would take away the pension splitting for our seniors. That is something we will never allow to happen.
The Speaker Conservative Andrew Scheer
I would like to draw to the attention of hon. members the presence in the gallery of His Excellency Valeriu Stefan Zgonea, President of the Chamber of Deputies of Romania.
The House resumed consideration of the motion.
The Speaker Conservative Andrew Scheer
Resuming debate, the hon. Minister of Finance has 16 minutes remaining in his time.
Opposition Motion—Government InvestmentsBusiness of SupplyGovernment Orders
Eglinton—Lawrence Ontario
Conservative
Joe Oliver ConservativeMinister of Finance
Mr. Speaker, I talked about the fact that the Canadian economy is the envy of the world. However, the NDP wants to sink us back into red ink so it can waste money on its pet projects, while taxing away our prosperity. That makes no sense, particularly when the Fraser Institute released a report on the state of the Canadian economy just this morning, a report which stated that the adult unemployment rate was at the historic low level, and:
—we have seen a marked increase in high-wage factory jobs in Canada in recent years...There are few reasons to think the recent crisis has damaged the key ingredients propelling long-term growth in most of the world...More policy stimulus is not needed in North America at this time
Even worse, the member opposite wants to put all of this wasteful new spending on Canada's credit card, raising our debt, forcing our children and grandchildren to pony up for the bill of his party's big spending dreams. The promise of tax hikes for coming generations to pay for the NDP's irresponsible and reckless plans is not responsible leadership.
The NDP's so-called economic plan could jeopardize all of the hard work that Canadians have done to achieve the prosperity we have today. We reject this plan, as do Canadians.
There is a better way for Canada, a Conservative way, a low-tax, balanced budget plan for jobs and growth that is working. It is the plan our Conservative government is following, and it is a plan that works.
I would now like to remind the House about the key planks at the cornerstone of that plan: first, the solid fundamentals that come with fiscal responsibility; second, keeping taxes low for families and job-creating businesses; and third, expanding opportunity by cutting red tape and opening new markets.
Let me begin with fiscal responsibility.
Solid fiscal fundamentals start with a principle; that we have a responsibility to spend within our means. Families have to do that every day, and as a government, we must also respect that tried and true principle.
When our government came to power in 2006, the world was a very different place. The markets were flourishing and economic growth was strong. We reduced the federal debt. We lowered taxes for Canadians and for job-creating businesses, and we took on an ambitious plan to renew Canada's aging infrastructure. Then the storm hit, coming from outside our borders.
We all remember the collapse of Lehman Brothers in 2008. The subsequent financial crash erased $10 trillion in global market value, destroying the savings of families around the world.
That was how the great recession began, the worst economic downturn since the Great Depression, a downturn that cost 62 million jobs globally. It did not start in Canada, but it hit us none the less.
Historic action was required so we took historic action. Our economic action plan made unprecedented investments in thousands of infrastructure projects, investments in roads and bridges and in knowledge infrastructure, like research labs, universities, colleges and broadband Internet access for rural Canadians. These investments created the jobs we needed right when we needed them most. They created jobs at a time when jobs were being destroyed everywhere.
Fast forward to today and the evidence is clear. Our plan worked. We have accomplished so much, as Canadians, together. We have created over 1.2 million net new jobs since the depths of the recession. The overwhelming majority of those jobs are full time, in the private sector and in high-wage industries.
According to the International Labour Organization's global wage report, Canada has the second best pay gains in the G20. The Center for American Progress states that Canada has experienced continuing middle-class growth, while for many countries it has halted. A recent analysis done by The New York Times found that after-tax middle class incomes in Canada now appear to be higher than in the United States. In fact, the Canadian middle class is among the richest in the developed world.
Indeed, the very CIBC report that the NDP cites in this motion pointed out that for the past year the number of full-time jobs in Canada rose twice as fast as part-time jobs. This is the reality, a reality supported by objective evidence and real facts.
This reality did not prevent the NDP from voting against all of the job-creation measures taken by this government, such as freezing EI premiums, lowering taxes for the manufacturing sector and investing $70 billion in infrastructure to create stable, predictable jobs.
In contrast, when the time for stimulus was over, we did the responsible thing: we set out on a course to balance budgets. This took hard work and a plan. Canadians know that budgets do not balance themselves, though I hear having a trust fund is a big help. However, for those of us without that advantage, we have to plan ahead. Therefore, we made a plan. Then we followed our plan and it worked. We will balance the budget this year just as we promised Canadians we would, and we will not fall into the tax-and-spend ways of our Liberal and NDP opponents, which brings me to the low-tax part of our low-tax plan. We know that the Liberals and NDP are contemptuous of low taxes. To them, a dollar back in the pockets of families is a wasted dollar, a dollar lost for their big government pet projects.
It was the Liberal finance critic who said that the Liberals believe Canadians will not be bothered by being taxed more and more. It was the NDP author of this motion who called our Conservative government's universal child care benefit a “slap in the face”. The real slap in the face is every vote the Liberals and NDP cast against more money for moms and dads.
We have all heard about the inevitability of death and taxes. Will Rogers once joked that the only difference between death and taxes is that death does not get worse every time Congress meets. That is the kind of Parliament a Liberal or NDP government would deliver. However, that is not the Conservative way. We trust parents to raise their kids better than any social engineer would. We trust Canadians with their hard-earned money, more than the NDP or Liberals ever could. The Prime Minister has the best tax record of any prime minister in decades. Under his leadership, we have provided tax relief over 180 times since taking office. We brought the GST down to 5%. We created the popular tax free-savings accounts. We cut corporate taxes and small business taxes. We made Canada the first tariff-free zone for manufacturers in the G20. Last year we cut taxes for every family with children. Today the overall federal tax burden is at its lowest level in over half a century.
Not since John Diefenbaker was the prime minister have Canadians paid so little tax to Ottawa. Canada's economic competitiveness has hugely improved, creating new jobs for Canadians from coast to coast to coast. KPMG says Canada's total business tax costs are the lowest in the G7, 46% lower than in the United States. Canada has the lowest overall tax rate on new business investment in the G7. Bloomberg ranks us the second most attractive place in the world to do business. By lowering taxes, we are building a stronger economy for all Canadians.
To that end, we are cutting red tape and opening new markets. We established the one-for-one rule.
Every time the government imposes a new regulation, it must eliminate a regulation.
Businesses now spend 290,000 hours less a year on paperwork, which kills jobs.
By cutting red tape, the government is helping businesses save around $75 million a year, which helps more than 5,000 small businesses.
We know that our approach works. According to a study of 189 countries carried out by Public Works Canada, preparing, filing and paying taxes each year takes 25% less time for a business in Canada than for a business in the United States.
Canada is the only G7 country to rank among the top 10 based on the overall ease of paying taxes. Conservatives know that for Canada to create well-paying jobs, we need job creators spending their time growing their businesses, not choking on red tape and high taxes, but we also know that we have an obligation to open new markets to those job creators. We need to expand their opportunities so they can reach their full potential. Under Conservative leadership, Canada's free trade network now touches every corner of the globe. I cannot overstate the importance of this to the Canadian economy.
When our government took office in 2006, Canada had free trade agreements with five countries. That was not good enough for a country where 60% of GDP and one in five jobs are tied to trade. We now have free trade deals with 43 countries. In 2012, Canada joined the ambitious trans-Pacific partnership negotiations, and in March, the Prime Minister concluded negotiations for a bilateral free trade agreement with the Republic of Korea, Canada's first in Asia.
The National Post called Canada a free trade empire that now covers the two largest markets in the world, the United States and Europe. This latter deal is a game changer. The European Union is the world's largest economy. This trade agreement is the most comprehensive free trade agreement in the history of our nation, more ambitious than NAFTA itself. The EU agreement will provide more open access to 28 countries, a market of 500 million people, and annual economic activity of $17 trillion.
Mr. Speaker, I will conclude today by reminding Canadians of what is at stake in the upcoming election. The policies I mentioned today work. These are policies that helped our country out of the worst of the recession and that have made Canada one of the most economically resilient countries in the world.
However, with the NDP and the Liberals, we have an opposition that wilfully ignores this success. Our jobs would be at risk, our economy would be at risk, our pocketbooks would be at risk, but with this Conservative government, under our Conservative Prime Minister, Canadians are in safe hands. Under our Prime Minister, we can all look forward to the serious and experienced leadership that Canada needs for these all-too-chaotic times in the world economy.
Nathan Cullen NDP Skeena—Bulkley Valley, BC
Mr. Speaker, it is nice to see the finance minister back. We have not heard him talk about the economy in the House for almost six weeks now.
I am not sure that he actually read the same report as New Democrats did, and I will quote from the report to help him out. It states:
...the number of low-paying [full-time] jobs has risen faster than the number of mid-paying jobs, which in turn, has risen faster than the number of high-paying jobs.
It further states:
The damage caused to full-time employment during each recession was, in many ways, permanent.
We have seen a 0.7% job-growth rate in Canada during 2014, which was supposed to be a good year. We have seen youth unemployment at twice the national average and 200,000 more Canadians out of work than before the recession, and all Conservatives want to do is pull a muscle patting themselves on the back for a job well done. We know that the Canadian economy needs some help. The government's answer to falling oil prices was to delay the budget by a few months, just hoping things would get better. There is no plan B coming from the government, other than more tax breaks for the wealthiest Canadians.
My simple question is this. The CIBC report shows that job quality in Canada is at its lowest level in a generation. Let me repeat that. The quality of jobs in Canada is at its lowest level in a generation. Does that not preoccupy him at all, the fact that we are moving from full-time, well-paying jobs to more precarious part-time work in this country, as was evidenced in last month's report by his own department? Is he not at all concerned with that, and would he just get on with the work of presenting a budget that would actually meet the needs of the Canadian economy?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Speaker, I am pleased that the member opposite would like me to get on with the work of developing a budget, which is why I have not been able to attend the House as often as I had before. However, there is a different view about the CIBC report. Let me quote Philip Cross, who is a former chief economic analyst at Statistics Canada. It is a little harsh, but let us get it in the record.
The number one issue facing this country is not income inequality, as CIBC claims, but the proliferation of pseudo-knowledge and sham data—nonsense free floating in our public discourse, but treated seriously by both mainstream and fringe media and commentators. It is the most important issue because it has ramifications for all the issues society faces and what needs to be done about it.
The point is that there are different views on these statistics, but it is clear that our government is focused on what matters most, jobs and economic growth. The fact is that almost 1.2 million net new jobs have been created since the recession. Both the IMF and the OECD forecast that Canada will have one of the strongest growth records among the G7 in the years ahead.
According to the International Labour Organization, something that might resonate with my NDP colleagues, according to its global wage report, Canada has the second best pay gains in the G20. With a fragile global economy, we must stay the course with our low-tax plan for jobs and growth. Our economy grew at an annualized rate of 2.8% in the third quarter of 2014 and it was higher than market expectations.
It is rich for the NDP members to criticize our record on job creation. They voted against every job creation measure our government has put forward.
Scott Brison Liberal Kings—Hants, NS
Mr. Speaker, the Minister of Finance just referred to the report of CIBC economics as sham statistics. A bank economist would have absolutely no incentive to directly attack the Canadian government. It is doing it because the facts are backing up what it says, that the quality of jobs in Canada has declined, that full-time jobs are being replaced by part-time work, and that low-paying jobs are replacing high-paying jobs.
The minister just said that the reason he has not been in the House lately is that he has been busy because he has to do a budget. Being a member of Parliament is part of being the Minister of Finance. I remember when ministers of finance actually showed up in the House to respond and, at the same time, wrote budgets that were balanced when oil was less than $50 a barrel.
How does it actually contribute to certainty in the Canadian economy to have the Minister of Finance delaying a budget? Suncor is not saying it cannot produce its quarterly reports because of this uncertainty with fluctuating oil prices. Why is the minister creating uncertainty through his abdication of responsibility to do his job to present a budget?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Speaker, since the member opposite is interested in the CIBC report, let me quote what it said. It said that “...for the past year, the number of full-time jobs rose twice as fast as the number of part-time jobs...”.
Philip Cross, who I quoted earlier, said, “In fact, the net worth held by the middle income quintiles rose faster than the top income quintile in Canada...”.
Here is what the Center for American Progress said in a report that the member for Toronto Centre contributed to: Canada has “experienced continuing middle-income growth, while for many [countries] it has halted”. The report also notes that Canada has maintained a close link between productivity and job growth despite low wage competition.
As I said, it is rich for the NDP and Liberals to be criticizing our record on job creation. They voted against every job creation measure our government has put forward, including freezing EI rates, tax cuts for manufacturers, $70 billion in stable and predictable job-creating infrastructure, and more. We are focused on creating jobs and growth. The Liberal leader is pushing a high-tax, high-debt agenda that would threaten jobs and set working families back.
Opposition Motion—Government InvestmentsBusiness of SupplyGovernment Orders
North Vancouver B.C.
Conservative
Andrew Saxton ConservativeParliamentary Secretary to the Minister of Finance
Mr. Speaker, perhaps the minister could share with us what our government is doing to help Canadian families make ends meet. We all know that the cost of raising a family these days is at a record high, and it is important that Canadian families have assistance in this regard. Also, what are we doing to help seniors make ends meet? It is also difficult for many seniors.
Perhaps the minister can share with us what we are doing to help Canadian families and seniors make ends meet.
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Speaker, as members know, the Prime Minister announced a very important family tax package that will advantage every one of four million Canadian families. The average benefit will be $1,100. The majority of the benefits will go to low- and middle-income families, with 25% going to families earning less than $30,000 a year. Of course, this follows income splitting for seniors. It also includes the universal child care benefit, which will increase from $100 to $160 for families with children under six, and a new $60 a month for every family with children between six and 17. All four million families will benefit, and we are very proud of this progressive measure.
Hélène LeBlanc NDP LaSalle—Émard, QC
Mr. Speaker, I listened carefully to the speech given by the Minister of Finance, who seems to be in denial about the successive reports showing that the economic situation is getting worse, particularly when it comes to employment.
CIBC's latest report comes after a recent OECD report indicating that the gap between the rich and poor in Canada keeps growing increasingly fast. That is a concern raised by the OECD.
Also, recently on International Women's Day, it was noted that the wage gaps between men and women are still growing.
Does the minister realize that the measures put forward by the Conservatives are only widening the wage gaps between the rich and poor and between men and women?
Joe Oliver Conservative Eglinton—Lawrence, ON
Mr. Speaker, our Conservative government has provided unprecedented support to low-income Canadians.
We have removed over one million low-income Canadians, including 380 seniors, from the tax rolls. We have increased the amount that Canadians can earn tax free. We created the working income tax benefit, and we increased the guaranteed income supplement for the most vulnerable Canadian seniors.
However, every time, the Liberals and New Democrats have voted against these measures and against low-income Canadians.
Under our government, the share of Canadians living in low-income families is the lowest it has been in 30 years. Low-income families have seen a 14% increase in their real after-tax income since 2006.
Over 40% of all taxpayers pay no net tax. It is no wonder the federal tax burden is at its lowest level in 50 years.
Tyrone Benskin NDP Jeanne-Le Ber, QC
Mr. Speaker, I am pleased to stand to speak to this issue.
I would also like to take a moment to say that I will be splitting my time with the member for Parkdale—High Park.
The formulating of a budget is a matter of making choices. We choose to invest and to divest in certain areas. These choices need to be based on what communities need and what will serve our communities. This is why it is imperative that when formulating the budget in 2015, we choose with the aim of creating and developing sustainable, full-time jobs.
One of the most important areas is support for small and medium-sized businesses and support for entrepreneurship to enable these entrepreneurs to become well-paying, long-term employers.
I would like to take a moment to underline that small and medium-sized businesses are responsible for as much as 80% of employment in the private sector. This number was taken between 2002 and 2012. As well, small and medium-sized businesses are largely responsible for local employment in their communities. Generally, when Jane and Jack look for a job in their community, they go knocking on the doors of the small businesses, the mom and pop stores and restaurants in their communities. They are the ones that hire those individuals.
Small businesses employ nearly eight million Canadians, and 98% of all businesses in Canada are small businesses. A small business is one that employs fewer than 100 employees.
This is an area of the economy that needs to be supported and strengthened. This is an area where the policies the NDP is advocating and setting forth, and that our leader very strongly supports, will help turn the economy around in this country and will see the economy working for Canadians.
There are currently 1.3 million unemployed Canadians. This is something we need to recognize. We hear members on the other side talking about net new jobs. Their numbers are put in such a way that these jobs are full-time jobs. However, we all know that more than 80% of these jobs are part-time jobs and short-term jobs. What we are looking for is long-term employment, permanent employment, and full-time employment.
Another aspect of a strong Canadian economy is diversification. We have seen the Conservative government put a whole lot of energy into the resource extraction sector, to the detriment of the manufacturing sector.
Saint-Henri and Griffintown are two neighbourhoods in my riding of Jeanne-Le Ber with a history in manufacturing. One of the biggest heros of the time, Charles McKiernan, also known as Joe Beef, fought alongside workers in the southwest borough for wage equality and the rights of female workers.
Again, this is something we need to address in the 2015 budget: income inequality.
Manufacturing has accounted for 11% of Canada's GDP. It employs over 1.7 million Canadians. However, it has been hard hit. We have seen over 400,000 jobs lost in the manufacturing area, and this has led to an even greater disparity in income. We have seen income inequality spiralling out of control. The top 1% now see their incomes increasing, while 99%, which are middle-class families, have seen their incomes decrease over the last 35 years.
We need to act on concrete measures that will help the economy turn around. The NDP has some of those concrete measures: cutting small-business tax rates from 11% to 9%; supporting innovation; and making sure that small businesses and medium-sized businesses have the means to continue to employ, grow, and contribute to their communities. We need to create a tax credit to make sure that it is affordable for small and medium-sized businesses to upgrade equipment so that they become more competitive and more able to keep up with what is going on in their industries. We need to make sure that Canada takes its place as an innovator and as a creator of new jobs in small business and in entrepreneurship.
Kevin Lamoureux Liberal Winnipeg North, MB
Mr. Speaker, I want to take this opportunity to emphasize an area in which I think the government has really messed up. That is the area of infrastructure building. Building Canada by investing in infrastructure is something that has been very important not only to me but to many members of my caucus. The Liberal Party recognizes that the government has had a substantial decrease, some 90%, in the actual amount of money being spent on infrastructure, at a time when we should be having money. Investing in infrastructure generates the types of valuable jobs Canadians want government to be pursuing and encouraging and developing as government policy.
I wonder if the member might want to provide some comment on how important investing in infrastructure is, which means building our country and providing the improvements and jobs that are so needed today.
Tyrone Benskin NDP Jeanne-Le Ber, QC
Mr. Speaker, the points I made in my remarks are some of the aspects of what we need to regain strength in our economy and to regain stability. Infrastructure investment is something that is important. Again, these things help enable small businesses do the work they need to do. Having bridges and infrastructure in place that allow goods to get from one place to another is truly important. Yes, one cannot deny the importance of the work opportunities from infrastructure investment in the economy.