House of Commons Hansard #199 of the 41st Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was families.

Topics

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:30 a.m.

NDP

Matthew Kellway NDP Beaches—East York, ON

Mr. Speaker, I very much appreciate my colleague's distinction between this budget being an economic budget versus a political budget.

As the infrastructure critic for our caucus, I looked very closely for new infrastructure money, and there is none but for the curious Canada 150 community infrastructure program. The program is not spelled out in the budget itself. It states that the government will announce further details about the program over the coming months. I would note that over the coming months we are heading into an election. That community infrastructure program looks far more like a political action plan than an economic action plan.

I would ask the member how responsible he feels it is to put something like that in a budget when cities and communities across the country are crying out for federal support to deal with infrastructure deficits that amount to tens of billions of dollars.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:30 a.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, that is a good question. Obviously, in the limited time I had for my speech, I did not get around to addressing the matter of infrastructure very much. I am glad to do so now.

Again, the Conservative government is using infrastructure as a political tool. I have two examples. The first is from 2012, when the Minister of Infrastructure, Communities and Intergovernmental Affairs announced the new building Canada program—not funding, just the new program—with great fanfare. The government said that the municipalities could use the communities fund, not the gas tax, as they saw fit, particularly for infrastructure projects related to sports and culture and so forth.

In 2013, when the conditions for the building Canada program were presented, the municipalities were denied the chance to use this fund for their own needs, particularly the municipalities that had already addressed their needs in terms of roads or water and wastewater systems. That is the situation the mayor of Rimouski finds himself in today. He was told he could use this fund, which is generally shared one-third, one-third, one-third between the federal, provincial and municipal governments. Today, Ottawa claims to know more than the mayor of Rimouski about what that municipality needs. Ottawa is telling the mayor that he can use the gas tax, but that will not be nearly enough to pay for the projects for a city like Rimouski. That is the first example.

The second example is that the Minister of Infrastructure, Communities and Intergovernmental Affairs still claims that this is a major investment program. Sure, there is funding for public transit in big cities such as Toronto, Montreal and Vancouver. However, to start with, there is very little funding and it just does not cut it. Honestly, the funding for the first year for the City of Toronto might be enough for half a subway station.

That the government is boasting about investing in infrastructure in this manner is beyond comprehension. The use of the 150th celebrations as a political tool is also reprehensible. The Conservatives will pay for that in 2015.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:30 a.m.

NDP

Christine Moore NDP Abitibi—Témiscamingue, QC

Mr. Speaker, since my colleague is from a fairly rural area, like mine, does he think that there is anything in the budget for rural areas and that it takes into account their economic reality, or will there only be crumbs left, or nothing at all?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:30 a.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I would like to thank my colleague from Abitibi—Témiscamingue. We represent two regions that are very far from one another, but that have much in common.

Yesterday, I was asked the same question when I was interviewed by Radio-Canada on the program Pas de midi sans info. When asked who came out on the losing end of this budget, I answered that it was the regions.

Big cities are getting a little bit of money because they need it. However, as I said, it is not enough. There is nothing to help the regions with their needs, though, or to compensate for the major cuts made by this government over the past four years.

The effects of these cuts on the regions have been disproportionate. Funds allocated to the Economic Development Agency of Canada for the Regions of Quebec were not disbursed—the situation is not very different in other regions of Canada—and the reform of employment insurance has had a major impact on the regions, where there is always a large proportion of seasonal jobs, especially in tourism, agriculture, forestry and the fishery. The government is doing nothing to remedy the situation that it has created in the regions.

There is absolutely nothing in the budget to address regional realities, like my region's realities. We are home to the Technopole maritime du Québec, in the scientific field. That institution needs federal investments, because current investments are clearly insufficient. Regions like the Lower St. Lawrence are being prevented from reaching their full potential and taking their place among the premier research institutions in the marine sector.

It is extremely unfortunate to see that this government is in no way using its capacity for investment, which would yield significant returns and help the regions develop. The government is washing its hands of the regions, and unfortunately, it is regions like the Lower St. Lawrence and Abitibi-Témiscamingue that are suffering.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:35 a.m.

Liberal

Francis Scarpaleggia Liberal Lac-Saint-Louis, QC

Mr. Speaker, I would like to ask the member a couple of questions.

The government says it is going to invest in infrastructure, but those investments will not really begin for a few years. It is possible, however, that the economy could recover in a few years, especially if the government changes, and interest rates could go up.

Would my colleague agree that the government's approach lacks some wisdom, given that, with interest rates so low at the moment, now is the time to invest?

It is possible that in the future, as former finance minister Jim Flaherty said, interest rates could go up, especially if there is inflation, since there is a lot of money in the system. The central banks have put a lot of money into the system, so inflation could resume some day.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:35 a.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Mr. Speaker, I do not necessarily want to respond to hypothetical questions, but the member for Lac-Saint-Louis makes some interesting points.

Inflation is at a record low right now. Regardless of inflation and interest rates, it is recognized that the best investments are investments in infrastructure, because infrastructure gives the best returns in terms of multipliers.

In my opinion, the government is headed in the wrong direction by limiting the municipalities' ability to choose their own projects and limiting necessary investments in public transit, for example. The investments being made are not enough to meet the needs in this area, which is something that has received a lot of criticism from the Federation of Canadian Municipalities.

The government is also headed in the wrong direction in its relationships with certain provinces, including Quebec, with which it has not yet even signed the building Canada agreement.

Right now, Quebec municipalities have access only to the excise tax on gasoline. They do not yet have access to federal funding for major projects or the community improvement fund. That is extremely harmful to Quebec and the provinces that have not signed the agreement.

We are asking the government to expedite the process and sign the agreements so that the whole country has access to the building Canada program.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:35 a.m.

Conservative

Peter Kent Conservative Thornhill, ON

Mr. Speaker, I will be splitting my time with the member for Edmonton Centre.

I am delighted to rise in the House today to voice my support for economic action plan 2015 to support jobs and growth, to support families and seniors, to ensure that communities prosper and to ensure the security of Canadians.

Despite the slicing and dicing by the opposition and some of the carping, complaining and hairsplitting by some of the more partisan members of the media party, I just want to say again in this House that the government has fulfilled its commitment to balance the budget. Economic action plan 2015, as I said, despite the slicing and dicing and the carping by the opposition, the budget is balanced and it has been done using the fiscal tools at the government's disposal. Economic action plan 2015 will create jobs, growth and long-term prosperity.

As we promised, this is a balanced budget that reduces taxes for hard-working individuals and families.

I would add that this is a prudent budget. It is a prudent plan. It is a principled plan that will see Canadians more prosperous, more secure and even more confident in our country's place in the world.

This morning I would like to speak to those elements of the budget that are important in my constituency of Thornhill, which sits just atop the northern city limits of the Canadian metropolis of Toronto.

As this House knows, the government's long-term commitment to keeping taxes low is making life indeed more affordable for all Canadians. By reducing taxes year after year and enhancing direct benefits to Canadians, the government has given families and individuals a greater flexibility to make the choices that are right for them.

Canadian families and individuals will receive $37 billion in tax relief and increased benefits in 2015 as a result of actions taken since 2006. This includes measures announced by the Prime Minister in October 2014. On their own, the measures announced last October 30 will provide more than $4.5 billion in annual tax relief and increased benefits to all families and children under the age of 18. I repeat that these benefits will accrue to all families with children under the age of 18.

The proposed measures also include the enhanced universal child care benefit that will provide an increased benefit of $160 a month for children under the age of six, and a new benefit of $60 a month for children ages six through seventeen, backdated to be effective January 1, 2015. There is a $1,000 increase in each of the minimum dollar amounts that can be claimed under the child care expense deduction effective for the 2015 taxation year. The family tax cut, a federal non-refundable tax credit of up to $2,000 for couples with children under the age of 18, is effective for the 2014 taxation year.

The House will also recall that in his speech, the Minister of Finance referenced the fact that as announced on October 9, 2014, the government doubled the maximum amount of expenses that may be claimed under the children's fitness tax credit to $1,000 as of 2014, and made the credit refundable effective for the 2015 and subsequent taxation years. Parents are already taking advantage of the new $1,000 maximum limit as they, even now, complete their tax returns for 2014.

Also, given that the government recognizes that all Canadians are interested in increasing their physical fitness, to this end the government intends to establish an expert panel to study the potential scope of an adult fitness tax credit.

Moving from families with young children to our seniors, the government has again renewed its support for seniors in economic action plan 2015. As a result of actions taken to date by the government, seniors and pensioners are receiving about $3 billion in additional annual targeted tax relief. In particular, since 2006 the government has increased the age credit account by $2,000: $1,000 in 2006 and $1,000 in 2009. Based on these increases and adjustments for inflation, the age credit this year, tax year 2015, is just over $7,000, providing tax relief of up to $1,000 for eligible seniors.

We have doubled to $2,000 the maximum amount of income eligible for the pension income credit. We have introduced pension income splitting, which the opposition parties say they would revoke. I believe pension income splitting, which was the first phase and has been extended this year to families with young children, is providing benefits right across the country, and to folks in lower and middle income classes right across the board. Annually, over 2.2 million Canadians take advantage of pension income splitting.

As members will note, and as many seniors in my riding have communicated their satisfaction with, budget 2015 reduces the minimum withdrawal factors for registered retirement income funds. The old age security guaranteed income supplement programs and the Canada pension plan and Quebec pension plan form the first two pillars of Canada's three pillar retirement income system, but in order to supplement income provided by the first two pillars, many Canadians also rely on their own savings for income in their senior years.

I hope the opposition recognizes these benefits to families and seniors as they consider exactly how they will vote when the budget comes before the House for a vote.

There has been a great deal of talk from my colleagues across the way about funding for transit across the country. As we know, although some in the media, some in different parts of the country and some in the opposition seem not to have read what is quite clearly stated in the budget, economic action plan 2015 proposes to provide $750 million over two years starting in 2017-18 and $1 billion annually ongoing thereafter for a public transit fund. This is a guaranteed commitment to fund public transit across the country. Since 2006, the government has provided unprecedented support for public transit, committing close to $5 billion to date for public transit projects across the country. These are projects that have been identified as priorities by municipalities and their governments.

I see time is short, so I will just conclude by saying that given the fact that we are going to see quite a very different budget presented later today by the largest province in Canada, one which will reflect the gross mismanagement of that province's economy for the last several years, there is no fiscal imbalance in Canada. All governments have the capability, competence and capacity to balance their budgets, but as I said, not all governments have either the intent or the competence.

I hope my colleagues across the way will read very carefully the provisions in economic action plan 2015 and support this very important budget.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:45 a.m.

NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

Mr. Speaker, I have a short, very specific question for my colleague on his government's new passion for balanced budgets.

This government has spent seven years running deficits and tabling unbalanced budgets, and now, in 2015, it has discovered a passion for balanced budgets and has even proposed a law to mandate balanced budgets in the future, except in specific circumstances. For the past five years our country has been in a period of economic growth. We were not in a recession. Five of these seven deficits were after the 2008-09 recession. Could the member explain this new passion for balanced budgets, when this government posted seven consecutive deficits over the past seven years?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:45 a.m.

Conservative

Peter Kent Conservative Thornhill, ON

Mr. Speaker, my colleague seems to forget the international economic recession, and the measures that were taken by Canada to alleviate, respond to, and recover from that recession.

Indeed, we generated a historic deficit responding to the international recession, and we made a commitment at that time to pay it back, to eliminate the deficit and balance the budget as soon as was financially and responsibly possible. That is what my colleague sees in economic action plan 2015.

As I said earlier, we believe that all governments in this country have the capacity to balance their budgets, extraordinary events like the international economic recession aside, and those must be addressed. I heard some of the member's colleagues, including the NDP finance critic, talking enthusiastically about the legislation we have before this House regarding balanced budgets. I would hope the NDP supports that as well.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:50 a.m.

Liberal

Adam Vaughan Liberal Trinity—Spadina, ON

Mr. Speaker, I listened very closely to the transit announcement.

While we all welcome a federal presence on the file, the presence is the problem. Nothing is present this year; no money until 2017. The budget should not be called the 2015 action plan; it is the 2017 action plan.

The $1 billion does not arrive for years and years. What arrives in 2017 is $250 million. The funding formulas, which are constant across this country on transit, mean that for Ontario it is $80 million, and for the GTA, where we represent ridings, it is probably about $40 million, which means $20 million for the York Region and Durham and Pickering and everywhere else, including Mississauga, and it is about $20 million a year for the City of Toronto.

Twenty million dollars in the City of Toronto does not even buy a fleet of street cars. It does not build a subway station. It does not put track down. It is nothing. Twenty million dollars just does not pull its weight in transit.

If this money were allowed to be used for state of good repair, it would be making a contribution. Will the government allow these dollars, the $20 million, for state of good repair, when the $20 million will not build a new subway line, will not build a new street car line?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:50 a.m.

Conservative

Peter Kent Conservative Thornhill, ON

Mr. Speaker, I would note that the mayor of Toronto, along with the mayors of our other large metropolitan areas have all endorsed the transit plan in the budget.

The member was a member of the Toronto City Council when our government, in 2007, pledged for one-third of the cost of the Spadina subway extension, through my riding, through Thornhill into York Region.

That project is still not completed. It is years behind schedule for a variety of reasons I will not go into today. That money has not been spent. The money that the federal government pledged for the Sheppard LRT extension, as the Toronto City Council flip-flopped between subway—

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:50 a.m.

An hon. member

I did not.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:50 a.m.

Conservative

Peter Kent Conservative Thornhill, ON

Well, you did not flip-flop, but certainly the city did.

I think we have to realize that—

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:50 a.m.

NDP

The Deputy Speaker NDP Joe Comartin

Order, order. The member's time is up, and he should know not to address comments to other members of the House but to the chair.

Resuming debate.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

10:50 a.m.

Conservative

Laurie Hawn Conservative Edmonton Centre, AB

Mr. Speaker, I am happy to rise in support of economic action plan 2015, a budget that fulfills our government's promise to be back in the black in this year.

Pursuant to our long-standing commitment to responsible fiscal management, economic action plan 2015 will see the budget balanced, and Canadians can rest assured that Canada's fiscal house is in order. Under this plan, the deficit has been reduced from $55.6 billion at the height of the global economic and financial crisis to a projected surplus of $1.4 billion for 2015-16.

This government has lowered taxes every year since coming into office. In fact, since 2006, our government has introduced more than 180 tax relief measures. The overall tax burden is now at its lowest level in 50 years.

Canadian families and individuals have benefited from significant tax reductions that have given them the flexibility to make decisions that are right for them and not decisions that are made for them by bureaucrats. Canadians at all income levels are benefiting from the tax relief introduced by the government, with low- and middle-income Canadians receiving proportionally greater relief.

Canada's debt to GDP ratio is less than half the average of all G7 countries, making us the economic envy of most of the world. Indeed, real gross domestic product has increased more in Canada than in any other G7 country since the end of the recession. We have done this and much more without resorting to higher taxes and higher debt, as those across the floor would advocate. This budget is good news for Canada and Canadians today and tomorrow.

This will not surprise anyone who knows me, but I would like to focus my remarks on one group of Canadians for whom I have the utmost respect and commitment, our veterans.

The Government of Canada is dedicated to ensuring that veterans and their families receive the support they need, while understanding that there will always be more that we would like to do and more that we should try to do. With the implementation of the new veterans charter in 2006, the government significantly increased the range of benefits and services provided to ensure that disabled veterans not only receive compensation for the pain and suffering related to their disabilities but that they also receive support aimed at restoring their ability to function at home, in the community, and in the workplace.

With any new program, unintended gaps begin to appear, and it is the government's job to address those gaps effectively. No government moves as quickly as people would like. In truth, as a veteran, I wish we could have moved faster. That said, we have made significant progress with action on the recommendations of the unanimous report of the Standing Committee on Veterans Affairs tabled last June, and with more recent activities and announcements by the Minister of Veterans Affairs and his dynamic staff.

Since implementing the charter, the government has made important improvements to the new veterans charter to adapt it to the needs of veterans, allocating close to $5 billion in additional resources since 2006 to enhance veterans' benefits, programs, and services.

We established a minimum pre-tax income of $42,426 for veterans receiving the earnings loss benefit, which provides income replacement to disabled veterans to age 65. We introduced a new monthly supplement to help severely injured veterans who are permanently impaired and unable to return to gainful employment. We also increased the overall level of benefits provided to disability pension recipients by having the pension no longer offset other Veterans Affairs Canada and National Defence benefits, and a lot of the credit for that goes to a veteran named Dennis Manuge, who advocated tirelessly for years.

We expanded access to the funeral and burial program for younger veterans and we improved online services. We enhanced employment opportunities in the federal public service for veterans and Canadian Armed Forces personnel with the Veterans Hiring Act. We also expanded Veterans Affairs Canada's network of operational stress injury clinics to better serve veterans suffering from mental health conditions.

Building on progress to date, the government recently announced additional plans to invest in significantly expanded benefits and services for veterans and their families, reaffirming the government's ongoing commitment to veterans and their families. Beginning in March 2015, the government has announced a series of complementary improvements to the spectrum of benefits and supports available to veterans and their families.

Moderately to severely disabled veterans, those who need it most, will be provided with continued assistance in the form of a new monthly retirement income security benefit beginning at age 65 and continuing for life, and picking up where the earnings loss benefit leaves off. As of April 1, 2015, the permanent impairment allowance will be available to all Canadian Armed Forces veterans who have a permanent and severe disability, even if they do not require assistance to perform daily activities.

These lifetime financial benefits are designed to compensate for the loss of employment potential and career advancement opportunities caused by disabilities suffered while serving in the Canadian Armed Forces. Between the earnings loss benefit, the retirement income security benefit, and the permanent impairment allowance, moderately to severely injured veterans and their families will be assured of the necessary financial resources to maintain their quality of life in their retirement years.

The government also wishes to recognize the important contribution made by Canadian Armed Forces reserve force members; 25% to 30% of our combat commitment in Afghanistan was filled by reservists.

Therefore, economic action plan 2015 confirms modifications to the earnings loss benefit to ensure that part-time reserve force veterans have access to the same level of income support as regular and full-time reserve force veterans while they rehabilitate and transition to civilian life.

Previously, a severely injured part-time reservist would receive a minimum of $24,300 from earnings loss benefit per year. That will increase by 75% to a minimum of $42,426 per year. This is in addition to other benefits this veteran may receive under the improved new veterans charter.

Family members and informal caregivers are very often faced with helping to take care of seriously disabled veterans, and those dedicated people deserve our help. To better recognize this important contribution, economic action plan 2015 confirms funding to create a new family caregiver relief benefit to seriously disabled veterans requiring daily assistance from an informal caregiver. The new benefit will provide a tax-free annual financial support of $7,238 to eligible veterans so that they can purchase services to allow respite for an informal caregiver.

The disability award or lump sum kicks in after the final assessment of disability is made. Before that point, an injured veteran would probably have undergone a lot of pain and suffering through treatment and rehabilitation, such as recovery from surgery.

To recognize that, economic action plan 2015 confirms funding to create a new critical injury benefit. This new benefit will provide a tax-free lump sum amount of $70,000 up-front to compensate eligible Canadian Armed Forces members and veterans for the immediate consequences of very severe traumatic injuries sustained in the line of duty.

As part of our government's commitment to service excellence for our veterans and families, we recognize that veterans suffering from severe and complex disabilities need access to ongoing professional assistance with managing their care.

This critical element is provided by Veterans Affairs Canada case managers, and we are decreasing the ratio of veterans to case managers from 40:1 to 30:1, by hiring more than 100 permanent case managers, who will have more time to provide dedicated one-on-one support.

We also recognize that it sometimes takes too long to get disability benefits started because of backlogs in the approval process.

Economic action plan 2015 confirms funding to hire more than 100 new disability benefits staff to ensure veterans receive faster decisions on their applications. Faster decisions on disability benefit applications will in turn expedite access to other financial benefits, health care, and mental health treatment.

To further support rehabilitation of our veterans, the government has expanded vocational training in order to provide eligible veterans with the flexibility to pursue new career directions that are not directly linked to skills developed during their military service.

The budgetary process for all this is not simple and must comply with public sector accounting standards, which have been in place for many decades.

As such, the budgetary projections reflect the accrued value of future benefit payments to eligible veterans, which must be recognized up-front.

Consistent with that process, the value of the overall commitment that the government is making to veterans through these measures is estimated at $2.5 billion over six years, starting in 2014-15, and these amounts have been incorporated into the government's budgetary projections.

By recording $2.5 billion at this stage, the government is setting aside funding to ensure that enhanced benefits will be available to veterans and their families in the years ahead. The annual cash value of benefits provided to veterans will significantly increase over time.

For example, as more modern-day veterans reach age 65, they will become eligible for financial support under the retirement income security benefit. People need to understand that all these figures are estimates and that Veterans Affairs benefits are demand-driven. That means that no matter the level of demand, it will be met.

That is our solemn commitment to veterans and their families, backed up by legislation. It is no secret that this has been a difficult file, but it is absolutely not for lack of commitment to veterans and their families by every single member of this place and the other place.

Veterans issues will always be a work in progress, and there will always be more work to do as circumstances change The key word is progress, and with economic action plan 2015, our government is continuing that progress. I am proud of that, and I would welcome questions from my colleagues.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

11 a.m.

NDP

Fin Donnelly NDP New Westminster—Coquitlam, BC

Mr. Speaker, I listened to my hon. colleague's comments with interest, and the member mentioned veterans in his speech.

I am wondering if he will agree that the government has a moral, social, legal, and fiduciary obligation to provide equitable financial compensation and support services to past and active members of the Canadian Armed Forces who have been injured or disabled or have died as a result of military service, and to their dependants, which the Government of Canada is obligated to fulfill.

Does the member agree that this social covenant with our veterans exists?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

11 a.m.

Conservative

Laurie Hawn Conservative Edmonton Centre, AB

Mr. Speaker, I thank my hon. colleague for his very transparent question. In fact, we have been doing that since Robert Borden's speech in 1917, we have continued to do that until today, and we will continue to do that tomorrow, regardless of where it is written or not written. That is an obligation the government has. Every government of every stripe has tried to fulfill that. As I said, there is always work to do. It will always be a work in progress.

In fact, the wording in Bill C-58, and I am sure my hon. colleague has read Bill C-58, addresses that and formalizes it, if it makes people more comfortable that it formalizes in language what has in fact been happening for decades and will continue to happen.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

11 a.m.

Liberal

Sean Casey Liberal Charlottetown, PE

Mr. Speaker, I would like to thank that member for his speech and for his service to this country. I know that he is sincere when he talks about the interests of veterans. He must at times be frustrated that he is swimming against the tide in that caucus. I also appreciate his reference to Dennis Manuge, whom the current government fought tooth and nail in court until the injured veteran won in court and compelled the government to take action.

The member referenced case managers and disability claims adjudicators. I want to focus my question on those positions that are now being added.

I have two questions. First, case managers in the past worked from district offices for veterans. The current government has closed those district offices. Does the member continue to stand by the decision of the government to close district offices?

Second, is the fact that this budget has announced 100 new positions for case managers and 100 new positions for disability claims adjudicators tantamount to an admission that the Conservatives cut too deep?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

11:05 a.m.

Conservative

Laurie Hawn Conservative Edmonton Centre, AB

Mr. Speaker, as far as the tide in this caucus, there is no tide. There is not a single member of this House or of the other place who is not completely dedicated to the interests of veterans and their families. That includes every member on this side, every member on that side, and every member in the red chamber as well. We need to stop that BS. It is just not true.

With respect to adjudicators and case managers, it is not an admission of anything. It is an admission that we are continuing to try to do more and more as we make progress in serving our veterans. In 1938 we had no idea that we would have hundreds of thousands of World War II veterans. Fifteen years ago we had no idea that we would have thousands of Afghanistan veterans. In 20 years we will look back and say that 10 years ago we had no idea that we would have thousands of veterans from whatever the new situation is.

The government adapts, as every government has tried to do, Liberal or Conservative, in the best interests of veterans. It is an ongoing process. It will always be a work in progress. To suggest that there is some lack of commitment on the part of anyone in this House is simply wrong and offensive.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

11:05 a.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, the hon. member directed most of his comments to veterans, but I know he has a long career and interest in defence spending. I wonder if he cares to comment.

We hear a great deal from Conservative members that there was something called the “decade of darkness”, but the actual figures do not show that light has dawned. This budget, at pages 322 and 323, says that defence spending in the National Defence budget would start increasing, but that increase would start in 2017.

I wonder if the hon. member is concerned that the Department of National Defence is over-stretched, with missions in Iraq, Syria, and now Ukraine, and has fallen below the per capita, and in fact, the percentage of GDP spending on defence compared to any of our industrial country allies.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

11:05 a.m.

Conservative

Laurie Hawn Conservative Edmonton Centre, AB

Mr. Speaker, the premise of that is only partially correct. It is not true that we have fallen below all of our industrial allies.

As a military member, sure I would love to have more defence spending, but the fact is that every government has a lot of legitimate calls on the treasury. There is a legitimate balance. We would bring in an increased accelerator, going up to 3%, which would ensure that the military has more funding year over year moving forward.

We ask a lot of the military. It does extremely well with resources that will always have limitations. I lived through that for 30 years, and we did an awful lot. We would love to have more, but the military does a great job, and we are going to support it every step of the way as best this government possibly can.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

11:05 a.m.

NDP

Fin Donnelly NDP New Westminster—Coquitlam, BC

Mr. Speaker, I am pleased to rise in the House today to address the current Conservative government's 11th, and hopefully final, budget.

Mr. Speaker, I will also be splitting my time with the hon. member for St. John's East.

After a decade of Conservative government, middle-class families are working harder than ever yet falling further behind. Canadians spent the winter waiting for a plan focused on their priorities: giving their kids the best possible start in life and creating good jobs to support their families. Yet instead of presenting a real plan to invest in middle-class families feeling squeezed, the Conservatives have presented a perversely distorted Robin Hood budget, taking from the poor and giving to the richest Canadians.

Budget 2015 would stubbornly move ahead with a plan to spend billions on measures like income splitting for the wealthiest few, a doubling of the tax-free savings account contribution limit, and tax loopholes for CEOs, measures that would overwhelmingly help those who need it least.

At the same time, the budget fails to provide a helping hand for parents looking for child care, fails to lower the retirement age back to 65 for Canadian seniors, and fails to reinstate the minimum wage for federal workers.

The Conservatives' unfair income-splitting scheme would take billions from the middle class and give it to the rich; 85% of Canadians would get nothing at all. The Parliamentary Budget Office has highlighted this disparity, noting that only the wealthiest Canadians would benefit from the Conservatives' income-splitting gift. Even Conservatives are critical of the scheme, with Conservative insider Michael Taube publicly equating income splitting to “state-run socialism for the wealthy”.

The doubling of the TFSA contribution limits would just create more tax loopholes for the wealthiest, while ordinary Canadians working hard to pay the bills would not even be able to take advantage of it. In fact, most low- to middle-income Canadians cannot afford to double their contributions to the TFSA, with fewer than 16% of working Canadians maximizing contributions under the current limit, according to the recent Broadbent Institute report.

Conservatives know that the expansion of the TFSA would be unsustainable and that their plan would be a huge burden on future generations, with indications that doubling the limit could cost $15 billion a year within a few decades. The finance minister admitted as much when he stated that we should “leave that to [the Prime Minister's] granddaughter to solve that problem”.

New Democrats oppose placing this financial burden on the backs of future generations for the sake of the wealthiest Canadians. It is morally unconscionable that the finance minister expects his granddaughter's children to clean up the financial mess his government is intentionally leaving.

Speaking of leaving a mess to future generations, the budget shockingly makes no mention of the environment or climate change. It offers little support for first nations or coastal communities, and its transit commitments would not start soon enough or go far enough to meet the growing challenges facing Canada's urban centres.

Budget 2015 also demonstrates, once again, that the Conservatives take B.C. for granted. For instance, New Democrats have repeatedly urged the Conservative government to reverse cuts to marine safety by reversing the Conservatives' closure of the Kitsilano Coast Guard base and cuts to Marine Communications and Traffic Services centres, but the budget has failed to do that.

The budget also fails to address B.C.'s need for significant investments in housing and infrastructure, providing no additional funding for new affordable housing or roads or bridges.

Canada's New Democrats have presented a significantly different vision that would ensure a prosperous long-term future for our country by proposing practical steps that would help fix the damage done by the current Prime Minister. They would create good jobs and opportunities for families, new supports for small businesses and manufacturing, a $15 federal minimum wage, and public, affordable, accessible child care.

There are currently 900,000 children in Canada whose parents lack access to quality, affordable child care spaces. In many parts of the country, parents face monthly child care bills in the thousands of dollars.

Canada's New Democrats have presented a plan to create or maintain one million affordable child care spaces across Canada to ensure that parents do not pay more than $15 a day for a child care space. Our plan would build on the successful child care model in Quebec, where research from economist Pierre Fortin showed that affordable child care helped 70,000 mothers join the workforce and boosted the economy by $1.75 for every $1 invested by the government. That is a plan that makes sense for families and for the economy.

Canada's New Democrats are also committed to making life more affordable for Canadians by raising the federal minimum wage to $15 an hour. Under the Prime Minister, Canadian families are working harder than ever but are falling further behind. The Liberal government before the Conservatives eliminated the minimum wage for federally regulated workers in 1996, and the Conservatives have done nothing to boost wages since then.

The introduction of a $15 an hour federal minimum wage would help fight growing income inequality and would provide leadership to increase standards for workers in all sectors of the economy in all regions in Canada. All Canadians who work hard and play by the rules should be able to make a decent living. Restoring a federal minimum wage would help make life more affordable for many workers and would help build a fairer, healthier, and more sustainable society.

New Democrats also understand the importance of increasing productivity by making smart investments in our roads, bridges, and public transit to help families get around faster and help Canadian businesses get their products to their customers, yet this budget would not do anything for local roads and bridges. It contains no new spending for new affordable housing and nothing for tourism, sports, recreation, or cultural infrastructure.

While the budget contains new money for public transit projects, it is a pittance compared to what is required to meet the growing challenges faced by municipalities in the Lower Mainland, like Coquitlam, New Westminster, and Port Moody. Most worrisome, investment is contingent on municipalities borrowing money from private lenders, requiring them to use “alternative financing and funding mechanisms involving the private sector”. This raises real concerns about whether the stringent rules would once again keep infrastructure investments from getting out the door in communities that remain opposed to public-private partnerships.

On a positive note, after a relentless NDP campaign, the government decided to use the copy and paste function and inserted our proposal to lower the small business rate from 11% to 9% to create good local jobs. The government inserted that into its budget. Whether they are local coffee shops, hair salons, or bakeries, small businesses continue to be the engine of our local economies and the backbone of thriving, prosperous, and sustainable communities. It is these small-business owners who create jobs, employ our neighbours, and support our charities. That is why the NDP has prioritized supporting small businesses as part of its practical plan for jobs and the economy.

Why then would the government make incremental reductions that would not be fully realized until 2019 instead of providing immediate help for Canada's hard-working small-business owners, who create 80% of all new jobs in this country? Instead of offering immediate tax relief to the richest 15% of Canadians through the government's income-splitting scheme, would it not make more sense to provide this immediate tax relief to companies that are already creating good jobs and investing in our communities now?

In conclusion, Canada's economy is only strong when it has a thriving middle class. This budget would do nothing to address Canada's struggling middle class. Instead, it would focus on handouts to the wealthiest 15% of Canadians.

The Leader of the Opposition is a principled leader with the experience and the plan to help grow the middle class, create good jobs, protect our environment, and fix the damage done by the Prime Minister and his Conservative government.

In October, Canadians will have a historic opportunity to support the NDP's practical plan for Canada when they reject the Conservative approach and elect the first-ever federal New Democrat government.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

11:15 a.m.

Conservative

Bradley Trost Conservative Saskatoon—Humboldt, SK

Mr. Speaker, I enjoyed listening to my hon. colleague speak and have two basic questions for him.

The New Democrats are suggesting raising the federal minimum wage to $15 per hour. If politicians can dictate wages without any regard to the economics, why stop at $15 an hour? Why not $25 or $30 an hour?

The member kept referring that the maximization of the TFSAs would only benefit the rich. My second question is in many ways much more personal.

My grandma is in a nursing home. She is 98 years old, turning 99 this summer. She maximizes her TFSAs every year. Her income, though I am not sure what it is, is under $20,000 a year. Of the people who maximize TFSAs, 60% have an income under $60,000 a year. Why does the hon. member want to raise taxes on grandma who is in a nursing home and who makes less than $20,000 per year?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

11:20 a.m.

NDP

Fin Donnelly NDP New Westminster—Coquitlam, BC

Mr. Speaker, there currently is no minimum wage for federally regulated workers. The previous government to the Conservatives, the Liberal government, eliminated the federal minimum wage in 1996. The Conservatives have not done anything on that front, so we feel a measured response to increasing it to $15 an hour would lift those federally regulated workers to a minimum of $15 an hour, which is a basic level and not even the living wage that many organizations across the country call for.

On the issue of investments for seniors, we believe the New Democrats have the best comprehensive plan for seniors in the country. In terms of the TFSA, raising the contribution level would not allow most seniors to contribute. They unfortunately do not have that kind of disposable cash to put into investments because they have to put it toward rent, food, prescription drugs and health care. At the end of paying all of that, they unfortunately are unable to invest in those kinds of wealthy schemes. It would be nice for all of us to take advantage of that if we were in the position to do so.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

11:20 a.m.

Liberal

Adam Vaughan Liberal Trinity—Spadina, ON

Mr. Speaker, I listened with interest to the statements made about small business. There are different types of small business. There are multimillionaire lawyers who are self-incorporated and are consultants to other multimillion dollar corporations. They are a small business because there is one employee in their corporation. Cutting their taxes is cutting taxes for affluents, but there are also small businesses that employ 10 people or 15 people, such as a corner store or a small manufacturing base. Cutting their taxes creates jobs and opportunities for other Canadians.

Would the NDP support a plan that tied the small business tax cut to job creation rather than simply allowing affluent consultants pay less tax?