House of Commons Hansard #202 of the 41st Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was tax.

Topics

The BudgetOral Questions

3 p.m.

Conservative

Joyce Bateman Conservative Winnipeg South Centre, MB

Mr. Speaker, last week our Minister of Finance tabled a balanced budget in this House. Now that we have balanced our budget, we will help middle-class families balance theirs through new measures, like the enhanced family tax cut, the home accessibility tax credit and the universal child care benefit, which will benefit 100% of families with children.

Could the Minister of State for Social Development please inform this House what she is hearing everyday Canadians say about our new measures to support them?

The BudgetOral Questions

3 p.m.

Portage—Lisgar Manitoba

Conservative

Candice Bergen ConservativeMinister of State (Social Development)

Mr. Speaker, recently I met with Emmanuel. He prepares taxes for everyday Canadian families. He said that the best thing about his job over the last few weeks is the look on the faces of middle-class Canadians when they see their tax return because of our family tax cut and our expanded benefits.

The difference between this government and the New Democrats and the Liberals is we believe this money belongs to Canadians. The Liberals and the New Democrats think that money belongs in the government coffers and that somehow it is our revenue. No, it is Canadians' money and we believe it should be in their pockets.

Public SafetyOral Questions

3:05 p.m.

Independent

Maria Mourani Independent Ahuntsic, QC

Mr. Speaker, despite this government's smoke and mirrors about the fight against terrorism and despite the peanuts it has allocated to law enforcement agencies, there is absolutely nothing in this budget to prevent violent extremism, to support research, or to combat radicalization in the community or in our prisons.

On the contrary, we learned that the Kanishka project will not be renewed. While many countries in the world have no problem investing in these areas, Canada is still lagging behind.

Will the Minister of Public Safety and Emergency Preparedness take real action—yes, real action—and propose a real policy to combat violent extremism?

Public SafetyOral Questions

3:05 p.m.

Lévis—Bellechasse Québec

Conservative

Steven Blaney ConservativeMinister of Public Safety and Emergency Preparedness

Mr. Speaker, on the contrary, our government has long been investing in prevention. For example, there is our counterterrorism strategy, which the New Democrats unfortunately opposed.

My colleague may think that $300 million is peanuts, but I think that money is crucial to our police forces, our intelligence agencies and our border services.

Furthermore, I invite my colleague to examine the budget, which will improve security on the Hill. We will continue to invest in prevention through our programs to prevent and combat crime.

Let us be serious about the fight against terrorism. I urge all members to support the implementation of measures to protect the public.

The EconomyOral Questions

3:05 p.m.

Independent

Massimo Pacetti Independent Saint-Léonard—Saint-Michel, QC

Mr. Speaker, oil prices have done nothing but drop recently. Canada knows how important the oil industry is and how the price of oil can affect our finances, given that every dollar less costs the government $150 million.

In budget 2015, the Minister of Finance predicts that the price per barrel will rise from $54 in 2015 to $78 in 2019. However, in the 2014 budget, there was no mention of the fact that the price of oil would drop in 2015.

How can the minister predict this rise in oil prices when the world situation is so unstable? Is the minister balancing his budget by manipulating the forecasts?

The EconomyOral Questions

3:05 p.m.

Crowfoot Alberta

Conservative

Kevin Sorenson ConservativeMinister of State (Finance)

Mr. Speaker, the economic outlook in budget 2015 is based on an average of private sector forecasts, as has always been the case since the mid-1990s. This year was no different. Private sector economists agree that this was a prudent basis for the economic forecast.

Our balanced budget, low-tax plan will create jobs and economic growth for Canadians with measures like cutting the small business tax rate to 9%. We know that the opposition parties would take those away.

Canadians understand they are better off with this Conservative government.

Presence in GalleryOral Questions

3:05 p.m.

Conservative

The Speaker Conservative Andrew Scheer

I would like to draw the attention of hon. members to the presence in the gallery of Reginald Daws, member of the Air Force, who is receiving today the Royal Canadian Air Force Member of the Year award.

Presence in GalleryOral Questions

3:05 p.m.

Some hon. members

Hear, hear!

Oral QuestionsPoints of OrderOral Questions

3:05 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I want to follow up on the question from the member for Hamilton Mountain and the comments that were made by the member for Rosemont—La Petite-Patrie.

As you know, Mr. Speaker, the Prime Minister is responsible for the executive branch of government. He alone is responsible for the quality of appointments, whether they are for the ministry or parliamentary secretaries. Canadians definitely deserve answers when the opposition asks the Prime Minister to account for the quality of those appointments.

I would like to say very clearly that Canadians deserve answers, but they are not getting them from the Conservative government. However, I would ask you to consider and allow the questions.

Oral QuestionsPoints of OrderOral Questions

3:05 p.m.

Conservative

The Speaker Conservative Andrew Scheer

I appreciate the member raising this point. As he knows, I have already ruled on the matter.

The questions as I heard them had nothing to do with the executive branch of government nor with the administration of government. They had to do with a now private individual, a former member of the House. The member may be interested and may wish to ask the questions, but those must be done outside of question period, which as he well knows, is for the purpose of holding the government to account for actions of government, government departments, government spending and things like that.

I have given several rulings on this matter, including a very comprehensive ruling in January or February 2014. I can double-check for the member and I would be happy to send it to him.

Members are given a great deal of latitude to pose their questions, and I am sure that he and his team will find ways to use their time for questions to hold the government to account for actions of the government, but not of private citizens or things that are outside the purview of government.

The House resumed consideration of the motion that this House approve in general the budgetary policy of the government and of the amendment.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:10 p.m.

Conservative

The Speaker Conservative Andrew Scheer

The hon. member for Whitby—Oshawa has seven minutes left for her remarks.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:10 p.m.

Conservative

Pat Perkins Conservative Whitby—Oshawa, ON

Mr. Speaker, economic action plan 2015 proposes to increase the tax-free savings account annual contribution limit to $10,000. Whether it is saving for retirement, the purchase of a home, or starting a business, Canadians can greatly benefit from the wide range of tax-free investment options that the TFSA is offering them. I am happy to say that there are now 11 million Canadians who have opened up accounts to save for what matters to them.

Support for Canadians and their families is best complemented with smart measures like relief for job-creating businesses.

First, we must not forget that small businesses are the backbone of our economy and they make invaluable economic contributions. Our government is proudly keeping its promise of delivering measures that help foster job creation for small businesses, which make up 50% of Canada's total private sector workforce. That is why economic action plan 2015 proposes to reduce the small business tax rate to 9% by 2019, which is the largest tax rate cut for small businesses in more than 25 years. This measure will reduce taxes for small businesses and their owners by an estimated $2.7 billion over the 2015-16 to 2019-20 period.

In addition, the economic action plan also supports thousands of manufacturing jobs across Ontario, for example, such as the many found in my riding of Whitby—Oshawa. Our government has proposed funding for manufacturers through the new automotive supplier innovation program, which includes providing $100 million over five years to help Canadian automotive suppliers gain a competitive edge through new innovative products and processes. Of this amount, $50 million will be reallocated starting in 2015-16 over three years from the automotive innovation fund and new resources of $50 million will be provided over a two-year period starting in 2018-19.

The automotive supplier innovation program will complement already existing initiatives, like the automotive innovation fund, by creating a favourable environment for automotive research and development while providing firms with opportunities to enter global supply chains.

In closing, economic action plan 2015 is a sensible plan that will balance our budget and directly benefit all Canadians. It builds on the disciplined choices that our Prime Minister and the previous minister of finance, the hon. Jim Flaherty, had to make when faced with economic uncertainty, and today it continues to focus on jobs, growth and security for all.

It is no wonder so many entrepreneurs, economists, community groups and experts, such as the Canadian Federation of Independent Business, the Federation of Canadian Municipalities and the Investment Industry Association of Canada have endorsed the measures that this budget has introduced. I am very proud of our government for bringing forward this balanced budget for all Canadians.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:10 p.m.

NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I would like to thank the member for Whitby—Oshawa for her speech. I would also like to thank her for tacitly admitting that the measure that the NDP has been defending for years, namely the lowering of the tax rate for small businesses, was a good idea. We commend the Conservative government for including this measure in its budget, even though it waited many years to do so.

That being said, I would like to come back to the motion that my esteemed colleague moved, which I was pleased to support. This motion seeks to amend the budget through substitution. This is the third day of the budget debate, and I am very concerned about the fact that the term “income splitting” is nowhere to be found in the budget nor is it being mentioned in my Conservative colleagues' speeches.

I would like my colleague from Whitby—Oshawa to explain to the House why Conservative members cannot use the term “income splitting”. Did they receive that instruction from the Prime Minister's Office?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:15 p.m.

Conservative

Pat Perkins Conservative Whitby—Oshawa, ON

Mr. Speaker, I think it is rather presumptive to think it has become a taboo term. I think it is a term of which we are very proud. This government has created income splitting for seniors, which has helped keep seniors in their homes and allowed them to live independently. It is creating opportunities for families to live in a fashion in their homes without having all of the financial burdens that they would otherwise have had.

I believe that this government is very proud of the income splitting, as it should be.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:15 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I think there is some validity to ask the question about the income split, because it is very obvious with respect to this budget that it is an unfair budget. It would not do anything really tangible for Canada's middle class, and it is the middle class that is really going to be driving our economy into the future. That is how we generate the wealth. We need to invest in our middle class. A healthy, strong middle class will result in a healthy, strong economy for Canada.

When I look at the taxation issue of fairness, Jim Flaherty, the person she quoted in her speech, said that the income split was not on the table; it was something that was not good for Canada, because it would elevate only a few. Fewer than 15% of Canadians would actually benefit from that.

The ones that would be affected hardest would, of course, be the middle class because they are the ones who would foot the bill for it.

I wonder if she believes that Jim Flaherty, when he was the minister of finance, was wrong.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:15 p.m.

Conservative

Pat Perkins Conservative Whitby—Oshawa, ON

Mr. Speaker, I think that the income-splitting plan we have before us now is not the same income-splitting plan of which then minister Flaherty was actually speaking. I think there are some significant differences. I believe that minister Flaherty, with the numbers that were before him, made the correct call. I think the current Minister of Finance and the current government, with the information before us, are also making the correct call.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:15 p.m.

Conservative

Steven Fletcher Conservative Charleswood—St. James—Assiniboia, MB

Mr. Speaker, the previous minister, the great Jim Flaherty, did a lot of innovative budgeting for persons with disabilities.

I wonder if the member for Whitby—Oshawa would discuss, perhaps, the EI compensation increase from six weeks to six months, the accessibility home tax credit, the RDSP, the enabling accessibility fund, or anything else that helps Canadians reach their full potential?

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:15 p.m.

Conservative

Pat Perkins Conservative Whitby—Oshawa, ON

Mr. Speaker, the economic action plan proposes a new permanent non-refundable tax credit rate of 15% for seniors and persons with disabilities who need to improve safety, access, and functionality of their homes. This tax cut would apply on up to $10,000 of eligible home renovation expenditures per year and provide up to $1,500 in tax relief.

These improvements would help ensure that seniors and persons with disabilities could have healthy, independent lives in the comfort of their home or their family's home, and they could include things like wheelchair ramps, walk-in bathtubs, wheel-in showers, and grab bars for safety. All of those sorts of things are there, available to be funded, to help all people with disabilities.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:20 p.m.

Calgary Centre-North Alberta

Conservative

Michelle Rempel ConservativeMinister of State (Western Economic Diversification)

Mr. Speaker, it is a great privilege to be able to speak to economic action plan 2015, which I feel is a capstone on strong, stable Conservative government in terms of Canada's long-term growth prospects in our economy.

Since coming into office in 2006, our government has been squarely focused on ensuring equality of economic prosperity for all Canadians. This means a very purposeful, focused policy approach on this particular issue.

After we came into government, between 2006 and 2008, we aggressively paid down Canada's debt. We paid down billions and billions of dollars on Canada's debt during this period, because we understand that we need to have balanced budgets and a reduction in debt in order to ensure long-term economic prosperity for Canadians for generations to come.

However, when the economic downturn hit in 2008, we understood that a large portion of this economic downturn related to debt burden. We knew that if we were going to undertake stimulus measures, which would increase consumer confidence and ensure the long-term prosperity of Canada's economy, those measures needed to be short term and impactful in terms of ensuring economic infrastructure.

That is why we put in place things like the knowledge infrastructure program, which has legacy projects across the country in Canadian universities.

As well, Mr. Speaker, I will be splitting my time with the member for Prince Edward—Hastings, who has wonderful winemakers in his region.

Continuing on, these infrastructure programs left a legacy of economic infrastructure across the country. They positioned Canada for long-term economic success. However, once they were completed, they did not increase the size of government and they did not create entrenched long-term government bureaucracy, which meant that once we were through the worst of the economic downturn, once we started to see a sign of recovery in 2009, our government was squarely focused on coming back to balance.

On this side of the House, we know that budgets do not balance themselves and that we need to be very aggressive in terms of having a plan, both for efficiencies and spending. We have to make sure that, as a government, we understand how to deliver services to Canadians in a most effective and efficient way and be wise stewards of taxpayer dollars but also, on the other side of the balance sheet, create opportunities for growth.

Since 2009, we have aggressively pursued a trade agenda. When we came into office in 2006, I believe the figure was five free trade agreements. We now have more than 40, including historic access into the European market, with more than 500 million new consumers for Canadian goods and services, and entry into the Asian supply chain with this Canada-South Korea free trade agreement.

This places Canada in a historic, world-leading position in terms of attracting foreign direct investment, because we can trade with other nations in an unprecedented way.

We have tried to build a very skilled labour force with things like the Canada job grant and our apprenticeship programs.

The capstone of this budget is that we have created a very low tax burden on both Canadian families and job-creating companies.

Between our coming into office in 2006 and today, a Canadian family of four has $6,600 more in its pocket than before we came into office. When I listen to members across the aisle and I hear the Leader of the Opposition say that only affects the wealthy, I think we would be hard-pressed to find a Canadian family to say, “Wait a second; I am rich; that doesn't help me.” I think that is actually rich.

When opposition members go to the polls in the fall and try to spread that message to Canadians, they will be in for a very big surprise.

We understand that the role of the state is to get out of the way as much as possible, while ensuring the health and safety of Canadians and creating economic opportunity, not creating government for government's sake and not running on power for power's sake.

In this budget, we have measures such as reducing taxes on small business. Since we came into office in 2006, small businesses pay 44% less in taxes than before we came into office. That is an incredible milestone. That means that small businesses can hire more people, they can innovate, they can spend more money on developing new products and services, they can increase productivity, and they can weather economic storms, because hopefully, they are in a position where they can be liquid.

Canadian families have choice in child care. They have choice in how they spend their finances.

My colleague opposite, in the last question, talked about a taboo topic. I do not think it is taboo to talk about Canadians having more money in their pockets, that somehow being a bad thing, and somehow governments know how to spend Canadians' money better than Canadians do. That is the difference between this side of the House and my colleagues opposite.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:25 p.m.

Some hon. members

Oh, oh!

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:25 p.m.

Conservative

Michelle Rempel Conservative Calgary Centre-North, AB

Mr. Speaker, for all those who are watching, of course we hear rumblings from members across the way, because they know we are right. They know that the average Canadian understands this principle. This is not an esoteric debate about whether we should expand the size of government. This is about making ends meet, and our government is the only party that understands that making ends meet means more money in the average Canadian's pocket.

I am the Minister of State for Western Economic Diversification and have a file that looks at the diversification and long-term growth of Canada's economy. We set five priorities after I came into cabinet in 2013 in terms of our portfolio. Those were ensuring that innovative technologies and services could be translated into the Canadian economy in western Canada; that first nations and aboriginal peoples had accelerated economic opportunities in the context of the western Canadian economy; that the industrial technological benefits program, which relates to government procurement and small and medium-sized enterprises in western Canada, ensured they were well positioned to take advantage of these types of programs; that western Canadian SMEs were well positioned to both take advantage of both trade and investment opportunities that have been created through our government's free trade agenda, and be in a position to attract foreign direct investment into western Canada; and of course, that we have a highly skilled labour force.

This budget, economic action plan 2015, would impact Canadian businesses and families in western Canada in a very meaningful way. Here are some of the highlights.

I am very excited that western economic diversification will have a role in managing the Canada 150 infrastructure program, which as was outlined in the budget, would see renovations and expansions of community infrastructure as it relates to Canada's 150th anniversary with regard to our innovation agenda.

We have seen increased funding to Canada's tri-council research partners, which is fantastic. I am fully supportive of a strong knowledge-based economy in Canada. We understand that basic research has a strong part in that. We have been one of the few countries in the world to have seen not only a status quo but an increase during an economic downturn, with a balanced budget to support basic research. I include a shout-out to one of my favourite agencies across government, the Canada Foundation for Innovation, which does excellent work in providing basic research infrastructure.

I include a shout-out to my colleagues at the Canadian Intellectual Property Council, CIPC, for advocating for some measures in the budget related to client privilege. For a long time Canadian intellectual property agents have advocated that they should have rights similar to lawyers' in terms of client confidentiality privileges, because this would help protect Canadians' intellectual property in a stronger way. That is in this budget.

I would also like to highlight that some of my colleagues in the NDP might actually be at odds with their leader. They are sending out householders, and I have one here from the member for Ottawa Centre in which he actually highlights all of our government's tax savings. The title of the householder is “Household Tax Tips for 2015”. He says here that the Canada child tax benefit, a national child care tax supplement, benefits low- and middle-income families and that the national child care benefit supplement should be something that they provide. He highlights in here that if people have spouses or common-law partners, they should also file for the benefit on an annual basis.

My question is this. For all my colleagues opposite who are standing and saying that this is something that would not benefit Canadians, why would they spend taxpayer dollars sending out information, with a party logo on it, selling the benefits of this particular piece? I am confused.

However, I certainly hope Canadians will not be confused when they go to the polls this fall, because they understand that our government wants more dollars in the pockets of Canadian families, and that is what we would do with economic action plan 2015.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:30 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, I have some questions about the Canada 150 grant because I have a number of places in western Canada, particularly in northwestern B.C., that are looking for opportunities.

I noticed that there was not enough in the budget document about western Canada specifically. I know the member is the Minister of State for Western Economic Diversification so this is important to her. I know there is money there for a telescope in Hawaii, and that is good, but there seems to be a bit of an absence, a bit of a taking for granted. I know the minister has some answers as to what I may have missed in the 500 pages about western Canada specifically.

Also, what has changed in this budget document is the typical Canadian family. I do not know if members have followed this but in every budget the Conservatives roll out the typical Canadian family is usually made up of two parents, a man and a woman, and two kids. In previous budgets, the woman in that typical family was earning more than the man, but were earning some equivalency. In this latest budget, the woman has taken a dramatic pay cut. I do not know if everybody noticed this, but she took a $50,000 pay cut in order to apply for income splitting.

Is this the Conservative imagination at work here in terms of what the typical family needs to be, which is that women will have to take this pay cut in order to take advantage of something like income splitting? Canadians are not looking for that. They are looking for a representational government—

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:30 p.m.

Conservative

The Acting Speaker Conservative Bruce Stanton

Order, please. The hon. minister of state.

Financial Statement of Minister of FinanceThe BudgetGovernment Orders

3:30 p.m.

Conservative

Michelle Rempel Conservative Calgary Centre-North, AB

Mr. Speaker, I will respond very quickly,

With respect to my colleague's first question on the Canada 150 infrastructure program, I look forward to working with him and all of my colleagues from western Canada, regardless of political stripe, on rolling out an excellent program that will benefit all Canadians in western Canada. Members should stay tuned for details to come. We are working hard. Kudos to my staff at Western Diversification Canada, the dedicated public servants who are working on this program.

What is interesting about the latter part of the member's question is that he is entrenching a social more. I did not see anywhere in the budget where it talks about the woman as the smaller income earner. By the member saying that a woman should take a pay cut, he is actually saying that fathers who are allowed to stay home should not be allowed to do this. Income splitting does not allow—