Mr. Speaker, my colleague for LaSalle—Émard is a phenomenal representative in the House. It is an honour to work with her.
It is my pleasure to speak to Motion No. 18, the 2015-16 budget.
With rising income disparity, the Canadian government is faced with clear choices: to implement fiscal measures to address that disparity, or not; and to choose to genuinely support economic diversification, or not. Disappointingly, based on the budget bill, it is clear the Conservative government has chosen the later path in both instances.
There is some good news for middle-class Canadians in this budget. As recommended by the NDP, there will be a gradual small business tax cut from 11% to 9%. Also recommended by the NDP is the extension of the EI benefit to care for sick or dying relatives, from six weeks to six months.
It is commendable that the government does sometimes listen to the opposition. Still, unfortunately, there is no willingness to restore the right to claim OAS or GIS benefits at age 65, as CARP, the NDP and many others have sought, and no action on the requested increase in CPP benefits.
While some appreciate the non-refundable tax credit for renovations for seniors and handicapped, according to the Canadian Alliance of United Seniors, only those with the means to pay upfront for renovations will benefit the most, meaning more would have benefited from a refundable tax credit. Those seniors fortunate to have invested in RRSPs and then converted to RRIFs will benefit from the lessened duty to withdraw amounts per year. Unfortunately, many have no RRSPs or RRIFs.
Bad news for struggling families is that the budget provides grossly inequitable tax benefits, including raising the annual limit for tax-free savings account deposits to $10,000 a year, which clearly will assist only those with that scale of surplus income. While many managed to contribute $5,000, doubling that is doubtful for the many facing record household debt. The Parliamentary Budget Officer projects the cost at $1.3 billion this year alone and by 2060, a loss of almost $15 billion a year to the Canadian revenue. Thus there will be a loss to programs meeting the needs of most families.
According to Rob Carrick of The Globe and Mail, the national conversation on personal finance has been hijacked by the tax-free savings account offer. Rising household debt, in his view, is the bigger issue. He has reported that while government is lauding its balanced budget, a record number of households are sinking in family debt. The growth in debt is exceeding salary and wages by a 163% ratio. The opportunity to contribute even more to a tax-free savings account is a luxury prospect for far too few.
Among the clearest evidence that the Conservative government chose to reward the wealthy is the spousal income splitting measure, a multi-billion dollar windfall for the 10% wealthiest Canadians. This year alone, $2.4 billion will be diverted from federal revenues for this privileged group. In each of the next five years, $2 billion more will be lost from revenue, with a grand total of a $12 billion loss from programs that benefit all Canadians.
What potential programs are lost or promises broken? There will be no new money for home care; no new national pharmacare program; no national senior strategy on health care supported by the Canadian Medical Association; no national housing strategy; and despite a decade of promises, zero dollars to create critically needed, affordable child care spaces.
Despite the great hullabaloo, actual delivery of the monies for many programs is being delayed for up to two to four years, well past the next election, which is perhaps not a minor factor in enabling a balanced budget this year. The government is simply delaying major expenditures into future parliaments, despite the critical need and in face of the fact that the cost for delivery will inevitably rise, particularly for infrastructure.
Ninety-five per cent of Canadians think investment in public transit is important. Commitments to long-term transit funding was called for and then welcomed by the FCM and the mayors. However, an increasing number of municipal leaders are now expressing concern that no clear monetary commitment has been made to entrench a permanent transit fund or a proportion of federal dollars transfer. Far more is needed to address the critical and growing need for public transit. The government is forcing cities to pursue private financing agreements through P3s, whether they like it or not.
Concerns with infrastructure funding are even greater, as funds over the next three years will be cut by 87%. Only 25% of the money is to be allocated to cities before 2019. No new money is budgeted to assist municipalities in complying with the new federal regulations on wastewater and therefore, there will be implications for the environment.
The $150 million announced for mortgage relief for social and co-operative housing will enable repairs. That is welcomed, yet over the next 25 years, $1.7 billion in housing funding will expire, putting social housing in jeopardy. No new money is committed for new affordable housing and there is no commitment to a long-term stable funding program for housing.
Economic diversion is the major topic in my province these days. The government has a clear choice to make in the path it chooses to diversify our economy. For manufacturing, the budget offers some limited support, including extended accelerated capital cost write-offs for another 10 years. Astoundingly, the Conservatives are decreasing transfers for western economic diversification despite widespread calls in my province of Alberta to end the over-reliance on the oil-based economy. Many long-tenured oil workers seeking assistance for work are saying they want out of the boom-and-bust roller-coaster ride of the oil sector.
EI claims in Alberta are 72.9% higher than last year. There is a 30% increase in EI claims the past two months straight. Alberta is experiencing the highest unemployment rate since 2009, projecting almost 20,000 jobs lost alone in drilling activity.
Limited immediate support is offered to our universities, colleges and technical schools for science, research and education, despite the contribution they make not only to direct employment, including for students and in creating our workforce of the future, but also as contributors to the economy in advances in science, research and education.
As with many programs, the budgeted $46 million new funds for the granting council budgets will not actually flow until 2016 or 2017. There is a continuing trend to limit federal research and innovation dollars, including the NSERC grants to those who garner matching industry partners or for projects that create long-term economic advantages.
That undervalues the contributions of the universities and technical schools in my riding to pure scientific research, to breakthroughs in combatting disease, including diabetes, to addressing pollution, and to developments in physics, chemistry, and so forth. The $1.33 billion for the Canada Foundation for Innovation research is spread over six years, and is delayed again until 2017-18. As this fund simply keeps being reannounced under new names, it is not clear how much of the money is actually new money.
Only $3 million is assigned to the Council of Canadian Academies, which has done stellar work on our behalf. Preference is given to innovative enterprises garnering endorsements from favoured major corporations. For example, western economic diversification has favoured the defence industry over support to the burgeoning renewable sector.
So many apply each year for support to provide summer employment for students, including many university research jobs. So many are turned down. A small increase could provide valuable work experience for our youth.
Other concerns voiced to me about how the government is delivering a balanced budget include the decision to withdraw $2 billion from the contingency fund. People ask me what happens if there is another major flood or record forest fires in Alberta or other provinces or territories. There is a decade of cutting front-line services. More bad news, not clearly revealed to Canadians, includes the imminent cuts to health care transfers starting in 2016-17, moving from the 6% escalator to 3%.
In the brief time remaining, I want to mention there are no new benefits for veterans, no money for missing and murdered women, and no new money for aboriginal education or benefits.
Despite the continuing claims of responsible resource development balancing development and environmental protection, there is zero money to support the participation of Canadians in major resource project reviews. Climate change is not even mentioned in the budget. That is absolutely reprehensible. Even the oil and gas sector is asking the government to step up to the plate and address our climate issues and to address the fact that it has not dealt with first nations claims.
Why is there no support from any businesses, communities and first nations wanting to pursue a cleaner, more affordable, sustainable future? It is a matter of choice.