House of Commons Hansard #121 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was veterans.
Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons
Mr. Speaker, in the last federal election, the NDP made a solid commitment to have balanced budgets. I wonder if the member could comment on whether he believes today that the NDP would have maintained a balanced budget. Does he feel that it would have been warranted to create any form of a deficit?
Wayne Stetski NDP Kootenay—Columbia, BC
Mr. Speaker, I want to thank the hon. member for the question, because it gives me an opportunity to be more complete in my answer as to why Bill C-29 is not going to be supported.
First, the tax break for the middle class does not include the middle class in my riding, which starts at around $20,000. There is no national poverty strategy in the bill, which is really needed for Canada.
During the election, the Liberals promised to bring down the tax rate from 11% to 9% for small businesses. That never happened. There is no cap on credit card fees. Privatization of infrastructure is going to increase costs for Canadians. There is no indexing of the Canada child benefit. That is why we are not going to support Bill C-29.
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
Mr. Speaker, I keep hearing the Liberals talk about the middle-class tax cut, and I think what Canadians need to realize is that it is actually a middle-income tax break, that the people who receive the most benefits are those with incomes between $100,000 and $200,000 a year. That may be the Liberal middle class, but it is certainly not the middle class I represent, not when we have a median income in Canada of $31,000 a year.
I just want my hon. friend to talk a little bit about the situation of constituents in his riding and maybe some of the measures that could have been put in the budget to help the most disadvantaged members of our society, because I do not really see many measures in the Liberal budget that actually do that.
Wayne Stetski NDP Kootenay—Columbia, BC
Mr. Speaker, I thank my colleague for his hard work on behalf of his constituents.
As I said in my speech, when I talk to constituents in my riding and tell them that the middle-class tax break starts at $45,000 and potentially goes to almost $200,000, they just shake their heads, because that is not middle class in my riding at all. Of course, we put forward an amendment to bring that down to $20,000 so that people earning between $20,000 and $45,000 would be covered, but it was rejected by the government.
Also in my riding, poverty is an issue, as it is right across Canada. There is nothing in here that sets out a national strategy to deal with poverty.
On housing, there is hope, I suppose, but we need to see what is actually in the national housing strategy. Finding a home is the number one issue for people living in poverty.
Raj Saini Liberal Kitchener Centre, ON
Mr. Speaker, I rise today to celebrate the importance of culture and diversity in our country and to highlight some of the investments our government is making to ensure that we protect, preserve, and promote our country's cultural institutions and multicultural society.
Our culture, our ideas, songs, and stories give meaning to who we are as Canadians. Our culture and cultural products are the instruments that help us communicate with others and share different views, entertaining and informing us, all the while weaving together a shared sense of identity.
Culture is at the heart of every community across our country and around the world, and Canada is a testament to the ability to include and respect all cultures in one society. Perhaps we are uniquely poised to be welcoming and accepting due to the way our country was founded as distinct societies coming together to found one country. People from other parts of the world quickly joined, adding their cultures and traditions to the fabric of our country, weaving the ever-changing tapestry that is Canada.
Our government has a solemn duty to act as a steward of Canada's cultural institutions and an obligation to promote and foster the institutions, activities, and people that help our culture flourish, grow, and adapt to changing times and circumstances.
Our cultural mediums help us to exchange diverse ideas and experiences, and the conversations they invoke are the greatest celebrations of the diversity that is at the heart of Canadian culture. They also make a significant contribution to our economy.
Over the years, the number of companies and individuals involved in producing cultural products has grown dramatically. One of the companies that has always been at the heart of Canadian content is the CBC. There are some on the opposition benches who would like to see the CBC eliminated. Strikingly, they are some of the same members who seem most out of touch with what true Canadian values are. The CBC not only ensures that all Canadians have access to Canadian content, but that every Canadian can also access local content.
The reality is that in a country as vast as Canada, there will be areas where it does not make financial sense for profit-driven entities to produce local content. Every Canadian deserves to know what is going on in their area of the country, and to partake in the shared experience of cultural exchanges that build communities.
To that end, I am proud to say that our government has invested $675 million in the Canadian Broadcasting Corporation/Radio Canada to disseminate and support world-class Canadian content and to provide Canadians with better access to programs and services in the digital era.
Since I know this question will be coming from my Conservative colleagues, I will address it now. Yes, I am aware that CBC/Radio Canada has asked for an additional $400 million from the government. The opposition has made great fanfare of this request, decrying it as just a cash grab. What they fail to mention, however, is that this request comes because CBC/Radio Canada wants to eliminate all ads.
I would like to ask those watching to think about what this means for our national broadcaster. Much like the BBC, our national broadcaster can give strong, stable, well-funded public broadcasts with the primary goal of serving the interests of domestic audiences and diverse communities in helping to promote Canadian content. Agree or disagree, this is an idea worth seriously considering, and I am happy the government is doing just that.
Although our cultural industries are a key part of the Canadian economy, our government also recognizes that culture and cultural products are more than just goods that can be bought and sold. Our stories, our songs, our symbols, and our sacred spaces can sometimes generate profits, but they are also precious because of their significance or the sense of belonging and understanding they induce.
Understanding the intrinsic value of our cultural spaces is very important to me. I am therefore very proud that our government has decided to invest in the spaces and institutions that serve as guardians of our cultural objects, including our national museums, our national historic sites, and our parks. Canada's national museums are important cultural institutions that play a vital role in preserving Canada's heritage and educating Canadians.
I am pleased to say that in budget 2016, our government provides up to $105.9 million over five years to our national museums, and up to $280.9 million over five years to support the infrastructure needs of three important Canadian cultural institutions: the Canada Science and Technology Museum, the National Arts Centre, and the National Gallery of Canada.
What is more, we are committed to allocating $168.2 million over two years to the Canada cultural spaces fund, as part of our investments in social infrastructure. Through initiatives like this one, budget 2016 will ensure that the community spaces that preserve, protect, present, and promote our culture, while entertaining and informing us, will be there for us and for our children in the future.
This process is critical not only to ensure that cultural artifacts from our past are protected but also to ensure that the innovators and artists of tomorrow have welcoming, well-funded spaces to help inspire them.
Artists are our country's storytellers. Regardless of the medium they use, our artists capture moments and ideas and weave them into the fabric of our individual and collective identities.
The weaving of this fabric of identity is especially important in a quickly changing and globalized world, as we work within the context of our ever-changing and diverse society to create a sense of what it means to be Canadian.
Fostering the development of the arts here at home is an important part of ensuring that those who have stories to tell are given the opportunity to weave their own contribution into this national fabric.
Encouraging this freedom of expression is fundamental to our understanding of ourselves and to ensuring that all voices have the opportunity to be heard in our democracy. However, if art is to flourish, artists need to be able to work in an environment in which their voices can be heard, regardless of how popular the sentiment they express is, and regardless of their viewpoint or background.
Ensuring equal access to the artistic world is why it is so fundamental that our government works to foster the development of the arts in Canada through grants, services, and awards to professional Canadian artists and arts organizations, as well as through scholarly awards.
In budget 2016, our government has committed to ensuring that avenues to expression are open to all Canadians through its investment of $550 million in the Canada Council for the Arts. Furthermore, our government has made commitments to the industries that support these artists, including a $22-million commitment to Telefilm Canada and a $13.5-million commitment to the National Film Board of Canada, as they work to ensure the cultural, commercial, and industrial success of Canada's audiovisual industry.
This funding will work in tandem with our commitment to work with other countries to realize new and creative artistic projects, a commitment demonstrated when the Minister of Canadian Heritage signed an audiovisual co-production treaty with the Republic of Ireland earlier this year.
Working through partnerships like this allows us to tell new stories and achieve new levels of creativity as we support each other in telling our country's stories.
In 2004, the British culture secretary, Tessa Jowell, commissioned a paper on the arts, which argued that the primary purpose of the arts is to communicate perceptions about the human condition that can't be communicated in any other way.
The arts are unique. They are able to help people interact with the world around them by helping them understand, work, and play in that world to enrich their experience by bringing feeling, beauty, and passion to their lives, and to provide a safe place where they can work to build their confidence, self-worth, and self-esteem.
Other efforts can only do some of these things. The arts do all three. That is why we must continue to support them.
Harold Albrecht Conservative Kitchener—Conestoga, ON
Mr. Speaker, I want to thank my neighbour from Kitchener Centre for his work in his riding.
I do not think anyone in the House is denigrating the arts. However, we all know that whatever project we want to support, there has to be money to support it. When we are borrowing money on more money on more money to build up a deficit of $30 billion, adding $10 billion per year in interest costs alone over the next four years, this is a concern. Could my colleague comment on the costs of his proposals?
Also, there was a question that I asked the Minister of Finance this morning, which we did not receive an answer to. It is found in the Order Paper today. It refers to Bill C-29. Motion No. 1 by the member for Winnipeg North proposes that one of the clauses of Bill C-29 be deleted. Could my colleague explain why a member of the government would move to delete a clause in a government bill?
Raj Saini Liberal Kitchener Centre, ON
Mr. Speaker, I also thank my hon. friend for the work he does in his riding. He has been a great mentor and adviser since I was elected, and so I want to thank him personally.
One of the things I did not get to in my remarks was the importance of the arts and culture community, not only in my riding, where it is very strong, but also in Canada. We know, from the latest analysis by the Conference Board of Canada, that the arts and culture community in Canada provides $84.6 billion worth of economic benefits to Canada. That represents 1.1 million jobs. Arts and culture are a very important part of the Canadian fabric, not only as an economic multiplier but also as a social multiplier that keeps us all together. Also, as a final statistic, the arts and culture community adds 7.4% to our collective GDP.
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Mr. Speaker, I listened to my colleague's speech.
I know that it focused on culture, but since we are talking about Bill C-29, I am honour bound to bring up another aspect of this bill, which is just as critical and which seems to be central to the government's plan, and that is infrastructure.
Of course, we have talked about the infrastructure bank, but right now the government is also undertaking initiatives that could potentially lead to the privatization of ports and airports. In fact, the government has already given mandates to Credit Suisse and Morgan Stanley.
I would like to hear what my colleague has to say about the potential privatization of our ports and airports. I think he will agree with me that this infrastructure is key to our economic development. I would therefore like to know what he thinks about his government's idea to potentially privatize ports and airports.
Raj Saini Liberal Kitchener Centre, ON
Mr. Speaker, the only thing I can say is that if we look at the economic indicators in the world right now, we know that long-term bond rates are very low in parts of the world. We know that inflation is at 1%. We know the lower bond rate is close to 0%. This is the right time in our country's history to look at the infrastructure projects out there that are important not only for our communities but also for a nation-building exercise. After highlighting those statistics, I am sure that the hon. member would agree with me that now is the best time in our history to make sure that we make those infrastructure investments for the benefit of all Canadians.
Blake Richards Conservative Banff—Airdrie, AB
Mr. Speaker, I rise today to talk about the Liberal government's budget. It seems to me that we are stuck in a tax-and-spend cycle with the current Liberal government. Every time we turn around, it seems that the Liberals are finding another way to try to increase government spending, with no regard for Canadian taxpayers. Therefore, we see an increase in taxation, and the prospect for future generations of further increases in their taxation, as a result of large deficits and debt left behind by the government through all of this spending.
When the Liberal government released its fall economic update, it confirmed what we already knew. Liberals are spending so recklessly that they are going to have to borrow more money, and they have no plan to return to balanced budgets. I stand here today because on this side of the House we believe that fiscal responsibility, a framework for creating a strong economy, and a plan to create jobs and get Canadians back to work are what Canadians need and what they have asked for. We will continue to be the ones who stand up for the hard-working taxpayers of this country and hold the Liberal government accountable for its out-of-control spending.
In discussions I have had with constituents, through town halls and a survey prior to the introduction of the 2016 budget, along with a number of other methods that we conduct through the year, the one common link, the underlying concern that constituents had, was about ballooning deficits they were seeing from the Liberal government. This is simply not a solution to Canada's economic challenges. In fact, nearly every constituent who was surveyed indicated that a balanced federal budget was important, almost unanimously. This obviously comes in very stark contrast to what we see in the budget implementation act.
When it comes to broken promises, the Liberals ran on a campaign promise to cap deficits at $10 billion a year and return more to a balanced budget in 2019-20. That frankly was not good enough to begin with, but that was their promise. Instead, they are spending deficits of nearly three times that amount, almost $30 billion in borrowed money. This is in their first year alone. Through the budget implementation act that we have before us today, the Liberals will continue to run deficits, and with no explanation whatsoever about how or when they will return to a balance.
The Liberals may try to blame higher deficits on a weak economy or lower revenues, but it is very clear from the parliamentary budget officer and the Finance Canada “Fiscal Monitor” that Liberal spending is the real culprit. Hard-working Canadians across the country run their personal finances with fiscal restraint. They know that when they run out of money and keep spending, they are going to have an issue. Why does it seem like the Liberal government has such an issue with this concept? The budget is a steep deficit trajectory with no intention to return to balance and no clear plan to create jobs. That is pretty evident when they have not actually created a single net job since they were elected over a year ago. There is nothing to help get thousands of unemployed Canadians back to work. When it comes to managing an economy, there is no second chance. Clearly, Canadians are worse off today than they were a year ago.
The budget still offers no insights into how the government plans to create jobs. Unfortunately, the forecasting by the Liberals is not reliable either. When our previous government introduced a stimulus package in response to the global financial crisis, we used outside experts to vet our estimate of 220,000 jobs that would be created or maintained. The target was actually exceeded by 28,000 jobs.
In contrast, the parliamentary budget office reported in October that despite their out-of-control spending and their skyrocketing deficits, the Liberals have not created one net full-time job since they took office, not one; not a single job. The report also stated that the number of part-time jobs that were created in the last year is only half the average rate of job creation of the previous five years. All of them were part-time jobs.
Further, in comparison, while Canada's employment rate has been falling, rates in the U.S., G7, and OECD have risen. It is very clear that despite a year of reckless spending, the Liberal plan has done nothing to improve our economy. Instead of supporting real job creators, the Liberals are making it more expensive for companies to hire and raising taxes on the small businesses that employ 95% of Canadians.
For small businesses, the budget reneges on promises to lower the small business tax rate that were planned in the last Conservative budget, from 11% to 9%. Instead, the Liberals will hold the rate at 10.5% and have introduced new conditions around eligibility. I will get to those in a second.
It is not only that, but the budget did not renew the tax credit for El premiums paid by small business, and over $1 billion in new El expenditures points to higher premiums for all employers in the near future.
All of this drives away jobs and drives away investment. Now the Liberals are talking about a federal carbon tax, and we know what impact that will have on every Canadian family's budget. We know what it will mean for businesses and their costs. Again, it is further costs being added to families, further costs being added to businesses who are trying to employ Canadians.
Not only are the Liberals not creating jobs, but they are not even going to enable the private sector to do the job it wants to do, which is to create jobs. They are also saying to some small businesses that they are too small to be small businesses, so they are now going to be increasing their tax bills. For some of these small businesses we are talking about, when they deal with rules around active and passive income, they will see a tripling of their tax bills. This will put people out of business, and it will put more Canadians out of work.
I also want to touch on our natural resources industry and the workers it supports. The Liberals have imposed arbitrary, political, and unpredictable regulatory processes at a time when we urgently need to get our resources to new markets and when we should be supporting our natural resource workers. While unemployment in Alberta continues to climb, the Liberal government's budget fails to address support measures for our natural resource workers.
Skilled workers are struggling to provide for their families and are being forced to leave the province to seek better opportunities for employment. The number of unemployed Albertans has nearly doubled since the start of 2015. It went from 112,500 in January last year to 206,900 in August 2016, up 84.6%.
I see the signal you are giving me, Mr. Speaker. Unfortunately, I have so many points that I want to raise about the nature of this terrible budget that I will have to leave some of them out. Of course, we can thank the Liberal government for that as well. They have indicated that we are going to have a limited debate on this, so unfortunately there is no opportunity to raise all the points we would like to raise.
I want to touch on the point of infrastructure. I think I have already made it clear that the Liberals are completely oblivious to the needs of Alberta energy workers and getting them back to work. The budget certainly reflects that.
When we talk about the infrastructure program, the Liberals claim they are going to create this legacy of infrastructure. However, when we look at it, most of the claims are quite false, because it is in the so-called phase two of the plan where we will see most of the infrastructure. Most of these things will not even be realized for at least six years. Until then, the municipalities are basically out of luck.
The Liberals have taken a huge chunk of this fund and put it into an infrastructure bank, which means small communities across the country are out of luck because they do not have access to any of that We talk about them having to be massive projects of $100 million or more.
On top of all that, we have higher taxes. We keep hearing from the government how families are better off. I asked my constituents if they were better off. I went to their doors and asked them in a survey. Over and over again, what I heard was no, that they were worse off. The government has taken away some of their tax credits for income splitting, fitness, arts, education, textbooks, their ability to save through tax-free savings accounts, and that it is forcing new mandatory premiums increases on them for the Canada pension plan.
It goes on and on. Then, of course, the cherry on top is the carbon tax. We are not all looking forward to that one. My constituents are telling me that they are going to be worse off.
Not only is the government taxing Canadian families to death and putting them in huge deficit and debt situations so that their kids and grandkids will be taxed to death, but it is not doing anything to create jobs or to help businesses do the same. It is a terrible budget, and I speak in opposition to it today.
David Graham Liberal Laurentides—Labelle, QC
Mr. Speaker, I was amused to listen to the member's comments about how much the government has done in a short period. I wonder if the member could remind the House how many years it took for the Conservatives to cause all the damage they caused to this country. They caused quite a bit of damage and, after 10 years, they still had not finished everything they wanted to do.
Blake Richards Conservative Banff—Airdrie, AB
Mr. Speaker, I am amazed to even hear that comment. We are talking about a government that took us through one of the most difficult economic times that the world has ever seen. Conservatives came out of it with a balanced budget, lowered taxes for Canadians, and somehow that was damage? I can understand why he might think that, because what we are seeing from the Liberals is the complete opposite. There are huge new deficits being created in a very short period of time, and there are massive new taxes being put on Canadians. That, to me, sounds like the real damage, but, of course, Liberals always have it all backward.
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Mr. Speaker, my colleague and I obviously have some differences of opinion on issues, especially economics. However, there is one thing we actually agree on, which is that the Liberals made a lot of commitments on infrastructure during the election campaign and nothing has been done that was promised during the campaign.
Yes, they talked about the infrastructure bank, but they never explained how it would work. Now we find out that about 80% of that bank will be funded by the private sector, which will obviously have a large role to play in this. It was never mentioned during the campaign. Another thing that was never mentioned was the fact that the government would consider privatizing ports and airports.
I would like my colleague to comment on what should and should not be said during electoral campaigns. It seems that Liberals are under the misguided assumption that platforms count for nothing and are only to engage citizens.
Blake Richards Conservative Banff—Airdrie, AB
Mr. Speaker, that is a great question. The answer is that when a party makes promises during an election campaign, it should keep those promises. We have definitely seen very little of that from the Liberal government. As the member said, that is the one thing we can certainly agree on, that it is not keeping any of its promises. It promised what I think was a terrible promise to begin with, which is that there would be a $10-billion deficit, but it certainly did not keep that promise. It has blown way past that already.
The member talked about infrastructure. The Liberals claim they are going to create all of these jobs with all this infrastructure, and that is why they need to run these deficits. Not only are they running this deficit and taxing Canadians, they are not even providing the promised infrastructure or the jobs. No jobs have been created, and the infrastructure is deferred until way into the future. What we are getting from the government is nothing but new taxes and a massive new debt. That is what we are getting from the government. That is going to be its legacy: taxes for us, our children and grandchildren, and a huge hole that it dug for the entire country. That is its legacy, and it is shameful.
Matt Jeneroux Conservative Edmonton Riverbend, AB
Mr. Speaker, I know there are not many who talk to their constituents more than my colleague. I believe that he was previously voted as one of the hardest-working members of Parliament for his constituents.
I am curious about his thoughts. The many times that he has been at people's doors, has he heard that a carbon tax is the answer? Has he heard that infrastructure spending is actually creating jobs? I am not hearing that at the doors that I knock on. He lives in a different part of the province of Alberta, and I am curious if he is hearing something different than I am hearing.
Blake Richards Conservative Banff—Airdrie, AB
Mr. Speaker, I can tell the member that I am certainly not hearing anything different from what he is hearing. There was recently a huge rally in my riding that was organized by citizens who are opposed to a carbon tax. There were probably thousands of people who showed up. I noticed that cars going by were honking their horns in support. People are hugely concerned. It is like being kicked while we are down. There are thousands of workers out of work, and while needing support and wanting something that offers them hope, the government offers a carbon tax, which would tax everything.
When I knock on doors, in addition to hearing concerns about this carbon tax, I hear about the measures that the government claims will somehow help middle-class Canadian families. I asked my constituents at their doors, and they said they are worse off. I also did a survey in which I asked constituents if they are better or worse off, and 65% of them said they are worse off under the current government. That was 65%.
Shaun Chen Liberal Scarborough North, ON
Mr. Speaker, it has been exactly one year and a day since the Governor General of Canada delivered the Speech from the Throne, opening the 42nd Parliament, and setting in motion our government's plan to make real change happen throughout this country. When I look back over the past year, it is apparent that real change is happening across Canada from coast to coast to coast. It is the result of hope and hard work, values that continue to build our great nation, and it began with the faith and trust that Canadians put in our party.
I am proud to speak today to Bill C-29, the budget implementation act, because the budget is the centrepiece of our government's plan for change. This budget represents the hopes and dreams of so many Canadians who believe in a better and brighter future, not only for each and every Canadian today but for generations to come, that they will inherit a greener planet and a world of opportunities.
In my riding of Scarborough North, which straddles the edge of the city of Toronto and the beginning of the Rouge Urban National Park, hard-working Canadians want to know that their government is hard at work for them. The hard-working father wants to know if public transit will be improved so that commuting to work downtown from Malvern does not take up two hours of his precious time each day. After working two long shifts, he can think of no greater joy than to be at home in time to tuck his three-year old into bed. The hard-working single mother wants to know that the federal government is committed to a national strategy on inclusive, sustainable, and affordable housing. After living with her two children in unsafe and overcrowded housing for many years, she has finally saved up enough money to carry a modest mortgage for a Habitat for Humanity townhouse unit currently under construction at the 140 Pinery Trail site. The hard-working Tamil immigrant family wants to know that their children will receive a good education and a fair chance to succeed. After fleeing the Sri Lankan civil war, there is nothing more important than to see their next generation live in a peaceful society, with the opportunities that the previous generation never had.
I feel humbled and privileged to represent the people of Scarborough North and to make sure that their priorities are heard here in Ottawa. I am proud to stand in support of Bill C-29, which will help implement a budget that is making real change happen for Canadians, change that will result in new investments for much needed infrastructure, such as public transit and affordable housing, as well as clean water, and the expansion of trade and transport.
Now is the time to invest, while interest rates are low and Canada's debt-to-GDP ratio is the lowest of any G7 country. Over the next decade, our government plans to invest over $180 billion in infrastructure, helping residents not only in Scarborough North but all across our country.
After raising taxes on the wealthiest 1% so that we could cut them for the middle class, this budget further helps Canadian families with the high cost of raising kids. Through the new Canada child benefit, nine out of 10 families will receive more money each month, lifting hundreds of thousands of children out of poverty.
This budget also ensures that post-secondary education is affordable and accessible, especially for students from low- and middle-income families.
This budget will help seniors. Through increased benefits, our elders will now have greater comfort and dignity in their retirement years.
This budget is there to support our veterans. For all that they have done to serve our country, Canada's veterans deserve respect and better access to government services.
These are just a few examples of how real change is happening all across Canada, and today we are continuing this theme with Bill C-29.
Our government remains fully committed to growing the economy and strengthening the Canadian middle class. That is why certain provisions in this bill are designed to ensure tax fairness and a strong financial sector. Hard-working Canadians, like the people in my riding of Scarborough North, want a government that will uphold fairness for all taxpayers. The vast majority of Canadians work hard each and every day. They pay a fair share of taxes, hoping that in return the government provides the programs and services they need. However, there are some wealthy individuals who continue to abuse the system. That is precisely why this bill seeks to combat underground economic activity, close tax loopholes, and prevent tax evasion here in Canada and abroad.
When the rich elite benefit from unwarranted and unintended tax advantages, it is hard-working, everyday Canadians who have to pay the price. When wealthy individuals inappropriately use private corporations to reduce or defer taxes, for example, it is simply wrong that they are not paying their fair share.
That is why our government will ensure effective administration and enforcement of Canada's tax laws, making the necessary changes to improve the integrity and fairness of our tax system.
Hard-working Canadians also expect that our financial institutions remain strong. Banks are indeed where Canadians typically go to cash their paycheques, to deposit their retirement savings, and to take out their mortgages. We know that Canada's strong banking system is well-respected all around the world. The robustness of our large and diversified financial institutions was proven during and after the global financial crisis in 2008. That is why our government is strengthening Canada's financial sector, in order to support stable economic growth. By keeping our financial institutions robust, through a strong regulatory framework, our government will ensure that the needs of Canadians and Canadian businesses are met.
We are also making it clear that it is not the taxpayers but, instead, the shareholders and creditors of large banks who will be responsible for any risks taken by their respective institutions. That way, hard-working, everyday Canadians will not be left with the bill when economic turmoil hits.
It is evident that this budget implementation bill is there to provide both help and protection for Canadians. That is why I stand today in support of Bill C-29, and all of its provisions.
We must continue to build Canada's economy because we all know that a strong economy starts with a strong middle class. There is no other national project more important at this time. When middle-class Canadians have more money in their pockets, it means they can feel confident to spend more, to save more, and to invest more. This grows the Canadian economy. It grows Canada's future. I cannot think of anything more crucial than creating opportunities for both today and tomorrow.
When I think about the hopes and dreams of hard-working Canadians in my riding of Scarborough North and, indeed, across Canada, I think about what it is we want to leave behind for our future generations. The choice is ours to look ahead and ensure that we work toward a future for our country that we can all be proud of. When we invest in the economy and build a stronger middle class, Canada becomes a country that works for everyone. That is why our government is laying the groundwork today for a strong and productive economy that will last for generations to come.
I will be voting in favour of Bill C-29. I encourage all of my colleagues in this House to stand together with me for real change today and in the months, years, and decades ahead.
Mark Warawa Conservative Langley—Aldergrove, BC
Mr. Speaker, I listened intently to the member. What he said actually sounded quite nice. However, in reality, taxes are increasing on Canadians. The rich, as he said, are not paying their fair share. The fact is Canadians are being overtaxed by the government.
My particular concern is for seniors. We have Canadian seniors who are living in poverty. We have heard from the government that it is increasing the guaranteed income supplement, the GIS. We applaud that. The fact is it should be more than what it is doing. It is miniscule and it should be more.
The government has also said that it has lowered the age for OAS back to 65. Again, we are supportive of that. However, that is all that it is doing. It is not doing anything else for seniors. Seniors are struggling.
And, now, the new carbon tax is a tax on everything: medicine, food, housing, heating.
Does the member support the grief that the government's policies are creating for Canadian seniors?
Shaun Chen Liberal Scarborough North, ON
Mr. Speaker, indeed, we have raised taxes on the wealthiest 1% so that we can cut them for the middle class.
Specifically, for seniors, we are working hard to make sure that we provide the support that is needed. For low-income single seniors, we are increasing their GIS top-up benefit up to $947 each year. We have rolled the eligibility age for GIS and OAS benefits back from 67 to 65.
These measures, along with the investments that we are making into infrastructure, will help grow the economy; they will help create jobs; they will create a brighter future, not only for our seniors, but for each and every Canadian across this great country.
Alistair MacGregor NDP Cowichan—Malahat—Langford, BC
Mr. Speaker, I certainly do not doubt the sincerity of my colleague when he talks about families. When I talk with a lot of families in my riding, especially young ones with young children, the biggest issue they bring to my attention is the fact that there is a lack of affordable child care spaces. Even if a family member were to get a job, that job actually would not pay for the child care, so there is no upward mobility for families.
That being said, there was an attempt made at committee with the bill to bring the indexing of the child benefit to January 1, 2017. That amendment was rejected. It was ruled out of order, and I do not see any action coming from the government to fix this problem. As a result, families will have to wait for 2020 to see if the benefits actually keep pace with inflation.
Why is the member's government not indexing the benefit starting next year? Why is it forcing low-income families to wait until 2020?
Shaun Chen Liberal Scarborough North, ON
Indeed, Mr. Speaker, when I speak with families in my riding of Scarborough North, they are happy because the new Canada child benefit is a better benefit. It gives more money to families. It gives families who need it the most the greatest benefit.
This program will lift 300,000 children out of poverty, starting with the benefits that began last July. For example, a family with a child who is under the age of six will receive up to $6,400 a year. For older children, they will receive $5,400. These families will benefit from that increased benefit, money they can use to help buy school supplies, to buy winter jackets, and to provide the things their children need to have a bright future, a good education and a good start to the day as they continue to grow and become Canadians who will eventually contribute back into our society.
Matt DeCourcey Liberal Fredericton, NB
Mr. Speaker, my hon. colleague had the chance just now to answer a question about the work we are doing for seniors and the work we are doing for families with young children.
Could he talk about how we are helping middle-class families through our investments in infrastructure, whether it is enhanced productivity in communities like the community he represents, and/or enhanced quality of life? Could he take a moment to explain how the government is working to improve both the economic situation and the quality of life for middle-class Canadians?
Shaun Chen Liberal Scarborough North, ON
Mr. Speaker, I thank my hon. friend and colleague for his incredible work on this file and for continuing to advocate for his community.
In fact, it is such a wonderful thing when we invest in infrastructure to build public transit, to build affordable housing, to make sure that bridges and roads are repaired, and to make sure that Canadians have the infrastructure they need. It will help create jobs, and those jobs will help grow the economy. It will create a brighter future for all Canadians and it will create the conditions for success that we need so desperately.
Dave Van Kesteren Conservative Chatham-Kent—Leamington, ON
Mr. Speaker, it is a privilege to rise to speak to the budget bill, but I do it with a heavy heart because I am concerned about the direction the government is taking. I want to talk about the government's record first, and I want to contrast the two records that we have seen in the House lately as well as over the past few years.
Take for instance the Conservative record, with a balanced budget in 2015. Contrast that today to the Liberal budget with a $30 billion deficit.
In terms of the economy, we saw a modest growth over the last number of years, and I will get to that with a little history lesson later, whereas we have seen no growth with the Liberal government in the past year. There has just been stagnation.
Speaking of employment, during the time of the great recession, the Conservative government saw the growth of 1.5 million new jobs, most of them full-time jobs. Members will notice that I did not say we created those jobs; far from it. Far be it from any one of us to say that we create jobs. The only jobs governments create are ones in the public sector. We are talking about jobs that were grown in the private sector. Contrast that to today's Liberal government, where we see no new jobs being created. Full-time jobs have been lost and the only added job numbers are part-time jobs.
I want to talk about deficits, but first of all I am going to give a little history lesson. I want to take members back to when the Conservative government was elected in 2006. Those were pretty good days. We saw something that we do not see a lot of now, and that is surpluses in government. During the years 2006, 2007, and partially into 2008, the Conservative government saw fit to tackle the deficit. It was not a great deficit, but any deficit is not a good thing. The Conservative government had the good sense to fight the deficit, to bring the deficit down.
Our Conservative government did that while at the same time lowering the GST by two points. We also lowered other areas of government revenue and paid down the deficit by $37 billion. Contrast that to the 2015 budget. When our Conservative government delivered the budget to the Liberals, we delivered it with the lowest tax rate in 50 years. The typical family was paying $7,000 less in taxes. It was the best record in the G7.
In 2015 the Liberals were elected. They told the electorate that they had a better way of doing things. Did Harper say? They said it was not true, and it almost sounded like a biblical story. The Liberals introduced a new concept of spending more, and they told folks that if they spent more money they could grow the economy. Canadians were used to lower taxes and lower deficits. They had been promised a balanced budget by the Conservatives and that is what they received, and the Liberals were introducing this whole new concept of spending money to improve our lives. This was suspect. The Liberals did say the deficit would be only $10 billion, but that modest deficit ballooned to $30 billion, and it did not stimulate the economy or create any new jobs; no new jobs, no growth.
I want to go back to the deficit and ask a simple question. Why would somebody go into a deficit position? I would suspect possibly Gerald Butts, the Prime Minister's chief of staff and also the former chief of staff to Dalton McGuinty. There seems to be a pattern here. The Ontario government did the same thing. It said, if it spent more money, that it could do a lot of great things, that it could grow the economy.
It is interesting to note that the Prime Minister's first trip was to Davos, Switzerland. It is an obscure little town in Europe, but it is the seat of the world banking system, which is interesting. These folks had heard that the Prime Minister was going to spend money and go into a deficit situation.
On his second trip, he made great friends with the President of the United States, Mr. Obama. Mr. Obama was well versed in that kind of ideology too. As a matter of fact, he doubled the deficit in the United States. It went up from $9 trillion to $18 trillion. I remember the first time we started talking about a trillion dollars, and I had to get my mind around that. I just know it is an awful lot of money. The Prime Minister went to Mr. Obama and they became great friends.
I have to give the Liberals credit. I went over their record on their candidates and team, and I just wanted to introduce myself to the team. However, I have never seen more doctors, more lawyers, more Ph.D.s, or Rhodes scholar. I feel a little intimated, because I am just a farm boy. I think we have more commoners on this side of the room.
I can tell members that I am just a farm boy who had some modest success in the auto industry. However, in 1993, I had a lesson in debt. The banks came around and they pulled my line of credit. It brought me to my knees, but it taught me a valuable lesson. I learned that I would never be indebted to a bank again.
Members can ask most business people if they would rather have a huge debt or no debt at all. I do not think there is a person in the House who would not say the latter. That lesson was something I needed to learn, because it helped me become a better businessman. Yet, the current government is telling us that debt is not a bad thing, and that we can borrow our way to success. I am here to tell members that it will not happen and it will not work.
Now, central banks are a whole different subject. Maybe I will have the opportunity to talk about central banks at some point. They know there is no better customer than a nation, especially a rich nation. Do members know why? It is because they will always pay their bills. They have a method of payment that is unequalled on the planet, and it is called taxes. They will just tax their citizens. Members should understand that there is no other means for a government, for a country, to raise revenue. It is just taxes.
Members might ask what about borrowing money. Well, that is just deferring the inevitable. Eventually, we are going to pay the piper, and banks know this. Banks know that they are always going to get their two points, whatever that is. The bank rate is at 3%, but they will get 5%. We like to say that if bank rates are at 0%, then that is a whole different discussion. I know that one day we are going to have that discussion, because it is a non-reality. However, if we assume that is the rate, banks will always get their 2%.
God help us if we ever go to traditional rates. Can members imagine, if we are paying at this point about $35 billion on an interest rate at 2%, if that were to spike to 4%, 6%, or 8%? Some of the younger folks here are surprised at 8%. I remember mortgages when we thought we were getting a real good deal when we paid 12.75%.
The Speaker is telling me I do not have much time left, but I do not think the current government has much time left either if the Liberals continue on this trajectory. If they continue this avenue of free spending and they continue to put this country, the people, and especially our children into a position where they are indebted and they can no longer pay that debt. I do not want to paint a picture that is unreal. Far be it from me to do that.
I will close by saying that the idea of spending money to get richer is foolhardy at best, and it is a mistake for the government to continue in that direction. I would ask that the Liberals look again at the direction they are going and reverse this terrible direction.
Nathaniel Erskine-Smith Liberal Beaches—East York, ON
Mr. Speaker, I wonder if the member could speak to the different kinds of debt. It is an unfortunate thing when we talk about debt to Canadians as just debt. There is capital infrastructure debt, operating expense debt that we might incur, and there are very different—