Debates of Dec. 5th, 2016

Budget Implementation Act, 2016, No. 2

[Karen McCrimmon, Liberal, Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence]

Madam Speaker, it has been interesting to sit and listen to the debate. I have heard a lot of good ideas.

There is more work to be done. I can that about even my own portfolio. However, I really have to share the good news. We are heading in the right direction. Is it all done yet? No, it is not. However, we have taken some major steps forward. A lot of them involve the financial stability and security of veterans. To me, that is something really near and dear to my heart.

We can talk about the difference it is going to make in veterans' lives when we increase the disability award from $310,000 to $360,000, which is part of this budget, and when we increase the earnings loss benefit for injured veterans, so that instead of their getting just 75% of their pre-release salary, they will now get 90% of their pre-release salary. That will make a big difference in their lives.

There is also an upcoming change in the permanent impairment allowance. We are going to change it and call it “career impact allowance”. The eligibility criteria for the permanent impairment allowance were so narrow that hardly anyone could get access to that particular benefit. By making it a career impact allowance—and this is something that is particularly important for young veterans—if they are injured when they are very young, we will give them the financial security they would have had if they had not left the military early due to their injuries. That will make a big difference in the lives of very young veterans. That is one place where there have been significant shortfalls and gaps.

There is a lot of work to do. The start that we have made is to improve the service that Veterans Affairs Canada is providing to veterans. Are we there yet? No, we are not. Opening 10 new offices is a huge step in the right direction, because it is much easier to get things done face to face than online or by telephone. We have heard again and again that a high-touch kind of system, in which people can go to talk to someone face to face instead of waiting on the telephone for a long time, makes a big difference.

It is the same when we talk about hiring new caseworkers or service agents. There was a huge backlog of cases. The service standard for Veterans Affairs was not even close to being met. Now that we are hiring new people, who are now in the middle of being trained, we will be able to deal with those disability requests a lot sooner than we had in the past. We started with this backlog. It is coming down. However, it takes time, because we need to train new people.

There have been shortages at Veterans Affairs Canada over the last few years. There was a loss of 900 employees. The rest of the employees who were left behind really care about veterans. They want to make sure they are well-served. However, because there were so few of them, a lot of them ended up suffering burnout. These veterans mattered to them. However, there were so few of them and they were carrying so many cases that they could not help the veterans and they, the people who were supposed to be helping others, have ended up being injured because of the shortfall of workers at Veterans Affairs Canada.

We know it is never an easy thing to change government departments and how they are structured and move forward. However, we have a wonderful group of people who really are committed to these veterans and to providing them with the kind of service they need and deserve. Part of this budget implementation act is to get these things moving.

There is a lot left to do. There is absolutely no doubt about it, but we are on the right track. I can say the same thing about looking after veterans as with looking after Canadians. Have we got it all done yet? No we have not. Are we heading in the right direction? Yes we are.

I was out knocking on doors on Sunday, and people were telling me what a difference the Canada child benefit is making to their lives already, especially for those who do not have a large income. For example, I heard that they now have the money they need to have their son play hockey, or that they now have the money they need to get him involved instead of sitting in the basement playing with his iPad or watching television and videos. Now he is participating in sports. Now he is involved and getting that social interaction with other people in his neighbourhood. They are celebrating. Now small communities are working to get their kids involved and get them active. Now they have the money and opportunity to do that.

It is the same thing with the middle-class tax cut. There is huge opportunity out there, and I do believe that if the middle class is doing well, everyone will end up doing well, because it creates opportunity. It creates jobs. Did members know that here in Ontario retail sales are up by 7%? This creates jobs. It creates opportunities, because people have more money to spend. We can see the absolute evidence of that here in Ontario.

If we look at our economy as a whole, investments are happening and starting to show results. Do the results happen overnight? No, they do not. They take a bit of time. However, we are now seeing that people have more money in their pockets.

If the middle class is given more money, it will be spent here at home. It is going to be spent and invested here in hockey equipment, in opportunities for children, in community events, and in making their lives just a little bit better. That is what this first budget bill is about. It is about improving the lives of Canadians and knowing that if we make these targeted, strategic investments, there will be opportunities created by others.

I prefer to talk about it in terms of employment generally. While I talk about employment for veterans and others talk about employment for young people and seniors, we need to talk about employment across a broad spectrum. We need to talk in terms of innovation, job creation, and creating new jobs, the ones that we need for the future. This is what we are trying to do, not to look at things just in one particular silo, but to look across the spectrum and to create those kinds of benefits and opportunities for all Canadians.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Madam Speaker, I listened closely to my colleague's comments, and a number of times she said something to the effect that we are on the right track. A number of times she said that we are heading in the right direction. I would like to point out a number of areas where the current government is absolutely not heading in the right direction.

In the budget book, on page 234, members will find that the interest cost alone between today and 2020 will increase by $10 billion per year. Added to that, in the fall fiscal update, on page 66, we clearly see that an additional $5 billion in interest costs per year by 2020. That is $15 billion per year that Canadians will be spending simply on paying interest. A number of times we have asked the finance minister when we will return to a balanced budget, but there has been no answer.

How can we say that we are heading in the right direction and that budget 2016 is good for our kids and grandkids, when they are going to be the ones saddled paying this debt down? It does not add up, and I would like my colleague to answer that question.

[Karen McCrimmon, Liberal, Kanata—Carleton, ON]

Madam Speaker, it is a discussion that we need to have. I know what the fiscal update is. It is a snapshot in time. The previous government, depending upon who one listens to, added $150 billion in additional debt. When I knock on doors and hear that people are concerned about the debt, I get it. I tell them it is like having a beautiful house that has a leaky roof and basement and infrastructure in the house that is not working. What do we do? Do we go into debt to fix the roof and the basement so we do not lose the entire investment?

While I understand the concern about debt, the things we are doing now to enhance, promote, and preserve our infrastructure are really important.

[Wayne Stetski, NDP, Kootenay—Columbia, BC]

Madam Speaker, I would really like the member to help me out with something, because I am quite confused. With the average income being $31,000 across Canada, how did the Liberal Party decide that $45,000 to $190,000 describes the middle class in Canada for purposes of this tax break?

Second, if you truly want to benefit children and families living in poverty, why would you not have agreed to index the Canada child benefit annually so that people can keep up with inflation over the next five years?

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I would remind the member that he is not to address his questions directly to another member. It has to be done through the Speaker. I would suggest that members do not use the word “you” to avoid that situation.

The hon. Parliamentary Secretary.

[Karen McCrimmon, Liberal, Kanata—Carleton, ON]

I cannot give you a specific answer to your first question, but I think I understand why. As I said, we are not finished yet. This is just the first step to get the money flowing into the economy and to make sure that the most vulnerable are looked after. We will continue to grow from there.

There is some thought that if we get the middle class going, it will create opportunities for others. As I said, I know there is definitely more to do. When we talk about indexing to inflation, etc., just because it is not done now does not mean it is not part of a plan for later. I do not know the answer to that, but if that ends up being something that needs to be done, I am sure it will be discussed.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Similarly, I would remind the parliamentary secretary not to use the word “your” when she was addressing the question directly to the member. It has to go through the Speaker.

Resuming debate, the hon. member for Souris—Moose Mountain.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Madam Speaker, I am pleased that I am not denied, like so many of my colleagues, the opportunity to rise today in the House to speak to Bill C-29, the budget implementation act, 2016, No. 2.

The visions in the bill will have a wide range of effects on my constituency and all of Canada, and it is important that the Liberals understand how their decisions truly impact Canadians.

I will start off by giving a bit of background about the current issues facing my riding, located in southeast Saskatchewan. It is a rural riding, and many people are employed in either the agricultural sector or the energy sector. In fact, my hometown of Estevan is known as the energy city. Because of this, the downturn in the oil and gas industry has been devastating, particularly in the smaller communities.

There are thousands of laid off workers who are looking for employment. These men and women are wondering how they will feed their families. It is unfortunate that the government seems to be unable or unwilling to provide them with the help they so sorely need.

The trickle-down effect is also happening in my riding. Small businesses, such as retail stores and restaurants, are closing their doors for good, because the customers simply are not there. It is difficult for a family to justify going out for a nice dinner when they have not received a paycheque in months. My constituents need their government to help them in their time of need, but they are seemingly being ignored.

As I said, the biggest issue currently facing my riding is lack of jobs. The Conservative Party understands that jobs are created by small and medium-sized businesses. We need to support these businesses in every way we can to ensure that our economy continues to thrive in the future.

There are hundreds of farms in my riding, and there are thousands of people employed in the agriculture industry. These farms are small businesses. Many are owned and operated by families that have been farming for over a hundred years. They are essential to both the cultural and economic fabric of Canada. Farmers feed the world, and Saskatchewan farmers are known for producing some of the best agricultural and agri-food products available worldwide.

When the Liberals were campaigning, they promised that they would lower the small business tax to 9% from 11%. Somehow this did not seem to make it into the budget. Unfortunately, I am not shocked by this omission. The Liberals have broken promises time and time again, and the failure to lower the small business tax is no exception.

Farmers in my constituency are extremely disappointed. At a time when jobs are scarce, the government is essentially telling them that they do not need the help that tax cuts would provide. It is despicable that the Liberals would mislead Canadians so blatantly, but thus far, it is what we have come to expect.

The bill also increases contributions to the Canada pension plan by small businesses. Not only did the government neglect to fulfill its promise to lower the small business tax rate, but now it is making these businesses pay even more for their employees' pension plans. For a small business that employs 15 people, this is an additional $15,000 per year that an employer has to pay. That is a huge amount for a small business. It could be the difference between keeping the business open and closing it down for good.

Not only did the government mislead small business owners about a reduction in the tax rate, it will also add to their financial burden by increasing the amount of CPP contributions. That is astounding.

Changes to the CPP are not helping my constituents. One gentleman from my riding has attempted to bring attention to this issue through petitions, but nothing has happened. My office wrote to the Minister of Employment, Workforce Development and Labour on his behalf, sharing his concern that an increase in the cost of medication has meant that his CPP payment does not even cover his basic necessities, like food and heat. The response from the minister's office outlined the government's plan for changes, stating that fully enhanced benefits will generally become available after about 40 years of making contributions. Not only are the Liberals refusing to make a payment increase for those in need, they are touting changes to the CPP that my constituent will not see in his lifetime.

The Liberals like to talk a lot about helping the middle class. They say that they want to help those who are struggling to join it. The bill does not do that. The government has taken away measures that were making Canadians' lives easier, such as the children's fitness tax credit.

I am the official opposition critic for sport, a role I am very proud of. I have seen first-hand the importance of getting children involved in sport at an early age and have witnessed the benefits that come from participation in sport. Sport improves social skills, leadership skills, and confidence and it promotes health and fitness.

However, this can get expensive, and the children's fitness tax credit was a way to ease that financial burden on parents who just want what is best for their children. Now they will not get that extra help.

The Liberal plan has failed Canadians with tax hikes and red tape. This is not helping families, and it is not helping the middle class.

Speaking of benefits, I must touch on the government's Canada child benefit, or CCB, which is essentially just an expensive reinvention of the wheel. Under the previous Conservative government, there were three measures put in place to help Canadian families with children: the universal child care benefit, the Canada child tax benefit, and the national child benefit supplement. Those three programs worked. They kept more money in the pockets of hard-working families, which should be the goal of any government.

When the Liberals announced the Canada child benefit, they forgot one important issue, indexation. Bill C-29, the second budget implementation bill, now confirms that the government will index the Canada child benefit to inflation, beginning in 2020. According to the parliamentary budget officer, the estimated cost of indexing and enriching the CCB will cost $42.5 billion over the next five years. This is an expense the government did not budget for. Canadian families simply cannot afford another tax hike. That is exactly what will happen to pay for the current government's lack of oversight. My constituents do not need to pay more taxes, and Canadians in general do not need that either.

I have spoken about jobs many times in this speech. I feel as though I need to so the Liberals can start to understand just how dire the situation is.

Due to the lack of available work in the oil and gas sector, many of my constituents have had to use employment insurance. Under the previous Conservative government, reforms were made to the EI system that actually helped Canadians get back to work. The changes made EI more efficient, focused on job creation, eliminated disincentives to work, and helped to support unemployed Canadians by helping match workers with jobs. These changes are now being repealed.

On this side of the House, we know that the best cure for unemployment is job creation. Employment insurance is meant to be a temporary support that helps unemployed Canadians through a difficult situation. It is not a permanent situation, which is why the changes introduced by the Conservatives were so beneficial. These people want to work. My constituents want to work. They do not want to sit at home. They want to earn their paycheques. Anything the government can do to assist in finding jobs for these people, they should be doing. Instead, the Liberals are repealing measures that were truly helpful. Again, it shows how out of touch they are with the current needs of Canadians.

One way the government can create jobs is through investments in infrastructure. The Liberals say that their infrastructure will be the biggest and best that Canada has ever seen. They are spending billions of dollars, all of which needs to be paid back by the taxpayer, and most likely by our children, our grandchildren, and our great-grandchildren. Yet in my riding, there is virtually nothing to show for it. With the millions of dollars available to enhance public transit in urban areas, small rural communities and their applications for infrastructure funding are being ignored. This is unacceptable at a time when job creation should be a main focus of the government.

Simply put, infrastructure projects create jobs. They need these jobs. However, it appears that the Liberals are forgetting about rural Canada once again.

The record in Saskatchewan is plain to see. The Library of Parliament provided me with the figures on federal infrastructure spending in Saskatchewan over the past 20 years. From 1994 to 2005, total spending was $222.2 million under the Liberal government. From 2006 to 2015, under the previous Conservative government, total infrastructure spending in Saskatchewan was $1.256 billion. That is a huge increase in spending, and it came at a time when the province needed help. Why is it that now, when the people of Saskatchewan need their government's assistance in creating jobs, they are being left out in the cold?

The budget will not balance itself. The spending by the current government will affect Canadians for generations to come. The Liberals' only solution to the problems facing Canadians seems to be to borrow and spend even more money than the budget initially set out, money that will have to be paid back by Canadian workers, families, and job creators.

This bill does not help the middle class, and it certainly does not help my constituents. We need jobs. We need support. We need the Liberals to show confidence in the agriculture industry and in the oil industry. We need them to show confidence in innovation and recognize the value of carbon capture to the coal and power industry. We need it to come now.

For these reasons, I cannot support this budget.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I believe the member could not be more wrong.

This bill, through the implementation of the budget, would in fact be of great benefit to Canada's middle class. This bill, as I have pointed out on numerous occasions, would bring literally thousands of children out of poverty and thousands of seniors out of poverty. This bill would put more money in the pockets of Canadians, which would allow for a larger disposable income, thereby providing more business for small businesses. If we have a healthy middle class, we will have a healthier economy.

The Conservatives talk about supporting tax cuts, yet they are going to be voting against nine million Canadians who would be receiving a substantial tax cut. The question is why.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Madam Speaker, I have had a chance to walk around my riding and talk to all these people who are getting the CCB payments.

Many of them are asking who is going to pay for this. All this money is fine, but who is going to pay for it? They are asking how to turn it back, because the bottom line is that they say that it is not helping them, it is not going to help their children, and it is not going to help their grandchildren.

They are asking how the government is going to pay for it. It is not going to balance itself. Budgets do not do that.

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

Madam Speaker, I keep hearing from the Liberal side that their budget is actually great for the middle class.

I have a very simple question, because I have never heard a single Liberal member of Parliament define it. What is the middle class? Why do we have a tax cut that only starts at $45,000, which is fully accessible once people reach $90,000? That is considered by the Liberals to be the middle class, when the median income in Canada is $31,000.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Madam Speaker, it is a question I have. What is the middle class?

My understanding, and Canadians' understanding, of what is middle class is totally different from what the government's idea of what the middle class should be. The middle class needs to have the opportunity to work. That is what they want. They want jobs. They want the opportunity to step up and have those jobs and to get out there and do something.

The government is not creating jobs. It has not created one single full-time job since it came to power.

[Anthony Housefather, Liberal, Mount Royal, QC]

Madam Speaker, I was a little astounded when I heard the member's comments about the Canada child benefit and that the people in his riding who are receiving it are telling him that they cannot understand why they are getting this money and that it will not help them. They are asking how they are going to pay for it.

As we know, in the previous incarnation of the family allowance, all people of all income levels received it. Now the Canada child benefit is essentially going to people who need it the most. I have not had one person in my riding who is now getting it telling me, “Oh my goodness, I really should not be getting this”.

I am wondering how the member reconciles the idea that the richest used to get this. Now it is mostly going to the people who need it the most, and somehow they are coming to him and telling him that they do not really need it. I do not understand.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Madam Speaker, a lot of times, what we have is Liberals inventing words. The reality is, you are taking one thing and giving another. Here is a word for you, “dispocketnesia”—

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I would remind the member to address comments to the chair and not to individual members, please.

[Robert Gordon Kitchen, Conservative, Souris—Moose Mountain, SK]

Madam Speaker, I apologize.

Here is a word that I think needs to be put in the dictionary. It is “dispocketnesia”. It is a very simple word. It means, from “dis pocket to dat pocket.” That is what the Liberal government is doing. It is taking it from one hand and putting it in the other.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, I am very pleased to take part in today's debate on Bill C-29, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures.

When I got into politics a few years ago, I had one objective in mind, and that was to help my community and my riding, Rivière-des-Mille-Îles. With our first budget, presented in March 2016, our government took direct action to help middle-class Canadians and those who need it most. Today Canada has the lowest debt-to-GDP ratio in the G7, and our interest rates are at all-time lows. Now is the perfect time for Canada to invest in its own future success.

As a mother of four children, two girls and two boys, I want to ensure they have the same opportunities, and only by investing now will we create long-term, sustainable economic growth.

Strengthening the middle class will also help ensure a better quality of life for Canadians, who work hard, as well as better future opportunities for our children.

By creating the right economic context for the middle class we can build a country where everyone has the opportunity to succeed. I was very proud of our commitment to help the middle class during the last election campaign.

One of the first things we did as a government was implement a tax cut for the middle class and increase the tax rate by 1% for wealthier Canadians. Those changes are putting more money in the pockets of middle-class Canadians by making taxes fairer for everyone.

The Canada child benefit falls under that same line of measures. Thanks to this benefit, nine out of ten families will receive more in monthly benefits, which will help lift hundreds of thousands of children out of poverty. The benefit will be indexed as of 2020. In my riding, Rivière-des-Mille-Îles, 10,300 families and 18,870 children will receive more money. Many people are very happy, contrary to what my colleague was saying. My constituents are very happy to receive the Canada child benefit.

When I meet with my constituents in Rivière-des-Mille-Îles, they tell me that they feel supported by our government's measures. However, I know that the work has just begun. In Canada and elsewhere in the world, there is a growing consensus that governments need to invest to stimulate short-term economic growth and pave the way for long-term economic growth. That is why people across the country welcomed the big investments that were announced in the November 1 economic update.

The fall economic update proposed new commitments of $81.2 billion between now and 2027-28 in green infrastructure, social infrastructure, public transit, and of course transportation infrastructure that supports trade and rural and northern communities. In short, over $180 billion will be invested in community infrastructure across Canada.

We are investing today to build 21st century infrastructure because our government understands that infrastructure plays a key role in helping members of the middle class find good jobs and live in welcoming communities with clean air to breathe and clean water to drink.

The investments we are making will help reduce commute times for the middle class. This is one of the most important issues in my riding of Rivière-des-Mille-Îles, in the northern suburb of Montreal.

Finally I would like to reiterate my support for Bill C-29. Its progressive measures will help Canada's middle class and ensure that no one is left behind. We are laying the foundation for a more prosperous future for our children and grandchildren.

[Simon Marcil, Bloc, Mirabel, QC]

Madam Speaker, I understand that my colleague is happy to read the lines her party wrote for her.

She is telling us that she wants to pave the way for the future and for economic development and to invest in infrastructure. The problem is that the Liberals are doing it with our tax dollars and that the government wants to save money and protect its banking buddies from losing money. My colleague here voted against motion M-42, which is completely at odds with what she just told us.

I would ask the member to explain to us why she voted against this motion. As well, why is what she is saying inconsistent with her actions?

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, I commend my colleague from Mirabel, whose riding is north of mine.

The middle class and young families are thriving in his riding. He should be happy with the Canada child benefit and support Bill C-29.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Madam Speaker, a number of times today we have tried to find an answer to the question of when the Liberal government will actually tell us when it intends to return to balanced budgets, to discontinue its deficit upon deficit spending.

I pointed out that in the budget book itself, it clearly indicates that another $10 billion per year in interest alone will be added over the next four years. The fall economic update added another $5 billion per year in interest. That is $15 billion per year in interest going out the window, just for interest, let alone paying down the debt.

I would like my colleague to answer the question as to when she sees the Liberal government returning to balanced budgets.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, I thank my colleague for his question.

As I said in my speech, interest rates are at record lows. Now is the time to invest in infrastructure, in order to pave the way for the 21^st century.

It is green, social and transit infrastructure that will help stimulate economic growth and help the middle class.

[Ted Falk, Conservative, Provencher, MB]

Madam Speaker, I have a question about the infrastructure bank. The budget includes $15 billion to initially fund that bank. There is another $20 billion that would be generated by leveraging up assets that Canada owns. On top of that, we are going to invite foreign investment into our country to fund public infrastructure, to the tune of $180 billion, and give them a rate of return of 7% to 8%. Why would we not offer that to Canadians, perhaps by way of an enhanced Canada savings bond program, or something else where the money could stay here in Canada?

I do not think anyone disputes the necessity of funding infrastructure projects, but let us leave the money in Canada instead of sending it across the water.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Madam Speaker, I thank my colleague for his question.

As I said earlier, now is the time to invest. Interest rates are at record lows. Now is the time to invest and do what has been neglected for several years now. It is time to develop the economy, green and social infrastructure and highway infrastructure.

[Martin Shields, Conservative, Bow River, AB]

Madam Speaker, the small business tax is critical in my riding. We have a tremendous number of small businesses that are suffering. If that small business tax were to decrease, those are the businesses that really help support our community. What is your opinion of not having reduced that small business tax?

[The Assistant Deputy Speaker, NDP, Carol Hughes]

Again, you are doing that through me.

The hon. member for Rivière-des-Mille-Îles.