House of Commons Hansard #49 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was infrastructure.

Topics

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

3:40 p.m.

Conservative

Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC

Mr. Speaker, I thank the hon. member for his speech. It is always lovely to hear from a fellow British Columbian in this chamber, speaking up for the province we know and love.

I would like to ask the member specifically about a provision to the budget implementation act pertaining to the bank recapitalization regime, otherwise known as the bail-in. That particular provision takes up about 20%, if not 25% of the actual budget implementation act. I would like to know, has the member opposite heard from his constituents? Has he heard concerns regarding this?

Obviously, it sounds like a very eloquent regime. However, would the member agree that this particular kind of measure is untested in the G7, and I would say probably in the G20? Does he have any concerns about this type of legislation, and does he feel that more discussion needs to be made on this particular provision?

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

3:40 p.m.

Liberal

Randeep Sarai Liberal Surrey Centre, BC

Mr. Speaker, I think the bank recapitalization regime is consistent with international best practices and standards developed following the financial crisis. I think it will help enhance the bank resolution tool kit. It will support resilience of our financial sector. I believe this bail-in regime would apply only to Canada's largest banks and would allow authorities to recapitalize a failing bank by converting eligible long-term debt into common shares.

The government is introducing a legislative framework for that regime, and regulations and guidelines will follow.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

3:45 p.m.

NDP

Jenny Kwan NDP Vancouver East, BC

Mr. Speaker, British Columbia has a robust small business community. Ninety-eight per cent of our economy comes from the small business community.

The current Prime Minister, during the election campaign, denigrated the small business community and pretty well called small businesses tax cheats. He flip-flopped and then promised to reduce the small business community's taxes down to 9%. In this budget, he failed to deliver on that promise.

I wonder whether the member for Surrey Centre, who has a robust small business community in his riding, would join with the NDP opposition to call on his own government to make good on the small business tax cuts that the Prime Minister promised during the campaign.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

3:45 p.m.

Liberal

Randeep Sarai Liberal Surrey Centre, BC

Mr. Speaker, when I speak with my constituents and the small business owners in my riding, they say they want shorter travel times, better infrastructure, to get to and from their businesses faster, and a more robust economy. That is their first and foremost demand. They are very happy with the current budget, which is going to help them get to and from work and job sites quicker and allow their employees to get to and from job sites quicker through the public transit and transportation infrastructure investments that will take place.

That is what the small business community needs. It needs jobs and people to get to their jobs quicker. That is what they were demanding and that is the response I am getting.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

3:45 p.m.

Vancouver Quadra B.C.

Liberal

Joyce Murray LiberalParliamentary Secretary to the President of the Treasury Board

Mr. Speaker, I have three children who were educated in their primary school years in Surrey, so I know the community quite well.

I would like to hear from the member what this budget offers, in his view, to alleviate the shortage of affordable housing and address housing prices in his riding and in the greater Surrey area.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

3:45 p.m.

Liberal

Randeep Sarai Liberal Surrey Centre, BC

Mr. Speaker, this budget brings a lot in terms of social funding through CMHC.

My constituents were very happy to hear my answer to the very first question I was asked when I campaigned and got nominated, which was whether co-op housing agreements would be renewed and maintained. My understanding is that this budget will maintain and renew those agreements so that we can keep affordable housing in my great city and help those who are financially challenged or have lower incomes stay in my city.

I am very happy that this budget addresses the very first question that I was ever asked as a political candidate in this election.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

3:45 p.m.

Vancouver Quadra B.C.

Liberal

Joyce Murray LiberalParliamentary Secretary to the President of the Treasury Board

Mr. Speaker, I rise today to speak on the bill that I just asked a question about, Bill C-15, which will implement many of the measures contained in the budget that our government tabled on March 22.

In electing a new government, millions of Canadians signalled their desire for change. Our government was elected, in part, because we took that desire seriously. We offered Canadians an ambitious new plan for a strong middle class and a strong economy. We promised that we would do all we could do to help every Canadian succeed.

Budget 2016 is an important part of fulfilling that promise. It offers immediate help to those who need it the most, and lays the groundwork for sustained, inclusive economic growth that will benefit Canada's middle class and those working hard to join it. It helps reduce the income inequality gap while stimulating the clean economy.

For generations, Canadians worked hard, secure in the belief that their hard work would be rewarded. They trusted that in exchange for their honest efforts, they would realize greater opportunities for themselves and their families. This sense of optimism, paired with government policies that strengthen the middle class, as well as the robust immigration we have had that has created such a diverse country, has helped to make Canada the country it is today.

However, in recent years, the benefits of economic growth have been shared by fewer and fewer Canadians. Canada's wealthiest 1% have seen their income double in 30 years. Meanwhile, even though household costs continue to rise, most families' incomes have barely risen over the same 30 years, making it harder to make ends meet.

In Vancouver, we have the double whammy of a shortage of affordable housing and skyrocketing housing prices. That first started in my riding of Vancouver Quadra, on the west side of Vancouver, but it has now moved into our metro area.

I am pleased to say that I have met directly with leaders in CMHC, to make sure they understand the Vancouver situation, how hard it is for ordinary families and young people to buy a house and make a home in Vancouver, and the downside of that for our city. I am also pleased to have met several times with the minister responsible for housing, so that he can understand Vancouver's unique situation.

Our government has responded in this budget, not only with a massive infrastructure investment, social housing being a big part of it, but also through a half a million dollars being allocated for StatsCan to thoroughly research and understand the statistics, and bring the evidence forward about the housing price increases that I just described.

With budget 2016, our government seeks to help more Canadians and to restore the confidence of Canadians in a brighter, more prosperous future. I am going to speak about a couple of things that are near and dear to my heart. One of them is the environment, and another one is veterans.

The environment is actually the top issue for Vancouver Quadra constituents, according to the surveys and how they fill them out. Our government is operating on the principle that the economy and the environment go hand in hand. I used to say that 15 years ago when I was an environment minister for the Province of British Columbia, but that principle has not been in operation over the last 10 years. I am very pleased that our environment minister, our Prime Minister, and our cabinet see the world that way.

I would like to highlight some of the investments in the environment. Budget 2016 provides $3.4 billion over five years to address climate change and air pollution, ecological protection, and to restore public trust in the environmental assessment processes. It is a very important investment.

In addition to that, the budget invests $81 million to boost Canada's marine and coastal protected areas, from 1% today to 10% by 2020, a very ambitious program of improving protection for our marine areas.

In addition, $40 million a year has been reinstated for ocean science investments for research and science, so we can help protect our fish stocks, like our wild salmon that are so important to British Columbians.

The Kitsilano Coast Guard base, which is an absolutely necessary facility and was closed by the Conservative government, has been reopened. The announcement took place a week or so ago. This base will have a strengthened mandate to protect our environment, our ecosystem in English Bay and Burrard Inlet, and the beaches, by responding to oil spills. There is a lot of good news on the environment.

The other area where we needed real change to happen, and which Vancouver Quadra constituents see as a core responsibility of a responsible government, has to do with veterans. Veterans have dedicated their lives to the defence of our country and deserve our unwavering support. Frankly, they did not receive that from the previous government.

The Government of Canada, over the decades, has had a social covenant with all veterans and their families. However, the previous government had their lawyers arguing in lawsuits that it did not exist, and they tried to prevent the veterans from having a fair settlement for their injuries. That is a sacred obligation that we must and we will meet with both respect and gratitude.

As the defence critic for two years prior to the recent election, I met many times with veterans in town halls, in Legion halls, and meeting rooms across the country and in Ottawa, and heard their many concerns. I am delighted that our government will give back to veterans who have given so much to Canadians. We will respect the social covenant and this sacred obligation.

The bill restores critical access to services for veterans and ensures the long-term financial security of disabled veterans. Canada's veterans will receive more in local in-person government services, as well as better access to personalized case managers.

With this budget, we are providing additional funding to Veterans Affairs Canada, so it can reopen service offices recently shuttered in Charlottetown, Sydney, Corner Brook, Windsor, Thunder Bay, Saskatoon, Brandon, and in Prince George and Kelowna in my province of British Columbia. We are also planning to open a new office in Surrey, B.C.

To help veterans in their rehabilitation process, we will enhance front-line services by hiring additional case managers and reducing the client-to-case manager ratio to no more than 25 to one. We will increase the earnings loss benefit from 75% to 90% of a veteran's monthly gross pre-release military salary. The principle here is that veterans who have been injured should not have to live in poverty because the government is ignoring their needs.

There are many other aspects of the veterans' requests that are being satisfied in the budget, and the government will continue to consult with veterans toward the full package of support and respect that they have earned and they deserve. Canadian Armed Forces and veterans with service-related disabilities will see an increase in the benefits they receive, and they will see an increase in the services that they are provided.

The measures contained in our budget will not only benefit our veterans, but other groups of Canadians who deserve our support and our respect. This includes senior citizens and our children.

Unfortunately, I do not have time in this speech to elaborate on the groundbreaking investments we are making in seniors and children that will remove almost one million low-income seniors from below the poverty line and lift hundreds of thousands of children above the poverty line as well.

By boosting funding for the most vulnerable, we are reducing income inequality. We are investing for the years and the decades to come. We are investing in our children and grandchildren, so that they may inherit a more environmentally sustainable, prosperous, and hopeful Canada.

Simpler, tax free, and more generous, the child tax benefit is an example of the kind of good public policy that is in this budget. The bill is an essential step to restoring prosperity to the middle class and fairness to all Canadians.

I look forward to hearing from colleagues from all sides of the House as we discuss the bill in the coming days. It is a very timely and very important piece of legislation for Canadians.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

3:55 p.m.

Conservative

Cathay Wagantall Conservative Yorkton—Melville, SK

Mr. Speaker, I thank the member opposite for her comments, especially in regard to our veterans. Being deputy critic for veterans on this side of the House and having the opportunity to serve on the committee, it is very clear that veterans are a high priority for all of us. It is important to note that the previous minister in the past government was making some significant progress on the initial charter, which was introduced by the Liberal Party with the set amounts for the disability award that were put in place at that time. We all want to see this program grow and our vets to be truly cared for in the way they should be.

We are hearing in the committee over and over again about how things were improving, and are continuing to improve as well. However, in my own riding, and with the many veterans groups I am meeting with, there are two things that are concerning. I would like the member to comment on them briefly.

The first is that our veterans are concerned that their services are being provided in a large deficit situation and they are concerned about the ongoing viability of these awards. They are also very concerned with what is happening with the Department of National Defence. Our veterans care very much about our soldiers and are concerned about the cutbacks that we are seeing there.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4 p.m.

Liberal

Joyce Murray Liberal Vancouver Quadra, BC

Mr. Speaker, in the two years that I was defence critic, no one ever came to me and said “Gee, our most severely incapacitated and disabled veterans are living below the poverty line when they turn 65, but it's a good thing because we need to cut our spending.” They were not saying that.

In fact, I want to point out that the previous government took $1.1 billion out of the funding for Veterans Affairs Canada. That has contributed to the shrinking of services, funding, and benefits for those who deserve it the most.

I am very proud that we are reversing that. If we are doing that in the context of a deficit that we will be eliminating over the course of the next few years, so be it. Our veterans deserve to be put first.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4 p.m.

NDP

Sheri Benson NDP Saskatoon West, SK

Mr. Speaker, we heard during the campaign that the Liberals were promising more help to the middle class. In my riding, I have five neighbourhoods where the majority of people make $45,000 or less a year. We had heard that the so-called middle-class tax cut would benefit those earning $210,000 or more the most, which means that six out of 10 Canadians would not be getting anything from the tax cut.

Bill C-15 does not offer help through that tax cut to those who need it most. I would ask the member to comment on that.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4 p.m.

Liberal

Joyce Murray Liberal Vancouver Quadra, BC

Mr. Speaker, I do not know the source of the member's data. People making $210,000 and over will not enjoy any net benefits from the middle-class tax cuts, because there is an increase in their taxes. Nor would they enjoy any benefits from the new Canada child benefit because it will not be available to them.

Those who need it the most, at the lowest end of the income spectrum, will receive the bulk of the Canada child benefit. In fact, a low-income family with three young children could end up with about $19,000 of tax-free funding. It is almost like a guaranteed minimum income from the Canada child benefit. There will be nine out of 10 families who will benefit from the change. It is exactly what we need to address poverty and to reduce income inequality. Therefore, I am proud to support it.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4 p.m.

Liberal

William Amos Liberal Pontiac, QC

Mr. Speaker, it is an honour to rise to ask a question of my colleague, whose politics I have admired for a long time. She is a very authentic politician from Vancouver Quadra.

Having lived in her riding, and having cycled and taken the bus in that riding many times as a graduate student at UBC, what are her constituents saying about the proposed investments in public transit, and also in active transit, which is so important to our country?

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

May 5th, 2016 / 4 p.m.

Liberal

Joyce Murray Liberal Vancouver Quadra, BC

Mr. Speaker, the member for Pontiac clearly understands Vancouver Quadra, because the environment is the number one concern, as people express it to me. People in Vancouver Quadra are delighted at the investments in growing a clean energy economy and reducing greenhouse gas emissions: $2 billion, I believe, over two years to help the provinces do that.

The huge increase in investment in infrastructure for public transit is very important; it will take a lot of cars off of the streets of Vancouver. There is a wealth of issues that this budget addresses in terms of the priorities of Vancouver Quadra.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I will be sharing my time with my hon. colleague, the member for Carleton.

It is a great pleasure for me to be here today to speak about Bill C-15. When I use the word “pleasure”, what I mean is that it is a pleasure for me to share my thoughts with my colleagues and Canadians, although not necessarily a pleasure for me to speak about Bill C-15 and the Liberals’ budget.

Before broaching this subject, I believe that my colleagues will allow me a moment to repeat the appeal I launched to all Canadians regarding the tragic events now unfolding in Fort McMurray. Yesterday the population of Lac-Mégantic began rallying with the mayor to launch a universal call for donations to the Red Cross. We know that the Red Cross was a huge help to us in Lac-Mégantic during the recent tragedy. It raised over $14 million. This was for the little downtown core of a small town in Quebec that was ravaged by fire. Of course, there were deaths. It was an extremely painful event. Recovery has been very difficult for us, and even today, the Red Cross is with us, providing support.

What is happening right now in Fort McMurray is massive, it is serious, it is horrible. These people will also need Canadians' support. I commend the government's commitment this morning to match the amounts that Canadians donate to the Red Cross to help the people of Fort McMurray. I think this is a wonderful gesture, and if we want this money to get there and help them as soon as possible, I hope that people will donate. It is easy. People just need to visit the Red Cross website to make a donation. If every Canadian donated the equivalent of the price of a coffee, the people of Fort McMurray could receive nearly $60 million. God knows that they will need it.

Now, let us get back to Bill C-15. I read the bill. I read the summary, and this is how it begins:

Part 1 implements certain income tax measures proposed in the March 22, 2016 budget by (a) eliminating the education tax credit; (b) eliminating the textbook tax credit; (c) exempting from taxable income amounts received as rate assistance under the Ontario Electricity Support Program; (d) maintaining the small business tax rate at 10.5% for the 2016 and subsequent taxation years and making consequential adjustments...

Further on, it says:

(f) eliminating the children’s arts tax credit; (g) eliminating the family tax cut credit; (h) replacing the Canada child tax benefit and universal child care benefit with the new Canada child benefit;

There is also the following:

(i) eliminating the child fitness tax credit;

That is how Bill C-15 begins. The government claims to be the champion of the middle class, the champion of families, and when we take the time to read the summary, we see how these splendid changes are announced, this new Liberal approach. For a government that professes to be the champion of the middle class, the tone is set. I think that most people in the regions of Quebec will not be fooled by what is going on here.

That is especially true since most of those people work for small and medium-sized enterprises. Middle-class children are directly affected since the incentives for culture and physical fitness no longer exist.

In my speech, I will be talking about three subjects. First, as you may well have guessed, I will be talking about small and medium-sized businesses. Second, I will be talking about the agriculture sector, because we must not speak only about what is in the document. We could speak about that at length because there are a lot of things I would like to say, but we also need to speak about what is not in the document. The things that are missing from the budget make me very concerned for the people living regions such as mine. Third, we will, of course, be speaking about the Liberals' management approach, the Liberal way of piling deficit upon deficit.

During the election campaign, the Prime Minister clearly stated what he thinks of small and medium-sized enterprises. He said, “small businesses are actually just ways for wealthier Canadians to save on their taxes.”

We know why he said that. He said it because he himself has used small and medium-sized businesses to pay less income tax. During the election campaign, I wondered why he knew that. The Prime Minister created four SMEs in order to avoid paying income tax. I want to give him the benefit of the doubt. He does not know what a real SME is. In a region such as mine, an SME is a small manufacturing operation.

It is a small business that employs 5, 10, 50, or 60 people. It gives people work and creates wealth, which is good for the entire Canadian economy. That is what an SME is. It is not some kind of subterfuge on the part of a prime minister. It is something real.

For years, the mining industry was part of my riding. We had one company. We were a one-industry town. Today, all the mines are closed down. How do we survive? Because of SMEs. Unfortunately, they have been forgotten in the Liberal government's budget.

I will now sketch the profile of an SME based on an analysis done by the Canadian Federation of Independent Business. Some seem to think that the owners of SMEs are rolling in money, but the reality is quite different. Data obtained by Statistics Canada, the CFIB, and other sources show that the vast majority of entrepreneurs are members of the middle class. What a surprise. One-third of business owners earn less than $33,000 a year, and two-thirds earn less than $73,000 a year. In fact, 41% of business owners work more than 50 hours per week. There are far more earning under $40,000 a year than earning $250,000. The ratio is four to one. Are these the rich people described by the Prime Minister in the election campaign? Not at all.

The budget is a direct attack on small and medium-sized businesses, and thus on the middle class. The owners of SMEs in our regions are middle-class people. The Liberals have decided to keep the tax rate for small business at 10.5% instead of lowering it to 9%, as was anticipated. They had promised to reduce it. The president of the Canadian Federation of Independent Business said:

In its platform, in a written letter to CFIB members, and in campaign stops across the country, the new government promised to reduce the small business corporate tax rate to nine per cent by 2019. That promise was broken today as it announced the rate will remain at 10.5 per cent after 2016.

Another promise broken. What is more, the Liberals have also put an end to the credit for hiring. Overall, the Liberal budget will cost Canadian SMEs more than $2 billion.

I mentioned earlier that SME owners are not rich and are for the most part members of the middle class. That means a new bill for $2 billion foisted on the middle class. Budget 2016 raises corporate tax and hence the tax on the middle class.

I cannot speak much about agriculture, as there is nothing on it in the budget. There are not even any measures to help those farmers who are faced with a serious crisis and are losing thousands of dollars every month because of imports of diafiltered milk. I will not speak about this, but I hope that the government will do more than just talk about it. The Liberals said they would talk about it, and we want them to take action since they know the solution. I hope that they will act now.

Finally, on the deficit, I am not the one who will be talking. I will let my constituents do the talking. I asked some of them the following question: what does it mean to you to know that the government’s budget is going to mean deficits and to not know when fiscal balance will be restored? In fact, with this budget, the Liberals have repealed the law that requires us to have a balanced budget.

This is what one of my constituents said: “It is crucial to reduce the Liberals' too often hare-brained spending and stimulate the economy through loans to SMEs. The SMEs will actually create jobs. First the bills have to be paid. Once everything is paid, we stop getting into debt, or at least run up as little debt as possible. Once there are no more bills to pay, real freedom will start for us. That is real wealth. How much will this cost future generations? We have to live within our means. Either the Liberal team is incompetent or it decided not to tell Canadians the whole truth in order to win the election. In any case, it does not deserve to govern Canadians.”

It is incredible to see the wisdom of our constituents. I had many comments from my constituents, and I could quote many more of them, but my time is passing quickly.

In conclusion, I will say that the budget is not a budget based on sustainable development or in favour of the middle class, but a very average budget of sustainable deficit. That is why I will be voting against Bill C-15.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:15 p.m.

Whitby Ontario

Liberal

Celina Caesar-Chavannes LiberalParliamentary Secretary to the Prime Minister

Mr. Speaker, I was a small business owner before I had my job as a parliamentarian. I knew tax decreases enabled my business, but what allowed my business to grow and prosper was getting customers through the door.

Through the budget, we have proposed decreasing taxes for middle-class families. We have added a larger tax-free Canada child benefit. We have increased digital infrastructure spending. There is much more in the budget.

Does my colleague not think that the changes we have made and the policies we have put forward in the budget will help middle-income families, many that own small businesses, and will likely help them to grow?

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:15 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I am sure that my hon. colleague did everything she could because people working in SMEs work very hard and put in long hours to earn every single penny.

For that reason, our Conservative government decided to lower their taxes so they could grow their business and provide more services to their fellow Canadians.

When money is in the hands of talented entrepreneurs, it yields much more than when it remains in the hands of government.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:15 p.m.

NDP

Brigitte Sansoucy NDP Saint-Hyacinthe—Bagot, QC

Mr. Speaker, I would like to thank my colleague for his speech.

As the proud representative of Quebec's agri-food capital, I was especially interested in measures affecting agriculture. I, too, was disappointed to hear the Minister of Agriculture say that the only thing in the budget that could be of interest to agricultural producers was access to the Internet in rural areas. That is of very little concern to them.

I would like my colleague to tell us what he would have liked this budget to do for agriculture.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:15 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, I would like to thank the member.

First of all, I would have liked to hear that agriculture makes an important contribution to our economy. That would have been a good start because in our regions agriculture is not just a farm and bad odours in the spring. It means jobs and purchases of tractors and supplies. It is the economy of an entire town.

Unfortunately, just like everything else that has to do with Quebec's and Canada's regions, it seems to have been ignored by the government. This budget makes absolutely no mention of it.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:15 p.m.

Conservative

Gérard Deltell Conservative Louis-Saint-Laurent, QC

Mr. Speaker, I thank my colleague for his speech. He was elected barely six months ago, but he nonetheless has excellent political experience, having been the mayor of a municipality.

As I believe I told the Minister of Finance yesterday, in Quebec, municipalities are not allowed to post a deficit. They may incur debt when they borrow to engage in development, but they are not allowed to run a deficit.

However, this government, which got itself elected on the promise of a small $10-billion deficit, is now imposing a $30-billion deficit on Canadians.

As a former mayor and city manager who was not allowed to run a deficit, could the hon. member explain the dangers that face Canadians due to a deficit three times higher than what the Liberals promised during the election campaign?

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:15 p.m.

Conservative

Luc Berthold Conservative Mégantic—L'Érable, QC

Mr. Speaker, when a city in Quebec posts a deficit, the first penny from the following year’s taxes goes toward paying down that debt.

When a deficit is posted, citizens must be taxed in order to pay it down immediately, not in 20 or 30 years. Municipalities know that they cannot use money they do not have to repair streets and do all sorts of things. They cannot post a deficit.

I really appreciate this question, because that surprised me as well. The Liberals got elected saying that they would post a very small deficit, and in the end it turned out to be very big.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:15 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Mr. Speaker, we are told all the time that an activist government is like a gigantic fairness machine, transferring money from the wealthy to the needy. Why, then, does this machine seem so often to send money in the opposite direction?

The Bombardier bailout is a case study. The Liberal government has now offered a billion middle-class tax dollars to a company that paid $8 million to just one of its executives in 2015. According to Statistics Canada data, the lion's share of federal income tax that will fund this bailout comes from people earning between $45,000 and $90,000 a year. The federal government got more money from this income cohort than any other, money that it will use to bail out a company whose controlling family is said to be worth $1.77 billion.

In the same year, as the company began seeking that bailout, it had enough money to pay $32 million to eight named executive officers, an average of $4 million per person. That does not just make them part of the infamous 1% but the 0.01%.

A company has the right to pay its leaders anything it wants with its own money, but this bailout represents a massive wealth transfer from the working class to the wealthiest of the wealthy. Some will argue that rich pay packages are necessary to attract top executive talent, but Liberals explicitly reject that argument. They just won an election on a platform of raising taxes on anyone earning $200,000 a year, which is the Liberal definition of rich. Yet Bombardier paid 40 times that amount to a single executive. If executive compensation were capped at $200,000 a year in 2015, Bombardier would have saved enough money to fund 400 more jobs at $75,000 a year.

Of course, this is not about jobs. If it were, the budget would not have simultaneously raised taxes on small business job creators. Incidentally, it raised it by $1 billion between now and the next election, the same $1 billion that the Liberals want to give to Bombardier.

Taking money from job creators to give it to billionaires does not create jobs. If this were about creating jobs, the company would not have rejected the federal government's initial bailout of just a few weeks ago. It turns out beggars can be choosers. Nor would the vice-president of the company's C Series program have said that a bailout was not needed to save jobs, but merely “an extra bonus”. Is it really the responsibility of middle-class taxpayers to fund extra bonuses for the wealthy and well-connected? Unfortunately, it would seem so.

According to a recently leaked government report entitled, “Examining Ontario's Business Support Programs”, “Ontario’s business support programs favour the largest and oldest companies, the companies least likely to be in need of support.” About 200 companies, or 0.1% of Ontario businesses, got 30% of government subsidies, the report calculated. Why? Because the wheels of corporate welfare are greased with money, money for consultants to help navigate Ontario's 65 corporate aid programs in nine ministries, money for lobbyists to push an application along, and money for donations to the politicians who will make the final decision.

Postmedia's Anthony Furey recently revealed that companies that donated to the Ontario Liberals enjoyed massive taxpayer-funded grants. While Bombardier does not donate to federal politicians or parties, the lobbying commissioner's website shows the company met with designated federal public office-holders 54 times in the last 6 months.

All of this activity is legal, ethical, and properly reported, but it cost money. Therefore, those without money cannot do it. Because they cannot influence the government's commercial decisions, they rarely benefit from them.

The wealthy can afford to work the system and so the system works for them. Examples abound: Ontario's taxpayer-financed electric vehicle incentive program recently helped super rich car lovers buy the million dollar Porsche 918 Spyder, according to the CBC; Ontario's so-called Green Energy Act, which forces higher hydro bills on seniors living on fixed incomes in order to subsidize well-connected, so-called clean energy companies that produce almost no reliable power; and elsewhere, government-mandated taxi cartels shut out competition and empower millionaire taxi plate owners to exploit cab drivers and passengers.

It is not that government failed to stop these injustices, rather, it has caused them. It is like the Sheriff of Nottingham posing as Robin Hood. We should fight for social justice. We Conservatives believe in doing so. The best way to start is by getting government, and the wealthy interests that influence it, off the backs and out of the pockets of the middle class and the less fortunate. In so doing, we can truly champion the underdogs among us so they can be part of a better and brighter future for us all.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:25 p.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, while I appreciate the member's words, I do not necessarily agree with them.

I find it somewhat interesting that on the one hand, we have the Conservative Party say that we should forget about Bombardier, forget about trying to help the potential thousands of employees in a very important aerospace industry, not only in the province of Quebec but other provinces that are also directly or indirectly affiliated. On the other hand, the New Democratic Party and the members of the Bloc are saying that we should throw it all in, that we should give more, and that we should do this or that. The Liberal Party has had the right approach, which is to see what we can do to develop and enhance the aerospace industry in all regions of our country.

The member talked about tax fairness. Why would the member vote against a budget that delivers a tax decrease to nine million Canadians? That is what the member is voting against. Why would he do so if he truly believes the middle class should have more money? That is exactly what they would be getting.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:25 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Mr. Speaker, the budget in question will give that member a nice big tax reduction, even though he makes $150,000 a year. However, single mothers who are earning $45,000 a year will get no income tax reduction whatsoever.

With respect to the second point on Bombardier, the Liberal approach on Bombardier has been to do $2 billion worth of harm to the company by blocking the expansion of the Toronto island airport, and in the process cancelling the order for $2 billion worth of jets by Porter Airlines, which lands at that airport. Then it comes forward, along with the Government of Quebec, to offer $2 billion worth of taxpayer help.

Our approach would be to do neither. We would let the company expand its operations and sell to another great Canadian company by landing in the heart of downtown Toronto, which has the simultaneous effect of cutting off traffic between Pearson Airport and the downtown business section in Canada's busiest city and giving a free enterprise solution that will cost nothing to taxpayers to a company that is seeking to attract new revenues. By contrast, the approach of the Liberals is to take a billion dollars from everyday middle-class Canadians to bailout a company that is controlled by a billionaire family, which paid $32 million in executive compensation in the same year that it was seeking handouts from the government.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:25 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I thank my colleague for his speech. We have not had an opportunity to debate for a long time.

I pinch myself a little when I hear a Conservative say he is concerned about social justice and the disadvantaged in our society after his government gave billions of dollars in gifts to big banks, big corporations, and oil companies all over the country.

I am also surprised to hear that the Conservative Party’s position on Bombardier is to do absolutely nothing and abandon Montreal’s aerospace sector. I will enjoy talking about that when I go back home.

I would like to hear what he thinks about the Liberals’ deception with respect to the tax cuts for the middle class. In fact, 6 out of 10 people will not benefit from this, including people who earn less than $45,000 a year and need it most. These people have been abandoned in the Liberals’ budget.

Second ReadingBudget Implementation Act, 2016, No. 1.Government Orders

4:30 p.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Mr. Speaker, what the hon. member just said in his conclusion is true. He is right: people earning $45,000 a year will receive literally nothing by way of a tax cut from the federal government. That is true.

However, I find it ironic that a so-called socialist—