House of Commons Hansard #70 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was budget.

Topics

The House resumed from June 8 consideration of the motion that Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures, be read the third time and passed.

Budget Implementation Act, 2016, No. 1Government Orders

10:05 a.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, I am grateful to participate in the debate on the Liberal government's budget on behalf of the 100,000 people I represent in Lakeland.

I am here in this House today because of the farmers, energy workers, small business owners, public servants, and hard-working families across Lakeland who put their trust in me on October 19. People in Lakeland are facing adversity head on, struggling against job losses, the downturn in the energy sector, and helping their neighbours, friends, and families whose lives have been forever impacted by the raging wildfires in northern Alberta.

As they continue to build and to rebuild their communities and to pursue their dreams, I am committed to making sure their voices are heard on government decisions that matter to them, and particularly on how their hard-earned tax dollars are spent.

The people of Lakeland believe in a free market economy where Canadian workers are rewarded for their efforts, where entrepreneurs, inventors, investors, and hard workers can provide jobs and prosperity for their communities, and where self-reliance, personal responsibility, and generosity bolster incredible community spirit that supports charities and cares for the vulnerable.

In fact, 73% of my constituents voted for fiscally responsible leadership that values every dollar that belongs to the Canadian taxpayer. They know that, as the member for Carleton mentioned last week, a free market economy is the greatest poverty-fighting machine ever invented.

Like all of my Conservative colleagues who are privileged to serve the people who sent us here, my focus will always be on everyday Canadians, like the middle class the Liberal government purports to care about. Our focus is on everyday Canadians, without trust funds, and without friends and family in high places, people who go to work and run businesses to earn the money that they dutifully hand over to the government, trusting that their best interests will be taken into consideration and that their money will be spent wisely and with careful discretion and due diligence.

The government needs to fund priorities, to put needs before wants, and to remember that it cannot spend on everything, just like Canadians plan and prioritize with their families, businesses, and their personal budgets every day.

When Liberal politicians cut child care benefits, when they disallow families to split their income, and when they limit their ability to save for their futures, and then they use taxpayers' dollars to pay for their own nannies, their own personal domestic support, when these politicians use tax dollars for their families to go on trips, for swanky new furniture, paintings, and art, on office renos, while Canadians and their neighbours, their families, and their friends are losing their jobs and limiting their budgets to ensure they can pay their bills and their taxes, that is when Canadians lose faith in politicians. No wonder why. When that happens, we MPs are failing our responsibility to Canadians.

I am talking about all of the Albertans still working, and of all those who have lost their jobs in almost unprecedented numbers, and of the millions of Ontarians who must strictly budget to ensure they can pay their bills every month, and rural Ontarians and those on fixed incomes who limit groceries or go to food banks because of skyrocketing hydro rates courtesy of big out-of-touch government and bad public policy.

I am referring to Maritimers, where my family is from, who once worked in the oil sands, who are now back at home without a job and with few prospects while governments block opportunities for responsible natural resources development that would provide jobs and benefits for all communities and all provinces.

These are the people I think about every day, and these are the people I am standing to support today, as I speak about the government's fiscal fiction budget, as my colleague from Calgary Shepard has called it.

Let us start with the fundamentals. Any government expenditure takes money from someone and gives it to someone else. The Liberal budget includes excessive untargeted spending that will end up hurting businesses, families, and hard-working Canadians in the form of future tax increases in order to fund government handouts.

It has tried to pass this off as standing up for the middle class, but I think Canadians see through the smoke and mirrors, and see it for what it really is. I know Canadians in Lakeland do.

The government is simply redistributing wealth. The worst part of this, of course, is that what the Liberals are really doing is taking money from people who need it most. As an example, they have alluded to a potential carbon tax in their budget. The Liberals have not provided details yet, and like so many other things the government is doing, of course we are uncertain but we know one thing for sure.

Ultimately it is Canadians, families, consumers, business owners, the middle class, people on fixed incomes, the working poor, and charities, who are going to pay the high costs and increased prices of all goods and services, the guaranteed result of yet another tax. This particular tax will disproportionately target and harm rural and energy-based communities.

Canadian governments collect $17 billion annually from revenue generated by oil and gas workers to fund programs and services and provide benefits that increase the standard of living of all Canadians. Piling on more costs, especially during such challenging times, will only make things so much worse. It is a cold-hearted cash grab Canadians just cannot afford.

There can also be no guarantee that a national carbon tax would be so-called revenue neutral. What taxes are ever revenue neutral? Or dedicated to initiatives aimed at innovation and environmental stewardship. The carbon tax is just a revenue generator for government to feed reckless spending and out of control deficits masquerading as environmental policy.

Such a tax shift was rejected by Canadians in the 2008 election, something the member for Calgary Heritage reminded me recently. The Liberals are also sending hundreds of millions of Canadians' tax dollars to other countries instead of focusing on the priorities of Canadians and on the services they need and value.

Let us not forget the 700,000 middle-class small business owners who were counting on the promised lower small business tax rate of 9%. They are Canada's leading job creators, employing hundreds of thousands of Canadians, contributing to the economies of communities big and small, from coast to coast to coast. Because of the Liberals' broken promise, they are going to take $2 billion away from these hard-working business owners over the next four years. That is a lot of money that cannot be used to grow their businesses, to start up new ones, to hire people, and to increase wages.

Meanwhile, the Liberals are still pondering a government bailout of a multibillion-dollar company while denying the expansion of an airport that would have effectively boosted that company without any taxpayers' dollars. Why does this big government insist on making things so complicated when the answers are often so obvious?

I am not sure Canadians really anticipated the government would blow through their money so quickly. It is not the government's money, it is Canadians' money. They certainly did not anticipate a deficit ballooning to $30 billion and they did not anticipate it because that is not what the Liberals said they would do.

Of course, we know that this exorbitant deficit is a result of choices and not of circumstances. It is because of spending, given that the former Conservative government left a healthy surplus when the Liberals took office.

Canadians know that spending more money, increasing and introducing new taxes, and continuously hindering a key sector on which our economy relies will lead to an ongoing spiral of deficits and debt.

Who is going to pay for all of this? My friend, Michelle's brand new baby daughter, the young women in high school with Girls Inc. I met this week, the young guys apprenticing to start a career or upgrading their skills to get jobs in a different sector in Lakeland. Grandchildren and great-grandchildren will be paying off the tab, setting them up for fiscal failure before they even begin.

Because of decisions today, future governments will have less money for programs and services today's young Canadians deserve. It is irresponsible and it is wrong.

The government does not seem to get that hiking taxes does not create jobs. Governments that go down this path get stuck in a permanent cycle of taxing, borrowing, and spending.

Research has found that a negative relationship exists between government debt and economic growth. It impacts real lives. This will come as no surprise to my Conservative colleagues. According to a 2016 study on the cost of government debt, when government debt expands, it can cause long-term interest rates to rise, which in tum increases the cost of private sector borrowing. Higher borrowing costs can then discourage private capital investment, the key driver to long-term economic growth and jobs.

Government debt also results in significant interest payments, similar to paying mortgages or vehicle loans resulting in less money for priorities that directly impact Canadians' lives, like reducing the tax burden or paying for health care, education, and social services.

Take Ontario, which has the largest subnational sovereign debt in the world. Ontario spends nearly $1 billion per month on debt repayment. Imagine what governments of every level could do with the billions of dollars they are spending on debt servicing from broad-based tax relief to funding core programs and services.

I assure Lakeland and all Canadians who are growing increasingly concerned about their bank accounts and their prosperity that my Conservative colleagues and I will continue to stand up for the hard-working taxpayers and communities from Prince Rupert to Bonnyville, from Lloydminster to Charlottetown and everywhere in between. We will continue to be the voice of hard-working people who actually earn their own money and work tirelessly to provide for their families.

Budget Implementation Act, 2016, No. 1Government Orders

10:10 a.m.

Liberal

Wayne Long Liberal Saint John—Rothesay, NB

Mr. Speaker, I thank my hon. colleague for her passionate speech on our budget and about the economy. I listened with great interest to her speech, but one thing that was glaringly missing in the speech was those living in poverty, those living in need, and Canadians who need help, and Canadians who feel forgotten by the government over the last 10 years.

My question for the member is this. Tell me one thing the Conservatives have done over the last 10 years, particularly the last four years, to help those—

Budget Implementation Act, 2016, No. 1Government Orders

10:10 a.m.

Some hon. members

Oh, oh!

Budget Implementation Act, 2016, No. 1Government Orders

10:10 a.m.

Liberal

Wayne Long Liberal Saint John—Rothesay, NB

Mr. Speaker, the member opposite I am sure does not need help from my colleague opposite.

Could she tell me a specific program the Conservatives initiated over the last four years to help those people living in poverty?

Budget Implementation Act, 2016, No. 1Government Orders

10:15 a.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, I think the member was not actually listening to my comments because almost all of my comments were about low-income, working poor, charities, and people who are vulnerable and need support the most and the fact that high taxes causes lost jobs and takes away the ability of communities, charities, provinces, and municipalities to support vulnerable, low-income, and poor people.

The government took 400,000 seniors off the tax rolls entirely and lowered the tax rates for all Canadians and all businesses to the lowest rate in nearly 60 years and created 1.2 million net new jobs, even after the recession, putting Canada in the strongest position of all the G7 countries, with the wealthiest middle class in the world.

The whole point is that lowering taxes, limiting government, focusing government spending on priorities, and putting needs before wants ensures that we can provide—

Budget Implementation Act, 2016, No. 1Government Orders

10:15 a.m.

Conservative

The Deputy Speaker Conservative Bruce Stanton

Order, please.

Questions and comments.

The hon. member for Courtenay—Alberni.

Budget Implementation Act, 2016, No. 1Government Orders

10:15 a.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Mr. Speaker, I want to thank the hon. member for bringing forward her concerns from her riding.

I find it very disturbing to hear members of the government talking a lot about how they are helping the middle class, helping those to join the middle class. When we look at their tax break for the middle class, we find out that two-thirds of Canadians do not benefit. Anybody who is earning $23 an hour or less will not benefit. Those who need help to join the middle class are not getting the help they need.

We also know that the government made a promise to small business to reduce taxes from 11% to 9%. Those are the businesses that need a lift so they can grow.

I want to hear from the member how the member feels about the promises from the government and talking about how it is helping those join the middle class, helping those in poverty. Maybe the member could elaborate a bit more.

Budget Implementation Act, 2016, No. 1Government Orders

10:15 a.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, I mentioned the promised lower small business tax rate partly because I have heard from so many businesses and entrepreneurs in my communities in Lakeland who, between provincial policy that is increasing taxes and increasing their costs and the federal failure to continue on its promise to lower the small tax rate, are getting squeezed from all levels. Ultimately, that means they cannot expand their businesses, they cannot invest in new ones, they cannot raise wages or benefits. These are businesses that have been in communities for generations. All sides are being squeezed while money is taken away from them so they cannot continue to be Canada's leading job creators.

Another thing that we have just heard about recently is the astronomical costs, the tens of thousands of dollars a year, that Calgary food banks and Calgary homeless shelters will have to pay because of the provincial government's new carbon tax.

We cannot keep nickel-and-diming job creators and—

Budget Implementation Act, 2016, No. 1Government Orders

10:15 a.m.

Conservative

The Deputy Speaker Conservative Bruce Stanton

Order, please.

Questions and comments.

The hon. member for Carleton.

Budget Implementation Act, 2016, No. 1Government Orders

10:15 a.m.

Conservative

Pierre Poilievre Conservative Carleton, ON

Mr. Speaker, the member has done a great job pointing out the Liberal hypocrisy on the subject of social justice and helping our most vulnerable.

Under the previous Conservative government, we raised the personal exemption to allow people to earn more tax free; literally, lifting hundreds of thousands of aspiring working-class people off the tax rolls altogether.

Jim Flaherty brought in the working income tax credit, which accelerated earned income to ensure that working always pays more than welfare. We lowered the poverty rate to its lowest level since the poverty rate was recorded. It was at 8.8% the last time it was recorded, under the Conservative government, which is half the level it was 20 years earlier, under the previous Liberals.

I wonder if the member would comment on the Liberal tax plan, which gives about $1,000 in tax relief to a Liberal MP earning $150,000 a year and gives exactly zero to a working person earning $45,000 a year?

Budget Implementation Act, 2016, No. 1Government Orders

10:15 a.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, I think my colleague, the member for Carleton, always does an excellent job exposing the cavernous gap between what the Liberals say they they want to do and what they actually do, and how it harms the very people who they often purport to care about the most.

In fact, in free developed countries around the world, we do not have to take a politician's word on this. It is true that people are able to pursue their dreams, build their lives, and pursue opportunities in free-market-based economies with limited government. That is the true way to lift people out of poverty and to allow people to provide for their families and for their communities.

Budget Implementation Act, 2016, No. 1Government Orders

10:20 a.m.

Liberal

Steven MacKinnon Liberal Gatineau, QC

Mr. Speaker, before I begin, I want to let you know that I will be sharing my time with the hon. member for Cowichan—Malahat—Langford.

We learned this morning of the death of one of Canada's great icons, Gordie Howe. He is someone I have admired and most Canadians have admired. I want to extend my condolences to his family and to all those who felt strongly about that man.

We are at third reading, and pretty much everything there is to say about this budget has been said. We debated elements of this budget at length during the campaign. There was some back-and-forth here in the House. As a member of the Standing Committee on Finance, I worked with my colleagues to expand my knowledge of the issues and investments in the budget. Today, I would like to sum up by talking about the impact this will have on my riding, Gatineau.

The people of Gatineau work hard. It is an honour to represent them. Many people work for the federal public service or for companies, institutions, and organizations connected to the federal government. We also have teachers and health care workers, who contribute to the well-being of our children and seniors every day. These are people who work hard to help build Canada by being involved in or working for the federal government or by providing services to people in the federal government.

These are people who needed to be recognized not only for their efforts, but also for their diversity. The previous government created programs here and there to target this or that group, but it never managed to recognize the diversity and simplicity of the uniquely Canadian unit called the family. A family can consist of a single mother or same-sex partners. There can be situations that are sometimes difficult. Nevertheless, what families all have in common is that they work hard and want the best for their children. They also want their government to acknowledge that they need a little help and recognition for what they are doing for the future of Canadian society.

It cannot be emphasized enough that the Canada child benefit will revolutionize social policy in Canada. It guarantees that 300,000 young Canadians, including many in my riding, Gatineau, and the Outaouais region of Quebec, will no longer be living in poverty. As we said during the election campaign, this will help 300,000 children, including 80,000 in Quebec, who would fill the Olympic stadium, and 220,000 or more in the rest of Canada. It is a real revolution.

As for the others, nine out of 10 families will get a little help that will allow them to invest in the skates that might make their child the next Gordie Howe, for example. They will be able to invest in music lessons, in the necessities of life, or perhaps in little treats, like an ice cream after soccer practice.

Gatineau is home to many young families who are helping build this country. These are the people who will benefit from this extra money, and that is why our message of change during the election campaign resonated with them so much.

It resonated because Canada recognized that a family is a family, whether we are married or single parents, whether we are living in a tough situation or in a conventional one. Raising a child is one of the most rewarding and significant responsibilities that Canadians with the good fortune of having children will face.

There are also investments in education, which often go unmentioned.

A strong economy depends on having a steady supply of qualified and motivated labour to enter the workforce. We often say, and it has become a cliché, that it is an investment in the future to invest in education and post-secondary education. However, there are difficult demographics that Quebec faces. In Atlantic Canada there is a difficult demographic situation. Right across the country employers have told us that the challenges of the future will be challenges that post-secondary education can partially solve. It is important that this government tell students that it is going to make their lives easier as well, just as we are for parents.

In budget 2016, the government decided to make young Canadians a priority in order to give them a better future. Post-secondary education will be more affordable for students from low-income families, and it will be easier to pay back student debt.

Canadian student grants will be increased, which will help students cover the cost of their studies while limiting their debt ratio. Flat-rate student contributions will make it easier for post-secondary students to work and gain all-important work experience without worrying about a reduction in their financial assistance.

Finally, of course, students will be asked to pay back their student loans only if they are able to and if they are earning $25,000 a year. As everyone knows, summer jobs are very important for training students. That is where students can save money. I am pleased to see that we have doubled our investments in summer jobs. In Gatineau, we went from $229,000 last summer, under the previous government, to $730,000 this summer. I am very proud and very happy to be able to offer attractive job opportunities in Gatineau.

I will close my speech by saying that investing in people, investing in families, and investing in the next generation is an essential part of the budget. The government is looking to the future and decided to campaign on these priorities and table a budget in the House that focuses on these investments.

Gatineau, like many of the communities represented here, is in great need of infrastructure money. Gatineau's infrastructure deficit is $1.3 billion. We are going to continue our efforts to ensure that Gatineau gets its fair share of future-oriented infrastructure investments. Thanks to our human and infrastructure capital, the national capital region and the rest of Canada will be able to face the economic challenges of the future. Canadians will see the wonderful changes that will be brought about by the great long-term plan that begins with budget 2016.

Budget Implementation Act, 2016, No. 1Government Orders

June 10th, 2016 / 10:30 a.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Mr. Speaker, I would like to share the hon. member's tribute to Gordie Howe, who was one of the greatest hockey players of all time.

I am concerned about young people who want to rise up and become the next Gordie Howe. I wonder if the member could comment on why his government eliminated the child health benefit. For a middle-class family trying to get three or four kids into hockey, in some cases, could mean $5,000. Why did the government eliminate that?

Budget Implementation Act, 2016, No. 1Government Orders

10:30 a.m.

Liberal

Steven MacKinnon Liberal Gatineau, QC

Mr. Speaker, we can take programs that are aimed at reasonably small pockets of Canadian society, put them together, add money to them, and say to a single mother, who could not share her income with someone else prior to today, “We can help you with piano lessons, we can help you with hockey skates and all of these things, but the biggest thing we can help you with is making sure that your children are well-nourished and ready to learn, and 300,000 of those children or more will be elevated above the poverty level”. I think that is where a responsible government has to put its priorities.

Budget Implementation Act, 2016, No. 1Government Orders

10:30 a.m.

NDP

Rachel Blaney NDP North Island—Powell River, BC

Mr. Speaker, I appreciated what the member said about supporting families and young people. However, I can say that in the riding I represent, which is very rural, with many remote communities, we have challenges. Seniors are facing particular challenges accessing health care and staying in their homes as long as they possibly can. How can the member justify not following through on his commitment to have home care so that people can stay home longer? Having it mentioned vaguely in a conversation is not having it in the budget. It needs to be a budget line. Why is it not?

Budget Implementation Act, 2016, No. 1Government Orders

10:30 a.m.

Liberal

Steven MacKinnon Liberal Gatineau, QC

Mr. Speaker, on this side of the House, we have complete confidence in our Minister of Health, who is working with the provincial health ministers on a new health accord that will allow us to address the challenge of home care.

I was part of a government in New Brunswick that implemented the first real provincial home care system, the New Brunswick extra-mural program. I am therefore extremely familiar with the issue of home care and the challenge it poses.

I am delighted to know that in 2016, this government also recognizes the need to develop a coordinated home care plan.

Budget Implementation Act, 2016, No. 1Government Orders

10:30 a.m.

Liberal

Wayne Long Liberal Saint John—Rothesay, NB

Mr. Speaker, we have seen what 10 years of trickle-down economics, regressive taxation, and regressive economic policies have gotten our country. We saw that the NDP ran an election campaign basically based on austerity and balanced budgets, which was not realistic.

One thing that was very clear to me going door to door during the campaign with respect to our seniors was that they were forgotten. This is certainly a group that needs support. I would ask my colleague what the Liberal Party will do in this budget for those seniors who need help.

Budget Implementation Act, 2016, No. 1Government Orders

10:30 a.m.

Liberal

Steven MacKinnon Liberal Gatineau, QC

Mr. Speaker, like my colleague from Saint John—Rothesay, I have noticed the number of seniors who are still living in poverty. I know that for all of us on this side of the House, it was with great pride that we saw included in this budget the increase of 10% in the guaranteed income supplement and the age for eligibility for OAS brought back from 67 to 65. The work continues in terms of making sure that the pension system, which Paul Martin saved, which Lester Pearson put in place, and which is the envy of the world, stays in place and reassures Canadians for generations to come.

Budget Implementation Act, 2016, No. 1Government Orders

10:35 a.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Mr. Speaker, before I begin, I just want to thank my hon. Liberal colleague for splitting his time with me, although we will probably take some different approaches on our views on Bill C-15.

Bill C-15, the budget implementation bill, is, as I have heard some Liberal members of Parliament say, where the rubber meets the road for a government's budgetary policy. The NDP has examined some aspects of Bill C-15, and we do agree that there are some positive measures that the NDP has fought for, so we will acknowledge that there are some good things in the bill. However, it is nowhere near what the Liberals promised and it is not what is necessary to strengthen our economy and combat inequality.

For example, one of the major things that I campaigned on and on which I received feedback from my constituents was child care spaces. It is one thing to increase the child benefit, but when families are struggling to even find spaces or they have wait-lists that go on longer than a year, that will not really help two-income families try to find that space so that one parent can have the freedom to find work.

The other major glaring omission is with employment insurance. There was a real opportunity in the bill to make some profound changes to the Employment Insurance Act, to how it operates for Canadians on an equal basis from coast to coast to coast, and that is what was lacking.

In conclusion to my introduction, we will be opposing Bill C-15 because of its content, but also because of the fact that it is an omnibus bill.

The Liberal government has studied a few Conservative tactics from the previous government. The bill has been rushed through. We have had time allocation. The committee meetings that were held were also rushed. We have an act that spans 179 pages. It changes over 30 different statutes that fall under nine different ministries. There are a few things that we argued should have been split off to give proper study, but the committee, when it was studying Bill C-15, had six meetings. Only two had witnesses and the amendments that were proposed by the opposition were all rejected.

The Liberals make a big deal about how they reach across the aisle and they want the opposition to work with them, but when over 35 amendments are proposed by the opposition and all of them are rejected by the Liberals, I do not see that as working together.

It brings to mind the quote from the movie, Jerry Maguire, “Help me help you”. If the Liberals want the opposition to truly work with them, then I think some deference has to be paid to the propositions we are putting forward and not have them rejected out of hand. Those are a few of the reasons.

In terms of the time to adequately review the different components of the legislation, when the Liberals were in opposition and on the campaign trail, I remember they talked about how undemocratic omnibus bills were. They said during the campaign that they would not resort to legislative tricks to avoid the scrutiny of their bills. I think we will see the history of the previous six months shows completely the opposite.

The Liberals promised to change the Standing Orders of the House to bring an end to this undemocratic process of omnibus bills. I just truly feel that if we are to study an omnibus bill that is changing a few different pieces of legislation, it has to be given the proper time and scrutiny. I believe all Canadians and expert witnesses deserve to have their say in things like this.

I will devote a little time to just going over a few of the good things, with the caveat that there will be a few criticisms as well. The NDP proposed in the last Parliament that we would remove taxes on feminine hygiene products because that costs women $36 million a year, so we are happy to see that mentioned in the bill.

We are also happy to see the Liberals recommit to returning the old age security and GIS eligibility back to age 65. I heard my previous Liberal colleague talk about the GIS and what a wonderful thing it was that it would be increased by 10%. Let me provide a bit more of a factual basis to that claim.

The guaranteed income supplement is going to be increased for people in the income range of $4,600 to $8,400. A person with an income of $4,600 per year or less would get an increase of $947 per year, which is less than $100 per month. GIS benefits will be phased out completely at $8,400. Rather than increasing the GIS by 10% across the board for every senior who is eligible for it, the Liberals are targeting a narrow bandwidth. It is important to illustrate that fact because it gets lost in all of the hyperbole about how great the Liberal government is and how it is helping our low-income seniors. We must always read the fine print.

I am also happy to see that the government has committed to enhancing the Canada pension plan. This pension model survived the recession very well. It is a model for the world to see how well managed a pension plan can be. Our interest is in making sure that every worker who pays into the CPP can retire with an adequate income.

One of the biggest broken promises comes with respect to small businesses. Page 10 of the Liberal fiscal plan in the 2015 election specifically mentioned that the Liberals were going to reduce the small business tax rate to 9% from the current 11%. Not going ahead with this reduction is going to cost the small business sector $2.2 billion. It is going to cost $125 million in the next fiscal year, $475 million in the year after that, $770 million by 2019-20, and $825 million by 2021. This is according to both the finance ministry and the parliamentary budget officer.

What am I supposed to tell entrepreneurs in my riding, when I tell them there will be personal income tax cuts that mean income earners in my range will get a reduction but they will not see that? Furthermore, small business owners usually pay themselves a small amount of money to keep their business afloat so they are going to get hit twice. Their business rate is not going to be reduced and their personal income tax rates are not going to be affected. That is a shameful broken promise.

Bill C-15 swallows what was Bill C-12, which dealt with veterans. We were happy to see the changes in Bill C-12 because we agreed with them, but we believe that Bill C-12 should have been made a stand-alone bill so that we could have proposed different changes to make it better. Swallowing Bill C-12 into Bill C-15 creates an omnibus bill and avoids proper scrutiny. The Liberal government's record with veterans right now is absolutely shameful. It has broken a solemn promise that was made during the campaign. The Liberals agreed during the election campaign that the government has a sacred obligation, a social covenant, and now they are taking veterans to court. I would like to see the government take some firm action and stand up for our veterans for once and not use them as campaign props to get votes.

In terms of employment insurance, I suggested to the Minister of Employment that one of the great things the Liberals could do would be to set up the employment insurance fund as a stand-alone fund so that it would be protected from raiding by future governments. Right now, those premiums, which are paid by workers in the event that they might end up unemployed one day, simply get raided as a cash cow. It would set something meaningful up for workers if we put that up as a stand-alone fund. Again the Liberals have taken no significant action on that and we still have an employment insurance system where six out of 10 Canadians will not qualify.

To help my Liberal colleagues understand why we oppose the legislation, it is always helpful to read quotes that Liberals have given in the past. The current Minister of Public Services and Procurement and the member of Parliament for Bonavista—Burin—Trinity said something in 2014 that really sums it up. She said:

...there is so much contained in this omnibus budget bill that it really does not give parliamentarians the opportunity they need to act on behalf of the people they represent. We do not get to scrutinize the legislation.... At the end of the day, we end up voting on a bill that we have had little time to digest.

I could not have said it better myself.

Budget Implementation Act, 2016, No. 1Government Orders

10:45 a.m.

Liberal

Wayne Long Liberal Saint John—Rothesay, NB

Mr. Speaker, I thank my colleague opposite for his impassioned speech about Bill C-15 and our budget.

The party opposite at times confuses me, because what I hear now from the party opposite is that we need to spend more on this and more on that, we did not spend enough on this, and we did not spend enough on that. However, the NDP campaign was run on austerity, budget cutbacks, and budget controls. I certainly saw, going door to door during the election campaign, that voters were absolutely confused as to where NDP members actually stood. Some said they went so far right they were actually left.

I am not sure where they were, but my question to my colleague is this. Could he please explain the $15-a-day day care policy that the party opposite put forth, and how the NDP was actually going to implement that when there were already provinces that said they were not going to agree to it?

Budget Implementation Act, 2016, No. 1Government Orders

10:45 a.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Mr. Speaker, I am very happy to answer that question.

Of course, that was going to be a conversation that we had with the provinces. As to how we would pay for our program, what the member lacks in understanding is that the $15-a-day child care program would allow more parents to enter the workforce, which would broaden the tax base. It is very simple economics.

The other thing is in terms of how we paid for our budget as a whole. The Liberals have refused to touch the corporate tax rate. They have refused to tackle tax loopholes. As a result, we are stuck in this trickle-down economics. There is so much dead money sloshing around in corporate bank accounts, which is something that has been explained by Mark Carney, the former governor of the Bank of Canada. The Liberals did nothing on that.

They are not helping the job creators of Canada, the small businesses, and they are not touching corporate tax rates. As a result, we get a $30-billion deficit, because I do not think the proper areas of fiscal management have been looked at.

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10:45 a.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Mr. Speaker, I would like to thank the hon. member for his speech.

When he was talking about broken promises, I started to reflect on all the broken promises: not holding the deficit to $10 billion, the cost-neutral middle-class income tax, the home delivery.

I wonder if the member could comment on which broken promises he is most disappointed in.

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10:45 a.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Mr. Speaker, I might have to request an additional 10-minute speech to go through that list.

I have always had a very strong connection with the veterans in my riding, and I think that broken promise in the court system was a big one.

In terms of the real reforms on employment insurance, I think this budget was a very real opportunity to get something meaningful done by making sure that there was a common threshold, no matter what part of Canada a person lived in, and also that we had a fund that was protected very much in the way that the Canada pension plan is. This would have ensured governments against future unemployment shocks, and it would have given all workers peace of mind, knowing that there is a dedicated fund that would always be there for them and which would not disappear into the consolidated revenue fund.

Budget Implementation Act, 2016, No. 1Government Orders

10:45 a.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, when we ask ourselves who serves our country, there are people from my region, blue-collar people, who went to Afghanistan and who served in Croatia and Bosnia. They came back, and there was a trust that they would be treated with respect.

When I see how the Prime Minister used the veterans as props, and made all manner of promises on their pensions, but then turned his back on them and is fighting them in court, I find it unconscionable. For the families that I represent who are being denied their basic pensions and the services that they are entitled to, because they were used as an election prop, I find that simply unconscionable.

I would like to ask my hon. colleague what he thinks about the breach of faith with the veterans in our country.