Mr. Speaker, I am pleased to share my time with the member for Calgary Shepard. I look forward to his remarks and hope that we have time for most of his speech.
Canada was built on trade. From the earliest European settlers trading with indigenous peoples and fur traders following rivers and exploring the land, to present-day Canadians for whom one in five jobs depends directly on exports. Extraction and exchange are in Canada's bones.
As well as creating a single unified country for mutual defence, the Fathers of Confederation sought to bind the provinces of Canada, New Brunswick, and Nova Scotia together through unrestricted internal trade. Indeed, the debates around Confederation tell us that trade was a top priority. In fact, if one consults the debates on the subject of the confederation of the British North American colonies, 3rd session, 8th Provincial Parliament of Canada, one sees in the pages of debate that the colonies eagerly desired full access to each other's markets.
I find it fitting that a railway to British Columbia would later unite Canada's centre to the west, while demand for one between Halifax and Quebec City drove the formation of the Dominion to unite the centre with the east.
In a time when governments relied heavily on tariffs for revenue, the founders clearly stated in section 121 of the British North America Act of 1867 that, “All Articles of the Growth, Produce, or Manufacture of any one of the Provinces shall, from and after the Union, be admitted free into each of the other Provinces.” The founders did not foresee the rise of the regulatory state and all of the non-tariff barriers that an ever-growing bureaucracy would erect.
Canadian parliamentarians must ensure that the spirit, as well as the letter, of section 121 of the Constitution create a country with unrestricted labour and goods. Therefore, I urge my colleagues of all parties to vote in favour of the motion to seek clarity from the Supreme Court on the interaction of constitutional provisions on jurisdiction and free trade.
Canada has a strong domestic economy and admirable labour mobility. However, many non-tariff barriers continue to impede the flow of goods and workers across provincial borders. For example, many licensed professionals and tradespeople still have to qualify for different regulatory regimes in different provinces. Should standards differ for dentists and accountants? Are teeth so different on one side of the continent than they are on the other? Are debits and credits wildly different from the east side of Lloydminster, Saskatchewan, compared with the west side in Alberta?
Canada devotes resources to foreign credential recognition and requalification for foreign-trained professionals, yet neglects to harmonize some of our own internal standards.
Red tape and redundancy do not stop with so-called white collar work. Many tradesmen and tradeswomen are similarly stymied from working across provincial lines. Many might find it frustrating that a road crew from Gatineau can cross the river to work in Ottawa, but one from Ottawa cannot go and work in Hull since provincial labour rules keep Ontarian labour out of Quebec.
In contrast, there are many encouraging examples of labour mobility that benefits Canadians. Many Maritimers and Newfoundlanders have come to Alberta to work in the oil sands. This mass migration sent money back east to the workers' families, addressed a labour shortage in Alberta, and generated taxes and royalties that funded public services.
Speaking of public services, preferential sourcing for government procurement costs Canadians in extra spending and foregone savings. I understand that provincial governments would want to hire or buy from firms in their own province. However, this does a disservice to the rest of their taxpayers. Speaking as an Albertan taxpayer, if the government in Edmonton needs a service that a Saskatchewan company can provide at a lower price than an Albertan one, it makes sense to spread the benefit of a good deal to all Albertans by choosing the best bid instead of paying extra to an uncompetitive firm.
Shrewd sourcing is even more important given that free trade agreements open foreign government procurement to Canadian goods and services, granted that we let their firms compete here in return. Why should a domestic company from another province suffer any restriction in competing for contracts in Canada when foreign firms can enter the bidding?
Moving from talk of services to goods, many Canadian staples are slowed or stopped in their travels by unnecessary regulatory variations. Starting with the example on which today's motion is based, what logical reason is there to keep vacationers to Niagara or the Okanagan from stocking up on the fantastic local wines that they sample before heading home?
Why should a New Brunswicker be unable to buy a few cases of beer in Quebec? Mr. Comeau could be congratulated for his service to Canada by doing such a Canadian activity as shopping for the best deal on beer. Provincial liquor monopolies, which restrict supply to raise revenue through high markups, are just tariffs by another name.
One could argue that Canadian beer, wine, and whisky are not truly essential to life in Canada. I might not make that argument, but one could.
However, gasoline certainly is a necessary part of our economy. The same cars, trucks, and lawnmowers that are sold throughout Canada have different sets of requirements by provincial governments for the fuel. This means that refineries that supply our gasoline cannot make one large batch and deliver it wherever needed. They must prepare different batches for each different mix requirement and transport them into each jurisdiction despite the inconvenience and extra costs that this adds. This inefficiency costs us all at the pump and is less than ideal for the environment.
It is challenging enough that Canada is a continent-wide country with a thinly spread population and a high demand for transportation, but geography, monopolies, and regional sale restrictions are not the only impediments to internal trade in goods.
Transportation itself is subject to bizarre regulatory discrepancies such as different allowable weights, dimensions, and tire sizes for trucks. One can imagine the nuisance this causes for a company trying to send cargo across several jurisdictions.
This red tape coiled around Canadian companies costs Canadian consumers. The Canadian Federation of Independent Business and other organizations estimate that internal barriers cost the economy nearly $15 billion per year in inefficiency. Similarly, the Conference Board of Canada estimates that eliminating internal barriers would add $4.8 billion to real GDP and create 78,000 jobs in Alberta and British Columbia alone. Although that figure is just for our two westernmost provinces, I am sure that similar employment gains would accrue to other provinces were the barriers to be abolished.
Non-tariff barriers slow the economy down unnecessarily. However, these barriers fall under provincial jurisdiction. How can we in Parliament help without overstepping our constitutional bounds? We can vote for the motion today, and seek clarity from the Supreme Court of Canada on where exactly the lines are between jurisdictional differences on one hand and internal free trade on the other.
I mentioned earlier that Canada was founded as an internal free trade zone. The Fathers of Confederation knew that trade enriches both parties, overcomes linguistic divides, and builds trust and respect between different groups. The wording of section 121 of the Constitution clearly expresses their intent for a Dominion free of the division and distrust brought about by discriminatory trade rules in favour of one of prosperity and co-operation brought about by free trade and mobility.
Establishing true free trade in Canada should not be a partisan issue. Canadians of all parties and political persuasions benefit from labour mobility, more jobs, and more affordable goods and services.
The current government may be commended for its oft-stated commitment to work with the provinces and all Canadians toward good policy, but I encourage it to act on that goal by negotiating a new agreement on interprovincial trade.
In the meantime, the government can take a serious step toward resolving the issue of non-tariff barriers by referring the New Brunswick case of the Queen v. Comeau and its evidence to the Supreme Court of Canada to seek clarity on the constitutional limits on such impediments. It can also intervene on the side of free trade as New Brunswick appeals the Comeau decision.
Today's motion does not intrude on the lawful jurisdiction of the provinces. It seeks clarity from the Supreme Court on how they can co-operate with us and each other for the benefit of all Canadians.
Canada's founders desired the Dominion to be free of internal tariffs. I am sure that they would have wanted Canada to be free of non-tariff barriers as well. Our founders knew that cultural, geographic, and language differences would require a federal system with provinces with real power, bound together by mutual defence and free trade, but I do not believe they wanted that provincial power to be used to stifle the very trade and mobility that united the colonies.
As Canada's 150th anniversary approaches, I urge all of my parliamentary colleagues to take this small but significant step toward upholding our founding purpose and vote in favour of the motion.