House of Commons Hansard #228 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was finance.

Topics

TaxationOral Questions

3:05 p.m.

Scarborough Southwest Ontario

Liberal

Bill Blair LiberalParliamentary Secretary to the Minister of Justice and Attorney General of Canada and to the Minister of Health

Mr. Speaker, our government has been working very closely with our provincial and territorial partners. There have been ongoing discussions with the provinces and territories about the appropriate taxation and price regimens to be put in place. That is part of an ongoing and important discussion. That discussion has been characterized by close co-operation and collaboration between all parties.

Intergovernmental RelationsOral Questions

3:05 p.m.

Bloc

Gabriel Ste-Marie Bloc Joliette, QC

Mr. Speaker, to call that answer vague would be an understatement, and I am nowhere near convinced. If the government does not provide health and security services to the people, it should hand that tax revenue over to the provinces, which do.

On another matter, today the media reported that Quebec's religious neutrality law could be challenged as early as tomorrow. Quebec has the right to make its own decisions about rules governing the relationship between the state and its people. That is a fundamental right.

Will the government respect Quebec's jurisdiction, as stated in the motion we adopted, and will it promise not to pay for any legal challenge to Quebec's religious neutrality law?

Intergovernmental RelationsOral Questions

3:05 p.m.

Ahuntsic-Cartierville Québec

Liberal

Mélanie Joly LiberalMinister of Canadian Heritage

Mr. Speaker, our position on the issue has always been clear. We will always promote and protect rights and freedoms because we believe in the importance of the Canadian Charter of Rights and Freedoms. It is not for the state to say what a person can or cannot wear.

We are currently examining the application of the law. I thank my colleagues for their support on this issue.

Presence in GalleryOral Questions

3:05 p.m.

Liberal

The Speaker Liberal Geoff Regan

I draw the attention of hon. members to the presence in the gallery of Ms. Christine Muttonen, President of the Organization for Security and Co-operation in Europe Parliamentary Assembly.

Presence in GalleryOral Questions

3:05 p.m.

Some hon. members

Hear, hear!

Presence in GalleryOral Questions

3:05 p.m.

Liberal

The Speaker Liberal Geoff Regan

The House Leader of the Official Opposition has the usual Thursday question, following which we have a question of privilege to be raised and then two points of order, including one from her.

Presence in GalleryOral Questions

3:05 p.m.

Conservative

Candice Bergen Conservative Portage—Lisgar, MB

Mr. Speaker, I would like to raise my point of order at this point, before I go on with the Thursday question.

I rise on a point of order regarding comments just made during question period. The Minister of Finance said directly that our deputy leader did not know how to count. Our deputy leader has been a member of Parliament here for nine years. She has a law degree from Osgoode Hall Law School. She has been a CEO. She clearly knows how to count, and so much more.

These are some of the reasons, many times, women do not want to get involved in the political process. When maybe things are tough, insults like that—“Bimbo”, “You don't know how to count”, “You're not smart”, “You're a puppet”—are hurled at women politicians and at women in general.

I hope that is not what the Minister of Finance was trying to do, but I would like to give him the opportunity to apologize to our very qualified, very smart, and very capable deputy House leader.

Presence in GalleryOral Questions

3:05 p.m.

Liberal

The Speaker Liberal Geoff Regan

The hon. House Leader of the Official Opposition will know that I did address this point at the time. I certainly do encourage members to be judicious in their comments at all times in the House. I thank the hon. opposition House leader.

I think now she has the usual Thursday question.

Business of the HouseOral Questions

3:05 p.m.

Conservative

Candice Bergen Conservative Portage—Lisgar, MB

Mr. Speaker, I would like to ask the Government House Leader if she could please tell us what business is happening for the rest of this week and next week before we go back for our Remembrance Day ceremonies.

Business of the HouseOral Questions

3:05 p.m.

Waterloo Ontario

Liberal

Bardish Chagger LiberalLeader of the Government in the House of Commons and Minister of Small Business and Tourism

Mr. Speaker, this morning we started second reading debate on Bill C-63, the budget implementation act. We will continue debate on this legislation this afternoon.

Tomorrow we will commence second reading debate of Bill S-5, concerning amendments to the Tobacco Act.

On Monday, Tuesday, and Wednesday of next week, we shall continue with debate on the budget bill. Last Thursday I indicated to the House that we would allot four days of debate at second reading, which means we would expect the vote to send the bill to committee to take place on Wednesday evening. I would like to thank opposition House leaders for their co-operation in finding agreement on this timeline.

On Thursday, we will resume debate on Bill C-45 on cannabis, and hope to conclude the debate at report stage. We will also be working to pass Bill C-17 on the Yukon before the next constituency week.

Information Provided to the HousePrivilegeOral Questions

3:10 p.m.

Conservative

Peter Kent Conservative Thornhill, ON

Mr. Speaker, I rise on a question of privilege concerning the issue of contradictory information given to members regarding the number of cabinet ministers who are currently using a conflict of interest loophole to avoid divesting personal investments or putting them in a blind trust. This contradictory information has been provided by an officer of Parliament, the Ethics Commissioner, and by the Prime Minister.

The Ethics Commissioner has said that a number of Liberal cabinet ministers hold controlled assets indirectly, but the Prime Minister contends that only the finance minister does and that he is now in the process of selling shares in Morneau Shepell and setting up a blind trust in the meantime. When pressed to clarify if the Prime Minister was correct in his assertion that the Minister of Finance is the lone minister exploiting a loophole, Ms. Dawson's office confirmed via an email from her spokesperson, Jocelyne Brisebois, which states:

The Office still maintains that there are fewer than five ministers who have controlled assets and no we were not wrong about the information provided in our statement to you. We can say fewer than five ministers, including [the finance minister].

That is, she says the commissioner's office was not wrong.

However, on Tuesday, the Prime Minister insisted in the Commons that the finance minister is the only one of his 30 ministers who is currently exploiting this loophole.

On page 111 of the 22nd edition of Erskine May, it states that, “The Commons may treat the making of a deliberately misleading statement as a contempt.”

On February 1, 2002, the Speaker then ruled on a matter in regard to the former minister of national defence:

The hon. member for Portage—Lisgar alleged that the Minister of National Defence deliberately misled the House as to when he knew that prisoners taken by Canadian JTF2 troops in Afghanistan had been handed over to the Americans. In support of that allegation, he cited the minister's responses in question period on two successive days...

The Speaker considered the matter and found there was a prima facie question of privilege. He said:

The authorities are consistent about the need for clarity in our proceedings and about the need to ensure the integrity of the information provided by the government to the House.

The authorities to which Speaker Milliken was referring include but are not limited to the following. House of Commons Procedure and Practice, second edition, states on page 115, “Misleading a Minister or a Member has also been considered a form of obstruction and thus a prima facie breach of privilege.”

When the Speaker, in 2002, accepted the minister's assertion that he had no intention to mislead the House, he stated that “Nevertheless this remains a very difficult situation.” The Speaker then referred to the first edition of House of Commons Procedure and Practice, page 67:

There are...affronts against the dignity and authority of Parliament which may not fall within one of the specifically defined privileges...the House also claims the right to punish, as a contempt, any action which, though not a breach of a specific privilege, tends to obstruct or impede the House in the performance of its functions; [or that] obstructs or impedes any Member or Officer of the House in the discharge of their duties...

The Speaker went on to say:

On the basis of the arguments presented by hon. members and in view of the gravity of the matter, I have concluded that the situation before us where the House is left with two versions of events is one that merits further consideration by an appropriate committee, if only to clear the air. I therefore invite the hon. member for Portage—Lisgar to move his motion.

On February 17, 2011, the member for Scarborough—Guildwood and other members argued that a minister had made statements in committee that were different from those made in the House or provided to the House in written form. These members argued that the material available showed that contradictory information had been provided. As a result, they argued that this demonstrated that the minister deliberately misled the House and that as such a prima facie case of privilege existed.

In a ruling of March 9, 2011, the Speaker then pointed out:

...when asked who inserted the word “not” in the assessment of the KAIROS funding application, in testimony [before the committee] the minister twice replied that she did not know. In a February 14 statement to the House, while she did not indicate that she knew who inserted the word “not”, the minister addressed this matter by stating that the “not” was inserted at her direction. At the very least, it can be said that this has caused confusion. The minister has acknowledged this, and has characterized her own handling of the matter as “unfortunate”. Yet as is evident from hearing the various interventions that have been made since then, the confusion persists. As the member for Scarborough—Rouge River told the House, this “has confused me. It has confused Parliament. It has confused us in our exercise of holding the government to account, whether it is the Privy Council, whether it is the minister, whether it is public officials; we cannot do our job when there is that type of confusion”.

In the case raised on February 17, 2011, the contradictory information involved information provided to a committee and information provided to the House. In this case, we have information provided to the House that is contradictory to information provided by an officer of Parliament.

On page 222 of Beauchesne's Parliamentary Rules & Forms, sixth edition, it states that “Committees are regarded as creatures of the House.”

The House of Commons publication Committees Practical Guide states that committees are central to the operations of the House of Commons and allow for detailed examination of complex matters, which offers an opportunity for members to hear from Canadians and experts on topics of national concern and to have these representations placed on the public record. They provide a means for members to probe into the details of policies and programs, thereby further developing an expertise in certain areas.

The Privy Council Office, and some governmental documents, refers to the officers of Parliament as “Agents of Parliament,” thereby emphasizing that they carry out work for Parliament and are responsible to Parliament, and as a means of distinguishing them from other officers and officials of Parliament. It also emphasizes their independence from the government of the day. These officers of Parliament carry out duties assigned by statute, and report to one or both of the Senate and House of Commons. The individuals appointed to these offices perform work on behalf of Parliament, and report to the chambers, usually through the Speakers.

I argue that information flowing from an officer of Parliament holds as much weight as information flowing from a standing committee, and when this information is contradictory and confuses Parliament, as it has, there is a need to direct the Standing Committee on Procedure and House Affairs to look at this in the guise of a breach of privilege.

The Conflict of Interest and Ethics Commissioner issued a statement today that said:

The Globe and Mail reported this morning that the Office of the Conflict of Interest and Ethics Commissioner is at odds with the Prime Minister over how many cabinet ministers currently hold controlled assets indirectly. This is, in fact, not the case.

The Office did not wish to give an exact number when asked how many cabinet ministers indirectly hold controlled assets. The Office indicated fewer than five, giving a general sense of an upper limit to the number, meaning it could be one, two, three or four.

This does not clarify anything, and it certainly confuses the issues further. I ask that you find a prima facie question of privilege here. I am prepared to move the proper motion to allow the Standing Committee on Procedure and House Affairs to get to the bottom of this matter.

If you have any doubts, Mr. Speaker, I refer you to a ruling given on March 21, 1978, at page 3,975 of Debates, which is also referred to in Maingot's Parliamentary Privilege in Canada, second edition, at page 227, where Speaker Jerome quoted a British procedure committee report of 1967, which states in part:

...the Speaker should ask himself [I am sure he meant to say himself or herself], when he has to decide whether to grant precedence over other public business to a motion which a Member who has complained of some act or conduct as constituting a breach of privilege desires to move, should be not—do I consider that, assuming that the facts are as stated, the act or conduct constitutes a breach of privilege, but could it reasonably be held to be a breach of privilege, or to put it shortly, has the Member an arguable point? If the Speaker feels any doubt on the question, he should, in my view, leave it to the House.

Mr. Speaker, I submit this matter to your wise judgment.

Information Provided to the HousePrivilegeOral Questions

3:20 p.m.

Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

I believe the parliamentary secretary to the government House leader has a point to make on this.

Information Provided to the HousePrivilegeOral Questions

3:20 p.m.

Winnipeg North Manitoba

Liberal

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

Mr. Speaker, we have full confidence in the Ethics Commissioner. We will review what the member has brought forward to the House and report back in due course.

Information Provided to the HousePrivilegeOral Questions

3:20 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, thank you for the indulgence. I only offer a small commentary, in addition to what we have heard.

My friend has pointed out that the Prime Minister made a statement in the House that there was only one of his ministers, the Minister of Finance who was using this ethical loophole, this numbered company. We have to take members at their word that, when they speak in the House, that word is speaking the truth.

We then had the unfortunate situation in which the Ethics Commissioner, when contacted by the media to clarify if the Prime Minister was in fact correct that there was only one of his ministers who had broken his own promise that things would be divulged, had to then essentially correct the Prime Minister saying that her earlier statement was still true.

Now the reasons she has as Ethics Commissioner to keep the number somewhat vague, as less than five but more than one, is something that is at her discretion. That is not for us to judge.

The concern we have not only is the potential case in which the Prime Minister may have misled the House of Commons on an important issue facing Canadians, but it is also that—after so many weeks upon weeks of Liberal ministers, including the Prime Minister and the finance minister, saying how much faith they had in the Ethics Commissioner—in effect they are using Parliament and parliamentary privilege to undermine the Ethics Commissioner's own statements to the Canadian public.

Canadians are wondering what is going on within the Liberal cabinet. This is important in terms of our being able to do our jobs as opposition members on behalf of Canadians. Our job, primarily, is to hold the government to account, to find out what the government is and is not doing, and to find out whether it is keeping good faith with Canadians.

I will remind the Speaker and all members that, in both their mandate letters and in the declaration from the Prime Minister, the instruction was crystal clear: they were not to simply follow the letter of the law, of the Conflict of Interest Act, but also the spirit of the law, and second, they were to make available all of their personal assets and holdings to the fullest public scrutiny.

That is what the Prime Minister of this country promised us. That is what the Prime Minister later went on to contradict, both in word and deed.

I look forward to your ruling on this, Mr. Speaker. I look forward to finally settling this matter, which can only be done, by the way, by the Prime Minister, his finance minister, and the other ministers in his cabinet who have been holding secret accounts in numbered companies, withholding that information from Canadians, which has put them in an obvious case of conflict of interest, from my perspective and that of others.

Information Provided to the HousePrivilegeOral Questions

3:20 p.m.

Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

We will take this under advisement and return to the House in due course and good time.

Alleged Actions of Member for Spadina—Fort YorkPoints of OrderOral Questions

3:20 p.m.

Conservative

Alice Wong Conservative Richmond Centre, BC

…Mr. Speaker, I rise on a point of order to bring to your attention a grave and disturbing matter that occurred yesterday while riding the House of Commons bus.

I stand with a very heavy heart for this point of order because it was exactly for that reason I went into politics, to be a voice for the most vulnerable and fight for the rights of women, especially immigrant women, and bring their voice to Ottawa to fight against racism, agism, and sexism.

Now I will state the facts.

I was sitting on an outside seat when the member for Spadina—Fort York entered the bus. The member stopped and hovered over me. He began to wave his hand in my face, chastised and intimidated me for something I said in the House earlier in the day.

Yesterday, during question period, the Prime Minister was giving one of his non-answers to a question about the government transferring up to half a billion dollars into the Asian Infrastructure Investment Bank, while at the same time the PBO reported the government was behind on infrastructure spending within Canada. With great emotion and pride, I said “Canada is our home”. For some reason, the member took issue with my statement and began to intimidate me for raising it, making suggestions to alternative statements I could have made.

I did not have time to give you the proper notice of a question of privilege, Mr. Speaker, but I reserve the right to do so. I do so for the following reasons.

Responding to threats was among the first matters of parliamentary privilege dealt with in Canada. Page 198 of the second edition of Joseph Maginot's Parliamentary Privilege in Canada tells us of an incident in 1758 where the Nova Scotia House of Assembly proceeded against someone who made threats against a member.

In a ruling on September 19, 1973, Mr. Speaker Lamoureux, at page 6709 of the Debates, stated that he had:

no hesitation in reaffirming the principle that parliamentary privilege includes the right of a member to discharge his responsibilities as a member of the House free from threats and attempts at intimidation.

Mr. Speaker Bosley, on May 16, 1986, at page 13362 of Debates, ruled that the threat or attempt to intimidate could not be hypothetical, but that it must be real or have occurred. I have a whole bus of passengers who witnessed this whole incident.

On March 24, 1994, at page 2705 of Debates, Mr. Speaker Parent said:

Threats of blackmail or intimidation of a member of Parliament should never be taken lightly. When such occurs, the very essence of free speech is undermined. Without the guarantee of freedom of speech, no member of Parliament can do his duty as expected.

This attempt to intimidate me was directly linked to what I said in the House earlier in the day, and that, Mr. Speaker, should be grounds enough to warrant a favourable ruling for a question of privilege.

Hiding behind a prime minister who claims to be a feminist does not give the member the right to intimidate another member of the same House of another party. Female members of all three parties were on the bus. They witnessed everything he did and how he intimidated me. Therefore, I reserve the right for a question of privilege with proper notice.

Alleged Actions of Member for Spadina—Fort YorkPoints of OrderOral Questions

3:25 p.m.

Liberal

The Assistant Deputy Speaker Liberal Anthony Rota

I want to thank the hon. member for her intervention. We will look into it, dig a little deeper, and get back to the House if we deem it necessary.

The House resumed consideration of the motion that Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures, be read the second time and referred to a committee.

Budget Implementation Act, 2017, No. 2Government Orders

3:25 p.m.

Liberal

Gary Anandasangaree Liberal Scarborough—Rouge Park, ON

Mr. Speaker, as the member of Parliament for Scarborough—Rouge Park, I once again rise to continue the discussion on Bill C-63, a second act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures.

I was talking about the economy, and I highlighted some of the work of our government had done with respect to tax fairness.

I now want to touch on something that is very close to my heart and certainly something that affects each and every member, which is the Canada child benefit.

In July of this year, according to statistics that were recently provided to me, 9,170 payments, benefiting 16,160 children, were made through the Canada child benefit in Scarborough—Rouge Park. An average payment in Scarborough—Rouge Park is $630 per month, or $5.754 million just for this year. If we look at it over four years, it works out to a significant amount of money. I am quite proud to say that this has had a game-changing effect in my community and I am sure in other communities across the country.

Many people in my community are unable to afford to send their children to extracurricular activities. There are housing issues in Toronto. In the eastern part of Toronto, especially, housing is quite expensive, with a high cost for basic services such as the Internet and telephone. The Canada child benefit will assist many families to support their children better than they were able to before.

This is a very important aspect of our platform. Enhancements to this were proposed recently in the fall economic statement by the Minister of Finance, such as the acceleration of indexing of the Canada child benefit to inflation in two years, starting in July of 2018, with an additional $5.6 billion in support of Canadian families over 2017-19. For a single parent, with two children, making $35,000 a year, this will mean an additional $560 more next year.

In addition to the Canada child benefit, there are also enhancements to the working income tax benefit. It is a refundable tax credit that cuts tax for eligible people in the workforce and encourages others to get a job. It will be an additional $500 million per year, starting in 2019.

I want to dive into the substantive parts of the legislation and talk about several aspects of it.

First are the amendments to the Canadian Labour Code to improve the rights of workers. We have introduced these measures to ensure people can have flexible work arrangements. All employees working for more than six months have the right to ask for changes to the number of hours they work, the location, and schedule, among other things if they work in a sector that is regulated by the federal government.

Employers must respond to requests within 30 days and employers are prevented from disciplining employees. If the employer does not accept their request, it is required to give a written rational for its decision and refute the request on legislated grounds.

We have expanded family leave to three days to aid family members suffering from health issues, or for educational purposes, as well as leave for victims of family violence who can receive 10 days of leave to seek medical or psychological help, family services, relocation services, and to seek law enforcement assistance.

Also important is the introduction of five days leave to engage in traditional indigenous practices. I sit on the indigenous affairs committee. It has been a great opportunity to learn important aspects of indigenous culture. Over the last two years, it has been clear to me that the current workplace environment and systems in Canada do not reflect, respect, nor give space for the traditional practices of our indigenous brothers and sisters. It is important to ensure those in the workforce are able to take time off to engage in traditional indigenous practices.

These are very important measures.

To quickly summarize, this is a very important aspect of our platform. It is the second phase implementing the budget introduced by our finance minister, which has been great for the economy, as it has allowed for a more equal playing field and reduced the gap between the poor and other Canadians. It is aimed at enabling Canadians to live in harmony without having the large income disparities that we see in other countries, which often trigger social unrest.

Budget Implementation Act, 2017, No. 2Government Orders

3:35 p.m.

NDP

Sheri Benson NDP Saskatoon West, SK

Mr. Speaker, I want to call to the hon. member's attention a big concern of mine about unpaid domestic leave.

I want to hear the member's response to the fact there will be a barrier to people actually accessing unpaid domestic leave. Nine percent of women in a domestic violence situation are controlled by their partner economically. The member can imagine the impact of someone coming home with less pay than their a partner who is abusing them. Although I understand the intention, I am concerned that in reality it will not be accessible to the people it is intended to help.

Budget Implementation Act, 2017, No. 2Government Orders

3:35 p.m.

Liberal

Gary Anandasangaree Liberal Scarborough—Rouge Park, ON

Mr. Speaker, I completely agree with the brilliant point by my friend from Saskatoon West.

However, this is an amendment to the Labour Code and not necessarily to the EI system or to the other social security measures that we have. It is an important first step. For example, in my riding of Scarborough—Rouge Park, our constituency office often deals with situations of domestic violence, and one of the difficulties we face is that once someone needs to move or take time off to address the domestic violence situation, they are sometimes threatened with losing their job.

In my opinion, this is a very important first step in addressing that, as my hon. friend can concede. It is the direction we need to go in to ensure that working people have time to be able to take care of themselves. In the meantime, I believe the Canada child benefit will be of assistance and will certainly assist those single parents who may need that help in situations like these where they are in transition.

Budget Implementation Act, 2017, No. 2Government Orders

3:35 p.m.

Winnipeg North Manitoba

Liberal

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

Mr. Speaker, my colleague has done a fantastic job advocating for his constituents on important policy matters.

One of the things I believe the government has been so successful at doing is focusing its attention on Canada's middle class and those aspiring to be a part of it. We have realized some of the benefits of doing that, for example, the 400,000-plus jobs that have been created and the resulting increased disposable income and, as my colleague just made reference to, the Canada child benefit. All of that extra money is put into the pockets of individuals who really need it, causing them to spend more in the community and strengthening our economy.

What are my colleague's thoughts on the government's focus on Canada's middle class and the benefits resulting from doing that?

Budget Implementation Act, 2017, No. 2Government Orders

3:40 p.m.

Liberal

Gary Anandasangaree Liberal Scarborough—Rouge Park, ON

Mr. Speaker, it is very clear that the Canada child benefit, for example, has had a very important effect on the economy. In fact, it has helped ignite it. We have the lowest unemployment rate in 10 years, we have created 450,000 jobs in the last two years alone and, as I said in my speech, the unemployment rate remains quite low and the growth rate quite high. It is a very important observation.

However, in the past during times of great economic growth, income disparity widened. The people making good amounts of money were making even more money, and the people on the margins were making less. Income disparity widened in what were probably some of the best times in history, and one thing that our government aims to do is to narrow that gap and ensure that the disparity between the rich and the poor does not increase. We aim to create an equal playing field so that children, regardless of the circumstances they are born into, have the same rights and opportunities in life and will not be limited in what they can and cannot do because of the financial circumstances of their families.

Budget Implementation Act, 2017, No. 2Government Orders

3:40 p.m.

Conservative

Kelly McCauley Conservative Edmonton West, AB

Mr. Speaker, I will be sharing my time today with my colleague, the member for Peace River—Westlock.

I am pleased to rise today to speak to round two of the 2017 budget implementation bill, also known as The Wizard of Oz act, as the government yells, “Pay no attention to that man behind the curtain”, in an effort to distract Canadians from the ethical meltdown the finance minister has been having with his conflict of interest scandals. Unfortunately, for the man behind the curtain, the finance minister, Canadians are paying attention to his actions and the fact he was just fined by the Ethics Commissioner for not bothering to follow our conflict of interest laws.

I cannot help but think of what other Wizard of Oz characters we might be reminded of by the government: someone like the “Tin Man” without a heart, who is raising taxes on Canadians with diabetes and those suffering from mental illnesses; perhaps a “Dorothy” looking for a home, just not in southern France; and, of course, there is the “Scarecrow” who desires nothing else but a brain. This could apply to any number of cabinet ministers, whether it is someone using government resources to help a family member in a municipal election in Calgary or mistakenly claiming the military glory of soldiers, or perhaps starting Phoenix when we all knew it was just not ready, but I digress.

Much like the tornado that swept through Kansas, the ethical storm encompassing the finance minister has cast the Liberals into disarray. After spending the summer attacking small businesses and entrepreneurs, including mom and pop shops, farmers, and doctors, and declaring them to be tax cheats who need to pay more, the Liberals are pouring money out the door, trying to get Canadians to forget.

The Liberals have suddenly reinstated the previous Conservative government's small business tax cut. They make bigger, more grandiose promises, accumulating even more debt on the backs of our children and grandchildren. They are spending like mad and claiming their plan is working. They beg us, “Please, do not look at the man behind the curtain. Everything is fine. I know you want to talk about the ethics issues, but maybe you would like some money instead,” they cry.

The minister has the audacity to argue that massive spending increases were part of the plan all along, that the wizard knows best, but Canadians are not buying this. They know that the Liberals are broke and that the tax hikes just fuel their relentless spending and nothing else.

Here we are, after last week's fall economic update and the Liberals' re-profiling of another $2 billion in infrastructure spending to next year, and their banking of billions in a one-time accounting adjustment, with their finding themselves with a few extra billion to spend this year. That is how they spin the story anyways.

The Liberals forget it is not really extra money, but rather that the deficit that will come in $8 billion above their campaign promise, instead of the $12 billion they originally thought. It is like someone taking $20 from the right pocket, putting it in the left pocket, and then trying to convince themselves they are now $20 richer.

The Liberals say it is okay, because we have record growth, hundreds of thousands of jobs, with the majority of them in the private sector. Unfortunately, the parliamentary budget officer's report crushes this Liberal spin like a house dropping on the wicked witch of the east.

First, there is the claim that the majority of jobs are in the private sector. According to the PBO report that just came out following the fall economic update, just 4% of job growth was in what the PBO classifies as the private sector; 47% was in the public sector; and 49% was in self-employment.

It is ironic that the Liberals spent months attacking self-employed entrepreneurs, trying to hike their taxes, calling them tax dodgers and accusing them of exploiting loopholes to avoid paying their fair share of taxes, and now they are claiming responsibility for creating these wonderful new jobs.

Note as well that the other half of the job gains is due to public sector hiring. That is not to say that public service work is not valued. Even MPs contribute once in a while, but it is ridiculous to assume that economic growth can be sustained through public sector growth.

As for the drop in the unemployment rate, well, the PBO notes that 0.6 points or 7.5% of it was due to people simply leaving the workforce, having given up on trying to find a job. We know that the employment numbers are not great and are mostly independent of what the Liberals have done.

Maybe economic growth is the high point. Let us look at economic growth.

The growth so far this year was driven by record levels of household debt spending and a rebound in the energy sector from the lows of last year. Canada's real GDP growth is projected to slow to just 1.6% in two years. That is hardly the state of economic nirvana the Prime Minister promised when he took the country's finances deep into the red.

What about that pesky deficit? The Liberals pegged it at $18 billion this year, while the PBO says it is more likely going to be $20 billion. Who is right? I tend to believe the PBO's crystal ball above the Liberal's spin.

The PBO further projects that there is only a 10% chance that the budget will be balanced in 2019. If we remember, that is when the Liberals said they would balance the budget by. Put another way, there is only a 10% chance the Liberals will keep a key campaign promise from the 2015 election. Imagine if Canadians had known the odds of the Liberals keeping their other election promises. They would have known there was a 0% chance the Liberals would keep their promise on electoral reform, a 0% chance the Liberals would keep their promise to reform access to information, a 0% chance the Liberals would keep their promise to act ethically and responsibly with respect to Canadians and our democratic institutions, but a 100% chance the Liberals would break their promise to keep the deficit to just $10 billion a year.

Besides misleading Canadians by making promises they had no intention of keeping, the Liberals are asking us to blindly follow them further down the red-ink brick road. With 1.6% real GDP growth, and deficits ballooning up to $20 billion, it means that in the event of a fiscal shock, such as the Americans pulling out of NAFTA or a housing market meltdown, the Liberals have left no room to manoeuvre.

If only Canada had a previous government on which to draw parallels. If only we could determine what happens if the government spends recklessly, borrows indiscriminately, and casts aside any respect for fiscal responsibility. Right, we do have that. Trudeau senior spent like a drunken sailor, with apologies to drunken sailors for the comparison. The words “fiscal responsibility” at that time apparently did not translate into both official languages. Subsequent governments needed to cut programs mercilessly for health care transfers and other services to make up for the sins of the father. It seems the Prime Minister has not learned, and Canadians are now doomed to pay the price.

What might we get instead from this trip down the red-ink brick road? Let us look at the numbers from the PBO. By 2021, public debt charges will cost about 11% of total federal expenditures, or roughly $37 billion a year in interest payments, which is $13 billion above what it is now.

There is a saying that for every Liberal policy, there is a victim. Let us see what this money spent on interest could have been spent on instead.

Remember when the Liberals promised, and then reneged, on their $3 billion for palliative care? They could have kept that promise 12 times over every year.

They could finally go ahead and purchase the politically motivated sole-sourced Super Hornets and still have money to buy dozens and dozens of F-35s every single year.

According to the numbers provided by the Canadian Observatory on Homelessness, in 14 months we could solve homelessness in Canada.

With that money, we could provide free tuition for every single student in Canada. We could fund pharmacare for the entire population and have money to spare.

That money would not go as far as it used to, because it would not be enough, unfortunately, to cover the electricity overcharges from the Ontario Liberal Party's green energy scam. A dollar does not go as far as it used to.

The last thing I want to touch on is the PBO's warning on economic downward risks. The PBO says “the most important risk is weaker business investment” and that “increased uncertainty and/or weaker confidence could restrain firms from expanding capacity.”

With the red tape strangulation death of energy east, the total amount of disinvestment from energy companies alone has reached $56 billion. C.D. Howe is saying that business investment in Canada is at its worst level, compared to the U.S., in 25 years. It said to increase investment, we need “faster and more certain regulatory processes, affordable electricity and lower taxes”. What do we get? We get more regulatory red tape and uncertainty, higher prices for electricity because of green schemes, and higher taxes.

In the book Glinda of Oz, which is the final book written in the series by Oz creator Frank Baum, it is revealed that the witches knew all along that the man behind the curtain was a fraud trying to distract us from the truth. We know that this fall economic statement wizard is a fraud as well. There is no progress for the middle class, just higher debt, higher taxes, and a future of slow growth and uncertainty.

Budget Implementation Act, 2017, No. 2Government Orders

3:50 p.m.

Liberal

Marwan Tabbara Liberal Kitchener South—Hespeler, ON

Mr. Speaker, in closing, the member mentioned higher taxes due to our government, but our government is lowering taxes on small businesses. It is at 10.5% currently and will go down to 9% in 2019. I want to ask the member what he means by higher taxes. We have lowered taxes for the middle class from 22% to 20.5%, and we have also increased money for those families that need it the most. I want to ask which taxes he is talking about that are increasing.