House of Commons Hansard #26 of the 44th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was drug.

Topics

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:35 a.m.

Conservative

Ziad Aboultaif Conservative Edmonton Manning, AB

Madam Speaker, I thank my colleague for supporting this motion. It is a matter of fairness and justice. It is a matter of fairness to the provinces, especially to Saskatchewan. That is what the motion is asking for.

Does the member agree with that?

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:35 a.m.

Bloc

Mario Simard Bloc Jonquière, QC

Madam Speaker, I completely agree with my colleague.

I may not have focused on that aspect in my speech, but it is unacceptable to allow a company like Canadian Pacific, which according to my research makes $2.8 billion in profit a year, to not pay taxes. That is unacceptable.

That is something that I think can be fixed quickly. With the goodwill of the Liberal Party, I am sure that we can quickly resolve that issue.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:40 a.m.

Winnipeg North Manitoba

Liberal

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

Madam Speaker, I am wondering if the member can reflect on the amendment we have before us today in the form of a motion. It deals with an agreement that was, in principle, agreed to back in the 1960s. It dates all the way back to 1880, as has been pointed out.

There is a general feeling on all sides and from all stakeholders, including CP Rail itself to a certain degree, although this might be somewhat dated, that there is a quite difference between a motion of this nature and some of the more complicated issues of constitutional ideas that surface from all sides of the House. Does the member recognize the difference?

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:40 a.m.

Bloc

Mario Simard Bloc Jonquière, QC

Madam Speaker, to be honest, I have to tell my colleague from Winnipeg North that I am not a constitutional expert. However, I very much appreciate the idea that an opposition member can propose amendments to the Constitution by means of a motion.

As I said earlier, when I was a bit younger, I was interested in what James Tully had to say about flexible constitutions. Personally, I tend to think that is a good idea. If we set a precedent, it could be good for those who are trying to advance the idea that the Quebec nation could have more political autonomy. From that perspective, I find that my Conservative colleagues' motion is worthwhile.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:40 a.m.

NDP

Peter Julian NDP New Westminster—Burnaby, BC

Madam Speaker, I always enjoy listening to the member for Jonquière. I lived in Saguenay for several years.

The big issue before the House of Commons today is the fact that a tax loophole has cost us hundreds of millions of dollars. As we all know, we lose $25 billion a year to tax havens. There are tax loopholes everywhere. In Canada, the ultrarich avoid paying their fair share of the money that should be invested to combat the housing shortage, to reinforce our health care system and so forth.

My question for the member for Jonquière is simple. Is it not important to eliminate all these tax loopholes?

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:40 a.m.

Bloc

Mario Simard Bloc Jonquière, QC

Madam Speaker, I completely agree with my colleague from the NDP.

The government is plainly complacent about tax havens and tax loopholes. There is talk of the need for major initiatives once we are out of this crisis, including with regard to health care funding. That money will have to come from somewhere.

There needs to be major tax reform. We also need to put an end to tax havens and all the tax loopholes that are poisoning our society. I completely agree with him.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:40 a.m.

Bloc

Jean-Denis Garon Bloc Mirabel, QC

Madam Speaker, I feel like I am dealing in antiques today. The motion we are debating would amend a Constitution that was ill-conceived and that has aged poorly. The Constitution has so many holes, it looks like moths got at it. The holes in this Constitution are costing the provinces, Quebec and taxpayers a lot of money and preventing the provinces from properly and independently funding their public services.

What we are talking about today is a 136-year-old, billion-dollar company that cleared $2.8 billion in net profit last year and is exempt from paying taxes. As an economist specializing in taxation, my first instinct is to say this is an injustice and a relic of post-colonial cronyism.

This tax revenue is owed to Saskatchewan, and we think that the provincial government should get this money back. I want to inform my colleagues straightaway that I will be pleased to support this motion.

However, since we are speaking of holes in the Constitution that are costly for the provinces, I think it is difficult to ask the opposition, and especially members of the Bloc Québécois, to disregard other fundamental problems that this Constitution has created.

As I said, the Constitution has not aged well. The Constitution was drafted in 1867, and the majority of its provisions are still in force today, but the country that drafted this Constitution was not a modern country. Health care essentially referred to field hospitals run by religious communities. Assistance for the poor was essentially charity, again run by religious communities. Education consisted of a few one-room schoolhouses and some private schools supported by charity. These responsibilities were assigned to the provinces. The Catholics were in Quebec, and they were essentially given peanuts. The Constitution was obviously drafted to ensure that Ottawa would get more and more revenue over time.

When Canada was founded, there was no personal income tax, no corporate tax, and no sales tax. I just listed basically all of the federal government's revenue sources. Since then, all the responsibilities have remained with Quebec and the provinces, but half of the revenue has gone to Ottawa.

That is the problem, because we have a dusty old Constitution, the spirit of which the party in power deigns to respect. The provinces have responsibilities, and they must have management autonomy and must be able to legislate in their areas of jurisdiction. What remains is the power to spend. The problem is simple, and I have explained it many times to students: Ottawa has too much cash. That would make a great headline.

Ottawa loves to meddle in provincial affairs, loves to spend money and make legislation in areas of provincial jurisdiction, but the Constitution does not allow this. However, there is a loophole: the federal government can tell the provinces that if they do not do what it wants, it will withhold the promised money instead of giving it to them. Unfortunately, the Constitution has evolved, but not for the better. That is the problem.

Today, we have a government that provides Canada health transfers that cover only 22% of the system's costs. When this government is asked to respect the Constitution, it spits in Quebec's face. The line that all the Liberals across the way keep repeating like trained parrots is that Quebec will not be given a blank cheque, that money is not given out without accountability.

We tell them that it is none of their business and that health is not a federal jurisdiction. Their response, which I have been given here in the House, is that this is false and that it is a shared jurisdiction. They say that we have only to look at the Canada Health Act to see the way it is institutionalized. This act is the embodiment of the federal spending power. It is an almost unethical way of confirming that Ottawa has too much cash.

The blank cheque is Canada's Constitution, and that is not what Quebec is asking for. The Liberals have slashed funding for health care. People need to understand that. The Constitution is full of holes. It has evolved, but not for the better. That is also true for other sectors.

Mental health is an important matter. The pandemic has shown how difficult things can be and how great the provinces' needs are in terms of mental health. That is also the case for health care and hospital capacity.

What was the government's response? It decided to appoint a minister. Instead of appointing a minister of mental health, it should have sent money to Quebec. The issue is not that we are begging for money, but that the Constitution is full of holes as though eaten by moths. It should have been printed on cedar.

The same goes for housing. There is currently a housing crisis. We know the Liberals well. They talk a lot and think that the problems will solve themselves. Quebec wants respect. Negotiations on housing have been been ongoing for two and a half years. We are at that point because Quebec ensures that its jurisdictions are respected and stands up for itself. That is nothing new.

In 1951, the then premier of Quebec, Maurice Duplessis, was already turning down federal subsidies for universities, because Ottawa had already started acting predatory by then. What did Quebeckers do when Ottawa refused to give in? They forfeited their own money, just as they are doing now, just as they have done for housing, health and mental health. Ottawa wants us to give in to its conditions because it has too much cash. That is the case for social policy, for the Canada health transfer and for the Canada social transfer. Ottawa says that if we do not accept its conditions, it will not give us the money.

I did not say I was against a universal public health care system and so on. What I said was that it is none of their business. The reason they are not minding their own business is that the Constitution has aged poorly. None of it has aged any better than the section that applies to the CPR. It is important to understand that this is not an exception. It is a major problem.

Now I would like to share a bit about myself.

I remember the moment when something just clicked and I decided to become an economist. I believe it was in 2001. I had read the Conference Board of Canada's report on the fiscal prospects for Quebec and the provinces. In early 2000, I was attending CEGEP. I still have the document, which has a blue binding. It showed the changing demographics and the provinces' responsibilities and how everything was going to fall apart. I should note the Conference Board is not a group of sovereignists.

People have been saying this for a long time. The Tremblay commission in Quebec said it, and so did the Séguin commission. This was based on forecasts that proved to be accurate. What happened on the other side? Nothing.

Former Quebec premier Bernard Landry, who was negotiating with former prime minister Jean Chrétien, had no choice but to call him a predator because of his behaviour. The Constitution has not aged well and was not well written.

I sympathize with our friends in Saskatchewan. A mistake can be corrected. In fact, correcting one's mistakes is a sign of intelligence. I think that we will show some intelligence today on this file.

Following this debate and after all is said and done, I sincerely hope that the CPR will be able to sing “Saskatchewan, you took my tax”.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:50 a.m.

Winnipeg North Manitoba

Liberal

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

Madam Speaker, I believe the member is completely out of touch with what the people of Canada, including people in Quebec, actually feel is an obligation of the federal government.

The residents I represent, and that he is smearing, understand and appreciate that there is a need for the federal government in the area of health care. It is not good enough just to give cash. We can look at the pandemic, long-term care, mental health and other very important issues where my constituents, and I believe many of the constituents the member represents, want to see a national government presence in health care.

Could it be the member is using a brush to paint a picture that is unfair to the people of Canada?

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:50 a.m.

Bloc

Jean-Denis Garon Bloc Mirabel, QC

Madam Speaker, my colleague from Winnipeg North is so disconnected that I think I will ask a page to take him an adapter.

There are 10 provincial premiers, all of whom are asking for an unconditional increase in health transfers and for Ottawa to mind its own business. Would my colleague say they do not represent anyone? Do those people not matter?

This is the attitude I am talking about, the Liberals' attitude towards Quebec and the provinces. They would have us believe that mutual respect is tantamount to giving a blank cheque. Meanwhile, they are slashing funding. Our constituents, like those in my riding, Mirabel, need more funding for improved services and want the system to be managed by the people on the ground, not you.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:50 a.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

I want to remind the hon. member that he is to address questions and comments through the Chair and not directly to other members.

The hon. member for Regina—Lewvan.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:55 a.m.

Conservative

Warren Steinley Conservative Regina—Lewvan, SK

Madam Speaker, I appreciate the comments of my colleague from the Bloc. I think there is symmetry in what Saskatchewan is going through with this Constitutional amendment: this mistake that should have been fixed in 1966.

Are there other, comparable changes the member would like to see made to the Constitution from a Quebec point of view? It is nice to see that Quebec and Saskatchewan are on the same page. Could the member outline a few more examples of where he would like to see some fixes in the Constitution for his home province?

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:55 a.m.

Bloc

Jean-Denis Garon Bloc Mirabel, QC

Madam Speaker, as my colleague knows, if it were up to me, there would be an international border along the Ottawa River. Of course, that would not stop me from inviting my colleague for the weekend.

I would say that the first thing would be to recognize Quebec as a distinct society and the legal implications that entails.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:55 a.m.

NDP

Gord Johns NDP Courtenay—Alberni, BC

Madam Speaker, I really appreciate my colleague talking about the deficiencies when it comes to health care transfers to the provinces.

As I said earlier, I met with the Canadian Medical Association's Dr. Smart yesterday. She cited that $6 billion is needed right now just to end waiting lists. We know that health care workers are stressed. They are tired. We know there is money out there, and that corporations are not paying their fair share, whether it be Canadian Pacific in Saskatchewan or those that are using tax havens or loopholes not to pay their fair share of taxes.

Would my colleague agree that the Liberal-Conservative coalition to protect large corporations needs to end, and that large corporations that have profited from the pandemic, that are moving their money outside the country, and that have CEOs who are not paying their fair share of taxes, need to pay their fair share? Then we could have doctors and nurses, and the services that all Canadians need to protect themselves and their families.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:55 a.m.

Bloc

Jean-Denis Garon Bloc Mirabel, QC

Madam Speaker, the Bloc Québécois has always been an ally of the taxpayer in the fight against tax evasion.

When it comes to funding health care, I would like to point out that we heard the Minister of Health across the way tell us about the pandemic and say that suddenly there was money and commitment, but only when the solution was temporary. For a permanent solution there is never one cent.

It is important to realize that the money the provinces are asking for, and which is in Ottawa because, as I was saying, the Constitution is full of flaws, is money that was taken away from us. It is money we used to have. All we want is to go back to the way things used to be, which was more or less fair. We are not asking for heaven and earth. We are just asking for the minimum, and this government refuses to even listen.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

11:55 a.m.

NDP

Taylor Bachrach NDP Skeena—Bulkley Valley, BC

Madam Speaker, I am very pleased to rise today and speak to the opposition motion brought forward by our friends in the Conservative Party down the way. I am even more pleased to be sharing my time with the excellent member for Elmwood—Transcona.

This motion proposes an amendment to the Constitution of Canada that would repeal section 24 of the Saskatchewan Act and deem the change retroactive to August 29, 1966. Notably, this would remove a provision dating back to 1880, prior to Saskatchewan's becoming a province in 1905, which exempted Canadian Pacific Railway from paying provincial taxes in Saskatchewan.

This has been an interesting issue to learn about over the past 48 hours. I understand that this motion here before us today complements a similar motion the Saskatchewan legislative assembly unanimously passed in November of last year.

I might seem to my colleagues a bit of an unlikely speaker to this issue, being a B.C. boy and all, but I am honoured to serve as the NDP transport critic. Of course, trains transport things, and Canadian Pacific owns trains. Hence, for the next 10 minutes, Madam Speaker, I am your guy. More important, I am a proud Canadian, and I believe in the principles of fairness and responsibility, which I believe lie at the heart of this issue.

For folks following along back home, and I will not hazard to guess how many of those there might be, I believe these are the basic relevant facts in this matter. Canadian Pacific Railway obtained access to a huge swath of our country, much of it unceded indigenous land, to build its railway. While the corporation made a significant investment, it also received substantive incentives from the federal government of the day. Among those incentives, the federal government agreed, in its contract with Canadian Pacific Railway, to exempt the railroad from paying taxes in perpetuity.

It is surprising, I know, that a Conservative government would agree to such immense corporate welfare, but there we have it. Despite this, and for reasons that are not exactly clear, CP has been voluntarily paying taxes to the Province of Saskatchewan for a century. It is also surprising to see such voluntary corporate benevolence.

Today, Canadian Pacific wants the taxes it has paid to the province since 2002 to be returned in the sum of $341 million on the basis that it should not have paid those taxes in the first place. I am not a lawyer, and I will not be making legal arguments today. The battery of lawyers who are engaged in the court case that is ongoing will have that aspect well in hand. Rather, the argument I will make in support of this motion is a simple moral one.

Today, Canadian Pacific benefits greatly from the Province of Saskatchewan and from the infrastructure and services its residents have funded through their taxes. CP employees drive to work on roads paid for by the people of Saskatchewan. They utilize hospitals paid for by the people of Saskatchewan. Their kids go to schools paid for by the people of Saskatchewan.

Ignoring, for a moment, the historic paperwork negotiated under who knows what kinds of circumstances, I doubt many in this place would dispute that Canadian Pacific has a responsibility as a corporation to contribute its fair share to the province's coffers. This is hardly a company that needs either a hand up or a handout. Last year, CP made $3 billion in profits.

It is not as though being exempt from taxes would level the playing field on which CP operates; it is quite the opposite. After all, Canadian Pacific's main competitor in Canada, CN Railway, pays its taxes. I imagine CP's other competitors in the United States also pay applicable state and federal taxes.

This is about fair treatment for Saskatchewan in this confederation. Saskatchewan deserves to be treated equally, with the same control over its internal affairs and taxes that every other province enjoys. The jurisdictional inequity raised in this motion unfairly denies it that. The people of Saskatchewan have made their will clear, and the unanimous passage of the same motion in the provincial legislature illustrates that there is cross-party support for this change. It is time for the House to act.

By nullifying the historic tax exemption, this motion essentially codifies into law the practice that CP has already been following for an entire century. It seems to be the right and proper thing for us to do.

Besides a questionable historic contract, how could CP possibly argue it should not pay its fair share to the Province of Saskatchewan? People in Saskatchewan want their taxes to go to the public services they rely on, things like health care and education. They do not want them to have to pad the profits of a multi-billion dollar corporation. The money that CP Rail is demanding could be much better spent. I think everyone in the House will agree that it would be much better spent helping the people of Saskatchewan.

The railroads, and I speak of railroads in the plural sense, had a pivotal role in the development of our country. It is one of the central narratives we are taught in elementary school, yet in many ways, it was a Faustian bargain because today we are left with corporations that wield power far out of proportion to their place in our society. Railway companies have their own private police forces that investigate their actions when things go wrong, as we saw in British Columba after the disaster that killed three men in 2019 near Field: Dylan Paradis, Andrew Dockrel and Daniel Waldenberger-Bulmer. Their families are still fighting for justice.

Railways own vast tracks of land, much of it adjacent to communities, and this too often constrains community development and restricts public access. Railway companies design their own safety plans, which are opaque to citizens and communities and, as the auditor general found in her follow-up audit last year, are inadequately monitored for effectiveness by Transport Canada.

Railway companies also own the tracks themselves, precluding the federal government from operating a dependable passenger rail service in much of the country during a time of climate crisis when our national bus service has been shut down for good.

Now I certainly recognize the positive role that railways play as well. They are certainly important employers in our communities. In the community I live, in the community of Smithers, the town is named after the former president of the Grand Trunk Pacific Railway, Sir Alfred Smithers. Notwithstanding those things, when I talk to community leaders about their relationship with the railroads, sadly, mostly what I hear are stories of frustration.

In light of this dynamic, which is admittedly difficult to reshape given all that has happened, I would submit that the least we should expect is that these highly profitable companies pay their taxes. Let us put an end to this historic injustice. I hope all parties in the House will come together and ensure that Saskatchewan is treated as an equal partner in our Confederation. It sounds like they will.

Learning about this issue made me think of my mom's family, who settled in Regina in the 1800s. My great-great-grandfather, George Broder, settled in Regina in 1882, right around the same time that CP was building the railroad. His son-in-law, my great-grandfather, Neil Taylor, was a lawyer, businessman, veteran, athlete and someone who loved his own province deeply. Incidentally, he ran for the federal Conservative Party in 1945. I checked the electoral record, and I was simultaneously delighted and dismayed to see that he was trounced by someone representing a little party called the CCF.

Now, Neil, my great-grandfather, was also known as “Piffles”, a nickname he was given in reference to a turn of phrase that was popular during that time. If someone said or did some thing that was, shall we say, extremely lacking in merit, one would say it was “piffle”. It was nonsense, rubbish, balderdash and all the other words I am not allowed to say in this place, either directly or indirectly.

I asked my uncle Sam in Vancouver about this. He is our family's historian. I wanted to know what he thought my great-grandfather would have said about this issue if he were alive today, what he would say about a wealthy railroad company trying to get out of its responsibilities to the people of Saskatchewan. He said he would probably say that it was a bunch of piffle.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

12:05 p.m.

Conservative

Warren Steinley Conservative Regina—Lewvan, SK

Madam Speaker, first of all, I would like to thank the member for his support of our motion. Saskatchewan appreciates it. It is also heartwarming to see how everyone tries to make a connection to Saskatchewan. It has been said that all roads will lead to Saskatchewan, so I am happy to see members trying to make that connection. It is truly the best province in our country.

I understand that the railway does have a wide swath. I think that if we can find agreement on something else today, other than the motion itself, is that maybe if we had other ways to move goods back and forth across our country other than the railway, maybe with some pipelines, that would be a good start as well.

I wonder if my colleague would agree that some pipelines also need to be built in this country.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

12:05 p.m.

NDP

Taylor Bachrach NDP Skeena—Bulkley Valley, BC

Madam Speaker, I certainly appreciate what my hon. friend is trying to do with his question. Now, I agree that the things that bring us together as different provinces across the country are good things indeed. I would submit that, given his province's excellent renewable energy resources, perhaps an even better opportunity is to come together around the vision of a clean energy economy, one that delivers the kind of safe and secure future for our kids that I think we all want.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

12:05 p.m.

Winnipeg North Manitoba

Liberal

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

Madam Speaker, based on a number of today's comments, people listening to the debate might think CP has not been paying any taxes to the Province of Saskatchewan, and we know that to be not true. I wonder if the member could provide his thoughts on not only ensuring tax fairness but also being transparent that CP has actually been paying taxes. It has not been using that particular clause in order to avoid paying taxes.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

12:05 p.m.

NDP

Taylor Bachrach NDP Skeena—Bulkley Valley, BC

Madam Speaker, the parliamentary secretary will note that in my speech I detailed at some length the fact that CP, for some reason, has been paying its taxes for 100 years voluntarily despite a clause in the contract that clearly exempts it from doing so.

The question I have is a similar one. Why all of a sudden is this railway company wanting its taxes reimbursed? What happened 13 years ago? Maybe there was a change in its legal team or a new staff member came in who wanted to prove themselves, but all of a sudden it is coming forward and saying that it wants 300 and some million dollars from the people of Saskatchewan and that does not want to pay taxes going forward. What changed in its philosophy as a company?

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

12:10 p.m.

Bloc

Luc Desilets Bloc Rivière-des-Mille-Îles, QC

Madam Speaker, my colleague and I seem to be on the same wavelength. If this Conservative Party motion is adopted and an amendment is made to the Constitution, what does he believe that would imply for Quebec, which in fact wants to revisit the Constitution?

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

12:10 p.m.

NDP

Taylor Bachrach NDP Skeena—Bulkley Valley, BC

Madam Speaker, I listened carefully to the speech of the member's colleague on this matter, and I understand there are a number of long-standing grievances the Bloc would like to see remedied in one way or another. To make limited changes to the Constitution using this mechanism is something that has been done before by other provinces. It is an avenue available to every province.

I am not a constitutional scholar, and I will leave it to those more educated in those areas to give some sense of what might be possible, but absolutely it is important that it is a living document and that we make changes as appropriate over time to reflect the will of the people of our country.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

12:10 p.m.

Conservative

Arnold Viersen Conservative Peace River—Westlock, AB

Madam Speaker, it is always an honour to rise and ask the member for Skeena—Bulkley Valley a question, as I have family from that part of the world. Earlier my colleague was talking about pipelines, another transportation method in Canada, and the retort was about renewable energy.

In Alberta, we do all of the things. We do renewable energy, traditional energy and all of these things. The lack of pipelines has really rejuvenated the rail system in northern Alberta because a lot of the oil is now going out on rail. I am wondering what my colleague's comments are on that.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

12:10 p.m.

NDP

Taylor Bachrach NDP Skeena—Bulkley Valley, BC

Madam Speaker, we seem to be straying a bit from the constitutional matter at hand, but I will humour the question from my colleague. Obviously, transporting oil by rail or by pipeline is a risky business, as we have seen evidenced by many spills over the years and all of the damage that has occurred.

We need to do things as safely as possible, and I have grave concerns about the safety of our railroad system. The transport committee is currently studying rail safety, and I would invite my hon. colleague to attend some of those hearings and learn about—

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

12:10 p.m.

Liberal

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Liberal Alexandra Mendes

Resuming debate, the hon. member for Elmwood—Transcona.

Opposition Motion—Amendment to the Constitution of Canada (The Saskatchewan Act)Business of SupplyGovernment Orders

12:10 p.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Madam Speaker, I thought I might start off in today's debate by making a couple of disclosures.

First, my paternal grandfather comes from Saskatchewan: Biggar, to be exact. He ended up in Transcona, which is also a rail town, because at that time, in order to serve an apprenticeship with CN, one had to do time in Biggar and then in Transcona. That is how my father's family found its way to Transcona: by working on the railway for CN, of course, not CP. CN continues to be a very important company in Transcona. It does not employ anywhere near as many people as it used to, but it still employs a lot of people, and its training centre is in Transcona just about a stone's throw away from my home, where I am speaking from today.

We deal with a lot of challenging issues in Parliament. One of the things we can take from the tenor of today's debate and the confluence of arguments is that this is a pretty straightforward question. It does not make sense to exempt a large and profitable corporation from paying the taxes its competitors pay by virtue of something that happens to be in the Constitution from a very long time ago.

As people have remarked, it is legitimate to wonder what changed. Why, all of a sudden, has CP adopted a very different posture, and why does it want over $300 million in taxes it paid to Saskatchewan back from the province? It had been paying its taxes without issue for about 100 years, despite having access to this exemption under the Constitution. It is clear that CP operates in a competitive market, and its competitors do not get this kind of exemption. Therefore, if we want to have a fair and competitive industry, players have to be playing by the same rules at the very least. That is why I am very happy to support this change and to protect folks in Saskatchewan from having to reimburse taxes that I think were rightly paid by CP.

What is interesting about this feature of the Constitution that we are trying to change today is that it hearkens back to a time when government was a lot more open and honest about the extent to which it was willing to patronize large companies. However, that kind of thing is happening today. I would argue that we should be just as concerned about the kind of flagrant disregard that governments in Ottawa, whether Liberal or Conservative, have had for big companies paying their fair share. We should be just as concerned with the examples of that today as we are regarding historical examples, because they certainly persist.

Here we have something that at least is clear-cut. It is in the Constitution, so it is easy to see. What is a lot harder to see are the details of the transactions that go on, under various agreements, that establish tax havens so that wealthy corporations and individuals are able to move their money out of Canada without paying taxes. That is a lot harder to have an informed debate about. We do have folks who have done a lot of work on this, but it takes a lot of digging. It is not spelled out in the Constitution, and we do not have a company going to court to celebrate what it thinks is its right to get out of paying its fair share.

Instead, we have a lot of shady dealings. They are under legal agreements, to be sure, but they are shady nonetheless. We do not have appropriate access to information about how much money is leaving the country and the extent to which large, profitable corporations are getting away without paying their fair share.

As far as I am concerned, what is happening with CP is just one small, stark example, on the scale of what is going on, of what is happening every day in the Canadian economy. Based on the best information available, and it is not a very transparent process, the Parliamentary Budget Officer estimates that Canadians are losing out on $25 billion every year through the use of tax havens by Canada's wealthiest individuals and corporations.

We are talking about a tax bill that has accrued over the last 20 years or so that is on the order of about $300 million.

For those who are getting up today to highlight the unfairness of CP demanding back $300 million from Saskatchewan taxpayers, which it rightly paid and should not get back, I would hope that we can take our outrage and our shock at that and transform it into some meaningful action on something that might actually make a dent in the finances of the nation. There is certainly a need to be able to pay for things that are going to support people through the remainder of this pandemic, but also that will help make investments as we try to face the climate challenge.

Of course, there are people who say that the government should not spending any money on encouraging renewable energy or other things like this, because the government has no place in deciding these things, but CP is an interesting case study with regard to that.

Despite all the wrongs that were part of building that railway, whether it was the treatment of indigenous people and running roughshod over their land, or the Chinese people who were brought here to work on the railway and who were killed and treated horribly, there is no question that building the railway was a central component of making Canada the country it is today. There is a lot that we could talk about regarding what was wrong with it. That is a legacy we can talk about and debate another time.

However, it did not happen solely through the ingenuity of private entrepreneurship. In fact, there was a fair bit of government investment. We are dealing with the legacy of that government involvement today. I think it shows the extent to which the big things do not happen without public involvement. They do not happen without the involvement of government. We can look at Alberta and the government of Peter Lougheed, and the amount that government invested in developing the technology that would ultimately produce the oil sands technology that has been part of driving Alberta's economy for decades now. There was massive public investment in that.

There is certainly a lesson to learn from this, and that is that public investment is required for the big things that help move our country forward. Canadians should not expect that some few people get to benefit from that investment and make off with the money. That is too often the case, as CP is reminding us by insisting on what it takes to be its right to not pay its fair share, even though there were all sorts of different kinds of public subsidies, whether preferential tax treatment or direct investment.

That is not the way these things should work. If we want to build Canada, and if we want to confront the big challenges of our time, that has only ever happened with massive public investment.

The question should not be whether the public investment happens or not. The question should be who is benefiting from that investment and how do we, as legislators and governments elected by Canadians, ensure that Canadians are the ones ultimately benefiting from that.

While there are people who make some money along the way, we have to make sure that does not get out of hand. In a country where 1% of the population now owns 25% of the wealth, we are in a position where that is getting out of hand again. This is an interesting reminder from the 19th century, which was a case study in just how bad things are when a very small number of people controls all of the wealth and resources. It is something we should be mindful of.

We should turn ourselves to the task of combatting the big infrastructure challenge of our time, which is climate change, with our eyes wide open, appreciating that in the past, when there have been big infrastructure challenges, government has had an important role to play. We should learn a lesson from this, which is that we need vigilance not to keep the public sector out of developing the future of the country, but to ensure that a few people along the way do not make mad money while others suffer in order to create that progress.

Let us deal with this today but learn the larger lesson and ensure the wealthy are paying their fair share, and ensure Canadians are benefiting to the extent that they should from investments and infrastructure that we have to make.