Lost her last election, in 2008, with 29% of the vote.
Standing Committee On Industry November 14th, 1994
Mr. Speaker, I am not prepared to respond to the question of October 28. I am prepared to respond to the question of October 24. I apologize but that is the information I was given. If the hon. member would like, I can talk in general about October 24.
Standing Committee On Industry November 14th, 1994
Mr. Speaker, I was informed that the question the member for Calgary Southeast wanted to refer to was the one she brought up on October 24th. My response is with regard to that question.
Veterans November 14th, 1994
Mr. Speaker, it was 50 years ago that Canadian soldiers of the second world war fought to liberate Belgium and bring peace to Europe.
Between October 1 and November 8, 1944, 6,367 Canadians were killed or wounded in the Battle of the Scheldt. From October 24 to November 7 of this year 60 Canadian veterans returned to Belgium and the Netherlands to attend commemorative services as part of the Canada Remembers Program. Over 38 events were held including a ceremony at Bergen-Op-Zoom, a parade at the Hickman Bridge and a church service in Knokke.
One overwhelming theme which rang through at each town and cemetery was the enormous admiration and respect the people of Belgium and the Netherlands have for our Canadian veterans.
1994 also commemorates the 80th anniversary of the beginning of World War I. Remembrance services were held at Vimy and Beaumont-Hamel to honour those who served in the first world war.
I ask all members to join with me and the Secretary of State for Veterans in remembering all Canadians who fought on behalf of our country. We ask you to salute the veterans who participated in the commemorative services for the Battle of the Scheldt.
Tobacco Taxes October 20th, 1994
Madam Speaker, I must rise today to oppose Motion No. 288 before us. While I appreciate the concern for Canadian health that motivates the hon. member, I cannot agree this is the time for the backward steps he is proposing. It is quite the opposite.
I feel there are very good reasons why the federal government should maintain the current level of federal tobacco taxes. Just as important, the government should also adhere to the general practice of avoiding earmarked taxes. Let me explain why I believe this to be true.
Hon. members will recall that just nine months ago we were besieged by the black market sale of tax free exports of Canadian cigarettes which were being smuggled back into Canada. Indeed, contraband tobacco products which often sold for less than half the price of legal sales were accounting for an estimated 40 per cent share of Canada's $12.4 billion tobacco
market. The country was confronted with a very serious problem.
Tobacco smuggling was fostering disrespect for our laws and creating serious law enforcement problems. Organized crime networks controlled 95 per cent of the tobacco smuggling. Their tobacco profits helped to fund other illegal activities, including drugs, alcohol and firearms smuggling. Cheap contraband cigarettes were readily available to young Canadians and the problems of smuggling and the attitude of too many Canadians that avoiding tobacco taxes was a sort of game may well have added to the tobacco's appeal to impressionable youngsters.
The consequences were serious. It was undermining the government's health policy objective to reduce tobacco consumption, particularly among youth. As well, many law-abiding merchants were being pushed out of business by the underground sales.
I want to inform the House that the federal and provincial governments were also being deprived of the tobacco tax revenues, $1 billion for each level of government in 1993, that helped to pay for government services and programs that Canadians expect.
To combat this illegal activity, on February 8, 1994 the Prime Minister introduced the action plan on smuggling. That plan includes an enforcement crackdown, reduced taxes on tobacco products, measures affecting tobacco manufacturers and a health promotion surtax on tobacco manufacturers' profits to provide significant funding for health related anti-smoking initiatives.
The enforcement crackdown entails increased RCMP and customs personnel and equipment dedicated to fighting smuggling. Their efforts are particularly aimed at stopping the flow of contraband at key spots along the Canada-U.S. border.
Federal excise taxes have also been reduced by $5 per carton. Up to a maximum federal reduction of $10 we offered to match on a dollar for dollar basis provincial reductions above $5. Most provinces east of Manitoba have reduced their tobacco taxes.
The action plan also imposed an export tax of $8 per carton on Canadian tobacco exports. This reflected the fact that 80 per cent of the cigarettes sold on the black market were Canadian cigarettes manufactured for export.
In addition, the federal tax rate on corporate profits for manufacturing and processing tobacco products was increased by 40 per cent. The revenue generated by this surtax will fund Canada's largest ever anti-smoking campaign.
The government has also undertaken to ban the manufacture of kiddie packs which were targeted at young buyers. It also moved to increase the legal age for purchasing cigarettes, increased fines for selling tobacco to minors, restricted vending machine locations and made health warnings on tobacco packaging more effective.
A majority of Canadians believe the action plan is the right approach to address tobacco smuggling. Their belief is well-founded. Our integrated approach is definitely working.
By seriously reducing profit margins it is eradicating both the supply of and demand for contraband tobacco products. It has particularly caused serious disruption to the operation of organized smuggling networks. It has substantially restored the domestic tax paid market for tobacco products.
However, I want the House to know that this initial success does not provide unconditional support for a tax increase that will bring back previous levels. The fact is some amount of tobacco smuggling continues in central and eastern Canada. Moreover the RCMP reports that smugglers have developed new supply and distribution lines to the western provinces where governments have not reduced tobacco taxes.
I too would like to see tobacco taxes increased but first we must win the battle against smuggling. To that end, tax measures support enforcement efforts and enforcement efforts take time to achieve maximum effectiveness. That is why this government remains committed to strong action to address smuggling on a comprehensive national basis, strong action which includes maintaining federal tobacco taxes at current levels.
Motion No. 288 also calls for the redirection of tax revenues to specifically fund health care costs. The government is not in favour of such action. All members will know that tobacco tax revenues are an important part of government tax collections. In keeping with our general practice of avoiding earmarked taxes, these revenues are used to fund programs and services across many areas of responsibility. This ensures that the government's flexibility to respond to changing needs and conditions is not constrained. It also protects over or underfunding of the selected area.
I should note however that the use of proceeds from the health promotion surtax is an exception to this general rule. In particular this targeted approach was undertaken on the basis of the measure's temporary nature and specific intent to ensure that manufacturers do not derive any benefit from the tobacco tax reductions.
I share the concerns of all members with respect to low tobacco taxes. I know our government has no interest or intent in encouraging tobacco use. Nevertheless, this is not the appropri-
ate time to reintroduce higher tobacco taxes, nor should tobacco taxes be directed solely to health care. Hence, I urge this House to dismiss Motion No. 288.
Department Of Industry Act October 17th, 1994
Madam Speaker, I am happy to participate in this debate on the bill to reorganize the Department of Industry. The red book foreshadowed this bill. Like this bill its main focus was on small and medium sized businesses as a determining factor in turning around the Canadian economy. It acknowledged that the growth of these firms is essential to creating jobs for all Canadians.
Several initiatives have been announced as part of the small and medium enterprise agenda. A new fund has been established to help expand existing businesses through the Federal Business Development Bank. As well, the Canada Community Investment Fund has been announced to ensure equity financing for smaller firms.
Part of the role of this bill is to focus on the importance of tourism to the Canadian economy. It must be recognized that the money government puts into tourism we get back within 90 days. We get this money back not tenfold but many times that rate.
In 1992 as an example, tourism generated $28 billion in sales revenue for Canada. In the same period the federal government through Industry Canada had a tourism budget of $23.2 million. Every federal dollar spent on tourism contributed $1,201 in sales revenue in Canada in 1992.
Canada's tourism industry also had a significant impact on our current account, contributing $8 billion a year. Tourism employs more than half a million Canadians directly and generated jobs faster than the economy as a whole over the past decade. It is an industry to be recognized. As well, the analysis shows that tourism affords solid opportunities for income and employment generation in all regions of Canada. Current favourable economic conditions offer an excellent opportunity to exploit more fully Canada's international competitive advantage, its clean, safe, natural environment and support industry efforts to attract more international tourists, thus increasing revenue for Canada.
It is my belief that the tourism industry affords an opportunity to provide entry level work and job experience for young Canadians and for groups that traditionally have had more difficulty obtaining employment. Almost 40 per cent of the people working in tourism are under the age of 25, nearly double the proportion of young people in the general labour force.
The tourism industry is also an important provider of jobs to the unemployed. It is a stepping stone for back to work after unemployment, particularly for the young. Sixty per cent of the people who get work in tourism get that work after a period of not working and are under the age of 25.
This government recognizes the importance of this industry and we support it accordingly. The support is shown by the Prime Minister's initiative and appointment of the Hon. Judd Buchanan to work with the government and the private sector to make recommendations on how to increase Canadian tourism and revenues.
I had the opportunity to meet with Mr. Buchanan to discuss tourism concerns in my area of the country and I look forward to Mr. Buchanan's recommendations which I understand are to be made public soon.
In my riding we have the basis for creating an excellent tourism industry. Essex county and the city of Windsor have a wide degree of tourism oriented businesses. We have such historical sites as the Park House, Fort Malden, the North American Black Museum and additional historical sites that are being developed such as the Gordon House and HMS Detroit . As well everyone has heard about the opening of the casino in Windsor. It was expected and is bringing hundreds of thousands of new visitors to the area so far and will continue to do so we hope every year.
As well the recent acquisition of Boblo Island by a local developer who is interested in working with the community to create a year round tourism facility with year round employment opportunities should provide excellent opportunities for the area. Most important our area is bordered on three sides by natural waterways affording numerous recreational opportunities including one of Canada's most beautiful national parks, Point Pelee.
What is needed to create a sustainable tourism industry in our area is a strategic plan. The reorganized Department of Industry will be well positioned to create such an over-reaching strategic plan. I look forward to the announcement of measures in this area.
It has been my privilege to have the opportunity to participate in this debate.
Petitions June 16th, 1994
Mr. Speaker, pursuant to Standing Order 36, I am tabling a petition signed by residents of Victoria, British Columbia which the hon. member for that riding has passed along to me.
This petition signed by hundreds of Victoria residents calls for the reinstatement of the Military Marching Navy Band at CFB Esquimalt or the relocation of one of the four remaining military bands.
The petitioners point out that in the absence of the navy band, western Canada will be without a military band as the nearest band is in Winnipeg.
Excise Act, Customs Act, Tobacco Sales To Young Persons Act June 14th, 1994
Mr. Speaker, as I am sure every member appreciates, smuggling is both a serious and complex problem. It threatens our economy and the health of young Canadians.
Bill C-11 plays an important role in the fight against smuggling and in protecting the health of young Canadians.
We know that the Prime Minister's four point, anti-smuggling initiative announced on February 8, 1994 is having a positive impact in the fight against tobacco smuggling. Cigarette exports have plummeted. These exports represented the major source of smuggled products.
However, we need to maintain the momentum we established with the government's anti-smuggling initiative. The decisions by Quebec, New Brunswick, Ontario, Prince Edward Island and Nova Scotia to lower their tobacco tax rates and work within the Prime Minister's anti-smuggling framework are very encouraging.
Bill C-11 deals with the legislative changes we need to make to give our law enforcement agencies the flexibility and tools they need to fight the smuggling problem in its entirety. The proposed amendments to the Excise Act will allow the government to designate other Canadian police forces as appropriate with the authority to enforce certain seizure related sections of the act.
For example, section 88.(2) of the Excise Act provides an officer with the authority to seize vehicles that have been or are being used for the purpose of transporting contraband. As well, subsection 163.(3) will allow an officer to seize contraband spirits in any vehicle used to transport contraband spirits.
These powers have always been available to the RCMP. With Bill C-11, however, we can now extend these powers to other Canadian police forces. In particular, Bill C-11 allows us to respond to requests from Ontario and Quebec for additional powers for their provincial police forces.
In addition to this measure, Bill C-11 includes an amendment that will allow these law enforcement agencies to immediately destroy seized contraband without hindering the ability of authorities to bring criminals to successful prosecution.
This measure will provide our law enforcement agencies with increased flexibility in dealing with the smuggling trade without jeopardizing prosecutions. It will also save taxpayers over $200,000 a year in storage costs. This figure represents savings only to the Department of National Revenue. It does not include amounts to be saved by the RCMP.
An amendment to the Excise Act will also require individual cigarettes to be stamped. This measure will enable our law enforcement agencies and all law-abiding Canadians to more easily identify contraband tobacco products.
Under an amendment to the Tobacco Sales to Young Persons Act, Bill C-11 would also ban the importation of tobacco products by persons under the age of 18. This amendment will help to protect young Canadians from accessing tobacco products from outside the country.
In short, Bill C-11 will help us crack down on smuggling. It will help us break the criminal networks that control the smuggling trade. It will help to protect the health of young Canadians and it is enforceable.
Finally, when we deal with smuggling we also address the underground economy and the problems it creates. Bill C-11 promotes greater co-operation between governments. We are better able to address the challenges we are facing and do it more efficiently by working together.
In closing, I want to highlight an observation that I made during the debate on Bill C-11 in the House and in committee. It appeared to me that all sides of the House agreed on the need to strengthen the anti-smuggling powers of our law enforcement agencies and on the need to protect and educate young Canadians on the dangers of tobacco. I believe that my statements here today have shown this government's commitment toward resolving these problems.
In the House of Commons on February 8 the Prime Minister stated that we must act to eliminate smuggling to protect the health of young Canadians and to restore respect for the law. Bill C-11 plays an important role in accomplishing these objectives.
I hope members of this House will act together to support this bill.
Agriculture May 10th, 1994
Mr. Speaker, I thank the hon. member for his comments.
Briefly I mentioned that in my riding we have five wineries. We know we could produce grapes locally. We know that is a market in my area that we need to expand on and should expand on.
I also mentioned that the minister spent two weeks on a trade mission in the Asia Pacific. That is an area that his department is looking into for new opportunities.
I believe that every government learns from past experiences in negotiating future agreements and this government has learned from what has happened in GATT in the last seven years and from the free trade agreement. In the next agreements we negotiate we will take that experience with us.
Agriculture May 10th, 1994
Mr. Speaker, I would like to advise at the beginning that I will be splitting my time with the hon. member for Lambton-Middlesex.
I want to start today with an article that appeared in this morning's Globe and Mail : Thomas Homer-Dixon notes that the current crisis in Rwanda is in part being driven by severe land and food scarcity''. He further wrote:Rwanda has eight million people crammed into an area the size of Vermont. Its population doubles every five years. Extreme nutrient depletion affects the soil in half the country and agricultural production per capita fell by almost 20 per cent between 1980 and 1990. The land competition fuels the vicious ethnic animosity between Hutus and Tutsis and the collapse of civil order has made the country incapable of dealing with underlying scarcity and population problems''.
This clearly underlines why agriculture, no matter how much we talk of the new economy of the electronic revolution, is and always will be of central importance. Without food we cannot have peace. Without peace we cannot have food.
That is why we called our agricultural paper "Food security for Canadians and a fair return for Canadian farmers". Food security for Canadians and a fair return for farmers are the cornerstones of this government's agricultural policy.
In order to achieve that, and I quote from the red book: "The government is committed to achieving the full potential of the Canadian agri-food sector by developing new markets and maintaining existing ones while capitalizing on economic opportunities for value added regional development. Producers across this country have told us many times that they do not want their livelihoods to be dependent on government handouts. They do not want any special treatment. What they want is the opportunity to derive their income from the marketplace. One of this government's top priorities in this regard is to ensure that all Canadian producers-that is all Canadian producers-enjoy fair and unrestricted access to those marketplaces at home, within North America and abroad. This is why trade has been such an important issue in agriculture since the day this government took office last fall.
This government strongly believes that Canada has the products, the expertise and the technology to compete and win in any market. But in order to do that, Canadians must not be prevented from getting to the starting line.
To ensure that the federal government is working on a number of fronts to secure greater market access for Canadian producers and to do that since last October, the single most dominant issue for this government and for Canada's agri-food sector has been international trade.
It began with the conclusion of the Uruguay round of multilateral trade negotiations under the GATT after seven years of negotiations. Under GATT member countries will reduce agri-food export subsidies by 21 per cent by volume and 36 per cent by value over a period of six years. As greater disciplines are brought to bear on such price distorting programs as the U.S. export enhancement program and the European union's common agricultural policy, international prices for grains and oilseeds should gradually improve over time.
It is true that we did not get everything we wanted in Geneva. As we entered the negotiations late in the game it was not possible to build enough support for a strengthened and clarified article XI 2(c). We were, however, able to negotiate tariffs which will enable supply management to continue to exist as an effective Canadian approach to producing and marketing dairy, egg and poultry products.
We have not stopped there, however. To assist this sector with these adjustments a federal-provincial industry task force on orderly marketing has been established. Its mandate is to consult with all affected sectors of the industry, to develop co-operative processes to deal with the new rules in advance of the GATT implementation in 1995.
Under the task force five ad hoc review committees have been established for the dairy, chicken, broiler hatching eggs, turkey and egg industries. These committees will help draft a task force report to be submitted to the national and provincial agriculture ministers when they meet in Winnipeg in July.
As well, the U.S. is our largest trading partner. In 1991 Canada exported $11 billion worth of agricultural product to the world, of which $4.7 billion was exported to the United States. However, the federal government is also pursuing improved market access with the United States. Under the free trade agreement the last government promised guaranteed access, but we all know what we got was guaranteed harassment. That is why I support the minister's promise to push these negotiations to the wall.
This government has made it clear to the Americans that there will not be a deal unless it is a good deal for Canada. That means a good deal for the grains, processing and supply managed sectors. We will not trade off the interests of one for another.
Canada will continue the dialogue as long as necessary in order to reach a satisfactory conclusion. It has been made very clear to the United States that if it proceeds with recent threats regarding unilateral actions Canada will have no choice but to respond in kind. We are fully prepared to follow through in this area.
I would like to now turn to marketing. This government is committed to achieving the full potential of the Canadian agri-food sector by developing new markets and maintaining existing ones. To help the sector take advantage of new trade opportunities the government has created a new branch of Agriculture and Agri-food Canada, market and industry services. This new branch has offices in all provinces and will work with industry to increase its share of both domestic and international markets. It is through increasing the sector's ability to meet customer demands that we will be achieving our goal of providing financial security for Canadian farm families and jobs for the Canadian agri-food sector.
In Essex County, my home county, we can grow any product grown in the world. Farmers in my area in conjunction with the Windsor-Essex Development Commission have taken their own steps to prepare a marketing plan for the future. They started by conducting a comprehensive survey to identify those areas in which they can excel. Their goal is to identify markets and to find areas where we can substitute imported product for domestic product.
For example, one of the findings of the commission was although in my region there are five wineries, 60 per cent of the grape juice concentrate is imported from outside of the region from areas such as Chile, Europe and California. Those varieties of grapes could be grown in Essex County and we could substitute local product for imported product.
The survey also found that there is a need to identify market niches and corresponding products that local producers can add value to before export. Both of these ideas tie in with two items the minister spoke of this morning.
The minister of agriculture told the House that we must listen carefully to what the market is saying and not just try to sell what we produce now but produce what the market wants to buy. To that end the federal government has 55 trade commissioners and commercial officers working on agri-food trade development in more than 150 foreign markets. This includes 18 agri-food specialists.
To further assist us at home an agri-food industry council will be established later this year to advise on processes to improve Canada's market strengths, promote economic growth and create jobs.
The minister also spoke this morning of his role in rural renewal. It is clear, as a survey in my area found, that it is not good enough just to export raw product but we must export further processed products where the value is added in Canada. It is through such further processing that we can renew our rural areas. This will create jobs in these areas by keeping more dollars circulating within our communities as well as bring greater amounts of money into Canada.
Agriculture and Agri-Food Canada is also working in co-operation with other federal departments and provinces to establish a single window marketing service for Canadian industry. A single window service will provide access to programs such as the agri-food industry marketing strategy program which helps agri-food associations develop and implement marketing plans, or the new getting ready to go global program which provides cost shared assistance to food and beverage processors to develop new strategies and initiatives.
In addition to easing restrictive barriers through trade agreements and providing market service and information to industry, the government is also constantly seeking out new markets and working to maintain and improve existing markets. This government is also looking to Asia for new markets and opportunities.
A concrete example of this is the minister's recent two week trade mission to the Asia Pacific. Accompanied by the Governor General, the minister headed a delegation that included 15 Canadian farm leaders and agribusiness officials.
Canada has some of the most productive land in the world. The article by Thomas Homer Dixon which I referred to earlier warns that a world food crisis is pending. A recent report of the International Food Policy Research Institute notes that grain production per capita has been flat since 1980. Canada has a responsibility to ensure that we protect our land so we can help feed a hungry world. The best way to do that is to protect our farmers. In doing so we will protect ourselves.
In conclusion, if one looks at the situation in the former Yugoslavia and if one asks the people there what they wanted more than anything, I believe they would ask for the two things we have in great abundance in Canada, bread and peace. The power expressed in the idea of bread and peace is fundamental. It was a promise of bread and peace that allowed the Bolsheviks to overtake Russia in 1917.
It is our abundance of bread and peace that underpinned our economic prosperity in the past and we must never forget its importance to our future.
Now we must move forward to implement an agricultural policy that ensures our future prosperity.
Supply May 3rd, 1994
Mr. Speaker, I rise today to speak about important issues relating to this motion, two issues that are currently eroding the very fabric of Canadian society. The issues are the underground economy and smuggling.
They are issues that are eroding fairness and equity in this country. The underground economy and smuggling are national problems. They are complex problems without simple answers or simple solutions and they are wearing away the respect that Canadians have for law and for the fairness of our tax system.
There are some in our society who feel that evading taxes and smuggling goods are acceptable activities. These people believe that no one is hurt. The fact is people do get hurt.
Underground activity and smuggling are not victimless crimes. They hurt the law-abiding majority of Canadians who obey the law. They are putting honest business men and women out of business. Legitimate business is forced to operate against competition that is not contributing its fair share to the economy.
Honest companies have trouble being competitive both at home and abroad and are forced to charge higher prices to compensate for their own honesty. Jobs are lost. The deficit grows and honest taxpayers carry an unfair load. The playing field is not level.
The greater the illegal activity, the less tax revenue available to governments for essential services and social economic programs. Governments have less revenue to maintain the current high quality of our health care system and our social safety net.
As a result all government programs, including pensions, education, development of the infrastructure, will in due course be at risk.
In 1993 smuggling cost the federal treasury over $1 billion in lost revenue. It cost provincial treasuries another $1 billion. Depending on the estimate, the underground economy ranges from 2.5 per cent to 3 per cent of GDP to over 20 per cent. This means that $20 billion to $140 billion is going untaxed each year. That is billions of tax dollars that the federal and provincial governments do not have to reduce the deficit and finance health, employment and social services.
Because of underground activity it becomes difficult if not almost impossible for governments to meet Canadians' demands for economic growth, deficit reduction and meaningful jobs.
It is clear to me that those who enjoy society's benefits while refusing to contribute to its maintenance are taking advantage of others. They are taking advantage of their honest friends and neighbours. These people whether they realize it or not are expecting others to pay their way. They are expecting their friends and neighbours to pay for the general services they enjoy, including roads, hospitals, schools, fire and police services, while they improve their own personal financial situations. To be extremely blunt, they are freeloaders.
We cannot allow this kind of selfishness to continue. The integrity and the future of our tax system depends on bringing
these people back into the legitimate economy. Canadians have to know that everyone is paying his or her fair share. Canadians need to have confidence and trust in government and in the way their governments handle their money.
As the Minister of National Revenue has publicly stated, tax evasion is not a game. It is a serious issue with serious consequences. It burdens honest taxpayers and hurts businesses throughout the country through unfair competition. While everyone wants the benefit of lower taxes, it must be achieved in line with the law and not by breaking it.
We want tax evaders to voluntarily rejoin the legitimate economy. However we must also continue to send the message that if they continue to deliberately evade taxes we will do all we can to identify and convict them.
I appreciate the opportunity the parties opposite have provided to send this message again today. Tax evaders and smugglers should know that we intend to put a halt to what they are doing. I also appreciate the opportunity to send a strong and clear message to honest Canadians. The law-abiding majority of Canadians need to know that we recognize the fact that they are carrying an unfair share of the burden because of tax evaders and that we are taking action to lift it.
The opposition asked that we sit down with the provinces and with ordinary Canadians to consult on these issues. That is something we do all the time, every single day.
For example, the government recently joined forces with the province of Quebec to combat the underground economy, tax evasion and smuggling, and to improve the way we are using the resources allocated to addressing these issues. Under the new arrangement Revenue Canada and Revenue Quebec have strengthened their relationship in all areas of enforcement with the goal of identifying cases of fraud, non-filers, non-registrants, to sharing access to electronic audit selection systems, co-ordinating audit investigation and collection activities, sharing the results of enforcement measures, sharing the results of research into the causes and symptoms of tax evasion and non-compliance with tax law.
Additional measures under this arrangement include developing complementary audit strategies, putting together joint audit teams to conduct joint audits and investigations, and exchanging the results of these activities.
Furthermore, the government is working closely with the other provinces on these issues as well. Together these measures will allow us to better target our audit activities and improve the ability of both levels of government to co-ordinate their investigation and collection programs. It will also further strengthen the initiatives to combat non-compliance that the Minister of National Revenue announced on November 24, 1993.
Under these latter initiatives Revenue Canada set up special audit teams to focus on business sectors that demonstrate high levels of non-compliance. Targeted sectors include the construction, jewellery, hospitality, home renovations, car repairs and other service sectors.
Revenue Canada also reassigned more resources to auditing, increased the number of joint GST-income tax audits that it conducts and began cross referencing the GST and income tax data bases in order to improve the identification of those not reporting income.
Between 1991-92 and 1992-93 the department added 245 income tax auditors to its field operations, increased the number of income tax audits by 10,000 and raised $200 million in additional taxes. In addition, the amount of corporate income tax collected per auditor rose approximately 280 per cent between 1985-86 and 1993-94.
In short, we have and we are continuing to take action to ensure that the majority of Canadians do not suffer because of those who purposely evade and cheat. We simply cannot allow a minority of individuals to avoid the law.
Everyone must pay their fair share, no more, no less. We owe it to the law-abiding majority of our citizens to ensure that they no longer have to shoulder an unfair burden. It is unacceptable that others who refused to meet their tax obligations can still take advantage of the same services and benefits.
We must continue to enforce the law to its fullest extent to ensure fairness to honest taxpayers. We must be prepared to take all necessary steps to weed out those participating in smuggling and tax evasion. If we are going to maintain the integrity and fairness of our tax system we must send a strong message that participating in the underground economy and engaging in smuggling activity will be a very risky and costly decision.