House of Commons photoWon his last election, in 2006, with 55% of the vote.
Employment Insurance December 5th, 2001
Mr. Speaker, when we took office the rates were at $3.07 heading to $3.30. We have cut them in every single budget since then and they are now down to a low of $2.20. That is saving the taxpayers $6.8 billion a year.
If the member wants to talk about tax cuts, let us look at what we have done for the workers: record tax cuts of $100 billion and the tax cuts which have gone to workers with families, 35%. That is how we are helping the workers.
Employment Insurance December 5th, 2001
Mr. Speaker, as everyone knows, the Standing Committee on Finance has suggested a program to review what can be done about contribution rates.
The EI fund is not a shoebox and, as the Prime Minister said, what we have done is put it into the consolidated fund on the advice of the Auditor General of Canada.
Ways and Means December 4th, 2001
Mr. Speaker, pursuant to Standing Order 83(1) I wish to table a notice of ways and means motion to introduce an act respecting the taxation of spirits, wine and tobacco and to implement increases in tobacco taxes and changes to the treatment of ships' stores. I am also tabling explanatory notes and draft regulations. I ask that an order of the day be designated for consideration of these important, timely and excellent measures.
Heating Fuel Rebate December 4th, 2001
Mr. Speaker, first, the question dealing with prisoners was corrected last July. Let me admit this: anomalies have been identified and 0.2% of the cheques were anomalous, were not going to the people they should have.
That means that 99.8% of the cheques went to the people who needed them the most. Sure there were anomalies, but it was a darn good program.
Heating Fuel Rebate December 4th, 2001
Mr. Speaker, when we instituted this program we put in place two criteria. First, it had to be targeted to low and modest income Canadians who were going to need it the most, and second, it had to be timely. There was no point in people getting a cheque in July when their heating costs had spiked so high in January. That is why we chose the most cost effective program for doing this, one which had the best chance of delivering that help and that relief to low and modest income Canadians.
Supply December 4th, 2001
Mr. Speaker, in terms of the employment insurance program we have made major changes to it.
One of the most important and fundamental changes we made was that people who were working for shorter periods of time could accumulate employment insurance benefits. That is something which is going to help ease the burden for those who may lose their jobs at this particular time.
In terms of actual job losses, I am not taking credit for this but looking realistically at what has happened, one of the most exciting things that has happened since we started to put this nation's finances in order has been the huge increase in the number of jobs. Over two million new jobs have been created by the private sector here in Canada. This is critical because the best social program is a job.
The member is right in that we have seen the rates go up slightly from a low of 6.8%. The increased benefits that are available under the EI program are helpful to those people who have lost their jobs. Whenever anyone loses a job, it is the most difficult thing that anyone anywhere has to face because it does have human consequences.
The member mentioned the EI premiums. When we took office in 1993, the premiums were at $3.07 and were heading toward $3.30. They have come down every year since then, saving employers and contributors to that fund a total of $6.8 billion a year. I do not take a back seat to anyone when it comes to what our government has done to cut employment insurance premiums.
Supply December 4th, 2001
Mr. Speaker, when we took office in 1993, program spending was $120 billion. That is all of the government spending, apart from interest on the debt. At the end of last year, our program spending was at $119.3 billion, which is $700 million lower than when we took office. This is part of the great economic success that we have had in managing our economy.
Supply December 4th, 2001
Mr. Speaker, I wish to share my time with the member for Ancaster--Dundas--Flamborough--Aldershot which is probably the longest name for a riding I have ever heard.
Opposition parties in the debate today are suggesting a number of measures which we should put in our budget to be delivered in the House next week. Needless to say, it would not be a wise move on my part to try to scoop the Minister of Finance, but let me say that we have initiated one of the most consultative processes for budget making that the world has ever seen by having the finance committee of the House of Commons travel to every corner of Canada to listen to Canadians in their home towns and here in Ottawa. By doing this, the making of a budget is no longer restricted to only those who have privileged access to the inner sanctums. This is a great innovation and one which does make for democratic, productive budget making.
If what we have seen in the past is any guide as to what might be in next Monday's budget, perhaps we could look at what we have done. We have to look at where we are today in the context of a global economic slowdown and that slowdown was exacerbated by the tragic events of September 11.
We know we are in an economic downturn, but most economists are predicting that we will come out of this downturn next year, perhaps in the second half and will have good growth the year following that. We do not like this slowdown but we have had 10 years of good growth and there are economic cycles which hit us. This one unfortunately was exacerbated by the tragic events of September 11.
What measures have we taken in the past that are assisting us through this challenging period? We have managed our economy and our fiscal policy in such a way that we have kept inflationary pressures down and the Bank of Canada has been able to make major cuts in our interest rates, which is very stimulative. Today in spite of these major cuts, we see an inflation rate at 1.9%, midway in our monetary band. In addition, since we have been in surplus we have been able to make major tax cuts. In terms of personal income taxes, it is 27% and 35% for families with children.
Looking at what the government has done in terms of corporate taxes, it has made major cuts which, when they are fully implemented combined with the provinces in a couple of years, will give a company in Ontario or Alberta a top corporate tax rate of 30%. I ask members to compare that to the rates in the United States, for example, 36% in Michigan, 40% in New York and 41% in California. That is the type of competitive edge our corporations and entrepreneurs are getting. That is why we have seen profit centers for North America shift to Canada.
In terms of debt, we have been able to go from a high of 71% of GDP down to less than 50% today. We have made major debt paydowns of over $35 billion which have saved the Government of Canada $2.5 billion a year in interest costs alone.
At the same time, we have not been a one track party. We have been able to make major strategic investments in health care, innovation, research and development, and infrastructure. Look at our last infrastructure program of $2 billion mainly for green projects and $600 million of that going toward highway infrastructure, which will leverage to at least three times that when the provinces, municipalities and the private sector participate.
What type of stimulus have we created that is going to see us, and is seeing us, through these challenging times and which will help our economy with the rebound that will surely come next year?
Our tax cuts this year alone amount to a stimulus of over $17 billion. In addition, we have made strategic investments, for example, the Canadian Foundation for Innovation; Genome Canada; the Atlantic investment partnership; increased equalization; increased transfers for health care. Those increases amount to an added $7 billion of stimulus.
Then we look at what our monetary policy has done. The interest rate cuts that we have been able to bring about this year without causing inflation are estimated by the chief economist for Merrill Lynch Canada to have produced savings on consumer debt in Canada of $7 billion this year and to mortgagors in Canada savings of another $4 billion this year. When we look at the total stimulation that we have put into the economy this year, $17 billion in tax cuts, $7 billion in strategic investments, and accepting what Merrill Lynch said, another $11 billion in savings to consumers and to mortgage holders, there is a stimulus of $35 billion, well over 3% of GDP.
How have we done it? We have done it through measures which are sustainable because we are balancing, and have balanced, our budgets. We have done this by a very difficult process of controlling spending.
When we took office our spending was at 16.2% of GDP. At the end of last year it was at 11.3% of GDP. Any new expenditures we have made this year have been mainly in the areas of health care and security measures.
The budget is certainly going to be one of the most difficult the minister has ever had to make. It is much easier to have an economic blueprint when the global economy is expanding and when revenues are going up.The one thing I promise, apart from a very balanced and responsible, fiscally prudent budget, is that it will give a full, fair and realistic accounting. It will clearly spell out the steps we have taken and the steps we will take to ensure that we have a strong, prosperous future.
The tragic events of September 11 challenge all of us, but I assure everyone that the government will rise to those challenges.
Taxation December 3rd, 2001
Mr. Speaker, the cuts we have made to EI amount to $6.8 billion a year. That is very substantial.
The reason we made changes to the Canada pension plan, with the Government of Canada working with every one of the provinces, was to ensure that the pension plan was sustainable in the years to come.
Is the member telling us that he does not want to make it sustainable? Is he telling us that he wants to cut the contributions to make sure that future generations pay for those who are retiring today?
Taxation December 3rd, 2001
Mr. Speaker, ever since we have taken office we have continually cut the EI premiums and this year has been no exception.
Having said that, we have also increased the benefits that have gone to workers. We have as well made sure in terms of payroll taxes that what we are doing is ensuring that we have sustainable pensions for the future. I am sure the member would not want to argue with that.