Tony Valeri

[Steel Industry, September 27th, 2001]

Mr. Speaker, I rise today on the subject of the Canadian steel sector. Last Wednesday I had the privilege to address the International Trade Commission in Washington which began a section 201 global safeguard investigation on steel. As chair of the parliamentary steel caucus my testimony illustrated the challenges the sector faces in both Canada and the United States.

My message was clear. We have an integrated North American steel sector and Canada should not be included in any trade remedy. I publicly thank my U.S. counterpart who joins us in Ottawa today, Congressman Phil English, chair of the congressional steel caucus, for his support on the issue.

Canada also found support with the United Steelworkers of America and the American Iron and Steel Institute. The FTA and NAFTA have accomplished their goal of creating an integrated steel market. Canada-U.S. steel trade reflects the dynamic and overall balance of this integrated market. It is in our mutual interest and to our mutual benefit that it not be impaired.

[The Environment, June 13th, 2001]

Mr. Speaker, the delay of the Red Hill Creek expressway project is an ongoing concern for me as the federal representative for Stoney Creek.

The project has been subjected to rigorous scrutiny and numerous assessments over the last 35 years, yet remains at an impasse currently due to the federal government's decision to appeal a lower court ruling. This recent ruling confirmed that the Red Hill Creek project was a unique situation.

It was started and irrevocable decisions had been taken prior to the CEAA taking effect. I was disappointed by the government's decision to appeal, as it was my belief that the ruling was focused on the Red Hill project.

Therefore, given that Bill C-19 will be back before the House in the fall, and taking into consideration the desire of both the federal government and the city of Hamilton to expedite the process, I will be proposing an amendment limiting the application of the Canadian Environmental Assessment Act and specifically exempting the Red Hill Creek expressway project.

I ask all colleagues, and specifically my local colleagues, to support this amendment when it comes before the House and to ensure that this necessary project be completed without further delay.

[North American Free Trade Agreement, June 4th, 2001]

Mr. Speaker, recently I had the pleasure of attending, along with my colleague from Haldimand—Norfolk—Brant, the first ever joint meeting of NAFTA legislators to discuss North American steel issues.

As NAFTA legislators we agree that a global steel crisis whose roots lie outside North America has created an unprecedented situation of global steel overcapacity and market distortions. NAFTA governments must address these issues for effective and comprehensive steel policies.

That being said, in Canada and specifically in my city of Hamilton we have two very innovative and technologically advanced steel companies, Dofasco and Stelco, which are well positioned to reap economic awards in a fair trade environment.

As legislators we pledge to continue to work closely together. Our first meeting was a good start but we must continue to push for fair trade in steel.

We must ensure the effectiveness of trade laws and trade law enforcement in North America and we need to address world steel overcapacity and market distorting practices through the exploration of multilateral solutions.

Canada must continue to be a leader in these negotiations on the steel industry and vigorously defend the best interests of our domestic producers.

[Supply, May 31st, 2001]

Mr. Speaker, I just could not let the member's comment go by. To use his word, fabrication is the topic of the day. The fact that we are here debating this issue is, in a lot of people's minds, a fabrication.

From what I have heard to date, the Bloc is engaged in some phenomenal gymnastics. If the figure I provided earlier is not enough, perhaps the hon. member would want to get up and challenge the fact that Quebec receives 26% of the infrastructure dollars and 50% of the technology partnership fund which are actual dollars that flow directly into the province of Quebec.

Let us not dwell on throwing these numbers back and forth but let us recognize that there is a role for the federal government. The role is to maintain a united country that works for the best interests of all Canadians. That is something I do not believe the hon. member has with respect to his interest in being in this House.

[Supply, May 31st, 2001]

Mr. Speaker, I hesitate to use the word hypocritical. It is not my word. It was used by the hon. member across the way. What I find somewhat hypocritical is the fact that the Bloc is now recognizing tax points. This is great news.

I would inform the hon. member that when he is talking about the value of tax points with respect to health care, the value of the contribution by the federal government is 30 cents and not 14 cents.

I recognize the hon. member's comments about some of the other pressures that are on the health care system with respect to the change in demographics. The hon. member should recognize some of the other transfers that are actually made to the province of Quebec, such as 32% of the health research funds. Health care research is critically important to ensure a sustainable health care system.

While I respect the fact that the member can stand up in the House and engage in the debate, he should do so by recognizing the facts. The facts are that the contribution to Quebec by the federal government is substantially larger than the hon. member is prepared to recognize. I ask the hon. member to recognize that fact.

[Supply, May 31st, 2001]

Mr. Speaker, I listened intently to my hon. colleague's comments. Earlier today in the debate I made the comment that I do not suspect that there is a lot of consensus or a consensus at all among provinces on this issue with respect to the movement to tax points versus cash transfers. I think it is fair to say. I know the hon. members from the Atlantic provinces did.

Certainly analysis has shown that a conversion to tax points for the smaller provinces would in fact be harmful given their smaller tax base. I am trying to reconcile this in my mind. I am trying to understand if the member, coming from the Atlantic provinces and knowing that the Conservative Party is supportive of eliminating cash transfers and going straight to tax points, much like our colleagues from the Bloc, has had any dialogue at all with his provincial premiers with respect to eliminating the cash portion of the transfers and going to tax points completely.

As well, I am a little concerned about and am trying to understand some of the inconsistency, perhaps, in the thinking on tax points versus the equalization payments, where equalization payments are a transfer of cash and there is a moving to tax points on the straight transfers. There is a bit of inconsistency in the thinking. I would like to hear from the hon. member on that point.

[Supply, May 31st, 2001]

Madam Speaker, I hope the hon. member across the way does not disagree with what I am about to say. He acknowledged that tax points continue to grow and will continue to grow. However it is important to recognize, and I hear this from my constituents on a consistent basis, that Canadians want to see the national government play a role in national programs.

The province of British Columbia wanted to impose a residency requirement for the collection of social assistance. The only reason the decision was reversed was that the national government would have held back a cash transfer which would have imposed and reflected what Canadians were saying. They want national programs which, if not exactly the same from province to province, at least adhere to specific criteria to some extent like the health care program and social assistance programs.

Why is there a cash portion in our transfers? It is to ensure that national standards or a national approach to these programs is clearly evident. We have seen that with respect to social assistance and we want to see it with respect to health care.

[Supply, May 31st, 2001]

Madam Speaker, I am always interested to hear from my hon. colleague along the way. I had the opportunity to spend a bit more time with him when I was much more involved as a parliamentary secretary with respect to finance issues and the finance committee. His enthusiasm for his perspective has not diminished at all.

I still find it somewhat ironic that perhaps he was not listening earlier this morning when two members of his party were in debate and were talking about the participation of or the expenditure made by the national government with respect to health care in his province. I stand to be corrected, but I certainly understood the member to be suggesting that we were only participating to the tune of some 14 cents per dollar. If we calculate the cash transfer and include the tax points it is closer to 30 cents per dollar.

The hon. member might want to stand in his place and say that when members of his party first got here they acknowledged the tax points and the value of tax points. However when putting forward their position they continue in their rhetoric and continue to ignore the value of tax points and only speak about the cash portion.

If we take the position put forward by the hon. member, and this occurred a number of years ago, we must ignore the room that was ceded to the provinces with respect to tax points. I am not sure whether the hon. member is suggesting that we were to freeze the value of tax points back then. If we look at the value of those tax points today and the room that was ceded to the provinces, they are worth six times more today than in 1977. They were worth $2.7 billion then and today they are worth $15.7 billion.

We cannot have it both ways. While we acknowledge that the tax room was ceded to the provinces at that time, we cannot ignore the fact that those tax points were ceded by a national government. When we talk about transfers to provinces we must continue to look at the whole picture, and the whole picture involves the transfer of cash and the transfer of points.

When I meet with my constituents, and I am sure many members across the way meet with theirs, they are pressing the national government to ensure that it maintains some type of system of equality across Canada. Cash transfers are the way that is done. That is the way we uphold Canadian values and, for instance, the Canada Health Act. Equalization is the way we attempt to maintain equality of services for all Canadians across the country when some provinces are more prosperous than others.

We understand and accept that provinces have funding challenges, but it is somewhat irresponsible to suggest that the national government has played no role in trying to assist provinces. We must define the way we participate in that partnership. That is quite clear.

We help fund health care and post-secondary education and we do so by tax points and cash. I ask the hon. member to not only recognize that tax points were ceded back then but to acknowledge that tax points play a role in transfers to the provinces.

[Supply, May 31st, 2001]

Madam Speaker, it is a pleasure to rise in the House this morning to speak on the Bloc motion, although I speak on it with some surprise. We have the Bloc asking for a first ministers conference to discuss the reapportioning of the tax base among the federal-provincial governments through the transfer of tax points. I am also surprised by the assertion of the Bloc that there is an imbalance between the provincial governments, or in this instance between Quebec and the national government.

As I listened to a couple of the speeches a few moments ago, there was also a substantial amount of rhetoric with respect to what the government was doing with the surplus and how we were managing our approach.

From the outset, I disagree with the statements made by the Bloc members that the government was not taking a balanced approach to its financing. When we look what we did with our tax file and our reinvestment in health care and post-secondary education, along with the debt repayment, it clearly reflects what Canadians have said to the national government. In fact they have said it to the finance committee.

I also found it quite humorous that a member across the way talked about how we were not consulting Canadians. If we look at the prebudget consultation process that was put in place when we took office, I believe it was more transparent and more open than any prebudget consultation. It was probably the most transparent approach to building budgets in the history of the country.

There have been a couple of statements already made by the Bloc that I have some difficulty with and I will address them as I continue my discussion this morning.

The point I would like to make at the outset is that while the Bloc has put this motion in front of the Chamber and has asked members to consider the idea of calling together first ministers to discuss the issue, first ministers meet often. This is an issue could be added to an agenda for discussion, but I find it outrageous that the Bloc would put forth a motion to discuss tax points, when according to the Bloc it does not mean anything. Therefore, I am a bit confused when I try to comprehend why it would need more tax points.

I would like to illustrate that point by the fact that since I have been in the House, dating back to 1993, and in the various debates which have taken place in the House, the Bloc has never acknowledged the value of tax points. That was said earlier by the hon. member across the way when talking about the federal government's contribution to health care in the province of Quebec. Just to clarify the record about health care and the value of tax points and cash, it is 30 cents of every dollar rather than the 14 cents as the hon. member said.

Again, the Bloc members have made a statement that they want first ministers to get together to discuss the issue of more tax points for the provinces, yet at the same time they never acknowledged the value of tax points. So I have some difficulty with that position. It is quite a contradiction on their part.

Also, there is no consensus among provinces on this issue. Unlike Quebec, many provinces in this federation would prefer additional cash funding instead of additional tax points. We would have to also acknowledge that the change the hon. members across the way are suggesting would lead to some inequities among provinces as well.

Let me point to an example where tax points are worth more in prosperous provinces than in less prosperous ones. One personal income tax point is worth $35 per capita in Ontario but only $17 in Newfoundland in the year 2000.

The cash component of the CHST ensures that all provinces get the same amount of funding per capita. Also, and this may be a point that the hon. member from the Bloc has great difficulty with, the cash transfers also enable the federal government to uphold national values. I point to the principles of the Canada Health Act and the prohibition on the minimum periods of provincial residency to receive social assistance. We had a situation like that recently where the cash transfers actually acted as a lever to ensure some upholding of national values.

The other point that the members across the way made was the issue of fiscal imbalance between the federal government and the provinces.

If we look at the facts, there is no fiscal imbalance between the federal and provincial governments. The majority of provinces, 7 out of 10, had balanced budgets in 2000-01 and 8 out of 10 provinces are projecting surpluses for the year 2001-02. The fact that provinces can balance their budgets and reduce taxes means that they have sufficient resources at their disposal. I should also point out that all provinces have reduced taxes since 1995.

I also have some difficulty with the assertion of the Bloc member that in some way provinces are junior players in the Canadian federation. That is not the case. Provinces are not junior players in the Canadian federation.

They have access to all major tax bases open to the federal government. They levy personal and corporate income taxes as well as sales taxes. They also have unique access to some of the fastest growing revenue sources. While there is some debate about the revenue sources, the provinces nonetheless have access to revenue sources like gaming, liquor and natural resources. When I look at the facts I have to disagree with the hon. member across the way when he talks about the imbalance that exists between the federal and provincial governments.

I would acknowledge, as would any member of the House, that provinces obviously face spending pressures. I hear it every day in my community, as I am sure many members hear it in their communities. The provinces face pressure with respect to health care and education. We all know that those two issues are extremely important to Canadians. Members across the way, particularly those in the Bloc, must acknowledge that the federal government recently announced a 35% increase in cash funding in five years in support of these programs through the Canada health and social transfer.

The Bloc put forward some points this morning with which I would agree. There are spending pressures in the provinces with respect to health care and education. It is incumbent upon the Bloc to recognize that the national government has played a role in helping to ease those pressures and to reflect what Canadians are telling federal members of parliament, for example that health care and education are priorities, so that the national government responds to those issues.

It is also incumbent upon Bloc members to recognize the value of tax points. Perhaps they are doing that now. Hopefully later today those members will rise to acknowledge the value of tax points. Up to this debate Bloc members have consistently ignored tax points and have said that they have no value. Yet today they are asking for more tax points and for a first ministers meeting to attempt to accomplish that.

It is important to point out the financial picture we are facing when we talk about the relationship between the federal government and the provinces. Compared to the provinces, the national government faces a much higher debt burden. In fact federal spending on interest payments is 25 cents per dollar of revenue and provincial spending on interest payments is only 12 cents per dollar.

We certainly face some challenges as a national government. We are prepared to deal with them. We are attempting to pay down the debt at the same time. We have always maintained in the House, since coming to office in 1993, that our approach would be a balanced one. We would not take an extreme approach to governing and working with Canadians.

The hon. member across the way also made the point this morning that the national government was running surpluses at the expense of provincial fiscal stability. I have to disagree with that statement. Our federal priorities are reflected in the recent actions that have been taken, namely the $100 billion in tax reductions to provide savings to Canadians and to spur economic growth. That type of tax plan will help provincial economies to prosper.

Since coming to the House I have consistently stated as a member of parliament that there is a relationship between a reduction in tax and the economy growing. I believe we must maintain a balanced approach. We do not want to jeopardize the very real priorities of Canadians, those being health and education.

There have been substantial increases in transfers to the provinces to support social programs. To date Bloc members have not recognized the value of tax points. I am hoping that today they will stand to recognize the value of tax points and recognize the role the national government plays in reflecting Canadian priorities and in supporting provinces in partnership to address provincial issues, which in many cases are national issues as well.

Tax points are a very important way in which the federal government transfers money to the provinces. My colleagues on this side of the House will be explaining how important they are. It is not the only way in which transfers occur. I would like to spend a few moments telling the House and Canadians about some of the others ways the national government transfers funds to provincial governments. If we want to understand what is happening and if we want to see the whole picture, we have to consider the full range of ways in which the federal government transfers resources to the provinces.

I will focus for a moment on the province of Quebec and make reference to other ways the province of Quebec receives funds from national programs. The province of Quebec receives 26% of federal research dollars, 33% of industrial R and D, 32% of health research funds, 26% of infrastructure dollars, 30% of CFI, 29% of funds allocated for research chairs, and 50% of technology partnership funds.

When we talk about the transfer of funds it is incumbent upon everyone to recognize that the transfer of dollars to provinces occurs in a number of ways, tax points being one. It is refreshing to hear that the Bloc is now recognizing that tax points have value. Cash transfers are another way of transferring money to provinces.

Let us look at the Canada health and social transfer. It is certainly what many Canadians would say is the most important transfer to provinces because of the programs if funds and in turn what those programs mean for families and their communities. Out of that transfer the provinces fund health care, post-secondary education, social assistance, social services and early childhood education.

I should like to present some historical context because it is important to go back in history, as my hon. friends across the way often do, to understand what we are talking about this morning. In 1996 the CHST, a single consolidated transfer, replaced two programs. It replaced the established programs financing which supported health and post-secondary education and the Canada assistance plan which contributed to social assistance.

The CHST transfers money to provinces and territories that helps fund these programs. At the same time, I emphasize, it gives provinces the flexibility to allocate those dollars to their own priorities.

Last September, some eight months ago, the Prime Minister and first ministers from across the country reached an agreement that included a strengthening of the financial commitment to the CHST. It is important to note as well that the first ministers gave Canadians their commitment to strengthen and renew health care services through partnership and collaboration, with the federal government being an equal partner in this renewal.

That commitment set out a five year stable funding plan which would mean a transferring of an additional $21.1 billion through the CHST. That agreement had an immediate impact. In 2001-02 the provinces and territories will receive $18.3 billion in cash. That will significantly help to accommodate some of the increasing pressures outlined this morning with respect to the many CHST funded programs. In fact that number will rise steadily to $21 billion by 2005-06.

The funding commitment was also accompanied by a renewed commitment to the Canadian health care system which was the latest in a series of important CHST related investments on the part of the federal government.

I should like to take a minute to think about some of the measures the federal government has announced in the last few years. In 1998 we raised the annual CHST cash floor to $12.5 billion. The 1999 budget announced an $11.5 billion cash investment in health. The 2000 budget provided a further $2.5 billion in cash. In the last two years alone the federal government announced CHST cash transfers of over $25 billion.

As I said at the outset, our debate today has to consider the whole picture when we talk about transfers to the provinces. Certainly the CHST may be the most important transfer to Canadians, but when we look at the way dollars are transferred to provinces we would be hard pressed to think of a transfer more typically Canadian than equalization.

In terms of policy, equalization means that the federal government helps to reduce disparities among provinces and regions and helps to ensure that all Canadians, regardless of where they live, have access to quality services.

In closing, although I could probably speak to this issue for the entire day, it is fair to say I have some difficulty in understanding the rationale behind the Bloc proposing the motion. Back in 1993-94 the Bloc never recognized the value of tax points. Now it is asking for more tax points. Its members talk about the fiscal imbalance between the federal government and the provinces. That is clearly false. Since 1993 we have been very open and transparent with respect to surplus and with respect to building budgets.

I cannot believe for one moment that the Bloc has any real interest in pursuing the debate and dealing with the facts, given that its only purpose is to continue to bring forward statements that are questionable in some cases. I certainly respect the opinion of my hon. colleagues across the way, but I respectfully disagree with a number of points they made this morning.

[Sales Tax And Excise Tax Amendments Act, 2001, April 23rd, 2001]

Mr. Speaker, I welcome the opportunity to speak today at third reading of Bill C-13, the Sales Tax and Excise Tax Amendments Act, 2001.

The bill would reaffirm the government's commitment to making our tax system simpler and fairer for individuals and for Canadian business. The principal purpose of the bill is to implement measures relating to the goods and services tax and harmonized sales tax that were announced in the 2000 budget, as well as the additional sales tax measures proposed in the notice of ways and means motion tabled in parliament on October 4, 2000.

The measures were aimed at improving the operation of the GST-HST in the affected areas and ensuring that the legislation accords with the policy intent. The bill would also implement two amendments to the Excise Tax Act relating to excise taxes on specific products.

I would like to begin by outlining the measures contained in the bill that were proposed in budget 2000.

First, the GST-HST is designed to ensure that Canadian businesses and products are competitive in the export markets. A number of measures in Bill C-13 are aimed at achieving that specific objective. Specifically, these measures relate to the GST-HST treatment of export distribution activities.

The bill would implement an initiative referred to as the export distribution centre program. It is an initiative that addresses a cashflow issue faced by limited value added export oriented businesses. It would also help ensure that the GST-HST does not present an impediment to the establishment of North American distribution centres in Canada.

I will speak to the opportunities provided by the establishment of EDCs in a moment.

Bill C-13 contains a measure that would ensure that the GST-HST does not make Canadian suppliers of warranty repair or replacement services less competitive relative to foreign suppliers when in fact these services are provided to non-residents. It also expands on an existing program known as the exporters of processing services program. Refinements to the program would ensure that the GST-HST does not impose prohibitive cashflow costs for businesses that provide storage or distribution services for non-residents in respect of goods that are for export.

Another proposal in the bill relates to the cross-border transactions, in particular the sale of railway rolling stock to non-resident businesses. Bill C-13 proposes an amendment to ensure that the use of railway rolling stock to ship goods out of the country in the course of the exportation of the rolling stock itself would not disqualify it from tax-free treatment.

Bill C-13 introduces the new residential rental property rebate, another important sales tax initiative. The measure stems from the 2000 budget and would be of significant benefit to builders and purchasers of new residential rental accommodation. It would reduce the effective GST rate on newly constructed rental property by 2.5% which is the same federal tax rate reduction that applies to purchasers of new, owner occupied homes under the existing new housing rebate program.

Bill C-13 builds on the government's commitment to continue to work on improving health care and education in Canada. In the area of health care, the bill proposes an amendment to continue in force an existing GST-HST exemption for speech therapy services that are billed by individual practitioners but are not covered by applicable provincial health care plans.

With respect to education, Bill C-13 contains a measure which would ensure that vocational training provided in different provinces receives the same GST-HST treatment regardless of the regulatory regime that exists in each province with respect to vocational schools.

The government recognizes, as do all members of the House, the important role that charities play in helping Canadians and in enriching our communities. The bill proposes amendments to ensure that the GST-HST legislation properly reflects the government's intended policy of generally exempting from sales tax the rental of real property and related goods by charities.

The legislation proposes a number of clarifying amendments to ensure that there could be no doubt as to the application of these provisions for both future and past transactions, for example the issue of excise tax on automobile air conditioners.

Bill C-13 reflects a number of improvements to the administration of the tax system, which is in keeping with the spirit of the government online initiative recently announced by the Prime Minister. There is a movement within government and in the public to ensure that it meets its target of getting on line in the very near future.

I would like to spend a few moments on a part of the bill which has not received the attention it should have received to date. I would like to raise the awareness of the creation of export distribution centres by explaining what they mean and their potential.

The creation of export distribution centres enhances Canada's ability to conduct export distribution activity. The program does not create any artificial advantages for any Canadian community. Instead, it unleashes their inherent geographic advantage. If the 49th parallel did not exist, in other words if the entire continent was Canada, our communities would be host to a significantly greater number of distribution centres for goods produced abroad because of our geographic advantage. That this is not the case today is due to legislative and regulatory barriers.

When we look at the U.S. foreign trade zone program, we find that an overwhelming number of such zones are located in the northern tier along the Canadian border. That is because the northern part of our continent provides the natural entry point gateways to the NAFTA economy.

The EDC program which would be created as a result of Bill C-13 would allow communities in every part of Canada to participate in the fast growing distribution and logistics industry. It is also important to note that the program is not zone specific; it would be market driven. Unlike the United States, which geographically decides where a trade zone is to locate, the Canadian export distribution centres would be market driven.

It is a program that is universal. Any location in Canada and any business could seek to participate. Unlike programs in the U.S. and elsewhere, it does not create any unique privileges for specific locations. I am already aware, as are many close to this issue, of groups in Hamilton, Montreal, Vancouver, Gander and Regina that are pursuing the EDC opportunity. It is truly a coast to coast opportunity.

Many members of these groups have told us that the opportunity to engage in this kind of activity has been there for some time but it has been hindered by existing regulations. Bill C-13 removes this impediment for local community development.

In my riding of Stoney Creek the legislation would allow us to make full use of the John C. Munro Hamilton International Airport as an economic development engine. The airport is well placed and well prepared to attract logistics and distribution companies.

Tony Battaglia, president of TradePort International, the firm entrusted with managing the Hamilton airport, commented that the airport would be able to compete with similar facilities in the United States. The proposed changes in Bill C-13 would provide the necessary tools for Canadian facilities that move goods by air, road, water and rail. These tools would allow such Canadian firms to compete and attract global commerce.

What does that mean in terms of job creation? Professor Michael Tretheway of the University of British Columbia's transportation and logistics program has estimated that within 10 years Canada will be able to create up to 50,000 jobs in the distribution sector. Job creation can only be enabled if we can offer distribution firms in Canada the same advantages that locations in the United States offer to their distributors.

For example, existing programs in Canada allow the storage and re-export of goods in a duty and tax free environment. However they do not allow the addition of Canadian value to the goods being re-exported. The situation is paradoxical. On the one hand, the current program encourages distribution centre locations in Canada but, on the other hand, it discourages the adding of value and the job growth that results from it.

The legislation seeks to redress the imbalance by providing a program that allows the creation of distribution centres in Canada in a duty and tax free environment where value could be added when goods are intended for distribution into the broader NAFTA marketplace.

During the consultation period a concern was brought forward by a number of individuals that the legislation would enable growth in the distribution sector at the expense of Canada's domestic manufacturers. The program has strict limits so that it cannot be used for full manufacturing. Furthermore, 90% of the goods must be re-exported. The program is intended to attract distribution centres for goods already being manufactured overseas and exported to the U.S. and broader NAFTA markets. There is no displacement of domestic manufacturers.

The proposed legislation is strongly supported by Canada's airports. The Canadian Airports Council has been a very strong supporter of the EDC program. It sees an opportunity to develop its airport lands for the benefit of its communities.

The EDC program would allow the airports council to lever its air service and ground transportation networks and build the flow of goods and jobs between Asia and Europe on the one hand and the U.S. and NAFTA economies on the other. Companies in Europe and Asia that wanted access to NAFTA markets were not looking to Canada for foreign trade zone possibilities. However, because of Bill C-13, they now can.

The measures in Bill C-13 that I have outlined today propose to refine, streamline and clarify the application of our tax system. The bill would provide an opportunity for economic development specifically through the creation of export distribution centres. At the same time, Bill C-13 reflects the government's commitment to ensure our tax system is fair. I urge all hon. members to pass the measures quickly.