Mr. Speaker, I join my colleagues in wishing you a Happy New Year. It is great to be back after the recess, and we are back right into it with this tax bill, Bill C-28. Mr. Speaker, I suspect that over the holidays you read this bill carefully just as the rest of us did. It is a very complicated bill but a very important one which sends an interesting signal.
I listened with interest to my friend the Parliamentary Secretary to the Minister of Finance when he made his presentation today on Bill C-28. He began with an interesting comment. He said that Bill C-28 is being introduced today under the umbrella of a prosperous, dynamic and strong economy. I wonder where he has been in the last six or seven weeks. He obviously has not been in Canada but in some other country.
Just today the financial pages talk about how the increasing interest rates will cut off any hint of economic recovery. The papers talk about the widening gap between the rich and the poor in Canada. They point out that 42% of young families today are living in poverty. Think of that. As Parliament resumes its work today, 42% of young families in Canada are starting out their lives in poverty. Two out of five young families start their lives out in poverty. The papers say that 400,000 young people in Canada do not even have jobs period. Many more have two or three crummy part time jobs as they try to make a go of it but there are 400,000 young people without jobs at all.
Today's papers talk about the student debt load. They say that for those students who are in debt, which is now about half of all students, the average debt load at the end of this year will be about $25,000. What a wonderful way to start off in life. You graduate, you seek out a job to begin your career and the folks in the program who are here with us today will know what I am talking about. A $25,000 debt load is a huge albatross. It is like walking around with a big rock on your shoulders the minute you step out into the workforce.
The papers go on to tell us that the unemployment rate is about 9%. This is the 88th consecutive month that the rate has been 9% or worse. The papers talk about the dollar which is at historic lows, a reflection of what other people think of Canada in real terms. They want to get their money out of here and buy American dollars. They look around and say that this does not look too good. Our dollar is at historic lows.
Bankruptcies are now running at just under 10,000 a month. These are bankruptcies, when all else fails and you have to declare bankruptcy. There are 10,000 a month, year after year, month after month.
Then there is this whole merger mania. I noticed that not too many people talked about the merger mania that has taken over. Our two great big banks want to become one monster mega bank. This is going to be helpful to Canadian consumers and the small business entrepreneurs?
When my friendly parliamentary secretary says the economy is strong, I wonder where the hell he has been. He sure has not been in this country. He is obviously talking of some foreign country and I am not sure which one. He is on the finance committee as have been the other speakers.
When the finance committee toured Canada prior to Christmas, we did not hear glory reports from people about the strong economy. We heard stories of misery and of pain. There were people before those very formal hearings with tears running down their faces because they had to describe the kind of torment they were living in trying to raise their families with no jobs and no hope of a job.
We in this place should be embarrassed. All of us should be standing up and saying we are embarrassed that we have allowed the economy of the strongest most dynamic country in the world to end up in this bloody mess. For the minister to say it is great news, that everything is fine reminds me of the worst drunk, the person who suffers from mega alcoholism and tells people time and time again “I do not have drinking problem”. We have some serious problems.
As my leader said the other day, it is sort of like a
Titanic economy. Remember when the old Titanic
went down, two-thirds of all those folks in first class passage got off in lifeboats. They got preferential treatment and they did okay. But two-thirds of the people who were in the steerage compartments were actually locked down below so they could not get to the deck. They drowned. They were not rescued.
It is a
Titanic
economy. Some people are doing very well naturally. I can imagine how Mr. Matthew Barrett of the Bank of Montreal is feeling these days. He has pulled off the con of a lifetime. He has told the Minister of Finance “I do not care, I know you will cave in”. He knows full well that in spite of all the talk the Minister of Finance is doing about being concerned about this and that and we should feel challenged by this, the government will cave in and will give those banks the old nod. After all, it just signed the WTO financial agreement that facilitates this process. It facilitates the merger takeover business.
I want to start off my comments today on Bill C-28 by saying we are not enthusiastic about this legislation. I am not going to stand here and say there is nothing good in this legislation. Some provisions are very helpful to a lot of Canadian families.
For example there are the changes to the RESP to assist families to provide for their children's education. It does reflect the fact that the present government has abandoned much of its traditional support for education. We have been encouraged by some recent comments, but by and large it reflects the fact that the government has backed out of funding universities and colleges and the research facilities across this country, as has been done in the past. We now have simply transferred our debt issue into the hands of those families trying to afford their children's education.
It is easy to solve the debt load, to stand up and say we are almost deficit free, that we have won this war against the deficit when it is simply handed off to students so they have $25,000 in debt. It is handed off to our families, to the jobless, to the provinces so they have to shut down provincial health care systems and so on. It is easy, but have we really solved the thing? That is the question. RESP is a good step but it reflects the government's abandonment of education to a certain extent.
Increasing the encouragement for charitable giving is a good step. But let us also acknowledge the fact that again the government has essentially abandoned huge sectors of the economy that traditionally have looked to the federal government for leadership and for support. I am thinking particularly of the cultural industry or the granting agencies like the Medical Research Council. They have traditionally expected that Canada would provide global leadership on things like supporting pure research in those areas. This has not only a job benefit but it encourages those people who are in those fields to stay in Canada and work for future generations.
The rules relating to transfer of pricing are long overdue and are a positive step. The tax loss transfers from crown corporations will be helpful in building more fairness into the system. The minor support for the folks who are disabled is a good step.
The real irritant in the legislation is the CHST mentioned by the parliamentary secretary, the transfer payments for health care and education. Somehow in his convoluted mumbo-jumbo he tried to give the impression that the government was actually increasing spending and support in the areas of education and health care.
That is a bit like going down the street and being mugged. The robber sticks you up and says “Hand over your money”. You hand over $100 which is all you have in your wallet. Then he asks where you are from and you say “Alberta”. He says “Shucks, you have to get back there. Here is 10 bucks back for your bus fare”. You are supposed to be delighted that the robber gave you 10 bucks after stealing 100 from you.
That is what these folks have done. They have taken billions and billions and billions of dollars out of the transfers to provinces for health care and education and now say they will establish a floor of $12.5 billion. Somehow we are supposed to be joyful at the news. It is a bit of a con job, a smokescreen, a magic act that I do not think anyone will believe. I could not believe my hon. friend actually had the courage to say it but he did.
Let us be clear that after years of cutting, cutting and cutting, almost to the point of destroying our a universal health care system, the government is putting on a ceiling. Every cloud has a silver lining. If there is a good side to the issue I suppose it is the fact that the government has at least put a bottom line on cash transfers. We remember the way it was going, that in a few years there would be no cash transfers and the federal government would not have any leverage at all in terms of national standards for health care.
There is an element of encouragement here. At least there will be a bottom line below which we will not go in terms of transfers to the provinces for health care. This would be helpful in the future to allow us to ensure once again that we do not have a patchwork health care system across the country and that health care is the same from coast to coast. Under the present system that would not take place.
The parliamentary secretary said we had to remember that with tax points revenues will grow as the economy grows. The economy will grow stronger in some parts of Canada than it will in others. That means our patchwork quilt health care system will be emphasized. It will be better in some provinces where there will be better access to health care compared to other provinces.
That is not what Canada is all about. That is not what a country is all about. We do not want a different health care system between the provinces and the territories. We have to guard against that.
I quote from someone with whom we are all extremely familiar, Mr. Tom Kent, a senior policy aid to Lester Pearson when he was in opposition and later when he became prime minister. He was really the inspiration and brains behind the federal Liberal Party's shift toward a more active role in social policies in the 1960s. He was one of the major proponents of the health care system that distinguishes our country from the United States and from most countries in the world by having the kind of health care system we have developed over the years.
What did he have to say? Tom Kent made a blistering critique of the Liberal government's betrayal of medicare. It went on and on and on. He accused the federal government of putting medicare at a crucial crossroads by neglecting to properly fund it. The slashing of transfer payments for provincial social programs like medicare from $19.3 billion annually down to now $12.5 billion has placed medicare at a crucial crossroads.
Never before has it been attacked by such a senior and well respected person from Liberal history. He went on at some length. I could quote at some length all the comments he made the other day.
Tom Kent, a person we all respect for his sophistication, knowledge, views and dedication to the country, the health care system and the Liberal Party, publicly criticized the Liberal government of today by saying that what it was doing was absolutely wrong. He said that hopefully this would stimulate a debate which would move the Liberal Party back toward a more social reformist stance. Then he would be very delighted.
Let us get the facts on the table. When the government says that it is restoring funding for health care, we are a long way from what it needs to be. We have to take strong steps in that direction.
I want to comment on the speeches made by the Reform Party members who have spoken on the legislation. It should change its name to the party of surgeons because it loves cuts. It wants to cut even more. I cannot imagine that anyone who has talked to a citizen in the last week would say that we need more cuts to social programs or that we need to cut back even more.