Mr. Speaker, first off, I wanted to wish you, Mr. Speaker, and my colleagues a merry Christmas and a happy New Year on behalf of my constituents.
The people from St. Boniface wish everyone a merry Christmas, a happy New Year and the best of the holiday season.
As the member for St. Boniface, I am pleased to speak on this prebudget consultation initiated by the Minister of Finance. This is something new, it has worked for quite a while now and it yields results.
I met business people in my riding to ask them questions and get their opinions and viewpoints. Groups of advisers, young people, women, adults also keep me informed on such matters. I will share a number of their observations with you and my colleagues this afternoon.
Before I begin, I would perhaps briefly describe the political context we find ourselves in at the moment. In one corner, we have the official opposition, the Bloc Quebecois, which is trying to separate Quebec from Canada. This is their grand mandate, their top priority. In the same corner, however, and this is part of the political context, we have the Reform Party, often described as Darth Vader's party.
It is described as the Darth Vader party, the slash and burn, the fear, the gloom and doom party. I would like to attend one of its Christmas lunches. I expect its members would be talking about what they do in New Zealand. They would be telling their grandchildren that they had better enjoy the turkey on the table as there may not be one later as a result of the debt. It must be quite a get-together.
This is the same party that is lusting for power. It wants power so badly that it is prepared to do virtually anything to get it. I would suggest it is losing. Why? It was in the same corner as the Bloc on the national unity question. It is the first time in the history of Canada that a supposed federalist party has not co-operated with the government. Why? It is quite simple.
Reformers thought that was it. They thought there was no other way to go in terms of their own personal objectives than to try to be seen as a viable party. Therefore they abandoned the people of Canada. That is really very unfortunate.
The finance minister has hit every target he has set and has gone beyond. Have they ever admitted it? No, of course not. Why not? It is because it is a desperate party. The most recent poll shows the Liberals have over 50 per cent popularity in the polls. The Progressive Conservatives are next at 15 per cent. Then the Reform and the Bloc are tied. The Bloc in Quebec has the same percentage of support from Canadians as does the Reform Party. That is why it is a desperate party.
We have talked about new politics. In one article the leader of the third party referred to the Prime Minister as having a screw loose. That is the new politics. Rather than talking about creating jobs, national unity or the deficit and debt, they asked several questions in the House of Commons about the coat of arms because we added a ribbon that enhanced it. Those are the kinds of priorities they have set.
This is the kind of political context within which we find ourselves as the Minister of Finance prepares to bring forth the budget. When the Minister of Human Resources Development brought forth a policy and a meaningful initiative in terms of child care, what did they do? About 10 days ago they thought it was a great idea. Today they tried to score political points and it was not a good idea.
I have a final example of this contexte politique of which I speak. Some 11 members of the Reform Party voted for a veto for British Columbia. The others did not want it for British Columbia. However they did not vote for the veto in the main amendment. That party is having some real difficulties getting its act together.
When I talked to the people in my constituency most of them talked about a lot of taxes. Many felt that they were overtaxed. There is not much surprise there. Virtually everyone believed that a wealthy person could avoid paying his or her fair share and wanted me to bring that to Parliament. Most felt that rich Canadians should not be allowed to pay little or no tax. That comment was made
frequently. Most felt that rich corporations should not be allowed to pay little or no tax. There were many comments about banks, from their perspective, not paying their fair share. If banks are paying their fair share, they had better get out there and do some work because very few people I met thought that was so.
There was little agreement with respect to what was meant by a rich person. I indicated that they felt that rich corporations and rich people should pay their fair share and they indicated perhaps those with an income in the neighbourhood of $55,000. They did not define that with respect to corporations but are in the process of doing so.
There was a unanimous feeling that people earning profits on their investments in Canada could avoid all or some Canadian taxes. They wanted that perception brought to the House of Commons.
Over 75 per cent of the people who responded to my question felt that those who had student loans and were now working but had not paid back the loans should be pursued by every single means available to the government. This was a point which really grated on them. They felt strongly that if someone owes the government money and is in a position to pay it back, then they should.
They were pleased with some of the actions the government has taken with respect to family trusts. They want to make sure that continues, that there is no way for those who have a lot to be shielded from fair taxation and that they contribute to the Canadian economy.
All participants believed that there is a significant black market economy in Canada that should be stamped out. Some people thought it was probably large enough that if those people started to pay taxes according to the rules then we would not need further tax increases and we might be able to have tax decreases and at the same time eliminate the deficit. That is how strongly they felt. I understand this is a contentious issue. I also accept and appreciate that it is poorly quantified and we are not sure of how large it is.
They were concerned as well that elected representatives receive a just remuneration, but that it be just and not overly generous. They feel it is time for everyone to tighten their belts.
Another interesting point is that they wondered whether or not inheritance taxes were something the government should take a look at. Again, I share what they said with the House.
The auditor general has a great deal of credibility. Therefore whenever the auditor general raises any issue with respect to wastage or other similar matters they believe that governments must follow that up very carefully.
I would now like to share with you another point they have often made, the whole issue of the GST.
During the election campaign, the government promised major changes. The people I spoke to clearly indicated that they wanted these changes to be made. Some of them agree with the chartered accountants, who favour a single national sales tax. According to them and to my constituents, there would still be significant advantages. They claim, for example, that Canadian businesses would save at least $400 million a year on regulatory compliance costs. They also maintain that provincial governments would save $100 million a year on administration costs. That is a lot of money.
They mention other benefits as well. They feel that the time has come to implement a national sales tax because, and I quote: "The federal government is committed to replacing the GST; several provincial governments have come out in favour of harmonizing the sales tax so that they can reduce their own costs-the business community, in particular small and medium size businesses, would benefit from a much simpler tax system; and the public wants governments to eliminate overlap and duplication".
This organization made these comments, which are supported, I must add, by my constituents.
I have some final remarks.
My advisers, the people with whom I talked, pointed out that large organizations no longer are involved in growth in terms of employment. They believe that small and medium size businesses create jobs and that therefore they have to be favoured.
They claim that "the system" is promoting job cuts because there is no incentive to keep those who are working. They think that exemptions and tax reductions are required perhaps mostly in the early days of a venture, when setting up a business. They think that incentives-not so much tax incentives as grants, because these are supposedly more practical and easier to manage-are needed.
They add that research and development ventures should be encouraged because they promote the development and production of unique products sold not only in Canada but also abroad. They argue that this activity should be facilitated through tax measures. They would want us to cut through government red tape-too much paperwork, too many forms to fill out. They want us to promote the idea that it is a good thing to create your own job.
They talked about grow bonds and asked: What about mentors for entrepreneurs? Do banks lend enough to small and medium size businesses? They pointed out that in service to entrepreneurs those kinds of programs that are available are not always the most relevant or the best. They asked whether or not cuts in training, if they were to occur, would hurt the Canadian economy. They made the same point with respect to research and development.
They want to make sure that we protect the current successful businesses. They want to make sure that they are able to transfer their businesses to their families without significant loss or difficulty. They point out that the U.S. and other countries are providing great tax breaks to Canadian companies that want to go there.
Finally, they want us to talk to influential people in the business sectors that are creating jobs, to see how they are doing it, so that we can do it.
I could speak about this for hours because my constituents gave me a lot of good advice but unfortunately, I have to share my time.
Mr. Speaker, I wish you the very best of the holiday season.