Madam Speaker, despite the criticism of the official opposition and the distortions which inevitably come with having to adhere to negativism as it is inherent in the makeup of the role of the official opposition, I would submit that this budget is in the best Liberal tradition. In a way it is an historic budget for children and families. It is a document of social significance, of social cohesion, and of recognition of the needs and aspirations of Canadians.
It puts Canada among the advanced nations in making progress with social, economic and environmental issues coming together. These are the three ingredients of sustainable development. This is also an encouraging and positive aspect of the budget, that the three are mentioned at the same time. The budget is not concerned only with the economy or with other aspects of the economy alone, but brings together social, economic and environmental objectives.
Much has been said about health by other speakers. I would only add that the dimension of provincial accountability in matters of health expenditures represents a real victory for Canadians and for strong federalism. In this respect the Romanow report was a great help in setting out the health care component of the budget. To the former premier of Saskatchewan goes our gratitude and I suspect that of the Canadian people who have benefited from his inquiries, research, and of course, his report.
The Canadian Council on Social Development writes:
The federal government is showing leadership which will benefit parents and children alike.
It notes that 70% of women with preschool age children are working outside the home in Canada, and yet only 12% of children have access to licensed care. It states:
Moreover, research clearly shows that quality early education and care programs make a positive difference in the growth and development of children, especially those from low income families.
Marcel Lauzière, the president of the Canadian Council on Social Development, states:
We are very happy about this announcement but we are concerned that a mere $25 million has been allocated for the first year. Given that Quebec alone spent $1.1 billion on child care in 2001, and that the overall price tag for a quality, national child care system is estimated at $10 billion, we can only hope that all governments will be committed to increasing their support to child care in the years to come.
On the national child benefit the same Canadian Council on Social Development writes:
The NCB has provided financial assistance to low income families in Canada, but for far too long, has not reached many of Canada's poorest children--an estimated 700,000 in 2000--who live in families that rely on social assistance. These children have been losing ground, as the value of welfare benefits to these families have fallen by 23% since 1991, and in most provinces, the NCB has been clawed back.
That is something that is profoundly upsetting. The council comments further:
With the budget announcement, the value of the combined Canada child tax benefit will fully replace child benefits under social assistance. For the first time, children in Canada's poorest families should see an increase to their families' incomes.
Katherine Scott, the senior policy associate for the council, states:
Their work isn't done on the child tax front. The federal government must continue to make new and substantial investments in the Canada Child Tax Benefit, including the NCB. The benefit needs to reach at least $4,200 a child before we will see a significant reduction in the rate and depth of child poverty in Canada.
The same council recognized the fact that something had been done in this budget regarding housing, that one of the greatest needs of many Canadians has been addressed, namely that of affordable housing. It adds that an estimated 200,000 Canadians are homeless and 1.7 million families are in poor housing need. Council President Lauzière states:
The budget commitment of $320 million over five years will be insufficient to build the number of housing units estimated to be necessary, but at least it recognizes there is a problem that cannot be ignored. We also welcome the $270 million allocated to fighting homelessness through an extension of the Supporting Communities Partnerships Initiative.
The 2003 federal budget represents the first truly activist budget of the Prime Minister's era according to the council. The new investments in Canada's families will begin to counter the growing gap between rich and poor.
It seems to me that, coming from an independent body, these comments are relevant and also encouraging. This is certainly an institution that has served Canada well and is known for its independent thinking.
I would like make some comments on the budget and the environment, climate change and Kyoto, which received a considerable amount of attention at this point in time. This is thanks to the plan which was produced last October and the ratification of the Kyoto agreement which was given a massive yes vote in the House on December 10.
The budget is positive in terms of allocation of funds. There is this large figure of $1.7 billion. It is intended to meet Canada's commitments under the Kyoto protocol. It now needs the decisions necessary to determine how the money should be spent in a specific manner. That is something that would probably be carried out or achieved in the near future.
Let me draw the attention of members to the fact that four ministers: the environment minister, the natural resources minister, the agriculture minister and the transport minister, all have access to these funds. It would seem from public statements that they would have to compete to obtain these funds.
The Minister of the Environment has already warned of a danger with this process last week. Kyoto money intended to help reduce greenhouse gas emissions could be spent by other ministers for what has been termed hobby horses or pet projects which would not necessarily have the full impact and priority that the reduction of greenhouse gas emissions require.
It would be desirable against this background perhaps to recommend that a central agency be in charge of the allocation of this very large fund. Possibly the Privy Council Office could perform the task of being in charge of the climate change funds so as to ensure the funds are used to the best possible effect in reducing Canada's greenhouse gas emissions.
The budget offers a range of possible programs, and it is quite interesting to go over them, to reach our Kyoto goal. However it does not specify which programs will be implemented.
Incentive programs to encourage for instance homeowners and businesses to make their buildings more energy efficient would go a long way in reaching the Kyoto target. Such type of program aimed at reducing the losses in energy would not be expensive and would pay off in the medium term, and sometimes in the short term, in energy savings for both the homeowner and businesses.
I would like to draw the attention of the House that the city of Toronto for instance has already a prototype program of this kind. It is called the Toronto atmospheric fund. It is a revolving fund which provides or revolves $10 million of public investment which has apparently triggered some $126 million in energy savings and improvements. I am sure that other municipalities are adopting this model or probably thinking of moving in that same direction.
There are many other incentives that could go a long way in moving Canada toward its Kyoto goal. An increase in the wind power production incentive and expansion of that incentive to include all forms of renewable energy would be very helpful. We had a measure already in the last budget of 1.2 ¢ per kilowatt hour. Industry has indicated that the incentive needs to be increased. I would imagine that is an item that requires attention in the next budget as well.
We need to promote energy conservation to educate consumers on energy efficiency and more careful consumption and are items that remain still to be specified in the budget.
I must point out that a large sum of money devoted to the implementation of Kyoto and reducing greenhouse gas emissions would have a limited effect unless it is accompanied by an overhaul of our taxation system. Our current taxation was designed for the pre-Kyoto era. What we need now is to adopt a system that is tailored in a manner that will help to achieve the Kyoto objectives; in other words, a system of taxation that will remove the obstacles that stand in the way in the reduction of greenhouse gas emissions.
For example, at the present time the federal government through the taxation system of course subsidizes the oil sands industry which is an industry that in the production of oil produces a high level of greenhouse gases. Preferential tax treatment is a tax that consists of accelerated write-offs and deferrals. A considerable series of measures need to be dealt with and gradually phased out, because that industry can compete and can do very well without being subsidized in what could be described as a rather socialistic regime, and of all places it is happening in the province of Alberta.In other words these are perverse subsidies that ought to be removed.
Therefore a level playing field needs to be established to deal with the greenhouse gas producing sources. Removing these subsidies would have the effect of letting all prices reach their level at the marketplace, reflecting the cost of production without being favoured by what is obviously becoming rapidly an outdated taxation system.
I know that this may not sound like very good news to members opposite, but I do not think that members from Alberta need to fear. That industry can stand very well on its feet without subsidies, without corporate welfare and without the help of the Alberta government and, in the case of the taxation system, without the help of the Government of Canada.
One of the tenets of the Alliance Party is to promote free enterprise and a capitalistic society. Therefore I cannot understand why some members of the Alliance want to defend the taxation subsidies, which are actually the product of a socialistic ideology.
The government's tax expenditures to the oil sands industry amounted to some $585 million between 1996 and the year 2002. The removal of the subsidies would save Canadian taxpayers a considerable sum of money. This is an item that our friends in the official opposition always preach. They would like to have a reduction in taxes and if they are to be consistent with their desire to reduce taxes, then they would also want to have the removal of perverse subsidies which stand in the way in the achievement of the Kyoto objectives.
One has to also mention the importance of energy innovation in this debate. There is a very brief reference in the budget to innovation in general, but I submit, in the limited time available, that there are two departments and two ministers key to the success in Canada's achieving its Kyoto objectives. One, as I mentioned, is the Minister of Finance. The other one is the Minister of Industry, because the innovation program, if it were to be designed in a manner so as to give energy innovation a key central role, it would help considerably in achieving the Kyoto objectives.
Therefore, I would take the opportunity in this debate to call on the Minister of Industry and to urge him or her, whoever it might be at a certain time, to design an innovation program in the Department of Industry that would take into account the absolutely urgent necessity of adopting and including an energy innovation component for that program.
In doing so, by redesigning the tax system and by adopting a strong policy of energy innovation, we can look forward with a certain degree of confidence to the year 2012, which is our next appointment with destiny in the implementation of Canada's commitment to the Kyoto agreement.