John Manley

[Shipbuilding, March 15th, 1999]

Mr. Speaker, I explained a few days ago that we already have major tax shelters for the shipbuilding industry.

I also want to point out to the hon. member that, since the eighties, the federal government has invested $1.6 billion in MIL Davie. Is it not enough?

[Investment, March 15th, 1999]

Mr. Speaker, first, I challenge the member to find a single study that says Canadian productivity has been falling. He will not be able to find one.

Second, in the KPMG study released a few days ago we see a series of criteria, including all kinds of costs, construction costs, municipal tax costs, income tax costs at the corporate level and on it goes, that shows Canada as the low cost provider of services. Instead of helping us to sell Canada as an investment destination, why does the Reform Party prefer to stand up and put its own country down?

[Shipbuilding, March 11th, 1999]

Mr. Speaker, it is not true that the federal government has done nothing for the Lévis shipyard. It invested large amounts of money in the shipyard for several years.

I have also just explained that there are tax shelters for the shipbuilding industry here in Canada. The assistance that has already been given and that will given in the future is not negligible.

[Shipbuilding, March 11th, 1999]

Mr. Speaker, I am delighted to note that the last budget again contained help for R&D in Canada and for the process of innovation.

These are some of the most important sectors for building the industries of the 21st century here in Canada and in Quebec. These were the same sectors that received funding in the budget brought down a few days ago by Quebec's finance minister.

[Shipbuilding, March 11th, 1999]

Mr. Speaker, I would also mention the fact that with the existing tax shelter, there is also a 25% customs duty on ships imported into Canada outside the NAFTA agreement.

There are also internal contracts for the federal government and funding for commercially viable transactions by the Export Development Corporation. Not only in this sector, but in others as well, there is the system of tax credits for research and development that are also very favourable.

[Shipbuilding, March 11th, 1999]

Mr. Speaker, the hon. member must be aware of the fact that, with the existing tax system, there is an accelerated deduction of depreciation costs of 33% for ships built in Canada. It is very quick, it is direct depreciation. That means that after four years the buyer of a ship built in Canada can deduct the entire cost of the ship. That is a very generous tax shelter.

[Shipbuilding, March 5th, 1999]

Mr. Speaker, we explained yesterday that there are already tax shelters for the shipbuilding industry. They have been around for a long time. There are also other programs to help this industry.

It is not true that we have a system to reduce the benefits made available by the Province of Quebec. If other provinces wish to offer benefits, as Nova Scotia has done, they are free to do so.

[Year 2000, March 5th, 1999]

Mr. Speaker, as we get closer to the turn of the millennium of course the government is taking all the precautions necessary to make sure that we are prepared for any contingency.

I can tell the hon. member, and again it was confirmed in the last few days by a United States Senate report, that Canada is one of the leading nations in the world in Y2K preparedness.

Second, I can say with respect to the telephone system that the hon. member for Ottawa West—Nepean and I visited the Stentor labs a few weeks ago. They demonstrated to us their testing of Y2K. They turned their clocks forward and demonstrated that the tests worked. We are assured that throughout Canada, both the electrical and telephone systems are well on the way to being fully prepared for the change in calendar date.

[Shipbuilding, March 4th, 1999]

Quite simply, it is not true, Mr. Speaker.

[Shipbuilding, March 4th, 1999]

This is not true, Mr. Speaker.

We have a taxation system that is highly favourable to shipbuilding. We have the capacity for an accelerated write-off for ships built in Canada. We have very high tariffs for ships built elsewhere and a government purchasing system that favours Canadian production.