Mr. Speaker, I would hasten to let the speaker know before I begin that I do not intend to follow the pattern of the member for Verchères and to address my remarks specifically to the concerns of one province. I will speak to this bill as a Canadian.
I am pleased to stand as the official opposition critic to address Bill C-36, the budget implementation act.
Part VIII of the legislation addresses the phase-out of the air transportation tax levied on air travel as a percentage of ticket prices. Coinciding with this phase-out is the commencement of NavCan's user fees for large aircraft and for the reduction of federal funding for this not for profit corporation which was created to provide air navigation services on a commercial basis.
The air transport tax will be completely off the books by November 1, 1998. At that time NavCan will be cut off as planned from government funding and will have to operate on its own. That is the way it should work. Once a government service has been commercialized and is financed by charging fees to those who use it, the taxes previously collected to pay for the service should be reduced. Otherwise the result is double taxation.
Unfortunately this is what we may see happening to operators of light aircraft. Although November 1 is also the date for the commencement of NavCan user fees for small aircraft, there is no plan to ease the tax burden on the general aviation sector.
The Reform Party is a great supporter of user pay, but operators of light aircraft are already paying and paying and paying increased Transport Canada charges and new airport user fees, for example, the infamous fee to pee that so many pilots talk about.
Particularly galling is the excise tax on aviation gasoline which is poured into the government's general revenues. Aviation gasoline is taxed at a much higher rate than jet fuel. Jumbo planes fuel up and pay 4 cents of excise tax per litre while the tax rate for aviation gasoline is 11 cents, a full 7 cents per litre difference.
It is not in our national interest to charge and tax general aviation into the ground. Commercial aviation needs a healthy general aviation sector to be its pilot recruiting and training ground. That is the way it has always been. However, in the face of spiralling costs in the form of taxes and fees the number of licensed pilots in Canada has been steadily decreasing for years. Double taxation of operators of light aircraft will only make matters worse.
Canada must not follow the example of some European countries which have killed private flying by overregulating airspace. These countries are now forced to seek foreign pilots to fly commercial aircraft.
I have noticed a good omen. The finance minister has received a letter from NavCan's president proposing a solution to the problem. NavCan has requested that the 7 cents per litre difference in excise tax rates levied on jet fuel and on aviation gasoline be eliminated, and that NavCan be permitted to collect a similar amount from aviation gasoline sales to finance air navigation services for smaller aircraft.
I urge the finance minister to carefully consider NavCan's proposal. It is only fair to offer a revenue neutral, user pay system to the operators of small aircraft similar to the deal being given to major operators of commercial aircraft.
It is also solid common sense to tie fuel consumption to financing the air navigation service. This way there is not only no double taxation of light aircraft operators but heavy users of light aircraft would automatically pay more than infrequent weekend flyers. Equally important, NavCan would not have to waste money and effort tracking down and invoicing individual pilots.
As air transportation taxes are the sole transportation issue deemed worthy of a mention in Bill C-36, I would like to use my remaining time on a more general issue. I have to admit that I am somewhat encouraged by the budget being balanced for the first time since 1969. However, my enthusiasm evaporates when I consider how the Liberals managed to do it. It was not done by cutting wasteful spending. Of this I can assure the House. The Liberals continue to spend money, coddling their corporate darlings such as Bombardier and Power Corp, not to mention simply squandering money on things like the free flag program.
The Liberals brought the balanced budget into being by increasing taxes 37 times, by slashing health and education transfers to the provinces and by hoarding big UI surpluses so that they could disguise an ongoing deficit. It is truly the Canadian taxpayers who dislodged the deficit as increased revenues actually counted for 69% of deficit reduction.
Spending days are back. First there was redbook two in which tax relief and debt reduction were given second billing to spending. Now the budget makes it abundantly clear that the Liberals have not learned a thing. What we are witnessing now is a foolish rush to spend any surplus to maintain unity within the Liberal caucus: pork, pork, pork.
Rather than basing its spending plans on contingency reserves, the government has displayed its contempt for debt reduction by essentially arguing that it is not necessary: don't worry, be happy.
Rather than consolidating the budget balance so that it stays balanced during the next economic downturn, the government could not wait to start spending again. Thus we have more than two dozen spending increases, totalling over $10 billion over the next three years.
Liberals seem to feel that they have to be big spenders even though Canadians would be happy with a responsible government that provided stable funding for the things Canadians count on, those things that governments do best such as health care, a national highway system and education. The Liberals cannot resist grand gestures like the new millennium scholarship fund.
I hate to be cynical but I am afraid this place eventually makes all of us a bit cynical. When considering spending projects, the government's number one concern is to get the lion's share of any glory to be gained. I wish the government would think of how it could best help Canadians rather than how to use taxpayers' money to boost the its political profile. How else can the millennium scholarship fund be explained, except as a gesture to boost the government's profile?
First, the fund is not about post-secondary education. It will not restore slashed education funding or provide students and parents with tax relief so that they can better afford to save for tuition and repay student loans. It is the same old malarkey, the tax and spend approach. If the Liberals were so concerned about education, why do they not just return some of the $7 billion they took away from the provinces in transfer payments?
If they are such defenders of post-secondary education, why did they do away with the Mulroney scholarships program which was really the same as the millennium scholarship fund? It was another political ploy like the one we are getting now. I predict that the ultimate fate of the millennium scholarship program will be the same as it was for the Mulroney scholarships as soon as that one time political benefit has been exhausted.
I am heartbroken. I could have gone on for another 20 minutes on the millennium fund.