Mr. Speaker, it is certainly my pleasure and honour to stand and speak in favour of today's pro-economic and job-growth legislation, Bill C-60, economic action plan 2013 act, No. 1 at report stage. Certainly, like the Parliamentary Secretary to the Minister of Finance last week, I also would like to thank the finance committee members and the great chair, the member for Edmonton—Leduc, for their comprehensive and timely study of the bill. I also would like to extend a very special thanks to every witness who appeared in front of the committee to speak to the significance of the bill and Canada's economy.
In my time today I would like to focus on a number of specific measures contained in the legislation that received some attention during our committee study. First, members will no doubt be familiar with the important adjustments to the Canadian tariff systems that were announced as part of economic action plan 2013. In spite of what the member for Kings—Hants indicated, I would really like to talk clearly about what this is intended to do.
This was in essence a foreign aid program and it was created in the 1970s by western countries to give companies from poor third world markets preferential access to our domestic market. Most western countries that maintained the GPT program or equivalent had modified their list of countries to reflect the fact that formerly developing countries had grown their economies in the 40 years since this program was first introduced. But unlike the EU, the United States and Japan, Canada has not reviewed the list of countries until now. This means that list is sorely outdated.
As a consequence, Canada is giving special breaks in the form of lower tariffs to foreign companies from emerging economic powerhouses like China, South Korea, India and Brazil, companies that compete directly with Canadian businesses and their workers for global market share. Nearly 80% of these special breaks are now going to China even though China now has an economy that is over four times the size of Canada's. Specifically, China's economy is valued at $7.3 billion compared to Canada's, which is $1.7 billion.
Without our changes, Chinese companies will continue to benefit from a one-way trade deal, receiving special breaks and offering nothing in return. This program acts as a disincentive for those growing economies to enter into free trade agreements with Canada, agreements that would increase export opportunities for Canadian businesses, would create more and better jobs for Canadians and would further reduce tariffs for Canadian consumers.
The Canadian Manufacturers and Exporters explained the changes best when it said:
It's 39 years since we updated it. It was meant to help developing countries....we were giving them preferential tariffs while their per capita GDP is higher than Canada’s....The solution is what the government is doing: try to negotiate free trade agreements with countries around the world so that we not only drop our tariffs, but they drop their tariffs as well.
That is exactly what we are trying to accomplish.
This leads me to another important feature of today's legislation that responds to recent concerns of the U.S.-Canada price gap. Economic action plan 2013 proposes to eliminate all tariffs on baby clothing and select sports and athletic equipment, including everything from ice skates, hockey equipment, skis, snowboards, golf clubs and other products that promote physical fitness and healthy living.
Targeted measures contained in Bill C-60 represent $79 million in annual tariff relief for Canadian families. I should note though, this tariff relief comes with the expectation that wholesalers, distributors and retailers will pass these savings on to consumers. Working with the Retail Council of Canada and consumer groups, our government will be monitoring the impact of these tariff reductions on Canada's retail prices.
In fact, the Retail Council of Canada has spoken out in support of this important first step in reducing outdated tariffs, which put Canadian consumers at a disadvantage, stating:
—we are very pleased to see this first step toward leveling the playing field for Canadian retailers....it is a good start and a demonstration of the government's recognition of one of the key reasons for price differences in Canada.
Even better, listen to what Dean Lapierre, president of the Windsor Minor Hockey Association, had to say:
This will definitely help because the cost of equipment is the main thing people cite when deciding to register.... It could cost $600 to $700 to equip one player, double that if the kid’s a goalie. And a lot of families have two or more kids who want to play, so this is great.
I want to be clear that this initiative would allow our government and all Canadians to assess whether further tariff elimination could help to narrow the price gap for consumers in Canada. Of course, this is going to guide our future decisions.
Before concluding, I want to take a moment to highlight one particular item contained in today's legislation related to public sector compensation, specifically the amendments to the Financial Administration Act that would enable the governor in council to direct a crown corporation to have its negotiating mandate, including wages and benefits, approved by Treasury Board. While this may seem highly technical to many Canadians watching at home, it really is very important for taxpayers across the country.
As with our action in last year's budget to reform public service pensions, along with those of MPs and senators, to make them more sustainable and bring them in line with private sector pensions, the overriding objective is to protect the taxpayer's dollar. While we acknowledge that all crown corporations are independent in their operations, their financial decisions impact the government's bottom line.
As responsible economic managers, our government must ensure that we have the right tools to protect taxpayers at the bargaining table, if necessary. This is neither new nor revolutionary. It is a common sense action on behalf of taxpayers. It is important to note on this particular measure that Quebec has had a very similar provision in place for over three decades. I hope that all members of the House will understand that both the government and crown corporations have a fundamental responsibility to spend taxpayers' dollars wisely and to help ensure that Canada's fiscal position remains sustainable over the long term.
In the words of the Canadian Taxpayers Federation:
—[the] executives who manage government-owned companies have enjoyed, until now, special status: they are paid like business people, with none of the risk.... But the taxpayer is always there, at the end of the day, to stroke another cheque, cover the losses, and make everything better....
Simply put, provisions in Bill C-60,... grant [the government]...the power to tell negotiators at these companies how much they can offer unions in wages, benefits.... to insert some spine into government negotiating teams--should improve the odds for taxpayers.
Again, I would like to note that the legislation before us today is an important step in creating jobs and economic growth, while keeping taxes low and balancing the budget by 2015. I certainly urge all members to vote in favour of this jobs, growth and long-term prosperity budget bill and support this very important measure.
