Cathy McLeod

[Jobs and Growth Act, 2012, October 25th, 2012]

Mr. Speaker, absolutely. I just wanted to contrast that with British Columbia's approach, which was at least a revenue neutral tax shift. According to yesterday's National Post:

“...a new report from the NDP-linked Broadbent Institute...contained a prescriptive chapter on “fair taxes” that, if implemented, really would send the cost of everything rocketing skyward”. So with a socialist form of carbon tax and the NDP economic policies that would cripple our business and competitive advantage, the official opposition members just do not understand the damage they would do ultimately to pay for the programs that we treasure.

I urge all members of this House to support this technical piece of legislation that ensures many of the important measures in budget 2012 are enshrined into action. Now is the time to ensure the sustainability of our public finances and social programs for future generations. International experience shows the importance of taking action now. Building a strong economy has to be our number one priority. With the ongoing global economic turbulence, especially in Europe and the United States, we have to act now. Delaying needed and fiscal reform will only serve to put our financial house in jeopardy.

[Jobs and Growth Act, 2012, October 25th, 2012]

Mr. Speaker, I will be splitting my time with the member for Edmonton—Leduc.

I am certainly pleased to stand in the House today to speak to Bill C-45, which is our second budget implementation act. As members are aware, the budget was introduced last spring and, as is the typical practice of the House, there are usually two pieces of legislation that turn this aspirational and directional document into legislation. Today we are considering the second important implementation bill.

The opposition has taken a very simplistic view of this process. The opposition members are busy counting pages rather than reading them. They are focused on worrying about the number of statutes as opposed to looking at the current context and the unique challenges that we face as a country.

Canadians want their government to focus on results. They expect us to work hard to ensure that this happens. I want to provide a small example, using MP pensions. Since I was elected in 2008, I have heard regularly and frequently from constituents that they felt the current plan was unfair to the taxpayer.

As a government, we committed to make a change where parliamentarians would pay their fair share. We need to look at this in a little more depth. This represented one line in the budget, but it took 22 pages in the BIA to make the change. To be frank, I do not think Canadians care about how many pages it would take. What they care about is the outcome. They expect legislators to know how to make it happen.

I would like to note the comment of Speaker Parent when the issue of budget scope was debated in 1994. He said:

In conclusion, it is procedurally correct and common practice for a bill to amend, repeal or enact several statutes. There are numerous rulings in which Speakers have declined to intervene simply because a bill was complex and permitted omnibus legislation to proceed.

We are aware that an important plan is necessary. Our government knows we must make changes to ensure Canada's long-term future, a future focused on prosperity, jobs and growth, a future that will help further unleash the potential of Canadian businesses and entrepreneurs to innovate and thrive in a modern economy to the benefit of all Canadians for generations to come.

As has been said often in the House, Canada is the envy of the world. We were well-positioned to face the great recession and fared better than most countries. We have over 800,000 net new jobs, most of them in the private sector and most of them full-time.

Our plan is working but we must do more. That is why the economic action plan is so important. There are many challenges ahead that range from a continual fragile global economy to a significant demographic challenge with an aging workforce.

I would now like to give a few examples and focus in on what the BIA 2 will do. We are looking at responsible resource development. It absolutely is critical to ensure environmental protection, but at the same time have some balance.

When I was mayor of a small town, we took incredible pride in the protection of some of our important fish habitats, but we were also tried to put in a walking trail. We had a walking trail, with a tiny footbridge, that had to go over a creek that was wet very infrequently. It was considered a navigable water. The amount of bureaucracy and paperwork involved was stunning. A canoe never went in that water. There was never any navigation in that water. The process we had to go through with Transport Canada in order to put in a small footbridge that would support the recreation and well-being of the community was absolutely stunning.

This is where we need to create better balance in terms of what we are looking at, focusing important resources in areas that are going to be most important.

Another place I would like to look at within this BIA is the expanding opportunities for the aboriginal people to fully participate in the economy. I am really particularly proud of Tk'emlúps Indian Band which has shown real leadership in moving forward for a good economy for its people and using their land in ways that the band approves of but provides challenges.

The Auditor General has identified the designation and leasing processes to be the cause of unnecessary lengthy approval times for projects on reserve.

I have seen that up front, whether it be a number of the bands as they are trying to move forward wanting to do some very important things and the months of delay with the bureaucracy again getting in their way. The legislation has important amendments that would take away some of the government's patriarchal land ownership rulings and let the bands move forward in terms of some important economic opportunities.

We recognize that having a social safety net that supports Canadians must be there for future generations. We cannot leave a legacy of debt that will suffocate our children and we must return to a balanced budget in the medium term, again an important focus of what we are doing right now.

Expanding trade and opening new markets for Canadian business is critical. Our prosperity is ultimately linked to reaching beyond our borders for economic opportunities. I will look at the forestry industry in British Columbia where the new markets in China have seen us through a very difficult time and helped buffer the U.S. recession because our pulp mills and our forestry workers were able to keep working and have looked at a significant increase in terms of trading with China.

Our government also understands the importance of a fair and equitable tax system and that is why this bill includes a number of important measures to improve on certain tax credits and other issues. Overall, these measures would improve access to some very important tax programs. I will talk briefly about the RDSP,which has been very well received. We will simplify the process to open RDSPs for individuals who have reached the age of majority and lack contractual competence. We would reduce the repayment of the Canada disability savings grant and Canada disability savings bonds in certain cases. We are introducing changes to the minimum and maximum withdrawal rules. We are allowing a tax-free roll-over of registered education savings plan investment income into an RDSP. We are temporarily suspending the termination of an RDSP following cessation of eligibility. I could go on and on but essentially these are technical changes that would provide a vast improvement to the program. If it takes a lot of pages, I ask that the opposition members read the pages and support the legislation.

I will contrast our low tax plan focus on jobs and growth with that of the NDP. On page four of the NDP platform, there is a $21 billion carbon tax that would be used for a myriad of government social programs that range from housing to food. We need to be clear that this is a tax that would raise the cost of everything from gas to heating bills and it should be contrasted—

[Oil and Gas Industry, October 16th, 2012]

Mr. Speaker, the last couple of months we have heard a lot of rhetoric about pipelines in Canada. I think it is important to focus on a few facts.

There are 72,000 kilometres of pipeline currently in our country, and 99.996% of crude oil and petroleum was transported safely. Pipelines are an efficient and environmentally friendly method for transportation of this important resource. For example, in my constituency alone, it would take 1,400 trucks per day to transport the amount of oil that flows through our local pipeline. This pipeline supplies much of the gasoline consumed in British Columbia.

Our commitment to diversifying our markets to create jobs and opportunities for Canadians across this country is critical for our long-term prosperity.

Our Conservative government proudly supports the development of our energy sector in a socially and environmentally responsible manner. It is time to move forward to having the safest pipeline system in the world.

[Business of Supply, October 16th, 2012]

Mr. Speaker, if we reflect back on the Speaker's rulings of the past and we reflect on the need for a budget to reflect very comprehensive challenges that a country faces, he will see that we have followed what is a very good process and indeed the outcomes have been extraordinary. We look at 820,000 net new jobs, some of the best growth in the G7. Again, the outcomes speak for themselves.

[Business of Supply, October 16th, 2012]

Mr. Speaker, that truly is not only inaccurate but it is outside the relevance of the discussion for today. However, I look at the forestry sector in British Columbia, and the member is also from the community of British Columbia, and how trade with China has been absolutely critical. I have a number of mills in my community that have put a couple of hundred people in our rural areas back to work. Again, that relates to our very positive trade relationships throughout the world.

Again, it does all tie into a big budget bill requiring a comprehensive plan for extraordinary times.

[Business of Supply, October 16th, 2012]

Mr. Speaker, my colleague brings up two very important points. One is that the Speaker's rulings in 1994 looked at the budgets and budget implementation acts as typically involving a lot of statutes and helping to move the policy agenda forward.

Earlier in my speech, I talked about the very extraordinary circumstances that we found ourselves in with global uncertainty. Since the depression, we have not found ourselves in such a difficult financial situation. Therefore, having a comprehensive plan that is far reaching and has guided Canada into a very enviable position has been absolutely critical.

[Business of Supply, October 16th, 2012]

Mr. Speaker, that question is about process. I talked about the extraordinary and very important situation in which Canada found itself. However, I do want to spend a minute talking about the process.

The bill had incredible opportunities within the House for debate. I sit as a member of the finance committee. I certainly recognize the hours and hours of listening to witnesses. I talked earlier about a technical briefing which unfortunately was somewhat poorly attended by the opposition, but was an enormous opportunity to really understand what the bill was trying to accomplish.

We certainly had significant debate. I note there were areas that were divided into a subcommittee, which also spent a lot of time looking at specific areas in environment and fisheries. If I look at the opportunity for the members of Parliament to debate the legislation, the time spent in committee and in subcommittee was a good opportunity to look at the measures in the bill and the opportunities it provided.

[Business of Supply, October 16th, 2012]

Mr. Speaker, I spent a great deal of time in my remarks talking about the very extraordinary situation we found ourselves in as a government, a situation that required a comprehensive response in a whole host of areas and that would knit together to provide the future and the path toward our future.

Prior to the budget implementation act one, there was a technical briefing that was very poorly attended by MPs on the other side of the House. During the technical briefing, there was an opportunity to hear, in great detail, how these different measures knitted together in a comprehensive whole to move Canada forward for our economic prosperity.

[Business of Supply, October 16th, 2012]

Mr. Speaker, I certainly appreciate this opportunity to address my hon. colleague's motion. However, from the outset, I want to point out to my colleagues across the way that the economy remains priority one for our Conservative government.

With the economic recovery still fragile, we remain focused on ensuring Canada offers the right environment to attract the best business investment necessary to create more and better-paying jobs and improve the living standard of Canadians. Ironically, one of the most effective ways to achieve this is through action opposed by the other side, to give job creators means to hire more workers by lowering their taxes, which is exactly what this government has done. Rest assured that our Conservative government understands that it is lower taxes that help stimulate job growth and that it is expanding markets for Canadian businesses that will help our economy thrive.

The fact is that we have a strong economic record, one that Canadians can look to and trust, as we once again face the economic headwinds emanating from abroad. In short, thanks to the prudent fiscal and economic decisions made before the downturn hit, Canada's economic and fiscal health today is stronger than that of most other developed nations.

When faced with the unprecedented global crisis, our government responded with Canada's economic action plan, which stimulated the economy, protected Canadian jobs during the recession and invested in long-term growth. The results have been both positively received and widely recognized. For example, the Canadian economy's performance on jobs and economic growth has been among the best in the G7. While we would like to see more progress, it is important to note that we have recovered and exceeded all of the output and all of the jobs lost during the recession.

Since July 2009, more than 820,000 net new jobs have been created, the strongest growth in the G7 by far. Certainly in my riding of Kamloops—Thompson—Cariboo, we have seen a dramatic drop in the unemployment rate in our particular community. Virtually all of those jobs have been full-time positions. However, that is not all. Canada has the distinction of having the world's soundest banking system for the fifth year in a row, as affirmed two weeks ago by the World Economic Forum. Forbes magazine has ranked Canada number one in its annual review of the best countries for business.

Five Canadian financial institutes were named to Bloomberg's list of the world's strongest banks, more than any other country. Three credit rating agencies, Moody's, Fitch and Standard & Poor's, have all recently reaffirmed Canada's top-tier, AAA credit rating. What is more, our $3 billion U.S. bond issue earlier this year was widely subscribed, with EuroWeek magazine concluding that the fact that Canada is

able to do a trade like that…cements its status as a true Treasury alternative and the best credit in the world.

Clearly, Canada's fiscal fundamentals are solid, and people are noticing. In fact, German Chancellor Angela Merkel has praised Canada's economic record, saying:

Canada's path of great budgetary discipline and a very heavy emphasis on growth and overcoming the crisis, not living on borrowed money, can be an example for the way in which problems on the other side of the Atlantic can be addressed.... This is also the right solution for Europe.

While Canada's economic achievements are encouraging, our government understands that now is not the time to become complacent. There are international risks that can affect our outlook: the crisis in Europe and the slowing recovery in the U.S.

I would like to draw everyone's attention to the enduring sovereign and banking crisis in Europe. As the Prime Minister has observed, “The risks to the global economy stemming from the euro zone remain considerably elevated, with the capacity to affect all of us”.

In the eurozone, real GDP contracted in the fourth quarter of 2011, was virtually flat in the first quarter of 2012 and then contracted again in the second quarter of 2012. In addition, current indicators show little improvement, suggesting that the euro area economy is unlikely to see a sharp rebound in the near future.

Many nations, even those oceans away, are concerned about the impact of the eurozone crisis on their own economies. We are all obviously concerned about the situation there, but European leaders need to address their economic problems directly.

The recent announcement by the European Central Bank that it would support European sovereign bond markets is a step in the right direction. However, as the Minister of Finance has noted, we continue to wait for intentions to become actions.

Another serious issue of concern for the world economy is the long-term fiscal challenges of the U.S. This also has a short-term dynamic. Without a political agreement, a number of tax increases and spending reduction measures, representing about 4% of U.S. GDP, are scheduled to come into force at the beginning of 2013. This has been labelled the “fiscal cliff”. The U.S. needs to reduce its fiscal deficit over time. This point is clear. However, it also needs to ensure that there is certainty in the short term, so that markets and investors can be confident that its economic growth will not be interrupted.

Interestingly enough, it is Americans who are suggesting that the United States should emulate Canada's policies to improve their own economic situation. Indeed, just last year the finance committee travelled to the U.S. and met with congressmen and senators. At every meeting we went into, there was so much appreciation and people said we were so lucky to come from Canada.

Just a month ago, we received the highest praise from our American friends when Tom Donohue, President and CEO of the U.S. Chamber of Commerce said:

We've got a strong example of the positive effect of good policies...—Canada. Why has our northern neighbor recovered faster and more robustly from the global recession than nearly all the other major economies? Due to a series of smart policy decisions.

... Canada has transformed its economy while other nations continue to struggle. ...it is growing faster than many of its competitors. It has recovered all the jobs lost in the recession...

Let's take a lesson from the north and tackle these priorities now.

What a great quote from our American friends.

It is our Conservative government that understands what type of economic policies Canada will need to weather the storms beyond our borders. What better place to find examples of policies that create jobs, stimulate economic growth and secure Canada's long-term prosperity than economic action plan 2012?

With our largest historical trading partners, the United States and Europe, going through a prolonged period of economic uncertainty, we know this will put downward pressure on Canada's economic growth. We will not be able to rely on these trading partners to the same extent we did in the past. We must develop new markets and create new opportunities in dynamic parts of the world if we are going to keep raising our standard of living.

Our government is committed to increasing Canada's exports and creating conditions necessary for our homegrown businesses to compete in the global marketplace. Increasing Canadian export is key to our future growth. Our government believes that the sustainable growth agenda involves structural reforms, including trade liberalization that allows for Canadian businesses and their workers to fully compete in the global market.

Our government has already made Canada one of the most open and globally engaged economies in the world. In six years we have reached trade agreements with nine countries and are negotiating with many more. We have also concluded foreign investment promotion and protection agreements with 11 countries and are in active negotiations with 14 others. We are optimistic that our negotiations with the European Union will soon produce an ambitious trade agreement that facilitates increased Canadian exports to Europe. Recently, our Prime Minister met with German Chancellor Angela Merkel in Ottawa to strengthen dialogue on this key initiative.

However, it does not end there. Combined with the government's commitment to increasing Canadian exports is our continued tariff relief to enhance the competitiveness of Canada's manufacturers and importers. In all, our government has eliminated more than 1,800 tariff items and provided more than $435 million in annual tariff relief to Canadian businesses. As a result, Canada is now the first tariff-free manufacturing zone in the G20.

Our government continues to create the right conditions to enable Canadians and Canadian businesses to feel confident to invest, to create jobs, to participate in the global marketplace and to grow our economy.

In fact, just last week the Minister of Finance announced new tariff relief for Canadian manufacturers to help create jobs and economic growth and enhance their competitiveness in the domestic and international markets.

Let me stress this point. Trade has long been a powerful engine for Canada's economy, driving it forward through some pretty tough times. It demonstrates the government firmly believes and our record demonstrates that.

Unfortunately, not all the parties represented in the House share that view. If the NDP had its way, we know that our economy would falter under its protectionist policies. That party has opposed almost every trade agreement that has come before the House. The Liberal Party just let the trade file languish during its time in government. Fortunately, on this side of the House, we take action.

Deepening Canada's trade investment relationships in large and fast-growing export markets around the world is integral to jobs and growth. In the past few years, our government has been aggressively expanding commercial relationships in the Asia-Pacific region to create jobs and economic benefit. The opportunities for Canada in this dynamic region are vast, with an economic growth rate that is two to three times the global average.

By 2040, China and India are predicted to be the number two and number four destinations for Canada's merchandise exports, with South Korea and Japan in the top ten as well. That is why we are pursuing a whole host of trade initiatives with Asia.

Let us consider the Trans-Pacific Partnership, for example. The TPP's current membership represents a market of 510 million people and a GDP of $17.6 trillion.

At the G20 leaders summit in Los Cabos, Mexico, TPP partners announced their support for Canada joining this partnership and, indeed, it was an historic opportunity.

However, this trade effort in this region has some company. In addition to the TPP, Canada is pursuing a number of similar initiatives, including continuing trade negotiations with Japan and continuing exploratory discussions toward trade negotiations with Thailand.

Our government continues to take action to increase Canadian exports to China. China is the second largest two-way trading partner, after the United States, and bilateral trade is expanding rapidly. Fuelled by a 27% boost in Canadian exports to China, two-way merchandise trade reached $65 billion in 2011, accounting for 7.3% of Canada's trade.

Again, on a local note, I look at our forestry industry in British Columbia. That expansion into China in terms of its product has been absolutely critical in terms of its continuation.

More specific, from 2006 to 2011, Canadian exports to China rose from $7.8 billion to $16.8 billion, an increase of 115%. During the same period, Canadian imports from China rose from $34.5 billion to $48.2 billion, an increase of 40%.

Canada has a strong network of trade commissioners throughout China who can help Canadian businesses to asses the potential of the Chinese market, find qualified contacts and resolve any problems that might come along the way. This network was expanded in 2009, when Canada opened six regional trade offices to expand our presence to second-tier cities, the new drivers of the Chinese economic growth. Our country now has 11 points of contact for Canadian businesses in China.

To increase protection for Canadian business in China, earlier this month, we signed the Canada-China foreign investment promotion and protection agreement. This landmark agreement will provide a more stable and secure environment for Canadian businesses in China.

I could easily go on for another 20 minutes, highlighting our government's economic action plan initiatives to strengthen business competitiveness, for example, in resource development, immigration reform, cutting red tape. It is pretty clear that when it comes to creating the kinds of economic growth that will mean a brighter future for Canadians and their families, this side of the House knows the best route to getting there. Why? Because, unlike the Liberals, our government has a plan for jobs and growth and will continue to stick with it.

I urge my colleagues across the floor to stop voting against a plan that would create jobs, generate economic growth and secure Canada's long-term prosperity. Our Conservative government is creating the right conditions for Canadian businesses to compete around the world. Our government is absolutely committed to keeping Canada strong and prosperous, even in a volatile and uncertain economy. Maybe for a change the Liberals will get on board.

[Business of Supply, October 16th, 2012]

Mr. Speaker, I have two short quotes from 1994 by Speakers of the House at that time.

Speaker Milliken in 1994 stated:

While the subject matter may be diverse, I suggest to the hon. member that given the fact they were all introduced in the budget, they form a whole, unified policy thrust which the government has put forward and which it will be defending in the course of the debate on this bill. Therefore in my submission, the bill is entirely in order.

Speaker Parent stated:

In conclusion, it is procedurally correct and common practice for a bill to amend, repeal or enact several statues. There are numerous rulings in which Speakers have declined to intervene simply because a bill was complex and permitted omnibus legislation to proceed.

I would ask the member if she believes that those Speakers' ruling in 1994 when the Liberals were in government were in fact in error.