Mr. Speaker, I am pleased to participate in today's debate on the Conservative government's budget.
While budgets are always important events in the life of a government, I would suggest that none in recent memory should have been as important as this one.
The Conservatives had a choice to make. Would they continue on with the failed policies of yesterday by tabling a stay the course budget that would include billions of new spending on corporate tax cuts and higher taxes for average Canadians? Or would they finally admit that their free market formula of smaller governments, cuts to social programs, fewer regulations on corporations and tax cuts for the wealthy was precisely the prescription that had brought our economy crashing down on us in the first place?
Sadly, though not surprisingly, the government decided to stay the course and in the process it abandoned hard-working Canadians and seniors. There is no doubt that the innocent victims of the global recession of 2008-09 were seniors and the middle class. A cycle ripped through Canada's job market, leaving over 1.5 million officially unemployed. Of those, 810,000 are poised to run out of employment insurance benefits in the coming months. Thousands already have. Without jobs to greet them, the majority will wind up on welfare rolls or worse.
What should Canadians have been able to expect from their government? A plan to get Canada working again. Clearly, the status quo is not good enough. Full-time job growth has been sluggish at best. Canada's unemployed are competing in an ever smaller job market. Over the past year, Canada added only 55,000 new part-time jobs and 119,000 new temporary jobs.
Without a good job, well paid, with benefits and reliable hours, life becomes harder to plan, mortgages harder to pay, loans harder to diminish and savings harder to tuck away. In short, Canada's job crisis represents a new threat to the sustainability of Canada's middle class.
It is the government's job to get serious about job protection and job creation. Instead the budget freezes public sector operations, creating new job losses in the federal public sector and thereby compromising the food we eat, the health of our environment, transportation safety and the public services on which Canadians rely. In one fell swoop the Conservatives have managed to weaken the economy and hurt Canadians.
The same is true for the government's cancellation of the home renovation tax credit. The HRTC was one instrument that worked. It could have been improved by encouraging renovations that enhance energy efficiency, but it was undeniably successful. It bolstered the crucial housing and construction sectors and it had a huge uptake by homeowners who needed the government's help to maintain their assets during this recession.
However, the Conservatives decided to cancel this program and opted instead to throw good money after bad. Nothing is more egregious in this budget than the government's policy of continuing tax cuts to the big banks and profitable corporations.
Canada's corporate tax rates are already well below those of our main competitor, namely the U.S. Yet the government will continue to enrich its corporate friends.
The Parliamentary Budget Office estimates a $19 billion structural deficit in three years. Fifteen billion dollars of that deficit will be the cost of corporate tax cuts, all of that without a shred of evidence that those tax cuts have led to private sector investments and job creation.
To add insult to injury, since Liberal and Conservative governments started cutting corporate taxes 10 years ago, individuals are carrying 61% of the cost of government programs, while corporations now only pay 15%. It is clearly time to recalibrate.
Instead of spending $6 billion on further corporate tax cuts, the government should have sustained its stimulus spending to create jobs. Both the World Bank and the International Monetary Fund have warned governments that withdrawing their stimulus packages too quickly could trigger another global recessionary dip. By cutting the stimulus package off too soon, the Conservatives are letting the jobless fend for themselves and letting the economy simply drift toward recovery. That is not nearly good enough.
On the contrary, the $6 billion that is currently targeted to further corporate tax cuts should be invested in improving Canada's crumbling physical infrastructure and enhancing its social infrastructure. This would be a win-win. Investments in cities, health care, child care and affordable housing would create jobs and leave our communities more functional and vibrant as well.
Imagine what a boon to the steel and construction industries with serious investment on infrastructure could be. As we replace obsolete infrastructure we can transfer, Canada's economic base to a more energy efficient platform because we would not have to choose between what is good for the economy and what is good for the environment.
To a city like my home town of Hamilton, that is absolutely crucial. The recession has hit through our community with the force of a cyclone, leaving a devastating trail of joblessness in its wake. In a city that was once known as Steel-town, only two of the city's largest 10 employers are now private sector companies.
The impact of those job losses is being felt at every level of our community. First, of course, is the high rate of unemployment, with workers increasingly run out of EI. This places an additional burden on the city's welfare rolls and the city is already cash-strapped.
The companies that are closing their doors are now no longer paying property taxes to the municipality, a loss that cannot be compensated for by the public sector because employers like hospitals and post-secondary schools are exempt from paying property taxes to municipalities. This puts the burden for the cost of municipal services squarely on the shoulders of residential property taxpayers, the very people who are losing their jobs. It is a downward spiral with no end in sight.
The only way to reverse the trend is through a positive intervention by senior levels of government. Regrettably, to date, instead of assisting through stimulus spending, they have shown a propensity to download costs instead. The budget could have redressed that balance, but shamefully, the Conservatives have failed to do so in any meaningful way.
Job creation is not the only area in which the government has failed to show leadership when it comes to transitioning from one of the worst recessions on record into a more sustainable economy that benefits all Canadians. Just ask the over 1.5 million Canadians who have lost their jobs. The Conservatives' first order of business should have been to stave off the crisis awaiting the 807,000 EI recipients who are poised to run out of benefits in the coming months.
I was proud to table a comprehension motion on EI reform in the House on behalf of our caucus over a year ago. That motion was passed by a majority vote of MPs. Yet benefits still have not been extended or expanded in a comprehensive way to help those Canadians who are struggling in this very tough job market. It is absolutely imperative that we act to protect the jobless, and there is no time to waste. The future of entire families literally hangs in the balance.
The same is true of pensioners and seniors. Let me just focus on two issues here: workplace pensions and public pensions. As companies teeter on the brink of bankruptcy, unfunded pension liabilities are being exposed that leave workers, at best, worried, and at worst, completely unprotected after years of contributing what should have been their retirement income security. We must act now to protect workplace pensions so Canadians can retire with the dignity and respect they have earned. The throne speech promised such action on Wednesday, but Thursday's budget failed to deliver. That has got to be a record by any government of breaking its promise to Canadians.
Similarly, the Canadian government failed to expand the ability of Canadians to invest in low cost, secure, predictable public pensions through an enhanced CPP. The NDP tabled a motion to that effect in the House, and like my EI motion, it too was passed. Again, anxious retirees are still waiting for action.
By definition, seniors do not have a lifetime to wait. They deserve action and they deserve action now. That is particularly true of Canada's most vulnerable seniors, those who are receiving the GIS. The rate of seniors living in poverty doubled from 3% in the mid-1990s to 6% in the mid-2000s. The maximum GIS benefit intended for the lowest income seniors was approximately $650 a month in 2009. That is only $50 more than it was in 2005. The maximum annual old age security and GIS benefits are approximately $14,000, which is $4,000 below the poverty line in most cities. We can and must lift Canadian seniors out of poverty by improving the GIS.
I know my time here is almost up, but let me just conclude with one final comment. Like most Canadians, I recognize that in the long term, we cannot spend more than we collect, but budgets are about choices. By putting an end to the corporate tax cuts, we can afford to help those who are the most vulnerable in this economic down. Hard-working Canadians and the seniors who built our country deserve nothing less.
Let me wrap up by trying to be constructive. I move a subamendment to the amendment that is before the House today:
That the amendment be amended by:
(a) adding immediately before words “the oil industry”, the words, “large banks, big corporations; and
(b) adding after the word “supplement”, the words “allow for the full protection of pensions in all cases of corporate insolvency, work for increases to the CPP and QPP”; and
(c) by adding after the word “commission”, the words “the implementation of the harmonized sales tax in Ontario and British Columbia, and eliminates all references in the budget designed to weaken our national commitments to a clean energy future”.