Chris Warkentin

[Business of Supply, February 5th, 2009]

Mr. Speaker, I do not think I have had the opportunity to congratulate you on your new posting since the last Parliament.

Today I am pleased to join the debate on Canada's competitiveness and place in the world, specifically with regard to the stimulus bill that is being discussed in the United States House of Representatives. Within the stimulus bill, there is a provision that would only allow steel and iron from the United States be used for infrastructure projects as identified within the stimulus bill.

Today we are cautiously encouraged to the news that the United States Senate has voted in favour of softening the buy American provision within this massive stimulus package. Our government has worked extremely hard with our American counterparts and we have made some great headway. We will continue to see this through to a successful conclusion.

Why we are concerned about this issue is simple. It has been identified already in the House. Our government recognizes that in this time of global uncertainty, protectionism is not the answer.

We know from history that protectionist legislation winds up not only hurting the economy in which that protectionist legislation is moved, but it invariably hurts economies that surround it. We are telling our friends in the United States that now is not the time to shut the door. Seven million U.S. jobs are supported by trade with Canada.

The reality is our North American economy is an integrated one and the stimulus package that is being put together will impact and has to benefit not only the Americans but also trading partners. As long as governments do not succumb to the lure of protectionism, the spillover effects of this stimulus package can be overwhelmingly positive. Given the magnitude of the challenges that we all face, no individual country is likely to be able to save itself without help from trading partners.

We are living in a world where economies are tightly interwoven, in a world where global supply chains are intertwined, a world where not only capital and products but ideas that our future travel great distances at an ever increasing velocity.

It is worthwhile to remind ourselves that our closest economic relationship in the world is the one that we share with the United States. Raw materials and finished goods, services, finance and people criss-cross our border daily in volumes that are unmatched anywhere else in the world.

We all know the numbers: $1.7 billion in two-way trade, 45,000 trucks and 300,000 people move across the border each and every day. The United States is one of our largest sources of foreign investment and innovation, and we are its largest and most secure supplier of energy products, as well as being its biggest customers for agricultural exports.

As the U.S. economy flourishes, so does our economy. All this contributes not only to our prosperity, but we believe it gives us a special understanding of our neighbours to the south.

I think we would all agree that there is a strong link between a healthy Canadian industry and our own competitiveness. Obviously competitiveness is a concern to all Canadians, to this Conservative government and to all members of the House.

The government is well aware that a central challenge facing businesses today is to improve competitiveness by increasing the value of product lines and reducing production costs. This is especially the case for the manufacturing sector, which has been adjusting to higher commodity prices, increased international competition and global economic challenges.

The first thing I would note is our global competitiveness has improved significantly in recent years. According to the Global Competitiveness Report 2008-2009, published by the World Economic Forum, Canada's world ranking in global competitiveness moved up from 15th in 2004 to 10th place in 2008.

This report highlights that Canada's improvement is mainly due to our superior transportation and communications infrastructure. It is also due to our highly efficient markets, particularly the labour and financial markets. Our education system also got excellent marks for its quality. This means that Canada's workforce is top quality and is well positioned to adopt the latest technologies for productivity enhancements and to create new high value-added products for the world markets.

As we all know, the economies of the world are facing a deep global recession that will draw upon all of our resourcefulness and best cooperative efforts. Governments around the world have found themselves moving into turbulent financial and economic waters, and certainly Canada is not immune. However, there is a general consensus among economists and experts that the Canadian economy will perform better while many other industrialized OECD countries will struggle over the next two or three years. This is largely due to the core strength of our economy.

The balance sheets of our financial institutions are also in relatively good shape. Canada's financial system is one of the best in the world. It is sound, well regulated and well functioning. Nevertheless, because of globalization and the interdependence of the world financial markets, the Canadian economy is impacted by the adverse consequences of the current crisis.

Looking beyond the current market turmoil, our focus should be on improving our productivity, as it is the fundamental determinant of our quality of life and our competitiveness.

When the G20 leaders met in Washington, D.C. in November 2008, there was a wide range of views regarding both the nature and the seriousness of the current situation. In spite of these differences, the G20 leaders were able to agree to provide timely stimulus to domestic demand while also maintaining long-run fiscal sustainability.

I am proud to say that the Conservative Party of Canada is strongly committed to supporting a productive economy. Our government is committed to creating a competitive environment and putting in place support for business that encourages innovation and entrepreneurship, and rewards investment.

Canada's economic action plan, to which the members opposite have given their support, addresses both the short-term downturn and the financial constraints, while also stimulating productivity in the long term. It will stimulate the economy through investments to build infrastructure, by reducing taxes and freezing employment insurance rates, by stimulating housing construction, by improving access to credit, and by strengthening Canada's financial system, helping Canadians access training programs, and supporting businesses and communities.

Our economic action plan will provide over $20 billion in new tax relief over the 2008-09 year and the following five fiscal years. The economic action plan has launched the Canada skills and transition strategy to help Canadians weather the economic storm and provide them with the necessary training to prosper in a changing economy.

This government is also taking significant action to assist key sectors, such as forestry, agriculture, shipbuilding, automotive and aerospace industries.

To alleviate the pressure on financing, we increased the resources, scope and action of Export Development Canada, EDC, and the Business Development Bank of Canada, BDC, to ensure they have the extra financial capacity to provide firms with financial assistance. Last year we approved a $2 billion increase in borrowing authority of Export Development Canada, and an increase of $1.8 billion in the borrowing capacity of the Business Development Bank of Canada. This is enabling them to offer additional credit to their clients. This is in addition to the $350 million in capital committed to each of these financial crown corporations to support about a further $3 billion in increased credit.

The way we mutually manage our border with the United States is important to our competitiveness. Our gateways to the United States are of particular concern to our highly integrated North American car industry. Our government knows that we cannot remain competitive with a border that clogs and slows down the smooth operation of an integrated industry.

Our economic action plan is accelerating and expanding federal investments in infrastructure with almost $12 billion in new infrastructure stimulus funding over the next two years. This is in addition to $33 billion in funding that was provided in budget 2007 to build modern infrastructure to keep these gateways open for business.

With many companies operating on both sides of the border, one-third of our trade is between related firms, it is in the national interests of both Canada and the United States to work together to find constructive solutions to the economic crisis. This is particularly critical in those industries that are especially closely integrated. For example, the auto sector represents 12% of Canada's manufacturing base and employs 130,000 people in Ontario alone. Vehicle production represents one-fifth of the North American total. The majority of this activity is in support of the big three automakers.

Our economic action plan also streamlines the federal approval process so that more provincial, territorial and municipal projects under the building Canada plan can start in the upcoming construction season. These investments will support productivity and competitiveness for years to come.

Advantage Canada provides a detailed policy agenda which builds on Canada's strengths and seeks to improve our long-term competitiveness performance. Through ongoing reductions in corporate taxes, we are on track to establish the lowest rate of tax on new business investment in the G7.

Our Conservative government is making it a priority to regulate smarter and reduce the paperwork burden on small and medium size enterprises. We increased the amount of small business income eligible for a reduced federal tax rate of 11% to $500,000 from its current limit of $400,000.

Our government created the Competition Policy Review Panel to look at Canada's competition and investment policies. It submitted its final report last June. We will proceed with legislation to modernize and improve Canada's competition and investment laws by implementing many of the recommendations of the Competition Policy Review Panel. This will make product and financial markets more effective and efficient to promote investment and innovation and to create jobs for Canadians.

Our government has also adopted a number of measures to support innovation in recent years. Budget 2008 provides reforms to enhance Canada's scientific research and experimental development and creates an automotive innovation fund to support strategic large-scale research and development projects to build innovative, greener and more fuel-efficient vehicles. Recently, the Prime Minister committed to boosting the value of this fund by $200 million so that more investments in state of the art assembly plants and leading-edge technologies can be made.

We are aggressively opening markets abroad for Canadian goods, services and investments through the conclusion of ongoing trade negotiations. The Minister of International Trade is working to fight protectionist sentiments among our trading partners, and we will launch new initiatives, such as an economic partnership with the European Union.

Clearly, this Conservative government has taken many significant steps and has made significant investments to improve Canada's competitiveness.

As the Minister of Finance laid out in Canada's economic action plan, our government will continue to manage spending responsibly. We will ensure that the programs and services are efficient and aligned with the priorities of Canadians. We will take steps to enhance credit availability for Canadian businesses that are affected by the global credit crisis. We will continue to consult with the provinces and territories and Canadians to develop responses to short-term economic issues while continuing to implement our long-term economic plan.

Finally, this Conservative government recognizes that free, open and fair trade can help Canada weather this financial storm. As the Minister of International Trade stated in the House earlier this week, “With the current crisis squarely upon us, it is crucial to resist the temptation to move towards protectionism. History showed during the Great Depression that imposing trade barriers is not the answer”.

The United States has seen its manufacturing base reduced, its deficits swell and the rise of new global competitors. The financial industry crisis and the reversal of the housing market have meant a reduction in confidence and even fear of the future. It is therefore not surprising that the voice of protectionism is heard in difficult times.

As I stated earlier, thanks to the hard work of this Conservative government, the team of my colleagues and our government ministers, we are making great headway. We are encouraged by the softening of the buy American provisions in the United States stimulus package. We are also encouraged by the recent statements by President Obama. The Minister of International Trade will continue to stay in close contact with his American counterparts and to monitor this legislative process very closely.

[Resumption of debate on Address in Reply, November 20th, 2008]

Mr. Speaker, I congratulate the hon. member on his re-election to the House.

I am wondering if the hon. member would comment on two different things.

First, Ontarians remember something they fondly, or not so fondly, recall as “Rae days”. I know the hon. member has some commentary on the politics of Ontario.

The second issue I would bring to the hon. member's attention or recollection is the fact that--

[Resumption of debate on Address in Reply, November 20th, 2008]

Mr. Speaker, first, I congratulate the member for Esquimalt—Juan de Fuca on his recent election victory. I know it is one of many in the past.

The member brought some commentary with regard to the health care system to the floor of the House of Commons. It seemed during the election campaign that we, as members of Parliament and as candidates for respective parties, were pressured not to comment on anything but the status quo when it came to the health care field.

The hon. member has brought to the floor some discussion with regard to alternatives to the current system, something that is different from the status quo in terms of possibly the delivery of health care.

He was a little vague in terms of what specifically he was proposing, so could the hon. member bring a bit more depth to his suggestion that things might be done differently within the health care system?

[Canadian Wheat Board, June 9th, 2008]

Mr. Speaker, the Canadian Wheat Board released its annual survey results last week and now the Liberals are retreating with their tails between their legs. The board now has provided us with the detail that three-quarters of western farmers want marketing freedom for their own barley.

I know that farmers in my own riding have consistently demanded the ability to market their own barley. Can the Minister of Agriculture tell the House what else we were able to find out in those survey results and how it affects the Canadian Wheat Board?

[Financial Administration Act, May 30th, 2008]

Mr. Speaker, with regard to the implementation of the requirements of the bill, there are a number of different points.

It is important for parliamentarians and Canadians in general to know that departments, agencies and crown corporations do in fact collect this financial information on a regular basis. However, the information is not always passed on to parliamentarians and Canadians until the money is long spent. Sometimes that is at the end of the year and sometimes it is even after that.

What the bill will ensure is that on a quarterly basis we will be able to see the money that has been spent within departments. What we will be doing is working with the different agencies, the departments and the crown corporations to bring this information together on a quarterly basis, and then it will be presented to Parliament on a quarterly basis.

[Financial Administration Act, May 30th, 2008]

moved that Bill S-201, An Act to amend the Financial Administration Act and the Bank of Canada Act (quarterly financial reports), be read the second time and referred to a committee.

Mr. Speaker, I appreciate the opportunity to stand in the House again this afternoon to speak. This time it is with regard to Bill S-201.

Mr. Speaker, before I get started, I want to commend you and the other chair officers who have been working late hours the last couple of nights and yet you are still here on Friday afternoon. I would like to commend you for your diligence in this respect.

Today I am here to talk about Bill S-201, An Act to amend the Financial Administration Act and the Bank of Canada Act (quarterly financial reports).

I will begin by commending Senator Hugh Segal who brought this forward and has been working diligently with respect to the matters that are addressed in this bill and issues of accountability and transparency that the senators and I share.

I know this bill had a previous incarnation in the Senate before prorogation last fall but, unfortunately, it did not get out of committee before prorogation and therefore had to go through the whole process again.

I know that the careful consideration that was given by the hon. senators in the other place, especially within the national finance committee, is greatly appreciated by all members of the House. My private member's bill, Bill C-428, is in the other place and is going through the same consideration, the same thoughtful process that I know this private member's bill has gone through. I would like to commend the senators who worked diligently not only on this bill but also on my bill and many of my colleagues' bills as well.

The bill that we are here to discuss is Bill S-201, which seeks to amend the Financial Administration Act and the Bank of Canada Act. The requirements that would change are as follows. This would require that all departments, agencies and parent crown corporations would table financial statements on a quarterly basis. The bill would create a more transparent financial management system in government and would allow parliamentarians and all Canadians to see the way the government is spending money and ensuring that it is delivering programs effectively.

I wholeheartedly agree with the objectives of this bill. It would ensure greater accountability and transparency of government. The good, hard-working Canadians who pay their taxes on a regular basis and the people from my constituency really deserve no less.

The objectives are really in keeping with our government's commitment to Canadians to increase accountability of government. Accountability is the foundation of Canada's system of responsible government. It is key to assuring Canadians and Parliament that public resources are effectively and efficiently used.

I am especially proud of the Federal Accountability Act that this government brought forward as its first piece of legislation because it provides Canadians with the assurance that the powers entrusted to government are being exercised in the public interest.

However, accountability does not stop there. It has to be throughout government. An accountable government ensures that Canadians' hard-earned tax dollars are not wasted and ensures they are invested in responsible and effective programs that meet Canadians' needs. In fact, the sound stewardship of Canadian tax dollars ensures they receive value for money, and that is a top priority for myself and our government.

There have been some important improvements brought forward by our government in working to ensure that Parliament has the information it needs to hold any government of any day to account. For example, we have made several improvements to the estimates documents to provide more meaningful information to parliamentarians and make these documents more user friendly.

The Treasury Board Secretariat has worked with departments and agencies to improve the quality of information presented for their individual requirements. This has resulted in better information describing the nature of transactions, including the offset of new spending requirements through the use of existing spending authorities.

In the past year we have made other changes, including provisions of clearer summary tables, a presentation of gross financial requirements for each organization and an explanation of the funds available to offset new spending requirements. These improvements allow hon. members in the House to get a better understanding of the government's spending plans and to ensure that they can hold the government to account.

We are also strengthening the oversight role in the use of public funds. The creation of a parliamentary budget officer is a long realized dream of my predecessor, the member from Peace River, whom I replaced, Charlie Penson.

After a decade of advocating for this officer of Parliament who would provide objective analysis to the nation's finances, Mr. Kevin Page was appointed by the Conservative government as our first Parliamentary Budget Officer, and that happened in March of this year. This is another move to realize a decade long dream of advancing transparency and accountability within government that my predecessor had and for which I know many members of the House have been advocating for nearly a decade.

This new officer of Parliament position was announced in the Federal Accountability Act and is now included within the Parliament of Canada Act. The person has three main responsibilities: first, to provide objective analysis to the House of Commons and to the Senate concerning the state of the nation's finances and trend within the general economy; second, he has the responsibility to undertake economic and fiscal research for House of Commons standing committees; and third, he estimates the financial cost of proposals currently or prospectively under consideration in either the House when requested to do so by a member or a committee of the Senate or the House of Commons, or a committee of both Houses.

In talking with the new Parliamentary Budget Officer, I had an opportunity to discuss the bill that is currently before us today, Bill S-201. I can say that our new officer of Parliament is very supportive of this new bill. It would actually improve his capability of helping out members of Parliament and senators.

In addition to the Parliamentary Budget Officer, the government has recently implemented a new expenditure management system as well. This system will rigorously and systematically assess all direct program spending and operating costs of major programs. Further, all government organizations are required to conduct their program strategic reviews to assess how and whether they are first, efficient and effective; second, able to meet the priorities of Canadians; and third, are aligned with federal responsibilities.

The first round of strategic reviews was completed in the fiscal 2007-08 year with departments identifying expenditures totalling some $386 million a year of program that are low performing or programs that are no longer needed.

In the fiscal year 2008-09, 16 departments and agencies are reviewing their program spending. This covers a total spending of $20 billion. These reviews will help us reduce spending in inefficient or ineffective programs and stop those that just do not work. These will help to ensure that every tax dollar that we collect, as government, is spent to deliver the necessary programs to Canadians. They will help us to control the overall growth of government spending.

This is simply good management. It is the same thing Canadian families to ensure they are spending efficiently. When they shift their priorities, they need to ensure they are living within their means. Governments should act no differently. That is good management, good government and it is good leadership for Canadians.

The first fruits borne by this more disciplined approach were announced recently in the savings of $386 million, money that will be redirected to new initiatives within departments or within the government at large.

Taken together with the key elements of this new expenditure management system, it will ensure that taxpayer dollars are well managed, that they are spent in responsible ways and that the management of doing this will ensure that the business of government is responding to the needs of Canadians.

I will now turn directly to the bill we are talking about this afternoon. The bill also supports accountability and the sound stewardship of all tax dollars. I will explain how.

By increasing the quality and frequency of financial reporting to Parliament and Canadians, the bill will ensure that they are informed of recent developments in government operations. As such, it will facilitate oversight by parliamentarians of government spending on a timely basis.

It is imperative that we have the correct information in a timely manner in order to combat waste of money. Every dollar the taxpayers pay must be treated with respect and must be closely monitored.

Let me step back for a second and outline how the current reporting system works. The government prepares a federal budget and summary financial statements on an annual basis. The Department of Finance also publishes a monthly fiscal monitor that reports on the government's overall fiscal results. While this report does contain some departmental information, it does so in such an aggregated way that it really only reflects government's performance overall.

This bill will require that all federal departments, government agencies and crown corporations would have to, in addition, submit quarterly financial reports to Parliament. This would be a substantial increase in the timeliness and quality of information reported to Parliament.

It is important to note that the Senate has already made some important improvements to the bill. For example, it was amended to require that financial statements are made public 60 days after the quarter end. This will provide for a more regular reporting timetable while lessening the burden on organizations. It will also avoid the need to defer the release of quarterly financial statements during recess or prorogation.

These are amendments that I thank the hon. senators for making, because they provide additional transparency for parliamentarians and Canadians.

I would also like to take this opportunity to explain that the government has been working diligently to strengthen financial management across the federal government. A sound system of financial controls improves this organization's ability to manage risk.

In this area, we have taken a number of steps to strengthen both our policy and our practice. For example, by March 2009, we should have in place a renewed financial management framework and policies that clarify the responsibilities and accountabilities of deputy ministers and senior officials within government.

In addition, our audit policy is strengthening public sector accountability, risk management, resource stewardship and good governance by reorganizing and bolstering internal audit functions on a government-wide basis.

This involvement ensures the independence of internal audit from line management by introducing two points. The first is departmental audit committees, which will include a majority of competent and experienced members drawn from outside the federal public service. The second is the organizational independence of chief audit executives, who will lead audit functions and must now report directly to the deputy head.

In conclusion, I want to ensure that there will be no doubt that the government is committed to improving accountability and increasing transparency. We have proven that not only in word but also in action. I will stand with hard-working taxpaying Canadians and support legislation like this bill, which will ensure greater transparency for government expenditures.

We support quarterly financial reporting requirements by all federal departments, agencies and parent crown corporations. The measures that I have talked about today will provide Canadians with the open and honest government they deserve, one that acts transparently, ensures value for money and demonstrates accountability.

[Carbon Tax Proposal, May 28th, 2008]

Mr. Speaker, over the past number of weeks, our suspicions have confirmed that rather than fulfilling their responsibilities here in the House, the Liberals have mistakenly understood their role as one of being in opposition to Canadian taxpayers.

In their most vigorous attack against Canadians so far, the Liberals have launched their carbon tax plan, effectively discriminating against Canadians, the most vulnerable industries and citizens in Canada.

If the Liberals ever get to implement their plan, we may as well say goodbye to our lumber industry and so long to our farmers. Manufacturers may not survive, truckers may as well park their trucks, and shopkeepers should just turn off the heat.

No matter what weasel words the Liberals use to sell their plan, their hidden agenda is to make Canadians pay like they never have before. Unfortunately the people who can least afford to pay for this will be hurt the most. Our seniors will pay. Low income families will pay. Our young families will pay.

This regressive tax proposal is one that will hurt the hard-working residents in far northern communities the most. The people in the Peace country should know that I will never support such a regressive and discriminatory carbon tax.

[Arctic Sovereignty, May 27th, 2008]

Mr. Speaker, since taking office, our government has been a strong defender of Canada's Arctic sovereignty.

We continue to develop a northern agenda that focuses on sovereignty and environmental protection, promoting economic and social development, and devolving governance so that northerners can have more control over their own futures.

Today the Minister of Natural Resources is in Greenland defending Canada's interest at the Arctic Ocean Conference.

Could the parliamentary secretary tell this House how the government is protecting Canada's north and our Arctic sovereignty?

[Polar Bears, May 12th, 2008]

Mr. Speaker, last week the Minister of the Environment held bilateral meetings with the United States Secretary of the Interior, Dirk Kempthorne. I understand that they discussed a number of important cross-border issues, including the protection of one of Canada's icons, the majestic polar bear.

I am wondering if the Minister of the Environment can update the House on the progress and the details of that meeting.

[Budget Implementation Act, 2008, May 9th, 2008]

Mr. Speaker, it is time to pass Bill C-50, this year's first budget implementation bill. Every day constituents are calling and writing asking when Parliament will approve this important legislation.

Constituents know that included in this bill are measures to implement the landmark tax-free savings account. While some politicians might think the best place for taxpayers' hard-earned money is in government coffers, this Conservative government believes that it is better to stay where it belongs, and that is in the hands of hard-working Canadians.

The tax-free savings account would allow Canadians to place $5,000 into a sheltered account and then watch their money grow tax free without the tax collector ever being able to put his hands on it again. Simply put, this is the best thing that has happened to the tax system since the RRSP.

Canadians want Parliament to act before summer. I am asking all members of Parliament to support the important measures in this bill. Let us make Parliament work and give Canadians the tax-free savings account before summer.