Dave Van Kesteren

[Unemployment Rate, April 29th, 2015]

Mr. Speaker, I appreciate this opportunity to address my colleague's motion acknowledging the government's actions to create jobs, a record of jobs, economic growth and putting more money back in the pockets of families and businesses. Or did I read this motion wrong?

In all seriousness, Canada has demonstrated one of the best economic performances among G7 countries over the recovery. Canada has recovered both more than all of the output and all of the jobs lost during the recession. However, far more than that, we have created over 1.2 million net new jobs since the depths of the downturn. In fact, more Canadians are working today than at any other time in our history.

The hon. member may not recognize this, but as a result of our government's efforts, Canadians have maintained a high level of labour market participation despite global economic difficulties, and Canadians are wealthier for their work. In fact, the Canadian middle class is among the richest in the developed world.

Canadians are not just wealthier, they are benefiting across the board from economic improvements introduced by our government that allow them to make the most of their wealth and support further jobs and growth going forward. Canadians can be confident that the foundations we have laid over the past seven years have set us on the right course. Economic action plan 2015 is no exception.

Economic action plan 2015 renews our government's promise to Canadians that we will continue to do everything we must to ensure Canada's future is secure and prosperous.

First, our government has fostered an environment in which businesses can grow and contribute to Canada's long-term prosperity.

To help small businesses grow and create jobs, the government has delivered substantial ongoing tax relief to small businesses and their owners. On September 11, 2014, the government announced further action to create jobs, growth and long-term prosperity with the introduction of the small business job credit. This credit is expected to save small businesses more than $550 million over 2015 and 2016. This measure builds on previous measures, such as lowering the small business tax rate to 11 % from 12% and continuing to increase the lifetime capital gains exemption.

Economic action plan 2015 goes even further than that, and introduces the largest tax cut for small business in 25 years. We will be lowering the small business tax rate from 11% to 9% by 2019. Almost 700,000 small businesses will benefit annually from this lower rate. It is estimated that this one measure will reduce taxes for small businesses and their owners by $2.7 billion over the 2015-16 to 2019-20 period.

To help illustrate for the hon. member how much small businesses are benefiting from the actions of this government, consider the example of a business with $500,000 of taxable income. As a result of the actions taken prior to this recent announcement to reduce the small business tax rate and increase the amount of income eligible for that rate, the amount of federal corporate income tax paid by this small business would be 34% lower in 2015 than in 2006.

When the proposed reduction in the small business tax rate takes full effect in 2019, the amount of federal corporate income tax paid by this small business would be 46% lower than in 2006. In other words, for this small business with $500,000 in taxable income, our government's measures provide an annual tax reduction of up to $38,600 that can be reinvested in that business to fuel its growth.

The second opposition concern I would like to address is helping Canadian manufacturers create new jobs. Canada has not been immune to external developments, with weak external demand growth weighing on Canadian exports. Fortunately, Canadian manufacturers have taken the necessary steps to secure long-term success, and our government is there to help them every step of the way.

Since its creation in 2008, we have allocated $1 billion to the automotive innovation fund to support major new research and development projects and long-term investments.

Building on that success, economic action plan 2015 will provide $100 million over five years, starting this year, for the creation of an automotive supplier innovation program to help Canadian automotive suppliers gain a competitive edge through new innovative products and processes. This program will help reduce the risks involved in bringing research and development projects to commercial viability by supporting product development and technology advancement on a cost-shared basis with participating firms.

At the same time, we must give manufacturers the tools they need to invest in the products and the jobs of the future. This is why our government introduced substantial support for this sector in economic action plan 2015 in the form of an accelerated capital cost allowance for machinery and equipment used in manufacturing and processing.

This new I0-year tax incentive will result in a deferral that is expected to reduce federal taxes for manufacturers by $1.1 billion for the period from 2016-17 to 2019-20. Providing this new incentive for a 10-year period gives businesses greater planning certainty for larger projects that take time to fully realize, including those with multiple phases.

Today and in the years to come, this low-tax environment will play a crucial role in supporting economic growth and enabling businesses to invest more of their revenues back into their operations.

With economic action plan 2015, our government has earned an international reputation for responsible economic and fiscal management. We are creating growth and lowering taxes, all the while following through on balancing the budget. We will secure lasting, long-term economic prosperity, prosperity with which even the opposition members cannot disagree.

[International Trade, March 30th, 2015]

Mr. Speaker, today the Prime Minister is at the Honda Canada plant in Alliston, Ontario, where he announced that for the first time, Honda will be using one of its Canadian facilities to produce vehicles for export to Europe.

Can the Parliamentary Secretary to the Minister of International Trade share with the House why this announcement is so important for Ontario's automotive and advanced manufacturing sector and indeed for all Canadians?

[Petitions, February 27th, 2015]

Mr. Speaker, I have a number of constituents who have signed a lengthy petition that Canada adopt international aid policies that support small family farmers, especially women, and recognize their role in the struggle against hunger and poverty; to ensure that Canadian policies and programs are developed in consultation with small family farmers; and to ensure that the rights of small family farmers in the global south to preserve, use, and freely exchange seeds are protected.

[International Trade, February 18th, 2015]

Mr. Speaker, free and open trade generates jobs, growth, and long-term prosperity. Today Canada, the U.S. federal government, and the State of Michigan have concluded and signed a plan of arrangement regarding the U.S. customs plaza with a new Detroit River international plaza between Windsor and Detroit.

Can the Minister of Transport please update this House on this important project?

[Business of Supply, February 2nd, 2015]

Mr. Speaker, I have had the privilege to hear some good debate from both sides here today. We heard one side; then the other. I think the essence of the question is the European free trade agreement, which, when it becomes a reality, would eliminate tariffs. There is much talk about whether the government would compensate an industry if it were to suffer from the free trade agreement.

Few people know that in my riding of Chatham-Kent—Essex, we have the largest freshwater fishing port in the world, where we also do some fish-processing. One of the things that I hear repeatedly from the fish processors is, “We can't get people to do the job.”

I want to lay this question out. The member may not have the answer but perhaps someone from the caucus would be able to give me an answer. Does she have the same situation there? Are they having a tough time getting people to work in these fish-processing plants?

Second, does it not stand to reason that the reduction of those tariffs, which in some cases are 20%, would make the fish-processing plants much more competitive and enable them to pay their workers more money and, subsequently, increase employment on the island?

[Business of Supply, January 27th, 2015]

Mr. Speaker, I wish I had more time to talk about the charge that this government inherited a surplus, which would be a long discussion, because we could then say that the deficit was a result of previous Liberal governments in the Trudeau era. This government in 2006-07 paid off more debt than any other government in the history of Canada.

When the member talks about what we will do and the hyped up pre-election preamble, what we will not do is what his leader did in southern Ontario, where he told people that they needed to stop thinking about manufacturing jobs and start thinking about something else. We certainly will not do that. We will continue to do what has been proven, to the point that we are the envy of the G7. We will continue to move in that direction and remain the envy of the G7 and the rest of the world.

[Business of Supply, January 27th, 2015]

Mr. Speaker, in my speech I talked about the fact that Canada ranks as the second most attractive place in the world to do business after Hong Kong. The reason for that is the low cost of starting a business in Hong Kong, which I would suggest to the hon. member is also the case here in Canada. On a consistent measure we have lowered red tape.

We have consistently lowered taxes for small businesses and it is our intent to continue to do that. We have lowered taxes in other areas. I would point to the fact that the HST in the province of Ontario was moved down by two points. Taxes were lowered across the board for all Canadians.

The member is right that we must focus on small businesses and the need to grow small business, because that is where the majority of employment will take place. It happens not only with the lowering of business taxes, which is something that this government has done, but also with an overall lowering of taxes so that Canadians have more money in their pockets. It is the mom and pop shops and the smaller manufacturing areas in this country that employ those people who will then be in a position to have more money to spend. That money spreads into the economy and makes our economy stronger. That is certainly the intent of this government.

[Business of Supply, January 27th, 2015]

Mr. Speaker, I will be sharing my time with the member for Wild Rose.

I appreciate this opportunity to address my colleague's motion on the immediate presentation of an economic and fiscal update to Parliament, outlining the state of the nation's finances in light of recent developments.

The hon. member may have missed the economic and fiscal update that was tabled only two months ago. How quickly we forget. Allow me to refresh his memory on some of the key points that were discussed in that update.

First of all, in the global context, with an election on the horizon it is no surprise that the opposition has only just recently taken notice of developments in the Canadian and global economies. On this side, however, we have been relentless in our pursuit of growth and jobs following the downturn of 2008 and 2009. That period saw the worst global recession since the Great Depression, and it was followed by one of the worst global recoveries. We see signs of this challenge everywhere today, but we pointed out many of the risks in the economic and fiscal update in November.

European debt is too high. Inflation was -0.2% in December. The eurozone economy is sputtering. It has been stop and go for three years now. Last year it was expected to have grown by just 0.8%, which is a global concern, given that it is the world's second-largest economy. The continent's three largest economies—Germany, France, and Italy—contracted in the second quarter of 2014 and remained weak in the third quarter. Just last week, the European Central Bank significantly expanded its bond-buying program, now estimated to reach €1.1 trillion, plus possible extensions, to ward off deflation and revive a struggling euro area economy.

Beyond Europe, the growth rates of key emerging economies—China, India, and Brazil—are also losing steam. Geopolitical conflicts in Ukraine, Iraq, and Syria have complicated the economic recovery and fuel uncertainty globally.

We have been saying it for years, and it remains just as valid now as it was in November: the global economy is fragile. Growth cannot be taken for granted. In many countries, it demands excruciating decisions and hard work from everyone.

Let us turn to Canada's performance. For years, Canada did that hard work, and it paid off. While the global recovery has been challenging, Canada has led the way to economic growth. A downturn that did not start here hit us later than most and affected us less deeply, but Canada emerged from it quickly and in better shape than other developed economies.

We have recovered all of the jobs lost during the recession. In fact, our Conservative government has created over 1.2 million net new jobs since the depths of the recession. While others are raising taxes to pay down deficits, our government has been reducing them. Not since John Diefenbaker was Prime Minister over half a century ago has the overall federal tax burden been this low. That is why the last economic and fiscal update introduced new tax cuts for hard-working Canadian families.

After years of hard work, Canada's free trade network now touches every corner of the globe. I cannot overstate the importance of this to the Canadian economy. Allowing Canadian manufacturers to export their products to over half of the global economy is a significant advantage in the competitive global market.

Our labours have not gone unrecognized, except perhaps by our hon. colleagues opposite. Allow me, then, to refresh their memories on some of our government's accomplishments.

Bloomberg ranks us as the second most attractive place in the world to do business. For those wondering who was first, it is Hong Kong, and that is due to the low cost of starting businesses.

Both the IMF and the OECD are expecting Canada to become the strongest growing economies in the G7 this year and the next. The World Economic Forum rated Canada's banking system as the soundest in the world for the seventh year in a row. Additionally, four credit rating agencies—Moody's Investors Service, Fitch Ratings, Standard & Poor's, and DBRS—have reaffirmed their top ratings for Canada. It is expected that Canada will remain in its AAA rating in the year ahead.

Most importantly, we have created the world's strongest middle class, according to The New York Times.

At the same time, we have joined our international allies in applying economic sanctions to the rogue Putin regime. These sanctions are now taking their toll on the Russian economy. Its credit rating was just classified as junk, a far cry from our AAA rating.

Clearly we are on the right track, and we must stay on the right track. We must relentlessly choose prosperity, not reckless spending schemes that will consign our country and our children to remorseless decline. This government chooses prosperity. I know Canadians do as well.

Where does the path to prosperity lie? It is in our low-tax plan for jobs and growth. Members may have already heard of the government's goals, but they bear repeating: keeping taxes low for Canadian families and job creators; equipping Canadians with the skills they need to pursue the jobs they want; investing in world-class research and innovation; reducing red tape and empowering businesses; responsibly developing our natural resource wealth; helping businesses succeed in the global marketplace by encouraging trade and foreign investment; and making historic investments in infrastructure, including our new Building Canada plan, which is the largest and longest federal infrastructure investment in Canadian history.

These measures are built on a rock-solid foundation—our government's commitment to return to balanced budgets in 2015.

In the worst of the recession, Canada's deficit stood at over $55 billion. Today we are on track to eliminate the deficit, as the Minister of Finance has affirmed, and begin paying down the national debt. Let me say it again: we will fulfill our commitment to Canadians to balance the budget in 2015. This is a remarkable achievement when so many other countries are still locked in deep deficits; in fact, Canada's net debt-to-GDP ratio is less than half that of the G7 average.

It is not easy to return to balanced budgets; after all, budgets do not balance themselves. That requires a plan and the discipline to follow it, not just whipping up rhetoric when an election is close.

Canadians should be proud not just of our impending balanced budget but of how we got here. We repeatedly cut taxes, close to 180 times. We have increased transfer payments by 55% since 2006, reaching $65 billion this year. These transfers are used for key priorities such as health care and post-secondary education. We remain committed to keeping taxes low while increasing transfers responsibly as our economy grows.

What is not growing is the bureaucracy in Ottawa. Direct federal program spending has declined for the fourth year in a row. We have diligently controlled government spending, something that few nations have done, and we have done it while maintaining the programs and services Canadians rely on.

This has meant that we have been able to provide even more support for hard-working Canadian families. I am referring to our government's latest steps to help Canadian families prosper. These actions include proposals to enhance the universal child care benefit, introduce the family tax cut, and increase the child care expense deduction dollar limits.

Our government understands the basic truth that no government can tax its way to prosperity and no government can indefinitely spend more than it earns.

We cannot take this prosperity for granted. This government never took prosperity for granted, and we have worked hard to ensure that we are in a stronger position than we were in 2008. We have a duty to manage our finances responsibly.

Under our Prime Minister's unwavering leadership, we will soon return to balanced budgets. Now is not the time for risky experiments. As I said in November at the time of the economic and fiscal update, Canada has come a long way, but we are not out of hot water yet. The global economy remains fragile. That it is still fragile two months later should not be a surprise to the hon. member. Fortunately, our government has a plan to meet these challenges, a plan that is working, and we need to stay the course. That is why I call upon this member and all hon. members to focus not on this motion but on working together to make the greatest country in the world even better.

[Economic Action Plan 2014 Act, No. 2, December 9th, 2014]

Mr. Speaker, I too, like my colleague across the way, had difficulty believing some of the things I heard. I say that because, along with the member, I serve on the finance committee and shared the same testimony that he shared.

I could probably mention a number of things, but I want to talk about his reference to the Chief Public Health Officer and his understanding of what he heard, which was much different from what the rest of us heard. The Chief Public Health Officer actually said that he was quite in favour of the changes and thought that the changes would have a positive effect on his job and his ability to do the job.

I am wondering if the hon. member could maybe let the House know what he heard. I think he was in committee at the time, and I would ask that he make a comment on that as well.

[Economic Action Plan 2014 Act, No. 2, December 9th, 2014]

Mr. Speaker, I have to laugh at the last question of the hon. member. I understand that he has not been here that long, but he was here in 2008.

I would like to give a little history lesson before I ask my question.

In 2008-09 Canada suffered through a horrendous recession. Some would call it a depression. Canada is the only country in the G8 that has moved out of a deficit situation. We were able to do that and manage the economy to the degree where today we are looking at a surplus position in our budget rather than a deficit.

Could the parliamentary secretary tell us what difference that is going to make and what the government can do for families in general? Could he elaborate on that and tell the House why it is so important?