Earl Dreeshen

[Economic Action Plan 2015 Act, No. 1, May 14th, 2015]

Mr. Speaker, sadly I know a lot of that, after having been a hospital board member and chairman for a number of years, back in the 1990s when the money was ripped out of the provincial coffers for social programs, as well as for health care. It was masterfully done, though, because if we ever listen to anybody at this point in time, they will say, “Remember how Ralph Klein destroyed the health care in Alberta”. It is not true. The dollars were taken away from the province by the Liberal government, and this is an issue that can never be let go.

[Economic Action Plan 2015 Act, No. 1, May 14th, 2015]

Mr. Speaker, with all due respect to the member opposite, it is not true.

Those who do not have a lot money also do not have a lot of opportunities or a lot of instruments for saving. This is one they can look at and deal with. We can see that it happens. When seniors are being forced to take money out of other various financial instruments, they want some place to put it. They are not necessarily going to be spending it all at that point, so they need to have that type of flexibility. It is important to recognize that.

All one has to do is go through the numbers. I went through that. I said that of the total number of people who have maxed out their TFSAs, 60% earned less than $60,000. That is $5,500 per year they have been putting in maxing out their TFSAs. There are lots of other opportunities for investments for some of his friends, I guess, who are in that $200,000-plus club, but they will not be using a TFSA as their main instrument for investment.

[Economic Action Plan 2015 Act, No. 1, May 14th, 2015]

Mr. Speaker, I certainly do not agree with their comments. Of course, I do not mean the opposition's comments particularly but the comments of the person the member was quoting. I have heard it mentioned by the Liberals that if we give people money, they are going to spend it on popcorn and beer. I have heard that, but I have not seen that from any credible source anywhere else.

It is rather important that people recognize some of the help that is going to be there for Canadians and certainly for families with children. One of the things we continue to hear, which I do not think people recognize, is that increasing the child care expense deduction dollar limit would allow more money to come into a family unit. If it was increased by $1,000 for every child, which is part of the budget implementation act, it would also help on the other side. The concept is that those who have less money would be taxed less, so there will be more dollars in their pockets.

I have trust in Canadians to handle their funds.

[Economic Action Plan 2015 Act, No. 1, May 14th, 2015]

Mr. Speaker, I rise today to outline some of the reasons I will be supporting our government's budget and its budget implementation bill, Bill C-59.

Before I go into the details about the new investments and the tax relief the budget proposes and how Bill C-59 would make this happen, I want to stress how important it is that our government has had all of these significant achievements while balancing the budget. An election promise made is an election promise kept.

As a result of our government's fiscal management, our country emerged from the recession faster and stronger than virtually any other advanced economy. When the recession ended, we charted a course to a balanced budget, but not by following the Liberal approach to budget management of making drastic, sudden cuts to social and health care transfers, or by raising taxes. Instead, we did the opposite, increasing provincial transfers to record levels to help the provinces get their fiscal houses in order and lowering taxes to put money back into the pockets of families and small businesses.

To the first point, Alberta alone would receive $5.5 billion in transfers this year, which would be an increase of 145% over those of the previous Liberal government.

We then focused on controlling operating expenses for federal departments by reviewing all spending to make government operations more efficient. Using this approach, since the height of the great recession the deficit has been reduced from $55.6 billion to a surplus of $1.4 billion for 2015-16.

Due to the growth in Canada's economy and the elimination of the deficit, our total government net debt burden is the lowest of any G7 nation and among the lowest of the advanced G20 countries.

As a result of our efforts, our government has been able to cut taxes 180 times, resulting in our country's lowest tax burden since the 1950s.

To ensure that Canada keeps its fiscal house in order, economic action plan 2015 includes a number of important measures to help Canada stay on the right track, most notably through balanced budget legislation.

Part 3, on page 38 of Bill C-59, presents the framework for this balanced budget legislation by mandating that should Canada again enter into deficit, the finance minister would be required to testify before the House of Commons Committee on Finance within 30 days and present a plan, with concrete timelines, to return to balanced budgets.

Moreover, should the deficit be due to a recession or other extraordinary circumstances, operating spending would be frozen, as would the salaries of cabinet ministers and deputy ministers government-wide.

If, on the other hand, the deficit was due to mismanagement, operating budgets would be frozen automatically, and the salaries of cabinet ministers and deputy ministers alike would be reduced by 5%.

This approach would ensure that increases in spending that might be required to respond to a recession, war, or some natural disaster would be temporary, targeted, and timely.

In central Alberta, one of the key pillars of our local economy is agriculture. This budget, like previous ones, would continue to support agriculture and farmers in our great region and throughout all of Canada.

Agriculture is truly the backbone of our nation. As a farmer, I understand the difficulties individuals in the agriculture sector face. Economic action plan 2015 would embrace the economic importance of agriculture by increasing the lifetime capital gains exemption to $1 million for farmers and fishermen, allowing them to keep more of their lifelong earnings for retirement.

Additionally, this budget would provide funding to the Agriculture and Agri-Food Canada Market Access Secretariat, allowing the agriculture sector to take advantage of new free trade deals to expand and diversify into new markets.

The economic action plan of 2015 would build upon previous support for farmers and agriculture, including over $3 billion in investment, including provincial and territorial contributions, toward innovation, competitiveness, and market development for Canada's agricultural sector under Growing Forward 2.

We have also fully delivered on our government's commitment to marketing freedom by increasing marketing choice for western Canadian grain farmers by facilitating the commercialization of the Canadian Wheat Board, which will ensure a strong and competitive grain handling and shipping network across Canada.

Another major issue that is quite close to my heart is, of course, our government's support for seniors. Through this budget, our government has proposed a number of changes to help make seniors' lives better and to help them stay in their homes longer.

Having just a small amount of time, I can only focus on a few of the many policy initiatives our government has proposed. The first I would like to speak to is the increase in the tax-free savings account.

Seniors have embraced the tax-free savings account for their saving needs. This budget, through the BIA, proposes to increase the annual contribution limit to $10,000. This, coupled with changes to RRSP withdrawal amounts, would provide seniors with even greater opportunities to manage their life savings.

As of the end of 2013, nearly 11 million individuals had opened TFSAs, and the total value of assets held in TFSAs was nearly $120 billion. While the opposition continues to spread misinformation that the TFSA accounts are only for the rich, the facts cannot be overlooked. In the income category of $20,000 to $25,000, over 124,000 Canadians maxed out their limit. Of those who have maxed out their TFSAs, 60% earn less than $60,000. Some 856,000 Canadians aged 65 and over have maxed out their contributions, and another 1.3 million 55 and older have done the same. Close to 2. 7 million seniors had TFSAs by the end of 2013, and 60% of seniors who had TFSAs earned less than $40,000.

I think this is clear proof of how tax-free savings accounts are beneficial for all Canadians and are especially embraced by seniors and middle- to low-income individuals.

The second major policy change to support seniors I want to focus on is one that would help seniors stay in their homes longer. This is important and much needed, because as seniors age, their homes become increasingly less accessible, and they are often forced to move into more accessible housing, such as retirement and nursing homes. This can be incredibly difficult and stressful.

Our government recognizes the challenges seniors face in remaining mobile and independent and as a result has introduced a new home accessibility tax credit. This proposed tax credit would be for home improvements that would allow a senior or a person eligible for a disability tax credit to be more mobile, safe, and functional within his or her own home. This 15% non-refundable income tax credit would apply to up to $10,000 in eligible home renovation expenditures, providing up to $1,500 in tax relief. Through the home accessibility tax credit, Canadian seniors would be able to stay in their homes longer, I cannot stress enough how important that is.

The last initiative I want to talk about is the extension of the employment insurance compassionate care benefit from six weeks to six months. This is important to all Canadians, because from time to time, a large number of Canadians are forced to leave their jobs to take care of their loved ones. This can put a huge financial stress on families. Our government has recognized this problem, and through economic action plan 2015, an allocation of up to $37 million has been made annually to extend employment insurance compassionate care benefits. This would help reduce the stress at a very stressful time and help families help themselves.

In summary, it is clear that our government's economic action plan of 2015 and this budget implementation act, which sets the framework for legislative change, would be beneficial for all Canadians.

Our expanded limit for tax-free savings accounts of $10,000 would allow hard-working Canadians to save more.

Farmers throughout Canada would continue to benefit from our aggressive trade policy, which has opened up new markets that will help grow our agriculture sector and our economy as a whole. The increase in the lifetime capital gains exemption would give farmers and fisherman more money they can use for retirement.

Through our balanced budget legislation, future generations would not live in fear of being saddled with irresponsible spending and mountains of debt.

All in all, this entire budget is something to be proud of, and I encourage members of the opposition to join me in supporting it.

[Economic Action Plan 2015 Act, No. 1, May 14th, 2015]

Mr. Speaker, I would like to respond to some of the questions I just heard and give the member an opportunity to talk about those. Of those who have maxed out their TFSAs, 60% earned less than $60,000, which is contrary to what the member opposite just said. There are 856,000 Canadians age 65 and over who have maxed out their contributions. Another 1.3 million age 55 and older have done the same. Therefore, it is a tool being used by those who are in the lower and middle incomes. Could the member comment on the actual facts?

[Business of Supply, May 13th, 2015]

Mr. Chair, as per its mandate, the Canadian Polar Commission focuses on the promotion and dissemination of polar research and knowledge as well as on collaboration and co-operation with Canadian and international institutions. These functions align directly with the work that is going to be undertaken by CHARS as part of our government's northern strategy. CHARS will be promoting Canadian sovereignty over our Arctic lands and will be focusing on science and technology that will improve the quality of life for northerners.

I am wondering again if the parliamentary secretary could update the House on what will happen to the existing Canadian Polar Commission once CHARS is established.

[Business of Supply, May 13th, 2015]

Mr. Chair, our government first announced the establishment of CHARS, a world-class year-round institution, in the 2007 Speech from the Throne. Of course, establishing CHARS as a new federal organization represents the next significant milestone in the development of our government's northern strategy initiative, and Arctic science and technology in Canada more broadly.

The CHARS will contribute to Canada's understanding of the north and will anchor a strong research presence in Canada's Arctic to serve Canada and the world. As a former science teacher, I am interested in the educational aspects of this, but I am just wondering again if the parliamentary secretary could explain to the committee what the benefits of CHARS will be.

[Business of Supply, May 13th, 2015]

Mr. Chair, I would like to take this time to discuss advances we have made in relation to the Canadian High Arctic research station, or CHARS, which is a key element of Canada's northern strategy.

Canada's north is a fundamental part of Canada. It is part of our heritage, our future and our identity as a country. Our Conservative government recognizes the north's importance and unlike previous governments has taken action to strengthen this region. Our northern strategy outlines an overarching vision for the north for the benefit of all Canadians. It is taking concrete actions on four priority areas: exercising our Arctic sovereignty, protecting our environmental heritage, promoting social and economic development, and improving and evolving northern governance.

The mandate of the research station includes undertaking science and technology research that supports resource development, the promotion of Arctic sovereignty and environmental stewardship. By conducting research that addresses some of the pressing problems facing northerners, CHARS is also committed to the development of strong and healthy communities across the north.

Within the 2015-16 main estimates, $47.6 million is being allocated for the construction of the Canadian High Arctic research station in Cambridge Bay, Nunavut and the implementation of the associated science and technology program. However, our government's support for CHARS is not new. In 2012, our Prime Minister announced funding of $142.4 million over six years for the construction and start-up of the station.

The development of CHARS is yet another step forward in achieving our government's vision for a strong, sovereign and prosperous north. It will cement Canada's place as a world leader in Arctic science and technology and provide a medium of exercising sovereignty over our northern lands. Science and technology research undertaken at CHARS will allow people to better understand and protect the northern environment. It will also contribute to the development and diversification of northern economies.

The Canadian High Arctic research station is currently under construction in Cambridge Bay, Nunavut and is expected to be completed on schedule in 2017.

Recognizing the importance of traditional knowledge, the station's mandate specifies as a principle that the station will work with aboriginal peoples of Canada's north. The community of Cambridge Bay has also been actively involved in the development of the station. CHARS continues to be engaged in consultation with northerners and with input from aboriginal, academic, industry, territorial and government stakeholders.

The Canadian High Arctic research station will continue to rely upon the expertise and knowledge of all northerners, now and into the future, and will ensure the research conducted reflects northerners' rich history, traditions, expertise and knowledge. CHARS will complement and anchor the existing diverse network of facilities across the north and will comprise a suite of services for science and technology.

While the station at Cambridge Bay is expected to be operational in 2017, valuable research has already begun. Beginning on March 3, 2014, CHAR's chief scientist Dr. Martin Raillard has led the implementation of the science and technology program. In fact, the first field season of research was completed in the summer of 2014. Preparation for the second field season is well under way and proposals for the 2015-16 science and technology call for proposals are currently being reviewed.

The work to be done at the station will lead and support Arctic science and technology to develop and diversify the economy in Canada's Arctic; support the effective stewardship of Canada's Arctic lands, waters and resources; create a hub for scientific activity in Canada's vast and diverse Arctic; promote self-sufficient, vibrant and healthy northern communities; inspire and build capacity through training, education and outreach; enhance Canada's visible presence in the Arctic; and strengthen Canada's leadership on Arctic issues.

The new station will attract international scientists to work on science and technology issues in Canada's north and will strengthen Canada's leadership position in polar research. This station is being built by Canadians to serve Canada, and the world, and to engage northerners in the development of cutting-edge science and technology. Beyond promoting polar science, the Canadian High Arctic research station will also strengthen the Canadian economy.

CHARS will also promote jobs and training at the regional level, starting with the construction of the station, which is expected to generate up to 150 jobs, mostly locally, across the north. To date, 26 tender packages have been awarded, for a total of approximately $70 million; 65% of the value of this work will be undertaken by Inuit-owned or Nunavut Tunngavik Incorporated registered firms.

Once CHARS is operational, the research, capacity building, and outreach activities will provide northerners with skills and expertise to better participate in the labour force, from mining and energy, to natural resources, to health and life sciences. CHARS will also develop highly qualified personnel and leadership in the north and across Canada. Once the station is complete, it is expected that approximately 50 full-time scientists and support staff will be based in Cambridge Bay.

CHARS is a strong example of this government's commitment to creating jobs, growth, and prosperity in the north and across the country.

Our government is also continuing its important work under the Arctic science and technology pillar of the northern strategy by demonstrating leadership in Arctic science.

During the northern tour visit to the Cambridge Bay site of the Canadian High Arctic research station, the Prime Minister remarked,

The North is a fundamental part of Canada’s heritage, future and identity, and we must continue to assert our sovereignty over Canada’s Arctic. This new station will undertake science and technology research that will support the responsible development of Canada’s North, inform environmental stewardship, and enhance the quality of life of Northerners and all Canadians.

The Canadian High Arctic Research Station Act, which received royal assent in December 2014, will provide for a year-round, world-class facility for science and technology in our north. It will merge the knowledge and resources of the Canadian Polar Commission with the science and technology program at Aboriginal Affairs and Northern Development Canada. The merger will promote the development and dissemination of knowledge with respect to the polar regions as well as strengthen Canada's leadership on Arctic issues. It will also build upon and strengthen the commission's record and increase the national and international prominence of Canadian Arctic science and technology.

The creation of this new organization will support our government's respect for the Nunavut land claims agreement and our commitment to improving the quality of life of northerners.

The new organization will strengthen Canada's leadership in Arctic science, research, and innovation. While the station will be the focal point for research, the new organization that will use the station as its headquarters will also help build partnerships across the north and strengthen innovation and economic growth.

Our government is committed to Canadian sovereignty over Canada's Arctic lands and to ensuring that a strong and prosperous north helps shape the future of our nation. Every Canadian can take pride in the progress our government continues to make on issues of importance to people living in the north and to the future of our country.

There are a couple of things I would like to speak to and see if I can get a response from the parliamentary secretary.

As we know, a key pillar of this government's national strategy is the Canadian High Arctic research station. CHARS will establish a new world-class federal research organization that will be responsible for advancing Canada's knowledge of the Arctic, promoting the development and dissemination of knowledge of the circumpolar region, strengthening Canada's leadership on Arctic issues, exercising stewardship and sovereignty over Canada's northern lands and waters, and ensuring a research presence in Canada's Arctic.

CHARS will provide Canada and the world with cutting-edge Arctic science and technology to support and inform decision-making in the north while contributing to the economic prosperity of all Canadians.

I wonder if perhaps our parliamentary secretary would speak to the main objectives of our Canadian High Arctic research station?

[Citizens of the Year, May 13th, 2015]

Mr. Speaker, I rise today to recognize two of Red Deer's finest citizens. This past week Sheila Bannerman was named Red Deer's citizen of the year and Stephanie AuBuchon was named Red Deer's young citizen of the year.

These two constituents exemplify everything it means to be model citizens.

Sheila Bannerman has served central Alberta through a number of organizations, including the Red Deer Public Library Board, the Red Deer & District Museum Society Board and the Central Alberta Historical Society, and most recently as one of the main drivers of Red Deer's centennial.

Stephanie AuBuchon has volunteered with the St. John Ambulance Youth Brigade since she was 12. Stephanie has shown leadership by leading a number of initiatives including co-chairing the first Hunting Hills High School Bike-a-Thon. Stephanie also volunteers with the Red Deer Regional Hospital Centre and plans on continuing to give back to the community by becoming a nurse.

Sheila and Stephanie are truly model citizens and I speak for all of Red Deer when I say that their contributions to our city embodies the spirit of our community.

[Facilitating the Transfer of Family Farm or Fishing Corporations Act, May 12th, 2015]

Mr. Speaker, certainly listening to some of the debate, I hear major concerns with regard to some of the issues as far as agriculture is concerned. Of course, young farmers have great opportunities and they are using all of the tools we have to make sure they have these opportunities when it comes to farm succession planning.

Our government is very much aware that a strong and vibrant farming and fishing sector benefits not only our rural communities but also the country as a whole. Our agricultural sector is a recognized leader in the development of new products using Canada's field crops, while our country's fish and seafood are among the largest food sectors exported by Canada.

I will begin by focusing on how our government is proud to partner with farmers in building a prosperous agricultural sector in Canada.

As members well know, the agriculture and agri-food sector in Canada accounts for over $100 billion in economic activity and provides employment to more than 2.1 million people. Throughout Canada's history, it has played an integral role in our country's economy. That is why our government has continued to do what is necessary to support farmers and processors.

As just one example, in April 2013, our government introduced the growing forward 2 policy framework, which is a $3 billion investment by federal, provincial, and territorial governments and the foundation for our government's agricultural programs and services, focusing on innovation, competitiveness, and market development.

At the same time, unlike the opposition, we know that our prosperity is strongly linked to reaching out beyond our borders and forging new trade agreements. Increasing our exports to the largest, most dynamic, and fastest-growing markets in the world is a key part of the economic action plan. We have acted to break down barriers that were preventing Canadian businesses from becoming more competitive on the world stage.

Since 2006, the government has concluded free trade agreements with 38 countries, bringing Canada's total to 43. Last September, the Government of Canada and the European Union released the complex text of the historic Canada-European Union Comprehensive Economic and Trade Agreement. The agreement opens the way to vastly increased trade, job creation, and greater prosperity, providing preferred access to the world's largest and most lucrative market with more than 500 million consumers in 28 countries.

On January 1, 2015, the landmark Canada-Korea Free Trade Agreement entered into force, giving Canadian businesses a gateway to the dynamic Asian region. Further, in October 2014, we confirmed a foreign investment promotion and protection agreement with China so that Canadian companies investing there are treated fairly and benefit from a more predictable, secure, and transparent investment climate.

This brings to 28 the number of investment agreements Canada has with countries around the world. Taken together, these agreements afford Canada preferential access to more than half of the world market.

With new trade agreements completed, and more soon to be in place, economic action plan 2015 proposes $152 million in trade promotion investments over the next five years to help Canadian businesses fully capitalize on global opportunities. That money would be used to create a new export market development program to share the costs as small businesses pursue new export opportunities around the world, as well as for new resources for the Canadian Trade Commissioner Service to support Canadian firms with on-the-ground intelligence and practical advice on foreign markets, to help them achieve their goals.

We are also creating a new internal trade promotion office to support federal, provincial, and territorial negotiations to strengthen the economy within Canada's borders, by comprehensively renewing the Agreement on Internal Trade.

In addition, the expansion of agriculture and agri-food sector marketing and promotion activities will continue to secure Canada's position as one of the largest exporters of agricultural and agri-food products globally.

I can assure members that we have a government that is working to set the right conditions for rural communities, farmers, and Canada's fishery to compete in Canada and around the world.

In doing so, we are building one of our nation's strengths. In 2014, Canada exported $4.9 billion of fish and seafood products, an increase of $530 million from 2013. Approximately 85% of all fish landed by Canadian harvesters is exported to foreign markets.

As members can see, our government is standing up for the interests of Canadian farmers, fishers and others who own and operate businesses in Canada. We have continued to act to ensure that they can count on their investments of a lifetime even when their working life has concluded.

In order to increase the potential rewards of investing in small business, farming and fishing, economic action plan 2013 increased the lifetime capital gains exemption, the LCGE, from $750,000 to $800,000 in 2014. To ensure that the real value of this exemption is not eroded over time, we indexed the $800,000 LCGE limit to inflation. The first indexation adjustment occurred this year, raising the limit to $813,600 for 2015. Economic action plan 2015 proposes to further increase the exemption to $1 million for qualified farming or fishing property disposed of on or after April 21, 2015.

In addition to increasing the exemption, last year the government simplified the tax rules relating to the lifetime capital gains exemption and the intergenerational rollover for taxpayers who carried on farming or fishing businesses in combination. To accomplish this, the government passed legislation to generally treat a taxpayer's combined farming and fishing business the same as a separate farming or fishing business conducted by the same taxpayer. This will ensure consistent treatment for taxpayers who conduct farming and fishing activities in different legal forms.

Similarly, in 2009 the government extended the rule that helped farmers who disposed of breeding livestock due to drought conditions existing in specific regions in a given year to farmers affected by excess moisture conditions. This rule allows farmers to exclude up to 90% of the net sale proceeds from their taxable income until the year following the sale or a later year if the conditions persist. Economic action plan 2014 extended this tax deferral also to bees and to all types of horses that were over 12 months of age that were kept for breeding, effective for the 2014 and subsequent taxation years.

Our government has made it our mission to put farmers and fishers first. We firmly believe that Canadian farmers and fishers should be strong and profitable and able to capitalize on market opportunities. That commitment extended to economic action plan 2015, which is why our government cannot support today's bill from the hon. member for Joliette.

Bill C-661 proposes a relieving incoming tax amendment to expand the scope of an exemption to an existing anti-avoidance rule. This exemption is available for spouses and their children as they are presumed to have a shared economic interest. In the farming and fishing context, tax-deferred transfers of assets are generally permitted between spouses, and parents can leave farming or fishing properties to their children without triggering capital gains tax. In contrast, siblings who are shareholders in the same business are considered to have separate economic interests and therefore they are not eligible for the exemption for closely related persons. This is consistent with many tax rules, which generally do not accommodate tax-deferred transfers of assets between siblings.

I am somewhat shocked that the NDP member would propose this considering the New Democrats' stance on income splitting. The hon. members opposite do not believe that a married couple is a single economic unit and are highly opposed to income splitting. Yet, the individual opposite argues that siblings are an economic unit and should be allowed an exemption for this purpose.

I wonder how NDP members can explain how they can remain consistent if they now believe that siblings are a single economic unit?

So that there is no confusion, let me be clear that if siblings separate their farming or fishing business in equal amounts, or their pro rata share of each type of property, they will continue to be able to take advantage of this exemption.

Given these examples, and many more, we cannot support the bill, and we encourage all members to vote against it.