Jean-Yves Laforest

[Economic Recovery Act (Stimulus), November 16th, 2009]

Mr. Speaker, my colleague said he believes the government would be willing to extend the program. I talked about the fact that such a home renovation program helps stimulate the economy to a certain extent. The question is whether or not it should be extended. Such a measure should be combined with a measure proposed by the Bloc Québécois. It must not be restricted to home renovation. We proposed that the federal government use wood in the construction and renovation of federal buildings. I think that it would really help stimulate a struggling economy in Quebec, an economy linked to numerous communities and towns that rely solely on the forestry industry. Such a measure would be extremely beneficial not only in allowing people to receive the EI benefits that are obviously difficult for them to obtain, but also in allowing them to get their livelihood from forestry products, as they did for many years.

[Economic Recovery Act (Stimulus), November 16th, 2009]

Mr. Speaker, I thank the member for his question.

Earlier, when talking about the EI system, I said that the measures introduced by the government to stimulate the economy, such as the home renovation tax credit, will not be enough to completely restore the economy, particularly in Quebec where there is a serious crisis in the forestry sector. This is a major crisis and people are complaining because the Quebec forestry sector received only $70 million compared to the $10 billion Ontario's auto sector received.

We see that many unemployed workers in Quebec must get through the crisis without the help of the government, even though they contributed for many years to the EI system. They are ineligible for the benefits that would help them to better weather the crisis. We know that the successive Liberal and Conservative governments diverted $57 billion from the EI system and put it in the consolidated revenue fund to reduce the debt. The unemployed and employers have been taken hostage. They are the ones who contributed to the system. Their money was used to reduce the debt and, on top of that, transfers to the provinces were cut. That is totally unacceptable.

[Economic Recovery Act (Stimulus), November 16th, 2009]

Mr. Speaker, I am pleased to speak to Bill C-51, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures.

Bill C-51 was introduced by the Minister of Finance on September 30 and referred to the Standing Committee on Finance on October 7. The members of the Standing Committee on Finance have already begun to study it.

The purpose of Part I of this bill is to amend various aspects of the Income Tax Act and the Income Tax Regulations, namely with respect to taxes for certain livestock producers, the home renovation tax credit, the first-time home buyers' tax credit and the working income tax benefit.

Part II of this bill includes provisions to amend the Bretton Woods and Related Agreements Act, the Broadcasting Act, the Budget Implementation Act, 2009, the Canada Pension Plan Investment Board Act, the Customs Act, the Financial Administration Act, the Public Service Superannuation Act and the Bankruptcy and Insolvency Act. It is clear that this bill amends a number of existing acts.

I would like to speak more specifically to the home renovation tax credit. That aspect of Bill C-51 is rather important to the Bloc Québécois. It is because of that measure in particular that the Bloc Québécois will support this bill. What is more, this concept was part of a recovery plan submitted by the Bloc Québécois in 2008. A second component of this recovery plan was also submitted to the Conservative government in April 2009.

The part concerning the creation of a home renovation tax credit was included in the recovery plan and it is extremely important. At first, the Bloc wanted to encourage people to convert their oil furnaces to more energy efficient models. When we presented that measure, the Bloc members emphasized that this would help reduce our dependence on oil, which is extremely important. We have often said that Quebec would do well to reduce its dependence on oil. Even though the home renovation tax credit does not exactly achieve that goal, it does allow certain adjustments to be made. This measure does not strictly target energy efficient retrofits, but in this economic crisis it is an effective way to stimulate the economy rather quickly.

As we have already indicated, this budget was unacceptable to Quebec. The Conservative government has clearly favoured the automotive industry concentrated mainly in Ontario, to the detriment of Quebec's forestry industry. Compared to the $10 billion given to the auto industry, only about $70 million was given to the forestry industry, which is going through a major crisis.

Yesterday I met with some private woodlot owners who earn a living by making good use of their land. These people told me over and over that they have received almost no support from the Conservative government. To pass along what they told me, they are extremely disappointed.

They really expected to see a fairer distribution of the money they send to the federal government. I am convinced that the federal government is making these people poorer, since it is doing nothing to help them. It has also left them completely disillusioned, because of the unequal measures offered to certain groups in the country, particularly in Ontario and Quebec.

Coming back to the home renovation tax credit, we definitely support that measure. As I was saying earlier, it is a way to stimulate the economy to some degree. Even though this is not only about energy efficient retrofits, many people will benefit from this tax credit, for window products in particular.

So, part of this measure will improve energy efficiency. Indeed, people will be able to use this tax credit to improve the energy efficiency of their homes by putting in new window products, that is, windows, doors and skylights. Of course this can also help people significantly improve the comfort of their homes. When properly applied, this measure can considerably decrease both household energy consumption and the greenhouse gas emissions that contribute to climate change, a major problem for all of us.

Purchasing higher quality windows, doors and skylights will ensure the right balance between cost, ease of use and maintenance. Owners of homes that are 15 or 20 years old and even older are already experiencing maintenance problems. This tax credit will allow these people to make their homes more energy efficient and easier to maintain. People often choose maintenance-free doors and windows, which improves durability, aesthetics and energy efficiency.

I insist on that because this measure has been very popular, particularly in Quebec. In my riding, many people told me that they thought it was an interesting measure and that they used it to varying degrees. It is not a cure-all for our economic woes, but it is a good support measure.

These changes will reduce energy costs. It is estimated that, for the residential sector, energy bills will be reduced by 7% to 12%. This will obviously have an interesting impact in terms of reducing greenhouse gases.

We talked earlier about the comfort of our homes. We all live in a rather difficult climate.This measure will help eliminate cold drafts in our homes, which is very beneficial. In terms of prevention, efficiency and maintenance, it will help reduce condensation. When new windows are put in, the air exchange is better, which means less condensation in the homes and less deterioration of materials. It also reduces external noises.

However, the home renovation tax credit still raises some questions.

This tax credit is supposedly effective but it does have limits. Eligible expenses are those covered by contracts completed after January 27, 2009, when the budget was tabled, and before February 1, 2010, and must be directly related to eligible renovations to an eligible dwelling or property. An eligible dwelling generally consists of the taxpayer's principal residence or that of one or more family members.

The maximum tax credit is $1,350 for one year only. Certain questions come to mind—questions that have not yet been answered—and it would be appropriate for the government to address them because they are important to citizens. Given that this tax credit was designed to temporarily encourage renovation projects or to accelerate projects already planned, should the credit not be available for more than just the one year? Should it not be extended for another year? It is an economic stimulus measure and the economy is still in trouble. According to the statistics, a great number of people are still unemployed. However, statistics do not tell the whole story. They indicate that the level of unemployment has stabilized but what goes unsaid is that many people are not eligible for unemployment benefits and are not even included in the statistics.

The government's proposed changes to employment insurance have not made it possible for many people to have access to the program. Even now barely 50% of those who pay into the employment insurance program qualify for benefits when they lose their jobs temporarily or permanently. Thus, the government's changes to employment insurance have not improved accessibility at all. Too many people are still denied benefits and government support after having contributed for many years. For all sorts of reasons, they are not eligible for employment insurance benefits.

There is also the issue of the two week waiting period. Once again, the government is refusing to make changes even though we know very well that this measure would truly support and stimulate the economy. Rather than waiting two weeks, recipients would receive benefits much more quickly and would not have to strain their resources to cover this period.

As we know, in some communities, in many places, the two breadwinners of some families, namely the father and the mother, both find themselves out of work and must wait the two week period. These people often go back to work later on during the year and then, five or six months later, they are once again laid off. This means that, two or even three times a year, these families do not have any income for a period of two weeks each time.

That is totally unacceptable and that is why the Bloc Québécois has proposed changes and keeps asking for an in-depth reform of the employment insurance system that must include the abolition of the waiting period. We must also allow these people to receive EI benefits based on their good faith, and we must stop thinking that EI claimants are crooks trying to defraud the system. Let us stop trying to find all sorts of ways to delay the payment of benefits as long as possible, because some people must wait several weeks before getting that first cheque, even though they are entitled to it.

If I am now talking about the EI system it is because of our suggestion to the government to consider extending this tax credit.

It would be important to look at the actual impact of this tax credit over a longer period of time.

There are other questions that remain unanswered, but that should still be answered. Currently, how many Canadians qualify for the proposed credit? Are estimates available?

As we know, this tax credit is non-refundable. If, strictly for home renovation, Bill C-51 proposed instead a refundable tax credit, what would be the impact on the government's total tax expenditures? What would be the pros and the cons of a refundable home renovation tax credit? Surely there must be government studies that could help get a clear understanding of the impact of such a tax credit. However, as always with this government, we are getting as little information as possible. In fact, we do not have any information. We can always try getting more information indirectly, because with this government we never get answers to our questions.

I said earlier that the Bloc Québécois submitted a proposal, in a recovery plan, for home renovation incentives to improve energy efficiency and real estate value. Are there elements in such a program which should lead us to believe that there will be a real decrease in total greenhouse gas emissions?

The government of Quebec also introduced a home renovation tax credit, but it is very different and it applies differently. The fact that the federal government did not adjust its tax credit to the tax credit already introduced by the Government of Quebec has caused some confusion among Quebeckers. Why was the credit capped at $1,350? Was this amount determined to be the optimal one to allow for the best possible economic recovery?

To what extent will this tax credit help the economy to recover in Quebec and in Canada? These are other questions for which we have not been able to get answers from the government.

Part 1 of Bill C-51 also deals with the first-time home buyers’ tax credit. The same questions must be asked. What are the advantages and disadvantages of a refundable tax credit for first-time home buyers? It would be interesting to have this information. Why has the proposed maximum been set at $750? This is a very small amount for the purchase of a first home. It would need to be much higher for housing construction to really have a stimulus effect on the economy. These are important questions to which no answer has been provided.

The Bloc Québécois supports Bill C-51 strictly because of the home renovation tax credit, which is the most important part of it.

[Economic Recovery Act (Stimulus), November 16th, 2009]

Mr. Speaker, I heard the member say earlier that when the Liberals were in power, they were expecting that the system the government had put in place to provide some kind of EI fund or an alternative management system for that fund would soon run out of money because there were a great many unemployed people.

I have a question for the member. When the Liberals were in power, they did not accept repeated requests made by unemployed groups for the creation of an independent EI fund. The Liberals collected billions of dollars in EI contributions and put the money into the general revenue fund to lower government deficits. That was a major misappropriation of EI money.

How can he say what he said, considering the fact that the Liberals could have acted a long time ago?

[Equalization, October 29th, 2009]

Mr. Speaker, first we lose $1 billion because of the cap on equalization, and now we learn that the economic downturn in Ontario will cost the Government of Quebec another $225 million. And the 10 Conservative members from Quebec just subserviently go along with it all.

Will the Minister of Finance admit that the cap he unilaterally put on the equalization formula was designed to benefit Ontario at the expense of Quebec?

[Minister of Finance, October 8th, 2009]

Mr. Speaker, taxpayers should be worried about the award given to the Minister of Finance by Euromoney magazine.

In fact, that same magazine gave its 2005 award for excellence—best investment bank to Lehman Brothers. I would remind the House that that financial institution was one of the main actors behind the subprime mortgage problems that led to the worst economic crisis since the second world war. Just ask its shareholders.

This was the minister who, in the fall of 2008, refused to acknowledge the looming financial crisis and made lots of rosy predictions, claiming that he could still maintain a balanced budget. It was also this minister who underestimated the size of the deficit by 50%, once he finally admitted there would be a deficit.

I would advise the Minister of Finance and Euromoney—rather than boasting about this award—to try out for the Just for Laughs festival.

[Economic Recovery Act (stimulus), October 6th, 2009]

Mr. Speaker, among other things, Bill C-51 implements the home renovation tax credit. This measure was inspired by the proposals made in both the Bloc Québécois recovery plans, presented last fall and the previous April. This bill also introduces a first time homebuyers' tax credit. This measure was also inspired by the Bloc's last platform. Bill C-51 will also implement Canada's international commitments to the International Monetary Fund, which were signed in 2008. It will also amend the Canada Pension Plan, from which Quebec is excluded. The amendments are based on an agreement with the provinces involved. Quebec is not involved, but if there is an agreement, we respect that.

Bill C-51 will implement the findings of a joint expert panel including representatives of Nova Scotia, the federal government and others to resolve a dispute. Once again, Quebec is not involved in that litigation, but if there is an agreement, I do not see why we would not support it.

For all of these reasons, and especially for the home renovation tax credit and the first time homebuyers' tax credit, the Bloc Québécois is in favour of this bill.

Coming back to the home renovation tax credit, in April 2008, when the Bloc Québécois was presenting the initial phase of its economic recovery plan, we proposed introducing a home renovation tax credit with a very specific objective: to encourage people to convert their old oil furnaces to more energy efficient models. At that time, we argued that such a measure would help reduce our dependence on oil. This would have the added and equally important effect of rapidly injecting money into the economy.

This measure has been introduced by the Conservatives and we know that their primary focus was not necessarily on reducing greenhouse gases nor on energy efficient retrofits. Nonetheless, we maintain that this would be a way to stimulate the economy and we are in favour of this measure. We proposed it, we had a debate on it and we made our arguments. Today, our proposal is before us. It has been accepted by the government and we are indeed in favour of it; we would be hard pressed not to be. Even though it is not exactly what we had in mind, many people will benefit from the energy efficient retrofits. What is more, in the past few weeks, since the Bloc Québécois announced it was in favour of this measure, people have realized that we were the ones who proposed this measure and we are the ones who got it. Many people are congratulating us for convincing the government to introduce such a measure in its budget.

Even though this is not only or specifically about energy efficient retrofit measures, several areas are eligible for this tax credit, window products in particular. We know that one way to improve energy efficiency is to replace windows, doors and skylights. In a number of different ridings in Quebec, most MPs have heard many people and many window and door companies say that the tax credit associated with this measure has helped stimulate the home renovation sector.

Many people decided to do it because their heating oil costs were so high. As everyone knows, neither the Conservatives nor the Liberals have ever been particularly eager to clamp down on the oil companies, so big oil raises the prices whenever it feels like it. If people have a chance to reduce their oil heating costs by replacing their windows and get a tax credit to boot, they will do home renovations. That makes this measure a very attractive one.

We know that it will also reduce household energy consumption, which will directly reduce greenhouse gas emissions. These emissions make a significant contribution to undesirable climate change.

Buying better-quality windows and doors will make up for some of the negative effects of oil heating. When people use good products in renovations, they can reduce their heating oil consumption by between 7% and 12%. Renovations also minimize drafts, cut down on interior condensation and so on. They also reduce noise transference. We hear so much about air pollution, but there is also noise pollution. People living in urban centres and near highways experience significant stress due to noise and they will also benefit from this measure, which can cut down on noise pollution.

We also know that Quebec is a very large part of Canada and has an abundance of fresh water. When you have an abundance of a given resource, including water in the case of Quebec, you tend to take it for granted. In most homes in Quebec, you just have to open the tap and water flows freely in every room where it is needed, in the laundry room or in the washroom. Water is not free, especially hot water. Improving the insulation in a house with new doors and windows and other renovations can often cut the cost of heating water by 15%. These are significant measures and important to most Quebec households.

This tax credit also makes it possible to renovate the plumbing in a home. Shower heads can be changed to save water. It is a renewable resource but there are limits. We must conserve the hot water used for a normal family's household needs.

We are very supportive of such measures because they contribute globally to energy conservation and the reduction of pollution. It is a very interesting measure that has been put forward.

I would also like to talk about the first time homebuyers' tax credit. In its 2008 election platform, the Bloc Québécois proposed putting in place a homebuyers' program. Many Quebec families find it difficult to buy their first house. It is extremely important for the government to help families, including middle-income families, to purchase their first home. Buying a home is often the most important investment of one's life. Families often need a helping hand at the start.

Because there is a similar measure in this bill, we will support it once again.

We had some mixed feelings, because the Conservatives' measure is much less generous than what we proposed. But it is a step in the right direction, and it shows some understanding of the very solid arguments made by the various Bloc Québécois members. We think this is a step in the right direction, and that the government seems to have understood that it is necessary to support first time homebuyers.

This is a major investment for many families, and buying a home is an important step for many households in Quebec and Canada. They are able to build equity. As I said, this is the primary investment for many families, and it is very often the biggest investment a family will make in their lifetime. It is very necessary and important to support families in this step and to help them benefit from capital gains.

In recent years, the capital appreciation of real estate and the increase in home values has made home ownership appealing. Quebec is a little behind Canada in regards to home ownership and the desire of some families to purchase a home. So this is a very appealing measure for Quebec.

It is often very difficult for these families to build capital. The government is proposing an interest-free loan up to $10,000. This makes it much more appealing for new and young families to purchase a first home.

This, in essence, is why the Bloc Québécois supports Bill C-51, and why we will vote in favour of it.

[The Economy, October 6th, 2009]

Mr. Speaker, the Conservative government's third progress report is nothing but smoke and mirrors. The government is boasting that 90% of the funds promised have been committed, but it is impossible for us to find out exactly what is happening on the ground. The government's progress report provides no clarification about who might benefit from extended employment insurance benefits. They are just trying to avoid making it obvious that the measure was intended specifically for Ontario and western Canada. They do not care about Quebec workers.

The Canadian government could have followed the Obama administration's example; it has made detailed information available to all citizens about exactly what funds have been spent and which initiatives have been put forward as part of the American economic recovery plan. Instead of giving us a credible report, the Conservative government chose to produce this propagandist update trumpeting the government's achievements as the basis its $30 million-plus ad campaign paid for out the public purse.

The report does clarify two things. First, it reminds us that the government's action plan was clearly devised to help Ontario and its auto sector, not to do anything about the forestry crisis that has been hurting Quebec for years. The recent announcement that AbitibiBowater's Beaupré mill was closing its doors for an indefinite period of time was a reminder that Quebec's forestry sector is going through a serious crisis. In its progress report, the Conservative government responded by giving the Ontario auto industry $9.7 billion and the crisis-ridden forestry industry just $57 million. Furthermore, it confirms the federal government's strategy of chipping away at the deficit at the expense of unemployed workers by once again pillaging the employment insurance fund and cutting off Quebec's lifeblood, just like their Liberal predecessors did.

The Bloc Québécois did give the government realistic, costed suggestions to promote recovery, deal with the deficit, and give the privileged few who benefit from the Liberal-Conservative system what they deserve. It is time for the government to shrug off its ideological straitjacket and start working on the solutions proposed by the Bloc Québécois to ensure that the Quebec nation can make a strong recovery from the economic crisis and that middle-class, working Quebeckers do not have to pay the price for the government's lack of vision when it comes to fighting the deficit.

[Intergovernmental Relations, October 1st, 2009]

Mr. Speaker, here is another example: Ontario is receiving billions of dollars from the federal government for its auto industry while our forestry industry, which is in crisis, is getting crumbs. Ontario is being compensated for harmonizing its sales tax with the GST, but not Quebec.

Does this inequitable treatment of Quebec not explain why Quebeckers have no confidence in this government?

[Intergovernmental Relations, October 1st, 2009]

Mr. Speaker, harmonization of the GST is just another issue on which Quebec is being unfairly penalized by the Conservative government. Let us not forget about the loss of $1 billion in revenue from equalization payments and the loss of $800 million for post-secondary education. Quebec has been deprived of a total of over $8 billion because of the Conservatives’ neglect.

What is the government waiting for, to settle these disputes and finally give Quebec its due?