Madam Speaker, the media entrepreneur, Ted Turner of CNN fame, has a plaque on his desk which reads: "You can lead or you can follow, but if you are not going to lead, get out of the way".
I want to speak about leadership. There is a leadership vacuum in this country on the issue of compliance with taxation rules. Canadians have lost confidence in the ability of their governments to get spending under control. Therefore they have increasingly turned their backs on tax compliance and instead have become involved in aggressive tax avoidance. Tax avoidance takes place illegally and legally, but why would Canadians have reached the point of being prepared to break the law and potentially suffer the consequences?
Let me make my position very clear. I am not in any way condoning or excusing tax avoidance. If the government does not have the income then providing services to people and even the servicing of our national debt will become impossible. Furthermore, if we do not have respect for the laws of Canada, including taxation laws then we have anarchy. Therefore the epidemic of tax avoidance is an issue far larger than the issue of missing revenue.
We need to have leadership by example. We must show ordinary Canadians that people involved in the political process, members of Parliament, members of the government, cabinet ministers, are prepared to lead by example.
Many of us in this House are aware of single income families where the homemaker babysits one or two of the neighbour's kids but does not declare the income. There are housekeepers who clean the homes and toilets of others but again are not declaring the income. We are also aware of tradesmen who are avoiding the GST, in fact any taxation, simply by not declaring the value of their work. These people need to be shown sacrifice and leadership by members of the House of Commons, including the cabinet.
That is all part of the so-called underground economy. It is growing at a phenomenal rate. Yet the vast majority of these people desire to be law abiding citizens. In all other areas of their lives they obey the laws of Canada. So I ask: Who is going to lead them?
Many businesses have a friendly, approachable and helpful demeanour toward their customers and clients. This helpfulness is carried out by the staff. Can you imagine that the president of the company is not also friendly, approachable and helpful? In other words, the staff takes the lead from the example set by the chief executive officer. If a firm is open, honest and straightforward in its dealings with suppliers, the government and its customers, we can safely assume the leadership of the firm will also be honest and straightforward.
The bottom line is that Canadians are prepared to comply with reasonable tax laws, reasonable laws respecting taxation. When members of this House and the government lead by example, Canadians will follow. This is the reason the Reform Party has the unrelenting objective of straightening up the MPs pension plan.
The Liberal red book specifically states:
The most important asset of government is the confidence it enjoys of the citizens to whom it is accountable. If government is to play a positive role in society, as it must, honesty and integrity in our political institutions must be restored.
Whether by accident or design, politicians from the House have historically told Canadians that the MPs pension plan did not cost the Canadian taxpayer any money, that it was self-funding.
Any reasonable individual looking at the numbers concluded that members were mistaken in their assertions. It would be impossible to support the luxury of the MPs plan solely from the members' contributions. Only two weeks ago it was revealed that in 1992 Canadians forked over $158 million to top up the MPs pension plan and a further $12 million in 1993. The Canadian public is rightfully outraged at this excessiveness but are beyond outrage when they understand they have been duped.
As recently as the election the former member for Kootenay East was protesting loud and long that his pension plan was fair and reasonable. Yet the Prime Minister has said in the House he would correct the situation sometime before the next election. That is some time in the next four years. Is it only during elections that members of Parliament are answerable to Canadians or listen to them?
If Canadians are looking for leadership by example why will the Prime Minister not immediately alter the MPs pension plan to reflect a pension plan that would be available to any other member of the public? There must be leadership by example. Members of Parliament who choose to stonewall this issue in my judgment are doing a major disservice to this parliamentary institution.
We have spoken today about illegal tax avoidance. I would like to raise the issue of legal tax avoidance as shown in a newspaper article by Tim Naumetz of Sterling News Service. This very solidly falls under the issue of leadership by example.
In documents filed under the conflict of interest and post-employment code for public office holders a cabinet minister has revealed he has six companies registered in Liberia among his many holdings.
Let me make my position crystal clear on this issue. I am not stating nor suggesting or even implying there is any legal wrongdoing on the part of this cabinet minister. I also recognize the practices illustrated here may very well be standard practices in the shipping business. However within the shipping business I ask why ships are registered in Bermuda and Liberia rather than in Canada.
That is just one example of legal tax avoidance which brings into question the whole issue of fairness in our tax system.