House of Commons photoWon his last election, in 2011, with 58% of the vote.
Business of Supply May 28th, 2008
Mr. Chair, Canadians are outraged, dismayed and worried. They are outraged in all parts of the country, even in Windsor, Ontario.
The Windsor Star wrote today:
A carbon tax will penalize low-income earners, rural Canadians and suburban commuters...and it will negatively affect the ability of Canadian businesses, already struggling under the weight of a rising loonie, to compete internationally.
That is what the Liberals are proposing for Canadians.
Business of Supply May 28th, 2008
Mr. Chair, I thank the member for Bruce—Grey—Owen Sound for the exceptional job he has been doing in Ottawa on behalf of his constituents. I also to thank the member for Edmonton—Leduc for raising this issue with me, as well.
As the member noted, our government has been taking important steps to assist the manufacturing sector, not through the use of ineffective and short term band-aid type solutions but rather longer term measures to create a more productive, competitive business environment, including the historic tax relief of nearly $200 billion and a stimulus that has been created for business, particularly in this time of economic slowness.
In Canada, the corporate tax reductions that were in the fall economic statement were described by the Canadian Manufacturers & Exporters in this way, “important to the long-term competitiveness of the Canadian economy”.
In that spirit tonight and with respect to the question the member has posed, I confirm that forklifts used for manufacturing or processing will be eligible for the accelerated capital cost allowance treatment that was announced in budget 2007 and extended in budget 2008.
Specifically, forklifts used in manufacturing or processing acquired after March 18, 2007, will qualify for the temporary manufacturing and processing incentive. This will ensure that forklifts receive the same accelerated capital cost allowance rate as other manufacturing related machinery.
Again, I thank the member for Bruce—Grey—Owen Sound for bringing this matter to my attention.
Business of Supply May 28th, 2008
I know the member from Scarborough wants to change his mind on the carbon tax, but as far as I know, it is still their policy.
That is where they want to take our country: higher taxes, higher spending, deficits, accumulated debt. We are going just the opposite way in the interests of our country.
Business of Supply May 28th, 2008
Mr. Chair, I am thankful for the opportunity to participate in this discussion, which is supposed to be on the 2008-09 main estimates for the Department of Finance.
To begin our work this evening, I think it is appropriate to give the House an overview of the current economic situation in Canada.
Let me state at the outset that in this period of economic uncertainty, the Canadian economy remains strong. We are undergoing our second longest period of economic expansion in history. Our budget is balanced and it will remain balanced. Interest rates are low. Inflation remains within the targeted range. Disposable personal incomes continue to go up.
The unemployment rate is at a 33 year low and employment is on the rise in every region in the country. More than 750,000 new jobs have been created since our government took office.
Canada is one of the few countries where public pension plans have a solid financial foundation.
We are on the best fiscal footing of any G-7 country, with the largest budget surplus as a share of GDP and the lowest debt burden.
However, Canada is facing external challenges it has not seen in some time. Economic growth is running out of steam on a global scale and we are not immune to this phenomenon.
Canada is not an island, of course. As a trading nation within the global economy, challenges from abroad impact us here at home. The slowdown in the U.S. economy is impacting our exports. We are experiencing volatility in global financial markets. A strong Canadian dollar has left several sectors struggling, including the manufacturing, processing, forestry and auto sectors. We are seeing increased competition from emerging economies, like China, Brazil and India. Our population is aging and we are already seeing a shortage of skilled workers. These are the challenges that lie ahead, the realities that we cannot ignore.
As they have in the past, the people and businesses of Canada will show their remarkable capacity to adapt and their strong determination to face all challenges.
What is more, we will face these challenges from a position of strength, built not on the false promise of misguided, short term expensive band-aid economic interventions or subsidies advocated by the opposition, but rather built on strength, in large part on the prudent economic management of our Conservative government, strength, built on the long term economic plan, “Advantage Canada”.
Experience has taught us that a balanced fiscal policy, based on low taxes, paying down debt and disciplined spending, lay solid foundations for a strong, vibrant economy. Broader economic policy needs to be squarely grounded in the long term. Like the great Canadian hockey legend, Wayne Gretzky used to say, “Skate to where the puck is going, not to where it has been”.
“Advantage Canada” is our economic plan. We outlined our plan to Canadians in November 2006 to create fiscal tax, entrepreneurial knowledge and infrastructure advantages.
Our plan is to create a climate that encourages growth and stimulates additional job creation, where hard work is rewarded.
One that will better positions Canada to meet today's challenges while seizing the opportunities of tomorrow.
I am proud to announce to the House that since we introduced our Advantage Canada plan, we have made significant progress in its implementation. First, the solid financial management we have demonstrated will be used as a foundation for our plan.
Unlike other countries, we have used our budget surpluses to reduce the debt load for the next generation. Since forming government in 2006, we have reduced the national mortgage by $37 billion. That is nearly $1,570 for every single man, woman and child in Canada. We are doing more. By 2012-13, total debt reduction since our government took office will exceed $50 billion.
Interest savings from reducing the debt will benefit Canadians directly through the tax back guarantee. This measure will provide income tax relief to the tune of $2 billion a year by 2009-10.
We are also continually reviewing all government programs to ensure that spending is not only efficient, but effective and disciplined.
Canadians do not want their tax dollars wasted. They do not want to return to March madness when previous Liberal governments would spend, allegedly on anticipated surpluses, on anything and everything. They certainly do not want government borrowing against our children's futures by running deficits again.
That is why we have implemented a new expenditure management system whereby all government programs will be evaluated every four years. The system will help eliminate programs that waste resources or are not useful.
As well, we are creating a proud legacy of reducing taxes, bringing them to their lowest level in nearly 50 years with nearly $200 billion in tax relief for Canadians, cutting taxes in every way government collects them, personal consumption, excise, business and much more.
For instance, we are ensuring Canadian businesses can compete and succeed globally by reducing the business income tax rate to 15% by 2012, enabling Canada to achieve the lowest, overall tax rate on new business investment in the G-7 by 2010 and the lowest statutory tax rate in the G-7 by 2012.
These reductions will give Canada a substantial tax advantage over the United States, a statutory tax advantage overall of over eleven percentage points and an overall tax rate advantage on new business investment of more than nine percentage points in 2012.
As the Canadian Council of Chief Executives recently noted:
The federal government clearly has done everything it can to reduce tax rates within the boundaries of prudent fiscal management.
Thanks to budget 2008, the government is taking significant, targeted action in order to continue to implement the commitments it made in Advantage Canada.
In particular, budget 2008 proposes to establish a tax-free savings account, extend assistance for Canada's manufacturing sector, improve the scientific research and experimental development tax incentive credit, while increasing in the future funding for people, knowledge, business, innovation, communities, traditional industries and infrastructure.
We are also making the largest federal public infrastructure investment since World War II, over $33 billion in our building Canada plan. In addition, we have created the office of P3 Canada, which will help to lever that money with the provinces and the private sector.
With municipalities in Canada, we made the gas tax permanent for municipalities so they can lever that gas tax year going forward. We expect that this will fund more than $100 billion in new infrastructure for Canada over the course of the next seven years.
Unlike the opposition parties, we do not believe in raising taxes, especially a new, massive, punitive, permanent carbon tax, a new punitive tax on gasoline. We do not believe in doing that and we do not believe in spending recklessly like the Liberals did with their three budgets in their last year in office.
We certainly do not believe in running deficits, but the Liberals have spending plans of $60 billion, plus they voted for a bill in the House this afternoon that will cost another $10 billion, so they are at $70 billion now in new spending. They will fund that by taxing Canadians and seniors, by dramatically increasing the cost of gasoline, of home heating fuel for Canadians, particularly for Canadians who can least afford it, who are on fixed incomes, driving up manufacturing costs in Canada.
Business of Supply May 28th, 2008
Now he wants to talk about water supply.
Business of Supply May 28th, 2008
Mr. Chair, I know Premier McGuinty's little brother is upset about the carbon tax. I know his big brother is against the carbon tax and I know that the member for Ottawa South is in favour of it. He is chirping about--
Business of Supply May 28th, 2008
Mr. Chair, there are so many interesting allegations.
When I was the treasurer of Ontario, I can tell the member that I left the province with a surplus, which the Liberals could look up if they bothered to get their facts right, which they do not. I am amazed at the low quality of the research over there. I thought they had some money budgeted for research in the Liberal caucus, but apparently they are using it for something else.
We were in surplus when I was the treasurer of Ontario and that is the way it should be. We are in surplus now as well.
Business of Supply May 28th, 2008
Mr. Chair, I know a bit about this, having been the treasurer of Ontario. We reduced corporate taxes in the province of Ontario, but then the Liberals were elected in the province of Ontario and do you know the first thing they did, Mr. Chair? They got rid of that corporate tax reduction and increased corporate taxes in the province of Ontario, such that they are now approaching 15%. It is typical. It is what Liberals do. They spend and they raise taxes and they run deficits.
Business of Supply May 28th, 2008
Mr. Chair, the general federal corporate income tax rate is: 2007, 22.1%; 2008, 19.5%; 2009, 19%; 2010, 18%; 2011, 16.5%; 2012, 15%.
It is regrettable that the previous government did not move in this direction. It would have been a good stimulus for Canadian business.
Business of Supply May 28th, 2008
Mr. Chair, we are moving to 15% by 2012, but on January 1 there was a change, so we are checking on that.