Jim Flaherty

[Corporate Takeovers, May 14th, 2007]

Mr. Speaker, there is no question that the Canadian economy is strong. Unemployment is at its lowest level since 1974. The rate of participation in the workforce is the highest it has ever been in the history of Canada. We are paying down public debt. We have the strongest economic fundamentals in the entire G-7 and they are getting stronger, thanks to this government.

I say to the member opposite that he should consider not only the investments that are being made in Canada, but the investments being made by Canadian corporations abroad, which are plentiful.

[Finance, May 8th, 2007]

Mr. Speaker, I have to congratulate the member opposite again, but this is not quite on the same subject. This is on his allegation yesterday about Alcoa and trying to relate that to taxing.

He gets the award given to him by the Financial Post, “The silliest line of the day on this is the Liberal finance critic's claim that the anti-tax haven initiative was responsible for opening the gates for Alcoa”.

Congratulations on the silliest line of Monday.

[Finance, May 8th, 2007]

Mr. Speaker, I want to congratulate the member opposite for two reasons. One is that he has now decided to support our policy against tax havens. He said last night, “When the finance minister says that we should go after abuses by tax havens and double-dipping, we agree”. Finally, he has agreed and I congratulate him on that observation.

[Corporate Takeovers, May 8th, 2007]

I know, Mr. Speaker, that the member may be obsessed about a newspaper headline here and a newspaper headline there.

The fact is in the last quarter of 2006 Canadian companies continued to exhibit a strong appetite for foreign companies, acquiring 456 purchases valued at $70 billion, mainly in the United States. What we are seeing is expansion by Canadian based companies abroad. Yes, there are some transactions within Canada. Yes, we have the rules in the Investment Canada Act, which we will follow.

[Finance, May 8th, 2007]

Mr. Speaker, again, the member opposite ought to have a look at the facts. We have one large Canadian corporation right now in negotiations to acquire a very large United Kingdom company. Is the member opposite saying that we should interfere in that transaction, when major Canadian corporations are making acquisitions abroad?

Does he realize that the level of activity by Canadian corporations abroad far exceeds what is happening the other way around? Does he want us to impose restrictions that are not reciprocal with other countries in the world? Is that what he suggests as a remedy in the Canadian corporate world for competitiveness? I think not.

[Finance, May 8th, 2007]

Mr. Speaker, I would invite the member opposite to read page 223 of the budget and he will see that we have targeted tax havens. That is precisely the target that we have, just as it was the target on income trusts.

We on this side of the House believe in tax fairness. Ordinary Canadians work almost six months of the year and get their T-4 slips, and have to pay their full share of taxes. So should Canadian corporations, no matter how they operate. No double dipping; no tax havens.

[Finance, May 8th, 2007]

Mr. Speaker, in the budget we said that we would crack down on corporations that use tax havens. We said we would improve information agreements with other countries. We said we would provide more resources to the Canada Revenue Agency to strengthen its audit and enforcement activities.

I hear from the Leader of the Opposition today that he is against those steps. In 2005 when he was revenue critic, the finance critic for the Liberals said this:

I am committed to ensuring a level playing field for all Canadians, and that is why I take the issue of tax havens seriously.

He just--

[Senate Appointment Consultations Act, May 7th, 2007]

Shame.

[Senate Appointment Consultations Act, May 7th, 2007]

That is so low. These are qualified people. You should be ashamed of yourself.

[Senate Appointment Consultations Act, May 7th, 2007]

These are qualified people.