Mr. Speaker, I am pleased to speak today to Bill C-51. The comments made by other members illustrate how out of touch and out of tune the government was with the new realities that it faced one year ago in October 2008.
As a matter of fact, up until that time I think the government felt that it was doing reasonably well because it t was applying its right wing economic model to an economy that had been expanding for the better part of 10 years. As has been mentioned by Liberal speakers, the Conservatives were left a surplus by the previous Liberal government so they felt that by applying their Reaganomic principles to the economy it would increase the expansion of the economy. Therefore, they proceeded with tax cuts and all the typical measures that a right wing approach to government can take.
In fact, the Conservatives can point out statistically that the measures they have taken have actually helped the economy, and they gain adherence by that argument. However, the fact is that governments of all stripes, right wing, centrist and left wing governments, can do a very good job of governing when they have an expanding economy because, basically, it is dividing up a pie that is growing every year.
The problem comes when the good economy stops and we get into a recession. The government then needs to take measures at that point in time. I think it is the right wing type of government that is ill prepared for an economy when it starts turning bad. There were signs that the Prime Minister was completely out of touch with the realities of the economy. Other than that, he was simply trying to ignore what, in all likelihood, he knew was about to happen.
He went through the election. The election campaign showed him as a relaxed politician who wore sweaters. When he was asked in the middle of the campaign why the stock market was dropping, he said that it was a buying opportunity and that it was time for Canadians to get out there, buy stocks and buy Nortel when it was down to 25¢. That was his flippant response to the crisis that was surrounding him.
At about that time, we knew that economies, such Iceland's economy, were on the verge of declaring bankruptcy but for some reason he managed to ignore the problem. The government then had to play catch-up to try to get back in the game.
I saw Preston Manning a few months ago and if he were still around I wonder what he would have to say about the current type of government. A strong right wing Conservative would be looking at a government that owns General Motors and is running a $56 billion deficit. I am sure he would not approve.
If the government had achieved the majority that it was looking for, I think it would have tried to apply the right wing economic approach to the problem. Fortunately for the people of the country, that is not what happened. The Conservatives were short of their majority government and therefore had to come to terms with the reality that was in front of them, which was an economy that was faltering badly and their status as a minority government in the Parliament. The Conservatives proceeded to move as though they had a majority, acting very high and mighty I might add, to the point where they almost lost their government because of it.
What we have seen from the government since the beginning of the year has been a big improvement, a big improvement in its approach and in its attitude. It has a way to go yet but it is showing signs. As I have said before, if the government acts in the proper fashion to try to make a minority government work, it is conceivable that it could last the entire four years. I know that is highly unlikely but it could have a longer lifespan than it thinks.
The government is also aware that going into an election is a two-edged sword. However, we know it will try to prod the opposition into voting against it whenever it sees blips in the polls that show it could win the government.
The government recognizes that people do not want a $300 million election expense. It is so lucky that it got out from under that problem the last time. We can all recall the great fanfare when it brought in legislation that fixed the election date for October of this year. We were all waiting for this fixed election, planning our campaigns and nominations based on this date, and the government turned around and torpedoed its own legislation by calling an election that cost the taxpayers $300 million. That is something the government must wear and will continue to wear. If the government does prod and poke at the opposition to force a premature election, I think it is aware that it works both ways here. The government may carry the can for calling or causing that election, causing a $300 million expense that the public did not want or need, and it may lose some seats over that.
Regardless of how well the government thinks it is doing coming out of the Quebec byelections or other blips here and there, I really think a number of Conservatives over there are hunkering down for a longer period of time and are starting to develop a proper approach to making this Parliament work.
We have seen some signs here that the government has been moving in the right direction, which is why our party is supporting Bill C-51 and some of the measures in it. We have a spectacle here where we have the official opposition, the Liberal Party, being kind of caught. They must have slipped out of the barn door when it was open and then the door was shut and they could not get back in. Now they are trying to get back in here to be on the right side of voting on Bill C-51 to ensure the other parties are not sending out ten percenters and campaign brochures in the next months reminding people that it was the Liberal MPs who voted against a very popular home renovation tax credit plan.
I know there must be a lot of queasiness and uneasiness on the part of a number of Liberals over there because they know that, unlike some other political decisions and issues that we deal with in this country, the home renovation tax credit is very simple, and the Conservatives know this very well. This is not a complicated problem that the Liberals can say that they voted against it because there was something else in the bill that they did not like. There is room for interpretation and that is what they must deal with.
This is very black and white. Either the Liberals vote for this popular measure or they vote against it. I can see the Liberals being very unsure of themselves. A few days ago, one of the members of the Liberal Party was speaking to Bill C-51 and I do not remember if he even indicated which way he would vote on this particular bill. We will see when the time comes.
The bill does a number of things. One of the major things that it brings in is the home renovation tax credit. That particular program is certainly not a new program. It is a very cost effective program. Over the years we have seen governments of all stripes, provincially and, I believe, federally, bring in programs such as this.
Way back in the 1970s, the Manitoba government under the NDP had the critical home repair program. My minister was in charge of it and it was my job to ensure that people had applications. I remember having to fill out applications for people. I would get calls at the legislature from people who had been approved asking why the carpenters showed up late and things like that. That type of program was targeted toward keeping Manitoba's senior citizens in their houses a few years longer, keeping them from moving out of their houses and going into senior citizens buildings. It was very cost-effective and worked very well. The government approved the applications. The homeowners paid a portion. It was a cost-shared program.
That is just one example of a program that was very popular at the time. In fact, it helped in the re-election of the government in 1973. I am sure the Conservatives already know that, or if they do not, they are making notes of it. That home renovation program was extremely popular and extremely cost-effective and it did help us to win re-election.
This program is a bit different. I have heard different criticisms about the program, as far as there being a refundable tax credit option and the fact that it is not user friendly for people with lower incomes.
We know the government is going to re-announce this program. That is an obvious fact. It has been a popular program. We do not know how much it is going to cost the government in taxes at this point, because the government does not know how many people have actually used it and it will not know until people file their income taxes next year. That will be past the date of the budget of next year. Regardless of what it costs, it is going to be too enticing for the government not to announce an extension, especially when there may be an election shortly thereafter or certainly within the period of time that the extended home renovation tax credit program for next year would cover.
There is one interesting point which members should note. With the collusion of the federal Conservative government and the provincial Liberal governments in British Columbia and Ontario on the HST, what we are going to see in those provinces effective July 1, exactly when the government's extension of this home renovation tax credit program will be in full swing for next summer, is that the tax benefits homeowners would be getting will be taken away. Currently home renovations are not covered under the tax. When the taxes are combined, we are going to see a broadening of the tax base which is going to include dozens of new items. Some of the items which are going to be included are the very home renovation projects, such as painting, stucco and roofing. Currently they are subject to only one tax but next year they would be subject to the blended tax. What the government is giving people with one hand will be taken away with the other hand. Personally, I do not see that as being smart economics. It sure is not smart politics if an election is called around that time.
If the government is going to re-announce the program, I would suggest that it take the advice of one or two of our members that it retool the program so that people with low incomes can take advantage of the program. I would suggest that the government look at extending it. By that time, the government may have some idea of what this will cost in terms of loss of tax revenue.
I would say this is not a real big loss in tax revenue. There are spinoff benefits. This is one program that will show enormous amounts of spinoff. That is what the government needs and wants in this program.
As a matter of fact, I notice that the Bloc members are on side with this program. They claim that they had it in their election platform last year. It is the Liberals who have found themselves on the outside looking in wondering how this all happened. The vote has not yet happened but we will see if they vote against the bill.
In the remaining time I want to deal with some of the other important issues that are dealt with in the bill.
The bill introduces the first time homebuyers tax credit. This is something the real estate associations have lobbied for and very strongly support across the country. We want to facilitate making it as easy as possible for first time homebuyers to buy that first home. Particularly at a time when the economy is in big difficulties, this is something that is very important.
In addition, there is tax relief through the working income tax benefit.
Part 1 extends the existing tax deferral available to farmers in prescribed drought regions to farmers who dispose of breeding livestock because of flood or excessive moisture. It sets out the regions prescribed either as eligible flood or drought regions in 2007 to 2009.
This is certainly one provision of the bill that has not received a lot of comment in speeches. Most members have focused on that important issue of the home renovation tax credit. They have not dealt to a great extent with some of the other provisions of the bill.
In addition, part 2 authorizes payments to be made to the consolidated revenue fund for multilateral debt relief in relation to offshore petroleum revenues. It allows for $200 million per year to be paid to the multilateral debt relief fund for a total of up to $2.5 billion from 2009 to 2054.
I am not going to be able to finish all of the points dealing with Bill C-51 but I want to make the point that $174.5 million is being allocated to Nova Scotia as negotiated with the provincial government. This is a good idea and something that should be done.
Finally, there are also amendments to the Bretton Woods and related agreements. They are being amended to implement amendments proposed by the board of governors of the International Monetary Fund.
As well, the Broadcasting Act is being amended to increase the borrowing limit of the CBC. There was a rocky period of time at the CBC with budget cuts over the years and with threats of closure. The CBC is vital, not as vital perhaps in the urban areas, the big cities of Canada, but it is extremely vital in the rural areas of Canada and particularly in the far north where it might be the only station that some people can receive in some places.
