Jim Maloway

[Jobs and Economic Growth Act, June 8th, 2010]

Mr. Speaker, the member talked about the air travellers security charge and pointed out that the tax will now be raised 50% by the government. It will be the highest tax in the world, even exceeding Holland's. The government is only spending part of that money on airport security. It will be using the extra money it is raising from Canadian travellers for general revenue.

The sad part of this whole exercise is that the international security charge will now be $25 whereas the one in the United States is only $5. For several years we have been losing Canadian passengers to American air carriers. The government is the new best friend of the American airline industry because while Canadians have been travelling with American carriers over the last three or four years because the taxes are lower on air fares in the United States, it is going to make it even more difficult for the Canadian carriers to stay afloat and remain competitive with the Americans.

How in the world is the government trying to be competitive when it does things like this?

[Jobs and Economic Growth Act, June 8th, 2010]

Mr. Speaker, clearly of all the things that do not belong in this 880-page budget implementation bill, the smoking gun, the item that stands out the most, is the issue of the Canada Post remailers.

The fact is the government introduced that measure in Bill C-14 and in Bill C-44 over the last couple of years as stand-alone bills in the House and were rebuffed by this Parliament. It was unable to get it through.

Now the government has snuck it in under Bill C-9 in the hopes that its Liberal allies will close their eyes and vote for it or avoid the vote and allow this to pass.

How can the member, with a straight face, claim that this is a pure budget implementation act when he knows it is not?

[Jobs and Economic Growth Act, June 8th, 2010]

Mr. Speaker, the member talked about AECL, which is our largest crown corporation. We have put $22 billion into it over the life of the company and now the government is looking at selling it off and probably getting maybe $300 million, if we are lucky.

The member was present when there were 140 workers from AECL in the gallery basically begging the Liberals to vote against this bill and defeat the government. Why is the Liberal Party going along with the Conservatives and essentially allowing them to pass Bill C-9, which he knows is 880 pages long and throws all sorts of items into the mix that do not belong in it, particularly AECL?

In terms of AECL, the government has commissioned a report about how to proceed and it has never consulted Parliament regarding--

[Jobs and Economic Growth Act, June 8th, 2010]

Mr. Speaker, the Conservative government has increased the air travellers security tax by 50% which now makes this tax the highest in the world. It is actually higher than Holland's which was the highest before. That is going to mean an international security charge of $25, whereas in the United States, our neighbour and competitor, the charge is only $5. In fact, the government is not even spending all of this money on security. It is actually collecting more than it is currently spending on security. It is putting Canadian airlines at a disadvantage. We have had a problem for years with Canadians booking with American airlines because the taxes are lower.

By increasing this tax by 50%, the government is driving more Canadians across the border to fly on American carriers at the expense of Canadian carriers. I want to ask the hon. member, why would the government do this and how is this good economics?

[Jobs and Economic Growth Act, June 8th, 2010]

Mr. Speaker, the member probably knows that whatever happens in the United States eventually spills over to Canada within six months to a year.

The member is also probably aware that there are people in the United States who are concerned about a double-dip recession. There is $1.3 trillion in commercial loans coming due fairly soon. The commercial real estate market is collapsing in some areas. There is a freeze on credit for small business. The banks are classifying commercial loans as risky and are being very conservative. Manufacturers cannot get lines of credit.

In fact in 2008, for the 400 largest U.S. contractors, 80% of their business was in the private sector. That has now changed and the 400 largest U.S. contractors are doing 80% of their business in the public sector, which is great until it runs out at the end of the stimulus package at the end of 2010. Of course, unemployment will rise.

Given that Canada will have to deal with the aftershock and the after-effects of this, what does the government have in terms of contingency plans if a double-dip recession does occur in the United States later this year?

[Jobs and Economic Growth Act, June 8th, 2010]

Mr. Speaker, the member is absolutely correct in his analysis of Bill C-9. We have an omnibus bill which is 880 pages long; it has to be a record. The government is adding in all sorts of measures that have nothing whatsoever to do with budget implementation. More to the point, they are measures the Conservatives have been trying to get through the House for the last two years.

For example, on the post office remailer issue, the government introduced Bill C-14 and Bill C-44 over the last two years. The Conservatives brought those bills to the House, debated them, but could not get them through the House, so they simply have seized the opportunity while the Liberals are sleeping to stick it into this huge omnibus bill and ram it through the House. That is the way the government is approaching the legislative agenda today and it is absolutely wrong. It is the wrong way to proceed.

I would like to ask the member for his comments.

[Jobs and Economic Growth Act, June 8th, 2010]

Mr. Speaker, Canada has to be concerned about a double-dip recession in the United States. We know that $1.3 trillion worth of commercial loans are coming due and commercial real estate values are collapsing in a lot of the different markets. There is a freeze on credit for small business. Banks are being very restrictive in their commercial loans and very conservative in their lending. Manufacturers cannot get lines of credit.

In fact, in 2008, 400 of the largest U.S. contractors were doing 80% of their business in private sector work. Now, the 400 largest U.S. contractors are doing 80% of their work in the public sector, which will be running out at the end of the stimulus package at the end of this year. Unemployment is then going to rise.

How does the member think Canada will be impacted by this possible double-dip recession in the United States?

[Jobs and Economic Growth Act, June 8th, 2010]

Mr. Speaker, the member spoke about venture capital markets. I would like to find out from him about the health of the Canadian venture capital market. It is difficult in the United States, as well. Most of the venture capital markets are in Massachusetts and Silicon Valley. The rest of the country has a hard time competing. It is the same for Canada.

Ian MacLellan, the founder of ARISE, a company in Waterloo that manufactures solar panels, was looking for venture capital, but he had to move to Germany and become a partner with the German government. That is one example of Canada losing out. A venture capital market would have been helpful to him at that time.

I would like the member to give us an update on the state of venture capital in this country. Labour investment funds across the country in different provinces have had varying degrees of success. There have been some successes and some failures. It is a tough market, regardless of what government is in power--

[Jobs and Economic Growth Act, June 8th, 2010]

Mr. Speaker, the member does a good job on the finance committee.

There is certainly growing concern in the United States about the possibility of a double-dip recession. It has been discussed recently. There is $1.3 trillion in commercial loans that will be coming due soon. There is a freeze on credit for a lot of small businesses. Banks are classifying commercial loans as risky, so they are being very conservative in their lending practices. Manufacturers cannot get lines of credit.

In fact, in 2008 the 400 largest U.S. contractors were doing 80% private sector work, and now the 400 largest U.S. contractors are doing 80% public sector work which will run out at the end of the stimulus package at the end of this year. Unemployment will then rise.

Does the member agree with that assessment of a potential double-dip recession? What will be the spillover effects to Canada and when?

[Jobs and Economic Growth Act, June 8th, 2010]

Madam Speaker, I would like the member's comments on the possibility of a double-dip recession in the United States. We are aware that $1.3 trillion worth of commercial loans will be coming due in the foreseeable future. There is a freeze on credit for small business in the United States. Manufacturers cannot get lines of credit. In fact, 400 of the largest contractors are now doing work in the public sector where just a couple of years ago 80% of their business was in the private sector. In addition, 2010 will mark the end of the stimulus package and unemployment is going to rise.

Does the member have any thoughts about the possibility of a double-dip recession in the United States, which could have a spillover into Canada?