Joe Oliver

[Business of Supply, May 14th, 2014]

Mr. Chair, I would like to thank the member for North Vancouver for that excellent question.

The key risks to Canada's outlook remain external and tilted to the downside. The risk of a sovereign debt crisis in Europe has declined, but it has not been eliminated as yet. Growth is low and inflation is very low.

The move towards a more normal monetary policy in the U.S. has exposed vulnerabilities in some emerging economies, and several are experiencing higher capital outflows, weaker exchange rates, and declining equity prices. This could translate into weaker than expected growth for these countries and increased volatility in global capital markets. In addition, the pace of economic growth in the U.S. was much weaker than expected during the first quarter of the year. While growth was affected by temporary factors, including severe winter weather, there is a risk that the projected pickup in U.S. growth during the remainder of this year could be lower than expected.

In light of these risks, for fiscal planning purposes, the government has maintained the downward adjustment for risk to the private sector forecast for nominal GDP at $20 billion for 2014 through 2018.

The government will continue to evaluate economic developments and risks to determine whether or not it would be appropriate to maintain this adjustment for risk in the future.

As we have repeatedly said, Canada is not immune to the global economic challenge beyond our borders, which is why we must focus on positive initiatives to support job creation and economic growth while returning to balanced budgets.

While the opposition would introduce reckless spending during a time when the recovery is still fragile and risks remain, our Conservative government will take no economic lessons from them. We will stay the course. Economic action plan is working. It is connecting Canadians with good-paying jobs, and it is securing Canada's long-term prosperity.

As long as Canadians are still looking for work, our job is not yet done. Our government is always exploring new ways to unlock Canada's full economic potential.

[Business of Supply, May 14th, 2014]

Mr. Chair, with respect to the previous question, I did not want to ignore the member's suggestion regarding the disability plan. He can make that suggestion. We will take it into consideration, as we do all legitimate suggestions for the budget.

Here again, like the party of the opposition, the member is implying that the debt that was incurred in response to the great recession would have somehow been less if his party had remained in power. Of course, the opposite is the case, because his party urged us to spend a great deal more. We would have been nowhere near a position of having a surplus this year.

[Business of Supply, May 14th, 2014]

Mr. Chair, we have introduced a lot of programs for those who are disabled and also for low-income families. We have reduced the GST. We reduced the lowest personal income tax rate. We increased the basic personal amount. We introduced the universal child care benefit, which provides $100 a month to families for each child under age six. We are introducing and enhancing the working income tax benefit, thereby lowering the welfare wall and strengthening work incentives for low-income Canadians already working. We are increasing the amount of income that families can earn before the national child benefit supplement is fully phased out. We are maintaining the GST credit level.

We have also taken actions to support vulnerable Canadians, including seniors and low-income veterans, by increasing from $500 to $3,500 the amount that can be earned before GIS is reduced. We are introducing a new guaranteed income supplement top-up for low-income seniors. We have provided almost $220 million over five years to extend war veterans allowances. We have done many things for Canadians.

[Business of Supply, May 14th, 2014]

Mr. Chair, with respect to the beginning of the speech, I would just say assertions without facts prove nothing. Unlike the high-tax, high-spend Liberals, our Conservative government believes in low taxes, leaving money where it belongs, in the pockets of hard-working Canadian families. We have a strong record of tax relief. It has meant saving nearly $3,400 for a typical family of four. This includes cutting the lowest personal income tax rate to 15%, increasing the amount Canadians can earn without paying tax, introducing pension income splitting for seniors, reducing the GST, eliminating over a million poor Canadians from the income tax roles, introducing and enhancing the workers' income tax benefit, and the list goes on.

[Business of Supply, May 14th, 2014]

Mr. Chair, first, I must say I am a bit amused. I think the member opposite was actually implying that I agreed with the proposition of his leader, that budgets balance themselves. This, of course, is not reality. When the economy grows, it does reduce the debt burden, provided there is no deficit. That is precisely the point. A balanced budget requires a plan and it requires discipline. Budgets do not balance themselves.

In respect to CPP, Canadians do not want to pay a higher payroll tax, and that is why we lowered taxes and brought forward new incentives for Canadians to save for retirement. We introduced pension income splitting, pooled registered pension plans, and tax-free savings accounts, and launched consultations on a new target benefit pension plan. Despite the opposition's reckless high tax plans, we continue to take action to put more money back into the pockets of retirees.

[Business of Supply, May 14th, 2014]

Mr. Chair, let me just go back to a previous question. The rate on EI will be cut to 1.47%, which is the lowest on record. There is no question that a growing economy addresses the debt issue in part, but of course that only can happen if we are not in a deficit situation, so when we get out of the deficit situation and move to a surplus next year, the growth in the economy will of course, over time, reduce the ratio of debt to GDP. That is even without the money allocated to the repayment of debt, which is something that we will be considering as well next year.

[Business of Supply, May 14th, 2014]

Mr. Chair, as I have explained at least on two occasions, we have a break-even period of seven years.

The member opposite wants to find out what is in the budget. He apparently likes the current budget so much that he cannot wait for the new one.

We will be consulting extensively with Canadians before we announce the next budget.

[Business of Supply, May 14th, 2014]

As I mentioned, Mr. Chair, beginning in 2017, premiums will be set according to a seven-year break-even rate. That is preceded by a three-year freeze on EI rates, leaving $660 million in the pockets of job creators this year alone. The break-even will ensure that premiums are no higher than they need to be.

Liberals used EI premiums paid by workers and businesses as a political slush fund. They raided and completely wiped out the EI account of almost $60 billion.

[Business of Supply, May 14th, 2014]

Mr. Chair, the view of our government is that it would be a serious mistake to increase the EI premiums at this time, given the international fragility, and certainly payments for pensions would fall into the same category.

[Business of Supply, May 14th, 2014]

Mr. Chair, we have frozen EI increases for a period of three years. We understand that small business is the cornerstone of our economy, creating jobs that support families and communities. That is why we announced the three-year freeze. This will $660 million in the pockets of job creators and workers this year alone.

What is more, beginning in 2017, premiums will be set according to a seven-year break-even rate, and that will ensure premiums are no higher than they need to be.