John McCallum

[Infrastructure, February 8th, 2002]

Mr. Speaker, it is regrettable that this has occurred. I think the hon. member is exaggerating the disruptions by an order of magnitude.

As I said before, the government is working as quickly as possible to obtain the information, at which point we will have discussions with the provinces and then come to a decision.

[Infrastructure, February 8th, 2002]

Mr. Speaker, as I have said in the House before, right now the government is seeking information because these payments go back to 1972, and it takes some time to do that. The auditor general is involved. When the information is developed the government will have discussions with the provinces and then make a decision.

[Airline Industry, February 7th, 2002]

Mr. Speaker, once again the member does not understand the facts. In the early years when the government is buying equipment we will spend more than we receive. In latter years it will be the opposite. We are committed in legislation. It is very simple. If there is an excess in revenue, we will lower the charge.

[Airline Industry, February 7th, 2002]

Mr. Speaker, unfortunately the hon. member across the Chamber does not understand the facts. The fact of the matter is the government has guaranteed that over the course of the five year program this will not be a revenue enhancing measure at all. Indeed, the legislation now before the House commits us to reduce the charge to the extent that the revenues over that period exceed the costs.

[Budget Implementation Act, 2001, February 6th, 2002]

Mr. Speaker, I welcome this opportunity today to present Bill C-49, the Budget Implementation Act, 2001 for second reading. This bill would implement many of the measures announced in the 2001 budget.

I would like to begin by giving an overview of the 2001 budget, which will set the context of the measures contained in this bill.

Allow me to go back for a moment to September 11. The terrorist attacks perpetrated that day in the United States constituted first and foremost a great human tragedy, measured in lost lives, destroyed families and rekindled fears,as the minister of finance pointed out. Budget 2001 deals with the economic impact of this tragedy.

It is based on a long term government plan to build a strong economy and to ensure a safe society, but it also responds to Canadians' immediate concerns regarding the economy and security following the events of September 11, in four ways.

First, the budget stimulates the economy in this period of global downturn and uncertainty. It provides Canadians with the means to fully benefit from the expected recovery.

Second, it acts to build personal and economic security by protecting Canadians, by keeping terrorists out of our country, and by maintaining a secure, open and efficient border.

Third, it keeps the nation’s finances healthy by balancing the budget this year and for the next two years.

Fourth, it fully protects the $100 billion tax cut announced in October 2000 and the $23.4 billion in increased support for health care and early childhood development announced in September 2000.

I wish to assure members of the House that the events of September 11 have not shaken the government's budgetary convictions.

Our government continues to lay the foundation for a better future. It continues to invest in human resources, to cut taxes, to pay down the debt and to build a strong economy.

We stand by our commitment to reduce the debt. In addition, the 2001 budget confirms that the government will continue to implement its long term plan of investing in the future without falling back into a deficit situation. This is the result of our prudent approach.

Having given a background regarding the budget, let me turn now to an overview of the bill. The major points the bill seeks to achieve can be summarized as follows.

First, with respect to transportation there is the creation of the Canadian air transport security authority, along with the introduction of the air travellers security charge. Second, there are some measures to improve the income and business tax system, as well as the employment insurance system. Third, there are measures to establish the Canadian strategic infrastructure fund and the Canada fund for Africa.

Let me speak briefly to each of these major areas in turn, beginning with the Canadian air transport security authority. As part of the government's comprehensive response to the events of September 11, the 2001 budget committed $2.2 billion over five years to enhanced air travel security. This commitment is crucial to assuring air travellers that Canada continues to have one of the safest and most secure air transportation systems in the world.

Air security services will now be consolidated under the new Canadian air transport security authority which will provide key air transport security services, a consistent and integrated air transport security system across the country, and enhanced security performance standards and services.

The authority will be responsible in the following areas. The first is the certification of screening contractors and officers. The second is pre-board screening of passengers and their belongings, taking over this function from the airlines and of others who have access to aircraft or restricted areas through screening points. The third is the acquisition, deployment and maintenance of explosives detection systems and conventional pre-board screening equipment at airports. The fourth is federal contributions for airport policing related to civil aviation security measures. The fifth is contracting with the RCMP for armed police on board aircraft.

Transport Canada will continue to regulate and monitor the provision of security services while the new authority will be responsible for delivery. This separation between service delivery and regulating and monitoring will enhance checks and balances in the system. Air travellers can now be assured that Canada continues to have one of the safest air transportation systems in the world.

I come now to the question of the air travellers security charge. The enhanced air travel security system will be funded by a new air travellers security charge. The charge will be collected by air carriers or their agents when airline tickets are purchased.

Enhanced air travel security will principally benefit air travellers using the air transportation system. A user charge is therefore fiscally responsible and reasonable.

For travel within Canada the total cost of the charge will be $12 for a one way ticket and $24 for a round trip. The charge on a ticket to the continental U.S. will be $12. It will be $24 for a ticket to travel outside Canada and the continental U.S. These amounts are inclusive of GST where the GST applies.

For travel in Canada the charge will apply to flights connecting the 90 airports where the government is planning security enhancements. Small aircraft such as those carrying only four to six passengers as well as certain specialty services such as air ambulance services will be exempt. All proceeds of the charge including net GST will be used to fund the enhanced air travel security system.

The last point on this issue is a critical and very simple one. If revenues exceed costs over time, the government will reduce the charge.

Let us now look at the measures having to do with the EI system.

The first measure I would like to examine improves parental benefits under the EI program.

In order to improve the support provided for families, among other measures, the 2000 budget extended the duration of parental benefits under the EI program from 10 to 35 weeks, thus allowing parents to spend more time at home with a newborn or a newly adopted child. Bill C-49 further improves these benefits.

Under the current EI program, certain seriously ill women may not qualify for extended parental benefits because of the 50 week ceiling on the combined total of sick leave, maternity benefits and parental benefits an individual is allowed.

Bill C-49 increases this ceiling by one week for each week of sick leave taken by a mother during her pregnancy or while she is receiving parental benefits, so that she may benefit fully from the special benefits. This change will take effect on March 3, 2002.

The second measure takes into account the fact that parents must now apply for parental benefits in the year following the birth or adoption of a child. This may limit benefits when a child is hospitalized for a long period after birth or adoption.

In order to allow a bit of leeway to parents who want to start applying for the parental benefit once the child comes home from hospital, they will now have up to two years to apply. This change will come into effect once Bill C-49 is passed.

I come now to the third element, the Canada strategic infrastructure fund. As I said, the government's long term goals are to build a strong economy and a secure society and to improve the quality of life for Canadians. The strategic investments in the 2001 budget help achieve these objectives by dealing with today's needs and bridging to a better tomorrow.

The modern economy of the 21st century requires a backbone of sound physical infrastructure to sustain the nation's growth and our quality of life. Canada must have the physical infrastructure it needs to succeed. Previous budgets allocated funding to improve provincial and municipal infrastructure. In particular the 2000 budget introduced both the infrastructure Canada program and the strategic highway infrastructure program.

To meet the need for additional support for large strategic infrastructure projects, Bill C-49 will establish the Canada strategic infrastructure fund with a minimum funding of $2 billion as set out in the 2001 budget. This new fund will compliment other federal infrastructure initiatives such as the two programs I just mentioned.

Working with provincial and municipal governments in the private sector, the Canada strategic infrastructure fund will provide assistance for large infrastructure projects in areas like highways and rail, local transportation, tourism, urban development, and water and sewage treatment.

Investments in these projects will stimulate job creation and confidence in the short term and will make the economy more productive and competitive in the medium term. The minister of infrastructure will be responsible for all government infrastructure initiatives to better co-ordinate all government activities in this area.

I come now to the subject of the Canada fund for Africa. As my hon. colleagues will recall, the Speech from the Throne last January indicated the long term well-being of Canada and Canadians depends upon success in improving global human security, prosperity and development.

At the G-8 summit in Genoa last July, African leaders presented their proposals and G-8 leaders, Canada included, pledged to support this initiative. The partnership is about Africans taking control of their own development.

Since then the Prime Minister has restated his commitment that development in Africa will be one of the principal themes of the G-8 summit that we will host this coming June. As was stated in question period today, the Prime Minister's support recently in New York for this project received strong support.

In recognition of this commitment the 2001 budget announced $500 million for African development. The new Canada fund for Africa will provide $500 million in funding for activities that will help reduce poverty, provide primary education and set Africa on a sustainable path to a brighter future.

I come now to investing in skills and learning. Another strategic investment in the budget involves these very things. The acquisition of skills and learning is further encouraged through a number of changes to the tax system.

First, tax assistance will be provided to help apprentice vehicle mechanics cope with their extraordinary costs. A second measure affects adult students who received government assistance to pay their tuition fees for basic education at the primary or secondary school levels.

This assistance must be included in income without any offsetting credits. For many the tax cost of receiving this assistance is a real burden and discourages them from advancing their education. Bill C-49 will exempt from tax the tuition assistance for basic adult education provided under certain programs including employment insurance. This measure will apply to eligible tuition assistance received after 1996.

A third measure will help more students undertake lifelong learning. Beginning in 2002 the education tax credit will be extended to students who have received financial assistance for post-secondary education under certain government training programs including employment insurance.

These changes would provide significant tax relief to approximately 65,000 Canadians for upgrading their skills and give them access to the same tax benefits that are available to other post-secondary students.

I will briefly mention a number of tax measures to improve the personal income tax and business tax system. First, there would be an improvement of the tax treatment of intergenerational transfers of woodlots.

Second, we would make permanent the 1997 budget measure that provided special tax assistance for donations of certain securities to public charities.

Third, there is a measure to improve the system for providing GST credits.

Fourth, to provide a cash flow benefit to small business, federal corporate tax instalment payments for January, February and March 2002 would be deferred for at least six months without penalty.

Finally, although this is not an exhaustive list of measures, the budget allows full deductibility for the cost of meals provided to employees at temporary construction work camps where employees could not be expected to return home each day.

In conclusion, Canada's air system is among the safest in the world. The new air security authority will make it even safer.

The charge for air passenger security is financially wise and reasonable, and it is only logical that the costs of these new expenses relating to security be borne by passengers using the airlines rather than all taxpayers.

The changes to the parental benefits available under EI will help families of newborns or newly adopted children.

The Canadian Strategic Infrastructure Fund will make it possible for Canada to have the material infrastructure it requires for success in the 21st century.

The Africa Fund is concrete proof that Canadians have not lost sight of their obligation to help those who are less well off than themselves.

What is more, the income tax changes help enhance the simplicity and fairness of our taxation system.

The 2001 budget reflects the decisions reached by the government in these uncertain times. Managing the economy in hard times is a matter of balance. The 2001 budget is the best example of this. It provides the support that is essential during a crucial period, but not at the expense of past progress or future prospects.

In conclusion, I encourage hon. members to give the legislation their full support. I remind them that both the Canadian Air Transport Security Authority and the Air Travellers Security Charge must be in place by April 1.

[Budget Implementation Act, 2001, February 5th, 2002]

moved for leave to introduce Bill C-49, an act to implement certain provisions of the budget tabled in parliament on December 10, 2001.

(Motions deemed adopted, bill read the first time and printed)

[Canada Customs and Revenue Agency, January 31st, 2002]

Mr. Speaker, the facts of the matter are clear. The error has been discovered, but we do not have all the information going back to 1972.

That information is in the process of being collected. At the appropriate moment the government will have conversations with the provinces and make a decision on what to do.

[Ways and Means, January 30th, 2002]

moved that a ways and means motion to implement certain provisions of the budget, tabled in parliament on December 10, 2001, be concurred in.

[Ways and Means, January 29th, 2002]

Mr. Speaker, pursuant to Standing Order 83(1) I wish to table a notice of a ways and means motion respecting an act to implement certain provisions of the budget tabled in parliament on December 10, 2001, and I ask that an order of the day be designated to debate the motion.

[Committees of the House, December 13th, 2001]

Mr. Speaker, this is an excellent report. The member opposite is getting all excited. It is a well crafted report. He totally misses the point.

There are two critical chapters. Chapter II, “Seeing Through the Storm: Holding Course on the Productivity Agenda”, deals with the short term issues and sets out five priorities for the budget, on page 33. First, the government should invest in national security. Second, the government should not return to deficit. Third, we should follow through on the health care spending. Fourth, we should follow through on the $100 billion tax cuts. Fifth, we should spend more on research.

Those are the short term priorities stated by the committee. Every one of them is in the budget. All his citations come from chapter IV, which is entitled, “Planning for the Future”. The sensible members of the finance committee understood that these would not generally be in the budget, given the exigencies of the day, but each and every one of the short term objectives set by the finance committee were indeed carried through in the budget.