We are, Mr. Speaker. Second, the money borrowed for the HST is going to the Campbell government to bribe that government to raise taxes through the HST. Taxes will be higher for British Columbia residents. Perhaps the hon. member would like to counter that point. That somehow taxes will be lowered for British Columbians under the HST simply is not true. Taxes go up. It is an undeniable fact.
I know the government likes to portray itself as the slayer of taxes, but in this case, and in the case of EI premiums, it has in fact raised taxes on people. The government has raised taxes through the EI premiums on employers and employees. To suggest that is not true is a falsehood, and the minister knows that because he is a smart guy. When the government raises taxes on businesses, as the Conservatives have done, the effects are that businesses hire fewer people.
The ideology that we see underpinning everything else that the Conservatives do has been proven a falsehood. Canada just came through a generation of tax cuts which the Liberals made previously to the largest corporations. Companies only get to take advantage of these tax cuts if they are making profits. The companies that are actually suffering, the ones that are laying off employees, will tell us that a tax cut to a suffering company does nothing. If a company is writing off losses, it is not paying taxes, so an 18 point rate decreased to a 17 point rate means nothing. Real investment in education and infrastructure and all those other things that our competitors have done is really where the investments need to be for those struggling parts of our economy.
We have seen CEOs in the corporate banking sector take some of the largest windfall profits ever and at the same time also receive tax cuts from the government, as if that somehow would have made them more competitive.
I remind the Conservatives in the House that it was their party that fought for the mergers of banks, that fought to allow banks to sell insurance at the bank wicket. I can remember the current Prime Minister actually using the example of AIG in the United States, which is one of the largest banks in the world, saying that Canada needed an AIG.
We saw what happened to AIG. We saw what happens when we try to make things so big that they cannot fail. They become a destabilizing factor in the economy. Eventually, they start to fail, as they did in England and the United States. The secure Canadian banking sector, which was conservative in its planning, even though it wanted to merge, faced resistance in the House of Commons, particularly from New Democrats, who said the merger would make neither the Canadian banking economy nor the national economy more competitive. New Democrats resisted this.
At the time, the Conservatives favoured the merger. They wanted to let them get so big they could not fail. There is no such thing. These types of economic philosophies and policies have proven to be a failure.
If the corporate tax rate really triggered productivity, we would be more productive than our counterparts in the U.S. or the European Union. But we are not. Canada is not more productive than either of those places, even though we run far lower corporate tax regimes.
When one looks for evidence to support this lower-is-better philosophy, other than a knee-jerk response, it seems that we are asking the average citizen to pick up the tab that was previously paid for by corporations.
Good corporate citizens understand their role and do not mind paying for the benefits and services they receive: the road to their plant, the trained workers, the abundant energy resources, many of which came from public investment.
Many companies tell us they locate in B.C. to take advantage of the low energy rates, which resulted from public investment in the fifties, sixties, and seventies. They have better access to cheap renewable power. In Alberta, where energy was deregulated, it is a disincentive to investment. It pushes businesses away. When Alberta deregulated its energy sector, which was supposed to make it more competitive, better for business, power rates across the province went up $750 million.
What did the genius Alberta government do? It cut a cheque for $750 million and sent that around to individuals and businesses. They were happy to receive the money, because they were hard up. It was their own money. The government was cutting them cheques for their own money.
Mixing politics with economics leads to failure. It has proven to be a failure time and time again. A fair taxation rate requires corporations to pay their fair share.
The other day, I asked a corporate accountant how low a rate he wanted, and he told me zero. I asked him if he felt a duty to share responsibilities, to pay for all the great things we receive as Canadians, like health care and public education. He said he would be happy to leave that privilege to the employees. How generous of the corporate sector, to leave the privilege of paying taxes to the employees. That is wrong.
This way of thinking will do nothing to build this country, to give it a fabric we can be proud of. The way we manage our natural resources makes a difference. We see this in Skeena—Bulkley Valley in the northwest of B.C. We are deindustrializing right now, as we have been doing for the last 10 years. We lost 400,000 manufacturing jobs in the recession. The government claims a certain number of jobs are back. Most of them are not in the industrial sector, and most of them are not in the value-added sector. Most of them are not well-paying jobs that one can raise a family on. These are more temporary jobs, lower-paying jobs without benefits.
That is not a recovery, but the government is going to flash out the number, try to pull the wool over our eyes, and tell us we are just the same as we were before the recession started. We are not. We have fundamentally changed.
Motions meant to enshrine this type of ideology into government policy are idiotic. Members have to take a calm breath and realize that to build this nation we must gather together and make up our minds to impose fair taxation rates on both corporations and citizens, rates that will help restore this country to its previous glory.