Mr. Speaker, I am pleased to enter the debate on the Liberal Party's opposition day motion regarding eliminating government waste, balancing the books, et cetera. I should serve notice that I would like to share my time with my colleague from Vancouver East.
We are being asked to look at ways that we can once again tighten our belts to assist in balancing the budget. We heard the Minister of Finance deliver a budget recently and conspicuously nowhere in his budget or in the opposition day motion put forward by the Liberals today do we hear any reference whatsoever of going after the real architects of the fiscal meltdown that we find ourselves in today. Nowhere in the federal government budget or in the Liberal opposition day motion do we hear any reference to the corporate greed and wretched excess that caused us to plummet and spiral into this financial mess we are in today.
While we do not disagree with the Liberals that we should be shaking every bush and turning over every stone to look for ways to come back to a balanced budget, we have to take note that the current government and previous governments squandered Canada's fiscal capacity to cope with periods of predictable periods of financial downturn which were built into a fair tax regime that existed and developed, and put us into a balanced budget situation.
Nowhere in the federal budget or the opposition day's motion does it acknowledge that we squandered in a reckless and irresponsible fashion the fiscal capacity to cope with a financial crisis, and it leaves us $50 billion in the hole. The government gave that fiscal capacity away to its friends in the corporate community in the blind faith and hope that it would pull us out of the financial mess we are in. It does not.
Part of the Liberal Party's opposition day motion today deals with government communications and criticizes the government for what it spends on government communications. Let us be honest, government communications has always been a cesspool of abuse and fraud in successive federal governments going back to the Mulroney and Chrétien years. Do I have to remind members of the name Chuck Guité for Heaven's sake? As we visit this notion that government communications today may be taking liberties with taxpayers' dollars, let us be honest with ourselves and take note that it has always been problematic.
If the federal government were truly interested in balancing the books, it would be more creative. All we have heard from the President of the Treasury Board so far is that the Conservatives are going to balance the books by freezing public sector wages. In other words, this whole financial crisis is now our problem, it is now ordinary Canadians' fault. We are the ones who are going to have to tighten our belts. They are even going after public sector pensions as a way to balance the books. Talk about a complete absence of any creative thought in terms of dealing with a financial crisis.
In the short time that I have let me raise one suggestion that has conveniently been overlooked by both the Liberals and the Conservatives. This is tax time. Most of us are filling out our tax forms. Year after year, Parliament after Parliament, government after government, I have been harping on the same theme: “tax motivated expatriation” is the term chartered accountants use. “Sleazy, tax cheating loopholes” is the term that I use. Big enough offshore tax havens exist big enough to sink a yacht and believe me, that is what is going on, to an estimated $7 billion worth of lost revenue.
Instead of going after the nickel and dime small potatoes that the Liberals suggest today and instead of going after public service pension plans, the government is again willingly overlooking $7 billion in lost revenue so that its friends in the corporate sector, the high rollers, the architects of the fiscal problems we are having today can continue to enjoy their tax-free status without compromising or sacrificing all the benefits of being a Canadian.
I learned from a book that I recently read called Who Owns Canada Now: Old Money, New Money and The Future of Canadian Business by a right-wing columnist, and I do not think she would mind being called right-wing, Diane Frances, a frequent contributor to The Financial Post et cetera. She points out that Canada allows its wealthy families to go offshore paying a one-time departure tax on their wealth of a 25% capital gains tax, thereby avoiding the 46% taxes they would pay if they withdrew any of that money in this country. From that day forward any money that pocket of money generates exists tax-free and can be repatriated into the country tax-free.
So these wealthy families move all of the money in their trusts offshore. They leave their children in Canada, generate even further wealth with that money through investment offshore in a tax haven, and then support their families in this country tax-free. Their children pay no tax on it when it is repatriated and they pay no tax on it when it is generated outside of this country.
The United States of America is not that stupid. Every nickel that goes into the country as offshore earned capital is taxed. A beneficiary in the United States pays 35% tax on that money, yet we overlook this.
How did the Minister of Finance miss this? I do not think he missed it. I think the government deliberately overlooked it, just like the Liberal government overlooked this same situation when the former Prime Minister of Canada moved his entire Canada Steamship Lines to an offshore tax haven. He pays 2.5% tax in that country.
I urge members of Parliament to take note. While we chase our tail going after nickel and dime abuse of government communications programs, there are big fish to fry out there. There is big money, low hanging fruit, that the government could have, and should have, gone after. It could have plugged these outrageous offshore tax loopholes. Sometimes I think Liberal and Conservative governments view the taxpayers of Canada in the same way P.T. Barnum used to view circus-goers, as a bunch of suckers. Goodness knows, we have left a lot of money on the table and it is an outrageous situation.
In the minute that I have left I also want to remind members of Parliament that if we are serious about prudence and probity, and honesty and high ethical standards in governance, the most effective and efficient way to ensure those things on behalf of the people that we represent is through a robust access to information and freedom of information regime in this country.
We cannot legislate morality. We cannot legislate moral and ethical standards. It is the oversight and the scrutiny of an informed general public that encourages behaviour that we can be proud of in our public service. They are the only instruments by which we will elevate the standards of moral and ethical behaviour and good management of our money.
I have also seen in the years that I have been here successive federal governments ignore repeated requests from all sides of the House to make our freedom of information act work. We should change the name of that act to the public right to know act because the public has a right to know what its government is doing with its money, and now that information is being denied to them.
It was the shroud of secrecy that allowed corruption to flourish in the Liberal years, and that shroud of secrecy is alive and well in the present Conservative government. In fact, the government is obsessed with secrecy, obsessed with denying the public the right to know basic information about its budgets, about its behaviour overseas, about all of its activities. The government has built a barrier around itself unlike any we have ever seen.
Freedom of information is the oxygen that democracy breathes. We cannot have a robust democracy in this country without enforcing the public's right to know. It is in that way we will encourage good behaviour with our money, and it is in that way that we will eliminate the waste that the government is being accused of in the opposition day motion today.