Paul Martin

[The Economy, February 21st, 2001]

Mr. Speaker, I would really like to welcome the Leader of the Opposition to the real world if he has only now discovered that there has been a revision by most private sector forecasters that there is a slowdown going on in the United States. Well, then, welcome to reality.

The government has been saying that for quite some time. What the government has also said in terms of its own forecasts is that in the October statement we put in a contingency reserve and the prudence to cover this very kind of eventuality. In short, we have shown foresight and that Canada is the stronger for it.

[The Economy, February 21st, 2001]

Mr. Speaker, the hon. member ought to listen to the people that he is quoting. Neither Mr. Drummond nor the vast majority of other economists have said that we should be producing a budget.

They have asked for us to do an economic update to update the projections. Of course we have said on a multitude of occasions that when the consensus of private sector forecasters is ready, of which Mr. Drummond is one, it will obviously be the time to consider an update, as indeed we did last spring.

[The Economy, February 20th, 2001]

Mr. Speaker, and our health care system is a lot better. I want to go back to the Canada pension plan. To the best of my knowledge, at all of the federal provincial meetings that I was at, including that with the then treasurer of Alberta, there was support for the Canada pension plan.

Is it now the position of the Alliance that it is against the Canada pension plan? Is it the position of the Alliance that it would renege on the unfunded liability?

What is the Alliance saying about the Canada pension plan, which is one of the pillars of our retirement system? It is one that all Canadians believe in. The hon. member ought to stand now and tell us if he supports it or if he does not.

[The Economy, February 20th, 2001]

Mr. Speaker, the hon. member knows we operate on the basis of the consensus of private sector economists and that consensus will be out somewhere near the end of March. The hon. member also knows that in October we set in place a substantial contingency reserve and prudence to cover exactly the kind of slowdown we are now seeing.

I have another question, if I might. When the hon. member refers to the Canada pension plan premiums, is he referring to the Canada pension plan premiums which we and the provinces, me and the then treasurer of Alberta, the current Leader of the Opposition, increased? Are those the ones that he is referring to?

[The Economy, February 20th, 2001]

Mr. Speaker, since we became the government, we have reduced contributions to employment insurance by over $6 million. Again in November, we made another 15 cent cut.

We have already indicated our intention to lower taxes and contributions and to encourage the Canadian economy. That is why we are going to get by despite the downturn in the United States. That is why Canada is going to have the best growth rate of all G7 countries this year.

[The Economy, February 20th, 2001]

Mr. Speaker, I might as well ask the questions as well as answer them. Somebody had better ask decent questions in the House.

The hon. member ought to know that as a result of our tax cuts our corporate taxes will be five percentage points lower than those in the United States. Our capital gains taxes are now lower than those in the United States. Our treatment of stock options is now lower and more generous than that in the United States. As a result we have the largest fiscal stimulus ever brought in by a Canadian government.

[The Economy, February 20th, 2001]

Mr. Speaker, the hon. member knows full well that we are raising the threshold. It was this government that brought in indexation which makes sure that it happens automatically each and every year.

I would simply ask a question of the hon. member. If the hon. member wants to cut taxes, which I understand is his point of view, will he also at the same time have to cut spending in order to pay for those tax cuts? If he is to cut spending, does he think that cutting government spending will add stimulus to the economy?

[Finance, February 19th, 2001]

Mr. Speaker, I assure the hon. member that I will be discussing this issue, that I have discussed it with my colleague and that I will be discussing it with my provincial colleagues. We will continue to do that.

[Finance, February 19th, 2001]

Mr. Speaker, the hon. member ought to know that the equalization formula is constantly under discussion by officials and that is going on.

He also ought to know that I will be meeting with my provincial counterparts in the next month following the Prime Minister's commitment not only to increase the base for last year but to discuss the overall economic situation as it applies to the recipient province.

[The Economy, February 19th, 2001]

Mr. Speaker, the fiscal action they are talking about in the United States is major tax reductions spread over a 10 year period, with the bulk of them to occur at the end of the period.

In our case we brought in a massive tax plan on a per capita basis equal to that of the United States. It was not done over 10 years. It was done over 5 years and ours was front end loaded. The fact is that while the hon. member talks about it, we did it.