Rick Dykstra

[PREBUDGET CONSULTATIONS, February 8th, 2008]

Mr. Speaker, the member for Victoria's presence at the hearings in Victoria was appreciated. It is good to know when we travel across the country, that members have the opportunity, such as was provided to her, to sit in, encourage, listen and advise on the state of their communities.

With respect to homelessness, there is not a government that has paid more attention to homelessness and dealing with this issue. As my colleague, the member for Peterborough, stated, we have done more in the last two years than in the previous twenty years to ensure we are committed to addressing the issue of homelessness. For example, in the 2006 budget $800 million in a third party trust account for the provinces and territories.

I know the member would like to take credit for having that in the budget, and she can. However, the fact is the Conservative government put it in the 2006 budget to commit the $800 million for the provinces and territories. It was not only a commitment, but we put the money in a third party trust account. Some provinces still have not accessed those funds to deliver on homelessness. We again acknowledged it as an issue to be dealt with in the 2007, budget by allocating $1.4 billion to address affordable housing and to address homelessness in the country.

We are not only prepared to talk the talk, we are prepared to walk the walk.

[PREBUDGET CONSULTATIONS, February 8th, 2008]

Mr. Speaker, it is good to see you in the House on a Friday morning. It seems like everyone is in a festive mood. It must be Friday, when we have a chance to get back to our ridings and talk about the budget.

The budget will be coming up soon. Some excellent work has been done by a number of my colleagues on the finance committee, from all parties. They have come together to put together a prebudget submission, with some 36 recommendations. for the finance minister's consideration. If the finance minister, the finance department and our government see action items that should be implemented in the next budget, they will be in there. Those that are not will be considered in the future.

I have been honoured to participate in two prebudget consultation processes over the past two years and have travelled across Canada to hear from hard-working Canadians. Last year we heard from over 400 groups and we made 52 recommendations to the Minister of Finance. Some people say that good work does not come out of committee. In fact, good work does come out of committee. Seventeen of those 52 recommendations were in the 2007 budget. These consultations do matter.

This year we heard from 166 groups and individuals. The report prepared by the committee contains 36 recommendations. We flew from Vancouver all the way across the country to Halifax. We listened to the concerns of people from all walks of life.

In 2006 there may have been a bit of a hangover from a long and tired government. We faced a number of presentations from people who were upset and who felt that they had not been heard over the past number of years. These people had made their presentations to the finance committee. They put the work and effort into their presentations. Time after time and year after year they felt no one had listened to them.

These people were not there to complain. In the process we went through of 166 presentations. Not everyone was there to say exactly the same thing or to say that they would not like to be included in the budget. It was a very positive experience from Victoria to Calgary, back to Ottawa, to Halifax and then back to Montreal. The outlook from the people and organizations on the future of their communities and our country was nothing less than stellar and positive.

I mentioned the locations where we went. I thought I would highlight a couple of the presentations that were made because they left an impression on me in the approaches they took and about what they spoke.

The Greater Victoria Chamber of Commerce commended the fiscal update and its benefits to Canadians. The organization asked all members of Parliament to continue to be responsible and to ensure that we provided opportunities for small businesses, individuals and entrepreneurs, hard-working families and Canadians so they too would have an opportunity to continue to grow their small businesses.

The Canadian Sport Centre in Calgary reminded all of us of the importance of physical fitness and Canada's stature in the world. It was interesting because representatives from the centre explained the 2010 Olympics. This week we celebrated the two year countdown to those Olympics. Athletes from across the country, including the great riding of St. Catharines, are in Calgary now training and getting ready for those Olympics. The slogan is “Own the Podium”. We are using that slogan to ensure we will be at the top of the podium in 2010.

One of the comments made was Canadians were changing a little. A number of years ago that slogan may have been “share the podium”. We have come a long way. We no longer think of ourselves as not rightfully having a spot on any podium, whether it is the environment, sports or finance. We can own the podium.

Halifax was the only available opening for a representative from Assembly of First Nations to make a presentation to us. It touched me that he had travelled all the way from my home riding of St. Catharines to Halifax to make that presentation. He put forward a plan and a vision for young aboriginal people in our country. He told us that there was a positive road for them as well.

In Montreal we heard from a company that recommended a tax incentive for employers that developed their own pandemic preparedness plan.

The 2006 budget included $1 billion over five years to fight future pandemics. People have said that we made the right investment in 2006. They have asked that it be extended to allow small and medium sized businesses to set a plan in place for their companies, their employees and their families.

It is not only government that should be responsible for these types of issues. All of us need to be responsible. When Canadians see it in the budget, they come back with ideas and concepts that take it past bureaucracies and government having to pay for or be responsible for this. There is another way to deliver health care on behalf of Canadians.

There are a number of recommendations that I want to briefly highlight.

We have suggested that the Income Tax Act be amended to extend the accelerated capital cost allowance for a five year period for manufacturing and processing, machinery and equipment. This is one of the most positive components of the 2007 budget. Whether in Abbotsford, British Columbia or in Peterborough, Ontario, companies are investing in their shops. They are buying equipment that they could not afford before this. They can purchase it now because they can write the depreciation off over a two year period.

There was not a stop that we did not make. Companies and organizations said that this was one of the most positive things they had seen in a budget in years. They did not ask us to reinvent it. They did not ask us to come up with a different way of delivering it. All they simply asked for was an extension.

My community of St. Catharines has been hit hard with manufacturing closures, as have other communities. We have worked hard to assist this sector through policies in the 2007 budget. This week we voted on providing $1 billion to the provinces and territories so they could assist companies in their communities, which really need help.

We also recommended amending the Excise Tax Act to permit people arriving in Canada to make duty free purchases at Canadian airports. Members may not think this is a big deal. This would not take any money out of the ministries at the federal level. It would simply be an opportunity to create and support jobs in Canada.

We also recommended amending the Income Tax Act to give enhanced incentives for charitable giving. We heard from many not for profit organizations. They wanted the opportunity to increase the donations from Canadians. We can compete with anyone in the world in this regard. We own the podium when it comes to charitable donations. The potential to add to this is something we hope will find its way into the budget.

We heard many times about the child fitness tax credit and what a great benefit it was to many Canadians. We heard from the new Olympic committee on the summer Olympics. It talked about preparing our summer athletes to own the podium. More than that, it is about preparing our children to become physically fit, to learn about working in a team atmosphere and having the positive influence of coaches and leaders.

I am proud to be a member of the finance committee. I am proud we have put forward an opportunity and a report for the finance minister. I am sure some of it will see its way into the budget.

Again, it was good to hear the valuable input and presentations across the country. This is a valuable report that will do good work for Canadians.

[Committees of the House, February 5th, 2008]

Mr. Speaker, I can think of no better sustainable decision than the 2007 budget. Whether we talk about the infrastructure investments in it, whether we talk about equalization, whether we talk about specific investment in Quebec, the 2007 budget did all of those things.

The member spoke about going back to the stone age. I certainly do not advocate it, but if he is a fan of the Flintstones, I will not criticize or go there. I do not have the time to do it. However, I will say that the important word in the stone age is “stone”. Across this country we had seen a lack of investment in infrastructure over the past number of years.

In the 2006 budget there was an investment of over $16 billion in infrastructure. In the 2007 budget there was an investment of $17 billion in infrastructure, not including the $1 billion in the 2006 budget for universities, specifically for infrastructure. There is over $33 billion to partner with the municipalities, to partner with the provinces to rebuild an infrastructure system.

As the member mentioned the word, a lot will be made out of stone. If he believes that is not an important component of this country and the infrastructure that we certainly rely on, I would argue that sadly, the member is mistaken.

I would suggest that the hon. member be careful about the words he uses, because I can assure him there are communities, companies and people across this country who are waiting for bridges, for investments in roads, for sewer and water--

[Committees of the House, February 5th, 2008]

Mr. Speaker, I thank the member for his appreciation for the hard-working employees of the auto sector. The members of the CAW and members of the community of St. Catharines work extremely hard and are dedicated individuals to that sector. Productivity and quality coming out of the Glendale plant in St. Catharines could not be better. It is one of the best not only in our country but in North America. I appreciate his noting that.

There is certainly from a broad base perspective a focus that we have taken as a government to ensure that all sectors in this country are ably prepared to tackle the issues that they face today and to continue to be competitive. Not only that, but we have to make sure that over the long term they are going to be competitive, that they are going to be able to remain in business, that they are going to stay in communities like St. Catharines, Burlington, Peterborough and Oakville.

I certainly look to the Minister of Industry and his efforts to come forward with a further plan that will see from a strategic perspective investments in some of the areas that we need to make and that we have made. I think of training and re-educating and the role that we need to play to ensure that we remain competitive and continue to work toward a much more competitive environment here in our country.

[Committees of the House, February 5th, 2008]

Mr. Speaker, my colleague made note of the industry report, which was debated at great length in the finance committee prior to our coming back here in December. He spoke well of the report. The industry committee was ably chaired by the member for Edmonton—Strathcona who also came to the finance committee to speak to this report when it was being debated.

Although my colleague questions and honours the report itself, he did not want the chair of the industry committee to speak to the issues that he is speaking to today. I never had the chance to ask him why he would not let the chair speak but I will leave that as it may.

One of the most important aspects in that report, which was submitted to the finance minister, was the accelerated capital cost allowance, the two year program that would benefit industries all across this country. In fact, the most important part of that report was implemented in the 2007 budget. Prebudget consultations were held across the country and Canadians and businesses told us that this was a good idea and that it was important to have it in the budget. Hopefully there is the potential to extend that program.

The Minister of Finance listened closely to the comments and has read the submissions that were made at the prebudget consultations to consider further extending the two year manufacturing accelerated capital cost allowance. We will need to wait for the budget but I know he listened very closely.

[Committees of the House, February 5th, 2008]

Mr. Speaker, I also thank the hon. member for Montmagny—L'Islet—Kamouraska—Rivière-du-Loup for providing me with the opportunity to talk about what this government is doing to help the manufacturing sector. I also want to say that the finance committee is trying to work through these issues with all parties. I certainly appreciate the member's efforts in that regard.

I want to mention a few facts about our economy because, quite frankly, our economic fundamentals are exceptional. We are experiencing the second longest period of economic growth in the history of our country. Core inflation has remained within our set range of 1% to 3%. Our unemployment rate is the lowest in more than 30 years and there are more Canadians participating in the workforce than ever in the history of Canada.

We are reducing debt and we are on the best financial footing of any country in the G-7. We are the only country of the G-7 with ongoing budget surpluses, plus a falling debt burden.

Nevertheless, we must remain prepared for the challenges that confront us, including a significant rise in the Canadian dollar and its impact on the manufacturing sector, increased competition from emerging economic giants, such as China and India, and a shortage of skilled workers and an aging population.

As the world changes, Canadians need to work together to make Canada even more prosperous and strong, which is why our government developed Advantage Canada, a strategic, long term economic plan designed to improve our country's economic prosperity both today and in the future. This plan sets Canada on a path toward achieving five key advantages that will strengthen our nation and show a modern, ambitious and dynamic Canada to the rest of the world.

First, the plan will create a tax advantage for Canada by reducing taxes for all Canadians and establishing the lowest tax rate on new business investment in the G-7.

Second, a fiscal advantage will eliminate Canada's total government net debt in less than a generation and will create a strong foundation on which to build sustainable prosperity.

Canada's entrepreneurial edge will reduce unnecessary regulation and red tape and lower taxes to unblock business investment. By building a more competitive business environment, consumers will receive goods at lower prices and Canadian businesses will be better equipped for global success.

The Advantage Canada plan will also create a knowledge advantage by developing the best educated, most skilled and most flexible workforce in the world.

The fifth part of the plan focuses on an infrastructure advantage in order to create modern, world-class infrastructure to ensure the seamless flow of people, goods and services across our roads and bridges, through our ports, our gateways and via our very important public transit systems. Each component of the Advantage Canada plan will benefit the manufacturing sector.

Today's motion asks the government to introduce tax measures to support Canadian manufacturing. Recently, the Minister of Finance was in Quebec City as part of the government's prebudget consultations to hear about the challenges facing the manufacturing sector. The finance committee went to Montreal to listen to manufacturers about the types of steps that we need to take to enhance the manufacturing sector in our provinces, territories and throughout the country.

Although it has been a difficult period for many, manufacturers in Canada have been resilient. In the face of adversity, they have acquired more and better technology and equipment. They have improved productivity, have become more diversified and have broadened their reach in this highly competitive, global marketplace. Manufacturers are responding to this difficult situation and so are we.

The government is lifting the tax burden by lowering taxes of every description, including a historic reduction in business taxes.

Canada's strong economic and fiscal foundation has provided the government an opportunity that few other countries have: to put in place historic, broad based tax reductions that will strengthen our economy from one end of the country to the other.

I am talking about the comprehensive tax reduction action that this government has taken since coming into office. Many of the tax reduction initiatives brought forward by our government are broad based, while others will provide direct strategic tax relief to the manufacturing sector.

The capital cost allowance system determines how much of the capital cost of an asset a firm may deduct each and every year. The rates are generally set so that the deductions for capital costs are spread over the useful life of the asset. This ensures the accurate measurement of income for tax purposes and promotes neutrality with respect to investment decisions. Where a capital cost allowance rate is too low to reflect an asset's useful life, an increase to that rate can reduce the tax burden on investment and increase the efficiency of the tax system.

As part of the government's continuing review of capital cost allowance rates and to further the Canadian tax advantage, budget 2007 contained a number of changes to capital cost allowance rates to better reflect the useful life of assets. For example, budget 2007 increased the capital cost allowance rate for buildings used for manufacturing or processing to 10% from 4%. This change will better reflect the useful life of the buildings in the sector because, as we know, in the manufacturing business buildings tend to need repair and rework based on the fact that they are used sometimes on a 24-hour basis. Those repairs should be reflected, quite frankly, in the ability of the company to make and earn a profit.

This year's budget also increased the capital cost allowance rate for other non-residential buildings to 6% from 4%. Furthermore, the budget increased the capital cost allowance rate for computers, an important asset for the manufacturing sector to 55% from 45%.

In addition to those rate changes, to better reflect the useful life of assets in recognition of the economic challenges facing the manufacturing and processing sector, budget 2007 introduced a new temporary investment incentive for manufacturing and processing businesses.

For investment in eligible machinery and equipment, until the end of the 2008 year, businesses engaging in manufacturing or processing will be eligible to claim an accelerated capital cost allowance at a rate of 50% on a straight line basis. This rate will allow these investments to be written off in a two-year period on average after taking into account the half year rule which treats assets as if they had been purchased in the middle of the year.

Taken together, those measures will provide a much more favourable climate for manufacturing and processing businesses to accelerate or increase their investment in buildings, in machinery and in equipment. What is more, those measures will assist the manufacturing sector in restructuring to meet the challenges they are currently facing.

Ours is not a government that rests on its laurels. Even after the budget of 2007, we knew we had more work to do for individual Canadians, for families and, in particular, for businesses across the country, which is why in the economic and fiscal update we are reducing the general corporate income tax rate to 15% by 2012. This broad based tax reduction will improve the investment environment for every sector of the economy, including the manufacturing sector.

Tax reductions announced by this government, the majority of them broad based, will result in $8.2 billion in tax relief for manufacturers and processors. This includes tax reductions totalling $2.6 billion over this and the next five years in the recent economic statement of October 30, 2007, and $5.6 billion for measures announced in the last two federal budgets and the tax fairness package.

However, It is not only the federal government that can provide tax relief to Canadian businesses. Provinces also have an important role in improving Canada's business tax competitiveness.

To encourage further provincial action, budget 2007 put in place a financial incentive to facilitate the elimination of provincial capital taxes and indicated the government's willingness to work with the provinces to complete the sales tax harmonization initiative. Canadians are already reaping the rewards of the first of these measures.

Since the announcement of the measure to encourage provinces to eliminate their capital taxes as soon as possible, both Quebec and Ontario have acted to qualify for the incentive and Manitoba has also announced its intention to do so.

Canada now has a solid, statutory, corporate rate advantage over our partners in the United States and this advantage will continue to grow year after year through 2012.

In addition, as a result of this government's actions, Canada will meet the Advantage Canada goal of establishing the lowest overall tax rate on new business investment by 2011.

As I said at the outset, I am glad the hon. member's motion provided me with the opportunity to tell the House what action this government has taken to assist our manufacturing sector.

[Justice, January 28th, 2008]

Mr. Speaker, Canadians are really seeing the true colours of the Liberals when it comes to being tough on crime.

Last week Premier Dalton McGuinty met with the Liberal leader and pleaded with him to ask his Liberal senators to speed up the passage of the tackling violent crime act. The Leader of the Opposition said, no.

Premier McGuinty said:

Now it's winding its way, in a very slow fashion, through the Senate. The Liberals have some influence over that. We want that to receive passage.

Will the Minister of Justice please explain to the Leader of the Opposition why the bill should become the law of the land?

[The Environment, December 11th, 2007]

Mr. Speaker, Canada recognizes the need to take a complete approach to address climate change and air pollution.

The world is moving to address climate change and the environment and Canada intends to lead the effort at home and abroad.

Today, a software program for businesses, which assesses the viability of clean energy options, was announced. A lot of pollution is happening over here on this side of the House.

Could the Minister of Natural Resources tell the House how our government is ensuring that Canada is at the leading edge of clean technologies to reduce emissions and adapt to environmental change?

[Budget and Economic Statement Implementation Act, 2007, November 29th, 2007]

Mr. Speaker, I listened closely to the contradictory message delivered by the member, with whom I sit on the finance committee. I was very attentive yesterday to his motion and was intrigued that he used the industry report as part of his presentation this morning.

He may have used, I would like to call selective memory, but probably a selective choice of words in the document from which he quoted. If he had read the document carefully, he would have seen that one of the important parts of that document was the foreword inserted by the chair of the industry committee. It states that on behalf of the committee, the recommendations presented in this report should be implemented in a timely fashion. He does not say abruptly, stupidly, without thought, without the necessary work in order to ensure that taxpayer money is spent wisely and that all companies in this country that would benefit from further tax reductions or proper investments from government could benefit from them.

While the member was quick to point out the aggressive nature upon which he acted yesterday, which I do not think was in a very thoughtful manner, he should have accepted the amendments moved by the Conservative members of the committee. We are in agreement with the report and take no issue with it, but we certainly will not move forward in a manner that either handcuffs industry and manufacturing in this country or handcuffs the financial aspect of the Minister of Finance's responsibility.

Therefore, I would ask the member to at least acknowledge that the implementation that the finance minister and the government included in the budget, which he supported, the accelerated capital cost allowance for manufacturing that has produced $1.8 billion of investment, of which the majority of the funds are used by manufacturing companies in Quebec, is a benefit to his province and this country.

[Child Safety, November 28th, 2007]

Mr. Speaker, as the father of three children, it is my duty to look out for their well-being. When purchasing products, all Canadians deserve to have confidence that what they buy will be safe for them and for their children. Parents want to know what their government is doing, what action it is taking to ensure our children's safety.

During the 13 long years of Liberal mismanagement, not once did the Liberals take action on this issue. Will the Parliamentary Secretary to the Minister of Health please let us know what the government is doing on behalf of our children?