Robert Bouchard

[Business of Supply, May 10th, 2007]

Mr. Speaker, as I was saying earlier, the real shame is the way the Conservatives' changed their mind on their election promise.

In taxation, measures must always be fair. In that respect, we must advocate taxing these trusts. I believe that would be the fairest measure for Canadians and Quebeckers.

[Business of Supply, May 10th, 2007]

Mr. Speaker, as I said in my presentation, we are voting against the Liberal Party motion. We are against it because it takes a step backward. We think this measure must be upheld.

However, we deplore the Conservatives' attitude during the last election campaign, when they informed Canadian and Quebec citizens that they would not intervene in income trusts. When they came into power, they did indeed intervene. This prompted a certain attitude in investors. Some had bought more, believing that the government would not interfere.

We must also criticize the Conservatives' attitude toward their broken election promise.

[Business of Supply, May 10th, 2007]

Mr. Speaker, first I would like to congratulate my colleague, the member for Jeanne-Le Ber, for his speech. Like him, I rise today to speak to the motion tabled by the Liberal Party with regard to income trusts.

As pointed out by my Bloc Québécois colleagues, we supported both the ways and means motion and the 2007-08 federal budget. The latter changes the taxation of existing income trusts, which will receive the same tax treatment as corporations at the end of a four-year transition period. Furthermore, it will no longer be possible to establish new income trusts.

There are reasons for our support. First, we must realize why corporations register as income trusts. In the March 2007-08 federal budget, the Minister of Finance indicated that, year in and year out, the different levels of government lost $400 million in revenue because of income trusts. And this was before companies such as Bell and Telus announced that they would convert to income trusts which, in and of itself, would have inflated tax losses to about $1 billion annually. This measure, which has allowed corporations to avoid paying significant amounts of tax, had to be eliminated.

Furthermore, the income trust structure practically forces a company to pay 100% of its profits to its shareholders at the end of the year. Although the shareholders are the main beneficiaries of this measure, it has a negative impact on the economy. If the company retains part of the profits for an investment project, for instance, it must pay the maximum amount of taxes on that non-distributed revenue. This is why, in addition to the tax losses associated with the conversion of a growing number of income trusts for reasons that are strictly tax motivated, we must also look at the potential loss of productivity in our businesses, in the context of a serious productivity crisis in the manufacturing sector of Quebec and Canada. Between 2005 and 2006, Canada dropped from seventh place to tenth place in the world, according to the World Competitiveness Yearbook 2007.

Over the past few months, thousands of investors have been pressuring members of Parliament to reverse this decision. I am sure we have all met citizens who have come to us to tell their stories. In my riding, some of my constituents told me that the drop in the stock market cost them thousands of dollars. During the last election campaign, the Conservative Party promised not to touch income trusts. Investors trusted that party, trusted the government, and either kept such investments or acquired more, which meant that those investments became even more attractive and we saw an artificial inflation of the price. The Conservative government is therefore partially responsible, because it deceived thousands of investors during the last election campaign.

The Bloc Québécois supports this decision, but deplores the Conservatives' lack of honesty during the last election.

It goes without saying that steps had to be taken to eliminate the corporate practice of converting to income trusts in order to avoid paying taxes. Until now, only shareholders were taxed on dividends, not the trust itself.

I also want to mention the importance of keeping campaign promises to voters. A promise made to the people is sacred and must be respected. During the election campaign, the Conservatives had two options. They could easily have said that they would make changes once in power, or they could have avoided creating false hope by saying nothing about it. In other words, they should have stuck to what was in place and made a decision at the right time.

In 2006, companies that decided to convert to income trusts accounted for $70 billion worth of market capitalization, and that is not including telecommunications giants BCE and Telus, which also planned to convert.

Canada has about 250 income trusts worth about $200 billion in sectors ranging from real estate, oil and gas and telecommunications to food processing and manufacturing. The income trust craze was getting so big that it was endangering the national economy.

Again yesterday, the Bloc Québécois issued a news release demanding the elimination of tax havens. My colleague talked briefly about tax havens earlier. It would have been nice to see some steps taken against these tax havens, which are causing Canada to lose billions of dollars.

Given that some companies are taking advantage of interest deductibility to deduct interest charges in a number of jurisdictions, which is a form of tax evasion, and given that the Bloc Québécois is strongly opposed to tax evasion and the use of tax havens, we cannot support this motion. We will vote against the Liberal Party's motion.

Let us not forget that the bill concerning interest deductibility will be studied in committee, and that the Standing Committee on Finance will have an opportunity to submit its recommendations. Everyone will have the opportunity to suggest solutions to this problem during committee meetings.

The Bloc Québécois is very concerned about the increase in tax evasion in Canada. Canadian investments in tax havens between 1990 and 2003 soared, reached unprecedented levels, increased considerably. Canadian corporations invested large and growing amounts in countries recognized as offshore financial centres, particularly in the Caribbean. Assets held by the financial sector have practically increased tenfold, rising from $8 billion in 1990 to $72 billion in 2003. Barbados, where Canadian corporations operate 1,700 subsidiaries, is ranked the third most popular destination for Canadian capital abroad, after the United States and Great Britain.

Bill C-52 which is presently being studied by the House, amends the tax treatment of income trusts in order to eliminate the advantage of this entity over a corporation.

The Bloc Québécois has been giving thought to the issue of income trusts for a few years. We do not want income trusts to be abolished. One solution might be to introduce a minimum tax on income trust profits rather than preventing corporations from establishing themselves as income trusts.

With this bill, the government will impose a 21% tax for 2007 and will add 13% in subsequent years.

In closing, we will vote against the Liberal Party motion.

[Corporal Benoît Chevalier, May 8th, 2007]

Mr. Speaker, last Sunday, Corporal Benoît Chevalier died in a plane crash in the Sinai Desert in Egypt. He was part of a contingent of 28 Canadian soldiers on a peacekeeping mission. The 25-year-old from Macamic, in the Abitibi region, had been a radar controller with 3 Wing Bagotville since July 2003. Colonel Pierre Ruel of 3 Wing Bagotville said that the young man was a radar controller without equal and was involved in the military community and social life of Bagotville. In addition to tributes from the commanding officer, Corporal Chevalier received a number of others from his friends and family, who remembered him as a likeable, dynamic person who was always up for an adventure.

The Bloc Québécois would like to extend its sincere condolences to the family, colleagues and friends of Corporal Benoît Chevalier at this very difficult time.

[Yvon Lessard, May 4th, 2007]

Mr. Speaker, Yvon Lessard, of Service Électronique Professionnel in Chicoutimi has discovered a method for measuring ice on Hydro-Québec's power lines and minimizing the effects of frost on towers by working with Équipe Fabconcept in Chicoutimi.

Hydro-Québec hired Mr. Lessard for his electrical genius in order to develop a measuring device that could indicate the weight of power lines in real time when ice accumulates. Measurements can even be taken in the most difficult to access areas in the province.

With the information provided by the electronic reading equipment, Hydro-Québec will be able to activate the heating wires remotely, which will melt the ice and prevent the towers from collapsing.

I would like to congratulate Yvon Lessard for his work with Équipe Fabconcept, which enabled him to innovate and to give a positive boost to the Saguenay—Lac-Saint-Jean area.

[Income Tax Act, May 2nd, 2007]

Mr. Speaker, I would like to thank all the members who spoke in this debate today, as well as the members who spoke in the first debate. Bill C-207 is designed to fight two problems that affect the regions: the exodus of young people and the shortage of skilled labour in the regions.

In the next few minutes, I would like to respond to certain concerns my colleagues have about Bill C-207. According to Mr. Clément Desbiens, an economist with Emploi-Québec, all employment sectors in the regions will be more affected in the coming years. A document entitled Perspectives professionnelles 2005-2009 states that the demand for workers in fields related to retirement will increase. However, according to the study, workers in the regions are likely to leave for urban centres where there are more jobs in sectors such as retail sales, services, administration and finance.

According to Emploi-Québec's estimates, 250,000 jobs will be created during that period. Emploi-Québec anticipates that, for the Saguenay—Lac-Saint-Jean region alone, 18,000 new jobs will have to be filled. According to the economist, the aging of the population will be felt across the country, but its impact will be even more disastrous in the regions. The country's population growth tells the tale. Between 1996 and 2006, that is over a period of 10 years, Canada's population increased by 9.4%, while the population decreased by 8.5% in Newfoundland and Labrador, by 2.2% in Saskatchewan, and by 1.1% in New Brunswick. During that same period, the population increased by 20.9% in Alberta, by 12.7% in Ontario, and by 10.2% in British Columbia.

I would also like to provide other statistics affecting my region. Over a period of 10 years, from 1991 to 2001, the population of the Lower St. Lawrence region decreased by 2.9%. During that same period, the population of the Saguenay—Lac-Saint-Jean region decreased by 2.9%, and I could provide more examples. I now come to the most affected region, that of Gaspé and the Magdalen Islands, where the population decreased by 7.7% over the same period.

This is why we support this bill which addresses all the problems. It is a tool that our regions and regional businesses can use to have access to skilled labour.

The bill provides for a tax credit not exceeding $8,000 over a 52 week period. Some have suggested that it would be better if the maximum of $8,000 could be used over three years instead of one. This is, of course, something we could discuss at committee, and we are open to such a suggestion. I therefore ask all the members of this House to act on behalf of our regions and our young people.

The Conservative members opposite who spoke in the first debate, and in this one, said that the total cost would be $600 million a year. I say that they are trying to scare the public and the members of this House. For Quebec, it would come up to $30 million. So, we are talking about approximately $150 million. I will close by encouraging all members to support this bill, to really help our young people and those regions with a declining population.

[Business of Supply, April 26th, 2007]

Mr. Speaker, I am pleased to take part in the debate on the NDP motion about military operations in Afghanistan.

As I said last week, I want to commend the people in my riding, Chicoutimi—Le Fjord, and the Canadian Forces personnel from 3 Wing Bagotville who are serving in Afghanistan. I salute their bravery and their generosity.

The NDP motion has some similarities to the Liberal motion we debated last week. The difference is this: the NDP take the position that Canada should put an end to this mission immediately, whereas the Bloc, like the Liberal Party, believes that we should tell the international community that the mission will end in February 2009.

It is true that, whatever disagreements the members of this House may have about the mission in Afghanistan, we still have full confidence in the men and women on the ground.

Even though we supported the Liberal motion, we propose a rebalancing of the operations in Afghanistan, particularly in regard to Canada's strategy for supporting peace in Afghanistan and the mandate and methods of the Canadian Forces.

The House of Commons has made a commitment until 2009, and it must honour that commitment. To my NDP colleagues, I say that it would be irresponsible for the members of this House to support this motion.

Just imagine what would happen if the Government of Canada adopted such a motion. Imagine how the members of the coalition, NATO and the International Security Assistance Force would react. We would be sending the message that we are giving up, and that could tarnish Quebec's and Canada's international reputation.

It is crucial, however, that we inform our allies that the Canadian Forces will no longer have a mandate in Afghanistan in February 2009.

The Bloc Québécois has always supported sending troops to Afghanistan as part of a NATO mission. Unfortunately, that mission has become a war operation. The framework of the operation has changed, but Parliament has made a commitment until February 2009, and we must honour that commitment.

The Bloc Québécois deplores the fact that this motion suggests that we withdraw. Once again, we will vote against the NDP motion.

[Highway Infrastructure, April 24th, 2007]

Mr. Speaker, reconstruction of highway 175 in the Parc des Laurentides has begun. The official in the Minister of Transport's office who is responsible for the construction has stated that the necessary funds are in place. No one in our region has any doubts about the reconstruction.

Why then, all of a sudden, in the middle of construction, is the Minister of the Economic Development Agency of Canada for the Regions of Quebec throwing into question the funding for this project? Does his government intend to backpedal and stop the project?

[Business of Supply, April 19th, 2007]

Mr. Speaker, I thank the member for his question.

I believe that we must recognize that the Prime Minister of the minority Conservative government is an acknowledged friend of the American president. In my opinion, the Prime Minister should take the lead and convince Mr. Bush to change this mission—a mission of war—and give it balance. As I mentioned earlier, there is a real disparity in spending: for every $6 allocated to war, only $1 goes to reconstruction.

The Prime Minister of the minority Conservative government has an important role to play and must demonstrate leadership in this matter. I also believe that it is the responsibility of the Prime Minister to notify NATO countries that, if things continue in this way, we will withdraw after February 2009.

If we truly wish to win this mission, if we want it to succeed, we must rebalance it and focus on reconstruction and on the social development of the Afghan people.

[Business of Supply, April 19th, 2007]

Mr. Speaker, I thank the member for his question.

We must win the hearts and minds of the Afghan people. At present, poppy crops are their source of income. If we hound them or cut off their source of income by eliminating their crops, we will end up with Afghans who will go over to the Taliban. We must work on providing concrete solutions such as support for reconstruction and humanitarian assistance for Afghans.