Madam Speaker, I rise today to speak to Bill C-210, a private member's bill that proposes changes to the Income Tax Act that would allow individuals to claim a tax credit for fees paid for their participation or the participation of a dependant in amateur sports.
At first blush it is hard to disagree with the intent or the objectives of the bill. Any time we can get more people involved in amateur sports it is good for society. It goes into the health envelope: it increases participation and it decreases health expenses, as the learned member has indicated.
However it is my view that we need to review this proposal in light of what it tries to achieve and how it tries to achieve it.
First, it would appear that the hon. member's proposal has a clear and honourable intent: to encourage Canadians to participate in amateur sports. The government shares that goal with the member for Sackville—Musquodoboit Valley—Eastern Shore. We too recognize the importance of amateur sports and the importance of participation in sports and physical fitness activities.
Each year we contribute $77 million to Sport Canada. Let me tell members of the House some of the great things that Sport Canada does. It provides funds to amateur sports organizations to increase sports participation, support the development of young athletes and improve access to sport by underrepresented groups. It provides financial support to Canada's elite athletes to help them with their training and competition needs. It backs a wide range of sporting events held in Canada, both at the national and international levels.
We strengthened our commitment to sport and fitness in the most recent budget. We are now providing a further $70 million over five years for amateur sports. That includes $45 million to increase Canadians' participation in sports and other fitness activities and $25 million to support high performance athletes.
While we may share the member's objectives, we do not agree with the approach. The member's proposal suggests changing the tax system. I would contend that using the tax system for this is neither cost effective nor is it fair.
At this point let us take a closer look at how ineffective the hon. member's proposal would be.
The government is committed to encouraging Canadians to include physical activity in their daily lives and to help them reduce the barriers that prevent them from being active.
There are many such barriers. Statistics Canada reports several reasons that Canadians do not participate in physical activity. We all personally know many of these reasons: lack of time, lack of interest and health, injury or age concerns.
In fact, we have to look down the list somewhat to the barriers to participation before we get to the cost. I am not for a minute downplaying the cost because cost is a very real factor, especially when we are speaking about children from low income families, but many activities that are part of a healthy lifestyle cost very little. Swimming, walking and cycling are very good examples.
It is my view that the hon. member's proposal would do very little to encourage inactive Canadians to become active in amateur sports or increase their level of physical activity. In other words, this proposal would be ineffective. Even though this proposal would be ineffective, it is important to note that it would come at a very high cost.
According to Statistics Canada, the average Canadian household spends approximately $275 per year on recreational facilities and membership fees. Providing a 16% tax credit on these expenditures would cost the federal government almost half a billion dollars in lost tax revenue. And this money would be spent without having a significant impact on the level of physical activity of all Canadians.
In fact, almost all this tax money would end up, I submit, subsidizing the 8.3 million Canadian adults already participating in amateur sport. I believe the intent of the learned member's bill is to encourage people to get off the couch and into the gym, not to subsidize the people who are already participating in amateur sport.
Therefore, at a great cost, the hon. member's proposal would produce very little benefit in terms of increasing participation in amateur sport and fitness activities.
I certainly would look at other areas, certainly the subsidizing of children from low income families. I have seen it in my own community with soccer, baseball, and especially hockey. I think hockey is the worst example. Kids in low income families just cannot afford to participate in these sports. The sport has moved beyond them with these elite teams; it has moved beyond the original intent and certainly there is ample room for governments to move in that area, but again, this is not the answer.
As a general rule, under the current tax system tax deductions or credits are generally provided for one of two things. They either apply to expenses to earn income, things like employment insurance premiums, union dues and child care expenses, with which we are all familiar, or they apply to non-discretionary expenses that significantly reduce a taxpayer's ability to pay tax, such as above average medical expenses. Tax relief is not normally provided with respect to specific personal expenses that are incurred at an individual's discretion.
What message would the federal government be sending if, as the hon. member proposes, we did use the tax system to subsidize those consumers who choose to pay fees to participate in amateur sport? That such fees are more important than other personal expenditures, like sending a child to a theatre or to singing lessons? These are examples.
We would be asking those Canadians who choose not to pay such fees to subsidize those Canadians who do. We would be asking Canadians who choose to take part in physical activities such as jogging or cycling, which generally do not require a payment of fees, or who choose to spend their spare time in other non-sport related hobbies or activities, to subsidize those Canadians who choose to participate in sports that do require a payment of fees, such as golf and downhill skiing.
Let us talk about golf. Golf is the most popular participation sport for Canadians. More than 1.8 million Canadians regularly head to the links for some exercise and friendly competition. Under the hon. member's proposal, we would be asking Canadians to subsidize initiation fees, membership fees and greens fees. A lot of these courses are exclusive courses and the fees range up to $10,000 a year. I do not think the Canadian taxpayer would be that enthusiastic if we, the government, allowed a tax credit for those types of fees.
I want to make this clear: The government considers physical activity and sport to be very important to Canadian society. They, as the learned member has already adequately explained, have a very positive effect on individuals and communities. However, there are other personal activities that also lead to the personal betterment of individuals and to the development of healthy, cohesive communities. In engaging in these personal activities, Canadians also face substantial costs.
Let me provide two examples to illustrate that it would not be fair to Canadian consumers to subsidize amateur sport fees. A typical parent with a young daughter wants to encourage that child to be physically active by registering her in a local hockey league. That parent at the same time may also choose to register the same daughter in singing lessons because the child enjoys singing and appears to be talented. Both decisions would support the development of that child and with both decisions the parent would incur costs, but it would not be fair to subsidize one and not the other.
For these reasons and for the reasons I have already alluded to, I hope that the hon. members present would agree that this private member's bill does not fulfill the criteria of effectiveness and fairness, and I would ask all members to think very carefully before supporting the bill.