Ted Menzies

[Harmonized Sales Tax, September 17th, 2009]

Mr. Speaker, as was mentioned in the House yesterday, it is rather ironic that the NDP is talking about taxes. When we decided to reduce the GST from 7% to 6%, the NDP voted against it. When we reduced the GST from 6% to 5%, the NDP voted against that. Every tax cut that this government has proposed, the NDP has opposed.

The harmonized sales tax in British Columbia would be even higher if the NDP had its way.

[Employment Insurance, September 17th, 2009]

Mr. Speaker, as I mentioned in my previous answer, there was trouble when we got here and saw where the EI fund was at. We have put in place an arm's-length board so a repeat performance of what the Liberals tricked Canadians with cannot happen again.

That board will make the decisions on what the EI premiums will be. We will leave that up to the board. Unlike the Liberals, we do not like to tinker with things like that. We think an impartial board is the right one to make that decision.

[Employment Insurance, September 17th, 2009]

Mr. Speaker, the simple answer to that is no.

Let me remind Canadians what happened to the notional surplus that was in the EI fund years ago. It is gone. Those people who paid into it never got it back. We provided an arm's-length board to manage that, so this can never happen again.

[Norman Borlaug, September 16th, 2009]

Mr. Speaker, I wish to recognize the contribution of a great man with whom I worked during my time at the Canadian International Development Agency.

Dr. Norman Borlaug spent his lifetime working to improve the conditions of those less fortunate. His Nobel Prize winning high-yielding wheat research led to the green revolution, which has saved over one billion lives. He continued his research into a rust-resistant wheat variety for Africa well into his nineties.

Canadians can be proud of our record of taking a principled stand when it comes to international development and feeding the world's hungry.

Today Canada is the fourth largest contributor to the World Food Programme. Last year alone we helped feed an estimated 102 million people in over 75 countries.

This week the world lost a tremendous humanitarian in Dr. Norman Borlaug. Our thoughts are with his family.

[Main Estimates, 2009-10, June 19th, 2009]

Mr. Speaker, I listened with great interest to the speech by the member for Markham—Unionville. It is always fascinating to hear the member quoting himself, and I will come back to that at the end of my question. I would remind the hon. member that in quoting oneself, one needs to be a little cautious about having one's quotes maybe read back to him. We will see where that goes in a moment.

However, the member mentioned that the Liberals had put in place a contingency reserve. We have heard all kinds of numbers of what that was.

Could the hon. member for Markham—Unionville, who seems to know so much about a contingency reserve, please tell me exactly in which legislation that was put? I have been searching high and low and I cannot find it.

However, before he answers that question, let me read a quote, “The Conservative government is overstating the risks because many experts expect the Canadian economy to grow by up to 2.5 per cent this year”. That quote was on January 1, 2008. The hon. member told us how he had predicted two years ago that the entire world would into a recession. Could the hon. member please tell me who made that statement publicly?

[Business of Supply, June 19th, 2009]

Mr. Speaker, I can answer that with a simple example. If I decide to hire a contractor to re-roof my house, it would not be smart of me to give that roofing contractor the money first in the hope that he will actually do the job and do it properly, and provide me with some sort of guarantee. That is the preface of the way the money is being handled. As projects get underway, as the money gets spent at other levels, we will pay the bills.

[Business of Supply, June 19th, 2009]

Mr. Speaker, I would encourage that hon. member to ask the member for Markham—Unionville that question once again and maybe he would answer it this time.

I would not prejudge what the outcome of this is going to be. We on this side of the House actually make decisions based on what is good for Canada. We listen to Canadians. We listen to all sides of the debate in the House. We do not prejudge the outcome.

We preface our decisions on what is best for Canadians. We make sure that we read every document that is available to us, unlike the NDP. We make our decisions on what is best for Canada.

[Business of Supply, June 19th, 2009]

Mr. Speaker, shortly, we will return to our ridings, back to the people who elected us, those we have the privilege to represent.

While at times other issues may have temporarily diverted Parliament's attention over the past six months, one issue has dominated everything, and that is the economy. We are in the midst of the most severe and widespread global recession in recent memory, a recession that all economists admit had no origins in Canada. As RBC Global Asset Management economist Patricia Croft observed, “This is not a made in Canada recession; this started outside of our borders”.

Regardless, this global recession has and will continue to impact Canadians, an impact that has been as brutal as it has been swift. In mere months unemployment has jumped to its highest rate in over a decade. Hundreds of thousands of Canadians have lost their jobs so far this year. Behind each one of those job losses is a family facing harsh realities, sleepless nights and uncomfortable conversations around the kitchen table, conversations about paying the mortgage or the rent and perhaps even groceries. As TD chief economist Don Drummond bluntly declared, “This year will go down in the history books as one of the most difficult economic years for Canadians”.

Our Conservative government has and will continue to recognize the economic challenges that we face. That is why we have tirelessly and aggressively worked to protect our economy. That is why we continue to work with our global partners on a global solution to a global recession. That is why we conducted the most comprehensive and open prebudget consultation process in Canadian history. That is why we tabled the earliest federal budget in history on January 27. That is why we made the difficult but necessary decision to run a short-term deficit.

What we presented was more than a budget. It was an ambitious, 300-plus page economic action plan, a plan focused on providing timely, targeted and temporary stimulus to save and protect jobs today; all this while growing the Canadian economy for tomorrow. It is a plan that the IMF heralded as “large, timely and well-targeted fiscal stimulus, appropriately sized well above the fund's benchmark of 2% of GDP”.

Indeed, our economic action plan received broad endorsement from provincial premiers, municipal leaders, business leaders, economists, public interest groups, and most important, this Parliament.

What is more, since its January introduction, we have succeeded in helping Canadians by aggressively implementing our plan, first of all, by reducing taxes permanently, helping the unemployed through new training programs and an extended five weeks of EI, avoiding layoffs by enhancing the EI work sharing program, maintaining and creating jobs through massive infrastructure spending, improving infrastructure at colleges and universities, supporting research and technology, supporting industries and communities most affected by the global recession, improving access to and the affordability of financing for Canadian households and businesses. Most important of all, we have succeeded in doing all of this on a timely basis.

Indeed, 80% of this fiscal year's economic action plan's initiatives are already being implemented. What does this mean for Canadians? It means in every region of Canada families and businesses are paying less tax. It means unemployed workers are receiving enhanced benefits as well as training. It means major job-creating projects are breaking ground. It means more Canadians are keeping more of their money in their own pockets where it belongs.

Because of our tax cuts, such as raising the basic personal exemption and the ceiling on the lower and middle income tax brackets, little wonder on June 6 of this year Canadians celebrated tax freedom day three days earlier than last year and 19 days earlier than under the former Liberal government. It means more than 3,500 businesses across Canada have entered into an expanded EI work sharing program helping almost 130,000 employees, employees like the nearly 100 workers at the Michelin Canada plant in Waterville, Nova Scotia, where the plant has continued to operate under an EI work sharing program.

Our plan includes much more and we want Canadians to learn more about it. That is why we created a website, www.actionplan.gc.ca, that clearly lays out our plan's benefits for individuals, businesses and communities. What is more, that website is also part of our Conservative government's effort to show transparency and accountability with respect to our plan by allowing Canadians to track investments that we have made.

We have also shown accountability to Canadians through formal budget progress reports tabled in Parliament. The most recent program report was released in June and another will be released in September. I would remind this House that we explicitly made that commitment in January's budget document on page 72, where we pledged to “provide an update to Parliament the first week following the summer recess”.

Our recent progress report illustrates our government's aggressive implementation of our plan. Increasingly, we are also seeing glimmers of recovery in the global and Canadian economies. For example, this week the Canadian Real Estate Association reported that national resale housing market activity has returned to pre-recession levels, stating, “Strengthening consumer confidence, low interest rates and improved affordability are drawing buyers to the housing market across Canada”.

Listen to what some prominent economists are saying. Scotiabank economist Aron Gampel said, “We are in the process of turning the corner. Bonds, stocks, every market is telling you we are at this transition from recession to recovery”. BMO economist Doug Porter said, “It is more and more likely that the recession could be declared over by some point in the summer”.

While this will likely still be a very difficult year, with continued lagging job losses, such optimism is welcomed. What is not welcomed is the excessive talking down of Canada's economy by the Liberals.

Despite the challenges we are facing in our economy and the business people, entrepreneurs and workers who fuel it, Canada is still among the strongest in the world and will remain so with the help of our economic action plan and the continued strong efforts of the individual Canadians on whom this government relies to work hard, remain focused and be innovative.

Instead of talking down Canada's economy and ignoring the facts, Liberals should acknowledge that both the IMF and the OECD project that Canada will, first of all, experience the smallest contraction in the G7 for 2009, and have the strongest recovery in the G7 in 2010.

Liberals should also pay attention and listen to their former deputy prime minister, John Manley, who said:

Everybody looks on us with envy in terms of our economy, our banking system, our stability.... Our debt to GDP ratio is the envy of the rest of the G7...

American President Barack Obama said:

...in the midst of this enormous economic crisis, I think Canada has shown itself to be a pretty good manager of the financial system...

The American magazine Newsweek said:

Guess which country, alone in the industrialized world, has not faced a single bank failure, calls for bailouts or government intervention in the financial or mortgage sectors. Yup, it's Canada.

Bob Zoellick of the World Bank said, “I think a lot of people would like to change places with Canada”.

Liberals should show some confidence, confidence in Canadians that we have beaten and are able to beat today's challenges and be stronger, more united and more prosperous for it in the end. As we celebrate this upcoming Canada Day, Liberals should keep in perspective and stop talking down our economy, because Canada is still the greatest place to do business and the greatest place to live.

[Income Tax Act, June 18th, 2009]

Madam Speaker, I am pleased to have the opportunity to respond to Bill C-290, the proposal for a refundable tax credit related to pension income.

This extremely flawed proposal raises a number of concerns, primarily the one that was referred to earlier. This proposal would easily cost $10 billion, which is a very substantial sum, especially considering the significant pressure on fiscal resources at the present time.

I would refer back to a question by my colleague from Mississauga—Erindale. He asked the honourable sponsor of this bill, the member for Richmond—Arthabaska, if he had put in a request to the Parliamentary Budget Officer to have a costing done on this proposal. The hon. member was unable to or did not provide an answer as to whether he had or had not.

As we know, part of the mandate of the Parliamentary Budget Officer is to cost out private members' bills, proposals that private members bring forward, to see whether they require a royal recommendation, which I would suggest this one does, but also to tell the House whether this is a reasonable request. The number we have now is $10 billion. We did not receive an answer and I would encourage the hon. member to proceed with that process.

He suggested that $10 billion was too large an amount. The critic for the Liberal Party, the member for Markham—Unionville, also suggested it was too large an amount. However, they did not back that up with anything, other than saying that number was wrong. There are facts available. The Parliamentary Budget Officer could provide those facts and I would encourage the hon. member to do it. If he thinks the number is not accurate, then he should ask the Parliamentary Budget Officer to provide us with the realistic number.

Not only that, the bill would reduce the employer incentive to properly fund and manage its pension plans to control financial risks. Overwhelmingly, the benefit of a small group of taxpayers would benefit, while the costs would be borne by all taxpayers. This ignores the strengths of our present retirement income system.

It also fails to take into account our government's action to improve the retirement savings system for Canadians.

First, this proposal would entail substantial costs, as I say, a projected $10 billion. Not only would it provide a refundable tax credit for pension income shortfalls, but it suggests that it would in fact effectively provide a refundable credit on the full amount of pension benefits received by most retirees. This is because, as drafted, the proposed credit would be based on the difference between the pension benefits payable to an individual from a registered pension plan and the amount of benefits received by the individual from a retirement pension compensation arrangement. As a result, the proposed credit would cost about, as I say, $10 billion annually. Clearly, such a costly measure would be untenable.

Second, by providing a partial government-backed guarantee for pension benefits, we would be creating a disincentive for employers to properly fund and manage their pension plans to control financial risks.

Third, such a guarantee would raise issues of fairness because the costs would be borne by all taxpayers, while benefiting a minority of those participating in pension plans. For example, RRSP savers or those in defined contribution pension plans who do not achieve the pension income they expect because of poor investments could demand similar compensation.

[Business of Supply, June 15th, 2009]

Mr. Speaker, in response to the previous questioner from the NDP, it is all about protecting Canadians' investments. That is a critical part that government can play. If we leave investments unprotected, shame on us.

There is an opportunity here to protect Canadians but there is also an opportunity to encourage investment in this country. We have heard loud and clear that there are opportunities for investment in many industries so they can expand. Just like we want to we Canadian companies invest outside of Canada, we need to have an environment that protects foreign investments in this country. That is critical.

I am very troubled by some of the positions. I will quote the finance minister from a previous meeting we had with the NDP. “We see that the NDP has this issue well surrounded” would be the way the finance minister referred to it, completely surrounded. In fact, its leader is in support of a Canadian securities regulator, the former NDP finance critic is on record supporting it and now the member for Outremont, the present finance critic for the NDP, is completely opposed to it, not only in the NDP but in the Liberal Party.

The member for Pickering—Scarborough East stood moments ago and said that he would be supporting it. The member for Scarborough—Guildwood is on record as supporting it. The member for Markham—Unionville is on record as supporting it but then he surrounded the issue completely again and is now going abstain, I guess.

What is more interesting is a quote by the former prime minister, Paul Martin, who the member has replaced. Paul Martin said, “The status quo will not work and it must change. Otherwise issuers and investors will take their money elsewhere.”

Could I ask the hon. member how she will be voting on this issue?