Mr. Speaker, it is my pleasure to rise today to speak briefly on what Bill C-47 means to most Canadians.
In general, this budget means very little to ordinary Canadians. It has little positive impact on them. Instead, it provides a road map for the large corporations to use in reaping greater profits and for the average working Canadian to lose faith in their government. What this budget bill does not do is provide any relief for the unemployed or any hope to those who are in imminent danger of losing their employment.
Let us look at the record of the finance minister. He has wasted away a $13 billion surplus that was left to him as a legacy to protect for the Canadian people. This was left to him by the prudent and excellent fiscal managers, the previous Liberal governments, under the leadership of Prime Minister Chrétien and Prime Minister Martin. What did the minister do? In good economic times, he wasted away the surplus and has now turned the $13 billion surplus into a $53 billion deficit. This is in good economic times, and he wishes Canadians to believe that he can manage their money in bad economic times.
Canadians need to be told how the finance minister intends to add further to this deficit by borrowing more money to pay for unneeded tax cuts for big businesses to the tune of approximately $6 billion, another $16 billion on new fighter jets, and untold billions wasted through mismanagement of the economic stimulus package. Why is it that the Conservatives preach fiscal responsibility but practice the complete opposite? The minister is the brains behind the biggest-spending government in the nation's history.
The current finance minister has a history in Ontario of destroying finances. He did it in Ontario by borrowing money to give tax breaks. He cut hospital funding, which led to the closure of 26 hospitals and layoffs for some 16,000 nurses. He left Ontario in a huge deficit, which Ontario is still reeling from. In many economic and financial circles, the finance minister has been labelled the architect of deficit .
The Conservatives and the finance minister take credit for Canada's being able to do better than others during the economic crisis. But let us look at the facts. Canada was able to buffer the economic crisis because the Liberals did not allow bank mergers and put in strict financial controls, so that we would not have a sub-prime mortgage scenario. Prime Minister Jean Chrétien and Prime Minister Paul Martin also ensured that the CPP was funded for 75 years.
What did the current finance minister do? Remember the introduction of a 40-year mortgage with no down payment? It smells like a sub-prime mortgage. Remember trying to create or dip into the CPP to pay for boutique tax cuts? Is that really economic sense?
The opposition stopped him. Instead of taking credit for fiscal management, it is high time that the Conservatives took a hard look in the mirror and realized that they have been the biggest spenders since Confederation, turning a $13 billion surplus into a $54 billion deficit, and overspending by $70 billion. And for what? They have nothing to show for it except a huge, growing deficit. And to compound their economic incompetence, guess what else has been done?
The Conservatives have the temerity to give, through EDC, a loan to a foreign company to the tune of $1 billion. This foreign company is Vale, a Brazilian company. For those who do not know it, it was Vale Inco that created a hostile environment for workers at the Sudbury mine and then shut them out for a year.
Is this how Canadian taxpayers are treated by the government? Their hard-earned money is being given away to foreign corporations that have no intention of fulfilling their obligations to give work to Canadians, and to boot, the Canadian workers have to foot the bill. How do they foot the bill for this economic incompetence?
Canadian workers will have to fork out higher EI premiums. The effect of this tax on small and medium-sized enterprises and hard-working Canadians will be to the tune of $13 billion.
This pattern of Conservatives taxing the middle and lower income people and giving breaks to their friends in large corporations, both domestic and foreign, is a very similar pattern that we have seen recently.
The government is spending $16 billion on untendered contracts for jets, which will not create any jobs for Canada or benefit any regions and which even the Pentagon thinks is a wrong choice. Members should think this through: $16 billion has nine zeroes after 16. What could be done with this money if invested in a Canadian company, in Canada, or if a Canadian company could bid? The multiplier effects are tremendous. There would be millions of good-paying professional jobs.
It is simply unfortunate that, every day, working Canadians will be paying more as they worry about keeping a roof over their heads and food on the table. These decent Canadians will have to pay through their noses while the corporate friends of the Conservative government get to boast to their international colleagues about paying the lowest rates of tax in the industrialized world. I need to emphasize that the large corporations do not create jobs. In fact, they drain jobs away. It is the small and medium-sized enterprises that need the benefit.
How does the government then have the temerity to show such utter contempt for the vast majority of working Canadians while giving money to those who least need it?
In the past, some governments have talked of a trickle-down theory in which the wealth of the rich would somehow trickle down to those with much less. The Conservative government seems to favour the flooding-up theory, in which they take desperately needed funds from the average worker and small businesses and just dump it on those who will use it to buy toys, a second Mercedes, et cetera. Canadians want and deserve better.
I would like to give a few examples of the government's economic mismanagement. Let us look at the stimulus package.
The government's stimulus plan created photo opportunities for ministers and Conservative backbenchers to pose with oversized cheques with Conservative Party logos on them. The real truth is that it has yet to be revealed where these billions of dollars have been spent.
We have found some examples. In Kitimat, B.C., $2,316 was used to purchase a portable dance floor. In Bridgewater, Nova Scotia, a group received $404,416 to build a floating gazebo. In Maniwaki, Quebec, the owners of Auberge du draveur received a $212,500 federal grant to install a glass dome over their terrace pool.
We now know that rather than wanting results that would benefit unemployed Canadians and those in danger of losing their jobs, the government's priority was to situate signs on every piece of wall and fence and it demanded that 8,500 public workers would go and do that job for it.
If the Prime Minister and his colleagues were a little more interested in running the government for the benefit of all Canadians rather than changing government websites to Tory blue colour schemes, I might be a little less critical. Unfortunately, there is little good I can say about the budget and the government, except to say it has finally done something that I thought almost impossible. It makes Brian Mulroney look good.
Aside from a feel good campaign in the stimulus area, what jobs have actually been created?
The minister responsible for infrastructure and his officials are still unable to show how many jobs have really been created or have been saved by these stimulus funds. In fact, they have made a conscious effort or decision not to track these numbers. The Parliamentary Budget Officer has complained that the government is frustrating his efforts in getting the real numbers and what exactly this expenditure created.
Let us look at some of the areas where I think there is incomprehensible economic thinking.
One wonders why the government, between 2009 and 2014, is planning to borrow about $156 billion which would then cost the taxpayer $10 billion in interest payments each and every year for decades to come. Borrow $156 billion and add another $10 billion every year. Does that make economic sense, especially when the government is trying to state that it wants to create a recovery? There is no recovery when the government keeps digging the hole deeper and deeper.
To boot, the government is going to spend $13 billion on constructing jails for unreported crime. One wonders what the purpose is. We need to get to the bottom of economic thinking.
When it comes to giving prisoners an opportunity to work, the government says no and gives us no rationale for killing the prison farm system. The farm system has been proven to be beneficial not only to the prisoners, but to the system itself by providing low-cost food. It also provides many prisoners the first responsible job that they have had in their lives.
The government would rather have prisoners locked in their cells wasting away than learn a viable work ethic. The government will feign surprise when the recidivism rate climbs up to the 70% figure of our neighbours to the south.
What could have been done with the money? What are the alternatives? We can talk about the mismanagement, the bad spending, et cetera, but what is the issue here? The issue is Canadians who are dying to get a job, Canadians who are struggling to pay their mortgages, Canadians who are struggling to put food on the table.
What could the government do? It could do a lot of things. For example, the $1.2 billion that it wasted on a 72-hour photo op could have been utilized to give relief to caregivers. There are many caregivers in Canada. There are approximately three million caregivers who look after their elderly parents or their sick children. It is important for this sandwich generation to be given some relief.
There are so many other areas in which the government could have worked to help Canadians. Instead, it reduces the corporate tax, thereby reducing its revenue by $6 billion, which it could ill afford, and for corporations that really do not create jobs. Small and medium-sized enterprises create one job in eight.
What could the government have done? What can the government do with the $13 billion that it is planning to spend on building prisons for unreported crime?
We could use that money to address the deterrents of crime. We could use the money to alleviate poverty and illiteracy. There could be money for mental health and affordable housing. There are so many things the government can do that are positive for Canadians in general. It is important that the government listen.
As I review this I just cannot believe that the government keeps on increasing taxes. It created a payroll tax and it will increase the EI premiums in 2011 for both employees and employers. This will have a negative impact.
A lot of small and medium-sized enterprises are run by women. Women, who form 50% of the population, will get a double whammy. They are there as sole proprietors and they will have to fork out more in EI premiums. They work individually or as a collective and they employ people. The problem they are facing is that they do not only look after the economics of their business, but they also look after the family. Sometimes they have to bear the burden of caregiving.
With this double whammy, I would ask the government, why does it not change its thinking and not focus on ideology but on investing in Canadians? It is important to invest in Canadians.
In conclusion, if the Finance Minister and the Prime Minister stay the course they are following, they will not have any economic recovery. They will crash and the economy will go into a tailspin. There are issues around the environment and issues around programs, and it is important that these be fixed.
The budget reinforces my belief that the Conservatives are not here for the average Canadian, and unless they change their minds, they are only here for their friends in big business.