39th PARLIAMENT, 2nd SESSION
EDITED HANSARD • NUMBER 104
CONTENTS
Tuesday, June 3, 2008
Budget Implementation Act,
2008
Mr. Ed Komarnicki (Parliamentary Secretary
to the Minister of Citizenship and Immigration, CPC):
Mr. Speaker, it is an honour and a privilege to present Bill
C-50 at third reading, a bill that proposes to implement certain
measures from budget 2008.
This year's budget further illustrates the responsible leadership
of this government. This is a budget for uncertain times when
a strong and steady hand and focused leadership is needed.
Building on the government's 2007 economic statement, budget
2008 is balanced, focused and prudent in order to ensure that
Canada remains strong and secure amid global economic uncertainty.
To that end, budget 2008 continues reducing debt and taxes,
focusing government spending, and providing additional support
for sectors of the economy that are struggling in this period
of uncertainty.
Today I would like to touch upon some of the key measures in
the budget that are included in Bill C-50, including as it relates
to citizenship and immigration and specifically as it impacts
on my constituency of Souris—Moose Mountain. In doing
so, I will demonstrate how the government is providing strong
and responsible leadership.
I will also demonstrate that our priorities accord with those
of Canadians. We are reducing debt, strengthening Canada's tax
advantage, investing in the country's manufacturing heartland
and investing in priorities that matter to Canadians.
By carefully managing spending and continuing to reduce debt,
the government is ensuring that its programs provide value for
money, are sustainable and keep the tax burden to a minimum.
We are also ensuring intergenerational equity. This means that
we should not ask our children and our grandchildren to pay
the freight on the spending excesses of the past, such as by
the previous Liberal government in the March spending madness
that took place where budget surpluses were used for continual
and additional spending.
That is why we are reducing the federal debt by more than $37
billion, including $10.2 billion in 2007-08. As a result of
our aggressive debt reduction plan, by 2009-10 personal income
tax reductions provided under the tax back guarantee will amount
to $2 billion, which will continue to grow into the future.
Our government is also working to create a tax advantage for
Canada. The measures we have introduced since taking office
will provide almost $200 billion in tax relief over 2007-08
and the following five years. That is $200 billion left in the
pockets of Canadians to further increase their business and
their initiatives, which will produce more jobs.
As the Minister of Finance has said, our government is meeting
the challenge of global economic uncertainty with a plan that
is real, a plan that is responsible and a plan that is working.
Budget 2008 builds on past action by proposing what is the most
important, federally driven, personal finance innovation since
the introduction of the registered retirement savings plan,
and that is the tax-free savings account. This flexible, registered,
general purpose account will allow Canadians to watch their
savings, including interest income, dividend payments and capital
gains grow tax free. Yes, tax free.
As a new general purpose savings account, the tax-free savings
account will provide an additional tax efficient savings vehicle
for Canadians that complements existing registered savings plan,
such as the RRSP and the registered education savings plan.
In other words, Canadians will have access to a complete set
of tax efficient savings vehicles to meet their various needs:
for their children's education, for their retirement and for
their own immediate use purposes during life.
An important point to emphasize is that a tax-free savings account
will provide greater savings incentives for low and modest income
individuals. Neither the income earned in a tax-free savings
account nor withdrawals from it will affect eligibility for
federal income tested benefit credits, such as the Canada child
tax benefit, the GST credit, the age credit, the old age security
and the guaranteed income supplement benefits.
In fact, in the first five years it is estimated that over three-quarters
of the benefits of saving in a tax-free savings account will
go to individuals in the two lowest tax brackets.
The government has taken another action to help those who need
it, including Canadian seniors, for example.
Many seniors live on a fixed income. They often
find it difficult to make ends meet. That is why our government
has provided significant tax relief for seniors and pensioners.
This includes a doubling of the pension income amount to $2,000,
with an increase in age credit amounts by $1,000.
The tax relief also includes increasing the age limit for maturing
RPPs and RRSPs and, for the first time ever in Canada, pension
income splitting for seniors and pensioners. For a one-pension
working family of two, the savings will be incredible, into
the thousands.
However, we can and must do more to support our seniors. Budget
2008 therefore proposes to increase the guaranteed income supplement
exemption to $3,500 from the current maximum of $500. This will
benefit seniors with low and modest incomes who choose to continue
working. We must also remember that the interest they earn on
their tax-free savings account will continue to help them. Moreover,
this initiative will help these seniors live their retirement
years with dignity and the respect they deserve.
Our government is also investing in Canada's manufacturing heartland.
It is committed to helping Canadian communities in need. Just
this past February, members will recall, Parliament passed the
government's $1 billion community development trust to support
communities and workers suffering from economic hardship. Among
other things, this funding could support job training to create
opportunities for workers, community transition plans that foster
economic development and create new jobs, and infrastructure
development that stimulates economic diversification.
Budget 2008 also demonstrates responsible leadership by helping
to create the conditions for our businesses and entrepreneurs
to invest and thrive at home and abroad. To that end, budget
2008 takes targeted action to help important Canadian industries.
For example, it proposes to provide $250 million for an automotive
innovation fund. This initiative, being led by the Minister
of Industry, will help Canada's automotive sector adapt to the
challenges of the future and remain a key component of Canada's
economy.
Budget 2008 also proposes to extend temporary accelerated capital
cost allowance treatment for manufacturers and processors for
three years, on a declining basis.
This government continues to invest in the priorities of Canadians,
one of these being a desire to live in a safe and secure community.
This government takes seriously the responsibility of protecting
Canadians. Budget 2008 provides funding to protect Canadian
families and communities, building on the important investments
this government has made in previous budgets.
Bill C-50 proposes to implement a measure from budget 2008 that
will provide funding to provinces and territories to support
them in recruiting 2,500 new front line police officers. The
bill proposes to set aside up to $400 million in 2007-08 to
be paid into a third-party trust for provinces and territories,
allocated proportionately, to meet this objective.
There is little doubt that the environment is another priority
for Canadians. Canadian participation in the earth hour event
in March was strong evidence of that. People, not only across
the country but around the world, turned off their lights to
make a statement about helping find new ways to reduce their
impact on the environment.
One of the budget measures contained in Bill C-50 is a proposal
to set aside $250 million for a full scale commercial demonstration
of carbon capture and storage in the coal-fired electricity
sector and for research projects to accelerate the deployment
of the technology. Carbon capture and storage presents an opportunity
for Canada to develop and benefit from world-leading technology
that can significantly reduce greenhouse gas emissions.
On March 15, the Prime Minister of Canada visited my constituency
of Souris—Moose Mountain to formally announce the budget
provision of $240 million to the province of Saskatchewan for
carbon capture and storage and clean coal technology. The province
of Saskatchewan confirmed plans to use the funds at the Estevan
Boundary Dam, located just south of my home city of Estevan,
Saskatchewan.
This federal funding will help leverage an estimated $1.4 billion
of investment into clean coal technology and carbon capture
and storage. This project will reduce greenhouse gas emissions
by an estimated one million tonnes per year.
I wonder if NDP members realize that by voting
against the passage of Bill C-50 they are voting against this
critical investment that will result in the equivalent of removing
millions of cars from the roads. This project has the potential
to provide a solid base for enhanced oil recovery, more jobs
and significant economic spinoff.
SaskPower is developing what it is calling one of the first
and largest clean coal and carbon capture demonstration projects
in the world. This commercial demonstration of state of the
art carbon capture and storage technology will make Canada a
world leader in clean energy production. Benefits from this
project will extend to enhanced oil recovery initiatives.
At the premiers conference in Prince Albert, the premier of
Alberta stated in the Saturday, May 31 issue of the Leader-Post
that the carbon capture and storage technique is “the
quickest, most rapid way of significantly reducing greenhouse
gas emissions”.
In the same article, Premier Wall said that Saskatchewan already
is a centre of excellence in terms of carbon capture and storage,
with the Petroleum Technology Research Centre in Regina, Saskatchewan,
and its Weyburn-Midale pilot project, the largest carbon dioxide
storage in the world.
Encana's facility located near Weyburn, Saskatchewan is Weyburn's
flagship project, with a seven year record of demonstrating
CO2 storage on a commercial scale. At this time, Encana receives
CO2 from Beulah, North Dakota, using it for enhanced oil recovery,
and is presently touted as the world's largest CO2 sequestration
project and the largest commercial scale carbon dioxide enhanced
oil recovery project in Canada.
The Petroleum Technology Research Centre in Regina is actively
involved in the Weyburn project. The potential for southeast
Saskatchewan is phenomenal. CO2 can be compressed and piped
to storage locations. The geological formation for CO2 storage
exists in southeast Saskatchewan. It is waiting for expanded,
innovative thinking and brave initiatives on the part of all
affected parties.
Budget 2008 provides a capital cost allowance rate for compression
and pumping equipment on CO2 pipelines of 15% and an increase
in the rate from 4% to 8% on CO2 pipelines transporting CO2.
It is this type of initiatives that the NDP would be voting
against.
It sounds exciting. It sounds invigorating. It is the kind of
action and leadership that are required of a government, that
enhance and encourage the enterprise, the initiative and the
ambitions that Canadians possess and that partner with others
like the province of Saskatchewan, SaskPower and industry to
ensure projects such as this can take place.
Kevin Hursh, a consulting agrologist and farmer based in Saskatoon,
Saskatchewan, stated in a National Post article on May 31, 2008:
In a lot of small and large towns, [in Saskatchewan] you can
hardly find a house to buy and if you do, the price has increased
dramatically. Older houses that no one wanted a few years ago
are being gobbled up and renovated. Even houses in old farmyards
are in demand.
He added that there is an optimism in the agriculture and grain
industry sector that has not been seen before. He stated:
People are moving back to Saskatchewan and it isn't only the
cities that are benefiting. Rural Saskatchewan still has problems,
but there has been an amazing reversal of fortunes. Local governments
are scrambling to switch from survival mode to a growth mode.
Our economy and its continued growth will depend on a flexible
and responsive immigration system to ensure we have the skilled
workers and the tradespeople that our country needs. Neither
Canadians nor prospective immigrants benefit from an immigration
system that, due to its dysfunctional nature, forces prospective
immigrants to wait for up to six years before their application
is looked at, let alone processed.
The current system is especially problematic, since in a few
short years all of our net labour growth will come from immigration.
That is why changes to the Immigration and Refugee Protection
Act were included in budget 2008. “Advantage Canada”
in 2006 identified that Canada needs the most flexible workforce
in the world, an issue that is critical to Canada's future.
A new and more efficient processing system is desperately needed,
a system that is responsive both to the needs of newcomers and
the needs of Canada. Canada faces serious international competition
in attracting people with the talents and skills we need to
ensure our country's continued growth and prosperity.
Compared to the United Kingdom, Australia and New Zealand, Canada
is the only country that does not use some kind of occupational
filter to screen, code or prioritize skilled worker applications.
Compared to other countries, Canada's system is just not flexible
enough.
The legislative changes that we propose will prevent
the backlog from growing. With the growth of the backlog halted,
the government also has allocated additional resources to reduce
the backlog. Among other things, our government has committed
over $109 million over five years to bring down the backlog.
Part 6 of Bill C-50, when combined with these non-legislative
measures funded in budget 2008 and beyond, will act to control
and reduce the backlog and speed up processing. The government
will be required to consult with provinces and territories,
industry, and government departments.
These consultations will include getting assurances that if
the regulated professions are prioritized, commitments from
provincial regulatory bodies will be obtained, to ensure that
individuals brought here will be allowed to work in their chosen
fields soon after arrival. The instructions must respect our
commitments to provinces and territories regarding the provincial
nominee program and the Canada-Quebec accord.
These proposed changes are part of a vision that involves creating
a more responsive immigration system, one that allows us to
welcome more immigrants while helping them get the jobs they
need to succeed and build a better life for themselves and their
families. Their success is our success.
Urgent action is required. Part 6 and all of budget 2008 delivers
this much needed action.
The bill we are debating today illustrates just how our government
is prepared to meet the challenge of global economic uncertainty.
We have a realistic plan for Canada, a plan that is working.
There is no way we are going to slide back to the days of high
spending, high debt and higher taxes, as some would have it.
Canadians do not want that and neither does this government.
Rather, as reflected by the measures proposed in Bill C-50,
our plan is taking us down the right road, a road that requires
focus, prudence and discipline, yet at the same time it is a
road that is very refreshing, exciting and invigorating, a road
that will point the way forward for Canadians for years to come.
To all Canadians, it will be like a breath of fresh air.
Mr. Peter Julian (Burnaby—New Westminster, NDP):
Mr. Speaker, I listened with great interest to my colleague
from the Conservative Party, although I will make the comment
that the highest debt load and biggest deficits in Canadian
history were under a Conservative government, the former Conservative
government of Brian Mulroney. For the member to pretend that
somehow the Conservatives know how to manage money I think is
a bit far fetched.
I want to get to the reality of this budget. The Conservatives
now have been in power for over two and a half years and what
we have seen is a steadfast erosion in good, quality, family-sustaining
jobs in Canada.
A study came out two weeks ago which indicated that the Conservatives
have managed to kick out of the country hundreds of thousands
of good manufacturing jobs that pay over $20 an hour and replace
them with minimum wage jobs in the service industry, jobs that
are temporary and part time. Like some kind of economic magicians
who cannot handle their magic wands, the Conservatives have
taken Canada decades backward to the time of minimum wage jobs
by kicking manufacturing jobs out of the country.
Therefore, my question is very simple. Right across the country
we are seeing a hemorrhaging of good manufacturing jobs due
to Conservative policies. We are seeing that the only thing
the Conservatives can come up with are minimum wage jobs that
are not family-sustaining jobs, that are part time and that
do not come with benefits. Will the member admit that the budget
has already failed because what we are seeing for most Canadian
families is a steady pushing back of their incomes and a steady
pushing down of overall wages in Canada?
Mr. Ed Komarnicki:
Mr. Speaker, quite the contrary, the Conservative government
is managing the economy very well. It is managing the continued
growth of the economy and jobs very well. If the member will
recall, there was a Globe and Mail article that indicated the
types of jobs that are actually being created. They are not
the Tim Hortons or burger-flipping type jobs. They are jobs
in management. They are jobs in various sectors.
The economy remains strong. Interest rates are low. Inflation
remains within the targeted range. Disposable personal income
continues to go up. The unemployment rate is at a 33 year low.
Employment is on the rise in every region of the country. More
than 750,000 new jobs have been created. The taxes that people
pay are at an all-time low. Debt is being paid down. Spending
is under control. We can remain focused with prudence, or we
can pretend that it is not working. All the indicators show
that the economy is on a solid foundation. Notwithstanding what
is happening in the global situation, we appreciate that has
some impact on our economy, as well, but we have addressed those
in strategically targeted ways and we are helping to overcome
those, while the rest of the country continues to grow. There
are many sectors of the economy in various provinces, like Saskatchewan,
that are doing exceptionally well.
It is very important to point out that more Canadians have more
dollars in their pockets today than they have had in a long
time. Indeed, the income taxes that people work so hard to pay
have been going down proportionately every year, into the thousands
of dollars. It is important for Canadians to be able to keep
some of that money to use on their own initiative to further
invest in our economy to create yet more jobs. Certainly it
will not be through going the route that the New Democratic
Party is talking about. I would urge the member and all hon.
members from his party to support this particular budget because
it has a number of innovative initiatives that need to go forward
to ensure our economy continues along the line that it has been
doing in the last little while.
Mr. Nathan Cullen (Skeena—Bulkley
Valley, NDP):
Mr. Speaker, if the member is talking about some sort of fiscal
balance or an approach that is striking balance within the economy,
why has the government chosen to continue with a subsidy to
the most profitable part of the economy, the oil sands? There
is a $1.3 billion or $1.4 billion subsidy that will continue
this year, next year and into the year after that, going to
a part of the economy which is making absolute record profits
with the price of oil being at an all-time high.
This does not make any fiscal sense nor is it prudent at all
when other sectors of the economy are struggling just to keep
their doors open. There was another announcement from GM today.
The government, in a sense, is regionalizing the country. It
is breaking it into its component parts rather than maintaining
a cohesive unit where various components of the country's economy
are presented as a unified force rather than advancing certain
interests that are narrowly geographically defined.
How is it that the member's government continues to justify
an obscene and perverse subsidy to an industry that does not
need it and has not asked for it? Certainly the money could
be used much better in other places, whether it be the auto
sector, the wood manufacturing sector, just about any other
manufacturing sector within our economy, rather than in companies
that simply are making profits that were unimaginable in previous
economies.
Mr. Ed Komarnicki:
Mr. Speaker, with respect to the big oil companies to which
the member referred, the member should have noticed that we
took away the accelerated capital cost allowance. This is actually
a tax hike for big oil companies. We transferred that benefit
to manufacturers in Canada as I described earlier. The member
surely is aware that more than 19,000 net new jobs were created
in this country last month alone, this despite the slowness
of the United States economy.
Since this government took office, employment has increased
by 832,000 people. There are some single industry communities
in particular which need help. That is why the Prime Minister
announced the community development trust fund of $1 billion
to help communities in parts of the country that have met some
difficulties, but there is specific assistance for those in
the manufacturing sector. A whole host of programs have been
developed to ensure they continue. There is $250 million over
five years to support strategic large scale research and development
projects in the automotive sector, to develop innovative, greener
and more fuel efficient vehicles. This funding will contribute
to a more competitive Canadian automotive sector and will help
Canada achieve its environmental objectives.
There is a whole host of other programs, such as: $9 billion
in tax relief including broad based tax reductions, as well
as temporary accelerated writeoffs for investments in machinery
and equipment used in manufacturing and processing; $1.3 billion
per year in additional funding to the provinces for post-secondary
education and training to create a more highly skilled workforce;
more than $1.5 billion over three years through budget 2006
and budget 2007 to support Canada's leadership in science and
technology; and of course, $33 billion over seven years in infrastructure
investments that will continue to ensure that we have the infrastructure
to ensure that our economy continues to grow.
Mr. James Rajotte (Edmonton—Leduc,
CPC):
Mr. Speaker, the parliamentary secretary mentioned some of the
tax cuts in this budget bill. It is important to point out that
the largest most targeted tax relief in the last two budgets
has in fact been for the manufacturing sector, in particular,
$1.3 billion in last year's budget and $1 billion in this budget
with respect to the two year writeoff for capital cost allowance
so companies can invest in new machinery, so they can improve
their productivity over a very short period of time and compete
at the dollar parity they are facing today.
The second thing I want to point out is there are comments made
about the service sector which unfortunately are very pejorative
and in fact are incorrect. According to Statistics Canada, and
the NDP is free to survey its website, the average service sector
wage rose from $14.97 to $17.54 between 2000 and 2007. This
was the fastest growing sector, in terms of percentage per annum
of the labour force surveyed, growing by 3.1%. I know the NDP
likes to say that they are only McJobs, but the service sector
includes financial services, the life insurance sector, health
professionals and teachers. That is what the service sector
is. This is what the industry committee is studying.
I encourage the member to talk to his colleague from Parkdale—High
Park so he gets a broader view of what the service sector is
in this country and how important it is. That is what the service
sector is. It is intricately linked with the manufacturing sector
and other sectors. We should be proud of all workers in this
country, rather than use pejorative terms like the NDP is choosing
to do in this debate.
Mr. Ed Komarnicki:
Mr. Speaker, I thank the member for drawing attention to what
should be painfully obvious to the NDP, but we do know what
we do not need. We do not need the type of economic policy the
professor across the way would have, which would max out the
national credit card and pay for it with a new carbon tax. It
would kill jobs. It would drive up the cost of everything, gasoline,
diesel, home heating oil. It would reduce the standard of living
for all individuals and families. Those are the kinds of things
we do not need. We need the types of programs that will ensure
the economy goes forward, that jobs are created, good quality
jobs as my learned friend has indicated. The NDP should wake
up and get behind us and support the initiatives we are taking
in this budget because it will certainly help all Canadians.
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