40th PARLIAMENT, 3rd SESSION
EDITED HANSARD • NUMBER 006
CONTENTS
Wednesday March 10, 2010
The Budget
Mr. Ed Komarnicki (Parliamentary
Secretary to the Minister of Human Resources and Skills Development
and to the Minister of Labour, CPC):
Mr. Speaker, I will be sharing my
time with the member for Fleetwood—Port Kells.
I would like to extend an invitation to the member for Kings—Hants
to visit Estevan, Saskatchewan, my hometown. The Conservative
government invested $240 million in a project that will be valued
at $1.4 billion with respect to carbon capture and sequestration.
It is a project that is perhaps known across Canada and around
the world.
In Weyburn, Saskatchewan, which is in my riding, EnCana is using
carbon capture and CO2 for the purpose of enhanced oil recovery
and has been doing so for years. It is a world leader in that
regard. Certainly it would be a good place to visit to see what
is now being done and what will be done in the future and the
jobs it is going to create.
This budget focuses on jobs and growth now and into the future.
During the good times we paid down debt by approximately $38
billion, and during these difficult times we introduced almost
$40 billion of stimulus, of which $19 billion is proposed to
be spent in 2010. With the additional $19 billion in stimulus
investment across Canada, we are solidifying Canada's recovery
by creating jobs and building roads, waterlines and infrastructure
projects in our communities throughout Canada.
The stimulus money that our government has been investing through
Canada's economic action plan has impacted hundreds of communities
across Canada, including a number of communities in my riding
of Souris—Moose Mountain. Over $60 million has flowed
into Souris—Moose Mountain on the federal side alone through
various programs, such as the Building Canada Fund, the Infrastructure
Stimulus Fund, the Knowledge Infrastructure Program, the RInC
program and the ecoEnergy Program. In fact, to my knowledge,
Souris—Moose Mountain has not seen this level of federal
investment ever.
We are building new water plants for communities. We are building
roads for communities. We are boosting up sewage infrastructure
and sewage lagoons. These infrastructure investments have not
been made for many years. In fact, the previous Liberal government
downloaded $25 billion to the provinces which got passed on
to the municipalities. Indeed, they may have balanced their
books, but at the cost of infrastructure that we are only now
attempting to mend and there is more that needs to be done.
That said, while government stimulus dollars are being put to
work under Canada's economic action plan, budget 2010 focuses
on the task of returning to a balanced budget, which is essential
to economic growth and job creation over the long term.
Budget 2010 outlines a clear three-point plan to return to a
balanced budget. First, we will follow through with the exit
strategy built into the economic action plan by completing the
balance of the investments; second, we will take action to ensure
government lives within its means; and third, we will conduct
a comprehensive review of government administrative and overhead
costs. These actions are what Canadians want. These are actions
we must take. This is something we must do to ensure long-term
success and a long-term recovery of the economy.
As the Minister of Finance has stated, we had to run this deficit
temporarily because of the most serious economic crisis since
the 1930s. Nobody will dispute that, but it does not mean we
have to continue with it. Everything considered, in my opinion,
the budget strikes the right balance. It is the right budget
for this time in our history.
The economy is still fragile and the recovery is tentative,
but it is now taking hold. Although a lot remains to be done,
much has been accomplished to position Canada for future growth,
including Souris—Moose Mountain. At the same time, the
people of Canada, including the constituents of Souris—Moose
Mountain, want us to get back to balanced budgets but in a logical
and measured way that will not harm the economic recovery. That
is exactly what we are doing. That is exactly what the budget
is addressing.
We said we would not balance the budget by raising taxes and
we will not raise taxes. Canadians have been very clear that
they do not want taxes raised and taxes have not been raised.
I know the Leader of the Opposition has mused openly about raising
taxes from the GST point of view, and in fact spending more
money. Where he is going to get it I do not know, maybe by driving
us further into deficit or raising taxes as he has openly mused.
That is certainly the wrong thing at the wrong time and Canadians
do not accept it and do not want it.
In the throne speech we said that balancing the nation's books
will not come at the expense of pensioners. It will not come
by cutting transfer payments for health care and education,
or by raising taxes of hard-working Canadians. What we will
do is restrain growth in spending by $17.6 billion over five
years.
Starting this year, the government will freeze the total amount
spent on salaries, administration and overhead in government
departments, including the budgets of ministers' offices. Legislation
will be introduced to freeze the salaries of the Prime Minister,
ministers, members of Parliament and senators.
In addition, a review of administrative services will be launched
to improve efficiency and eliminate duplication. All department
spending will be aggressively reviewed to ensure value for money
and tangible results.
That is what Canadians expect. That is what we will do. Once
that takes hold, we will be on our way to balanced budgets.
Canadians want prudent governance. They expect their government
to set out a clear road map that will bring us out of this downturn
in a position of greater strength. Canada's economic action
plan is doing just that.
The IMF has predicted that Canada's economic growth will be
at the head of the G7 in 2010 and 2011. We are on the right
track. We are headed in the right direction.
One of the tools our government has used to keep us on track
is lower taxes. Since coming into office in 2006, we have cut
over 100 taxes, reducing taxes in every way possible, in every
way that the government collects them. We have reduced personal
tax, consumption tax, business and excise taxes, and more.
Our current tax plan is reducing taxes on Canadians by an estimated
$220 billion over 2008-09 and the following five years. This
is the right thing to do. This is what Canadians expect us to
do. This is what will get the economy recovering as it should.
What is more, by lowering taxes, our government has sent a strong
message to the world, the message that Canada is open for business.
Canada will have the lowest overall tax rate on new business
investment in the G7 this year, and the lowest statutory corporate
tax rate in the G7 by 2012. This is the type of action that
will create jobs, boost our competitiveness and increase investment
at a time when we need it most.
In my constituency of Souris—Moose Mountain the agricultural
sector is one of the key economic drivers. Our farmers play
an important role by providing healthy, safe and nutritious
food for families in Canada and around the world, but they are
facing challenges with respect to commodity prices and so on.
Our government launched various initiatives
in 2009 to help the sector adapt to pressures and improve its
competitiveness. Canada's economic action plan announced the
$500 million agricultural flexibility fund and the $50 million
slaughter improvement fund.
In recent months our government also took measures to promote
access to foreign markets for Canadian agricultural products
through the establishment of a market access secretariat and
extended support to the hog industry to assist with restructuring.
The cattle sector in my constituency has been hardest hit. It
seems since the BSE crisis there has been one thing after the
other that has placed added pressure on an industry that has
seen low cattle prices, a high dollar, high input costs and
unpredictable market fluctuations. Budget 2010 announces three
measures to help ensure Canadian producers continue to have
access to competitive cattle processing operations in Canada.
First, funding available under the slaughter improvement program
will be increased by $10 million in 2010-11 to support the introduction
of new cost-effective technologies. Second, $25 million in 2010-11
will be targeted to cattle processing plants that handle cattle
over 30 months of age, something that is much needed and much
required. Third, our government is providing $40 million over
three years to support the development and commercialization
of innovative technologies related to the removal and use of
specified risk materials to reduce handling costs and create
potential revenue sources from these materials. These measures
will be funded from the existing agricultural flexibility fund.
We have also committed millions of dollars to modernize the
Canada Grain Act, something that is very important to our farmers.
Looking forward, my riding of Souris—Moose Mountain has
a substantial foundation to build upon as our economy grows
into the future. We are currently sitting on one of North America's
premium oil reserves in the Bakken oil play. As this resource
is untapped, it will bring significant economic benefits to
our corner of the province, our province and our country.
In Estevan the groundwork is being laid at Boundary Dam for
the development of one of the world's first and largest commercial
scale clean coal, carbon capture and storage demonstration project.
That is world-class technology being completed right in our
backyard.
As part of our economic action plan, money is flowing to the
Southeast Regional College for the development of the new Saskatchewan
energy training institute in Estevan.
Mr. Speaker, I see my allotted time is up so I will end my speech
here.
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(Insert) Portion of Budget Speech that was not read in the House
of Commons due to time constrain:
This training facility will no doubt
have a positive impact for the energy industry not only in my
riding but the province as a whole.
Weyburn is host to EnCana’s
oilfield, the world’s largest geological CO2 sequestration
project and the largest commercial scale carbon dioxide enhanced
oil recovery project in Canada. The cutting edge technology
that EnCana has been implementing over the last decade has placed
Weyburn on the map.
Weyburn is also home to the NorAmera
Ethanol Plant that is a recipient of government funding under
the ecoENERGY for Biofuels program. This plant is helping to
sustain local jobs and new economic opportunities for our region.
In the north part of my riding, the
Potash Corporation of Saskatchewan is conducting a mine and
mill expansion at Rocanville. The potash deposit at Rocanville
is a valuable and cost-effective asset and the mine is sure
to be an economic driver moving forward into the future.
These are just a few of the bright
lights in Souris-Moose Mountain that are giving my constituents
reason to be optimistic about the future.
In conclusion, Canada is in much
better shape than other developed nations because of prudent
spending and financial regulation. We are exiting the recession
in a great position of strength. We must place everything in
perspective.
At present Canada has the lowest
debt to GDP ratio in the G-7. In 2010, the International Monetary
Fund estimates that Canada’s debt to GDP ratio will be
approximately 31 per cent. In the United States the ratio will
be almost 67 per cent. In the United Kingdom it will be 75 per
cent, and in Japan, 115 per cent. Their ratios will continue
to climb, while Canada’s will begin falling in 2011.
The past year has certainly posed
its challenges, but in the big picture Canada is performing
relatively well. The work is by no means completed, but by remaining
focused and committed to the plan we have laid out, we are positioning
ourselves to come out of this economic downturn in a position
of strength and as a world leader.
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Mr. Jean-Claude D'Amours (Madawaska—Restigouche,
Lib.):
Mr. Speaker, I would like to provide my colleague across the
way with a few facts.
The Conservatives announced a $19 billion recovery plan. Let
us be clear about this, they are also announcing a $49 billion
deficit. They are the worst managers Canada has had in its entire
history. Thirty billion dollars as a result of bad management
will be added to the debt, incurring interest as well that will
have to be paid.
Because of this government, there are citizens who will not
get services in the future. The Conservatives cannot make us
believe they are good managers when it is clearly not the case.
The Conservatives say they want to eliminate taxes but they
do the opposite. Income tax was 15%. The Conservatives raised
it to 15.5%. That is an increase, not a reduction.
Now they are proposing a tax on air transportation. They are
increasing the employment insurance contributions for workers
and employers, as well as the penalty for people who want to
retire at age 60 instead of 65.
The reality is that this government has always increased taxes.
All they want to do is be bad managers and cut people’s
services.
Mr. Ed Komarnicki:
Mr. Speaker, it is unbelievable. I am not sure if the hon. member
was listening to what I was saying, but we cut over 220 million
dollars' worth of taxes over a number of years. Families today
are far better off than they ever were under the previous Liberal
government. They needed to run really hard just to stay ahead
of the taxes. What the Liberal Party proposes is to tax and
spend. That is not what Canadians want.
On the EI program for instance, the Liberals were suggesting
a 45-day work year that would cost billions of dollars. Where
would they get that money from? Either through deficit or raising
the premiums, which would further cut into jobs, when we froze
the premiums to make sure that jobs were created, or they would
raise the GST or other taxes.
The leader of the opposition said he would have a national daycare
program, something the Liberals have promised for years and
years and would cost billions of dollars. How would they do
that?
If Canadians want management, good management, they should stay
with us.
Mr. Christian Ouellet (Brome—Missisquoi,
BQ):
Mr. Speaker, at the beginning of
his speech, the parliamentary secretary asked the following
question: how can we move toward a green economy without increasing
taxes?
Since the budget was tabled and even before, the Bloc Québécois
has been trying to tell the government that the money is there.
The oil companies have been given $3.2 billion in tax cuts.
Could we not get a green economy with this money? We could also
go and get a few billion from the tax havens.
It is not a matter of raising taxes, except those of the highly
paid who can afford it. But the government does not want to
go and get the money where it can be found. Instead they give
it to their friends.
I would like my colleague to explain why the government does
not get the money out of the pockets of its friends, the oil
companies.
Mr. Ed Komarnicki:
Mr. Speaker, one thing we have done,
as I have said, is we have cut billions of dollars in taxes
on the average working Canadian to leave more money in the pockets
of Canadians so they can decide where they can put those dollars,
so they can cause the economy to revive and go forward.
Also, we have made the climate such that there will be investment,
not only by corporations and businesses and individuals within
Canada, but from without Canada into Canada.
What do investors do when they invest? What do they do when
they go into exploration? What do they do when they set up corporate
offices? They create jobs and more jobs. What we are doing is
making sure that jobs are created so people can indeed contribute
not only to our society, but can contribute by paying taxes
and creating more jobs so this economy can go upward and forward
and not downward as it would under the Bloc.
Ms. Olivia Chow (Trinity—Spadina,
NDP):
Mr. Speaker, public transit is the backbone of our urban economies,
but the Conservative government once again refuses to provide
dedicated funding for public transit. Without funding for public
transit, projects like Toronto's transit city will end up being
put on the shoulders of the property taxpayers. It is the same
thing when it comes to buying new streetcars.
Potential green jobs are thrown out the window and commuters
waste time and energy idling in their cars on clogged highways
or waiting for streetcars that take a long time to come.
I want to ask my Conservative colleague why the budget provides
no new dedicated funding to operate public transit, given that
Canada is the only G8 country that does not provide such funding
for public transit--
The Deputy Speaker:
I will have to stop the member there to allow the parliamentary
secretary 30 seconds to respond.
Mr. Ed Komarnicki:
Mr. Speaker, there is no question that urban transportation
is important to all of us. If she looked at the economic action
plan and some of the major infrastructure projects that we put
forward, she would find that millions of dollars were spent
to ensure that transportation was looked after, to ensure that
the appropriate infrastructure was there to take us forward
and into the future.
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