:
Mr. Speaker, governing is about priorities, and there is no better indicator of a government's true priorities than its budget choices.
[English]
Governing is about priorities and it is really in the budget choices that we see what a government is all about. After having promised to take care of the middle class, the very first budgetary measure brought in by the new Liberal government provided the highest tax break for families earning $200,000 a year and provided exactly zero dollars and zero cents for families earning $45,000 a year. What is interesting is that in many provinces across Canada, $45,000 a year is about the average of what a family earns, so it is a bit mystifying for most people to try to understand how the Liberals claim to have helped the middle class when in fact they were helping the richest.
Budgets are also part of the institutional life of this place. Unlike our American colleagues to the south who have endless additions once a budget is tabled, we have a system where a government's budget is presumed to be adopted. That is why we have a principle of budget secrecy, which is not very well respected by the new government by the way. I remember in particular the standing up and quite excitedly announcing that there was going to be great news for small businesses in the budget, but we learned that in the budget, the government was cutting the tax break that had been scheduled for small businesses which are the job creators in this country.
There is also part of the institutional life of this Parliament which is reflected in the fact that all-party budget consultations have always been a tradition. I was Jack Layton's finance critic for many years and these consultations were very important. I and my colleagues would have a chance to listen to people and groups in different regions of Canada about their priorities and what they were hoping to see in the budget. The fact that it was all-party showed that the budget in and of itself often has to be half a notch above the usual partisanship here because it is going to have to be adopted and we are supposed to be listening to what Canadians' priorities are.
I was surprised, not to say shocked, when in January I heard that the new had taken it upon himself to hold his own budget consultations. It is not bad that a finance minister has consultations, but the tradition is to include the other parties. When that was pointed out to him, he just said that there was not enough time. That was pure bafflegab. That simply was false. He was making that up. He was not respecting tradition. Sunny ways have always promised us that it is going to be better, that the government is going to be more open, more transparent, but all of a sudden, we learned that sunny ways and sunny days also mean that the government does not have to listen to anybody else and it certainly does not have to bring the other recognized parties in Parliament to the consultations.
If we thought that was a one-off, we soon learned that the other budget tradition in the House, which is that the finance minister always addresses a letter to the leaders of the other parties asking them about their priorities, was not respected. We were getting so close to the budget; it was about 72 hours before the budget presentation when I took it upon myself to write that letter with our priorities to the , because he had not respected that parliamentary tradition either.
Both of those events pointed to something quite troubling for me: a new government that talks a good game, but we really have to watch what it actually does. It is not only about promising to help the middle class but instead doing nothing for the middle class and helping the wealthiest, it is also about important parliamentary traditions that allowed us in the past to get together to build budgets.
I took it upon myself to carry out my own tour, from Halifax to Victoria, from southwestern Ontario to northern Saskatchewan. I met with hard-hit resource workers in western Canada who worry that the employment insurance they thought they were going to get is not there. The Liberals will talk, as the did again today, about the changes to employment insurance in the budget, but all that changed was the number of unemployed people who are not eligible for EI from 850,000 to 800,000. Members heard that number right. Eight hundred thousand Canadians who have lost their jobs are not eligible for EI, despite a promise from the Liberals during the election campaign to bring in the 360-hour rule and to get rid of the unfair changes wrought by the Conservatives.
There is nothing in here to help families buried in household debt. Canadians have the highest household debt of the G20. Skyrocketing child care costs are not addressed either. It still costs over $2,000 a month to have an infant in child care in Toronto. That makes no sense, and of course, it is women who pay the price.
I listened attentively when the described himself as a feminist. Well, someone who is a feminist would be trying to put in place programs to help women. It is in fact women who often have to make the tough choices and the sacrifices in their careers when affordable quality child care is not available.
I will never forget Kathleen Wynne chiming in to fight affordable, quality child care during the last election campaign. If she ever again tries to style herself as a progressive, I will be there, front and centre, to remind Ontarians that she fought quality, affordable child care.
That would be the same Kathleen Wynne with the big progressive budget, where she is now proposing to privatize Ontario's Hydro One. She just forgot to mention that when she was selling herself as a progressive during the last campaign.
I also met call centre and airport workers who work their full 40 hours a week and still live in poverty because we do not have a decent federal minimum wage. We wanted to bring the federal minimum wage to $15 an hour. I will never forget the current during the campaign saying it does not apply to people in big box stores. No, the federal government does not regulate big box stores, but it does regulate airport workers, call centre workers, and hundreds of thousands of Canadians could have gotten a raise with a $15 an hour federal minimum wage.
I listened to those indigenous communities that suffer boil water advisories, systematically underfunded schools and health, and a mental health crisis few can imagine, and that we will be debating on an emergency basis here in the House tonight. I am so proud of my colleagues who brought that forward so we can finally have a full airing of the issue here.
Many Canadians get a sense that the deck is stacked against them, and they want their government to be there to help them. We in the NDP have always considered that as social democrats our prime responsibility is to reduce inequality in our society. We have always understood that the best way to assure perennity of anything that the government does is to make sure that we have fully funded universal social programs, like child care and pharmacare. We will continue to reduce inequality in our society by proposing that we bring in universal, fair, social programs across the country.
I remember, the signals came very early. The new families minister gave an interview very early and warned people that things were going to have to wait. However, what did not have to wait was for CEOs to keep their stock option tax loophole.
During the campaign, the Liberals many a time mimicked NDP undertakings, so when we said that we simply could not accept that in a country as wealthy as Canada one million children were going to school hungry, and we were going to do away with the $800 million gift we were making to CEOs who do not pay their fair share of taxes because they are allowed to have stock options tax loopholes, the Liberals imitated that promise word for word. They said they were going to do away with it. Then about eight weeks before the budget, they started backing away from it. That is their new theme song, like a truck backing up. We can hear the beep, beep, beep.
There it was. All of a sudden, for what was promised, they said maybe they would do half in this budget. Lo and behold, the budget arrived and there was not a single line on removing the CEO stock option tax loophole.
[Translation]
Canada's economy has grown by 50% in the past 30 years. It was workers who were responsible for this 50% increase in a single generation. However, these workers' incomes are stagnating, and many of their jobs are being outsourced.
Inequality is growing faster in Canada than in any other G20 country. Today, the 100 richest Canadians, at the upper end of the scale, have more wealth than the 10 million Canadians at the lower end of the scale. That is unacceptable.
In Canada, the average CEO earns 200 times more than a worker. The rich are earning more and more, while middle-class workers are losing their good jobs. The number of precarious, part-time, and temporary jobs is on the rise.
I want to get back to the progressive Ontario government, whose members have come up with my favourite euphemisms.
[English]
The euphemism factory that is the Kathleen Wynne Ontario Liberal government came up with my favourite. Instead of talking about part-time, precarious, temporary jobs, it calls them CMEs, contemporary mobile employment—what normal people would call lousy jobs. In fact, the CIBC put out a study recently that proved that these are the worst-quality jobs that we have seen in a full generation.
So it has been promise after promise.
Sixty billion dollars in tax giveaways provided nothing to stimulate the economy. Last year the banks made $35 billion in profit and paid their directors $12 billion in bonuses while at the same time shipping thousands of good-paying Canadian jobs out of the country.
The stock option tax loophole should have been gotten rid of. Small businesses should have been given a break because they do create the majority of jobs in this country, but we know that when the Liberals talk about helping workers, they are most often helping the richest.
[Translation]
With respect to employment insurance, the Liberals and Conservatives managed to divert more than $55 billion from the employment insurance fund. Workers and their employers contribute to this fund so that they have access to assistance when the economy is struggling and more people lose their jobs, as is the case right now.
The Liberals called out the Conservatives when they locked the EI fund up tight, but the Liberals are the ones who invented the idea of dipping into the EI fund. Imagine our surprise when the government proposed taking another $7 billion from the fund in this budget. Canadians and first nations communities deserve better.
On the weekend, Cindy Blackstock explained that in light of the Human Rights Tribunal's decision, $230 million was missing from the budget.
[English]
That is worth explaining.
We have a decision of the Canadian Human Rights Tribunal requiring the government to stop racial discrimination against first nations youth. There is $130 million missing in the budget for child welfare and $230 million missing for education. This is not a question of personal choice. This is not a question of opinion. The courts have ruled this is a case of racial discrimination. When it is a case of racial discrimination, we have to remove the discrimination. The Liberals did not do that. It is shameful.
There is not a single mention of the 94 recommendations of the Truth and Reconciliation Commission in the budget.
For anybody who thought there might be a little bit of breathing room given when the Liberals promised to reinvest $3 billion in home care, there was not one dollar. That would have taken some pressure off our severely taxed health and social service system—notably, the hospitals across this country.
Only half of the promised money was there for transit. More and more, we are going to see tolls and user fees coming in.
Now I have to spend a minute talking about my favourite broken promise on the part of the Liberals.
Members might recall that I asked the if he was going to respect his personal solemn promise to restore door-to-door mail delivery. I hope members remember his answer, because I will never forget it. He said the seniors, the mobility-reduced seniors living in our downtown cores who believed him when he promised to restore door-to-door mail delivery, should have actually gone online, and if they had consulted the platform of the Liberal Party, they would have noticed that it was slightly different from what he promised when he was standing beside Mayor Coderre of Montreal when he wanted to win some votes.
There is a message there from the , the same person who always laments how cynical it has become in politics. What could be more cynical than looking at that mobility-reduced senior and saying, “Sorry, sucker. You should have read the fine print. You should never have believed a word I said”?
[Translation]
If we took the money needed to pay for the life cycle of one F-35, we could pay the tuition of 100,000 young people.
[English]
Members heard that right.
Over the life cycle of each F-35—the ones they cancelled in the middle of the campaign but are sort of not really cancelled anymore—each one is going to cost well over $1 billion. We know how much that is: it is enough to help pay the tuition for 100,000 Canadian youth. We find that is also shameful. The Liberals are spending money on F-35s when we have the greatest student indebtedness ever in the history of Canada.
There is also a total lack of any credible climate change program. It is mind-boggling. I get to sit here in front of the , and her answers on greenhouse gas reductions in Canada are so spectacularly vapid that it defies understanding. She stands day after day and talks about a regulatory approach in which somehow the province is responsible. It was Canada that signed. Remember “Canada is back”? Unfortunately, Canada came back with the Conservatives' timelines and their program.
The Liberals have no plan whatsoever. It is a complete and utter fraud when the Liberals talk about reducing greenhouse gases in Canada. Yes, it is 2016; unfortunately, in 2017 we are going to produce more greenhouse gases, and when it is 2018, we are going to produce even more. We have no plan whatsoever from our federal government to reduce greenhouse gases. Canada is not doing its share to combat global warming.
That is why New Democrats were clear. The only way to judge this budget is not on what the Liberals said but what they have actually done.
[Translation]
Did they take practical steps to reduce inequality in Canada, yes or no? They did nothing.
[English]
When the Liberals refuse to ask big banks, profitable corporations, and wealthy CEOs to pay their fair share of taxes, we are left without the fiscal capacity to invest responsibly. As usual in tough economic times, struggling Canadians and the most vulnerable, like first nations youth, are told they have to wait for help, wait for improved employment insurance, wait for a more secure retirement, wait for better health care, and wait for more affordable child care. Canadians have waited long enough.
As the progressive opposition, our New Democrat team will keep fighting to ensure everyone pays their fair share, everyone is taken care of, and no one is left behind.
Thank you. Merci. On continue.
:
Mr. Speaker, I will be sharing my time with my colleague, the member for .
It is an honour to rise in the House today and speak in favour of budget 2016. During the last election and through extensive pre-budget consultations, I heard personally from many people in Oakville. Oakvillians shared their concerns about jobs and job security. Many felt trapped in poor-quality jobs or had family members who were struggling in a sluggish economy.
Young families expressed concerns about the cost of day care and their struggles to make ends meet. Many seniors and young Canadians said they also were having difficulty making ends meet. The root causes were different, and different solutions will be required, but if we do not act to help, the outcome is the same: people trapped in poverty or people trapped in underemployment.
The Town of Oakville, Halton Region, and many business owners talked about failing infrastructure and problems with road congestion. Owners of small and medium-sized businesses spoke about their concerns with access to trained workforces and support for the innovation and entrepreneurship that has been a staple of the Canadian economy. They are also worried about the slow economy and the need for revitalization and stimulus.
Social agencies expressed concerns about housing, poverty, inadequate shelters from violence, and care for the elderly. Green advocates like the Halton Environmental Network and Oakvillegreen raised concerns about reliance on greenhouse gases and the need to move our economy from a carbon dependency.
Many residents of Oakville were concerned about the loss of federal investments in arts and culture, and particularly the reduction in funding to the CBC.
The reason I am so honoured to rise and speak today is my confidence that this budget will begin to address these myriad concerns and many others that I have not specifically addressed. Let me speak to some of the specific budget provisions.
For young families, budget 2016 would introduce the Canada child benefit. This would provide families with a maximum benefit of up to $6,400 per child under the age of six, and up to $5,400 per child aged six through 17. With the Canada child benefit, more than three million families would receive more benefits than before—on average, $2,300 more per year, tax-free. This would lift almost 300,000 children out of poverty.
For young Canadians, budget 2016 would ensure that students graduating from college or university would not have to start paying back their student loans until they make at least $25,000 in annual income. Budget 2016 would boost grants to low- and middle-income college and university students by as much as $1,000 per year. This measure would put more money in the pockets of 360,000 students a year.
The introduction of a flat-rate student contribution to determine eligibility for Canada student grants and loans would encourage students to work and gain valuable labour market experience while studying. This measure would provide assistance of $268 million over four years. Employment opportunities for youth are also planned through an investment of an additional $165 million in 2016-17 for the youth employment strategy, and $300 million over three years for the Canada summer jobs program to create 35,000 additional youth jobs each year.
When I met with young Canadians who were progressing after post-secondary education with jobs and low debt, many had benefited from co-op placements. Co-op placements provide essential networks and in-year funding to help with educational costs. Support for new co-op placements and work-integrated learning opportunities for young Canadians is planned in the budget through an investment of $73 million over four years for the post-secondary partnership and co-op placement initiative.
To help universities and colleges develop highly skilled workers, to act as engines of discovery and support the growth of innovative firms, budget 2016 would provide up to $2 billion over three years for strategic projects to improve research and innovation infrastructure.
For seniors, the budget would increase the guaranteed income supplement benefit for single seniors up to $947 annually to help lift low-income single seniors out of poverty. This measure represents an investment of $670 million per year and would improve the financial security of about 900,000 single seniors across Canada.
The government would restore the eligibility age for old age security and guaranteed income supplement benefits to 65, which would put thousands of dollars back in the pockets of Canadians as they become seniors.
Budget 2016 provides infrastructure support for the construction, repair and adaption of affordable housing for seniors through an investment of $201 million over two years to help the many seniors facing challenges in accessing affordable housing.
To improve the retirement income security for all working Canadians, the government has begun discussions with the provinces and territories to enhance the Canada pension plan, a portable, low-cost and defined benefit pension.
To grow the economy and create jobs, phase 1 of the infrastructure plan invests $11.9 billion to build roads, bridges, improve public transit, improve water and waste water facilities, and refurbish affordable housing. This will create tens of thousands of jobs and boost the economy. Specifically, the government will invest $3.4 billion over the next three years to upgrade and improve public transit; $5 billion over five years for investments in water, waste water, and green infrastructure projects; and $3.4 billion over five years for social infrastructure, including affordable housing, early learning and child care, and cultural and recreational infrastructure.
In addition to the new funding announced in budget 2016, the government will continue to make available approximately $3 billion each year in dedicated funding for municipal infrastructure projects through the gas tax fund and incremental goods and service tax rebates for municipalities.
To help businesses and manufacturers of all sizes, budget 2016 makes available up to $800 million over four years, starting in 2017-18, to support innovation, networks and clusters.
To support an innovative automotive sector, budget 2016 announces the extension of the automotive innovation fund through to the end of 2021. The government will also examine approaches to maximize the impact of federal support offered to the automotive sector, including assessing the terms of the fund.
To assist the transition to lower carbon transportation fuels, budget 2016 provides $62 million over two years to support the deployment of electric vehicles and alternative transportation fuels infrastructure.
Building on Canada's proud history in space and to create employment opportunities for the space industry sector, budget 2016 proposes to provide up to $379 million over eight years for the Canadian Space Agency to extend Canada's participation in the international space station to 2024.
For small and medium-sized enterprises that are receiving advice and project financing through the industrial research assistance program, budget 2016 proposes to provide the program with a further $50 million in 2016-17.
Budget 2016 invests in the Canadian cultural sector to create jobs and ensure that our unique Canadian perspective is shared with the world. Included in this allocation are $1.3 billion in support for long-standing arts and cultural organizations, such as the Canadian Broadcasting Corporation, Radio-Canada, the Canada Council for the Arts, Telefilm Canada, and the National Film Board.
Canada will also be able to showcase Canadian artists and cultural industries abroad with an investment of $35 million over two years, which will immediately help Canadian foreign missions promote Canadian culture and creativity on the world stage, particularly in the lead-up to the Canada 150 celebrations.
As I said at the outset, I am proud to rise and speak to the benefits of this budget for the people of Oakville, for Canadians and for our economy. This budget specifically addresses the concerns I have heard in my community. It puts us on a course for economic growth, expands opportunities for the middle class, and for those striving to be in the middle class.
Finally, this budget allows the government to reach out with help for those most in need in our communities.
:
It is a new day for Canadian families, Mr. Speaker, and it is a true privilege to rise in the House to speak in favour of the government's budget. This is a budget that finally gives middle-class families and those working hard to join them a long overdue helping hand.
My riding of Scarborough Centre is a community of hard-working middle-class families. We are a diverse community hailing from all corners of the world, all proud Canadians working hard to provide a better life for our children.
We are not afraid of hard work in Scarborough. We know that to put in an honest day's work to provide for our families is a noble thing. It is the responsibility our parents taught us, and we are working hard to instill that in our children.
For far too long middle-class families have gone without a raise. They have watched their rent go up and groceries get more expensive, while their paycheques never keep up.
We value hope and hard work, but we also believe that hard-working middle-class families deserve a little help from their government. After a decade in the dark, finally middle-class families have a government that is listening.
The first thing this government did was to lower taxes for nine million middle-class families, and budget 2016 builds on that investment in our middle class by introducing the Canada child benefit.
Unlike the program of the previous government, which sent cheques to millionaires who did not need the help, this government's Canada child benefit is targeted to those families that need help the most. Low and middle-income families will receive more benefits under this program and it will not be clawed back when they file their taxes. The program is simpler with families able to count on a single payment every month and it is more generous with eligible families seeing an average annual increase of $2,300.
Families that earn less than $30,000 will receive the maximum benefit and nine out of ten families will see an increase in benefits. Best of all, thanks to this investment, 300,000 fewer children will be living in poverty by 2016-17 compared to 2014-15.
For the many families in my riding where both parents are working just to keep up with the cost of living, the Canada child benefit provides much needed relief. Combined with this budget's infrastructure investments in early learning and child care, parents can sleep more soundly at night knowing their children's futures are a little more secure.
Invariably though, our children grow up. As a mother, I unfortunately see this myself. It is sometimes hard to accept my two boys are now teenagers getting ready to go to university. Soon after that they will be entering the workforce. I worry about the opportunities that will be there for them and if they will have the chance to succeed to their potential.
My husband and I have been saving for our sons' education and I am lucky to have a job that will make it a little easier to send them off to school. However, not all families have that opportunity. The cost of post-secondary education has been escalating dramatically for years. We are saddling our children with crippling debt just as they try to begin their adult lives.
I believe there is no better investment a government can make than in our young people. The dollars we invest in post-secondary education will come back to the public coffers many times over as today's confident and dynamic students become tomorrow's innovators and job creators.
First, we need to give our youth a fair chance at success. With budget 2016, we are giving Canada's youth that opportunity. The budget increases the size of Canada's student grants to help students from low and middle-income families cope with the rising costs of post-secondary education. With assistance of $1.53 billion over five years, students from low-income families will now be eligible for non-repayable grants of up to $3,000 annually, an increase of 50%.
The government is also expanding eligibility for the Canada student grants program to help even more students receive non-repayable assistance.
Also, to not unfairly burden recent graduates just beginning their careers or looking for that important first job just out of school, the budget would raise the loan repayment threshold under the Canada student loans program repayment assistance plan to ensure that no student would have to begin repaying their Canada student loans until they earned at least $25,000 per year.
Helping with post-secondary education is only part of the process. Canada has a youth unemployment rate that is stubbornly above the national average. Too many young people are graduating from university and having trouble finding that all-important first job, or indeed any job. They are staying in or returning to their parents' homes longer, and delaying beginning their own families as they struggle to begin their professional lives.
Our government recognizes this challenge, and with budget 2016, we are taking concrete action. We are investing an additional $165.4 million in 2016-17 for the youth employment strategy, and another $105 million over five years in youth services to help young Canadians gain valuable work and life experience.
As well, with the support of $73 million over four years for the post-secondary industry partnership and co-operative placement initiative, more young Canadians will have access to co-op placement and work-integrated learning opportunities to help them land that important first career-oriented job even sooner.
We must give our youth the skills to compete in the economy of the future, but we must also ensure that our economy is built on a solid foundation. That means investing in our infrastructure. Businesses will not grow and invest in Canada and hire Canadians if we do not have the infrastructure to ensure their employees can get to work and their goods can get to the market.
When we talk about deficits, and I know we will in this debate, we cannot forget the infrastructure deficit. This is the delayed investment in our crumbling infrastructure, from highways and transit to ports and sewers, that according to the Federation of Canadian Municipalities, had reached $123 billion by 2014. We cannot afford to pass this debt on to our future generation. Failing to address it puts our future economic prosperity at risk.
This government is not afraid to act. With budget 2016, our government is tackling this infrastructure deficit with an historic investment of more than $120 billion over 10 years.
The investment includes $3.4 billion to upgrade and improve public transit systems in Canada. My own community of Scarborough is underserved by higher order transit, and this investment will allow my constituents to get to work more quickly and then back home to their families.
With $3.4 billion over five years for social infrastructure, our government is finally moving to address the affordable housing crisis in this country. Too many people in Toronto are seeing most of their paycheques going to rent, leaving them to make hard choices when it comes to putting food on the table and investing in their children's future. Affordable housing must become a priority in this country.
Lastly, but certainly not least, please allow me to talk about Canada's seniors. These are citizens who have worked hard all their lives. They helped to build Canada into one of the greatest countries in the world. We owe it to them to ensure that they have the opportunity to retire with the dignity and security they have earned and deserve.
However, I know too many seniors in my riding for whom that dream of a secure and dignified retirement is just that, a dream. Too many seniors are finding it more and more difficult to cope with the rising cost of living on a fixed income. More and more seniors are living in poverty. This is a shame that should not be acceptable in a country like Canada.
This budget takes immediate action to help our most vulnerable seniors by increasing the guaranteed income supplement top-up benefit for single seniors to up to $947 annually to help lift low-income single seniors out of poverty. This is an investment of some $670 million that will provide improved financial security to about 900,000 single seniors across Canada.
We will also restore the eligibility age for old age security and guaranteed income supplement benefits to age 65, a move that will put thousands of dollars back in the pockets of Canadians as they become seniors.
As part of our investment in social infrastructure, budget 2016 includes an investment of $200.7 million over two years to support the construction, repair, and adaptation of affordable housing for seniors to help the many seniors facing challenges in accessible affordable housing.
There are many more good things in budget 2016, but by investing in our youth, our seniors, and in middle-class families, this budget presents a blueprint for a better Canada, a Canada where we reward hard work, help those who need a hand, and work to ensure that every Canadian has the opportunity to achieve his or her potential.
:
Mr. Speaker, before I begin, I would like to say that I will be sharing my time with the hon. member for .
We have now been exposed to the finance minister's first budget. It contains no surprises. We all knew that the budget would not balance itself. We all knew that the 's campaign promise of a $10-billion deficit was, to use parliamentary language, wishful thinking. Now we know the truth. The Liberals are in favour of undisciplined spending, have no plan to balance the books, will fail to boost economic growth, and are raising taxes on families, individuals, and small businesses.
Take, for example, how this budget treats families. Half of all couples with children are at risk of being financially worse off under this new Liberal plan. The new Liberal child benefit plan will support fewer middle-class families than the previous universal child care benefit. Personal income tax is going up, as the government has eliminated income splitting for families. They have cancelled the plan to expand the tax-free savings account, the tax credit for fitness and arts, and tax credits for post-secondary education and textbooks.
This budget does nothing to help small businesses. In fact, it appears designed to hurt them. Keeping the small business tax rate at 10.5% instead of lowering it to the scheduled 9% and ending the hiring credit for small businesses does nothing to support entrepreneurs or the 1.7 million Canadians employed in the manufacturing sector.
By increasing income taxes, the Liberals are making it harder to keep talented workers and innovators in Canada. Raising taxes on businesses will not help the 100,000 Canadians who have recently been laid off in the oil and gas industry. The Liberals are raising taxes on job-creating businesses. The previous Conservative government created a low-tax competitive business environment to drive investment and create hundreds of thousands of private sector jobs.
Let us look at the philosophy behind this budget. Canadians need jobs in these uncertain times to allow for a bit of security. Do the Liberals understand this? Apparently, they do not. Despite the rhetoric about investing in infrastructure and innovation, the budget does little to build infrastructure and invest in innovation. It is really about growing the size of government. Hiring more civil servants is not the best way to grow Canada's economy. When the government spends taxpayers' money, it needs to do so with a purpose. It needs to ensure fiscal responsibility and results. This budget provides for neither.
The Liberals are borrowing four times more money than they promised they would. They are borrowing $30 billion this year alone, and $100 billion over four years combined. The Liberals have no plan to balance the books. They promised that they would balance the budget by 2019. Now they plan to borrow more money every year, with no end in sight. The promise of a small deficit has been replaced by the promise of a colossal deficit, and they hope that the Canadian people will not notice.
Even more disturbing than this huge deficit is the lack of a long-range plan. It is not enough for the government to say it intends to balance the budget at some hypothetical date in the future. Where is the plan to pay back the money that it is borrowing right now, next year, and the year after that to support its reckless spending agenda?
The and the seem proud to tell us that they will not balance the budget in four years. They hope we will not notice that during that time they will add $150 billion to the national debt, with no plan to pay the money back. That means there will be almost $1 billion more debt in interest alone every year, just to satisfy their urge to spend, spend, spend.
The is very good at saying the Liberals are therefore the middle class, even if he cannot define who is in the middle class. With his budget, his gift to each and every Canadian in the middle class, upper class, or lower class is an additional $818.03 in debt, and that is not counting the interest payments.
With an even larger amount to be added next year, the Liberals are bribing Canadians with their own money and hoping no one will notice when it comes time to pay the bills.
Once again, the government has lost the opportunity to do more than offer political platitudes to unemployed Canadians. It has missed the opportunity to offer support to our energy industry, support that would not cost a dime, by endorsing the energy east pipeline project.
The apparently thinks this is a good time for government to borrow money. The Liberals are going into debt because they can. With no regard to fiscal prudence, they have no idea how to pay the money back. That will be someone else's problem after this government is gone.
Almost all Canadians can agree that getting into debt is easy. Getting out of it is hard. Sadly, there are at least two who do not understand that: the and the Prime Minister. They are determined to crush the country with debt.
How does the budget help individual Canadians? Personal income taxes would be set to go up by $1.3 billion this year and $2.4 billion next year, due to the elimination of income splitting and higher rates on incomes over $200,000. The new Canada child benefit would come at the expense of existing child benefits. At least 10% of families would be losing such support altogether.
Once again, the Liberal record is one of broken promises, whether it is increased spending on palliative care or the elimination of community mailboxes.
When it comes to spending taxpayers' money, the Liberals just cannot help themselves. This debt would need to be paid back by future generations. The government thinks that is fair. After all, our generation is still paying off the deficit spending of previous Liberal governments, so why should our children not be in debt?
At the end of last year, the Liberals had more than $3 billion in the bank. They have blown through that money and now need to break their election promise and borrow even more. Economists say that the Liberals will rack up more than $150 billion in debt over the next four years. This is not a one-year operation. This is the beginning of years of deficits, a mortgage on our country's future.
At some point the Liberals will reluctantly come to the conclusion that budgets really do not balance themselves. Such statements are either wishful thinking or fiscal ignorance. How would they deal with this deficit? How would they pay for their spending schemes? The Liberals would raise taxes even more for hard-working Canadian families and job-creating businesses.
Job-creating businesses will not invest in Canada if they do not know the cost of doing business. Saddling businesses with higher taxes, changing the rules of the game when they are not looking, and handing borrowed money from one politician to another will not create jobs.
More than 100,000 Canadians from across the country are out of work in the oil and gas industry alone. The budget offers them no hope for their future, no admission that our energy industry is key to our overall economic health. We know the recipe for job creation. It is low taxes, low red tape, open competition, free trade, successful businesses, and responsible spending of taxpayers' money. That is what the government should focus on. Instead, what we have is platitudes and promises. That is not good enough, unless one is a Liberal.
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Mr. Speaker, “You cannot pay a debt with a noble pedigree”; so says a Yiddish proverb. Paying down a debt takes fiscal prudence. A famous name or the performance of past governments is no replacement.
Last month I attended a financial help session aimed at laid-off professionals and skilled trades workers from the energy sector. The highlight was a presentation by the Credit Counselling Society that offered four steps for dealing with reduced incomes, budget drainers, and impulse spending.
After looking at this budget, I see the government needs to sit down and take credit counselling advice from the Calgary Credit Counselling Society. On its behalf, I am going to invite the government caucus to join me as I walk through the four steps to a sunnier tomorrow. The first step is finding sources of income that are available; it is pretty good at that. The second is finding ways to reduce expenses: not so good. Third is managing credit: equally not very good. Fourth is dealing with debts immediately: not very good.
On the first part, namely finding sources of income, the Liberals deserve a gold star. They are masters at squeezing Canadians out of just about $20 billion in tax hikes in this budget and, for business, $2 billion per year in higher taxes by 2019, and reneging on the planned tax cut for the latter and eliminating a series of tax credits for the former.
“Other sources of income” in this case, of course, is new borrowing. The aggregate principal amount of money to be borrowed by the government from financial markets in 2016-17 is projected to be $278 billion, over $100 billion of new debt before the next election.
The result, calculated by Generation Screwed, an advocacy group for Canadian youth, is an annual interest bill of $25.7 billion in this fiscal year alone, or 8.8% of tax dollars spent on interest.
The Credit Counselling Society of Calgary also gave advice on how to temporarily increase income, from temporary work to part-time work to snow removal and bottle collection. I am not recommending that the government put its MPs to work collecting bottles to pay down the national debt, but I am also not saying that it would not help.
On page 211, the government lays out a plan to eliminate poorly targeted and inefficient measures, but if it is anything like what it did to the education and textbook tax credits or income splitting or the small business tax rate reduction or the slashing of the tax-free savings account maximum, the Liberals are looking in all the wrong places for this temporary new income.
The second step offered by the Credit Counselling Society toward financial freedom is to find ways to reduce expenses. I am afraid the counselling society would sit the government down and give it heartbreaking news. It is failing and doing it all wrong.
The Liberals have thrown caution to the wind, undoing much of the spending controls put in place by the previous government and ending this past fiscal year $5.4 billion in deficit. The Liberal government has presented us with a proposed $29.4 billion budget deficit for 2016 and $113 billion in new debt over the next four years.
The election pitch put forward by members on that side of the House was to run modest deficits of $10 billion. Now we find out that the numbers are triple that, closer to $30 billion. The money is not going towards infrastructure in the vast quantities it promised. Half of the $120 billion total the government promotes is rehashed spending from the previous government.
A paltry 13.5% of the $29.4 billion in this fiscal year, or less than $4 billion, is actually designated for infrastructure. The Calgary Green Line LRT alone is estimated to cost $1.5 billion, and the construction start date is 2017. The previous Conservative government committed the funding, so will the government commit to it too? We do not know; it does not appear in the budget.
In fact, Calgary gets only one mention, for its ring road project completion. It is nice to see the government living up to the smart spending promises of the previous Conservative government.
Now the Credit Counselling Society says to use accurate numbers to work with, evaluate habits, and identify where changes can be made.
We learned these past few days that the parliamentary budget office had to publicly force the government to release further documents that were standard in past budgets, with information request IR0217.
The PBO also revised downwards the employment impact numbers, for not one but two fiscal years. In 2016-17, it was down to 26,000 jobs from Finance Canada's 43,000 jobs. For 2017-18, it was down to 60,000 from 100,000 jobs.
Many tools exist to make budget tracking easier. I am going to recommend the smart phone apps Mint or TrackIt from the Alberta Treasury Branches. I am happy to sit down with the , download it to his phone, and get it working so that he can begin tracking his government's spending habits. We could identify some of those budget drainers the credit counsellors keep warning against.
The budget is littered with half measures with expensive price tags. For example, on page 257 of the budget document, under “Other spending measures”, there is a subheading that also reads “Other measures”, and there is a whopping $620 million this fiscal year and $292 million in the next. Out of the 10 line items in there, it happens to be the biggest one, so the other of the other is actually the most expensive thing that the Liberals are spending on.
Just as Canadians track their expenses, the Liberals too should focus on what is straining their budget by asking themselves where the money is going.
Here is a question a credit counsellor might ask: “Are you helping out someone, such as family or friends, when you cannot afford it?”
I have noticed that on almost every single international visit, the Liberals come bearing gifts. For example, in their first 100 days in power, they made $5.3 billion in spending commitments. There was just $997 million for projects inside Canada, and the rest, $4.3 billion, is to be spent outside the country.
Now, the logic and accounting here are pretty darn simple. Do we want to get into financial trouble? If not, then we either have to start making more money, cut back on expenses, or both. It is a simple principle that credit counsellors apply and one that would not hurt the Liberals to adopt.
This budget is especially troubling for families like the McAllisters in my riding: Maja and Darcy, and their kids Liam and Veronica. Darcy makes his living in the oil and gas industry, like thousands of others in my riding, and they are seeing a government completely undermining the source of their prosperity.
The third part of Calgary's Credit Counselling Society's strategy is to deal with one's debt. The government misses the mark here yet again. We see on page 53 a mention that they will repeal the Federal Balanced Budget Act. There will not be amendments, but a complete and entire repeal, a full elimination of the act. Not only do the Liberals have a spending problem, but they will not admit that they need to be put on a debt diet.
To deal with government, we typically see a series of fiscal anchors—legislative and policy measures—that help guide the government's overall efforts to control spending. However, the Liberals do not have these here. In fact, they have dropped the only anchor straight into an abyss of perpetual debt.
As an Albertan, I look to the former example of Premier Ralph Klein and his deficit- and debt-fighting battle. He won because he created strong legislative anchors. He and his ministers fixed strong policy measures as well. Most of all, he provided fixed, strong leadership on what he needed and wanted to achieve. Ralph Klein, Jim Dinning, Steve West, Stockwell Day, and many others provided leadership provincially and knew when to drop anchor and balance Alberta's budget.
However, the current government offers us annex 3 on page 259, the debt management strategy, which is more concerned with where new debt will be acquired rather than with how it will be paid down. Credit counsellors point out that among the top reasons for financial struggle among Canadians is the excessive use of credit for living expenses. What the Liberals are proposing is the same principle.
Let us not forget that there is an interest cost for borrowing such huge amounts of money, so let us look at what happens when government increases debt. The Ontario Liberal government spent $11.4 billion a year just to make interest payments on its debt. If debt were a government department, it would be the third largest in that province. Let us ask ourselves what future generations could do instead of paying interest on that debt.
However, it does not stop there.
We know that key interest rates have already gone up in the United States and that the Bank of Canada will eventually follow suit at some point in the near future. This will affect not only indebted consumers but also the amount of financial resources directed to debt servicing costs.
What will the Liberals do when interest rates rise or double? Are they saying it will not happen over the next decade or so? They have no plan.
Let us talk about impulse spending. Credit counsellors ask people if they have ever bought something and then regretted it. The acronym is TEMPO: time, environment, mood, place, and occasion. Credit counsellors offer some strategies to deal with this impulse spending, and I want to recommend a few things here.
The government should stop international trips, because those seem to be quite expensive. The Liberals should pay attention to details. They call it “stress fog” when someone buys on impulse. It would have helped the Liberals avoid the embarrassment of ending income splitting for couples with children and saying that it would be offset by raising taxes on the one per cent, because the parliamentary budget officer said that no, that is actually not the case.
Is it possible that question period is stressing out the ministers responsible for the finances of our country? They would be less stressed if they brought real answers to the questions from this side of the House, and the truth is a great stress reliever.
The government needs to focus on prudence. The 1970s fiscal and economic policy led by another famous prime minister is of no help here. A famous name cannot save them here.
With this budget, the Liberals have thrown caution to the wind, betrayed the middle class, and placed Canada on a path of structural deficit. They have irresponsibly endangered our financial stability, meaning that in the next recession, with record spending and record low interest rates, there will be no space for a future government to respond.
However, I bring good news: it is not too late to stop. I would be happy to share the presentation from the Credit Counselling Society, its contact information, and its flagship website, www.nomoredebts.org. Its advice is confidential. Good news: no-cost credit and budget counselling from the consumer experts is only a call away.
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Mr. Speaker, I will be sharing my time with the hon. member for .
Budget 2016 proposes a new approach. In recent years, fewer and fewer Canadians have reaped the benefits of economic growth.
Although household spending continues to grow, most families have seen virtually no increase in their income over the past 30 years. As a result, it is increasingly difficult for families to make ends meet.
With Canadians’ decreasing ability to pay for their children’s education, care needed for their aging parents, and their own retirement, they are wondering whether there is still any reality to the promise of progress in Canada.
In electing a new government, millions of Canadians expressed their desire for change. We have offered Canadians an ambitious new plan to create long-term economic growth by increasing people’s disposable income and stimulating infrastructure projects.
Canada’s financial situation is quite solid. We have the lowest debt-to-GDP ratio of any G7 country, and that gives us the necessary flexibility to make strategic investments today that will grow tomorrow’s economy. Now is the ideal time to invest: interest rates have never been so low.
This budget targets the middle class and Canadian families. It also offers immediate assistance to those most in need of it: seniors, youth, the unemployed, veterans, and indigenous peoples.
Overall, this budget increases the disposable income of the entire population by reducing taxes on the middle class, and the Canada child benefit will lift almost 300,000 children out of poverty.
We will be raising the guaranteed income supplement for 900,000 low-income seniors. In addition, to grow the economy and create jobs, the government will be investing $11.9 billion in infrastructure.
We believe that a healthy environment and a strong economy go hand in hand. The budget proposes strategic investments in clean technologies and concrete measures to mitigate the causes and effects of climate change.
This budget has three major impacts for Quebec. First, the major transfers will total $21.4 billion in 2016-17, an increase of $1 billion over the previous fiscal year; there is $10 billion through equalization payments, an increase of $509 million over the previous fiscal year; there is $8.3 billion through the Canada health transfer, an increase of $456 million over the previous fiscal year; there is $3.1 billion through the Canada social transfer, an increase of $84 million over the previous fiscal year; and all that is for Quebec.
Second, it promotes French culture. The government will support major national institutions to protect the two official languages, and it will promote industries that showcase Canadian culture. As part of this effort to fulfill CBC/Radio-Canada’s mandate, there is an additional $675 million over five years.
Third, the budget restores the labour-sponsored venture capital corporation tax credit to 15% for stock purchases.
It also contains opportunities that may apply to the riding of Saint-Jean. For cities and municipalities, the budget continues to provide about $3 billion a year in funding for municipal infrastructure projects through the gas tax fund and the incremental GST rebate for municipalities.
For the Saint-Jean CEGEP and the Royal Military College Saint-Jean, it helps universities and colleges to train highly skilled workers, serve as engines of discovery, and support the growth of innovative businesses.
Budget 2016 provides up to $2 billion over three years for strategic projects to improve research and innovation infrastructure. For the Horticulture Research and Development Centre, it includes an investment of $70 million to expand agricultural research and upgrade agricultural research laboratories.
For highway 35 and federal infrastructure, the budget provides $3.4 billion over five years to support the construction, repair, and reconditioning of federal infrastructure assets across the country, including investments in transportation and border infrastructure. This last point is directly related to highway 35.
For the Centre d’aide aux entreprises Haute-Montérégie, the budget enhances the mentoring services, networking opportunities, and business development advice provided by business accelerators and incubators. Budget 2016 states that the government will work with stakeholders to develop a performance measurement framework for business accelerators and incubators in Canada.
With regard to the Internet, the budget includes $500 million to extend high-speed Internet access to hundreds of rural and remote communities. This is what the came to Saint-Valentin, the village of love, in the riding of Saint-Jean, to announce.
To manage flooding, the budget proposes to provide up to $19.5 million over five years to the International Joint Commission, to enable Canada to match U.S. funding to study the flooding and the variable water levels and water quality that affect Lake Champlain and the Richelieu River.
With regard to the International de montgolfières de Saint-Jean-sur-Richelieu, the budget allocates $50 million over two years to Destination Canada to strengthen marketing initiatives in important international markets, such as the United States and China.
For management of the canal promenade in Saint-Jean-sur-Richelieu and enhancement of Fort Lennox in Saint-Paul-de-l'Île-aux-Noix, the budget provides for new investment to support the expansion and enhancement of Canada’s protected areas, including national parks and national tourist waterways.
For the churches of Saint-Blaise-sur-Richelieu and L'Acadie, the budget enhances the national historic sites cost-sharing program by providing $20 million over two years to Parks Canada.
In conclusion, our plan is reasonable and affordable. Yes, we are going to close the fiscal year with a deficit. Part of that deficit, $16 billion, derives from the situation we inherited before making our decisions on this budget, and we have invested $13 billion in order to meet our election commitments.
By the end of our first mandate, Canada’s debt-to-GDP ratio will be lower than it is today. This budget gives priority to people and offers Canadians the support they need right now. However we are not talking about the present only, far from it. This is an essential stage that is part of a sustained, strategic effort to restore prosperity and optimism in Canada.
We are looking to the future with confidence, because we are putting in place today the policies that will enable the vast majority of Canadians to benefit from more opportunities in the future, better jobs, communities that are better connected and more environmentally friendly, and more money, which they will be free to use as they see fit.
The people of the riding of Saint-Jean have already begun to reap the benefits of our budget commitments. In the months ahead, we will continue to improve the daily lives of the people there.
We promised to do everything we can to help every Canadian succeed. Budget 2016 is a crucial part of fulfilling our commitments.