Speech in the House of Commons
October 6, 2009
Supporting the Economic Recovery Act
Mr. Speaker, I am proud to stand in support of the Economic Recovery Act at 2nd Reading.
This Act will not only implement key measures in Canada's Economic Action Plan, but other related, vital economic proposals to further secure a strong recovery and protect Canadian jobs.
I am disappointed the Liberal Members have already decided to vote against this important legislation - even before reading it - to support their obsession with forcing an unnecessary election. Again deciding to place partisan self interest ahead of what's best for the Canadian economy.
I remind the Liberal Members that we are in the midst of a global economic crisis unprecedented in recent history; one that only a month ago was feared could potentially match the Great Depression in both scale and scope. While Canada entered the global recession in among the strongest positions in the world, we were not immune -and Canadians have felt the pain of these challenging economic times. But they can be optimistic moving forward because our collective strengths make a robust recovery more likely. As RBC Economist Patricia Croft noted earlier this year, "this is not a made-in-Canada recession … but because we're a small open economy we've been caught up … But I do think there's reasons to be hopeful … there's a great story to tell about Canada in that we may come out of this recession much stronger than our global counterparts."
It was against this backdrop that our Government tabled the earliest budget in Canada's history, Canada's Economic Action Plan.
In tandem with our global partners, we took unprecedented action and made a deliberate decision to run short-term deficits; action through timely, targeted, and temporary spending to protect and stimulate the Canadian economy.
As a result of the coordinated and unprecedented global cooperation, the potential global Great Depression was adverted.
As TD Bank economist Don Drummond noted: "we're just past the one-year mark of (the collapse of) Lehman Brothers, and remember all the talk that was being thrown around at that time of the Great Depression? Yet here we are one year later and we've got evidence that virtually every country in the world is going to have reasonable growth in the third quarter, and some of the emerging economies are quite strong."
Or as the G-20 Leaders' Statement at the recent Pittsburgh Summit proclaimed: "We confronted the greatest challenge to the world economy in our generation. Global output was contracting at pace not seen since the 1930s. Trade was plummeting. Jobs were disappearing rapidly. Our people worried that the world was on the edge of a depression. At that time, our countries agreed to do everything necessary to ensure recovery, to repair our financial systems and to maintain the global flow of capital. It worked. Our forceful response helped stop the dangerous, sharp decline in global activity and stabilize financial markets. Industrial output is now rising in nearly all our economies. International trade is starting to recover. Our financial institutions are raising needed capital, financial markets are showing a willingness to invest and lend, and confidence has improved."
But while the G-20 Leaders' Statement noted the early signs of a global recovery, it cautioned that victory is not yet assured - and I quote: "A sense of normalcy should not lead to complacency. The process of recovery and repair remains incomplete … The conditions for a recovery of private demand are not yet fully in place. We cannot rest until the global economy is restored to full health."
That's why our Conservative Government remains committed to implementing Canada's Economic Action Plan, focussing on the economy as our number one priority. Canada's Economic Action Plan is getting results. It is stimulating the economy, and protecting and creating jobs. But while we have made great progress, there is still more to do. We must stay on course on the economy, staying on course in implementing the Economic Action Plan. Doing anything else would be reckless and irresponsible. Not everyone agrees. Take for example Liberal Party HQ. The Liberal leader is trying to force an unnecessary and opportunistic election. They want an election which is not in the country's best interests - an election that would jeopardize Canada's economic recovery, and action that would meet the very definition of reckless and irresponsible.
Since we introduced Canada's Economic Action Plan, our Conservative Government has been tirelessly working on getting money out the door. By June, 80% of measures from the Plan were being implemented. And by September, fully 90 per cent of the 2009-10 stimulus funding was committed.
Mr. Speaker, this is an extraordinary achievement, and the results are being felt in our economy.
Canadians are paying lower taxes. Every time Canadians buy something or look at their pay stubs they are seeing reduced taxes. Unlike the opposition, we don't believe Canadians should pay more taxes. Unlike the Liberal Leader, we do not believe that we will have to raise taxes. We don't believe, as the Liberal leader told a stunned Cambridge Chamber of Commerce audience this past spring, that during a recession - and I quote - "federal taxes must go up … we will have to raise taxes."
Our Conservative Government's record is clear: nearly $220 billion in overall tax relief since taking office in 2006. An average Canadian family is seeing over $3,000 in tax savings. Businesses are keeping more of their money to reinvest in their workers and their growth - not bloated bureaucracies in Ottawa. Taxes are at their lowest level in 50 years, and under our Conservative Government they will stay that way.
And we're seeing what a low-tax environment has done to position Canada's economy to compete in the future. We're seeing it in the return of businesses that fled the high-taxes under the former Liberal Government, businesses like one of Canada's most iconic: Tim Hortons. In the words of the CFO of Tim Hortons: "(Moving to Canada) will help Tim Hortons take advantage of lower Canadian tax rates. Lower tax rates help (Tim Hortons) and companies like us keep more capital at work and achieve our priority in reinvesting in the business for future growth."
That is good news for Canada and Canadian businesses. Even a few prominent Liberals have reluctantly admitted that. Listen to what Britt Dysart, president of the New Brunswick Liberal Association had to say: "lower taxes do matter when it comes to economic development, jobs, population growth, and other good things. In tough economic times, lower taxes matter more than ever as well-established companies such as Tim Hortons decide what locations are best-suited for them and their employees … Like the businesses they work for, skilled workers gravitate to where taxes are lower … Lower taxes work."
Bu the good news doesn't stop there.
Over 4,000 infrastructure and housing projects have already begun. Whether it is funding for wind energy in Prince Edward Island, a nursing residence in remote communities in northern Manitoba, much-needed social housing in Whitehorse, or a new ring road for Edmonton, shovels are in the ground and Canadians are hard at work building and renewing this country.
Workers are receiving needed re-training. At least 44,000 Canadians are receiving training through funds flowing to the provinces and territories. In addition, more than 4,300 young Canadians are obtaining valuable skilled trades with the help of the $2,000 Apprenticeship Completion Grant.
Colleges and universities are being renewed with $2 billion through the Knowledge Infrastructure Program. Projects are already underway such as the University of Windsor's Centre for Engineering Innovation. These investments are providing much needed stimulus today while building Canada's knowledge advantage in the future.
Access to financing has improved sharply. Over $131 billion in financing support has helped Canadian businesses and consumers get the loans they need. Our quick actions in providing financing during the last federal election helped Canada through the worst of the economic recession. By borrowing at commercial rates we have protected taxpayers and expect a small rate of return from our investments.
All encouraging signs our Plan is helping Canada recover from this global economic recession. Indeed, we now expect the Economic Action Plan will create or maintain 220,000 jobs by the end of 2010. But this isn't all. On top of the 220,000 jobs forecasted to be created or maintained, an additional 160,000 plus Canadians are benefitting from work-sharing agreements. A forecast largely supported by the independent and impartial OECD, who recently declared - and I quote - "Canada's fiscal stimulus package should have a relatively large effect in stemming job losses."
While these encouraging signs are welcomed, we again must temper our remarks by noting the underlying reality that the recovery is fragile. More work is needed to ensure we do not fall back into economic turmoil. Again, now is not the time to stop providing stimulus for the economy. Now is not the time to jeopardize our recovery with an unnecessary, opportunistic election.
I trust it is becoming clear to the members of this House, Mr Speaker, that the Economic Recovery Act is an important extension of Canada's Economic Action Plan that will implement key measures to help secure a strong recovery and continue to protect Canadian jobs.
I have followed closely the comments of many of my learned colleagues who have spoken to this Act already, but I do want to highlight a number of the measures of importance to Canadians, and to the people I represent in my riding. Among such measures: the Home Renovation Tax Credit or HRTC. The HRTC provides up to $1,350 in tax relief to encourage Canadians to invest in their most precious asset - their homes. This measure has been a resounding success across the country. But don't take my word for it, listen to the words of a recent Ottawa Citizen editorial that highlights how effective the HRTC has been: "(HRTC) has turned out be effective and smart … Even the quietest streets roar with hammers and saws … This is keeping construction workers employed who, in turn, spend money that keeps others employed. Home centres and hardware stores are humming … helping the construction industry was exactly the right thing to do. Credit where credit is due, when it comes to the reno credit"
The Economic Recovery Act also implements the First-Time Home Buyers' Tax Credit that will provide tax relief of up to $750 on the purchase of a new home - helping stimulate the housing sector by making it easier for young Canadians to buy their first home. This $750 saved will go back into the pockets of ordinary Canadians who can then use it to fund their priorities.
The Economic Recovery Act will also enhance benefits under the Working Income Tax Benefit, which will effectively double the total tax relief provided by this measure. These enhanced benefits will provide additional income support for low-income working Canadians and help ensure that more Canadians are financially better off by getting a job.
Many have praised this important tax initiative for assisting low-income Canadians get over the 'welfare wall.' In the words of the OECD, "recent moves to increase the generosity of Canada's Working Income Tax Benefit are welcome, particularly given that the benefit is strongly targeted to the lowest-income households."
These are but a few of the measures protected through the Economic Recovery Act, along with the others I haven't mentioned further measures include - and Mr Speaker, the Liberals plan on voting against all of this:
All of these measures are necessary measures to help Canada combat this economic recession.
Mr. Speaker, we are achieving results. Canada is on track to lead the world's leading economies out of the recession. The IMF says our economic expansion in 2010 will be stronger than all others in the G7, stronger than the United States, Japan, Germany, Britain, France and Italy. As the French Finance Minister Christine Lagarde recently said: "I think … we can be inspired by … the Canadian situation. There were some people who said, 'I want to be Canadian.'"
While Canada is doing better than our international peers we must not be complacent. Our economy remains fragile. Instead of thinking about what is best for the Canadian economy, the Liberal Party of Canada is trying to force an opportunistic election by voting against the Economic Recovery Act.
Voting against the First-Time Homebuyers tax credit to help young families; against the expanded WITB to help low-income Canadians; shamefully voting against the Home Renovation Tax Credit; and against much more.
Mr. Speaker, it's shameful. It's disappointing for Canadians following at home, and disheartening to my colleagues on this side of the aisle.
While our Conservative Government's policies have helped our economy and put Canadians back to work, the Liberal Party is trying to force an election that will jeopardize our economic recovery.
We must stay the course. Through you Mr Speaker, I urge Parliament to support the Economic Recovery Act - and support Canada's economic recovery.
Thank you.
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