CANADA VOLUME 135 S NUMBER 079 S 1st SESSION S 36th PARLIAMENT OFFICIAL REPORT (HANSARD) Tuesday, March 24, 1998 Speaker: The Honourable Gilbert Parent CONTENTS (Table of Contents appears at back of this issue.) All parliamentary publications are available on the ``Parliamentary Internet Parlementaire'' at the following address: http://www.parl.gc.ca 5243 HOUSE OF COMMONS Tuesday, March 24, 1998 The House met at 10 a.m. Many Canadians are looking for this bill so that gasoline and oil companies will stop the gouging of consumers, business people and _______________ farmers in Canada. Prayers (Motions deemed adopted, bill read the first time and printed) _______________ * * * PETITIONS ROUTINE PROCEEDINGS RIGHTS OF THE UNBORN D (1000) Mr. Gar Knutson (Elgin—Middlesex—London, Lib.): Mr. [Translation] Speaker, it gives me great pleasure to present a petition signed by 100 constituents of my riding. GOVERNMENT RESPONSE TO PETITIONS The petitioners pray that Parliament act immediately to extend Mr. Peter Adams (Parliamentary Secretary to Leader of the protection to the unborn child by amending the Criminal Code to Government in the House of Commons, Lib.): Mr. Speaker, extend the same protection enjoyed by born human beings to pursuant to Standing Order 36(8), I have the honour to table, in unborn human beings. both official languages, the government’s response to eight peti- tions. * * * [Translation] * * * [English] QUESTIONS ON THE ORDER PAPER Mr. Peter Adams (Parliamentary Secretary to Leader of the ENERGY PRICE COMMISSION ACT Government in the House of Commons, Lib.): Mr. Speaker, I ask Mr. John Solomon (Regina—Lumsden—Lake Centre, NDP): that all questions be allowed to stand. moved for leave to introduce Bill C-384, an act respecting the The Deputy Speaker: Is that agreed? Energy Price Commission. Some hon. members: Agreed. D (1005) He said: Mr. Speaker, it is my pleasure to introduce in the House _____________________________________________ today a bill to establish the Energy Price Commission. This bill will establish a commission to regulate the wholesale and retail GOVERNMENT ORDERS price of gasoline. The purpose of price regulation is to avoid unreasonable increases which affect the cost of living and depress [English] business activity. BUDGET IMPLEMENTATION ACT, 1998 The bill will facilitate reasonable consistency in prices from province to province, allowing for production and distribution Hon. Raymond Chan (for the Minister of Finance) moved costs. that Bill C-36, an act to implement certain provisions of the budget tabled in Parliament on February 24, 1998, be read the second time The regulations will further minimize the risk of collusion in and referred to a committee. pricing and will prevent dominant suppliers from setting unreason- able prices. Mr. Tony Valeri (Parliamentary Secretary to Minister of Finance, Lib.): Mr. Speaker, I would like to take a few moments to The bill links the issue of price control to competition. Any speak on behalf of the government in support of Bill C-36. investigation of an alleged offence under the Competition Act which is related to gasoline pricing will be remitted by the The proposed legislation contains some very important provi- competition tribunal to the commission for investigation, and the sions that will help build a strong economy and a strong society, commission will report to the tribunal before it makes a determina- goals which this government has pursued since coming to office in tion or order on the matter. 1993. 5244 COMMONS DEBATES March 24, 1998 Government Orders We have pursued these goals first and foremost by getting our measures in each of our previous budgets. For now these measures fiscal house in order. The federal books will be balanced this year are modest because the so-called fiscal dividend that makes them for the first time since 1970 and we will balance the budget next possible is still modest. But even so, 90% of all taxpayers will get year and the year after that for the first time in almost 50 years. some degree of personal income tax relief from our recent budget. It will be the first time in almost 50 years that Canadians will see three consecutive balanced budgets. Some 400,000 low income Canadians will be taken off the tax rolls entirely. As our financial resources permit we will broaden tax Our commitment to fiscal responsibility, to putting an end to relief in future budgets. credit card government, does not end there. We will reduce Canada’s debt burden through a two-front strategy of stronger economic growth and a concrete debt repayment plan. Of course, some would argue that the dividends should go only to reducing debt and cutting taxes. In my view this would be shortsighted and, quite frankly, bad economics. We recognize that What we will do is take the same approach to the debt that we the private sector is the engine of job creation, but government too have successfully used against the deficit since 1993. We took the has a responsibility to provide leadership in the economy. deficit down step by step. The same incremental approach will, year by year, steadily reduce the debt burden. To meet that responsibility we are putting the fiscal dividend to We intend to keep the debt to GDP ratio on a permanent work by increasing our investments in access to education, in skills downward slide using a two-track strategy, a strategy of supporting development, in low income families with children and in health economic growth and reducing the actual level of the debt. care. This means that we will continue to present fiscal plans based on For example, in last month’s budget we unveiled the Canadian prudent economic planning assumptions. Let me say that most opportunities strategy. It is a co-ordinated set of measures to budgets fail because they are based on overly optimistic assump- provide Canadians with enhanced access to knowledge, knowledge tions. The consequence is severe. It is lost credibility. and skills for jobs that can deliver a better standard of living for the 21st century. D (1010) In fact, Bill C-36 implements some very important elements of this strategy. For example, it establishes the Canadian millennium In addition to prudent planning assumptions we will continue to scholarship foundation. This arm’s length foundation with an build our plans on a substantial contingency reserve of $3 billion a initial endowment of $2.5 billion will award more than 100,000 year. This is designed to handle unexpected events and to provide scholarships each year over 10 years to full and part time students greater certainty that we will meet our balanced budget targets. across Canada. However, if the contingency reserve is not needed, and in fact it has not been needed in each of the past three years, it will go Scholarships will increase access to post-secondary education directly to paying down the overall stock of debt. for low and middle income Canadians to prepare them for the jobs and knowledge based economy of the 21st century. Where do we expect this prudent approach to budget planning to take us? As the minister of finance said in the 1998 budget speech, ‘‘This investment in the future of our country is the result of our We project that by 1999-2000 the debt to GDP ratio, by our successful battle against the deficit. It is an investment that will pay comprehensive Canadian measurements, will have fallen almost 10 for itself over and over again in the years ahead’’. percentage points from its peak of almost 72% of GDP in 1995-96. If we use the measurement which most other countries use, that The Canada millennium scholarships are, in effect, the largest being the debt held by the public, Canadians’ market debt to GDP single investment ever made by a federal government to support ratio will fall from a peak of almost 59% in 1995-96 to 48.5% by access to post-secondary education for all Canadians. They will be the year 1999-2000. awarded to individuals who need help financing their studies and who demonstrate merit. For full time student scholarships will In fact the Organization for Economic Co-operation and Devel- average $3,000 a year. Individuals will be able to receive up to opment is forecasting that between 1997 and 1999 Canada will $15,000 over a maximum of four academic years of undergraduate have the largest decline in debt burden among the G-7 countries. study. While we must ensure the continuing decline of the debt, we also What this means is that a student receiving a $3,000 scholarship recognize that the tax burden on Canadians is too high and has to be for four years will in fact see his or her student debt load cut by reduced. That is why we have introduced targeted tax relief $12,000, about half of what it otherwise could have been. March 24, 1998 COMMONS DEBATES 5245 Government Orders D (1015) Beginning January 1, 1998 we will provide a grant of 20% on the first $2,000 in annual RESP contributions for children up to age 18. These scholarships are not just for young Canadians at universi- That is $400 of grant money per child that would go directly into an ty. Canadians of all ages studying full or part time in publicly RESP program. With the introduction of this new grant, RESPs will funded universities, community colleges, vocational and technical now be among the most attractive savings vehicles available to institutes, and cégeps will be eligible. Awards will help recipients Canadians for their children’s education. to study away from home, particularly outside their home province. They will also support limited terms of studies in other countries.