FINA Committee Meeting

The Standing Committee on Finance met at 3:35 p.m. this day, in Room 213, Wellington Building, the Chair, Rob Merrifield, presiding.

By unanimous consent, it was agreed, — To supersede the vote on Paul Crête's motion of January 28, 2008.

By unanimous consent, the Committee reconsidered the motion of Paul Crête previously adopted which read as follows: That the Committee recommend to the government, in view of the serious crisis in the forestry and manufacturing sectors, that it implement without delay an improved assistance plan for the forestry and manufacturing sectors, including $500 million to restore Technology Partnerships Canada; $1.5 billion in reimbursable contributions to allow companies to purchase new equipment; a $1 billion diversification fund for the forestry industry, to be administered by Quebec and the provinces and allocated among them based according to the size of their forestry industry; $1.5 billion in support measures for workers affected by the crisis, including $60 million for an income support program for senior workers and a $1.44 billion reserve for the employment insurance fund to be placed in a special fund until an independent fund is created; and that the adoption of this motion be reported to the House at the earliest opportunity.

By unanimous consent, it was agreed, — That the Committee would hear representatives of the Finance Department on this motion before retaking the vote.

Rick Dykstra moved, — Whereas the objective of tax policy should be to collect sufficient revenue to provide required services in the least costly manner. Whereas a need to improve Canada’s competitive performance has been identified. Whereas the global economy requires Canada’s tax policy remain competitive,

Therefore, the Standing Committee on Finance should undertake a comprehensive study on all issues related to taxation including, but not limited to:

• A comparison examination of tax policy with other jurisdictions

• Personal income taxes (including the treatment of capital gains)

• Corporate taxes (including the treatment of dividends paid and received)

• Consumption and excise taxes

• Import tariffs

• Withholding taxes to and from non-residents and ensuring consistency with all tax treaties.

Paul Crête moved, — the following amendments: That the Committee also consider the following issues.

Paul Crête moved, — Tax credits for research and development.

The question was put on the amendment of Paul Crête and it was negatived, by a show of hands: YEAS: 3; NAYS: 5.

Paul Crête moved, — Tax assistance measures for resource regions.

The question was put on the amendment of Paul Crête and it was negatived, by a show of hands: YEAS: 3; NAYS: 6.

Paul Crête moved, — The replacement of federal cash transfers to the provinces with an equivalent transfer of tax room.

The question was put on the amendment of Paul Crête and it was negatived, by a show of hands: YEAS: 2; NAYS: 7.

Paul Crête moved, — The impact of an equalization reform that includes 100% of natural resource revenues on the fiscal capacity of the provinces.

The question was put on the amendment of Paul Crête and it was negatived, by a show of hands: YEAS: 2; NAYS: 7.

Paul Crête moved, — Tax measures to reduce the disparity between east-west growth.

The question was put on the amendment of Paul Crête and it was negatived, by a show of hands: YEAS: 2; NAYS: 7.

By unanimous consent, after debate, the question was put on the motion and it was agreed to.

At 3:53 p.m., the sitting was suspended.

At 3:53 p.m., the sitting resumed.

At 5:31 p.m., the Committee adjourned to the call of the Chair.