FINA Committee Report

DISSENTING OPINION OF THE BLOC QUÉBÉCOIS

The Bloc Québécois cannot fully support the recommendations of the report on the pre-budget consultations of the Standing Committee on Finance. A number of recommendations quite simply encroach upon provincial areas of jurisdiction, such as health, education and fighting poverty. And the report recommends once again as it did ten years ago that a Canadian securities commission be created, which is completely unacceptable to Quebec. Some important and fundamental elements are omitted from the Committee’s report. By providing this dissenting opinion, we wish to correct these omissions and highlight the real priorities of Quebeckers and Canadians.

1.     FISCAL IMBALANCE

Many people consider that the fiscal imbalance must be addressed by a new division of fiscal responsibilities. Fiscal rebalancing would give the Government of Quebec and that of the other provinces autonomous, stable and predictable revenue that is essential for sound management and for maintaining a balanced budget without compromising the federal government’s balanced budget.

2.     SOCIAL PROGRAMS AND EDUCATION

The witnesses we consulted would like the federal government to increase its contribution to social programs and education to 25% of the cost of these systems. In addition, students would like to see certain tax measures, such as tax exempt status for scholarships and other more specific measures.

3.     EMPLOYMENT INSURANCE, PARENTAL LEAVE AND OTHER MEASURES

The proposals we heard during the hearings are consistent with the conclusions of the unanimous report tabled in May 2001 by the Standing Committee on Human Resources Development, as well as the latest work by unions, the Coalition des Sans-Chemises [Coalition of the Shirtless] and the Bloc Québécois (eligibility starting at 360 hours for everyone, maximum duration of benefits 50 weeks). Moreover, the were calls for the creation of a separate employment insurance fund, the abolition of the clause discriminating against newcomers, the establishment of a new POWA, delivering on the promise to transfer the parental leave amounts to Quebec and finally tax cuts for persons with low and moderate incomes.

4.     SOCIAL HOUSING AND DAYCARE

The federal government should allocate 1% of its expenditures to the construction of social housing, which would amount to close to $2 billion per year. The surpluses posted by CMHC could go toward this investment. Moreover, with respect to daycare, the various groups called upon the federal government to unconditionally transfer to Quebec the amounts set out in its national daycare program and to correct the injustice to Quebec with respect to the loss of tax credits and tax deductions for Quebec parents. The GST on diapers should also be eliminated to help families.

5.     SENIORS

The various groups that spoke out during the tour called upon the federal government to intensify its efforts to ensure that seniors receive their share of the guaranteed income supplement and any retroactive amounts that some of them are entitled to. There are also calls to completely index old age pensions and the guaranteed income supplement to the cost of living, and to review them in consideration of the low income cutoff.

6.     CULTURE

The various arts groups called for the cancellation of cuts and reinvestment in the budgets of various organizations such as the Canada Council for the Arts, Telefilm Canada, the Canada Television Fund, and the Canadian Broadcasting Corporation. The Committee report reflects these issues, but omits an important recommendation from the publishing world to eliminate the GST on books.

7.     AGRICULTURE

There are calls for reinvestment in agriculture in accordance with Quebec’s areas of jurisdiction and programs until the price of agricultural products returns to a level that would allow farmers to make a decent living. Similarly, there are calls for tax measures and incentives, the return of land in Mirabel and federal participation in setting a price floor and in purchasing a slaughterhouse for culled cows.

8.     REGIONAL DEVELOPMENT

The stakeholders we consulted demanded that the federal government increase funding to the regions and transfer the Quebec budget of Economic Development Canada to the Government of Quebec. Moreover, stakeholders are calling upon the federal government to introduce a clause requiring programs to be tailored to the specific rural regions of Quebec. There are also calls for universal telephone and high-speed Internet access, as well as support for the airline and shipping industries.

9.     DEVELOPMENT OF INDUSTRY

The various groups we met during the tour would like to see a substantial increase in federal investment in Technology Partnerships Canada. A number of stakeholders also suggested a loan guarantee program, better support to the lumber industry, sectoral policies for the shipping and airline industries and proactive measures to attract international investors and experts in the pharmaceutical sector.

10.   IMMIGRATION

The various groups we met during the tour are seeking significant improvements in Immigration Canada’s efficiency in processing refugee claims and an additional transfer of $100 million per year to support Quebec’s intake and integration efforts, as well as the establishment of the refugee appeals section as soon as possible.

11.   INFRASTRUCTURE AND TRANSPORTATION

The various groups we met during the tour called on the federal government to significantly increase its contributions to municipal, strategic and rural infrastructure programs, and to make these contributions recurring, while respecting Quebec’s areas of jurisdiction. A number of people would like to see the federal gas tax that is to be transferred to the municipalities go through the Government of Quebec, which would then negotiate the allocation criteria with the municipalities. Moreover, there are calls for a bill to make public transit passes tax deductible and questions about the appropriateness of making parking fees deductible, as this only encourages people to use personal vehicles.

12.   INTERNATIONAL AID

The stakeholders we consulted were unanimous in demanding that the federal government implement a plan in 2005 in order to achieve the UN target of spending 7% of GDP on international aid by 2015.

13.   CONTROL OF OPERATING EXPENDITURES

The various stakeholders all agreed that the federal government should strive to eliminate needless and inappropriate operating expenditures, most of which are in provincial areas of jurisdiction.

14.   SUPPORT FOR EVENTS

The various stakeholders we consulted called upon the federal government to create a new support program that it would manage, without third-party input, as was the case with the communication agencies. It was also agreed that the government should establish very specific criteria and rigorous monitoring to prevent another sponsorship scandal.

15.   AMENDMENT OF THE INCOME TAX ACT

The paramedics’ association of Canada called for the government to amend the Income Tax Act so that paramedics would be deemed public safety workers for the purposes of unreduced early retirement benefits. Moreover, the government should examine all health and public safety professions in order to determine what other groups might be eligible.

For further details about these demands as regards the next budget, please refer to the brief tabled by the Bloc Québécois to the Standing Committee on Finance in November 2004.