INDU Committee Report
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Conservative Party of Canada Dissenting Opinion June 17, 2008 The Conservative Party members put forward the suggestion last fall that the Industry, Science and Technology Committee (“the Committee”) undertake a thorough study of Canada’s service sector. Throughout the duration of the study members of the Committee heard expert witnesses underscore the strength of Canada’s economy, the strength of Canada’s services sector and recommendations as to how both Canada’s economy and services sector can be enhanced. At the completion of this study the Conservative members remained steadfast in their conviction that a highly productive services sector is key to the growth of Canada’s current and future economy, and acknowledge this crucial sector as a significant provider of highly skilled, high paying jobs. Furthermore, the Conservative members would like to sincerely thank all of the witnesses for their excellent submissions and testimonies before the Committee. The Committees recommendations were arrived at after thoughtful deliberation. Our members support the majority of the recommendations, but take issue with two put forward by the Committee. Reinstating GST Rebate for Foreign Visitors: The Government members do not support the recommendation to reinstate the GST Rebate for Foreign Visitors because the Government has replaced that program with the more effective Foreign Conventions and Tour Incentive Program (FCTIP). The Government of Canada responded to the needs of the tourism industry in Budget 2007 by creating the new FCTIP. The Visitor Rebate Program was replaced because the program’s mandate did not enforce a rigorous standard of accountability of taxpayers’ dollars used. Additionally, the program did not effectively increase or enhance Canada as a choice destination as it was designed. The new FCTIP program is a more effective program than the Visitor Rebate Program at promoting tourism and is a better use of taxpayers’ dollars. This new accountable program is aimed at promoting Canada as a choice destination for conferences and tour package travel. Industry Canada and the Secretary of State for Tourism are in continuous dialogue with tourism stakeholders and the Canadian Revenue Agency to ensure that the implimentation of FCTIP meets the needs of the industry. We are encouraged by the positive feedback of stakeholders thus far. Additionally, our Government has fulfilled a key campaign promise of reducing the GST from 7 to 5% during our first mandate. Unlike the previous Liberal Government that promised to eliminate the GST but never acted, this Government has delivered on this key campaign commitment. The general reducation to the GST makes Canada’s pricing of goods and services more internationally competitive. Removing the GST on Books: The Government members strongly support education, educational development, literacy programs and activities, and believe that improving literacy and essential skills are a key part of building Canada’s Knowledge Advantage.That said our Members do not support the recommendation of removing the GST on books because exempting specific items from the broad-based goods and services taxes is not good public policy. Rather than exempting specific items from the GST the most effective way to address low literacy is to partner with the provinces and territories and organizations that deliver these literacy activities to create effective literacy programs that help Canadians in their daily lives and in the work place. While overall Canada has a highly-educated and highly-skilled population, there are still too many Canadians who lack the literacy and essential skills needed for full participation in the workforce and in their daily lives. We can reach many individuals who have low levels of literacy and essential skills through well-designed learning programs that have the workplace as their focus in addition to existing projects focusing on family and community literacy. Accordingly, the Government of Canada created the Office of Literacy and Essential Skills (OLES) in Spring 2007 to provide a national knowledge base of best practices, models and applied research. As well, the Government created a national knowledge base of practical tools and instruments that support and strengthen partnerships in literacy and essential skills programs that will support efforts to create the best-educated, most skilled and most flexible population in the world. The Government of Canada is also investing in effective programs that are enhancing Canadians’ literacy. Under previous Governments literacy rates among new Canadians decreased. This government is making up for this, by adding $28 million this year for the Enhanced Language Training Initiative, which will help new Canadians join the workforce faster. In addition, we have committed $2.6 billion over 2 years for the Aboriginal elementary and secondary education program. In addition to these programs, we are continuing literacy programs or adding new ones, such as:
Furthermore, in a time of limited resources it is important to target literacy assistance to educational institutions because these institutions have the greatest impact assisting Canadians facing literacy challenges. That is why our Government is already providing a GST rebate on books for public libraries, schools, universities, public colleges, municipalities and qualifying charities and non-profit organizations. The cost of the GST rebate on books will be approximately $25 million. Additionally, the 2% cut to the GST will help all Canadians, specifically lower income families and individuals, to offset the costs of literary and educational goods and services. Unlike the previous Liberal government, when our Conservative government said we would cut the GST we meant it. As promised in our first mandate we have lowered the GST to 5%. This is good news for all Canadians.
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