November 30, 1979

LIB

Joseph Jacques Jean Chrétien

Liberal

Mr. Chretien:

Mr. Speaker, in light of the statement made by the Minister of Finance in New York, can the Prime Minister explain to the Canadian public why on the order paper of this House at this moment there is legislation for tax cuts, that we are being called upon in this House at this moment to pass a tax cut on mortgage deductibility which will apply only to a small section of the Canadian population and, unfortunately, not the poor ones?

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
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?

Some hon. Members:

Hear, hear!

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
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PC

Charles Joseph Clark (Prime Minister)

Progressive Conservative

Mr. Clark:

Mr. Speaker, 1 think the view of the Liberal party is well known, that the tax credit and that aid to Canadians who own or want to own a home is not something that they can support. We believe that it is something that is important; that it is a priority, now, in the nation. I hope that members opposite will change their minds and will give support to this measure which will be of such help to so many Canadians.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
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LIB

Joseph Jacques Jean Chrétien

Liberal

Mr. Chretien:

Mr. Speaker, I would like to ask the Prime Minister a supplementary question. In light of the very serious statement made by the Minister of Finance, to the effect that the Canadian economy could not stand any tax cut at this moment, is it the intention of the Prime Minister to be serious in this situation and give confidence to the people that the Canadian economy is well managed and take the responsible step at this moment and withdraw the bill that is before this House?

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
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?

Some hon. Members:

Shame.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
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?

Some hon. Members:

Oh, oh!

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
Permalink
PC

Charles Joseph Clark (Prime Minister)

Progressive Conservative

Mr. Clark:

Mr. Speaker, if the hon. member wants to defeat legislation in this House, he will have to call upon his colleagues to attend here, and not ask the government to withdraw measures that we consider to be important.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
Permalink
?

Some hon. Members:

Oh, oh!

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
Permalink
PC

Charles Joseph Clark (Prime Minister)

Progressive Conservative

Mr. Clark:

Our view is the tax credit measure is of importance to the people of Canada now. We intend to carry it forward. May I address the other part of the hon. member's question. We have directed our actions since we were elected on May 22 precisely to creating the kind of confidence among investors outside this country, and Canadians inside this country, that there is now in Ottawa-as distinct from the situation prior to May 22-a government that takes seriously its responsibility to manage the Canadian economy.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
Permalink
?

Some hon. Members:

Hear, hear!

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
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LIB

John Leslie Evans

Liberal

Mr. John Evans (Ottawa Centre):

Mr. Speaker, 1 would like to pursue this question a bit further at this point. Last night the Minister of Finance said that any tax cuts at this point in time-he was talking of tax cuts of the same magnitude as the mortgage interest and property tax credit plan-would be ruinous to the economy. I would like to know from the Prime

Minister if the Minister of Finance was expressing a philosophy that this government is going to be concerned with giving tax relief to the better-off in our society while saying be damned to the rest.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
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PC

Charles Joseph Clark (Prime Minister)

Progressive Conservative

Mr. Clark:

Of course not, Mr. Speaker.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
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LIB

John Leslie Evans

Liberal

Mr. Evans:

Mr. Speaker, last night the Minister of Finance indicated the exact and precise figures on the adverse impact of inflation, balance of payments, current account and the budget deficit of an across-the-board tax cut. We asked the same questions with regard to Bill C-20, and we could not get those figures. In fact, he said it would be good for the economy.

I would like to know if we are going to be asked, in the House, to pass a bill which is going to have exactly the same effects on the economy as those described by the Minister of Finance last night in New York with regard to across-the-board tax cuts for all Canadians.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
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PC

Charles Joseph Clark (Prime Minister)

Progressive Conservative

Mr. Clark:

Mr. Speaker, it should be clear to the House that the statements made by the Minister of Finance last night were directed at the effect of new initiatives the government might take. The tax credit initiative is clearly proposed in Parliament. It is clearly in the range of intentions of this government. It is a matter we hope to have brought to a vote and to a conclusion very quickly. We hope there will not be tactics adopted on the other side that will stop Canadians being able to take advantage of this program next year.

The Minister of Finance indicated that, in large measure as a result of the failure of the former government to deal with the serious problems of economic management in this country, it is not open to us now to contemplate more significant tax cuts in the new budget.

Topic:   ORAL QUESTION PERIOD
Subtopic:   FINANCE
Sub-subtopic:   THE BUDGET-TAX PROVISIONS
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USE OF ADDITIONAL PROFITS OF OIL MULTINATIONALS FOR DEVELOPMENT OF RESOURCES

NDP

Reginald Cyril Symes

New Democratic Party

Mr. Cyril Symes (Sault Ste. Marie):

Mr. Speaker, my question is for the Minister of Energy, Mines and Resources. In view of the discussions between the Government of Canada and Alberta over oil pricing which would, according to the government's own figures-of which I have a copy here-give the oil companies about $37 billion over the next four years, can the minister give us any guarantee that this enormous amount paid by Canadian consumers will be used for the development of petroleum resources in Canada?

Topic:   ORAL QUESTION PERIOD
Subtopic:   USE OF ADDITIONAL PROFITS OF OIL MULTINATIONALS FOR DEVELOPMENT OF RESOURCES
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PC

Ramon John Hnatyshyn (Minister of Energy, Mines and Resources)

Progressive Conservative

Hon. Ray Hnatyshyn (Minister of Energy, Mines and Resources):

Mr. Speaker, 1 do not know what document the hon. member has. I suppose it is one lent to him by the leader of his party. All 1 can say is that the government will ensure that we have sufficient funds to carry out our very exciting national energy projects in this country and ensure that the resources come on the basis of a taxation scheme that is fair and equitable.

November 30, 1979

Topic:   ORAL QUESTION PERIOD
Subtopic:   USE OF ADDITIONAL PROFITS OF OIL MULTINATIONALS FOR DEVELOPMENT OF RESOURCES
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NDP

Reginald Cyril Symes

New Democratic Party

Mr. Symes:

Mr. Speaker, I was asking about guarantees that this money will be invested in Canada. I did not get an answer. The minister's own department's survey of the industry released yesterday shows that for the two-year period 1977-78 the industry spent some $1.8 billion for diversification, acquisition of other companies, as well as investment outside Canada, and since the report states, "Such expenditures contribute little if anything to the near-term development of Canada's petroleum resource potential and could represent a drain on the total funds available to further supply objectives", I would like to ask the minister what mechanisms he will put in place to stop this practice.

Topic:   ORAL QUESTION PERIOD
Subtopic:   USE OF ADDITIONAL PROFITS OF OIL MULTINATIONALS FOR DEVELOPMENT OF RESOURCES
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PC

Ramon John Hnatyshyn (Minister of Energy, Mines and Resources)

Progressive Conservative

Mr. Hnatyshyn:

Mr. Speaker, the hon. member refers to the monitoring act which brings to the light of day information with respect to the activities of the petroleum industry in Canada. I take it what the hon. member is suggesting is that there be restrictions with respect to the flow of capital outside Canada. I also take it he is, in effect, saying that Petro-Canada should not be investing in the North Sea, Spain and off Vietnam.

Topic:   ORAL QUESTION PERIOD
Subtopic:   USE OF ADDITIONAL PROFITS OF OIL MULTINATIONALS FOR DEVELOPMENT OF RESOURCES
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NDP

Reginald Cyril Symes

New Democratic Party

Mr. Symes:

Again the minister avoids the obvious problem. Consumers are paying the higher costs, and that money is not all being reinvested in Canada. Given the conclusion in his department's report which states, "If these patterns persist, there is a possibility that the structure of Canada's resource sector could within a decade or two be characterized by a handful of large resource conglomerates, most of which are foreign owned and controlled", is the government prepared to introduce legislation like that which exists in the United States which would prohibit such acquisition and diversification?

Topic:   ORAL QUESTION PERIOD
Subtopic:   USE OF ADDITIONAL PROFITS OF OIL MULTINATIONALS FOR DEVELOPMENT OF RESOURCES
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November 30, 1979