Hon. Alfonso Gagliano (Minister of Public Works and Government Services, Lib.)

Mr. Speaker, I would like to inform the hon. member and the House that negotiations resumed yesterday and are still under way between Canada Post and the postal workers' union. I can state that these are progressing well and I would like to give them a chance.

The hon. member can, therefore, be glad that negotiations are under way. We trust that they will continue, and that a settlement will soon be negotiated.

Mr. Réjean Lefebvre (Champlain, BQ)

Mr. Speaker, is the real scenario the government wants to see not a general strike it could settle promptly through special legislation, as the minister let slip late this past summer?

Hon. Alfonso Gagliano (Minister of Public Works and Government Services, Lib.)

Mr. Speaker, the wish of the government, and of all Canadians I believe, is for a settlement to be negotiated, and we hope to have one as soon as possible.

Mr. Jason Kenney (Calgary Southeast, Ref.)

Mr. Speaker, yesterday the tax department released its 1994-95 report which confirmed that in that year alone income taxes paid by the average taxpayer went up by 10%. That is largely because the government has kept in place Brian Mulroney's hidden tax grab called bracket creep, which the OECD says is hammering our economy.

Since the finance minister will not commit to broad based tax relief, will the Prime Minister commit to stop raising taxes through the hidden tax grab called bracket creep?

Hon. Jim Peterson (Secretary of State (International Financial Institutions), Lib.)

Mr. Speaker, members on this side of the House are very familiar with the fact that our income taxes are very high. When we have the appropriate measures—

Hear, hear.

Hon. Jim Peterson

I am very pleased that we have taken a step by not bringing in wholesale tax cuts in the way the opposition wanted. That would have put our fiscal deficit out of reach. We have done the responsible thing and we will introduce a tax cut only when it can be sustained—

The hon. member for Calgary Southeast.

Mr. Jason Kenney (Calgary Southeast, Ref.)

Mr. Speaker, we are glad to finally hear that admission. The problem is that Canadians are suffering because of a tax burden which is getting higher every year.

It is not a question of cutting taxes. It is a question of not raising taxes any more under bracket creep. When will the Minister of Finance or the Prime Minister stop this destructive tax on inflation, or will they continue to be known by Canadians as the bracket creeps?

Hon. Jim Peterson (Secretary of State (International Financial Institutions), Lib.)

Mr. Speaker, we will work in a responsible way to bring down taxes because we know that Canada of all G-7 countries has one of the highest rates of personal income tax. We will not sacrifice our efforts to reduce the deficit and to bring down our debt just because this party is calling for a tax cut.

This is a party that has called for getting rid of the GST. This is a party that is calling for cutting payroll taxes. This is a party that is calling for the cutting of CPP premiums. We have to be responsible—

The hon. member for Rosemont.

Mr. Bernard Bigras (Rosemont, BQ)

Mr. Speaker, my question is for the Prime Minister.

While environmental groups have unanimously condemned the Regina agreement and cited the position taken by Quebec as an example, the president of the Canadian Association of Petroleum Producers, for his part, said that it was the best agreement his association could have hoped for.

Will the Prime Minister admit that his position is the best proof that his government has caved in to the petroleum lobby and to its representative, the Reform Party?

Right Hon. Jean Chrétien (Prime Minister, Lib.)

Mr. Speaker, I would like to reply to this question because it is the first time we have managed to reach an agreement with the provinces. The provinces said that the Canadian position is a position—

Hon. Jean J. Charest

Without Quebec.

Right Hon. Jean Chrétien

Yes, it is easy for you to say that now. There will be an agreement. This is a position that we are going to defend in Kyoto and that we can improve.

Now we know what the provinces are prepared to do. Rather than impose our views, we tried to reach a consensus with the governments of all provinces—

Except Quebec.

The hon. member for Rosemont.

Mr. Bernard Bigras (Rosemont, BQ)

Mr. Speaker, the Prime Minister had promised a very firm position on the reduction of greenhouse gases. Today, he is content to follow the American position.

Is this not another of the Prime Minister's broken promises?

Right Hon. Jean Chrétien (Prime Minister, Lib.)

Mr. Speaker, we consulted the provinces. We have not taken a final position yet, but we are very happy to see that the provinces realize that there is a problem and that they will have to work with the federal government.

We are continuing our consultations with other governments and we hope to have an agreement in Kyoto signed by the Europeans and the Americans. We also hope that the third world will want to be part of any agreement, because atmospheric problems concern developing, as well as developed, countries.

Mrs. Diane Ablonczy (Calgary—Nose Hill, Ref.)

Mr. Speaker, today it is the Canadian Taxpayers' Federation blasting the mess the Liberals are making of CPP reform. Forty-eight billion extra dollars will be snatched out of the pockets of Canadians between 1997 and 2003. That amounts to over $3,000 in new CPP taxes per working Canadian.

Is taking more to deliver less the minister's idea of retirement security for Canadians?