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Speech by Liberal Leader Bob Rae in response to the budget

Posted on June 8, 2011

Mr. Speaker, I appreciate the opportunity to participate in this debate. In doing so, I also take the chance to thank the good people of Toronto Centre who have seen the wisdom of returning me to this place once again. This has been my 11th meeting with the voters, both federally and provincially, and I am very proud of the fact that I have managed to achieve this point in my life and have been able to receive the confidence of a great many people.

I think of my own constituency and we all do when we talk about budgets. I think of a constituency that probably has some of the wealthiest people in the country living in it; some of the most successful entrepreneurs, younger couples who are achieving great success, people who are doing very well in their lives and see great opportunities for themselves and for their families.

At the same time, Toronto Centre happens to have the largest amount of social housing in the country, as the Leader of the Opposition will well know because of his work municipally. It has a vast and considerable population of homeless people. It also has a number of people who fall somewhere into the middle of that group. So, we have the richest and the poorest and we have the people in between.

The essential message that I bring to the House and to the people of Canada about this budget is that it is not a budget for everyone. It is not a budget that brings Canadians together. It is not a budget for one Canada. It is a budget that focuses on a certain group of people. It does far more for those who are better off than for those who are not. In that sense, it is a budget that fails our vision in the Liberal Party, of being able to talk out of all sides of our mouth at exactly the same time, when we say that the search for prosperity for Canada is exceptionally important and the success of our businesses is exceptionally important.

We have learned the hard way, as a country, what I call the “Billie Holiday maxim”. When she was asked what was the big lesson she had drawn from her life, she said: “I’ve been rich and I’ve been poor. Rich is better.”

Canada needs to become richer. We need to become more prosperous. In achieving that prosperity, both for individuals and as a country, we become more successful, but we are also more able to share that prosperity and to ensure that everyone is included. Perhaps as much as any member in the House from my time in politics, I have learned a very simple lesson. That is that the water buffalo look at each other very differently when there is no water. We understand that is what can happen in a recession.

When I look at this budget, not only do I see the elements it contains, but I also see what is missing. The budget contains some measures, but there are measures missing. That is essentially the problem with this budget. I also see that this document is permeated by a sentiment that is not good for Canada at this time: complacency. I see complacency in the attitude of the government, which seems to think that, having won a majority, it no longer needs to talk about the needs of all Canadians and that it can concentrate instead on the interests of a few. That is the problem I see.

When we look at what is missing, let me mention three words: the first word is “poverty” and the second two words are “climate change”.

When we look around the world, we see a world that is far more unstable than the one the Conservatives are describing. We see a sovereign debt crisis taking place in Europe, a crisis that has now become infectious and threatens the economic balance of the entire world.

We saw just two years ago, and who among us needs to be reminded of it, that because of the degree of integration of the world financial system, a failure of the banking system in the United States from people making loans to people to whom they should not have been lending money created a world economic crisis that we can now all read about.

We are facing the same risk with respect to the failure, not of a few homeowners or a few thousand homeowners or tens of thousands of homeowners, but of entire countries. None of us should be unaware of this. None of us should be unaware of the difficulties facing our neighbour in the United States with respect to its economic growth and the challenges now facing Japan because of the tragedy of the tsunami.

Therefore, I find that the Conservatives are playing a game in this budget of what I call “let us pretend”. Let us pretend there is no continuing instability in the world economy. Let us pretend there is no poverty in Canada and no challenge of a shared prosperity, which we in the Liberal Party believe is the central challenge of our time. Let us pretend, on behalf of the Conservative Party, that we know what we are doing, that we have a plan.

The finance minister is asserting a very false certainty in his deficit projections. He is pretending that he knows what the deficit will be next year. He is pretending that he knows what it will be two years from now, and then he is pretending that he knows what it will be three years from now.

The trouble is that we remember the Minister of Finance. We remember that he was the one who came into this House in 2008, after the last election, and told Canadians, “Crisis? What crisis? Deficits? What deficits? Problems? What problems?” thereby causing a political crisis that dominated the affairs of this country for two full months, forcing him to a deathbed conversion of saying, “Aha, now we have to do the economic action plan. Now we have to start putting money into the economy. Now we have to start running deficits”.

I heard the Prime Minister and the Minister of Finance talking for a full two years about how vital it was for Canada to run a deficit, how important it was for Canada to take on more debt, that this was a crucial act of national statesmanship. I only wish I had heard those words from the Conservatives around 1990, 1991 and 1992, but I digress.

The only thing missing in the government’s statement and its description of the costs and challenges that we will face is the cost of certain key programs, one of which has been covered by the Leader of the Opposition in his comments, but one of which was not.

The Leader of the Opposition spoke a lot about the cost of the corporate tax cuts, which are in fact a significant bleeding of the fiscal capacity of the Canadian federal government to address the financial problems that all of the country faces.

Our view is that further corporate tax cuts at this time are unnecessary to achieve tax competitiveness, which is a very important objective of public policy but which has gone from becoming something that seemed like a wise course in public policy to becoming an indulgence that we can no longer afford.

However, I want to refer to one other item that is not in the list of things, because it relates to a major debate that we will be having in this country in the fall, and that is the cost of prisons. The government is about to take this country on a course with respect to the reform of the criminal justice system that will repeat every significant error made in the United States and made in Europe, particularly in the U.K., for which those countries are now repenting and seeing the folly and unwisdom of their ways.

The government is pretending as if the simple solution to every act of crime and every misdeed in our society is to simply throw the accused into jail and, essentially, to throw away the key.

The cost of that is going to be borne by every Canadian and the provinces and the municipalities. It ignores the fact that our correctional institutions are about to become the largest mental health institutions in the country.

It is a direction for Canada that is completely unnecessary and that is also going to have devastating impact on the overall economic and social health of the country. I can assure the government that we in the Liberal Party intend to fight these measures every step of the way.

The government speaks a lot about its majority. In fact, I think I heard the phrases “majority mandate”, “mandate” and “majority” at least a hundred times yesterday, and I am sure I will hear it a thousand times before the day is done and before this week or the next three weeks are done.

Let me just remind the House  that forty percent of those who voted have spoken, but that still means that most Canadians are looking elsewhere for leadership. We simply have to understand that reality.

I will come back to that point.

The majority of Canadians do not have the same priorities as the Conservative Party. That is important. We acknowledge the facts: the Conservative Party has a majority in the House, but it does not have a majority in the country. It is difficult for the Conservative Party to accept this reality. In fact, the Conservatives can do as they wish in the House, but they cannot shirk their responsibility to respect public opinion in Canada.

I would like to talk about the options available to Canadians. Throughout the country, a movement that is open to and ready for change recognizes that Canadians want a different kind of politics. This movement believes that the government is there to serve Canadians. It is a popular movement that understands the economic challenges, but that does not believe that the ideologies of the past will help.

We in the Liberal Party believe that public policy should be driven by facts and evidence, not by ideology. Every step of the way we will be challenging those policies coming forward in the House from wherever they come that are not supported by facts and evidence.

We also know that a great majority of Canadians know that poverty and climate change, words that we in this party insist on using, are realities that we want addressed. I would say to the Leader of Opposition that the problem is not just poverty among seniors but among all Canadians. It is poverty among children that is a problem and it is poverty among our aboriginal population that is a problem.

We in the Liberal Party know that Canada’s prosperity cannot be taken for granted. We also know that this is no time for smug or self-satisfied complacency.

When we look at health care and at the issues of crime and social justice that I have talked about and at our tax policies, and, particularly, when we look at the importance of aboriginal issues that have still not been faced up to by the House and Canadians, we must recognize the real and present danger that we are dealing not with one Canada but with two, with those who are in and those who are out; with those who are benefiting from the good things in life and those who are not; those who have a stake, a position and security, and those who have none.

These things are avoidable. As Canadians, we do not have to accept this fate. We can lead the way as a country by saying that we want to set a standard for our country in the world and that we want to be at our best in the world. Yes, we want prosperity. Yes, we want our businesses to succeed. Yes, we want to create a truly progressive entrepreneurial culture in this country. However, we understand full well that it will mean nothing if there are still millions of people unemployed and millions of people living in poverty, and if there are those who go to bed at night in a room with six or seven people who wonder, as the wind is whistling through the windows of an overcrowded house on Big Trout Lake, in their aspirations if there is not a better world and a better place.

We must recognize that despite all of our successes, Canada has the highest suicide rate in the western world. That principally is because there are far too many young Canadians, young teenagers, young aboriginal people in particular, who do not see a way out, who do not see hope and who do not see opportunity.

As we reflect on our budgets, they are not just about what businesses or the chamber of commerce think. A budget is not just there for taxpayers, even successful taxpayers, but a budget is there for every single Canadian, whether homeless or with a home, whether on the street or in the most comfortable place, whether living in rural Canada or urban Canada

The definition of a good politics is a politics that brings everyone together. When I look at the budget, I see a consistent politics that tries to divide, that tries to separate, that says the government is there for some but not for all.

One simple fact would demonstrate this, the tax credits the government has given. These tax credits only go to people with taxable income. It is very simple to understand. I was attempting to explain it to the media yesterday, because they were asking what the difference was between a refundable tax credit and a non-refundable tax credit.

Let me provide the simple facts. Last year 24.5 million returns were filed , of which 15.2 million owed net federal tax and 9.3 million owed no federal income tax after all the credits and deductions. The fact is that without net income, one will not get the benefit of the tax credits.

In my riding, who needs piano lessons but does not get access to them? It is the poorest kids in my riding. Who has problems taking care of their loved ones? Who has problems taking care of their mother or their father?

Who needs the tax credits provided by the Conservatives? They are not simply tax credits for Canada’ middle class. They should be for everyone and not just for some. Quite frankly, that is the difference between the vision of the Liberal Party and that of the Conservative Party.

For those reasons, I will be moving an amendment to the amendment put forward by the Leader of the Opposition. I move:

That the motion be further amended by adding the following:

“and rejects the government’s budgetary policy because it does nothing to improve the worsening living conditions and opportunity gaps facing aboriginal people, fails to present any plan that fosters long-term, sustainable prosperity and equal opportunity for all Canadians, deliberately excludes low-income Canadians from qualifying for new tax measures by failing to make them refundable tax credits, abandons the federal government’s role in the development and maintenance of affordable housing, continues to display a lack of federal leadership on health care particularly by ignoring the need to begin negotiations with the provinces on the successor to the 2004 health accord and leaves Canadians in the dark as to which programs and services will be cut in order to meet the government’s deficit projections”.

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