December 17, 2007

This is the last week the House of Commons will sit before it adjourns for the Christmas break. Nevertheless, the pace here has been hectic and it’s not unusual at this time of year to see the hours of the House extended.

On Tuesday night, for example, the House sat until 11:30 pm and it was well worth the long night. The Government, with the support of the opposition, passed emergency legislation that put the Chalk River nuclear facility back on line so that it can again produce the medical isotopes so necessary to cancer and heart disease patients. As one of the world’s leading producers of medical isotopes, the treatment and thus the health of a great number of people was in jeopardy.

For a change, all parties worked together to do what was necessary and the legislation was passed. As the Speaker noted it was “an awful lot like what I think a lot of Canadians think Parliament should be like every day.”

This week also gave me the opportunity to talk with the Minister of Finance to discuss the priorities of our riding in anticipation of Budget 2008.

Between us we had a robust and wide-ranging discussion about a number of key issues important to our communities including our need for: a passport office; the importance of infrastructure spending on Highway 97, public transit, waters, sewers and building upgrades including innovative environmental initiatives (green projects); assurance that a fair portion of the $1 billion in Pine Beetle funding makes its way to Kelowna; an effective Homelessness Partnering Strategy; an improved and simplified Veterans Independence Program; affordable, accessible housing and finding innovative ways to encourage partnerships with the public and e private sectors to address the shortage; a revamping of the GST rebate on new homes which does not adequately help new home owners in regions where the average housing price exceeds the $350,000 cut off; breaking down inter-provincial trade barriers so people, trades and goods can move more easily across provincial borders; tax assistance for our fruit growers to enable them to adjust to changing markets; more investment in R&D and post secondary education so that we can reach a higher level of productivity.

At the Minister’s invitation, my colleagues and I were also asked to comment on two questions:

1. If tax cuts are to be considered, what type of tax cuts would be your top priority?
2. What steps should the government take in Budget 2008, and beyond, to maintain our spending commitment in the face of multiple requests for increased spending? Additionally, should we be reallocating funding to meet the Government's priorities?
   

To answer these questions I spoke with a number of people and organizations in the riding to get local input. Despite the fact that they come from divergent backgrounds, their advice to the Minister of Finance was consistent and ultimately very practical.

In the case of the first question, the Minister of Finance was advised to continue to reduce personal income tax, to reduce corporate tax, to cut fuel taxes, to reduce the employer’s portion of EI premiums, to leave the GST at 5%, to create incentives that will harmonize corporate tax rates amongst provinces, to address the welfare wall so that work provides greater benefit than welfare, to exempt investment income from income tax (particularly interest), and to reduce capital gains tax and extend the Accelerated Capital Gains incentive for manufacturers so that they may modernize operations and improve productivity.

In response to the second question, the Minister was advised to pay down the debt, to be frugal and spend what we have rather than increase taxes to increase spending, to legislate a balanced budget, to reset our priorities as our needs change, to cut corporate subsidies, and to address issues like labour shortages through tax incentives.

It was all sound advice for a man who has a great deal resting on his shoulders.

With two successful budgets behind us, Budget 2008 will be able to address issues beyond the platform of the 2006 election and will define the future direction of the country.

I think instinctively we all understand that economic stability is the bridge towards greater social stability. Indeed, the strength of our economy is vital to how well we care for our citizens, especially the most disadvantaged. A tight focus on getting our economy right is ultimately a commitment to ensuring the welfare of our citizens.

The good news, as we head into the New Year, is that our economy is one of the strongest in the world and Canadians feel the country is on the right track.

I will be around the riding for the next few weeks so please feel free to contact my office if you would like to discuss any Federal issues. Also, I will continue my tradition of helping the Salvation Army kettle drive. If you see me please say hello and if you are able to, please drop in a few dollars to help bring some hope to those less fortunate.

Merry Christmas, Happy Holidays and hope you have a healthy and prosperous 2008.