From the Prime Minister's Web Site (http://www.pm.gc.ca/)
Prime Minister Stephen Harpers address to the St. Johns Board of Trade
April 12, 2006
St. John's, NL
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Good afternoon, ladies and gentlemen:
First, thank you all very much for that warm St. Johns welcome.
And thank you for the invitation to speak here today.
Wherever I go in this great country, I am always impressed by the dedication of local boards of trade and chambers of commerce to the discussion and debate of issues important not just to businesspeople - but to all members of the public.
The St. Johns Board of Trade is, of course, no exception, and I would like to thank this board for the thoughtful federal pre-budget submission it prepared recently.
Input from groups such as yours is important to our Government, as it seeks to promote the careful stewardship of taxpayers dollars.
That is important to you.
And it is important to me.
Government must never make the mistake of viewing the taxpayers money as its own.
These hard-earned dollars are a precious resource that must be used to build a better Canada for all Canadians so thank you.
Id also like to take a moment to recognize some familiar faces out there in the audience.
Newfoundland and Labrador Premier Danny Williams - who is doing a tremendous job of turning around the problems of the past and tackling the opportunities of the future and we all admire his direction and determination.
St. Johns mayor Andy Wells - who has added a colourful presence to this great city and ensured its voice is heard across the country.
And last but certainly not least, my colleagues in the Parliament of Canada.
Now Norm Doyle is unable to be here today but we do have
from the Senate of Canada, Ethel Cochrane,
the Chair of the Governments Atlantic Canada Caucus, MP Fabian Manning,
And Newfoundland and Labradors representative in the federal Cabinet, Fisheries Minister, the Hon. Loyola Hearn.
Thanks to all of you for attending this afternoon.
Let me tell you, it feels great to be back in Newfoundland and Labrador.
Every time I visit this city and this province, I am struck by how it has turned a corner and is on its way to becoming a hub of economic and entrepreneurial activity, not just in Canada, but in the Atlantic region of North America.
The best is yet to come for Newfoundland and Labrador.
But you know, Newfoundland and Labrador is about more than its economy.
This province is unique.
Its history, its culture, its way-of-life greatly contribute to making Canada the great country it is.
March 31, 1949, stands as the date in our history, not simply when Newfoundland and Labrador joined Confederation, but the date on which our country became complete.
That is why our Government is committed to helping to build an even stronger Newfoundland and Labrador in Canada.
During the election campaign, I promised Newfoundlanders and Labradorians, if elected, our Government would move forward on the issues that matter to them.
Well, now that we have that mandate, we have begun to act.
That is why it gave me great pleasure this morning to travel to Gander to announce the reopening of weather forecasting at the Newfoundland and Labrador Weather Office.
As I noted this morning, inaccurate forecasts arent just an inconvenience, they pose a real danger to the thousands of men and women who work offshore in this province.
That is why our Government is going to get the weather office in Gander up and running as quickly as possible.
And Gander is just the beginning.
In the weeks, months and years to come, we will work with the Newfoundland members of our Government to stand up your interests in Ottawa.
Ladies and gentlemen, on January 23, Canadians from across this great country of ours voted for direction and they voted for change.
And they asked our party to lead that change.
The recent Speech from the Throne is the beginning of that agenda of change.
It stated our Governments intention to clean up Government by introducing the Federal Accountability Act, an action plan of over 250 sections tabled yesterday in the House of Commons.
The Throne Speech promised a real plan to crack down on crime.
The speech also signalled our Governments commitment to address the needs of all Canadians with young children by introducing a Choice in Childcare Allowance.
Our plan will not only provide parents with $1200 a year for whatever form of childcare that best suits their needs, it will also target the creation of real daycare spaces.
The Speech from the Throne also pledges to get on with addressing the medical wait-time problem in this country by working with the provinces to develop a Patient Wait Times Guarantee so that Canadians get the timely medical treatment they deserve.
Finally, were going to provide real tax relief for all Canadians, and this is the topic I wish to talk to you about today.
Our new, Government believes that hardworking Canadians deserve a break.
Theyre working longer, paying more, and saving less than they were 13 years ago.
Simply put, Canadians are overtaxed.
And our Government will take measures to lower taxes as one of our five top priorities.
It is not that we have been short of money in Ottawa.
Actually, as you all know, it has been quite the contrary.
Under the previous Government, billions upon billions of dollars were taken from Canadians through over-taxation nothing more, nothing less to fund large and often hidden federal surpluses.
In the last decade, roughly 100 billions of dollars in unexpected surpluses poured into Ottawa.
Some of this money did go to pay down debt, but much of it went to off-budget, unplanned and poorly thought out spending - including literally billions in well know examples of waste, mismanagement and scandal.
Left in the hands of Canadians that money could have helped:
parents buy clothing and school supplies for their children,
small and medium-sized business owners to further invest in their operations, thereby creating new jobs, or,
(helped) provide some much-needed financial breathing space for cash-strapped seniors and students.
Simply put, this money would have gone a long way to helping out all Canadians.
Did the former Government ever express any regret or shame about this over-taxation of Canadians?
No, it actually thought it was something of which to be proud.
As ordinary Canadians began to fall further and further behind, the previous Government actually had to audacity to pat itself on the back for this over-taxation of Canadians.
Mark my words ladies and gentlemen, that era came to a close on January 23.
Our Government is committed to resolving the fiscal imbalance and when we use the phrase fiscal imbalance, we are not referring only to federal-provincial relations.
We also want to resolve the current fiscal imbalance between the federal Government and individual Canadians all Canadians.
That is why reducing the GST from 7 to 6 (and eventually 5) per cent will be step one in our tax-cutting plan.
We have a real plan that will deliver tax reduction for every single Canadian family.
To that end, our Government will begin by reducing the GST from seven to six percent in its upcoming budget, and then over the course of our mandate, to five percent.
A cut in the GST benefits everyone including those who have modest or low incomes because it is the one federal tax that everyone pays.
The immediate saving to Canadians by cutting the GST by one percent point will be $4.5 billion annually.
Just think of the savings that will deliver to Canadians especially those who earn so little that they dont pay income tax.
It will:
help seniors pay their utility bills,
students meet the rent,
and low-income families put more groceries on the table.
And once our GST reduction plan is fully implemented, the total benefit to Canadians and their families will be even greater.
For instance, a cut to the GST will mean substantial savings for families buying new houses right here in St. Johns.
Once fully implemented, our cut to the GST would result in savings of $4,000 on a new home worth $200,000.
Or think of the savings on the purchase on a family minivan.
Once the GST has been cut to five percent, the average total savings would be between $400 and $500.
That money would be enough to pay for an infant car seat, a new set of snow tires, or some other family necessity.
So you see, following through on our promise to cut the GST, is about providing real results for all Canadians.
But cutting the GST is just the beginning of the tax cuts were going to provide.
Over the course of our mandate, we will continue to cut taxes for all Canadians.
We are going to reduce the cost of doing business, not just by implementing the on-again-off-again corporate tax reductions, but by reducing the tax burden currently being shouldered by small businesses in this country.
Small businesses are critical to Canadas economy.
In fact, our future economic growth is going to depend a great deal on their success.
And that is why our Government is going to help foster the entrepreneurial efforts of these men and women by raising the threshold of the small business rate.
As suggested by this board of trade, were going to raise the threshold from its current level of $300,000 to $400,000.
We are then going to gradually reduce the small business rate to 11 percent over five years.
This is measure will help to create an environment that will allow Canadian small businesses to thrive and grow, which in turn, will create more jobs across the country.
It doesnt stop there.
For instance, our Government is going to provide assistance to the families of young Canadians who pursue a post-secondary education by offering them a tax credit of up to $500 for textbooks.
Also, under Canadas New Government, the first $10,000 of student scholarship or bursary income will be exempt from taxation.
And then theres tradespeople carpenters, electricians, plumbers, and cooks people who work hard for the money they make and incur significant costs in doing so.
We are going to lower the financial barrier to entering the trades by introducing a Tools Tax Deduction of up to $500 for the tools these men and women need as a condition of work.
Our Government is also going to give a break to those Canadians who use public transit.
Over the next two years, we will introduce a tax credit for their monthly passes.
This tax credit will not only put hard-earned dollars back in the pockets of Canadians, it will also help our environment by encouraging the usage of public transportation.
Were going to give families with children in sporting activities a break by introducing a federal tax credit on registration fees to a maximum of $500 per year per child.
The benefit of this plan will be twofold: it will leave more money in the pockets of hardworking Canadians and promote physical well-being in our youth.
Were also going to provide tangible tax relief for Canadian seniors.
The men and women who helped to build the Canada we know today often see their modest savings clawed back when they receive retirement income.
We will do more to protect them by raising the pension income tax amount that is eligible for a federal tax credit from $1,000 to $2,500 over the course of our mandate.
Combined with the GST cut, this measure is going to afford Canadian seniors the financial breathing room to which their sacrifices for this country have entitled them.
We are going to reduce capital gains taxes, including some measures we want to proceed with as quickly as possible that are relevant in this part of Canada.
We are going to provide a $500,000 exemption for the sale of fishing businesses within the family.
We are also going to facilitate greater levels of charitable giving, by removing the capital gains tax on listed stocks donated to charities.
Once implemented, this measure will make it that much easier for generous men and women to donate to the charity, or charities, of their choice, a move, which in turn, will strengthen all Canadian communities.
These, ladies and gentlemen, are the tax cuts we promised during the election campaign.
And as Government, these are the tax cuts were doing to deliver over the course of our mandate.
Tax relief is a fundamental part of our agenda.
Its a priority for my Government because it is a priority for ordinary, hardworking Canadians.
My friends, tax relief cannot only benefit a precious few.
It must benefit all of us, so that all Canadians are given more opportunity to get ahead.
And that is why our Government will move forward with actions aimed at alleviating the tax burden of all Canadians - students, tradespeople, seniors, young families, small business people, transit users.
This is the commitment we made to Canadians during the election, and it is the commitment that we intend to deliver as Government.
As you know, however, our Government is in a minority position.
That is why we need this message delivered clearly to all of Canadas Members of Parliament:
Hard-working, ordinary Canadians and Canadian business have been over-taxed for far too long.
Simply put, you deserve a break.
We need all parties to work with our Government to help reduce taxes for Canadians.
To be frank, to hinder the implementation of these long-overdue tax relief measures would be unconscionable.
In order for Canada to be strong, our country must work for us all.
Our Governments tax relief plan is designed to do just that.
To ensure that it becomes a reality, Canadians like yourselves must write, call, or email MPs to let them know that this isnt just our priority, but your priority of your as well.
In closing, Id like to reiterate my unshakeable belief that the best is yet to come for Newfoundland and Labrador and for all parts of this great country.
In the weeks and months ahead, our Government is going to continue to move this country forward.
Together, I am confident that we can achieve great things.
Thank you.
God bless Canada.
The Prime Ministers Office - Communications
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