Domestic policy of the Harper government

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Prime Minister Stephen Harper and his Conservative Party Government of Canada planned and adopted, since its election on January 23, 2006, several policies regarding to various interior and domestic issues in Canada such as social and environmental policies. At the beginning of the government's term, five policy priorities were identified in the areas of federal accountability, tax reform, crime, child care and health care.

Contents 1 2006 Budget 1.1 GST cut 1.2 Critics of the budget 1.3 Vote 1.4 2006 surplus 1.5 Income trusts 2 Environment 2.1 Criticism of Kyoto Accord 2.2 Clean Air Act 2.3 Response to climate change report 2.4 Meetings on global warming 2.5 Critics 2.6 Funding for provinces 2.7 Other measures 3 Agriculture 3.1 Aid for farmers 3.2 Wheat Board 4 Social policy 4.1 Age of consent 4.2 Same-sex marriage 4.3 Child-care policy 4.4 Fiscal imbalance 4.5 Crime policy 4.6 Interior security 4.7 Health policy 4.8 Apology to Chinese-Canadians 5 The Federal Accountability Act 6 National unity 7 Image 8 See also 9 Footnotes

[edit] 2006 Budget

The first federal budget of the Conservative government was released on May 2, 2006 by Finance Minister Jim Flaherty.

[edit] GST cut

The Conservative government promised to lower the federal Goods and Services Tax from 7% to 6% for the first budget and to while lower it to 5% for 2011. There were some concerns from activists, that the cut would only benefit the rich. There were also some concerns that retailers would raise their prices to compensate. Finally, there were also possibilities that some provincial governments take advantage and raise their provincial taxes. During the 2006 election campaign, the Martin government proposed income tax cuts for lower-middle income earners. The Liberals have claimed that the GST cut would effectively result in a tax increase for those in the lower-middle income bracket. The Conservatives argued that the GST cuts would benefit all Canadians, including low-income earners and those outside the workforce who do not pay income tax.

The first GST cut went into effect on July 1, 2006, and no provinces have raised provincial sales tax as of yet.

[edit] Critics of the budget

It was met with dissent by the Liberal and New Democratic parties and mostly positive reception from the Bloc. The Liberals and NDP voiced disapproval over the Conservatives following through on their election promise to replace the Liberals child care policy with their own, and for replacing Canada's $4 billion environmental policy with a $2 billion "made in Canada" plan of their design. The budget was met with widespread support amongst the business community and polling indicated that a clear majority of Canadians approved of the budget.^{[citation needed]}

[edit] Vote

While it initially appeared that the only way the Conservatives' budget would pass would be with the support of the Bloc Quebecois, the budget passed third reading without dissent on June 6, 2006 when the members of the Opposition accidentally failed to stand after the Deputy Speaker of the House called for debate. Because there were no speakers for the Opposition, the budget was declared passed with unanimous support and no recorded vote and thus forwarded to the Senate for approval. This marked the first time in Canadian Parliamentary history where a government's budget passed unanimously on the third and final reading.

[edit] 2006 surplus

On September 25, 2006, the Conservative government announced a 13.2 billion-dollar surplus within the fiscal year. The full amount was used to pay out the country's debt which currently stands at just under $500 billion. ^[1]

In a financial update on November 23, 2006, Finance Minister Jim Flaherty wanted to eliminate the country's net debt by 2021 calling it "a matter of fairness for future generations". He also promised to lower taxes including, personal income taxes, employment insurance rates, and corporate tax revenues. He had also considering a move to split the income of married couples for tax purposes. ^[2]

[edit] Income trusts

On October 31, 2006, Flaherty announced a new tax on income trusts created after that date. The new tax regime would apply to existing trusts in 2011. Several companies such as Telus and Bell Canada Enterprises had announced their plans to convert to income trusts, but are now expected to withdraw those plans. In the 2006 election, the Conservatives promised not to tax income trusts. ^{[3] [4] [5] [6]}.

Subsequent to the October 31st announcement by Flaherty, the TSX Capped Energy Trust Index lost 21.8% in market value and the TSX Capped Income Trust Index lost 17.6% in market value by mid November 2006. In contrast, the TSX Capped REIT Index, which is exempt from the 'Tax Fairness Plan', gained 3.2% in market value. According to the Canadian Association of Income Funds, this translates into a permanent loss in savings of $30 Billion to Canadian Income Trust Investors [1].

Economist Yves Fortin has challenged the reasons for the change in tax regime announced by Flaherty and disputes the Harper government assertion that the Trust structure has lead to lose of tax revenue because of trust conversions in his research paper Income Trusts and Tax Leakage: Is there a problem?.

Analyst Gordon Tait has also raised concerns about the lack of consultation and misconceptions surrounding the change in tax policy on Trusts in The Inconvenient Truth About Trusts

[edit] Environment

[edit] Criticism of Kyoto Accord

Harper and the Conservative government criticized the Kyoto Accord on measures to fight against global warming and greenhouse gas emissions. Harper considered the objectives implemented by Canada to meet its goals were not realistic. He had proposed a "Made in Canada" plan that would concentrate its efforts on reducing smog pollution from vehicles. ^[7][8][9] In a CTV report in October, however, the Conservatives had mentioned that it would be an approach rather than a plan.^[10]

[edit] Clean Air Act

On October 10, 2006 in Vancouver, Harper announced some measures such as tax credits to environmental-friendly measures, a repackaged air quality health index and a program to retrofit diesel school buses. Harper mentioned that these measures would "move industry from voluntary compliance to strict enforcement; replace the current ad hoc, patchwork system with clear, consistent, and comprehensive national standards; and institute a holistic approach that doesn't treat the related issues of pollutants and greenhouse gas emissions in isolation." Prior to the announcement, activists groups listed a series of recommendations including regulations on big industries and to comply with the Kyoto Protocol.^[11]

Details of the Clean Air Act were revealed on October 19, 2006 by Harper along with Environment Minister Rona Ambrose and Transport Minister Lawrence Cannon. Its main plan was to reduce greenhouse emissions at about 45 to 65% of the 2003 levels. The goal was set for the year 2050 while a decrease of greenhouse emissions would be notice in 2020. there were also regulations ser for vehicle fuel consumption for 2011. While new measure would be set for industries starting in 2010. Finally, oil companies will have to reduce gas emissions for each barrel produced. However, companies can increase their production until 2020.^[12]. The plan was heavily criticized by opposition parties and several environmental groups. It is likely that the measure will not pass the Canadian House of Commons if no amendments are made.

[edit] Response to climate change report

Harper later proposed a discussion with NDP leader Jack Layton in the light of growing concerns made by the United Kingdom government of Tony Blair as well as a report by Sir Nicholas Stern, a former chief economist World Bank who predicted a 20% drop of the global economy. Layton tabled a private member's bill which contained plans to respect Kyoto's targets. After their meeting, they agreed on a formal review of the Clean Air Act. ^{[13] [14] [15] [16] [17]}

[edit] Meetings on global warming

Harper canceled a planned meeting on environment with European Union members in Helsinki, Finland, a meeting in which he was expecting to condemn the Kyoto Accord. Critics cited that Harper canceled its meeting to avoid the criticism from EU officials. Harper's director of communications cited that his legislation agenda forced him to withdrew from the meeting. ^[18] Furthermore, Ambrose attended a two-week November 2006 UN summit meeting in Nairobi, Kenya on the issue of the Kyoto Accord and it targets. Opposition members have claimed that her presence will be an embarrassment for Canada. ^[19]

[edit] Critics

At the Nairobi summit, the Climate Action Network had given a "fossil of the day" award to the country along with Australia for contributing less to the battle of climate change. The country was also ranked 51st out of 56 countries of those who were part of a climate treaty in 1992 or contributed a least 1% of greenhouse emissions according to Germanwatch, a Bonn, Germany development group which ranked countries based on their contribution of fighting greenhouse emissions. The deputy leader of the Green Party David Chernushenko had included Canada in an "axis of environmental evil" along with the United States and Australia. ^{[20] [21]}

[edit] Funding for provinces

The previous government pledged funding to several provinces including Ontario and Quebec. However, the Conservatives cited that with the new Clean Air Act, the Liberal agreements have been annulled. Ontario lost 538 millions dollars and Quebec 328 million dollars. Quebec's Environment Minister Claude Béchard vowed to influenced the Tory government and forced them to send the 328 million-dollar funding for the province. ^[22]

[edit] Other measures

In the 2006 budget, the government introduced a 15.25% tax-credit on monthly passes for transit users.^[23] Harper also announced a $300 million grant to the Greater Vancouver Transportation Authority which will be used in part for preparations for the 2010 Olympic Winter Games.^[24]

The government also secured a 200-million dollar funding for Ottawa's O-Train expansion project after Treasury Board President John Baird review the project to make sure there were no cost overruns. The money was secured after Ottawa's new council voted on the project. ^{[25] [26]}

[edit] Agriculture

[edit] Aid for farmers

In 2006, farmers demanded the federal government a substantial aid to be able to cope with a 2005 World Trade Organisation (WTO) ruling that will abolish subsidies and other trade barriers in the agriculture industry before 2013.

The farmers, especially from the Ottawa region drove their tractors to Parliament Hill, oil and food terminals across Ottawa and in front of the Prime Minister's residence to voice their concerns.

In the 2006 budget, the Conservatives announced an immediate $1.5 billion aid to farmers and $755 million funding from the previous government for the Grains and Oilseeds Payment Program. Agriculture Minister Chuck Strahl also announced in July $550 million in aid to low-income farmers with a two-year pilot project ^{[27] [28]}

[edit] Wheat Board

Strahl also planned to review the roles of the Canadian Wheat Board, a monopoly in the Canadian wheat industry. He wanted to end the "single desk" system which causes the monopoly, despite opposition of farmers which supported the current role of the Board. ^[29]

[edit] Social policy

[edit] Age of consent

The Conservative Government have planned to increase the legal age of consent from 14 to 16 years. Justice Minister Vic Toews proposed the bill in order, according to him, to protect youth against "sexual predators". The minimum age of 14 was previously set a century ago.^[30]

[edit] Same-sex marriage

Stephen Harper promised during the 2006 election campaign, a free vote to revisit the issue of same-sex marriage which was passed by the previous government in 2005. However, the vote which took place on December 7, 2006 was rejected 175-123. Harper told the media that the issue is case closed and will not rediscuss on it.^{[31] [32]}

There were also plans to pass a law that would protect "freedom of religious expression", a law that according to many is perceived as a protection to opponents of same-sex marriage. The government cut funding to various social programs and festivals, some of which were related to the gay community such as Montreal's Black and Blue festival, one of the biggest gay festivals in Canada.^[33][34] The Harper government also reduced spending for women's advocacy work on the status of women in the country.^[35]

[edit] Child-care policy

In the 2006 budget, the Tories introduced a new child-care allowance that gives parents with children under six years of age an allowance of $1200 per year, which is taxable in the hands of the lower income parent. The allowance is not tied to actual child care expenses, and is available to all parents, regardless of whether or not they use childcare services. The measure have cost the government about $3.7 billion per year. The Conservatives will terminate all child-care deals that were made between the previous government and several provinces after March 2007 ^[36]

This measure was met with opposition by the provincial counterparts including Ontario's Dalton McGuinty and Quebec's Premier Jean Charest. They claimed that it will create additional daycare places which Minister Diane Finley promised. Quebec officials also cited that it will harm provincial revenues and deteriorate fiscal equality. Other opponents mentioned that the spending was not adequate and did not address the need for child care spaces, particularly in urban centers. Supporters argued that the Liberal program the Tories replaced was inflexible and discriminated against stay-at-home parents. Harper has stated that his government will work with provincial and local governments, not-for-profit organizations, and employers to create additional spaces, and has set aside $250 million per year to fund these initiatives.

[edit] Fiscal imbalance

During the 2006 campaign, Stephen Harper promised the provinces including Quebec and Ontario to deal with the issue of fiscal imbalance. When the budget was announced, there was commitment to deal with the matter but little money was used for it. No funding was used when Finance Minister Jim Flaherty announced a $13 billion surplus. The Bloc Quebecois has threaten to topple the government, if the Tories didn't give an additional $3.9 billion to the province. Support for the Conservatives in the province was up during the election due to the promise by Harper to deal with the matter.^[37]

[edit] Crime policy

The government promised to be tough on crime by imposing tougher sentences to people committing firearm offenses and violent crimes; a promise made by Harper after a record number of fatalities by gun-related incidents in Toronto in 2005. They are also on the process of creating a new law that would impose tougher sentences for repeat crime offenders, eliminating house arrest or conditional sentences of offenders and a legislation targeting impaired drivers and street racing. Several anti-crime bills are currently progressing in the House. ^{[38] [39]}

[edit] Interior security

For border security measures, see Foreign policy of the Harper government

On November 14, 2006, Transport Minister Lawrence Cannon announced an immediate 37 million-dollar investment on improving security in public transit systems across the country. Cannon said that transit systems are not immune to terrorist attacks like those that hit Madrid, London and Mumbai over the past two years. Toronto and Montreal received 11 million dollars each, Ottawa 1.2 million dollars while Vancouver, Edmonton and Calgary also received a certain amount. The money will be used for security plans, public awarenesses and training. The Toronto Transit Commission and OC Transpo requested that the money would be spent on installing cameras inside buses. ^{[40] [41]} Subsequently it was revealed that while 40% of all transit users in Canada use the TTC, and 85% of Toronto transit riders use the TTC, it will only receive $1.46 million, with the remaining grant used for GO Transit and Union Station. This stance is further evidence of the Harper government to support provincial projects (GO Transit is a provincial transit system) and continue to force municipalities to fend for themselves. ^[42]

[edit] Health policy

The Harper government promised to introduce a "Patient Wait Times Guarantee" in conjunction with the provinces. Harper has recently been criticized by prominent media figures, such as Paul Wells, for downplaying this fifth and final priority.

On November 24, 2006, Harper announced the Canadian Partnership Against Cancer, a 5-year 260-million dollar national plan on battling different types of cancer. This not-for-profit organization will be monitored and evaluated by Health Canada. ^[43]. Prior to that announcement on October 23, Health Minister Tony Clement also launched an 8.4 million dollar heart health strategy that plans to tackle the issue of heart diseases and other related issues. ^[44]

On December 8, 2006, the government announced plan to crack down on the usage of toxic chemicals. The plan is worth an estimated 300 million dollars over four years and would either eliminate, control or reduce some of the more hazardous toxic chemicals in order to protect the environment and the health and safety of Canadians particularly in workplaces as well as animals. The plan is a follow of the Canadian Environmental Protection Act that had previously named and targeted a series of dangerous substances.^[45]

[edit] Apology to Chinese-Canadians

On June 23, 2006, Stephen Harper offered full apology to Chinese Canadians for the country's treatment of Chinese immigrants during the years 1885 to 1923 on the imposing Head Tax policy to them, and subsequent discrimination policies, including subsequent exclusion of Chinese immigrants from 1923 until 1947. It is estimated about 82,000 Chinese paid the fee, first set at $50 and later raised to $500, about two years' wages at the time. Harper said that Chinese-Canadians who paid the tax or their surviving spouses will receive a symbolic $20,000 ex-gratia payment.^[46]

[edit] The Federal Accountability Act

Main article: Federal Accountability Act

On April 11, 2006, President of the Treasury Board John Baird, on behalf of the Harper government, tabled the Federal Accountability Act and Action Plan. The plan will reduce the opportunity to exert influence with money by banning corporate, union, and large personal political donations; five-year lobbying ban on former ministers, their aides, and senior public servants; providing protection for whistleblowers; and enhancing the power for the Auditor General to follow the money spent by the government.

While the government hopes to have this act passed before the House of Commons breaks for the summer, questions have arisen surrounding elements of the Federal Acountability Act and how it might affect the 2006 Liberal leadership convention. A $1,000 donation limit has been proposed as part of the Federal Accountability Act with political party convention donations being tied to this amount. The Liberal Party of Canada's leadership convention scheduled for December 2006 contains a $995 convention fee, which under the proposed Accountability Act could prevent convention delegates from donating anything beyond their convention fee or prevent the delegate's presence at the convention should their convention fee in conjunction with any donations prior to the convention put them above the donation limit. Some of the Senate majority-holding Liberal Senators have threatened to stall the Federal Accountability Act in the upper chamber until after December because of the effect the proposed donation limits may have on political party conventions.

[edit] National unity

After sidestepping the political landmine for most of the first year of his government, much as all all the post-Charlottetown Accord Prime Ministers had done, Harper reopened the debate on November 22, 2006, by introducing a motion in the House of Commons to recognize Quebec as a "nation within Canada." His hand was forced after the opposition Bloc Quebecois were to introduce a motion that called for recognition of Quebec as a "nation" but not within Canada. The Bloc later modify partly his motion and later decided to support the Conservatives motion which was greeted by Parti Quebecois Leader Andre Boisclair and by Quebec Premier Minister Jean Charest. ^{[47] [48] [49]} However, Intergovermental Minister Michael Chong say he didn't want the country's unity being compromise and divided. He resigned his Cabinet position on November 27 over the matter ahead of a vote on the motion which passed first reading in the House of Commons 266 to 16. It also rejected a Bloc Quebecois amendment that did not have mention of Canada. ^{[50] [51]}

[edit] Image

There have been claims in the media that evangelical Christians see Harper as "an image-savvy evangelical who has been careful to keep his signals to them under the media radar, but they have no doubt his convictions run deep—so deep that only after he wins a majority will he dare translate the true colors of his faith into policies that could remake the fabric of the nation" ,^[52] though others dispute this^{[citation needed]}.

The Harper government reinstituted a policy of lowering the national flag at military installations such as Department of National Defence headquarters only, drawing criticism that the government was showing a lack of respect for the soldiers.^[53]

[edit] See also

• Stephen Harper
• Foreign policy of the Harper government

[edit] Footnotes