44th Parl. 1st Sess.
February 8, 2022 10:00AM
- Feb/8/22 1:25:41 p.m.
- Watch
Madam Speaker, it is a pleasure to rise in the House. I will be sharing my time with the hon. member for Souris—Moose Mountain.
It has been kind of a history lesson here today. We have heard about the Hudson's Bay Company, the Meech Lake accord and the Charlottetown accord. It has been refreshing to go back over 100 years today as we talk about the Saskatchewan Act.
I give credit to the member for Regina—Lewvan for bringing this very important motion to the House today. I chair the Saskatchewan caucus and, for the second consecutive election, we returned 14 out of 14 Conservative MPs to the House.
It is very important that we open the dialogue today to have a wholesome discussion on the Saskatchewan Act and what it means to my province, which has a population of 1.2 million. When we see CP Rail's profit of $341 million, I do not have to say that $341 million to a population of 1.2 million is a very substantial amount.
We can start way back on October 21, 1880. I am going to give some history, as there has been many history lessons in the House this morning and this afternoon. It was the Government of Canada that entered into the contract with the Canadian Pacific Railway syndicate for the construction of the Canadian Pacific Railway, which we all know back then was trail-blazing. It opened this country up from east to west, part of that was Saskatchewan.
In clause 16 of that 1880 Canadian Pacific Railway contract, the federal government agreed to give a tax exemption to the Canadian Pacific Railway company, and that is what we are talking about here today. In 1905, as everyone knows, the Parliament of Canada passed the Saskatchewan Act, which created my home province of Saskatchewan. Canadian Pacific Railway has paid applicable taxes to the Government of Saskatchewan since the province was established. That has been a topic of conversation today, but I want it on the record that it has paid taxes to the Saskatchewan government.
CP is currently attempting, though, to use a clause in the Saskatchewan Act as justification to avoid paying any provincial taxes on its main line. This represents, as I said, an enormous revenue loss for the provincial government and the people of Saskatchewan, which only 1.2 million strong. It is only fair that CP, as a corporate giant, pays its share, on which I think we all agree in the House.
In 1966, Ian Sinclair, then the CP Rail president, agreed to a constitutional amendment to eliminate this tax exemption. The constitutional change is the quick and efficient way to make this happen, and it should happen without delay. The Province of Saskatchewan has adopted the motion to amend the Saskatchewan Act and the Constitution of Canada during the fall sitting.
In December, the Saskatchewan Conservative regional caucus urged the federal government to support the Saskatchewan government's approved motion to repeal section 24 of the Saskatchewan Act. Section 24 of the act contains a contentious exemption for Canadian Pacific Railway from various Saskatchewan provincial taxes. In order for this section to be removed, though, a similar motion must now be passed at the federal level, here in the House and also in the Senate. That is why Canada's Conservatives are calling on the federal government to listen to the Saskatchewan government and support the motion that we have put forward today in the House to repeal section 24 of the Saskatchewan Act.
The tax loss to Saskatchewan would hurt provincial services if the Liberal government refuses to stand up for tax fairness and ensure that CP Rail pays its fair share to the people of Saskatchewan. CP Rail, as I mentioned, is a corporate giant. There is no reason it should enjoy an exemption from provincial taxes. There is also no reason the government should delay responding to the provincial government's request.
Canada's Conservatives are always on Saskatchewan's side. Those tax dollars need to stay right at home in my province of Saskatchewan.
CP Rail and the Saskatchewan government have been engaged now for about 13 years in a legal battle with the railway seeking roughly $341 million. It is coming out now because the provincial legislature in Saskatchewan passed a motion unanimously on November 29, 2021.
In Saskatchewan legislature, just to fill us in, there are only two parties. The Saskatchewan Party is the official government and the official opposition is the NDP. Here we have the Saskatchewan Party and the NDP agreeing on one thing, that the Saskatchewan Act has to come to the House of Commons and later to the Senate.
I have spoken to the Saskatchewan justice minister, Gordon Wyant, a couple of times, dealing with the Saskatchewan Act. The Saskatchewan justice minister was quoted as saying, and I quote, “We are going to vigorously defend the claim that has been brought by the railway to defend the interests of the people of Saskatchewan”. This resolution needs to be approved by the federal government, passed through the House of Commons right here in front of 338 members, and then on to the Senate.
Minister Wyant has had conversations, I know, with the federal justice minister on the issue of the Saskatchewan Act. We are hoping today that the motion will move forward. It is my understanding that several MLAs in my province have even reached out to Saskatchewan senators to start the dialogue. If we can pass the motion through here, it goes to the Senate. The conversations have started not only here today in the House of Commons, but also, more importantly, in the Senate where they will have to deal with this.
As members of the House are likely aware, CP Rail is suing the Government of Saskatchewan for the $341 million. They claim a broad tax exemption under section 24. This matter is currently before the courts, so most of us really do not want to talk about that, because it is before the court.
Therefore, the Government of Saskatchewan believes that today it is time to repeal section 24 regardless of whether it is in force or not. If the tax exemption remains in force, I do not have to tell the members of the House, it creates a substantial inequity within our own province. $341 million would be eliminated from the taxes of only 1.2 million in our province. As a matter of the tax policy and business competitiveness, there must be a level playing field for all businesses in our province of Saskatchewan.
We all agree that all businesses should pay their fair share of taxes, and by supporting this motion, it would send a strong signal to my province of Saskatchewan. Saskatchewanians desperately want the motion today regarding the Saskatchewan Act passed. It would show federal support from that side of the house and the opposition parties. It would show that we do care about the province of Saskatchewan.
This is an important motion put forward today by the hon. member for Regina—Lewvan. He was a member of the Saskatchewan legislature before he became a member of Parliament. He knows very well the pressures on the provincial government in Saskatchewan. He was in their caucus for a number of years and he knows first-hand that Saskatchewan, being a small province, does not have a lot of corporate businesses. CP Rail is one of the biggest, and as has been mentioned today, it makes a lot of profit. Profit is good, but at the same time, CP Rail must pay its fair share of taxes.
On behalf of residents of Saskatoon—Grasswood, it has been a pleasure to speak to the motion moved by the member for Regina—Lewvan on the Saskatchewan Act.
1320 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- Feb/8/22 1:35:48 p.m.
- Watch
Madam Speaker, I want to thank the hon. member from across the aisle. We are here today in the House talking about the Saskatchewan Act. It would be premature for many of us to reach out to any of the senators.
However, I can tell the hon. member there has been discussions from MLAs, maybe a couple of the MPs from Saskatchewan too, and our only Conservative senator in the Senate. We have five senators from Saskatchewan. They have signed a letter of intent. I have not seen that letter, but before Christmas I understand they did sign the letter and that is the first step moving forward in the Senate.
111 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- Feb/8/22 1:37:29 p.m.
- Watch
Madam Speaker, I think the dialogue really started on November 29, 2021, in the legislature in Saskatchewan with unanimous consent on the Saskatchewan Act. That includes the NDP and the Saskatchewan Party, which has several Conservative and Liberal members in it, as it forms the majority in our province.
They have reached out I am sure. Gordon Wyant, the Attorney General of Saskatchewan, has reached out to the justice minister, and I am sure they have had conversations in the Senate. Unfortunately, we only have five senators. We can have that discussion, hopefully after this motion passes, and maybe we can talk to all 105 senators to feel them out on the Saskatchewan Act.
114 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- Feb/8/22 1:39:13 p.m.
- Watch
Madam Speaker, I want to thank the member for Regina—Lewvan for his advocacy on this. He has been stellar for the province of Saskatchewan in bringing this motion forward today as an opposition day motion. The Conservative government will always respect the jurisdiction of the provinces, and that is what we are talking about here. The province of Saskatchewan is very small in population.
What could we do with that $341 million? I am not the finance minister, but if I were the finance minister of Saskatchewan, I am sure I would quickly have a list from Regina to Saskatoon.
102 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- menumenu
- notificationsnotifications
- home
- mailmail
- searchsearch
