SoVote

Decentralized Democracy

House Hansard - 26

44th Parl. 1st Sess.
February 8, 2022 10:00AM
  • Feb/8/22 5:12:37 p.m.
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Mr. Speaker, it is an honour to stand today to speak to our motion to advocate for the rights of the people of Saskatchewan. This motion is especially important to my riding of Moose Jaw—Lake Centre—Lanigan, as we are a major rail hub for not only CP but also for CN Rail. I am not a native of Moose Jaw. I came to Moose Jaw as a pilot in training with the Royal Canadian Air Force. When I moved to Moose Jaw, prior to leaving Bagotville, Quebec, where I was doing on-the-job training in a fighter squadron, I was told that I would meet a girl behind every tree. The problem is that there were not a lot of trees in the area of Saskatchewan I was going to be in. My wife is 5'11”, so she is as tall as a tree. When we walk down the street, I have to hold my hand up, and it looks somewhat pathetic. I married up. This motion is especially important in my riding. The history of the rail line being built in our city has a connection to Moose Jaw's notorious past. The Soo Line was a direct line linking Moose Jaw to Chicago. Everyone knows that during Prohibition, Al Capone hid out in the tunnels of Moose Jaw while trying to escape from the heat. When I say heat, I mean law enforcement. As I am sure everyone here is aware, many towns across the Prairies were developed along the rail lines. Communities popped up all across western Canada, and many flourished. These communities became trading posts where people, farmers in particular, were able to bring their goods to market. These railways helped transport not only raw materials, but also value-added agricultural goods. Some may know that in 1910, Robin Hood in Moose Jaw had the largest flour mill in all of western Canada. Also relevant to my riding and others in Saskatchewan, rail is used to transport potash, which is a necessary component of fertilizer. This product is sent globally, using the railway to both east and west ports. Ethically produced energy, used as fuel, is also transported. It is essential to helping Canadians getting out of the pandemic and getting back to work. Obviously, there is also food, both raw and processed. We are the breadbasket, and we have given the world the gift of canola. Moose Jaw is a major transportation hub, having two major rail lines and highways No. 1 and No. 2. Clearly, this issue is of local, provincial and national importance. What we need to look at is co-operation by recognizing the province's authority and request. Rail companies have always been good corporate citizens and partners with our communities. As we have heard throughout today, the issue at hand is an outdated agreement and Saskatchewan's right to tax companies operating within its borders. The parties have been engaged in a 13-year legal saga, with CP Rail seeking over $300 million in taxes that it has already paid. This has gone on for far too long, and we need to find a resolution. CP contends that it is exempt from various provincial taxes based on a contract struck over 140 years ago. This was before Saskatchewan was even a province. Meanwhile, Saskatchewan contends that the exemption ended in 1966, when CP's then president rescinded the deal in exchange for regulatory changes. It is not disputed that CP paid taxes for over a century. The issue to be determined at trial is whether the company was legally obligated to do so and, if not, whether it is entitled to a return of the money paid. This past November, the Saskatchewan justice minister, Gordon Wyant, put forward a motion to repeal section 24 of the Saskatchewan Act, which contained this exemption. This motion received the unanimous consent of the Saskatchewan legislature. As members of Parliament, we should all be supporting unanimous decisions dealing with provincial rights. I would like to ask the people of the House to imagine something. Imagine a company with a market cap of $66 billion. Should that company pay its fair share in taxes? Then, imagine that same company turns around and sues the federal government for taxes it has already paid in the past. The lawsuit is not for excess taxes paid but for all taxes paid. Their market cap is higher than companies such as CIBC, Bell or the outfitters for our Olympic athletes, Lululemon. On a side note, it would be prudent for me to wish good luck to Moose Jaw's own Graeme Fish, who will be racing for Olympic gold later this week in the 10,000-metre race, and good luck to Ben Coakwell, who is part of Canada's four-man bobsled team. I would also like to extend my thanks to all the other Canadian Olympians for their efforts. I am sure that everyone in this place would agree that this company should pay its fair share of taxes. That is what we are asking for, a fair share. However, as we have all heard today, that is exactly what is in the courts right now in this legal battle. In support of the province's unanimous motion and to recognize its provincial autonomy, my friend and colleague, the hon. member for Regina—Qu'Appelle, put forward a motion in this place to finalize the process at the federal level. It is important to remember that at this point this motion has led to unanimous support of every politician in Saskatchewan, every provincial MLA from both sides of the aisle and every federal MP from Saskatchewan. I am asking the House to show that same solidarity and respect Saskatchewan's rights. Excess red tape like this will hurt any jurisdiction's ability to be competitive. I understand that the provincial and federal justice ministers have discussed this issue and I trust it will receive a speedy resolution. This is not complicated and it is not partisan. In recent days and recent weeks, Canadians have been looking to their elected officials to improve the tone. They are asking us to open up dialogue. They are asking us to look for ways and things to unite us. They are asking to be recognized and valued. Above all, they are looking to us to show grace to one another and a spirit of humility. In that spirit of humility, I am asking the House to support this motion today and recognize Saskatchewan's equal place in Confederation. I offer thanks for the chance to speak to this important motion, and I look forward to questions.
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  • Feb/8/22 5:23:05 p.m.
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Mr. Speaker, I also have a quote from the Saskatchewan Minister of Justice, Mr. Gordon Wyant: “We're going to vigorously defend the claim that's been brought by the railway to defend the interests of the people of Saskatchewan.” I thank the member very much for the olive branch and his comments. I look forward to the member supporting the motion that has been brought forward.
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  • Feb/8/22 5:24:20 p.m.
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Mr. Speaker, the point of this conversation and dialogue is to talk about Saskatchewan's place in Confederation and to recognize its entitlement to make a decision on businesses that operate within its borders. It should be a fair share of tax, not overtaxing or undertaxing. As for her question, I am not aware of any other loopholes, but this agreement was struck over 140 years ago. It needs to be updated and that is what we are trying to bring light to.
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  • Feb/8/22 5:25:49 p.m.
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Mr. Speaker, I can tell my hon. colleague that I know his doppelgänger. He lives in Moose Jaw. I know his identical twin. He is on my EDA board. Every time the member stands, it freaks me out a bit. I would like to get a selfie with the member, if he does not mind. This is important to Saskatchewan. We believe in a strong Confederation and in a strong nation of Canada. Making a stronger Saskatchewan makes a stronger Canada. That is what I am speaking about today. That is what we are discussing and that is the opportunity before the House.
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