Forex

Canadian Finance Minister Jim Flaherty has moved to kill a private member’s bill that would allow Canadians to use registered education savings plan contributions as tax deductions, and it appears he won’t get much of a fight from the Liberal opposition over it.

“We’re not bringing the government down on Thursday,” said Liberal finance critic John McCallum Tuesday after Flaherty tabled the motion. Among other things, it would repeal parts of Liberal MP Dan McTeague’s Bill C-253 if it is passed in the Senate and receives Royal Assent.

Flaherty was adamant the private member’s bill would plunge Canada back into a budget deficit. He said that if the opposition is serious about pursuing a course of action that could result in a deficit, there should be an election.

“Budget 2008 is a plan that is prudent, focused and responsible in this period of economic uncertainty," said Flaherty. "Now, having received approval of the House of Commons for the budget framework, we are presented with a private member’s bill that risks plunging the federal government back into deficit. Our government told Canadians we would maintain a balanced budget and we intend to keep our word."

Estimates of the cost of the private members bill to government revenues range from more than $400 million to $2 billion.

McCallum said the opposition will challenge the motion procedurally since, under parliamentary rules, the House of Commons cannot return to an issue it has already dealt with.

“Let’s not kid ourselves, the Conservatives want to gut an opportunity for families to get access to higher education,” said McTeague.

A ruling on whether the motion is order still has to come from the Speaker of the House of Commons, Peter Milliken.

Flaherty told reporters the ways and means motion which will be voted on Thursday will be a confidence motion and will only need a single successful vote in the House of Commons to come into effect. However McCallum said he understands the motion will also have to be included in the government’s budget bill which will then go to committee later and could be challenged there.

Flaherty dismissed charges his move was undemocratic, saying that the House already voted in support of the budget as-is.

“It’s not for the opposition to set up the budgetary policy of the government. It’s up to me as Finance Minister on behalf of the government to maintain the integrity of the budget plan and maintain the integrity of the budget process,” Flaherty said.

“March madness is over. We went through this for years with the Liberals. Every March all of a sudden there’d be $10 billion or $15 billion and they’d go spend it,” said Flaherty. “We’re not doing that anymore. We’re budgeting frugally and carefully… and we’re not planning large surpluses for the next fiscal year.”

Flaherty said his budget’s tax free savings account would be a broader measure that would help Canadians shelter some 90% of savings over time.

But McCallum said Flaherty could have set aside money two years ago to pay for the measure.

McTeague said the bill was supported unanimously by the Liberal caucus, the NDP, the Bloc Quebecois and even some Conservatives on second reading.

“This was a very popular measure,” said McTeague.