Government threatening election if not repealed
Mar 11, 2008 - 03:36 PM
By Keith Gilligan
DURHAM -- If Dan McTeague and his fellow Liberals want to save his private member's bill on RESPs, they'll have to fight an election over it.
The Conservative government is threatening to force an election over the issue, saying implementing the measure would be too costly and could push the budget into a deficit.
"It imperils the fiscal plan of the government," said Finance Minister and Whitby MP Jim Flaherty. "It runs the risk of putting the balanced budget of our government into a Liberal deficit. We are not going to run a deficit, so we're going to kill the bill."
Mr. McTeague, the Liberal MP for Pickering-Scarborough East, put forward a private member's bill in May of 2006 that would make registered education savings plans dollar-for-dollar tax deductible, the same as RRSPs.
The bill passed last week when the three opposition parties joined together to get it through the house.
"It had strong support, not from the government. They opposed it every step of the way," Mr. McTeague said in an interview.
The bill would allow up to $5,000 a year in contributions, to a maximum of $50,000.
The government argues the measure would be too expensive, costing at least $900 million in tax revenue.
"The figures could well be higher and we're not taking that risk," Mr. Flaherty said.
While initial reports of the program have proven popular with parents, Mr. Flaherty stated it's not "within our fiscal framework."
Mr. McTeague said the measure would cost "$650 million. That's the Department of Finance estimate. The amount could be greater, depending on how many take this up."
He defended the cost, saying the money would be made up "in the long term with higher-paying jobs. It's an investment today for kids tomorrow."
The aim of the bill is "to make sure every student has access to higher education," Mr. McTeague said. "This is the perfect vehicle."
The cost of a four-year education in 2020 could total $100,000, he said.
"I don't see too many families who can afford that amount of money," Mr. McTeague stated. "It's an investment in our nation."
-- files from TorStar News
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