Conservatives aim to use Senate to scuttle RESP bill
Last Updated: Friday, March 7, 2008 | 4:01 PM ET
CBC News
Related
Internal Links
Video
- Susan Bonner reports for CBC-TV (Runs: 2:33)
- Play: QuickTime »
- Play: Real Media »
The Conservative government wants the Senate to help it defeat a private member's bill that would make contributions to registered education savings plans tax deductible.
The bill, which was first put forward by Liberal MP Dan McTeague two years ago, passed the House of Commons on Wednesday night with a narrow margin of 34 votes.
Because the bill doesn't call on the government to spend money, it was ruled appropriate for private member's bill, but Conservatives say its fiscal implications are steep enough that it should be blocked.
If passed by the Senate, the government predicts the changes would reduce federal revenues by $900 million and provincial governments will lose $450 million.
The bill would allow parents to make $5,000 in annual tax-deductible contributions to RESPs. Currently, RESPs can grow tax-free but contributions to them are not tax deductible.
Opposing the bill could put the Conservatives in a difficult position, as they could be seen as fighting a popular tax break and relying on the Liberal-dominated Senate to scrap the bill.
"I'll be talking to the senators," said Ted Menzies, the parliamentary secretary to the minister of finance.
"There's a lot of reasonable-minded senators that I think will look at this realistically and view this as very troubling. It's not spending, but it is reduced revenue to the government."
McTeague disputed the figures on potential lost revenues, and said there was a broader issue than just dollars and cents.
"Not doing this will have enormous consequences on students who are not able to get the kinds of jobs of the future with the training of the future," McTeague told CBC News.
Share Tools
Top News Headlines
- Raitt closer to ending CP Rail strike
- Labour Minister Lisa Raitt is prepared to end the Canadian Pacific Rail strike if necessary, after both CP Rail and the union rejected a proposal for voluntary arbitration by the government-appointed negotiator on Sunday. Raitt tells CBC News she is "extremely disappointed." more »
- Syrian regime denies role in Houla massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria, B.C., native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 10.4 |
| DOW | 12454.83 | -74.92 |
| NASDAQ | 2837.53 | -1.85 |
| SP 500 | 1317.82 | -2.86 |
| NYSE COMPOSITE | 7534.32 | -18.01 |
| AMEX | 2227.37 | 1.45 |
| TSX-VENTURE | 1309.27 | 26.8 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Teen struck by lightning in Ottawa dies
- Missing Winnipeg children found in Mexico
- Syrian regime denies role in Houla massacre
- Quebec tornadoes cause millions in damage
- Montreal protesters march in peaceful defiance
- Remains found in bag on Cape Breton river ID'd
- Woman's remains found in hockey bag on Cape Breton river
- Everest team unable to bring down Toronto woman's body
- Neighbour may have helped find missing kids in Mexico

